CTVA - Matador Resources Callon Petroleum upped at Wells Fargo as 'tip of the spear'
Wells Fargo upgrades Matador Resources (MTDR -3.7%) to Overweight from Equal Weight with a $53 price target, and raises Callon Petroleum (CPE -6.4%) to Equal Weight from Underweight with a $75 target, seeing energy entering a new "super cycle" in 2022 with U.S. E&Ps as the "tip of the spear." Wells says Matador has continued to accelerate debt reduction, and that momentum into 2022 from late 2021 drilling activity should provide strong free cash flow, which the firm estimates is trading at a discount. Meanwhile, Callon's strong execution in 2021 has set the stage for debt reduction in 2022, even though the company trails peers on cash returns, Wells says. The firm also elevates Coterra Energy (CTRA -3.9%) to a Top Pick alongside Devon Energy (DVN -5.2%) and Marathon Oil (MRO -4.5%). Oil and gas related stocks post broad losses today as crude oil prices fall on worries over potential COVID-19
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Matador Resources, Callon Petroleum upped at Wells Fargo as 'tip of the spear'