Matador Resources Company (MTDR) declared that it has increased its borrowing base – under revolving credit facility – to $450 million from $385 million. The improved liquidity, owing to the higher borrowing base, will help the upstream energy company to exploit its increased proved reserves. As reported by Matador Resources, total oil and natural gas proved reserves were 57.7 million barrels of oil equivalent (BOE) at Jul 31, 2014, against 51.7 million BOE as of Dec 31, 2013.
Matador Resources added that it expects proved reserves to improve further by the end of this year. Accordingly, the company anticipates its borrowing base to increase to support the higher projected proved reserves.
An operational update also came from Matador Resources. Average daily production during the second quarter was 15,400 BOE per day, which is higher than the average output of 11,700 BOE per day in 2013. The company’s daily production of oil was 8,800 barrels per day (Bbl/d) and natural gas output was 39.7 million cubic feet per day (MMcf/d).
Moreover, Matador Resources’ daily production during the two-month period – from Jul 1 to Aug 31 – was 16,200 BOE per day. Most importantly, during the month of August, the company’s daily output reached 17,200 BOE per day.
Dallas, TX-based Matador Resources, currently has a Zacks Rank #4 (Sell), implying that it is expected to underperform the broader U.S. market in the next one to three months.
Meanwhile, one can look at better-ranked players in the same industry like WPX Energy Inc. (WPX), Halcon Resources Corp. (HK) and Whiting Petroleum Corp. (WLL). WPX Energy sports a Zacks Rank #1 (Strong Buy) while Halcon Resources and Whiting Petroleum carry a Zacks Rank #2 (Buy).
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