04:57 PM EDT, 10/11/2024 (MT Newswires) -- (Corrects fourth paragraph to show RBC maintained its price target.)

Matador Resources ( MTDR ) investors are expected to focus on the oil and natural gas company's appetite for mergers and acquisitions after a recent asset sale, RBC Capital Markets said Thursday in a report.

Matador "remains vigilant in its M&A strategy as it continues to evaluate ground game and bolt-on acquisitions," RBC said. Proceeds of as much as $160 million from the sale of a stake in Pinon Midstream are expected in Q4.

RBC cuts its Q3 estimate for earnings per share by Matador to $1.75 from $1.84 on lower gas prices and higher lease operating expenses. Production may be toward the high end of proforma guidance, RBC said.

RBC kept its outperform rating on Matador and maintained the price target at $70. Company results from Q3 are expected Oct. 22.

"Shares will outperform peers over the next 12 months" on the back of a large presence in the Permian Basis, RBC said.

Matador shares were little changed in after-hours trading after gaining 1% in the regular session.

Price: 54.53, Change: -0.22, Percent Change: -0.40