NEW YORK (TheStreet) -- Shares of Matador Resources were falling 5.6% to $27.71 on heavy trading volume Thursday after the oil company priced the 7 million shares of common stock in its public offering. Matador Resources priced the 7 million shares in its public offering for gross proceeds of about $189 million. The oil company plans to use some of the net proceeds from the offering to repay outstanding borrowings under its revolving credit facility and for general corporate purposes. The company will also use part of the proceeds to fund a portion of its capital expenditures, including the possible addition of a third drilling rig in the Permian Basin and targeted acquisitions of additional acreage in the Permian Basin, Eagle Ford shale, and Haynesville shale. The offering is expected to close on April 21. About 1.8 million shares of Matador Resources were traded by 10:46 a.m. Thursday, above the company's average trading volume of about 983,000 shares a day. TheStreet Ratings team rates MATADOR RESOURCES CO as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: "We rate MATADOR RESOURCES CO (MTDR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year." Highlights from the analysis by TheStreet Ratings Team goes as follows: MTDR's very impressive revenue growth greatly exceeded the industry average of 19.6%. Since the same quarter one year prior, revenues leaped by 124.2%. Growth in the company's revenue appears to have helped boost the earnings per share. The gross profit margin for MATADOR RESOURCES CO is currently very high, coming in at 83.08%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.24% significantly outperformed against the industry average. The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.33 is very weak and demonstrates a lack of ability to pay short-term obligations. In its most recent trading session, MTDR has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, MATADOR RESOURCES CO's return on equity is significantly below that of the industry average and is below that of the S&P 500. You can view the full analysis from the report here: MTDR Ratings Report Must Read: Warren Buffett's Top 25 Stocks for 2015
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