Matador Resources (MTDR) investors are expected to focus on the oil and natural gas company's appetite for mergers and acquisitions after a recent asset sale, RBC Capital Markets said Thursday in a report.
Matador "remains vigilant in its M&A strategy as it continues to evaluate ground game and bolt-on acquisitions," RBC said. Proceeds of as much as $160 million from the sale of a stake in Pinon Midstream are expected in Q4.
RBC cuts its Q3 estimate for earnings per share by Matador to $1.75 from $1.84 on lower gas prices and higher lease operating expenses. Production may be toward the high end of proforma guidance, RBC said.
RBC reduced its price target on Matador to $70 from $75 and maintained the outperform rating. Company results from Q3 are expected Oct. 22.
"Shares will outperform peers over the next 12 months" on the back of a large presence in the Permian Basis, RBC said.
Matador shares were little changed in after-hours trading after gaining 1% in the regular session.
Price: 54.75, Change: +0.02, Percent Change: +0.04
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.