Yahoo Finance Matador (MTDR) Tops on Q1 Earnings, Reiterates Output View
Matador Resources Company MTDR reported first-quarter 2023 adjusted earnings of $1.50 per share, beating the Zacks Consensus Estimate of $1.24 per share. However, the bottom line significantly declined from the year-ago quarter’s earnings of $2.32 per share.
Total quarterly revenues of $560.3 million surpassed the Zacks Consensus Estimate of $527 million. The top line declined from the year-ago level of $565.7 million.
Better-than-expected quarterly results were driven by higher oil-equivalent production volumes. The positives were partially offset by lower commodity price realizations.
Matador Resources Company Price, Consensus and EPS Surprise
Matador Resources Company price-consensus-eps-surprise-chart | Matador Resources Company Quote
Production
For first-quarter 2023, total production volume averaged 9,599 thousand barrels of oil equivalent (MBoe) (comprising 55.3% oil), higher than 8,457 MBoe a year ago.
The average oil production volume was 58,941 barrels per day (Bbls/d), up from 53,561 Bbls/d reported in the year-ago quarter. Natural gas production was 286.3 million cubic feet per day (MMcf/d), up from 242.4 MMcf/d a year ago.
Price Realization
The average realized price for oil (excluding realized derivatives) was $75.74 per barrel, which significantly declined from $95.45 in the year-ago quarter. The natural gas price of $3.93 per thousand cubic feet was lower than $7.63 in the prior-year quarter.
Operating Expenses
The company’s plant and other midstream services’ operating expenses increased to $3.23 per Boe from the year-earlier figure of $2.30. Also, lease operating costs increased from $4.01 per Boe in first-quarter 2022 to $4.63. Yet, production taxes, transportation and processing costs declined to $5.78 per barrel of oil equivalent (Boe) from $7.07 in the year-ago quarter.
Total operating expenses per Boe were $29.14, higher than the prior-year figure of $28.23.
Balance Sheet
As of Mar 31, 2023, Matador had cash and restricted cash of $503.4 million. Long-term debt was $1,170.5 million. Debt to capitalization was 25.3%.
Capital Spending
The company spent $294.8 million for the drilling, completing and equipping of wells in the first quarter, almost 6% lower than its projection primarily due to improvements in completion capital efficiencies.
Outlook
For 2023, Matador reiterated its oil equivalent production guidance of 44.35-46.25 million barrels. The metric suggests an improvement from 38.5 million oil-equivalent barrels reported in 2022. The company expects to produce 26.4-27.3 million barrels of oil in 2023.
Matador’s capital spending guidance for drilling, completing and equipping wells is pegged at $1,180-$1,320 million for the year. In midstream, it expects to spend $150-$200 million.
For 2023, Matador expects lease operating expenses of $5.25-$5.75 per Boe, indicating an increase from the $3.46 reported in 2022. Total operating expenses are anticipated to be $29.75-$33.25 per Boe.
Zacks Rank
Matador currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are some other firms worth considering, as these have the right combination of elements to beat on earnings in their upcoming quarterly results:
Magellan Midstream Partners LP MMP has an Earnings ESP of +0.70% and is currently a Zacks #3 Ranked player.
Magellan Midstream is scheduled to release first-quarter results on May 4. The Zacks Consensus Estimate for its earnings is pegged at $1.21 per share, suggesting an increase from the prior-year reported figure.
ConocoPhillips COP has an Earnings ESP of +0.13% and a Zacks Rank #3 at present.
ConocoPhillips is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for COP’s earnings is pegged at $2.02 per share, implying a decline from the prior-year reported figure.
EOG Resources Inc. EOG has an Earnings ESP of +0.74% and a Zacks Rank #3 at present.
EOG Resources is scheduled to release first-quarter earnings on May 4. The Zacks Consensus Estimate for EOG’s earnings is pegged at $2.42 per share, calling for a decline from the prior-year reported figure.
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Matador Resources Company (MTDR) : Free Stock Analysis Report
