Matador Resources Company (MTDR)

[Timothy Smith]

The new year is shaping up to be another blockbuster for Matador Resources. The company raised its capex by 19% over 2013 to $440 million, and expects oil production to rise by 44% to 8,080 bopd and gas to rise by 14% to 39 MMcfd. South Texas, largely Eagle Ford spending will account for over 72% of total spend at $318.4 million, down from ~78% of total 2013 spend but up 11% in dollar terms from last year’s $288 million. Meanwhile the Bone Spring and Wolfcamp Permian will receive 25% of total at $108.6 million, up an indeterminate amount from Matador’s most recent capex update.

Out of the $440 million capex, the company will drill 89 gross (58.7 net) wells, with 80% drilled in the Eagle Ford and 13% planned for the Permian. D&C will consume nearly 90% of total spend, with the remainder going to land, seismic, facilities and infrastructure.