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Will Matador's (MTDR) Upstream Business Hurt Q2 Earnings?
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Matador Resources Company (MTDR - Free Report) is set to release second-quarter 2023 results on Jul 25, after the closing bell. Since MTDR is a leading upstream player, having a strong foothold on prolific oil and natural gas shale and other unconventional plays, a considerable decline in realized oil price is likely to have hurt the quarterly performance.
Upstream Business
Being engaged in oil and gas exploration and production activities, the fate of Matador Resources’ overall business primarily depends on the oil and gas pricing scenario. Majority of the company’s production comprises oil, making this commodity price the prime factor in determining MTDR’s earnings.
Q2 Oil Price & Production
The pricing scenario of West Texas Intermediate (WTI) crude was considerably lower in the second quarter of this year than in the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for this year’s April, May and June were $79.45 per barrel, $71.58 per barrel and $70.25 per barrel, respectively. The commodity prices were way lower than last year’s prices of $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. Worries over a recession and economic slowdown possibly hurt oil price in the June quarter.
We expect the realized oil price, without realized derivatives, at $72.35 per barrel, suggesting a decline of 34.9% year over year. However, increasing production volumes, thanks to a strong position in the prolific Delaware basin, is likely to have partially offset the negative. Our estimate for net production volumes for the second quarter is pegged at 6,889.8 thousand barrels, suggesting a year-over-year increase of 17.7%.
Earnings & Revenue Projections
The unfavorable upstream business is likely to have hurt MTDR’s earnings in the June quarter of 2023. The Zacks Consensus Estimate for its second-quarter earnings of $1.43 per share suggests a significant decline year over year. The same for sales of $650.2 million indicates a 31.1% decrease.
Other energy players with significant upstream exposure that are gearing up to release quarterly results are ConocoPhillips (COP - Free Report) , BP plc (BP - Free Report) and EOG Resources (EOG - Free Report) .
ConocoPhillips is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.20 per share, suggesting a year-over-year decline.
BP has an Earnings ESP of 0.00% and a Zacks Rank of 5.
BP is scheduled to report second-quarter results on Aug 1. The Zacks Consensus Estimate for its earnings is pegged at $1.17 per share, suggesting a year-over-year deterioration.
EOG Resources has an Earnings ESP of -8.47% and a Zacks Rank #3.
EOG Resources is scheduled to release second-quarter earnings on Aug 3. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.46 per share, suggesting a year-over-year decrease.
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Will Matador's (MTDR) Upstream Business Hurt Q2 Earnings?
Matador Resources Company (MTDR - Free Report) is set to release second-quarter 2023 results on Jul 25, after the closing bell. Since MTDR is a leading upstream player, having a strong foothold on prolific oil and natural gas shale and other unconventional plays, a considerable decline in realized oil price is likely to have hurt the quarterly performance.
Upstream Business
Being engaged in oil and gas exploration and production activities, the fate of Matador Resources’ overall business primarily depends on the oil and gas pricing scenario. Majority of the company’s production comprises oil, making this commodity price the prime factor in determining MTDR’s earnings.
Q2 Oil Price & Production
The pricing scenario of West Texas Intermediate (WTI) crude was considerably lower in the second quarter of this year than in the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for this year’s April, May and June were $79.45 per barrel, $71.58 per barrel and $70.25 per barrel, respectively. The commodity prices were way lower than last year’s prices of $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. Worries over a recession and economic slowdown possibly hurt oil price in the June quarter.
We expect the realized oil price, without realized derivatives, at $72.35 per barrel, suggesting a decline of 34.9% year over year. However, increasing production volumes, thanks to a strong position in the prolific Delaware basin, is likely to have partially offset the negative. Our estimate for net production volumes for the second quarter is pegged at 6,889.8 thousand barrels, suggesting a year-over-year increase of 17.7%.
Earnings & Revenue Projections
The unfavorable upstream business is likely to have hurt MTDR’s earnings in the June quarter of 2023. The Zacks Consensus Estimate for its second-quarter earnings of $1.43 per share suggests a significant decline year over year. The same for sales of $650.2 million indicates a 31.1% decrease.
Matador Resources Company Price and EPS Surprise
Matador Resources Company price-eps-surprise | Matador Resources Company Quote
Upcoming Releases of Other Energy Players
Other energy players with significant upstream exposure that are gearing up to release quarterly results are ConocoPhillips (COP - Free Report) , BP plc (BP - Free Report) and EOG Resources (EOG - Free Report) .
ConocoPhillips has an Earnings ESP of -11.72% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips is scheduled to release second-quarter results on Aug 3. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.20 per share, suggesting a year-over-year decline.
BP has an Earnings ESP of 0.00% and a Zacks Rank of 5.
BP is scheduled to report second-quarter results on Aug 1. The Zacks Consensus Estimate for its earnings is pegged at $1.17 per share, suggesting a year-over-year deterioration.
EOG Resources has an Earnings ESP of -8.47% and a Zacks Rank #3.
EOG Resources is scheduled to release second-quarter earnings on Aug 3. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.46 per share, suggesting a year-over-year decrease.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.