RBC Capital maintains outperform rating on Matador Resources stock

Published 06/03/2025, 01:34 PM
RBC Capital maintains outperform rating on Matador Resources stock

On Tuesday, RBC Capital analysts reaffirmed their Outperform rating on Matador Resources (NYSE:MTDR) Company stock (NYSE: MTDR) and maintained a price target of $62.00. The announcement followed the company’s presentation at the RBC Global Energy, Power & Infrastructure Conference.

Matador Resources’ management team, including Executive Vice President and Chief Financial Officer Brian Willey, Executive Vice President and Chief Operating Officer Chris Calvert, and other key executives, participated in the conference. The team highlighted the strategic advantages and flow assurance provided by the company’s midstream asset. The company’s strong financial health is reflected in its impressive 21.7% revenue growth and attractive P/E ratio of 6.17.

RBC Capital analysts noted that Matador Resources is exploring options to maximize the value of its midstream asset, including the possibility of an initial public offering (IPO). Despite fluctuations in oil prices, the company remains optimistic about its business prospects.

The management has defended the company’s shares through insider buying and stock buybacks, reinforcing their confidence in Matador Resources’ future. The analysts’ reiteration of the Outperform rating reflects their positive outlook on the company’s strategic positioning and growth potential.

In other recent news, Matador Resources Company reported its first-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $1.99, compared to the forecasted $1.84. However, the company fell short on revenue, posting $909.9 million against a forecast of $959.65 million. Fitch Ratings upgraded Matador Resources’ Long-Term Issuer Default Ratings from ’BB-’ to ’BB’, citing successful debt reduction initiatives and positive free cash flow generation. BofA Securities initiated coverage on Matador Resources with a Buy rating and a $56 price target, highlighting the company’s diverse growth strategies and competitive breakeven costs. Matador’s management team was also noted for its ability to navigate the challenging macroeconomic environment. Despite the mixed earnings results, Matador anticipates a record second quarter for oil production and projects a 17% increase in oil production by the end of the year. Additionally, the company has authorized a $400 million share buyback and is exploring a potential midstream IPO. These developments reflect ongoing strategic efforts to enhance financial flexibility and shareholder value.

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