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Here's Why Matador (MTDR) is an Attractive Investment Bet
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Matador Resources Company (MTDR - Free Report) is a leading upstream player, having a strong foothold in prolific oil and natural gas shale and other unconventional plays. The company is likely to see earnings growth of 16.5% and 18.6% in 2024 and 2025, respectively.
What’s Favoring the Stock?
The price of West Texas Intermediate crude has touched the $80-per-barrel mark, which is highly favorable for exploration and production activities. Handsome crude price is likely to aid MTDR, sporting a Zacks Rank #1 (Strong Buy), in increasing production volumes.
Recently, the upstream energy major has entered into a $1.91 billion agreement to expand its footprint in the prolific Delaware Basin. With the deal expected to close in the late third quarter of 2024, Matador Resources is projected to have more than 190,000 net acres in the Delaware Basin on a pro forma basis. Consequently, the company estimates that its production will exceed 180,000 barrels of oil equivalent per day, positioning it for significant growth and enhanced operational scale.
Overall, handsome commodity prices and expectations for higher production will likely aid Matador Resources’ bottom line.
Risks
However, being an upstream energy player, the company’s overall operations are exposed to extreme volatility in oil and natural gas prices. This is reflected in the company’s beta of 3.30.
Vitesse Energy has non-operated working and mineral interests in oil and gas assets, mainly across the prolific Bakken in North Dakota. Having interests in 6,932 productive wells, Vitesse Energy has secured a solid production outlook, assuming that the crude pricing scenario will remain extremely favorable.
The business scenario for ProPetro Holding is bright, given the current favorable oilfield service demand. Thus, it secures handsome cashflows as it is a leading provider of pressure pumping and other complementary services. For 2024 and 2025, ProPetro Holding has witnessed upward earnings estimate revisions over the past 30 days.
Vista Energy, a leading exploration and production company, has a significant presence in Vaca Muerta, a highly productive shale oil and gas play outside of North America. The company has set an ambitious goal of achieving net-zero emissions by 2026.
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Here's Why Matador (MTDR) is an Attractive Investment Bet
Matador Resources Company (MTDR - Free Report) is a leading upstream player, having a strong foothold in prolific oil and natural gas shale and other unconventional plays. The company is likely to see earnings growth of 16.5% and 18.6% in 2024 and 2025, respectively.
What’s Favoring the Stock?
The price of West Texas Intermediate crude has touched the $80-per-barrel mark, which is highly favorable for exploration and production activities. Handsome crude price is likely to aid MTDR, sporting a Zacks Rank #1 (Strong Buy), in increasing production volumes.
Recently, the upstream energy major has entered into a $1.91 billion agreement to expand its footprint in the prolific Delaware Basin. With the deal expected to close in the late third quarter of 2024, Matador Resources is projected to have more than 190,000 net acres in the Delaware Basin on a pro forma basis. Consequently, the company estimates that its production will exceed 180,000 barrels of oil equivalent per day, positioning it for significant growth and enhanced operational scale.
Overall, handsome commodity prices and expectations for higher production will likely aid Matador Resources’ bottom line.
Risks
However, being an upstream energy player, the company’s overall operations are exposed to extreme volatility in oil and natural gas prices. This is reflected in the company’s beta of 3.30.
Other Stocks to Consider
Some other top-ranked energy companies include Vitesse Energy Inc (VTS - Free Report) , ProPetro Holding Corp. (PUMP - Free Report) and Vista Energy SAB de CV (VIST - Free Report) . While Vitesse Energy sports a Zacks Rank #1, ProPetro Holding and Vista Energy carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Vitesse Energy has non-operated working and mineral interests in oil and gas assets, mainly across the prolific Bakken in North Dakota. Having interests in 6,932 productive wells, Vitesse Energy has secured a solid production outlook, assuming that the crude pricing scenario will remain extremely favorable.
The business scenario for ProPetro Holding is bright, given the current favorable oilfield service demand. Thus, it secures handsome cashflows as it is a leading provider of pressure pumping and other complementary services. For 2024 and 2025, ProPetro Holding has witnessed upward earnings estimate revisions over the past 30 days.
Vista Energy, a leading exploration and production company, has a significant presence in Vaca Muerta, a highly productive shale oil and gas play outside of North America. The company has set an ambitious goal of achieving net-zero emissions by 2026.