Is First Trust Energy AlphaDEX ETF a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 04 2024
0mins
Should l Buy MTDR?
Source: Benzinga
Overview of First Trust Energy AlphaDEX ETF: The First Trust Energy AlphaDEX ETF (FXN), launched in 2007, is a smart beta ETF that aims to outperform traditional market cap weighted indices by selecting stocks based on specific fundamental characteristics. It focuses heavily on the energy sector and has an expense ratio of 0.62%.
Performance and Alternatives: FXN has shown a year-to-date gain of 1.68% but is down 4.04% over the past year, indicating high risk with a beta of 1.61. Investors may also consider alternatives like Vanguard Energy ETF (VDE) and Energy Select Sector SPDR ETF (XLE), which offer lower expense ratios and potentially less risk.
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Analyst Views on MTDR
Wall Street analysts forecast MTDR stock price to rise
14 Analyst Rating
12 Buy
2 Hold
0 Sell
Strong Buy
Current: 53.530
Low
50.00
Averages
57.08
High
70.00
Current: 53.530
Low
50.00
Averages
57.08
High
70.00
About MTDR
Matador Resources Company is an independent energy company. The Company is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. It operates through two segments: exploration and production and midstream. The exploration and production segment are engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The midstream segment conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produce water disposal services to third parties.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Matador Resources Completes Cash Tender Offer for Senior Notes
- Tender Offer Results: Matador Resources announced the expiration of its cash tender offer on March 4, 2026, successfully acquiring approximately 84% of its 6.875% Senior Notes, indicating positive market response to its debt management strategy.
- Payment Schedule: The company plans to pay $1,019.75 for each $1,000 of notes on March 5, 2026, and will handle remaining guaranteed delivery notes on March 9, ensuring effective liquidity management.
- Debt Cancellation: All accepted notes will be canceled and retired, which will reduce the company's debt burden, thereby enhancing its financial flexibility and capacity for future investments.
- Redemption Plan: Matador intends to redeem all outstanding notes on April 15, 2026, further optimizing its capital structure and reducing future interest expenses, reflecting its commitment to financial health.
See More
Matador Resources Highlights 2025 Earnings Call
- Reserves and Production Growth: Matador achieved a 9% increase in reserves, a 2% rise in net undrilled lateral footage, and a 6% increase in average lateral length in 2025, optimizing resource development in the Delaware Basin through 3.4-mile lateral drilling technology, thereby enhancing the company's competitive position in a challenging market.
- Capital Expenditure Reduction: The company plans to cut capital expenditures by 11% (approximately $130 million) in 2026, prioritizing free cash flow over volume growth to maintain financial stability amid commodity price volatility, while continuing to hedge 50% of its oil exposure.
- Shareholder Return Growth: Matador's dividend has increased sixfold over the past four years, currently yielding about 3%, and the company plans to repurchase shares opportunistically when there is a dislocation between its stock price and the broader market, reflecting management's confidence in the company's value.
- Water Reuse and New Technologies: By 2025, 72% of the frac water will come from reused produced water, reducing capital expenditures per foot and lease operating expenses, while a planned Woodford test aims to evaluate incremental upside, further enhancing operational efficiency.
See More
Matador's Performance Exceeded Expectations, Yet 2026 Challenges Remain Significant
Market Outlook: Matador Resources (NYSE: MTDR) is facing challenges in 2026 due to weak oil prices and market sentiment, but remains a strong buy for long-term investors, with growth in unconventional oil production in West Texas and New Mexico.
Financial Performance: The company reported nearly $850 million in net revenue for Q4 2025, despite a 12.6% decline, outperforming consensus estimates and showing strong production volume and cash flow.
Dividend and Share Buybacks: Matador's dividend yield is about 3%, contributing significantly to 2026 earnings forecasts, with expectations for increased distributions and continued share buybacks.
Analyst Sentiment: Analysts maintain a moderate buy rating for MTDR, though some have lowered price targets, indicating potential market pressure, while the stock remains undervalued relative to its earnings potential.
See More
Matador Resources Prices $750 Million Senior Unsecured Notes Offering
- Bond Offering Size: Matador Resources Company has priced a $750 million offering of 6.000% senior unsecured notes at 100% of face value, expected to close on March 5, 2026, which will enhance the company's capital structure and provide financial flexibility.
- Clear Use of Proceeds: The net proceeds from this offering will be used to repurchase $500 million of its 6.875% senior notes due 2028 through a cash tender offer, which is expected to reduce the company's debt burden and optimize interest expenses.
- Compliance Statement: The new notes are not registered under the Securities Act of 1933 and may only be sold to qualified institutional buyers and non-U.S. persons, ensuring the legality of the issuance and mitigating potential legal risks.
- Market Outlook: Matador focuses on oil and gas resource development in the U.S., particularly in the Wolfcamp and Bone Spring plays in Texas and New Mexico, and the bond issuance will support its ongoing business expansion and market competitiveness.
See More
Matador Resources Announces $750 Million Note Placement
- Bond Issuance Plan: Matador Resources Company has announced a $750 million private placement of senior unsecured notes due in 2034, aimed at optimizing its capital structure and reducing financial costs through strategic financing.
- Debt Repurchase Strategy: The company plans to use the proceeds from the bond issuance to repurchase part or all of its $500 million outstanding 6.875% senior notes due in 2028, which is expected to alleviate future interest burdens through a cash tender offer.
- Tender Offer Details: The cash tender offer for the 2028 Notes commenced today, with participants set to receive $1,019.75 per $1,000 principal plus accrued interest, demonstrating the company's proactive approach to debt management.
- Financing Conditions: The successful execution of this tender offer is contingent upon Matador raising at least $500 million in gross proceeds from the 2034 note placement, reflecting the company's financing capabilities and strategic planning in the capital markets.
See More
Matador Resources Plans $750 Million Senior Notes Offering
- Bond Offering Plan: Matador Resources Company intends to offer $750 million of senior unsecured notes due 2034, subject to market conditions, to enhance its capital structure and support future financial flexibility.
- Debt Repurchase Strategy: The net proceeds from this offering will be used to repurchase $500 million of its 6.875% senior notes due 2028 through a cash tender offer, aimed at reducing the company's debt burden and optimizing capital costs.
- Credit Facility Repayment: Matador also plans to use a portion of the proceeds to repay outstanding borrowings under its credit facility, which will further improve the company's liquidity and enhance its financial stability.
- Compliance Statement: The new notes and related guarantees have not been registered under the Securities Act of 1933 and may only be sold to qualified institutional buyers and non-U.S. persons, ensuring the company operates within compliance frameworks during its financing activities.
See More
Matador Resources Completes Cash Tender Offer for Senior Notes
- Tender Offer Results: Matador Resources announced the expiration of its cash tender offer on March 4, 2026, successfully acquiring approximately 84% of its 6.875% Senior Notes, indicating positive market response to its debt management strategy.
- Payment Schedule: The company plans to pay $1,019.75 for each $1,000 of notes on March 5, 2026, and will handle remaining guaranteed delivery notes on March 9, ensuring effective liquidity management.
- Debt Cancellation: All accepted notes will be canceled and retired, which will reduce the company's debt burden, thereby enhancing its financial flexibility and capacity for future investments.
- Redemption Plan: Matador intends to redeem all outstanding notes on April 15, 2026, further optimizing its capital structure and reducing future interest expenses, reflecting its commitment to financial health.
See More
Matador Resources Highlights 2025 Earnings Call
- Reserves and Production Growth: Matador achieved a 9% increase in reserves, a 2% rise in net undrilled lateral footage, and a 6% increase in average lateral length in 2025, optimizing resource development in the Delaware Basin through 3.4-mile lateral drilling technology, thereby enhancing the company's competitive position in a challenging market.
- Capital Expenditure Reduction: The company plans to cut capital expenditures by 11% (approximately $130 million) in 2026, prioritizing free cash flow over volume growth to maintain financial stability amid commodity price volatility, while continuing to hedge 50% of its oil exposure.
- Shareholder Return Growth: Matador's dividend has increased sixfold over the past four years, currently yielding about 3%, and the company plans to repurchase shares opportunistically when there is a dislocation between its stock price and the broader market, reflecting management's confidence in the company's value.
- Water Reuse and New Technologies: By 2025, 72% of the frac water will come from reused produced water, reducing capital expenditures per foot and lease operating expenses, while a planned Woodford test aims to evaluate incremental upside, further enhancing operational efficiency.
See More
Matador's Performance Exceeded Expectations, Yet 2026 Challenges Remain Significant
Market Outlook: Matador Resources (NYSE: MTDR) is facing challenges in 2026 due to weak oil prices and market sentiment, but remains a strong buy for long-term investors, with growth in unconventional oil production in West Texas and New Mexico.
Financial Performance: The company reported nearly $850 million in net revenue for Q4 2025, despite a 12.6% decline, outperforming consensus estimates and showing strong production volume and cash flow.
Dividend and Share Buybacks: Matador's dividend yield is about 3%, contributing significantly to 2026 earnings forecasts, with expectations for increased distributions and continued share buybacks.
Analyst Sentiment: Analysts maintain a moderate buy rating for MTDR, though some have lowered price targets, indicating potential market pressure, while the stock remains undervalued relative to its earnings potential.
See More
Matador Resources Prices $750 Million Senior Unsecured Notes Offering
- Bond Offering Size: Matador Resources Company has priced a $750 million offering of 6.000% senior unsecured notes at 100% of face value, expected to close on March 5, 2026, which will enhance the company's capital structure and provide financial flexibility.
- Clear Use of Proceeds: The net proceeds from this offering will be used to repurchase $500 million of its 6.875% senior notes due 2028 through a cash tender offer, which is expected to reduce the company's debt burden and optimize interest expenses.
- Compliance Statement: The new notes are not registered under the Securities Act of 1933 and may only be sold to qualified institutional buyers and non-U.S. persons, ensuring the legality of the issuance and mitigating potential legal risks.
- Market Outlook: Matador focuses on oil and gas resource development in the U.S., particularly in the Wolfcamp and Bone Spring plays in Texas and New Mexico, and the bond issuance will support its ongoing business expansion and market competitiveness.
See More
Matador Resources Announces $750 Million Note Placement
- Bond Issuance Plan: Matador Resources Company has announced a $750 million private placement of senior unsecured notes due in 2034, aimed at optimizing its capital structure and reducing financial costs through strategic financing.
- Debt Repurchase Strategy: The company plans to use the proceeds from the bond issuance to repurchase part or all of its $500 million outstanding 6.875% senior notes due in 2028, which is expected to alleviate future interest burdens through a cash tender offer.
- Tender Offer Details: The cash tender offer for the 2028 Notes commenced today, with participants set to receive $1,019.75 per $1,000 principal plus accrued interest, demonstrating the company's proactive approach to debt management.
- Financing Conditions: The successful execution of this tender offer is contingent upon Matador raising at least $500 million in gross proceeds from the 2034 note placement, reflecting the company's financing capabilities and strategic planning in the capital markets.
See More
Matador Resources Plans $750 Million Senior Notes Offering
- Bond Offering Plan: Matador Resources Company intends to offer $750 million of senior unsecured notes due 2034, subject to market conditions, to enhance its capital structure and support future financial flexibility.
- Debt Repurchase Strategy: The net proceeds from this offering will be used to repurchase $500 million of its 6.875% senior notes due 2028 through a cash tender offer, aimed at reducing the company's debt burden and optimizing capital costs.
- Credit Facility Repayment: Matador also plans to use a portion of the proceeds to repay outstanding borrowings under its credit facility, which will further improve the company's liquidity and enhance its financial stability.
- Compliance Statement: The new notes and related guarantees have not been registered under the Securities Act of 1933 and may only be sold to qualified institutional buyers and non-U.S. persons, ensuring the company operates within compliance frameworks during its financing activities.
See More
