Matador Resources (MTDR) Update - June 16

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dan_s
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Joined: Fri Apr 23, 2010 8:22 am

Matador Resources (MTDR) Update - June 16

Post by dan_s »

I have updated my forecast/valuation model for MTDR and I have posted it to the EPG website. MTDR is in our Small-Cap Growth Portfolio.

Since mid-May five analysts have updated their price targets for MTDR. The new price targets range from $34 to $43 with an average of $38.60.

I am increasing my valuation of MTDR by $10 to $41 per share. It is trading this morning at $33.94.

My increased valuation is primarily driven by higher commodity prices, but also because I have raised the multiple of operating cash flow used to value the stock from 4X to 5X. If commodity prices continue to rise, a multiple of 6X to 8X operating CFPS is more appropriate for a company of this quality. It is now generating a lot of free cash flow from operations.
Dan Steffens
Energy Prospectus Group
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