Matador Resources (MTDR) Valuation Update - Oct 25

[dan_s]

Matador's Q3 results were very good, beating my forecast for the best reason: Higher production and increased production guidance.

My valuation increases by $1.50 to $85.00 per share.

Three respected analysts have submitted updated price targets to TipRanks since Q3 results came out:
> $77.00 by TD Cowen
> $87.00 by Siebert Williams Shank
> $71.00 by Benchmark

At the time of this post MTDR was trading at $61.41

It takes time for investors to figure this stuff out. Lots of "noise" (ie. what's Israel going to do next???) and wild swings in the oil price pushing many investors to the sidelines. Decide for yourself where you think oil & gas prices are heading. The global oil market is very tight and still under-supplied.

[Fraser921]

I added on the dip. Does this every time after earnings.

[dan_s]

From RBC Capital

Rating for MTDR: Outperform
Price Target: $70.00
Our view: Investor caution persisted despite the company exceeding expectations
and improving its outlook. The uncertainty stems from recent wells on its new
acreage and midstream spending levels in 2024. Management remains confident
in the initial well performance and its ability to independently fund or partner with
midstream initiatives. Next year's production guidepost of 150+ Mboe/d should be
comfortably met with an eighth rig returning in 1Q24, which should also smooth
out the production cadence.