Matador Resources Earnings Beat With Record Oil Production

Independant energy producer and shale exploration company Matador Resources reported better than expected third quarter earnings after the close Wednesday. The $MTDR main focus is the Wolfcamp and Bone Spring plays in the Delaware Basin.

Independant energy producer and shale exploration company Matador Resources reported better than expected third quarter earnings after the close Wednesday. The $MTDR main focus is the Wolfcamp and Bone Spring plays in the Delaware Basin. 

Matador Natural gas Processing

Matador Natural Gas Processing Plant 

Matador Resources Co NYSE: MTDR Reported Earnings After Close Wednesday

$0.63 Beat $0.43 EPS and $1.98 billion Beat $1.91 billion forecast in revenue 

Earnings

Matador Resources Co. (MTDR) on Wednesday reported third-quarter profit of $17.8 million. On a per-share basis, a profit of 15 cents. Earnings, adjusted for non-recurring costs, were 48 cents per share beating expectations of 37 cents per share. Revenue was $207.2 million which  forecasts of $208.2 million. 

Matador Resources Co NYSE: MTDR

Market Reaction > After hours $28.88 ▲ 0.035 (0.12%)

Highlights

  • Daily oil and total production were record numbers in Q3 2018 and up more than expected from Q2 2018
  • Oil production of ~32,300 Bbl per day, up 9% from ~29,700 Bbl per day in Q2 2018 – Record Quarter! 
  • Natural gas production of ~133.8 MMcf per day, down 4%, as expected, from ~139.2 MMcf per day in Q2 2018 , but up 21% year-over-year from ~110.5 million cubic feet per day in Q3 2017
  • Oil equivalent production of ~54,600 BOE per day (59% oil), up 3% from ~52,900 BOE per day (56% oil) in Q2 2018 – Record Quarter! 
  • Delaware Basin total oil equivalent production of ~47,800 BOE per day (63% oil) in Q3 2018, up 3% from ~46,500 BOE per day (59% oil) in Q2 2018 
  • Adjusted EBITDA(1)(3) of $155.4 million – Record Quarter! 
  • San Mateo has entered into contracts to provide firm gathering and processing for over 200 MMcf/d, or over 80% of the designed inlet capacity of 260 MMcf/d at the Black River Processing Plant
  • San Mateo completed its fourth and fifth commercial salt water disposal wells in the Rustler Breaks asset area in Eddy County, New Mexico 
  • Continued to strategically add to and enhance Delaware Basin acreage position. Acquired ~8,400 gross/net acres in the September 2018 BLM lease sale for $387 million, including some of the most prospective acreage in the Delaware Basin 
  • Including the BLM lease sale, YTD through October 31, 2018, Matador had acquired approximately 27,200 net leasehold and mineral acres. Delaware Basin acreage position now includes ~222,200 gross (~131,200 net) leasehold and mineral acres at an all-in cost of ~$11,000 per acre, excluding small amounts of production acquired. 
  • Continued solid execution in the Delaware Basin  Notable wells highlighted in Earnings Release: Strong #214H, Leslie #214H and Irvin Wall #131H in Antelope Ridge, Clare Glassell #204H in Wolf, David Edelstein #203H and Brantley #205H in Rustler Breaks  Enhanced already strong financial and liquidity positions via senior notes offerings and increase in borrowing base 

Outlook

  • Revised 2018 production and Adjusted EBITDA guidance estimates upward on October 31, 2018 
  • Plan to run six rigs in the Delaware Basin and one rig in South Texas for the remainder of 2018 
  • Three rigs in Rustler Breaks, one rig in Antelope Ridge, one rig in Wolf/Jackson Trust and one rig in Ranger/Arrowhead/Twin Lakes
  • Updated drilling, completing and equipping (“D/C/E”) capital expenditures on October 1, 2018 by $25 million to $30 million, or 4%, to reflect the addition of a seventh rig being deployed in South Texas to drill up to 10 wells, primarily in the Eagle Ford shale 
  • therwise, no further adjustments were made to estimated D/C/E or midstream capital expenditures for the remainder of 2018 
  • Will pursue strategic acreage and mineral acquisitions, primarily in the Delaware Basin, as opportunities arise

 

Matador Drilling

About Matador Resources

Matador Resources Company is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays.

Current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas.

The company operate in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. Matador also conduct midstream operations, primarily through their midstream joint venture, San Mateo Midstream, LLC.

Sources: Matador Earnings

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