Matador Resources Company (NYSE: MTDR) plans to release third quarter 2022 operational and financial results after the close of trading on Tuesday, October 25, 2022. Management will also host a live conference call on Wednesday, October 26, 2022 at 9:00 a.m. Central Time to review third quarter 2022 financial results and operational highlights.
To access the live conference call by phone, you can use the following link https://register.vevent.com/register/BI ... 9b056b55c3 and you will be provided with dial in details. To avoid delays, it is recommended that participants dial into the conference call fifteen minutes ahead of the scheduled start time.
The live conference call will also be available through the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab. The replay for the event will be available on the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab for one year.
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MTDR has been promoted to the "Elite Eight", replacing CLR.
Per my Q3 forecast:
> Adjusted Net Income s/b ~$310 million
> Adjusted Operating Cash Flow s/b ~$509 million ($4.32/share)
> Production s/b ~102,000 Boepd (~58% crude oil)
Matador Resources (MTDR) Q3 Results - Oct 25
Matador Resources (MTDR) Q3 Results - Oct 25
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Matador Resources (MTDR) Q3 Results - Oct 25
Link for MTDR Presentation Slides: https://www.matadorresources.com/static ... 456d95db2c
Re: Matador Resources (MTDR) Q3 Results - Oct 25
"During the third quarter of 2022, Matador achieved better than expected average oil and natural gas equivalent production of over 105,000 barrels of oil and natural gas equivalent ("BOE") per day (see Slide E), which was 4% better than our expectations of approximately 101,000 BOE per day. In addition, Matador’s production has increased by nearly 50% from 73,000 BOE per day in the third quarter of 2020 to over 105,000 BOE per day in the third quarter of 2022."
Actual Q3 production was 105,214 Boepd (60,163 bopd), beating my forecast of 102,000 (59,000 bopd)
Third Quarter 2022 Financial and Operational Highlights
Net Cash Provided by Operating Activities and Adjusted Free Cash Flow
Third quarter 2022 net cash provided by operating activities was $557.0 million (GAAP basis), leading to third quarter 2022 adjusted free cash flow (a non-GAAP financial measure) of $269.1 million.
Net Income, Earnings Per Share and Adjusted EBITDA
Third quarter 2022 net income (GAAP basis) was $337.6 million, or $2.82 per diluted common share, a 19% sequential decrease from net income of $415.7 million in the second quarter of 2022, but a 66% year-over-year increase from net income of $203.6 million in the third quarter of 2021. The sequential decrease in net income was primarily attributable to the sequential decline in commodity prices in the third quarter of 2022. Matador’s realized oil price was $94.36 per barrel in the third quarter of 2022, a 15% sequential decrease as compared to $111.06 per barrel realized in the second quarter of 2022.
Third quarter 2022 adjusted net income (a non-GAAP financial measure) was $321.7 million, or adjusted earnings of $2.68 per diluted common share, a 23% sequential decrease from adjusted net income of $415.6 million in the second quarter of 2022, but a 116% year-over-year increase from adjusted net income of $148.6 million in the third quarter of 2021. < Adjusted net income compares to my forecast of $309.857 million ($2.63 per share).
Third quarter 2022 adjusted earnings before interest expense, income taxes, depletion, depreciation and amortization and certain other items ("Adjusted EBITDA," a non-GAAP financial measure) were $539.7 million, a 19% sequential decrease from $663.8 million in the second quarter of 2022, but an 84% year-over-year increase from $293.8 million in the third quarter of 2021.
Oil, Natural Gas and Total Production Above Expectations
As summarized in the table below, Matador’s third quarter 2022 average daily oil, natural gas and total production were all above the Company’s expectations. The primary driver behind this outperformance was better-than-expected production from the 15 most recent Stateline and nine most recent Rodney Robinson wells turned to sales this year and increased working interests from several trades completed earlier than anticipated during the third quarter. In addition, several anticipated incremental shut-ins in the Stateline asset area due to offset operator completions were deferred from the third quarter to the fourth quarter of 2022.
Q3 capital expenditures were $241.8 million, compares to guidance of $260 million.
I will need to spend some time looking at the Company's 10Q to update my valuation, but based on the comments above, my valuation will be over $82/share.
Actual Q3 production was 105,214 Boepd (60,163 bopd), beating my forecast of 102,000 (59,000 bopd)
Third Quarter 2022 Financial and Operational Highlights
Net Cash Provided by Operating Activities and Adjusted Free Cash Flow
Third quarter 2022 net cash provided by operating activities was $557.0 million (GAAP basis), leading to third quarter 2022 adjusted free cash flow (a non-GAAP financial measure) of $269.1 million.
Net Income, Earnings Per Share and Adjusted EBITDA
Third quarter 2022 net income (GAAP basis) was $337.6 million, or $2.82 per diluted common share, a 19% sequential decrease from net income of $415.7 million in the second quarter of 2022, but a 66% year-over-year increase from net income of $203.6 million in the third quarter of 2021. The sequential decrease in net income was primarily attributable to the sequential decline in commodity prices in the third quarter of 2022. Matador’s realized oil price was $94.36 per barrel in the third quarter of 2022, a 15% sequential decrease as compared to $111.06 per barrel realized in the second quarter of 2022.
Third quarter 2022 adjusted net income (a non-GAAP financial measure) was $321.7 million, or adjusted earnings of $2.68 per diluted common share, a 23% sequential decrease from adjusted net income of $415.6 million in the second quarter of 2022, but a 116% year-over-year increase from adjusted net income of $148.6 million in the third quarter of 2021. < Adjusted net income compares to my forecast of $309.857 million ($2.63 per share).
Third quarter 2022 adjusted earnings before interest expense, income taxes, depletion, depreciation and amortization and certain other items ("Adjusted EBITDA," a non-GAAP financial measure) were $539.7 million, a 19% sequential decrease from $663.8 million in the second quarter of 2022, but an 84% year-over-year increase from $293.8 million in the third quarter of 2021.
Oil, Natural Gas and Total Production Above Expectations
As summarized in the table below, Matador’s third quarter 2022 average daily oil, natural gas and total production were all above the Company’s expectations. The primary driver behind this outperformance was better-than-expected production from the 15 most recent Stateline and nine most recent Rodney Robinson wells turned to sales this year and increased working interests from several trades completed earlier than anticipated during the third quarter. In addition, several anticipated incremental shut-ins in the Stateline asset area due to offset operator completions were deferred from the third quarter to the fourth quarter of 2022.
Q3 capital expenditures were $241.8 million, compares to guidance of $260 million.
I will need to spend some time looking at the Company's 10Q to update my valuation, but based on the comments above, my valuation will be over $82/share.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group