Upstream operator Matador Resources Company (MTDR) recently reported an update related to its production status, acquisitions, liquidity positions and guidance.
Production
Matador reveals that it produced roughly 2.1 million barrels (MMBbl) of oil during 2013, reflecting a year-over-year hike of roughly 75%. Moreover, Matador’s full-year 2013 oil production met the upper limit of its revised 2013 oil output guidance of 2.0-2.1 MMBbl of oil.
During 2013, Matador produced 12.9 billion cubic feet (Bcf) of natural gas. The natural gas output in 2013 also touched the higher end of the revised 2013 gas production projection of 12.0-13.0 Bcf.
Recently, several completed wells of the company have started production. Better-than-expected output from the initial operation of these wells helped Matador reach the upper end of the 2013 oil and natural gas output guidance.
Acquisitions
At the beginning of 2013, Matador held net 7,600 acres of land in the Southeast New Mexico and West Texas-based Permian Basin. Following several acquisitions in the regions during 2013, the company’s total acres of land in the Permian Basin in Southeast New Mexico and West Texas stood at 44,800 net acres as of Dec 31, 2013.
In the Eagle Ford shale in South Texas, Matador purchased 1,660 net acres of land during 2013. Additionally, in the Haynesville shale in Northwest Louisiana, the company acquired 1,190 net acres of area through 2013.
Liquidity
Under its revolving credit facility, the total borrowing base of Matador on Dec 31, 2013 was $350.0 million. Moreover, as of Dec 31, 2013, the total cash balance of the company stood at $6.3 million.
Guidance
Matador has not altered its 2013 guidance after the last revision done on Nov 6, 2013. Moreover, the company has confirmed its 2014 guidance. Matador expects its 2014 oil and natural gas production to lie in the range of 2.8-3.1 MMBbl and 13.5-15.0 Bcf. Whereas, adjusted operating earnings are projected to lie between $235.0–$265.0 million.
Matador presently carries a Zacks Rank #4 (Sell), implying that it is expected to underperform the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the oil and gas exploration and production sector like Harvest Natural Resources Inc. (HNR), Athlon Energy Inc. (ATHL) and Legacy Reserves LP (LGCY). All the stocks sport a Zacks Rank #1 (Strong Buy).
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