Matador Resources (MTDR)

[dan_s]

Operational Update

As noted in its December 8, 2014 press release, Matador achieved strong growth in both oil and natural gas production during the fourth quarter of 2014. As anticipated, the Company’s oil, natural gas and total oil equivalent production were all at record quarterly levels in the fourth quarter of 2014. Matador will release its full-year 2014 oil and natural gas production and year-end 2014 oil and natural gas reserves at its February 5 Analyst Day, all of which will be the best results reported in the Company’s history and in-line with the expectations that Matador outlined on December 8.

At January 6, 2015, Matador is operating five drilling rigs – two in the Eagle Ford shale in South Texas and three in the Permian Basin in Southeast New Mexico and West Texas – but currently intends to scale back its drilling program over the next few months to three rigs focused in the Permian Basin. The reasons that Matador has decided to reduce its Eagle Ford drilling program significantly in 2015 are due to lower oil and natural gas prices and the fact that almost all of the Company’s acreage in the Eagle Ford shale is now held by production. As a result of the Company’s strong execution in the Eagle Ford over the past three years, this asset has become an “oil bank” that Matador can return to and develop further at a future time when commodity prices are more favorable. The Company currently plans a total 2015 capital spending program in the range of $325 to $375 million, as it seeks to maintain its spending and balance sheet discipline in the current commodity price environment.

http://finance.yahoo.com/news/matador-r ... 00647.html

[dan_s]

Matador Resources (MTDR): The company provided an operational update and their capital budget for 2015. An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

I have lowered my Fair Value Estimate by $2.15/share to $26.25, compared to First Call's Price Target of $27.54.

Matador will report a big increase in production from Q3 to Q4. I am expecting production to continue to ramp up in Q1 then growth will slow as they pull back to a three rig drilling program in 2015.

What I liked most about today's press release is that all their good Eagle Ford acreage is now HBP, so they have a lot of flexibility in their drilling program. Focus this year will be on the Permian Basin.