MTDR Update - Dec 11

[dan_s]

Matador Resources (NYSE:MTDR) was downgraded by analysts at Wells Fargo & Co from an "outperform" rating to a "market perform" rating.

17 Wall Street firms have issued 12 month price targets for Matador Resources' shares. Their predictions range from $21.00 to $45.00. On average, they anticipate Matador Resources' stock price to reach $35.75 in the next year.

My valuation of MTDR is $44/share. Wells Fargo's downgrade may be based on the fact that Matador is more exposed to the Permian Basin pipeline takeaway capacity issue than most of the upstream companies that they cover. IMO this is a short-term problem that might justify a few dollars lower on the valuation. However, Matador has recently shifted more D&C capital to the Eagle Ford where oil sells at a premium to WTI.