Sweet 16 Upgrades - Sept 28

[dan_s]

From MKM Partners Research 9-28-2020

"The E&P sector reflects NYMEX ~$46 oil and ~$2.65 gas. Our NYMEX 2020/2021 oil price is ~
$39/$47.50 and 2022+ equilibrium outlook is $55. Our NYMEX 2020 natural gas price is ~$2,
2021 price is $3 and 2022+ equilibrium outlook is $2.80. Our commodity price deck implies a
sector median intrinsic upside of ~66%. Oil-oriented E&Ps (>50% oil) have ~73% upside, gas-
oriented E&Ps (<20% oil) have ~37% upside and combo-composition E&Ps (20%-50% oil) have
~78% upside. Our equilibrium composite Mont Belvieu NGL price is ~40% of NYMEX oil.
The companies with a superior combination of full-cycle returns, equity value upside, and financial
leverage include EOG, Chevron, Concho, Diamondback, Cabot, PDC, Pioneer, and Devon."

From Stifel Equity Research 9-28-2020

Matador Resources Company (MTDR, $8.08, Buy; Target $16.00) - Investor Meetings Summary - Michael S. Scialla
We hosted virtual meetings with MTDR management and investors last week. Conversations focused on federal acreage exposure, the balance sheet, a pivot to a FCF model, and the company's midstream assets.