Matador expects to produce over 200,000 BOEPD in 2025. This is driven by solid operational performance plus its Ameredev acquisition. MTDR is projected to generate over $7 per share in 2025 free cash flow at the current strip.
Matador Resources Company (NYSE:MTDR ) Q3 2024 Earnings Conference Call October 23, 2024 11:00 AM ET Company Participants Mac Schmitz - VP, IR Joseph Foran - Chairman, CEO and Secretary Brian Willey - CFO, EVP and President, Midstream Operations Robert Macalik - EVP and CAO Christopher Calvert - COO and EVP Glenn Stetson - EVP, Production Edmund Frost - EVP, Geosciences Van Singleton - President-Land, A&D and Planning Conference Call Participants Neal Dingmann - Truist Scott Hanold - RBC Capital Markets Zach Parham - JPMorgan John Freeman - Raymond James Kevin MacCurdy - Pickering Energy Partners Gabe Daoud - TD Cowen Leo Mariani - ROTH Michael Scialla - Stephens Oliver Huang - Tudor Pickering Holt & Company Operator Good morning, ladies and gentlemen. Welcome to the Third Quarter 2024 Matador Resources Company Earnings Conference Call.
High total production volume and decreased operating expenses aid MTDR's earnings in Q3.
Matador Resources (MTDR) came out with quarterly earnings of $1.89 per share, beating the Zacks Consensus Estimate of $1.73 per share. This compares to earnings of $1.86 per share a year ago.
Matador (MTDR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
MTDR closes its $1.83 billion acquisition of Ameredev assets, strengthening its Delaware Basin operations with increased production and operational efficiency for long-term growth.
Matador Resources' acquisition of Ameredev II for $1.832 billion will significantly boost its enterprise value by nearly $2 billion, enhancing its Delaware Basin portfolio. The deal is strategically advantageous, as MTDR acquired Ameredev II at a bargain price compared to EnCap's 2022 valuation of $4 billion. MTDR's forward P/E ratio of 7.14X indicates the stock is undervalued, presenting a substantial upside potential into 2025.
Handsome oil prices aid Matador's (MTDR) upstream operations. However, the company is exposed to volatility in commodity prices.
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The mean of analysts' price targets for Matador (MTDR) points to a 30.5% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.