Matador Resources Co: Analyst Raises Price Target on Strong Q1 2024 Earnings

Mizuho's Nitin Kumar raised their price target on Matador Resources Co (NYSE: MTDR) by 2.6% from $76 to $78 on April 24, 2024. The analyst maintained their Strong Buy rating on the stock.

This upgrade came after Matador Resources Co reported their Q1 2024 earnings, which exceeded expectations. Kumar noted that the company's management "cleared the bar" for guidance, with Q2 oil volumes 1% above consensus.

In Q1 2024, Matador Resources Co reported earnings per share (EPS) of $1.71, beating the Zacks Consensus Estimate of $1.48. This figure also represented a 14% increase compared to Q1 2023's EPS of $1.50. Additionally, the company reported revenue of $788 million, surpassing the Zacks Consensus Estimate of $726 million by 40.7%. This revenue figure also marked a significant increase of 40% from Q1 2023's $560 million.

Matador Resources Co also saw growth in average daily oil equivalent production, with 149,760 BOE compared to Q1 2023's 106,654 BOE, representing a 40% increase. Lease operating expenses were reported at $5.60 BOE.

Looking ahead, the company's management provided guidance for FY 2024, expecting average daily oil equivalent production to be at the high end of 153,000 to 159,000 BOE/d, which represents an approximate 20% year-over-year increase. Lease operating expenses are projected to be in the range of $5.25 to $5.75 per BOE.

Founder, Chairman & CEO Joseph Foran expressed his satisfaction with the company's performance, stating, "Matador is pleased to report another quarter that exceeded our original expectations." He attributed the success to a long-term approach in managing the business, resulting in outperformance compared to the S&P 500, peer group, and the price of crude oil over the past three years.

Matador Resources Co currently holds a Strong Buy or Buy rating from 100% of top-rated analysts, with no analysts recommending a Hold or selling the stock. The consensus forecast among analysts suggests that MTDR's upcoming year will deliver an EPS of $6.44. If this prediction holds true, it would represent a 9.2% decline on a year-over-year basis.

When examining the stock's performance, MTDR has shown a 28.5% increase year-over-year, surpassing the 22.6% growth of the S&P 500 during the same period.

Mizuho analyst Nitin Kumar, who raised the price target on MTDR, is ranked in the top 1% of Wall Street analysts by WallStreetZen. With an average return of 15.3% and a win rate of 64.7%, Kumar specializes in the Real Estate and Energy sectors.

Matador Resources Company, formerly known as Matador Holdco, Inc., is a U.S.-based company that produces oil and natural gas. The company offers natural gas processing, oil transportation services, water gathering services, and produced water disposal services to third parties. Matador Resources holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The company was founded in 2003 and is headquartered in Dallas, Texas.

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