The Energy Report

Source: Streetwise Reports 03/01/2020 Matador Resources’ Q4/19 performance and its 2020 guidance are reviewed in a Raymond James report. In a Feb. 25 research note, Raymond James analyst John Freeman reported that Matador Resources Co. (MTDR:NYSE) ended 2019 with a beat on both volumes and EBITDA in Q4. Freeman relayed that the Dallas-based company’s quarterly volumes exceeded the Street’s expectation by 7%, driven by shorter-than-expected shut-in times, improved well performance and accelerated turned in lines (TILs). Whereas the early TILs increased capex, 2% above consensus’ forecast, the outperformance in volumes more than made up for it. EBITDA in Q4/19 surpassed the Street’s forecast as well, by 12%. Freeman reviewed expectations for Matador in 2020. The energy company intends to maintain, through the year, the six rigs it has working now in the Delaware Basin. It intends to complete 69 gross, or 58 net, operated wells and participate in a significant number of non-operated wells. Matador’s guidance for 2020 production is 75,500 barrels of oil equivalent per day, higher than that of 2019 and 3% higher than the Street’s projection. Exit rate guidance is “massive,” 87,000 barrels of oil equivalent per day, 9% above consensus’ forecast, the analyst noted. These achievements should more than offset expected capex during the year of $815 million, which is 2% higher than consensus’ projection. “The extremely strong Q4/20 run rate (oil volumes up 22% over Q4/19) should set Matador up with strong momentum into 2021,” commented Freeman. As for the spending gap, Freeman indicated that … Continue reading →

Source: The Critical Investor for Streetwise Reports 02/29/2020 In this interview, the Critical Investor and the company CEO delve into the “impressive” capital raise and what it means for the junior’s future. Building demonstration plant at Lanxess Project site After Standard Lithium Ltd. (SLL:TSX.V; STLHF:OTCQX) managed to arrange a CA$5 million (CA$5M; US$3.75M) convertible loan and guarantee agreement with Lanxess AG (LXS:DE) on Oct. 30, 2019, management hasn’t been sitting on its hands. On Feb. 26, 2020, the company announced that an ongoing capital raise, intended to raise CA$6M, was closed at no less then CA$12.1M. I found this to be very impressive, as sentiment for lithium developers has recovered slightly on the back of Tesla’s unexpected positive results and the following run-up of the share price of the car and battery manufacturer, but is still neutral to negative. The proceedings will be used for the ongoing development of the mentioned demonstration plant, which is capital intensive. All presented tables are my own material, unless stated otherwise. All pictures are company material, unless stated otherwise. All currencies are in U.S. dollars, unless stated otherwise. The original announcement on Jan. 30, 2020, mentioned a non-brokered private placement of up to 8 million special warrants, at a price of CA$0.75 per special warrant, for gross proceeds of up to CA$6M. On a side note: The financing being non-brokered is already impressive in itself, as Standard Lithium didn’t have to tap the brokers who usually dominate these financings. Each special warrant or unit … Continue reading →