Nomura Small Cap Value Fund on Matador Resources Company
Thesis
Matador remains a portfolio holding despite the sharp second-quarter decline in oil prices. The fund views the company as owning high-quality acreage in the Delaware portion of the Permian Basin. That basin is described as the most prolific shale basin in the US and one of the few that is still growing, supporting the long-term quality of the asset base.
“Matador remains in the portfolio as it has high-quality acreage in the Delaware portion of the Permian Basin”
Key risks
- Lower oil prices following reduced geopolitical risk
- Commodity-price sensitivity