Yahoo Finance Matador Resources Co (MTDR) (Q1 2024) Earnings Call Transcript Highlights: Strategic Growth and ...
Revenue: Not specifically mentioned.
Net Income: Not specifically mentioned.
Earnings Per Share (EPS): Not specifically mentioned.
Free Cash Flow: Not specifically mentioned.
Gross Margin: Not specifically mentioned.
Market Capitalization: Not specifically mentioned.
Credit Agreement: Amended to extend to 2029, increased committed amount from $1.325 billion to $1.5 billion.
Operational Wells: Turning on 43 gross operated wells and 36.2 net wells this quarter.
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: How do you see the current market opportunities in terms of price and quality for M&A, and what is your financial capacity for further acquisitions? A: Joseph Wm. Foran, CEO & Chairman of the Board, Matador Resources Company, explained that the company is prepared for both organic growth and acquisitions, depending on market conditions. They have increased their credit facility to $1.5 billion, providing substantial financial capacity for acquisitions. Additionally, the company has recently refinanced and raised capital through stock and bond offerings, enhancing their financial flexibility for future growth opportunities.
Q: Can you discuss the impact of current Waha gas prices on your operations and your strategy to manage gas sales? A: Gregg Krug, Head of Marketing and Midstream, and Joseph Wm. Foran discussed the company's diversified approach to selling gas, which includes various hedging and transport strategies to mitigate the impact of negative pricing at Waha. They emphasized the company's robust midstream operations, which ensure reliable gas flow and market access, thereby minimizing risks associated with fluctuating gas prices.
Q: What are your plans and budget for bolt-on acquisitions this year? A: Joseph Wm. Foran noted that while it's challenging to predict exact figures for bolt-on acquisitions, the company views these opportunities as supplemental to their primary growth through drilling. He highlighted that financial arrangements like the Triple Crown of RBL, stock offerings, and bond offerings provide flexibility to support both organic and inorganic growth strategies.
Q: How do you manage the bundling versus debundling of oilfield services to optimize costs and efficiency? A: Christopher Calvert, EVP, COO, explained that Matador Resources benefits from bundling services like drilling and pressure pumping through a single provider, which enhances efficiency and cost-effectiveness. However, they also value optionality and occasionally choose different providers for services like sand supply to ensure they are optimizing costs and service quality.
Q: What is your outlook on CapEx for the upcoming quarters, and how does it relate to your operational strategy? A: Brian J. Willey, CFO & Executive VP, indicated that while CapEx guidance remains unchanged despite increased production guidance, the company continuously evaluates its spending in relation to commodity price movements and operational achievements. They aim to maintain financial discipline while ensuring sufficient investment to support growth and operational efficiency.
Q: Given the perceived undervaluation of Matador's midstream assets in the stock market, what are your considerations for unlocking value? A: Joseph Wm. Foran expressed confidence in the intrinsic value of Matador's midstream operations and their contribution to the company's overall business stability and growth. He is open to considering serious proposals for these assets but emphasized the strategic advantage they currently provide in supporting Matador's upstream operations and environmental compliance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
