Energy Prospectus

MTDR

This is a respectable size company. Would you say this is an acquirer or a seller, or either? It looks like it has various operations to sustain it. What does management say?
Thanks,
Marc Wolin

Matador Resources (MTDR) is in our Sweet 16. I have followed it for over ten years.

It is an Aggressive Growth company with production of ~145,000 Boepd, ~60% oil.

Matador closed a significant acquisition (Advanced Energy) on April 13, 2023 that added ~25,000 Boepd (74% oil) and a lot of "Running Room". So, it does not need to make another acquisition.

Matador is now generating a lot of operating cash flow; $1.8 billion in 2023 and $2.3 billion in 2024 based on my forecast. That is more than enough to fund their growth strategy and generate a large amount of free cash flow. Their aggressive drilling program in 2023 was paid for my a $1.335 billion D&C budget.

I doubt that the management team wants or needs to sell the company, BUT if a larger company makes an attractive offer the company's BOD will need to consider it. A stock-for-stock offer from Diamondback Energy (FANG) might be considered.

Read our updated profile (under the Sweet 16 tab) and take the time to study my forecast model.

MTDr

Thanks,

Marc Wolin