Matador’s Five-Year Margins Anchor StockStory’s Positive View

Matador Resources fell 14% over six months, while the S&P 500 gained 16.9%, according to StockStory. The publisher nevertheless pointed to the oil and gas producer’s revenue growth and margins as reasons for its positive assessment.

Revenue grew at an annualized 28.5% rate over five years, StockStory said, outpacing the average for energy upstream and integrated energy companies. Matador operates primarily in the Delaware Basin, producing oil and natural gas in New Mexico and Texas.

StockStory said Matador averaged an 82.3% gross margin over the same period. It argued that this reflects stronger unit economics and may allow the company to remain profitable at lower commodity prices than peers with weaker gross margins.

The publisher also highlighted free cash flow margin, which averaged 24.8% over five years and ranked among the best in its sector. StockStory said the cash generation gives the company room to reinvest, return capital and compete.

At the time of the article, shares were quoted at $52.49 and valued at 6.1 times forward earnings.