10 Deep Value Stocks to Buy Now

6. Matador Resources Company (NYSE:MTDR)

Fwd. P/E: 6.6

Dividend Yield: 2.8%

Number of Hedge Fund Holders: 38

Matador Resources Company (NYSE:MTDR) is an energy firm focused on oil and natural gas exploration, development, and production in the U.S. with an emphasis on oil and natural gas shale and other unconventional plays. Its primary operations are in the Delaware Basin, with additional assets in the Eagle Ford and Haynesville Shale plays. The company also provides midstream services, including natural gas processing, oil transportation, and water management.

For FY 2024, the company reported 75% YoY increase in adjusted free cash flow which came in at $807 with adjusted EBITDA of over $2.3 billion (+24% YoY). Its production also increased over 30% with around 200,000 barrels of oil and natural gas equivalent (BOE) produced per day at end of 2024. The company projects adjusted free cash flow to reach $1 billion in 2025. The company benefits from its integrated midstream assets, which provide cost advantages, and its efficient production and low-cost structure provide resilience in uncertain oil market conditions.

The company’s disciplined capital allocation and operational efficiencies have enabled it to generate strong free cash flow, supporting shareholder returns through dividends and share buybacks. The company has increased its dividend six times in the last four years with the current dividend yield standing at around 3%.

A Raymond James analyst maintained an Outperform rating on the stock but cut the price target from $77 to $67 due to weaker oil prices. The analyst also noted that the company’s 2025 production, oil output, and spending plans matched earlier expectations.