Nomura Securities Starts Matador Resources Company (MTDR) at Neutral

Nomura Securities initiates coverage on Matador Resources Company (NYSE: MTDR) with a Neutral rating and a price target of $29.00.

Analyst Brian Downey commented, "Matador is essentially an investment in the Delaware Basin of the Permian. From a resource perspective, we currently see the Midland Basin as having better returns, but with upside surprise potential in parts of the Delaware. We think Matador’s Haynesville and Eagle Ford assets represent “bank” optionality on gas and oil prices, respectively."

The firm said the balance sheet in good shape heading into 2016. "Matador has ample optionality heading into next year. From a balance sheet perspective, its recent Loving County midstream sale (and April equity offering) have allowed MTDR to pay down its credit facility and keep plenty of liquidity to fund any 2016 cash flow gap as the Delaware grows (we model ~$160mn of CF at $50/bbl WTI, and see ~$320mn of all-in capex if the company keeps three rigs running)"

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 $25.53 yesterday.

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