Matador Resources Company

Valuation Analysis

About the Company

Matador Resources Company, an independent energy company, engages in the acquisition, exploration, development, and production of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Haynesville shale and Cotton Valley plays in Northwest Louisiana. In addition, the company conducts midstream operations in support of its exploration, development, and production operations. Further, it provides natural gas processing and oil transportation services; and oil, natural gas, and produced water gathering services, as well as produced water disposal services to third

Matador Resources Company Stock at a Glance

Matador Resources Company (MTDR) is currently trading at $54.05 with a market capitalization of $6.7B. The trailing P/E ratio stands at 13.93x, with a forward P/E of 6.07x. The 52-week range spans from $37.14 to $66.84; the current price is 19.1% below the yearly high. Year-over-year revenue growth stands at -6.4%. The net profit margin stands at 13.45%.

💰 Dividend

Matador Resources Company pays an annual dividend of $1.50 per share, representing a yield of 2.78%. The payout ratio stands at 35.44%.

📊 Analyst Rating

18 analysts rate Matador Resources Company (MTDR) on consensus: Buy. The average price target is $72.67, implying +34.44% from the current price. Analyst price targets range from $62.00 to $97.00.

Matador Resources Company: The Investment Case in Detail

Matador Resources Company (MTDR) operates in the Energy — specifically Oil & Gas E&P — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

With a gross margin near 79.66%, the company sits in the top tier of its industry — these are the kinds of structural margins that protect earnings during downturns. Wall Street consensus sits at Buy with an average price target implying roughly 34.44% upside from current levels — analyst sentiment is firmly constructive. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue is contracting at -6.4% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Short interest sits at 10.01% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

With a PEG ratio of 0.83, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 5.04x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

What to Watch Next

• The forward P/E of 6.07x is meaningfully below the trailing 13.93x — analysts expect earnings to step up; the next earnings release is the test.
• The analyst consensus price target implies 34.44% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price shows short-term weakness (below 50d MA) but is still in a longer-term uptrend (above 200d MA).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (10.01%).

Trading Data

💵 Dividend Info

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