Gain detailed insights into the trading activity of Congress members for Matador Resources on our government trades page. Stay updated on how elected officials are investing in MTDR.

Matador Resources - Government Trades

Matador Resources

Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company's assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business.

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n its weekly release, Baker Hughes Company (NASDAQ: BKR) stated that the U.S. rig count was lower than the prior week&#39;s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.

Total US Drilling Rig Tally Falls: Here&#39;s What it Means

Earnings

Matador Resources (NYSE: MTDR) closed the last trading session at $61.65, gaining 8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $79.58 indicates a 29.1% upside potential.

Wall Street Analysts See a 29.08% Upside in Matador: Can the Stock Really Move This High?

In its weekly release, Baker Hughes Company (NASDAQ: BKR) stated that the U.S. rig count was lower than the prior week&#39;s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.

Upgrades

Investors might want to bet on Matador Resources (NYSE: MTDR), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

All You Need to Know About Matador Rating Upgrade to Strong Buy

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$176M Bet On Occidental Petroleum? Check Out These 3 Stocks Insiders Are Buying

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Matador Resources to acquire Ameredev II&#39;s oil and gas properties in NM and TX for $1.91B, including 19% stake in Piñon Midstream. Expected to close Q3 2024. 

Matador Resources&#39; $1.9B Deal Expands Oil And Gas Dominance In Texas And New Mexico: Details

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The Federal Reserve officials&#39; cautious stance on inflation has not only delayed potential interest rate cuts but also affected market confidence and cast a pall on the Zacks Oil and Gas - Exploration and Production - United States industry.

How Should You Play the U.S. Upstream Oil &amp; Gas Industry?

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Matador Resources Company (NYSE: MTDR) 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 in 2024 and 2025.

Here&#39;s Why Hold Strategy is Apt for Matador Stock Now

Permian Oil Rig Count Increases in 4 of Prior 6 Weeks

Matador Resources Co

Truist Securities analyst Neal Dingmann maintains Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) with a Buy and lowers the price target from $91 to $86.

Price Target

Truist Securities Maintains Buy on Matador Resources, Lowers Price Target to $86

Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) has outperformed the market over the past 5 years by 16.27% on an annualized basis producing an average annual return of 29.26%. Currently, Matador Resources has a market capitalization of $8.11 billion. 
Buying $1000 In MTDR: If an investor had bought $1000 of MTDR stock 5 years ago, it would be worth $3,709.64 today based on a price of $65.03 for MTDR at the time of writing.
<h3>Matador Resources's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721334617_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $1000 Invested In Matador Resources 5 Years Ago Would Be Worth Today

Wolfe Research analyst Doug Leggate reinstates Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) with a Peer Perform.

Initiation

Wolfe Research Reinstates Peer Perform on Matador Resources

Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) underwent analysis by 9 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">6</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the assessment of 12-month price targets, analysts unveil insights for Matador Resources, presenting an average target of $81.44, a high estimate of $91.00, and a low estimate of $62.00. This current average has increased by 2.44% from the previous average price target of $79.50. 
<img src="https://www.benzinga.com/files/images/story/2024/1721232077_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
The standing of Matador Resources among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Hanwen Chang</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$88.00</td>
<td>$85.00</td>
</tr>
<tr>
<td>Mike Scialla</td>
<td>Stephens &amp; Co.</td>
<td>Announces</td>
<td>Overweight</td>
<td>$83.00</td>
<td>-</td>
</tr>
<tr>
<td>William Janela</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$85.00</td>
<td>$83.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$91.00</td>
<td>$87.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$83.00</td>
<td>$78.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$87.00</td>
<td>$85.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$78.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>Subash Chandra</td>
<td>Benchmark</td>
<td>Lowers</td>
<td>Buy</td>
<td>$62.00</td>
<td>$71.00</td>
</tr>
<tr>
<td>Tim Rezvan</td>
<td>Keybanc</td>
<td>Raises</td>
<td>Overweight</td>
<td>$76.00</td>
<td>$71.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Matador Resources. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Matador Resources compared to the broader market.</li>
<li>Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Matador Resources's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Matador Resources's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/MTDR/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Matador Resources analyst ratings.</a>
<h2>Unveiling the Story Behind Matador Resources</h2>
Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company's assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business.
<h3>Breaking Down Matador Resources's Financial Performance</h3>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Matador Resources's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 39.33%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.
Net Margin: Matador Resources's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 24.67%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.65%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Matador Resources's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.43% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Matador Resources's debt-to-equity ratio is below the industry average. With a ratio of 0.45, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
<h2>Understanding the Relevance of Analyst Ratings</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Where Matador Resources Stands With Analysts

Wells Fargo analyst Hanwen Chang maintains Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) with a Overweight and raises the price target from $85 to $88.

Wells Fargo Maintains Overweight on Matador Resources, Raises Price Target to $88

n its weekly release,&nbsp;Baker Hughes Company&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bkr#NASDAQ">BKR</a>) stated that the U.S. rig count was lower than the prior week&#39;s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes&#39; data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company&#39;s oilfield services from exploration and production companies.
<h3>Rig Count Data in Detail</h3>
Total U.S. Rig Count Declines:&nbsp;The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 584 in the week ended Jul 12, lower than theweek-ago count of 585. The current national rig count also declined from the year-ago level of 675, reflecting the fact that there has been a slowdown in drilling activities. Some analysts see this downside as a sign of increased efficiency among shale producers, who may need fewer rigs. However, there are doubts among a few about whether certain producers have sufficient promising land for drilling.
Onshore rigs in the week that ended on Jul 12 totaled 561, lower than the prior week&#39;s count of 562. In offshore resources, 23 rigs were operating, in line with the week-ago count.
U.S. Oil Rig Count Falls:&nbsp;The oil rig count was 478 in the week ended Jul 12, lower than the week-ago figure of 479. The current number of oil rigs &mdash; far from the peak of 1,609 attained in October 2014 &mdash; was also down from the year-ago figure of 537.
U.S. Natural Gas Rig Count Declines:&nbsp;The natural gas rig count of 100 was lower than the week-ago figure of 101. The count of rigs exploring the commodity was also below the year-ago week&#39;s tally of 133. Per the latest report, the number of natural gas-directed rigs is almost 94% lower than the all-time high of 1,606 recorded in 2008.&nbsp;
Rig Count by Type:&nbsp;The number of vertical drilling rigs totaled 18 units, in line with the week-ago count. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 566 was below the prior-week level of 567.
<h3>Rig Count in the Most Prolific Basin</h3>
Permian &mdash; the most prolific basin in the United States &mdash; recorded a weekly oil and gas rig count of 305, which was in line with the week-ago figure. However, the number was below the prior-year level of 337.
<h3>Outlook</h3>
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, highly favorable for exploration and production operations. Although the commodity pricing scenario is handsome, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output.
Amid the backdrop, investors seeking medium to long-term gains may keep an eye on energy stocks like Diamondback Energy, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fang#NASDAQ">FANG</a>) and&nbsp;Matador Resources Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtdr#NYSE">MTDR</a>).
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company, carrying a Zacks Rank #3 (Hold), is likely to continue witnessing increased production volumes.
The pending Endeavor merger, expected to close in the fourth quarter of this year, will significantly increase its Permian footprint, which the company cited at a combined pro forma scale of approximately 838,000 net acres. With the merger, FANG will have more inventory of core drilling locations with a break-even oil price of less than $40 per barrel.
Matador Resources recently 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, the #2 Ranked company 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.
<a href="https://www.zacks.com/stock/news/2302358/total-us-drilling-rig-tally-falls-here-s-what-it-means?cid=CS-BENZ-FT-analyst_blog|industry_focus-2302358">To read this article on Zacks.com click here.</a>

Total US Drilling Rig Tally Falls: Here's What it Means

Matador Resources (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtdr#NYSE">MTDR</a>) closed the last trading session at $61.65, gaining 8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $79.58 indicates a 29.1% upside potential.
The mean estimate comprises 12 short-term price targets with a standard deviation of $7.22. While the lowest estimate of $62 indicates a 0.6% increase from the current price level, the most optimistic analyst expects the stock to surge 47.6% to reach $91. It&#39;s very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in MTDR. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn&#39;t give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
<img alt="Zacks Price, Consensus and EPS Surprise Chart for MTDR" class="chart" src="https://chart-service.zacks.com/images/daily/yesop_price_consensus_surprise/MTDR.png" style="height:auto; width:100%" title="" />
Here&#39;s What You Should Know About Analysts&#39; Price Targets
According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company&#39;s fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock&#39;s price movement. While that doesn&#39;t necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here&#39;s Why There Could be Plenty of Upside Left in MTDR
There has been increasing optimism among analysts lately about the company&#39;s earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 3% over the past month, as four estimates have gone higher while one has gone lower.
Moreover, MTDR currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than the 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock&#39;s potential upside in the near term.
Therefore, while the consensus price target may not be a reliable indicator of how much MTDR could gain, the direction of price movement it implies does appear to be a good guide.
<a href="https://www.zacks.com/stock/news/2300823/wall-street-analysts-see-a-29-08-upside-in-matador-mtdr-can-the-stock-really-move-this-high?cid=CS-BENZ-FT-tale_of_the_tape|consensus_price_target-2300823">To read this article on Zacks.com click here.</a>

Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) has outperformed the market over the past 5 years by 12.21% on an annualized basis producing an average annual return of 25.43%. Currently, Matador Resources has a market capitalization of $7.30 billion. 
Buying $100 In MTDR: If an investor had bought $100 of MTDR stock 5 years ago, it would be worth $307.03 today based on a price of $58.52 for MTDR at the time of writing.
<h3>Matador Resources's Performance Over Last 5 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1720193427_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $100 Invested In Matador Resources 5 Years Ago Would Be Worth Today

In its weekly release,&nbsp;Baker Hughes Company&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bkr#NASDAQ">BKR</a>) stated that the U.S. rig count was lower than the prior week&#39;s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes&#39; data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company&#39;s oilfield services from exploration and production companies.
<h3>Rig Count Data in Detail</h3>
Total U.S. Rig Count Falls:&nbsp;The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 581 in the week ended Jun 28, lower than the week-ago count of 588. The current national rig count also declined from the year-ago level of 674, reflecting the fact that there has been a slowdown in drilling activities. Some analysts see this downside as a sign of increased efficiency among shale producers, who may need fewer rigs. However, there are doubts among a few about whether certain producers have sufficient promising land for drilling.
Onshore rigs in the week that ended on Jun 28 totaled 560, lower than the prior week&#39;s count of 567. In offshore resources, 21 rigs were operating, which was flat with the week-ago count.
U.S. Oil Rig Count Declines:&nbsp;The oil rig count was 479 in the week ended Jun 28, lower than the week-ago figure of 485. The current number of oil rigs &mdash; far from the peak of 1,609 attained in October 2014 &mdash; was also down from the year-ago figure of 545.
U.S. Natural Gas Rig Count Falls:&nbsp;The natural gas rig count of 97 was lower than the week-ago figure of 98. The count of rigs exploring the commodity was also below the year-ago week&#39;s tally of 124. Per the latest report, the number of natural gas-directed rigs is almost 94% lower than the all-time high of 1,606 recorded in 2008.&nbsp;
Rig Count by Type:&nbsp;The number of vertical drilling rigs totaled 18 units, lower than the week-ago count of 19. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 563 was down from the prior-week level of 569.
<h3>Rig Count in the Most Prolific Basin</h3>
Permian &mdash; the most prolific basin in the United States &mdash; recorded a weekly oil and gas rig count of 305, which was lower than the week-ago figure of 308. The count is also below the prior-year level of 341.
<h3>Outlook</h3>
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, highly favorable for exploration and production operations. Although the commodity pricing scenario is handsome, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output.
Amid the backdrop, investors seeking medium to long-term gains may keep an eye on energy stocks like Diamondback Energy, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fang#NASDAQ">FANG</a>) and&nbsp;Matador Resources Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtdr#NYSE">MTDR</a>).
Diamondback Energy, a leading pure-play Permian operator, reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company expects to maintain growth in production volumes, benefiting from favorable commodity pricing conditions. FANG, carrying a Zacks Rank #3 (Hold), also has an investment-grade balance sheet.
Matador Resources recently 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, the #3 Ranked company 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.
<a href="https://www.zacks.com/stock/news/2295495/total-us-drilling-rig-tally-falls-here-s-what-it-means?cid=CS-BENZ-FT-analyst_blog|industry_focus-2295495">To read this article on Zacks.com click here.</a>

In its weekly release,&nbsp;Baker Hughes Company&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bkr#NASDAQ">BKR</a>) stated that the U.S. rig count was lower than the prior week&#39;s figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes&#39; data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company&#39;s oilfield services from exploration and production companies.
<h3>Rig Count Data in Detail</h3>
Total U.S. Rig Count Falls:&nbsp;The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 588 in the week ended Jun 21, lower than theweek-ago count of 590. The current national rig count also declined from the year-ago level of 682, reflecting the fact that there has been a slowdown in drilling activities. Some analysts see this downside as a sign of increased efficiency among shale producers, who may need fewer rigs. However, there are doubts among a few about whether certain producers have sufficient promising land for drilling.
Onshore rigs in the week that ended on Jun 21 totaled 567, lower than the prior week&#39;s count of 569. In offshore resources, 21 rigs were operating, in line with the week-ago count.
U.S. Oil Rig Count Declines:&nbsp;The oil rig count was 485 in the week ended Jun 21, lower than the week-ago figure of 488. The current number of oil rigs &mdash; far from the peak of 1,609 attained in October 2014 &mdash; was also down from the year-ago figure of 546.
U.S. Natural Gas Rig Count Flat:&nbsp;The natural gas rig count of 98 was in line with the week-ago figure. However, the count of rigs exploring the commodity was below the year-ago week&#39;s tally of 130. Per the latest report, the number of natural gas-directed rigs is almost 94% lower than the all-time high of 1,606 recorded in 2008.&nbsp;
Rig Count by Type:&nbsp;The number of vertical drilling rigs totaled 19 units, which was lower than the week-ago count of 20. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 569 was down from the prior-week level of 570.
<h3>Rig Count in the Most Prolific Basin</h3>
Permian &mdash; the most prolific basin in the United States &mdash; recorded a weekly oil and gas rig count of 308, lower than the week-ago figure of 309. The count also declined from the prior-year level of 341.
<h3>Outlook</h3>
The West Texas Intermediate crude price has already touched the $80-per-barrel mark, highly favorable for exploration and production operations. Although the commodity pricing scenario is handsome, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output.
Amid the backdrop, investors seeking medium to long-term gains may keep an eye on energy stocks like Diamondback Energy, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fang#NASDAQ">FANG</a>) and&nbsp;Matador Resources Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtdr#NYSE">MTDR</a>).
Diamondback Energy, a leading pure-play Permian operator, reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company expects to maintain growth in production volumes, benefiting from favorable commodity pricing conditions. FANG, carrying a Zacks Rank #3 (Hold), also has an investment-grade balance sheet.
Matador Resources recently 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, the Zacks #3 Ranked company 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.
<a href="https://www.zacks.com/stock/news/2292087/total-us-drilling-rig-tally-falls-here-s-what-it-means?cid=CS-BENZ-FT-analyst_blog|industry_focus-2292087">To read this article on Zacks.com click here.</a>

Stephens &amp; Co. analyst Mike Scialla initiates coverage on Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) with a Overweight rating and announces Price Target of $83.

Stephens & Co. Initiates Coverage On Matador Resources with Overweight Rating, Announces Price Target of $83

Investors might want to bet on Matador Resources (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtdr#NYSE">MTDR</a>), as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.
The Zacks rating relies solely on a company&#39;s changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Matador is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company&#39;s future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That&#39;s partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company&#39;s shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Matador imply an improvement in the company&#39;s underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988.
Earnings Estimate Revisions for Matador
For the fiscal year ending December 2024, this independent oil and gas company is expected to earn $7.89 per share, which is a change of 16.5% from the year-ago reported number.
Analysts have been steadily raising their estimates for Matador. Over the past three months, the Zacks Consensus Estimate for the company has increased 16.1%.
Bottom Line
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of &#39;buy&#39; and &#39;sell&#39; ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a &#39;Strong Buy&#39; rating and the next 15% get a &#39;Buy&#39; rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
The upgrade of Matador to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
<a href="https://www.zacks.com/stock/news/2290016/all-you-need-to-know-about-matador-mtdr-rating-upgrade-to-strong-buy?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_12_zacks_rank_upgrade-2290016">To read this article on Zacks.com click here.</a>

Although U.S. stocks closed higher on Monday, there were a few notable insider trades.
When insiders purchase shares, it indicates their confidence in the company&#8217;s prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
Below is a look at a few recent notable insider purchases. For more, check out <a href="https://www.benzinga.com/sec/insider-trades/">Benzinga&#8217;s insider transactions</a> platform.
<h3 class="wp-block-heading">Occidental Petroleum</h3>
<ul>
<li>The Trade: Occidental Petroleum Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OXY#NYSE">OXY</a>) 10% owner Warren E Buffett <a href="https://www.benzinga.com/quote/OXY/analyst-ratings">acquired a total of 2,947,611 shares</a> at an average price of $59.70. To acquire these shares, it cost around $175.98 million.</li>
<li>What's Happening: On May 24, Citigroup analyst Scott Gruber maintained Occidental Petroleum with a Neutral and lowered the price target from $69 to $65.</li>
<li>What Occidental Petroleum Does: Occidental Petroleum is an independent exploration and production company with operations in the United States, Latin America, and the Middle East.</li>
</ul>
<h3 class="wp-block-heading">Beyond</h3>
<ul>
<li>The Trade: Beyond, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BYON#NYSE">BYON</a>) Director, Executive Chairman of Board Marcus Lemonis acquired a total of 3,700 shares at an average price of $13.64. To acquire these shares, it cost around $50,468.</li>
<li>What's Happening: On Monday, Beyond announced structural leadership changes.</li>
<li>What Beyond Does: Beyond Inc is an online retailer that provides products and services through websites.</li>
</ul>
<h3 class="wp-block-heading">Matador Resources</h3>
<ul>
<li>The Trade: Matador Resources Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) EVP, GC and Head of M&amp;A Bryan A Erman <a href="https://www.benzinga.com/sec/insider-trades/">bought a total of 1,750 shares</a> at an average price of $55.90. To acquire these shares, it cost around $97,825.</li>
<li>What's Happening: On June 12, Matador Resources disclosed that its subsidiary has entered into an agreement to acquire Ameredev II's oil and gas properties in Lea County, New Mexico, and Loving and Winkler Counties, Texas, for $1.905 billion.</li>
<li>What Matador Resources Does: Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources.</li>
</ul>
Read More: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/06/39355507/jim-cramer-says-hes-going-to-have-to-wait-on-sofi-but-recommends-this-great-little-indus">Jim Cramer Says He&#8217;s &#8216;Going To Have To Wait&#8217; On SoFi, But Recommends This &#8216;Great Little Industrial Company</a>&#8216;

Mizuho analyst William Janela maintains Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) with a Buy and raises the price target from $83 to $85.

Mizuho Maintains Buy on Matador Resources, Raises Price Target to $85

Providing a diverse range of perspectives from bullish to bearish, 13 analysts have published ratings on Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) in the last three months.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">10</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $77.92, along with a high estimate of $91.00 and a low estimate of $62.00. Witnessing a positive shift, the current average has risen by 3.66% from the previous average price target of $75.17.
<img src="https://www.benzinga.com/files/images/story/2024/1718287234_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive Matador Resources. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$91.00</td>
<td>$87.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$83.00</td>
<td>$78.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$87.00</td>
<td>$85.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$78.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>Subash Chandra</td>
<td>Benchmark</td>
<td>Lowers</td>
<td>Buy</td>
<td>$62.00</td>
<td>$71.00</td>
</tr>
<tr>
<td>Tim Rezvan</td>
<td>Keybanc</td>
<td>Raises</td>
<td>Overweight</td>
<td>$76.00</td>
<td>$71.00</td>
</tr>
<tr>
<td>Hanwen Chang</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$85.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>Zach Parham</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$77.00</td>
<td>$76.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$85.00</td>
<td>$82.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$76.00</td>
<td>$67.00</td>
</tr>
<tr>
<td>Leo Mariani</td>
<td>Roth MKM</td>
<td>Raises</td>
<td>Buy</td>
<td>$71.00</td>
<td>$66.00</td>
</tr>
<tr>
<td>Leo Mariani</td>
<td>Roth MKM</td>
<td>Maintains</td>
<td>Buy</td>
<td>$66.00</td>
<td>-</td>
</tr>
<tr>
<td>William Janela</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$76.00</td>
<td>$67.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Matador Resources. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Matador Resources compared to the broader market.</li>
<li>Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Matador Resources's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.</li>
</ul>
For valuable insights into Matador Resources's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/MTDR/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Matador Resources analyst ratings.</a>
<h2>All You Need to Know About Matador Resources</h2>
Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company's assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business.
<h3>Unraveling the Financial Story of Matador Resources</h3>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Positive Revenue Trend: Examining Matador Resources's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 39.33% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.
Net Margin: Matador Resources's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 24.67% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Matador Resources's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.65% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Matador Resources's ROA excels beyond industry benchmarks, reaching 2.43%. This signifies efficient management of assets and strong financial health.
Debt Management: Matador Resources's debt-to-equity ratio is below the industry average at 0.45, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>How Are Analyst Ratings Determined?</h2>
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Cracking The Code: Understanding Analyst Reviews For Matador Resources

Truist Securities analyst Neal Dingmann maintains Matador Resources (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) with a Buy and raises the price target from $87 to $91.

Truist Securities Maintains Buy on Matador Resources, Raises Price Target to $91

Matador Exec Says Continuing To Explore Optionality And Opportunities With Our Existing Midstream Assets

Matador Resources Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MTDR#NYSE">MTDR</a>) shares are trading higher after the company disclosed that its subsidiary has entered into an agreement to acquire Ameredev II&#8217;s oil and gas properties in Lea County, New Mexico, and <a target="_blank" href="https://www.benzinga.com/pressreleases/24/06/b39287916/matador-resources-company-announces-strategic-bolt-on-delaware-basin-acquisition" rel="noreferrer noopener">Loving and Winkler Counties, Texas, for $1.905 billion</a>.
The Ameredev acquisition also includes a 19% stake in Piñon Midstream, LLC, which has assets in southern Lea County, New Mexico. Ameredev is a portfolio company of EnCap Investments L.P.
The Ameredev acquisition, effective June 1, 2024, is expected to close late in the&nbsp;third quarter of 2024, pending customary conditions.
The deal will expand Matador&#8217;s midstream footprint with a 19% stake in Piñon, enhancing coordination in gathering, transporting, and treating natural gas from the Ameredev properties.
Synergies: After deal closure, Matador expects to have over 190,000 net acres in the Delaware Basin, around 2,000 net locations, production exceeding 180,000 BOE per day, proven reserves of over 580 million BOE, and an enterprise value surpassing $10 billion.
The acquisition is expected to generate forward one-year Adjusted EBITDA of approximately $425 to $475 million at strip prices as of late May 2024, representing an attractive purchase price multiple of 4.2x for the upstream assets.
Ameredev asset highlights include an estimated production of 25,000 to 26,000 BOE daily, with <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">65% oil, in the third quarter of 2024</a>.
Matador estimates the total proved oil and natural gas reserves linked to the Ameredev properties to be 118 million BOE (60% oil) as of May-end.
Upon combining with Ameredev, the pro forma company is projected to possess 578 million BOE, marking a 26% increase from Matador&#8217;s total proved reserves of 460 million BOE as of December 31, 2023.
Joseph Wm. Foran, Matador&#8217;s Founder, Chairman, and CEO, said, &#8220;We evaluated this opportunity based on the high rock quality, the strong existing production and cash flow profile, the significant reserves additions, the high-quality inventory, the strategic fit within our existing portfolio of properties and the expansion of our midstream footprint with an ownership interest in Piñon.&#8221;
&#8220;We took significant strides during and shortly after the first quarter of 2024 to strengthen our balance sheet and allow us to participate in another special opportunity like this one.&#8221;
&#8220;This acquisition also positions Matador for continued success and growth throughout 2024, 2025 and into the future as one of the top ten producers in the Delaware Basin.&#8221;
To assist in financing this all-cash transaction, Matador has received firm commitments from PNC Bank, the lead bank under its reserves-based credit facility.
As of March-end, Matador Resources&#8217; cash and<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38389972/matador-resources-company-reports-first-quarter-2024-financial-and-operating-results" rel="noreferrer noopener"> restricted cash stood at $74.3 million</a>.
Investors can gain exposure to the stock via Invesco S&amp;P MidCap 400 GARP ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GRPM#NYSE">GRPM</a>) and Nuveen Small Cap Select ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NSCS#NYSE">NSCS</a>).
Price Action: MTDR shares are up 1.21% at $60.33 at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Matador Resources' $1.9B Deal Expands Oil And Gas Dominance In Texas And New Mexico: Details

Matador Resources'  Wholly-owned Subsidiary Inked A Definitive Agreement To Acquire A Subsidiary Of Ameredev Ii Parent, Llc For A Cash Payment Of $1.905B

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Shares of several oil & gas companies are trading lower following an OPEC+ meeting in which members said they would start phasing out voluntary production cuts in October.

Matador Resources (MTDR) reported better-than-expected first-quarter operational and financial results. While an attractive asset portfolio and strategic investments contribute to its rosy long-term prospects, MTDR faces challenges, including the volatility of commodity prices and debt management. Is it wise to add this energy stock to your watchlist? Continue reading… Valued at a $7.55 billion market cap, Matador Resources Company (<a href="https://stocknews.com/stock/MTDR/">MTDR</a>) is an independent energy company that engages in the exploration, development, and acquisition of oil and national gas resources. Its shares got a significant boost from solid first-quarter results with higher-than-expected production while lower operating expenses.
During the quarter, Matador's total oil and natural gas production averaged around 149,760 barrels of oil and natural gas equivalent (BOE) per day, 3% better than its announced guidance of 145,750 BOE per day. Its average oil production of 84,777 barrels per day was 2% better than its guidance average of 83,500 barrels per day.
Meanwhile, MTDR's drilling, completing, and equipping capital expenditures for the first quarter were nearly $35 million less than expected. The cost savings were due to continued operational and cost improvements by the drilling, production, and midstream teams.
Moreover, the company announced during the first quarter that the natural gas pipeline connections between Pronto and San Mateo and between Pronto and our Advance acreage were completed on time and within budget. After the completion, Pronto and San Mateo have a combined 595 miles of a three-stream pipeline system, including the midstream assets from the Advance acquisition.
Joseph Wm. Foran, Matador's CEO, commented, "Matador is pleased to report another quarter that exceeded our original expectations due to the excellent operational and financial execution by the Matador team. This outcome reflects a total team effort and a long-term approach to managing Matador's business that has resulted in Matador outperforming the S&amp;P 500, our peer group and the price of crude oil over the last three years."
"Going forward, we remain focused—as a team—on profitable growth at a measured pace, which has resulted in over 30% oil production growth annually since we became a public company in 2012," Foran added.
For the full year 2024, Matador expects to achieve the high end of its previously announced average production guidance for oil of 91,000 to 95,000 barrels per day, natural gas of 370 to 386 million cubic feet per day, and total average 2024 production of 153,000 to 159,000 BOE per day.
Shares of MTDR have gained 4.4% over the past six months and 6.4% over the past year to date to close the last trading session at $60.51. However, the stock has plunged 2.5% over the past month.
Let's look at factors that could influence MTDR's performance in the upcoming months.
Recent Strategic Acquisition
On June 12, MTDR announced that its wholly-owned subsidiary entered an agreement to <a href="https://www.matadorresources.com/news-releases/news-release-details/matador-resources-company-announces-strategic-bolt-delaware-0">acquire a subsidiary of Ameredev II Parent, LLC</a>, including certain oil and natural gas-producing properties and undeveloped acreage in Lea County, New Mexico and Loving and Winkler Counties, Texas. The acquisition also includes around 19% stake in Piñon Midstream, LLC.
After the acquisition's closing, Matador expects to have 190,000 net acres in the Delaware Basin, production of over 180,000 barrels of BOE per day, proved oil and natural gas reserves of 580 million BOE, and an enterprise value above $10 billion. This strategic move will be accretive to key financial and valuation metrics.
Mixed Financials
For the first quarter that ended March 31, 2024, MTDR's total revenue increased 40.6% year-over-year to $787.69 million. That beat the analysts' revenue estimate of $734.24 million. Its adjusted EBITDA rose 38.4% from the year-ago value to $505.40 million. Its adjusted net income grew 14.6% from the previous year's quarter to $206.20 million,
Furthermore, the company's adjusted EPS was $1.71, compared to the consensus estimate of $1.52, and up 14% year-over-year. However, its adjusted <a href="https://www.investopedia.com/terms/f/freecashflow.asp">free cash flow</a> was $28.60 million, down 50% from the prior year's period. Also, as of March 31, 2024, MTDR's current liabilities increased to $851.34 million, compared to $685.28 million as of December 31, 2023.
Impressive Historical Growth
Over the past three years, MTDR's revenue has grown at a CAGR of 46.4%. The company's total assets have increased at a CAGR of 30.1% over the same period, and its EBITDA has improved at a 71.9% CAGR. Furthermore, the company's operation income (EBIT) has grown at a CAGR of 173.6% over the same timeframe.
Favorable Analyst Expectations
Analysts expect MTDR's revenue and EPS for the second quarter (ended June 2024) to grow 30.2% and 26.2% year-over-year to $830.54 million and $1.79, respectively. Moreover, the company surpassed consensus EPS estimates in each of the trailing four quarters, which is impressive.
For the fiscal year ending December 2024, Street expects MTDR's revenue and EPS to grow 25.3% and 15.2% from the prior year to $3.52 billion and $7.80, respectively. In addition, the company's revenue and EPS for the fiscal year 2025 are expected to increase 20.9% and 20.2% year-over-year to $4.25 billion and $9.38, respectively.
High Profitability
MTDR's trailing-12-month gross profit margin of 80.19% is 79.1% higher than the 44.78% industry average. Also, the stock's trailing-12-month levered EBITDA margin of 73.77% is 116.7% higher than the industry average of 34.04%. However, its trailing-12-month net income margin of 31.03% is 171.6% higher than the industry average of 11.43%.
Additionally, the stock's trailing-12-month ROCE, ROTC, and ROTA of 22.86%, 14.18%, and 10.66% are 66%, 87.8%, and 90.2% higher than the industry averages of 13.77%, 7.55%, and 5.60%, respectively.
Mixed Valuation
In terms of forward non-GAAP P/E, MTDR is trading at 7.76x, 30.9% lower than the industry average of 11.23x. The stock's forward EV/EBITDA multiple of 4.11 is 29.7% lower than the industry average of 5.85. Likewise, its forward Price/Cash Flow of 3.46x is 35.6% lower than the industry average of 5.37x.
However, the stock's forward Price/Sales multiple of 2.15 is 47.7% higher than the industry average of 1.45. Also, its forward EV/Sales of 2.77x is 32.4% higher than the industry average of 2.09x.
POWR Ratings Reflect Uncertainty
MTDR's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, which translates to Neutral in our proprietary rating system. The POWR Ratings are calculated by taking into account 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. MTDR has a B grade for Quality, in sync with its higher-than-industry profitability. However, the stock has a C for Value, consistent with its mixed valuation.
Also, MTDR has a D grade for Stability, justified by its 60-month beta of 3.30.
Within the <a href="https://stocknews.com/category/energy-oil-gas/">Energy- Oil &amp; Gas</a> industry, MTDR is ranked #35 out of 79 stocks.
Beyond what I have stated above, we have also given MTDR grades for Sentiment, Growth, and Momentum. Get all MTDR ratings <a href="https://stocknews.com/stock/MTDR/">here</a>.
Bottom Line
MTDR reported solid first-quarter results that exceeded expectations due to outstanding operational and financial execution. While its attractive asset portfolio, strategic investments, and efficient operations position it for long-term success, MTDR faces challenges in effectively managing its debt and is exposed to volatility in commodity prices, particularly oil and natural gas.
Given its debt burden, mixed valuation, and uncertain near-term outlook, waiting for a better entry point in this stock seems prudent.
How Does Matador Resources Company (MTDR) Stack Up Against Its Peers?
Given its near-term uncertain prospects, the odds of MTDR outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these three A (Strong Buy) or B-rated (Buy) stocks from the <a href="https://stocknews.com/category/energy-oil-gas/">Energy- Oil &amp; Gas</a> industry:
Secure Energy Services Inc. (<a href="https://stocknews.com/stock/SECYF/">SECYF</a>)
PrimeEnergy Resources Corporation (<a href="https://stocknews.com/stock/PNRG/">PNRG</a>)
Cenovus Energy Inc. (<a href="https://stocknews.com/stock/CVE/">CVE</a>)
What To Do Next?
43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.
<a href="https://report.stocknews.com/sign-up/stock-market-outlook-2024/?formplacement=artbotad_smo24_rep">2024 Stock Market Outlook &gt;</a>

<hr />
MTDR shares were unchanged in premarket trading Friday. Year-to-date, MTDR has gained 7.11%, versus a 16.76% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Mangeet Kaur Bouns</h2> <img src='https:/wp-content/uploads/2022/01/Mangeet-Kaur-Bouns_Image-4.jpg' style="float:left; padding:5px;width:125px;">Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.<a href="https://stocknews.com/authors/?author=mangeet-kaurbouns">More...</a>The post <a href=https://stocknews.com/news/mtdr-cve-pnrg-secyf-is-matador-resources-an-energy-stock-worth-watching/>Is Matador Resources an Energy Stock Worth Watching?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Is Matador Resources an Energy Stock Worth Watching?

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
If you had to point to any one attribute that makes very large capitalization firms attractive as an investment vehicle, it would be predictability. Big, established businesses are predictable in terms of earnings and revenue growth. At the same time, they lack maximum upside potential. So, the next best thing in that regard may be future <a href="https://investorplace.com/stock-types/blue-chip-stocks/">blue-chip stocks</a>.



What do I mean by that term? Simply, these are success entities occupying the mid-cap realm; basically, companies that feature a value of $2 billion to just under $10 billion. Generally speaking, the threshold to be considered a blue chip is a <a href="https://www.investopedia.com/terms/b/bluechip.asp#:~:text=A%20generally%20accepted%20benchmark%20is,may%20prefer%20blue%20chip%20stocks.">market cap of $10 billion</a>. So, it makes sense that enterprises poised to hit this benchmark are enticing.



With future blue-chip stocks, you have a strong bout of predictability on your side. At the same time, there&rsquo;s also more growth potential. In other words, investors are bidding up shares to attain the title of the blue-chip domain.



That&rsquo;s a powerful incentive and provides this unique investment class a little extra oomph for not much more risk absorption. With that, below are three future blue-chip stocks to consider.



<h2>Wyndham Hotels &amp; Resorts (WH)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/02/wh_wyndham-hotels-1600-300x169.png" alt="A blue sign says Wyndham Hotels &amp; Resorts in front of red and purple flowers"><div>Source: Mihai_Andritoiu / Shutterstock</div></div>If the travel prioritization trend has anything to say, Wyndham Hotels &amp; Resorts (NYSE:<a href="https://investorplace.com/stock-quotes/wh-stock-quote/">WH</a>) could end up becoming one of the future blue-chip stocks. Right now, the company sits behind the biggest names in the industry like Hilton (NYSE:<a href="https://investorplace.com/stock-quotes/hlt-stock-quote/">HLT</a>). However, with its vast portfolio of brands covering a range of income levels, Wyndham can become a fan favorite.



Financially, the print supports the company&rsquo;s push to rise up the lodging sector&rsquo;s ranks. In the past four quarters, Wyndham posted an average earnings per share of 98.3 cents. This edged past analysts&rsquo; expectations calling for 95.3 cents. Overall, the average earnings surprise during the aforementioned period was 3.03%.



In the trailing 12 months (TTM), the hotelier generated EPS of $2.83 on sales of $1.38 billion. For fiscal 2024, experts believe that the bottom line could expand by nearly 6% to earnings of $4.25 per share. Also, revenue could move up 3.6% to $1.45 billion. Combined with a forward dividend yield of 2%, WH ranks among the enticing candidates for future blue-chip stocks.



<h2>Stride (LRN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/04/online-education-1600-300x169.jpg" alt="man in headphones writing notes in notebook watching webinar video course"><div>Source: fizkes / Shutterstock.com</div></div>Based in Reston, Virginia, Stride (NYSE:<a href="https://investorplace.com/stock-quotes/lrn-stock-quote/">LRN</a>) falls under the education and training services industry. <a href="https://finance.yahoo.com/quote/LRN/profile/">Per its public profile</a>, the company bills itself as a technology-based education service firm. It offers an integrated package of systems, services, products and professional expertise to support virtual or blended public schools. With other nations aggressively investing in their academic infrastructure, the U.S. needs to step up.



Fundamentally, Stride could offer a viable solution, making it an attractive candidate for future blue-chip stocks. What&rsquo;s even more encouraging is the underlying financial performance. In the past four quarters, the company posted an average EPS of almost $1.07. This figure easily beat out covering experts&rsquo; estimate of 81.5 cents. The earnings surprise came out to 44.3%.



In the TTM period, EPS landed at $4.27 on sales of $1.99 billion. For fiscal 2024, analysts anticipate that the bottom line could pop 52.5% to earnings of $4.53 per share. On the top line, revenue could jump 10.6% to $2.03 billion. With the critical need tied into the business, LRN ranks among the top future blue-chip stocks to buy.



<h2>Matador Resources (MTDR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/10/oil-price-predictions1600-300x169.png" alt="Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field. Oil prices and oil price predictions"><div>Source: Golden Dayz / Shutterstock.com</div></div>As a mid-cap hydrocarbon energy firm, Matador Resources (NYSE:<a href="https://investorplace.com/stock-quotes/mtdr-stock-quote/">MTDR</a>) offers a sizable footprint. Headquartered in Dallas, Texas, Matador falls under the oil and gas exploration and production segment, otherwise known as upstream. This component of the fossil-fuel value chain could see significantly boosted demand due to geopolitics. Tensions in the Middle East and Eastern Europe could see global oil supply chains disrupted.



Cynically, that may help boost the bottom line for Matador. Plus, on the domestic front, Donald Trump and the Republicans look set for an easy road to the White House. That should help boost interest in MTDR stock. On the financial side, the company has generated an average EPS of $1.75 in the past four quarters. That beats out the estimate calling for $1.56.



During the TTM period, Matador posted EPS of $7.30 on revenue of $2.83 billion. For fiscal 2024, analysts are projecting EPS to hit $7.81. If so, that would imply a growth rate of 15.3%. On the top line, sales could reach $3.49 billion, up 24.4%. It&rsquo;s one of the enticing future blue-chip stocks to consider.



On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/3-future-blue-chip-stocks-you-can-still-snag-at-a-bargain/">3 Future Blue-Chip Stocks You Can Still Snag at a Bargain</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Future Blue-Chip Stocks You Can Still Snag at a Bargain

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
While the ideological machinery is seemingly focused on zero emissions, don&rsquo;t be mistaken: the world is consuming energy-related resources at a blistering pace. This situation will likely only be exacerbated with global population growth combined with advanced technologies like artificial intelligence. Oh yeah, none of these developments are for &ldquo;free.&rdquo; Therefore, high-growth <a href="https://investorplace.com/industries/energy/">energy stocks</a> make a lot of sense.



I don&rsquo;t even consider such a framework to be cynical, although I suppose it could be framed that way. Rather, we&rsquo;re just dealing with logical deductions. More people, more power-hungry technologies, more resource consumption &ndash; it really is that simple. And that&rsquo;s not to slight green infrastructure development. It&rsquo;s just that we need all the help we can get.



What does that mean? Well, fossil fuels, nuclear power, even coal will likely be relevant in the years ahead. It also helps in the meantime that the Republicans have a clear shot to gaining serious political power. They&rsquo;re not exactly anti-hydrocarbons. With that in mind, below are high-growth energy stocks to consider.



<h2>Chevron (CVX)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/cvx-stock-6-300x169.jpg" alt='Chevron (CVX) logo on gas station sign with "diesel" and "food mart" written underneath'><div>Source: Sundry Photography / Shutterstock.com</div></div>When it comes to green solutions, Chevron (NYSE:<a href="https://investorplace.com/stock-quotes/cvx-stock-quote/">CVX</a>) isn&rsquo;t exactly perched at the top of the list. However, when it comes to high-growth energy stocks, CVX deserves consideration. Sure, it&rsquo;s a major player in the oil and gas integrated industry. Indeed, it&rsquo;s one of the world&rsquo;s supermajors. Nevertheless, shifting political tides bode well for the company.



Admittedly, the company has come across some challenges. In the past four quarters, Chevron&rsquo;s average earnings per share landed at $3.07. However, analysts were expecting on average $3.15 during the same period. That led to a negative earnings surprise of 1.4%. Still, the Republicans are likely moving into power, which could lead to a hydrocarbon bonanza.



Another factor is that geopolitical turmoil could disrupt global oil supply chains in Europe and the Middle East. I imagine chaos would be the order of the day given former President Donald Trump&rsquo;s ultracrepidarian perspectives on global affairs.



I also imagine analysts recognize this. Therefore, CVX is a <a href="https://www.tipranks.com/stocks/cvx/forecast">consensus strong buy</a> with a $186.21 price target, implying nearly 22% upside.



<h2>Diamondback Energy (FANG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/09/diamondback_fang_stock_fang1600-300x169.jpg" alt="Diamondback Energy (FANG) logo on its website to represent oil stocks. FANG stock"><div>Source: Pavel Kapysh / Shutterstock.com</div></div>Based in Midland, Texas, Diamondback Energy (NASDAQ:<a href="https://investorplace.com/stock-quotes/fang-stock-quote/">FANG</a>) operates in the hydrocarbon exploration and production segment. This is also known as the upstream component of the oil and gas value chain. An independent enterprise, Diamondback acquires and develops unconventional, onshore oil and natural gas reserves in the Permian Basin (located in West Texas).



Geopolitically, the threat of oil supply chain disruptions could boost upstream entities located in friendly jurisdictions. It doesn&rsquo;t get much friendlier than here at home. Further, a future Trump administration will likely bolster FANG through approval of various hydrocarbon initiatives. Therefore, the immediate horizon looks bright for Diamondback, making it one of the high-growth energy stocks.



In the trailing 12 months (TTM), the company posted net income of $3.18 billion or $17.73 per share. Revenue hit $8.27 billion in the cycle. For fiscal 2024, analysts anticipate nearly 6% expansion in EPS to $19.08. On the top line, revenue could rise 9% to $9.17 billion. Also, by fiscal 2025, we could see gargantuan growth to $15.8 billion in sales.



<h2>Cheniere Energy (LNG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/02/cheniere_energy_lng1600-300x169.jpg" alt="LNG stock: the Cheniere logo displayed on a phone"><div>Source: IgorGolovniov / Shutterstock.com</div></div>Headquartered in Houston, Texas, Cheniere Energy (NYSE:<a href="https://investorplace.com/stock-quotes/lng-stock-quote/">LNG</a>) falls under the oil and gas midstream segment. This area of the hydrocarbon industry deals primarily with storage and transportation. As you might guess from the ticker symbol, Cheniere specializes in liquefied natural gas or LNG. It&rsquo;s always been relevant because LNG is a critical commodity. However, demand for it could rise.



Geopolitically, Russia is a major provider of global LNG. It&rsquo;s also providing something else in the way of military belligerence. And that&rsquo;s where circumstances get tricky because of the (likely) incoming Trump administration. European leaders generally have a drastically different view of the world than that of &ldquo;MAGA&rdquo; Republicans. One can imagine friction if not outright chaos in the European theater.



With that in mind, Cheniere is a higher-risk entity. Still, I also believe that it&rsquo;s one of the high-growth energy stocks to consider. Yes, on paper, analysts are targeting a 22.2% decline in sales to $15.86 billion this year compared to last. Still, the great need for LNG now that Russia is effectively off the table for western nations could boost Cheniere&rsquo;s share price.



<h2>Permian Resources (PR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/10/oil-price-predictions1600-300x169.png" alt="Rise in gasoline prices concept with double exposure of digital screen with financial chart graphs and oil pumps on a field. Oil prices and oil price predictions"><div>Source: Golden Dayz / Shutterstock.com</div></div>Also operating in the hydrocarbon exploration and production segment, Permian Resources (NYSE:<a href="https://investorplace.com/stock-quotes/pr-stock-quote/">PR</a>) is an independent oil and natural gas company. It focuses on the development of crude oil and related liquids-rich natural gas reserves in the U.S. Its main area of operation is on the Delaware Basin, which is a sub-basin of the famous Permian.



Financially, the company has encountered some choppy weather in the second and third quarters of last year. During that time, the company&rsquo;s EPS was well below expectations. However, the performance picked up in the last two quarters. Overall, in the trailing year, Permian managed an average EPS of 32 cents. That said, it did slip below the target of 35 cents.



In the TTM period, Permian posted net income of $520.76 million or $1.18 per share. Revenue hit $3.75 billion and is on a growth trek. Enticingly, analysts anticipate a 32.26% bump in EPS to $1.64 by the end of this year. More impressively, revenue could soar almost 65% to $5.14 billion. Therefore, PR makes a compelling case for high-growth energy stocks.



<h2>Cameco (CCJ)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/05/uranium-hand-1600-300x169.jpg" alt="CCJ Stock: Hand in long yellow glove holding a chunk of uranium material"><div>Source: shutterstock.com/RHJPhtotoandilustration</div></div>When discussing high-growth energy stocks, it doesn&rsquo;t make sense to just talk about hydrocarbons although that&rsquo;s naturally where the focal point is. At this juncture, it also makes sense to consider nuclear energy, which brings us to Cameco (NYSE:<a href="https://investorplace.com/stock-quotes/ccj-stock-quote/">CCJ</a>). Primarily, Cameco is involved in the exploration, mining, milling, acquisition and distribution of uranium concentrate (also known as yellowcake).



Uranium of course carries indirect controversies due to fallout concerns. However, because the tech ecosystem has thrown (seemingly) its full weight into AI, nuclear cannot be ignored. The power consumption is too great. And as Goldman Sachs recently suggested, the <a href="https://www.goldmansachs.com/intelligence/pages/gen-ai-too-much-spend-too-little-benefit.html">productivity gains are not yet worth the costs</a>. However, the machinery just keeps moving forward, which means more consumption will be on the horizon.



That&rsquo;s a problem for society but a potential godsend for the uranium industry. As one of the leaders in the space, Cameco should benefit. Yes, its earnings performances in the past year have not been quite up to snuff. Nevertheless, that could change in the years ahead.



For fiscal 2024, analysts see EPS expansion of almost 32% to 75 cents. The top line could rise 17.5% to $2.22 billion. It&rsquo;s one of the high-growth energy stocks to keep on your radar.



<h2>Peabody Energy (BTU)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2022/03/peabody_btu_1600-300x169.png" alt="Peabody Energy (BTU) coal mining company logo seen displayed on smart phone"><div>Source: IgorGolovniov / Shutterstock.com</div></div>Switching gears yet again, let&rsquo;s talk about Peabody Energy (NYSE:<a href="https://investorplace.com/stock-quotes/btu-stock-quote/">BTU</a>). Falling under the thermal coal industry, Peabody Energy engages in the coal mining business in the U.S. and several other countries, including Japan, India, Brazil and France, to name but a few. To be sure, coal doesn&rsquo;t exactly seem relevant in the current century. Yet it could make a comeback.



Let me be clear: BTU stock represents a high-risk, questionable-reward opportunity. However, I&rsquo;m putting it out there because of the math. Essentially, you have the perfect storm of global population growth, burgeoning technologies like AI and the worldwide distribution of said technologies. All that stuff isn&rsquo;t free and it mainly comes at the cost of energy consumption.



So, hug a tree if you like. But the reality is that we probably require all the energy resources we can get. That may very well include coal. So, I understand that Peabody has been an earnings underperformer. It doesn&rsquo;t look good in that context. As well, analysts project erosion in the business over the next two years.



But with Trump likely to be our next president (because President Biden is stubborn), I think BTU deserves a rethink.



<h2>Matador Resources (MTDR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/oil-stocks1600-2-300x169.png" alt="3D rendered two black oil barrels on digital financial chart screen with yellow numbers and rising, green, falling, red arrows on black background. Oil stocks"><div>Source: stockwars / Shutterstock.com</div></div>Based in Dallas, Texas, Matador Resources (NYSE:<a href="https://investorplace.com/stock-quotes/mtdr-stock-quote/">MTDR</a>) is another upstream specialist. An independent outfit, Matador focuses on the exploration, development, production and acquisition of oil and natural gas resources. Primarily, it operates in the hydrocarbon-rich regions of Southeast New Mexico and West Texas. Given its domestic focus, the coming political shift bodes well for MTDR stock.



A key factor to consider is the company&rsquo;s financial prowess. In the past four quarters, Matador&rsquo;s EPS averaged $1.75. That beat out the estimate calling for $1.56 during the same period. Overall, the average earnings surprise came out to 11.53%. That&rsquo;s a very solid showing considering that some hydrocarbon players encountered choppy weather.



Notably, MTDR stock trades at 6.96X forward earnings, a modest premium to the 6.63X multiple that it printed over the past year. Further, the market prices shares at 2.31X trailing-year revenue. That&rsquo;s below the past-year average of 2.36X.



Why is that important? Analysts project that by year&rsquo;s end, EPS could rise 15.36% to $7.81. The top line could bump up 24.4% to $3.49 billion. In the following year, EPS could hit $9.38 on sales of $4.19 billion. It&rsquo;s a compelling idea for high-growth energy stocks.



On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/7-high-growth-energy-stocks-ready-to-explode/">7 High-Growth Energy Stocks Ready to Explode</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

7 High-Growth Energy Stocks Ready to Explode

Companies in the Energy sector have received a lot of coverage today as analysts weigh in on Excelerate Energy, Inc. Class A (EE – Research Report)...

Analysts Offer Insights on Energy Companies: Excelerate Energy, Inc. Class A (EE), Matador Resources (MTDR) and CNX Resources (CNX)

Mizuho Securities analyst William Janela has reiterated their bullish stance on MTDR stock, giving a Buy rating on July 11. William Janela has give...

Buy Rating Affirmed for Matador Resources Amid Strategic Developments and Strong Financial Forecasts

There's a lot to be optimistic about in the Energy sector as 3 analysts just weighed in on Conocophillips (COP – Research Report), Matador Resource...

Analysts' Top Energy Picks: Conocophillips (COP), Matador Resources (MTDR)

Matador Resources declares $0.20 dividend

Matador Resources (MTDR) has provided an update. Matador Resources Company has announced a new quarterly cash dividend for its shareholders, in lin...

Matador Resources Announces New Quarterly Cash Dividend

Matador Resources Q2 2024 Earnings Preview

Notable earnings after Tuesday's close

APAM

ASMIY

CALM

CSGP

CTRA

ENPH

ENVA

EWBC

FQVLF

FTAI

GBOOY

GOOG

MANH

PFSI

PILBF

ROIC

SECYF

TSLA

USNA

VICR

Press Releases

Matador Resources Company Announces Cash Tender Offer for Any and All of Its Outstanding 5.875% Senior Notes Due 2026

Matador Resources Company Prices Upsized Offering of $900 Million of Senior Notes Due 2032

Matador Resources Company Announces Expiration and Results of Cash Tender Offer for Any and All of Its Outstanding 5.875% Senior Notes Due 2026

Matador Resources Company Announces Date of First Quarter 2024 Earnings Release

Matador Resources Company Declares Quarterly Cash Dividend

Matador Resources Company Reports First Quarter 2024 Financial and Operating Results

Matador Resources Company Announces 2024 Annual Meeting and Webcast Details

Matador Resources Company Announces Strategic Bolt-On Delaware Basin Acquisition

Matador Resources Company Announces Date of Second Quarter 2024 Earnings Release

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