Matador Resources (MTDR) Update - July 20

[dan_s]

So far in July, three Wall Street firms have updated their valuation/price targets for MTDR. Their valuations range from $37 to $42. MTDR is trading at just over $32 today.

I have updated my forecast/valuation model for MTDR and I've lowered my valuation by $6 to $41/share. They do have more exposure to the Midland oil price differential than the larger companies. However, they also have another core area in the Eagle Ford, which should cause oil prices to average out to about a $5/bbl discount to WTI.

Matador is a smaller company, so I've decided to be more conservative on my oil price assumptions for this one.