Matador Resources (MTDR)

[dan_s]

I have updated the Matador forecast, which will be posted to the EPG website later today.

My valuation has gone up to $29.60, compared to First Call's price target of $29.07.

Matador's Q3 results beat my forecast. Their recent sale of some midstream assets to EnLink shores up the balance sheet and reduces interest expense. They have more than enough cash flow from operations and liquidity to fund their three rig drilling program. They are getting solid results in the Permian Basin.

Cash receipts on the hedges over the first nine month have been $52.1 million and they will get another $18-$20 cash in Q4 on their hedges. Cash flows from operations are running about $50 million per quarter, even at today's crappy oil prices.