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March 2014 Investor Presentation – Matador Resources Company

Matador Resources Company · Mar 20, 2014 · 56 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. March 2014 Investor Presentation – Matador Resources Company – slide 1
    Investor Presentation March 2014 NYSE: MTDR
  2. March 2014 Investor Presentation – Matador Resources Company – slide 2
    Company Summary
  3. March 2014 Investor Presentation – Matador Resources Company – slide 3
    Matador History Predecessor Entities Foran Oil & Matador Petroleum Founded by Joe Foran in 1983 most participants are still shareholders today. Foran Oil funded with 270,000 in contributed capital from 17 friends and family…
  4. March 2014 Investor Presentation – Matador Resources Company – slide 4
    Company Overview Completed IPO of 14,883,334 shares (12,209,167 primary) including overallotment at 12.00/share in March 2012 and Follow-on Offering of 9,775,000 shares including overallotment at 15.25/share in September 2013…
  5. March 2014 Investor Presentation – Matador Resources Company – slide 5
    Matador Execution History IPO (February 7, 2012) vs. Today What we said at IPO Metric At IPO(1) What weve done Today(7) 7.1 MBOE/d 12.0 MBOE/d 16x growth in Production 414 Bbl/d of oil 6,612 Bbl/d of oil oil production 6% oil 55%…
  6. March 2014 Investor Presentation – Matador Resources Company – slide 6
    Matadors Continued Growth 30 Year History TOTAL OIL AND (1) (1) (1)(2) TOTAL OIL PRODUCTION NATURAL GAS REVENUES ADJUSTED EBITDA 2,950 250.0 340.0 269.0 191.8 2,133 Thousand Bbl in millions in millions 115.9…
  7. March 2014 Investor Presentation – Matador Resources Company – slide 7
    2013 was an Excellent Year for Matador Technical improvements in all aspects of our Eagle Ford operations resulting in better wells for less money Drilling times and costs per well decreased significantly Improved hydraulic fracture…
  8. March 2014 Investor Presentation – Matador Resources Company – slide 8
    Keys to Matadors Success People We have a strong, committed technical and financial team in place, and we continue to make additions and improvements to our staff and our capabilities Board and Special Advisor additions have…
  9. March 2014 Investor Presentation – Matador Resources Company – slide 9
    Matador Resources Company Overview Market Capitalization(1) 1.5 billion Average Daily Production(2) 11,740 BOE/d Oil (% total) 5,843 Bbl/d (50%) Natural Gas (% total) 35.4 MMcf/d (50%) Proved Reserves 12/31/13 51.7 million BOE %…
  10. March 2014 Investor Presentation – Matador Resources Company – slide 10
    Eagle Ford South Texas
  11. March 2014 Investor Presentation – Matador Resources Company – slide 11
    2014 South Texas Plan Details 2014 projected capital expenditures of 318 million or 72% of total 2-rig program with almost all of the 2014 South Texas capital budget directed to the Eagle Ford shale Drill and/or complete or…
  12. March 2014 Investor Presentation – Matador Resources Company – slide 12
    Eagle Ford Overview Operations Summary 73 gross (63.3 net) wells(1) currently producing from the Eagle Ford Proved Reserves 12/31/2013 20.2 million BOE An increase in oil production from 330 Bbl/d(2) % Proved Developed 55% to 5,700…
  13. March 2014 Investor Presentation – Matador Resources Company – slide 13
    Eagle Ford Well Costs and Estimated Ultimate Recovery (EUR) EAGLE FORD ACREAGE TOTALS EAGLE FORD EAST Nickel Ranch 38,985 gross / 27,147 net acres Measured Depth: 17,000 18,000 Hennig Well Costs: 8-10 million EUR: 600-1,000 MBOE…
  14. March 2014 Investor Presentation – Matador Resources Company – slide 14
    Operational Improvements (Normalized) Overview Eagle Ford Drilling Costs / Drilled Foot(1) West Central East Over the past two years, made significant progress and increased 271 258 260 knowledge of how to drill, complete 242 and…
  15. March 2014 Investor Presentation – Matador Resources Company – slide 15
    Improvement in Drilling Efficiency Moving Towards Batch Drilling Single Well Drilling PAD Drilling BATCH Drilling EXPLORATION 2010 1/3 RIG 60-70% increase in 2011 2/3 RIG Rig Efficiency from 2012 2014E 2012 2 RIGS 2013 1 1/2…
  16. March 2014 Investor Presentation – Matador Resources Company – slide 16
    Artificial Lift Flowing Rod Pumping Gas Lifting Benefits of Gas Lift Accelerates production Accelerated Production Reduces LOE 300 Bbl/d Lower maintenance Helps wells recover faster from offset fracs 100 Bbl/d Time 17
  17. March 2014 Investor Presentation – Matador Resources Company – slide 17
    Evolution of Matador Eagle Ford Frac Design Gen 2 Gen 3 Gen 4 Gen 5 Gen 6 650 Mlbs 515 Mlbs Proppant 500 Mlbs 405 Mlbs Pumped(1) 375 Mlbs Fluid Volume 11,750 Bbl 11,750 Bbl Pumped 7,825 Bbl 9,550 Bbl 5,770 Bbl 300 ft.…
  18. March 2014 Investor Presentation – Matador Resources Company – slide 18
    Frac Generation Comparison (all wells normalized to 5,000 horizontal) 120,000 120,000 110,000 GEN 2 (80 Acre) GEN 2 (80 Acre) 110,000 100,000 GEN 4 (80 Acre) GEN 4 (80 Acre) 100,000 90,000 GEN 5 (80 Acre) 90,000 GEN 5 (80 Acre)…
  19. March 2014 Investor Presentation – Matador Resources Company – slide 19
    Buda Wells Activity Since January 1, 2010 Blackbrush O&G 9 Buda Completions May 2011 Dec. 2013 Cum: 250 MBbl Blackbrush O&G 1.26 Bcf Oppenheimer-101H Comp May 2013 9 mo avg:: 192 Bbl/d Texas American Res 451 Mcf/d Buchanan-1H…
  20. March 2014 Investor Presentation – Matador Resources Company – slide 20
    Glasscock Ranch Seismic Mapping of Natural Fracture Trends Glasscock Ranch Frio South Survey: Amplitude at Time Slice Near Top Buda Texas American Res Buchanan-1H Comp April 2013 Contango O&G 9 mo avg:: Beeler 4H 377 Bbl/d Oct.…
  21. March 2014 Investor Presentation – Matador Resources Company – slide 21
    Permian Basin Southeast New Mexico and West Texas
  22. March 2014 Investor Presentation – Matador Resources Company – slide 22
    2014 Permian Basin Plan Details 2014 projected capital expenditures of 109 million or 25% of total 1-rig program (for now) working in Lea and Eddy Counties, NM and Loving County, TX Drill and/or complete or participate in 12 gross…
  23. March 2014 Investor Presentation – Matador Resources Company – slide 23
    Permian Basin Acreage Position Permian Basin Total Twin Lakes 32,097 gross / 21,831 net acres Gross Acres(1) 77,813 acres Net Acres(1) 50,121 acres Acreage position in good neighborhoods, Indian Draw/Rustler Breaks surrounded by…
  24. March 2014 Investor Presentation – Matador Resources Company – slide 24
    Wolf-Bone Geological Setting, Predicting Where the Better Rocks Are 265 mya End of Bone Springs Warmer Delaware Basin Delaware Mountain Group San Andres 1st, 2nd, 3rd Bone Spring Sands Yeso Abo Sands confined to channels…
  25. March 2014 Investor Presentation – Matador Resources Company – slide 25
    Permian Basin Petroleum Systems and the Wolfcamp Kitchens West East DELAWARE BASIN CENTRAL BASIN MIDLAND BASIN PLATFORM 23,000 Wolfcamp Sediment Fill Simpson Source Kitchens Now Unconventional Resource Plays 70,000…
  26. March 2014 Investor Presentation – Matador Resources Company – slide 26
    Ranger-Querecho Plains Prospect Area Location of Matador 2013/2014 test wells 13,675 gross (9,779 net) acres Concho 83 gross (59.6 net) locations(1) AirCobra 12 2H 3rd Bone Spring 30 mo.cum: 333 MBbl; 257 MMcf Primary…
  27. March 2014 Investor Presentation – Matador Resources Company – slide 27
    Wolf Prospect Area Location of Matador 2013/2014 test wells Dorothy White 1H Loving Wolfcamp A 5,437 gross (3,455 net) acres 2 mo.cum: 56,000 BOE (66% oil) 50 gross (35.4 net) locations(1) OXY Reagan-McElvain 1H Wolfcamp A…
  28. March 2014 Investor Presentation – Matador Resources Company – slide 28
    Indian Draw-Rustler Breaks Prospect Area Location of Matador 2013/2014 test wells Rustler Breaks Riddle 31 1H Wolfcamp B 24-hour IP: 987 BOE/d 14,174 gross (10,121 net) acres (436 Bbl/d + 3.3 MMcf/d; 44% oil) FTP: 3,000 psi on…
  29. March 2014 Investor Presentation – Matador Resources Company – slide 29
    Twin Lakes Prospect Area Saunders Denton 32,097 gross (21,831 net) acres Penn/Perm Caudill Wolfcamp/Devonian 43 MMBbl, 62 Bcf Penn/Perm 157 MMBbl, 78 Bcf 8.1 MMBbl, 6.0 Bcf Primary Targets Dean Penn/Perm 9.5 MMBbl, 6.0 Bcf…
  30. March 2014 Investor Presentation – Matador Resources Company – slide 30
    Twin Lakes Area Cross Section A A Wolfcamp D/Cline 400ft TEST VOLUMES: 268 Bbl/d oil TEST VOLUMES: 350 Mcf/d gas 118 Bbl/d oil No water 625 Mcf/d gas 1,155 Bbl/d water 31
  31. March 2014 Investor Presentation – Matador Resources Company – slide 31
    Matador Permian First Generation Frac Designs Bone Spring Wolfcamp 550 Mlbs 600 Mlbs Proppant Pumped(1) Fluid Volume 11,750 Bbl 11,750 Bbl Pumped 300 ft. 0 ft. Note: Figure depicts proppant and fluid volume pumped per…
  32. March 2014 Investor Presentation – Matador Resources Company – slide 32
    Permian Basin Stratigraphy and Lower Permian Petroleum Systems GR RE S Bone Spring Lime Upper Avalon Shale Lower Avalon Shale First Bone Spring Low permeability sand Sand and carbonate Second Bone Spring Carbonate…
  33. March 2014 Investor Presentation – Matador Resources Company – slide 33
    Haynesville and Other Natural Gas Operations
  34. March 2014 Investor Presentation – Matador Resources Company – slide 34
    2014 Tier 1 Haynesville Shale Plan 2014 projected capital expenditures of 12 million or about 3% of total Estimated participation in 26 gross (1.5 net) non-operated wells 2014 capital plan includes no Matador operated Haynesville…
  35. March 2014 Investor Presentation – Matador Resources Company – slide 35
    Significant Option Value on Natural Gas TIER 3: 2 4 Bcf NW Louisiana / East Texas(1) Proved Reserves(2) 180.6 Bcfe BOSSIER TIER 2: 4 6 Bcf CADDO 3,431 BOE/d Daily Production(3) BIENVILLE (99% natural gas) TIER 1: 6 10+ Bcf MTDR…
  36. March 2014 Investor Presentation – Matador Resources Company – slide 36
    Elm Grove Tier 1 Haynesville Chesapeake Operated 300 8 Bcf - 8.0mm D&C Cost 275 9 Bcf - 8.0mm D&C Cost 250 10 Bcf - 8.0mm D&C Cost 8 Bcf - 9.0mm D&C Cost 225 Estimated Rate of Return, % 9 Bcf - 9.0mm D&C Cost 200 10 Bcf -…
  37. March 2014 Investor Presentation – Matador Resources Company – slide 37
    Matador Gracie Prospect Meade Peak Gas Shale WYOMING IDAHO UTAH WYOMING IDAHO UTAH Crawford Federal 1H Summary 76,496 gross (36,004 net) acres WYOMING Drilled Crawford Fed 1H in late 2012 Recently completed…
  38. March 2014 Investor Presentation – Matador Resources Company – slide 38
    2014 Capital Investment Plan
  39. March 2014 Investor Presentation – Matador Resources Company – slide 39
    Summary and 2014 Guidance Continue 3-rig program in 2014 2 rigs in Eagle Ford and 1 rig in Permian Eagle Ford development will continue to be the major driver of our growth in 2014 Permian drilling program designed to further evaluate…
  40. March 2014 Investor Presentation – Matador Resources Company – slide 40
    2014 Capital Investment Plan Summary Continue 3-rig program in 2014 2 rigs in Eagle Ford and 1 rig in Permian 2014 estimated capital expenditures of 440 million Increase of 17% from 2013 capital expenditures of 374 million Eagle…
  41. March 2014 Investor Presentation – Matador Resources Company – slide 41
    2014 Oil and Natural Gas Production Estimates 2014E Oil Production Oil Production Midpoint(1) (Bbl/d) 10,000 Estimated oil production of 2.8 to 3.1 million barrels Increase of 40 to 50% from 2013, despite an average of 5 8,000 to…
  42. March 2014 Investor Presentation – Matador Resources Company – slide 42
    2014 Financial Estimates 2014E Revenues and Adjusted EBITDA(1)(2) Oil and Natural Gas Revenues(2) (millions) 400.0 Revenues and Adjusted EBITDA(1) growth impacted by lower 340.0 2014 realized oil price estimate 300.0 269.0 2014…
  43. March 2014 Investor Presentation – Matador Resources Company – slide 43
    Oil/Liquids Focus Continues to Drive 2014 Growth 2014 Anticipated Drilling 2014 Anticipated First Sales(1) 2014E CapEx Gross Wells(2) Net Wells(2) Gross Wells(2) Net Wells(2) (in millions) Total Total % Total Total % Total % South…
  44. March 2014 Investor Presentation – Matador Resources Company – slide 44
    Funding for 2014 Capital Investment Plan Anticipate funding 2014 capital expenditures through operating cash flows and borrowings under revolving credit facility 2.4 million barrels of oil (80 to 85% of estimated oil production)…
  45. March 2014 Investor Presentation – Matador Resources Company – slide 45
    2014 South Texas Drilling Plan 2-Rig Program EAGLE FORD ACREAGE TOTALS Nickel EAGLE FORD CENTRAL/EAST Ranch 38,985 gross / 27,147 net acres 7,570 gross / 6,360 net acres Bexar Hennig San Antonio 50 gross (47.0 net) wells planned…
  46. March 2014 Investor Presentation – Matador Resources Company – slide 46
    2014 Permian Basin Drilling Plan Twin Lakes 2014 Drilling Plan Highlights 31,057 gross / 20,791 net acres Estimated capital expenditures of 109 million 1 12 gross (9.8 net) wells planned for 2014, with 10 gross (8.3 net) wells…
  47. March 2014 Investor Presentation – Matador Resources Company – slide 47
    Appendix
  48. March 2014 Investor Presentation – Matador Resources Company – slide 48
    2014 Hedging Profile Hedges in Place for Remainder of 2014 At March 12, 2014, Matador had: Oil Hedges (Costless Collars) 2014 2.0 million barrels of oil hedged for Total Volume Hedged by Ceiling 1,992,400 Bbl remainder of 2014 at…
  49. March 2014 Investor Presentation – Matador Resources Company – slide 49
    Matadors Continued Growth Average Daily Production Oil Production Mix (MBOE/d) (% of Average Daily Production) 11.7 50% 9.0 37% 7.0 3.9 2.3 1.5 7% 6% 4% 2% 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013…
  50. March 2014 Investor Presentation – Matador Resources Company – slide 50
    Recent Semi-Annual Performance Metrics Through Year-End 2013 Oil Production Oil Equivalent Production (Bbl in thousands) (BOE in thousands) 2,341 1,225 1,944 1,768 908 1,525 729 1,277 485 84 2H 2011 1H 2012 2H 2012…
  51. March 2014 Investor Presentation – Matador Resources Company – slide 51
    Board of Directors and Special Advisors Expertise and Stewardship Board Members Professional Experience Business Expertise and Advisors - Professor Emeritus and Former Head of Dept. of Petroleum Engineering, Texas A&M University Dr.…
  52. March 2014 Investor Presentation – Matador Resources Company – slide 52
    Proven Management Team Experienced Leadership Industry Matador Management Team Background and Prior Affiliations Experience Experience Joseph Wm. Foran - Matador Petroleum Corporation, Foran Oil Company and James Cleo 33 years Since…
  53. March 2014 Investor Presentation – Matador Resources Company – slide 53
    Credit Agreement Status Strong, supportive bank group led by RBC Borrowing base at 385 million, based on December 31, 2013 reserves Borrowings outstanding of 250 million at March 13, 2014 Ability to request quarterly borrowing base…
  54. March 2014 Investor Presentation – Matador Resources Company – slide 54
    Adjusted EBITDA Reconciliation The following table presents our calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and net cash provided by operating activities,…
  55. March 2014 Investor Presentation – Matador Resources Company – slide 55
    Adjusted EBITDA Reconciliation The following table presents our calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and net cash provided by operating activities,…
  56. March 2014 Investor Presentation – Matador Resources Company – slide 56
    PV-10 Reconciliation PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effects of income taxes on future net…

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