Matador Resources (MTDR) Update - Jan 12
Posted: Tue Jan 12, 2021 3:05 pm
Note from Neal Dingmann at Truist Financial 1-12-2021:
Matador Resources Company (MTDR, $15.52, Buy) - Higher Oil & Gas Prices Throws Deleveraging Plan into Overdrive - While nearly all E&Ps are helped by the recent boost in commodity prices, we forecast Matador to have outsized financial outperformance as a result of higher prices coupled with its continued active operations. We estimate the company to generate an ~8% FCF yield this year and 12% next, which would increase by >30% if oil prices are just 10% higher than our current 2021/2022 WTI estimates of $47.60/$52.50 bbl, respectively.
Matador Resources Company (MTDR, $15.52, Buy) - Higher Oil & Gas Prices Throws Deleveraging Plan into Overdrive - While nearly all E&Ps are helped by the recent boost in commodity prices, we forecast Matador to have outsized financial outperformance as a result of higher prices coupled with its continued active operations. We estimate the company to generate an ~8% FCF yield this year and 12% next, which would increase by >30% if oil prices are just 10% higher than our current 2021/2022 WTI estimates of $47.60/$52.50 bbl, respectively.