NYSE:MTDR

Stock Analysis Report

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Executive Summary

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. More Details

Rewards

Trading at 62% below our estimate of its fair value

Earnings are forecast to grow 74.68% per year

Risk Analysis

No risks detected for MTDR from our risk checks.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Matador Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MTDR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

MTDR

-2.8%

US Oil and Gas

1.3%

US Market


1 Year Return

-48.1%

MTDR

-46.5%

US Oil and Gas

15.8%

US Market

Return vs Industry: MTDR matched the US Oil and Gas industry which returned -48.3% over the past year.

Return vs Market: MTDR underperformed the US Market which returned 13.8% over the past year.


Shareholder returns

MTDRIndustryMarket
7 Day0.5%-2.8%1.3%
30 Day-14.0%-13.4%-4.1%
90 Day0.9%-16.6%8.4%
1 Year-48.1%-48.1%-43.2%-46.5%18.4%15.8%
3 Year-68.4%-68.4%-46.5%-53.5%38.2%29.0%
5 Year-66.1%-66.1%-42.6%-53.9%84.9%64.0%

Price Volatility Vs. Market

How volatile is Matador Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Matador Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MTDR ($8.58) is trading below our estimate of fair value ($22.59)

Significantly Below Fair Value: MTDR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MTDR is unprofitable, so we can't compare its PE Ratio to the US Oil and Gas industry average.

PE vs Market: MTDR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MTDR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MTDR is good value based on its PB Ratio (0.6x) compared to the US Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Matador Resources forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

74.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTDR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: MTDR is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MTDR's is expected to become profitable in the next 3 years.

Revenue vs Market: MTDR's revenue (8.4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: MTDR's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MTDR's Return on Equity is forecast to be low in 3 years time (0.1%).


Next Steps

  • Explore growth companies in the Energy industry.

Past Performance

How has Matador Resources performed over the past 5 years?

55.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTDR is currently unprofitable.

Growing Profit Margin: MTDR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTDR is unprofitable, but has reduced losses over the past 5 years at a rate of 55.5% per year.

Accelerating Growth: Unable to compare MTDR's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MTDR is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-38%).


Return on Equity

High ROE: MTDR has a negative Return on Equity (-6.79%), as it is currently unprofitable.


Next Steps

Financial Health

How is Matador Resources's financial position?


Financial Position Analysis

Short Term Liabilities: MTDR's short term assets ($227.3M) do not cover its short term liabilities ($344.8M).

Long Term Liabilities: MTDR's short term assets ($227.3M) do not cover its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: MTDR's debt to equity ratio (96%) is considered high.

Reducing Debt: MTDR's debt to equity ratio has increased from 41.1% to 96% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if MTDR has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if MTDR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Matador Resources's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MTDR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MTDR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MTDR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MTDR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MTDR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Joseph Foran (68 yo)

17.17yrs

Tenure

US$8,028,309

Compensation

Mr. Joseph Wm. Foran co-founded Matador Resources Company in July 2003 and has been Chairman, Chief Executive Officer and Secretary since July 2003 and served as its President from July 2003 to November 20 ...


CEO Compensation Analysis

Compensation vs Market: Joseph's total compensation ($USD8.03M) is above average for companies of similar size in the US market ($USD3.05M).

Compensation vs Earnings: Joseph's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Foran
Founder17.17yrsUS$8.03m3.47%
$ 34.8m
Matthew Hairford
President6.83yrsUS$4.18m0.32%
$ 3.2m
David Lancaster
Executive VP & CFO13.33yrsUS$3.84m0.41%
$ 4.1m
Craig Adams
Executive VP and COO of Land5.25yrsUS$3.51m0.13%
$ 1.3m
Billy Goodwin
Executive VP and COO of Drilling1.42yrsUS$3.51m0.12%
$ 1.2m
Rey Antonio Revoltar
Chief Executive Officerno datano datano data
Christopher Calvert
Senior Vice President of Operations0.92yrno datano data
Robert Macalik
Senior VP & Chief Accounting Officer5.17yrsno data0.057%
$ 570.8k
Bradley Robinson
Executive VP of Reservoir Engineering & CTO7.33yrsUS$689.75k0.28%
$ 2.8m
George Krug
Executive Vice President of Marketing & Midstream4.58yrsno data0.068%
$ 683.8k
Van Singleton
Executive Vice President of Land5.58yrsUS$1.12m0.11%
$ 1.1m
Matthew Spicer
Senior VP & GM of Midstream2.17yrsno datano data

5.3yrs

Average Tenure

59yo

Average Age

Experienced Management: MTDR's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Foran
Founder17.17yrsUS$8.03m3.47%
$ 34.8m
Matthew Clifton
Independent Director2.17yrsUS$205.57k0.033%
$ 331.2k
Kenneth Stewart
Independent Director3.58yrsUS$219.99k0.047%
$ 466.7k
Robert Baty
Deputy Lead Independent Director3.92yrsUS$257.16k0.046%
$ 460.0k
Timothy Parker
Lead Independent Director1.17yrsUS$267.66k0.045%
$ 452.9k
Reynald Baribault
Independent Director6.25yrsUS$329.49k0.10%
$ 1.0m
William Byerley
Independent Director4.25yrsUS$234.16k0.026%
$ 265.6k
Craig Burkert
Independent Director4.25yrsUS$204.99k0.090%
$ 901.4k
James Rolfe
Advisor to the Boardno datano datano data
Julia P. Rogers
Independent Director3.58yrsUS$218.99k0.043%
$ 431.3k
Rick Fenlaw
Advisor to the Boardno datano datano data
Monika Ehrman
Independent Director1yrUS$156.14k0.011%
$ 114.1k

3.8yrs

Average Tenure

64.5yo

Average Age

Experienced Board: MTDR's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MTDR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Matador Resources Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Matador Resources Company
  • Ticker: MTDR
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$1.002b
  • Shares outstanding: 116.84m
  • Website: https://www.matadorresources.com

Number of Employees


Location

  • Matador Resources Company
  • One Lincoln Centre
  • Suite 1500
  • Dallas
  • Texas
  • 75240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTDRNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2012

Biography

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates in two segm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/28 23:49
End of Day Share Price2020/09/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.