The Zacks Analyst Blog Highlights: Matador, Continental Resources, Pioneer Natural, Diamondback And Concho
Zacks Investment Research | Mar 04, 2019 09:48PM ET
For Immediate Release
Chicago, IL –March 5, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Matador Resources Company (NYSE:MTDR) , Continental Resources, Inc. (NYSE:CLR) , Pioneer Natural Resources Company (NYSE:PXD) , Diamondback Energy, Inc. (NASDAQ:FANG) and Concho Resources Inc. (NYSE:CXO) .
Here are highlights from Monday’s Analyst Blog:
Shale Oil Q4 Earnings Falter on Commodity Price Meltdown
With the fourth-quarter earnings season over, it’s time to sit back and analyze the bevy of shale bigwigs just put in their reports. Most of them reported profits that improved in the fourth quarter compared to the same period a year before, aided along by strong production growth. At the same time, a number of them missed the Zacks Consensus Estimate on weaker commodity prices.
In this writeup, we dive into the results from Matador Resources Company, Continental Resources, Inc., Pioneer Natural Resources Company, Diamondback Energy, Inc. and Concho Resources Inc.
MTDR
Matador Resources is an independent oil and natural gas exploration and production company with focus on shale plays in the Eagle Ford and Permian basins.
Earnings & Revenue:The company reported fourth-quarter adjusted earnings per share of 37 cents, ahead of the Zacks Consensus Estimate of 27 cents and the year-ago profit of 25 cents. The outperformances were driven by strong production and natural gas pricing gains.
Total revenues at the Dallas, TX-based energy explorer was $289.9 million, up around 88% from a year ago. Sales also beat the Zacks Consensus Estimate of $201 million.
Production:The production of oil and natural gas averaged a record 55,536 oil-equivalent barrels per day (BOE/d) (60% oil), up 27% from last year. Results were also above the Zacks Consensus Estimate of 54,843 BOE/d.
Realized Prices: Realized oil prices were slightly lower than expected at $49.09 per barrel. Matador Resources sold natural gas at $3.47 per thousand cubic feet (Mcf) as against our projection of $3.30 per Mcf.
Guidance:Matador Resources expects its average daily production to increase 3-4% sequentially in the first quarter.
Share Price Impact: The company's shares were largely unmoved as the all-round quarterly beat was offset by the lower oil output projection and a likely 2019 pending in excess of cash flow.
CLR
Continental Resources is an independent oil and gas company with principal operations in the STACK & SCOOP plays in central Oklahoma and the Bakken/Three Forks formations of North Dakota and Montana.
Earnings & Revenue: The company reported fourth-quarter adjusted earnings per share of 54 cents, lagging the Zacks Consensus Estimate of 59 cents due to lower oil equivalent price realizations and higher operating expenses. However, Continental Resources’ bottom line improved from the year-ago quarter's earnings of 41 cents per share, driven by higher production from the North Dakota Bakken as well as SCOOP and STACK regions.
Total revenues at the Oklahoma City, OK-based energy explorer was $1.1 billion, up 10% from a year ago and missed the Zacks Consensus Estimate by 1.5%.
Production:The production of oil and natural gas averaged 324,001 BOE/d (58% oil), up 13% from last year. Overall volumes were also above the Zacks Consensus Estimate.
Realized Prices: At $50.06 per barrel, realized oil prices fell well short of the Zacks Consensus Estimate of $62. Continental Resources sold natural gas at $3.26 per Mcf as against our projection of $3.37 per Mcf.
Guidance:Continental Resources expects its 2019 average daily production to be roughly 328,000 BOE/d.
Share Price Impact: The company's shares plunged more than 5% following the earnings disappointment with the main culprits being the soft commodity price realizations and the lofty fourth quarter capital expenditure of $742.6 million.
PXD
Pioneer Natural Resources is a large independent oil and gas exploration and production company with focus on the Spraberry field in the Permian Basin and the Eagle Ford Shale in South Texas.
Earnings & Revenue:The Zacks Rank #3 (Hold) company reported fourth-quarter adjusted earnings per share of $1.18, lower than the Zacks Consensus Estimate of $1.40 and lagged the year-ago profit of $1.22, primarily due to lower realized prices from oil and natural gas.
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