Imperial Capital Remains Bullish on Matador Resources (MTDR) Following 2Q - PT to $28

August 8, 2016 7:10 AM EDT
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Price: $23.94 +2.40%

Rating Summary:
    15 Buy, 10 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Imperial Capital reiterated an Outperform rating on Matador Resources Company (NYSE: MTDR), and raised the price target to $28.00 (from $25.00), following the company's 2Q earnings report. During the earnings conference call, management highlighted the retention of a three pipe gathering system in Loving County that appears to be the likeliest divestiture candidate.

Analyst Kim Pacanovsky commented, "We are maintaining our Outperform rating and raising our one-year price target to $28 from $25 on shares of MTDR, about 30% above the recent share price. On 8/3/16, MTDR released excellent 2Q16 results showing 26% sequential production growth (28,022boe/d – a company record) and a material 28% drop in sequential lease operating expenses (now $5.17/boe). After releasing impressive drilling results in the Delaware Basin in its lengthy operations update on 7/18/16, management focused on a much awaited liquidity update, citing potential midstream and property divestitures that could plug any liquidity gap should management elect to add a fourth rig. We believe a midstream divestiture is most likely given the precedent of its $143mn Loving County cryogenic natural gas processing plant divestiture to an EnLink (ENLC) subsidiary on 9/15/15."

For an analyst ratings summary and ratings history on Matador Resources Company click here. For more ratings news on Matador Resources Company click here.

Shares of Matador Resources Company closed at $21.60 yesterday.

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