MTDR - Matador Resources: Downgraded To Sell; 50% Downside Possible
Summary
- Matador Resources' exponential growth trajectory could be crushed by less supportive oil and gas prices, which might compress the firm's earnings per share.
- Yes, the company's debt structure has improved. However, acquisitions and expansion projects will be challenging during a period embodied by unfavorable capital structures and recession risk.
- Our residual income model suggests Matador Resources could lose approximately 50% of its market capitalization in the coming years. However, other factors need to be considered.
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Matador Resources: Downgraded To Sell; 50% Downside Possible