Our 12-month target price of $75, raised $6, reflects a 6.4x multiple of EV to projected '23 EBITDA, a discount to MTDR's historical forward average. We lift our '22 EPS by $0.34 to $10.98 and cut '23's by $0.29 to $9.64. We expect Q2 '22 EPS of $3.07 vs. Q2 '21 operating EPS of $1.02. In June '22, MTDR executed a deal to acquire the Lane Gathering and Process system (G&P) from Summit Midstream Partners LP for a cash sale price of $75M, adding ~60 mcf/d of cryogenic natural gas (NG) processing plant and 45 miles of NG gathering pipelines. In our view, the acquisition will add additional insulation for MTDR from basis risks, while enabling it to move its Delaware production to key markets and reduce logistical challenges. In addition, MTDR revealed that in Q3 '22, it would be raising its quarterly dividend to $0.10 from $0.05 after paying off its entire revolving debt in Q1 '22. We think this could enable MTDR to return excess cash to shareholders via variable dividends, if it so chose.
|-- Earnings Flash (ANY) SPHERE 3D Posts Q2 Revenue $...|
|-- Earnings Flash (AWX) AVALON HOLDINGS CORPORATION ...|
|-- Earnings Flash (IKT) INHIBIKASE THERAPEUTICS Repo...|
|Research Alert: CFRA Retains Hold Opinion On Shares ...|
|US Stocks Climb as Inflation Expectations Wane|