MTDR

[marc.wolin@yahoo.com]

MTDR

This is a respectable size company. Would you say this is an acquirer or a seller, or either? It looks like it has various operations to sustain it. What does management say?
Thanks,
Marc Wolin

[dan_s]

Matador Resources (MTDR) is in our Sweet 16. I have followed it for over ten years.

It is an Aggressive Growth company with production of ~145,000 Boepd, ~60% oil.

Matador closed a significant acquisition (Advanced Energy) on April 13, 2023 that added ~25,000 Boepd (74% oil) and a lot of "Running Room". So, it does not need to make another acquisition.

Matador is now generating a lot of operating cash flow; $1.8 billion in 2023 and $2.3 billion in 2024 based on my forecast. That is more than enough to fund their growth strategy and generate a large amount of free cash flow. Their aggressive drilling program in 2023 was paid for my a $1.335 billion D&C budget.

I doubt that the management team wants or needs to sell the company, BUT if a larger company makes an attractive offer the company's BOD will need to consider it. A stock-for-stock offer from Diamondback Energy (FANG) might be considered.

Read our updated profile (under the Sweet 16 tab) and take the time to study my forecast model.

[marc.wolin@yahoo.com]

MTDr

Thanks,

Marc Wolin