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Investing.com - Benchmark has reiterated its Buy rating and $62.00 price target on Matador Resources Company (NYSE:MTDR) following the company’s quarterly earnings report. According to InvestingPro data, the stock appears undervalued, with analysts setting targets as high as $89. The company maintains a "GREAT" financial health score of 3.11 out of 4.
Matador reported adjusted EBITDA of $594 million, exceeding consensus estimates of $581 million and Benchmark’s projection of $572 million. The company’s volumes beat expectations by 3.5%, primarily driven by gas production, while EBITDA margins reached 70% compared to Benchmark’s 68% forecast. The company’s trailing twelve-month EBITDA stands at $2.56 billion, with impressive revenue growth of 21.7%. For deeper insights into Matador’s financial metrics and 7 additional ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.
Upstream capital expenditure totaled $345 million, below Benchmark’s estimate of $367 million. The company’s midstream EBITDA came in at $85.5 million, surpassing Benchmark’s projection of $76 million.
Matador’s guidance for the third quarter indicates sequential declines in both oil and gas volumes, despite upstream capital expenditure and well completions expected to remain in line with the first quarter. Benchmark noted that timing might be the primary factor, as two-thirds of wells will be completed in the second half of the quarter.
The company plans to drop its ninth drilling rig in the third quarter as previously announced, while upstream borrowings decreased by $15 million sequentially and midstream borrowings increased by $123 million.
In other recent news, Matador Resources reported its second-quarter earnings, revealing a mixed performance. The company achieved adjusted earnings of $1.53 per share, surpassing analyst expectations of $1.44. However, revenue figures were less favorable, with the company reporting $815.77 million, falling short of the anticipated $908.61 million. Despite record production levels, the revenue miss was a significant focus for investors. Analyst reactions to these results have not been explicitly mentioned, but the revenue shortfall is likely a key consideration for future assessments. These developments highlight the company’s recent financial performance and investor reactions.
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