| Matador Resources (MTDR) Shares Fall on 7M Stock Offering - Analyst Blog | |
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Upstream energy firm Matador Resources Company MTDR announced a public offering of 7 million of its common stock. Shares of Matador fell 7% in the after-hours trading session following the announcement.
The company added that it intends to utilize the funds from this offering to reduce borrowing under its revolving credit facility. The remaining proceeds would be used to finance the company’s capital expenses, which include addition of rigs and acreage acquisitions, and for other general working capital needs. Matador may add a third drilling rig in the Permian Basin or acquire more properties in the Permian, Eagle Ford and Haynesville shales.
The equity offering follows a debt offering announced by Matador last week. The company had offered senior notes worth $400 million, carrying an interest rate of 6.875%, due in 2023.
In its latest operational update, Matador had announced that it has attained record quarterly production of about 2.1 million barrels of oil equivalent for the first quarter of 2015. Production volumes nearly doubled from the year-ago quarter and also mark an increase of about 10% sequentially. The company attributed the strong result to new well completions in both the Delaware Basin and the Eagle Ford Shale as well as completion of certain wells in the Eagle Ford region earlier.
However, the earnings picture does not look too good for Matador. Negative estimate revisions by brokerage firms for the first quarter as well as full-year 2015 suggest bearishness ahead. A weak crude pricing environment is likely to hamper earnings for the firm.
Currently, Matador carries a Zacks Rank #4 (Sell).
Better-ranked players from the industry include Stone Energy Corp. SGY, Atlas Resource Partners, L.P. ARP and Callon Petroleum Company CPE. All the three stocks hold a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report STONE ENERGY CP (SGY): Free Stock Analysis Report ATLAS RES PTNRS (ARP): Free Stock Analysis Report MATADOR RESOURC (MTDR): Free Stock Analysis Report CALLON PETE-DEL (CPE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Callon Petroleum Company
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CODE : CPE |
ISIN : US13123X1028 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Callon Petroleum is a oil development stage company based in Canada. Callon Petroleum is listed in Germany and in United States of America. Its market capitalisation is US$ 7.5 billions as of today (€ 6.6 billions). Its stock quote reached its lowest recent point on March 13, 2020 at US$ 0.38, and its highest recent level on October 12, 2023 at US$ 37.23. Callon Petroleum has 201 939 430 shares outstanding. |