Top Shale Firms Matador Resources, Continental Resources, Pioneer Beat

Shale earnings continued late Wednesday, with Matador Resources, Continental Resources and Pioneer Natural Resources all topping estimates as crude prices rallied.

The post Top Shale Firms Matador Resources, Continental Resources, Pioneer Beat appeared first on Investor's Business Daily.

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Shale earnings continued late Wednesday, with Matador Resources (MTDR), Continental Resources (CLR) and Pioneer Natural Resources (PXD) all topping estimates as crude prices rallied.

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Matador Resources

Estimates: EPS to jump 88.2% to 32 cents with revenue climbing 25.2% to $169 million.

Results: EPS of 36 cents on revenue of $191.2 million. Average production jumped 37% year over year to 45,273 barrels of oil equivalent per day. Matador has incurred capital expenditures of approximately $30 million since January 1, 2018 to acquire these leasehold and mineral interests.

Outlook: Average daily oil production and its average daily natural gas production will increase approximately 3%-4% in Q2 vs. Q1.

"We continue to be pleased with the consistently strong well results our asset teams are achieving throughout our acreage position in the Delaware Basin and are especially excited by the initial results from our first three wells in the Antelope Ridge asset area, which confirm our previous expectations that Antelope Ridge would soon become another key operating area for Matador in the northern Delaware Basin," Chairman and CEO Joseph Foran said in a statement.

Stock: Matador climbed 1.3% late to 33.00. Shares closed down 0.2% at 32.59, approaching a 34.06 buy point from a cup base on the stock market today.

Continental Resources

Estimates: Earnings of 60 cents per share vs. 2 cents per share in the year-ago-quarter. Revenue up 57.5% to $1.08 billion.

Results: EPS of 68 cents on revenue of $1.14 billion. Average production jumped 34.5% to 287,410 barrels of oil equivalent per day. Total production out of the Bakken play averaged 161,356 bpd, up 48% year-over-year. Updated well designs and improved drilling performance have cut completed well costs in the Woodford oil window in Oklahoma by $1 million to $11.7 million per well.

Outlook: Continental plans to continuing operating six rigs in the Bakken through the end of the year.

"We are clearly seeing a structural uplift in well performance across the Bakken field," President Jack Stark said in the earnings release.

Stock: Continental fell 1.4% late. Shares ended 0.3% higher at 65.91 and are extended well above buy range.

Pioneer Natural Resources

Estimates: EPS of $1.51 vs. 25 cents a year ago with revenue up 22.8% to $1.802 billion.

Results: EPS of $1.66 on revenue of $2.15 billion. Total average production rose 25% to 311,845 barrels of oil equivalent per day.

Outlook: Q2 production of 312,000-322,000 BOE per day. The 2018 capital budget of $2.9 billion is expected to be increased due to additional Version 3.0+ completions, late-year rig additions preparing for 2019 and inflation. Permian Basin growth for 2018 is tracking toward the high end of its 19%-24% forecast. Based on the success of the higher intensity completions to date, the company is evaluating adding more Version 3.0+ completions in the second half of 2018.

"Looking forward, our deep, low-risk inventory of high-margin Permian Basin wells allows us to deliver increasing cash flow and corporate returns," CEO Timothy Dove said in a statement, noting the company's transition to a Permian "pure play" is progressing. "Our balance sheet remains among the strongest in the industry, while our focus on capital discipline supports an economic, steady long-term growth profile. We believe our high Permian 'return on capital' will enhance shareholder value by delivering increasing 'return of capital' to investors."

Stock: Pioneer dipped 0.1% late after finishing 1.3% lower at 196.33, still in buy range after breaking out of a cup with handle base last week.

The results follow earnings and revenue beats from Viper Energy Partners (VNOM), Anadarko Petroleum (APC), Concho Resources (CXO) and Noble Energy (NBL) Tuesday continuing a busy week for shale earnings.

Earlier Wednesday, the Energy Information Administration reported that U.S. crude inventories swelled by 6.218 million barrels while gasoline supplies increased by 1.171 million barrels. Production rose to 10.619 million barrels per day, up from 10.586 million bpd a week ago.

Analysts polled by S&P Global Platts had expected a 1.8 million-barrel buildup in crude stockpiles with a 1 million-barrel decline in gasoline supplies.

The American Petroleum Institute, an industry group, late Tuesday said weekly crude stockpiles rose by 3.427 million barrels with  gasoline stockpiles up by 1.6 million barrels.

U.S crude rose 1% to settle at $67.93 a barrel, and Brent edged up 0.4% to $73.44 per barrel, as the IMF threatened to expel Venezuela, which is suffering from a historic economic downturn and could need an IMF bailout to stay afloat.

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