Why Matador Energy Stock Sank as Much as 13.5% in the First Hour of Trading Today
Shares of U.S. exploration and production (E&P) company Matador Energy (NYSE: MTDR) dropped sharply in early trading on Wednesday. By 10:30 a.m. EDT, they had lost as much as 13.5% of their value following the energy company's after-hours earnings release on Tuesday, even though the numbers weren't all bad.
On the positive side of the ledger, the E&P company was able to beat its earlier production guidance by 5.5%. Year-over-year production, meanwhile, was up 5%. This was largely related to the completion of a key development project that has been performing better than originally expected. Add in Matador's success in containing costs, and the company is confident that it can become cash flow positive by the end of 2020. This is all pretty positive news.
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Source Fool.com
