Opinions
The Panic-Proof Portfolio (Stockchase Research)
Matador Resources
MTDR-N
PAST TOP PICK
Mar 04, 2025
Stock price when the opinion was issued
You might be interested:
About a 3 billion-dollar market. They will come out of this year with about 22,000 barrels a day and will likely double their production over the next 2 years. They are using technology to do that. Have spent about $440 million next year on CapX. Benefiting from a big drop in the cost of drilling. Bringing on wells in as little as 8 days. They are both in the Permian and Eagle Ford basins. Have over 10 years of drilling targets going forward.
(A Top Pick April 2/14. Down 18.73%.) His job it is to watch for change and as he sees change, be able to reposition portfolios as required. Last summer, the US$ started to blast off, which happened at the same time that energy prices started to roll over. He got stopped out of virtually all of his energy exposure, and this was one of the 1st. He came out of it at about $25.
MTDR operates in the prolific liquids rich Wolfcamp and Bone Spring plays. Commodity prices have been challenging this year, but recently reported earnings improvements allowing cash reserves to grow again. It trades at 8x earnings, 1.5x book and supports a 21% ROE. We recommend setting a stop-loss at $49, looking to achieve $74 -- upside potential of 21%. Yield 1.4%
(Analysts’ price target is $74.44)
Our PAST TOP PICK with MTDR has triggered its stop at $49. To remain disciplined, we recommend covering the position at this time.