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May 2014 Investor Presentation – Matador Resources Company

Matador Resources Company · May 21, 2014 · 48 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. May 2014 Investor Presentation – Matador Resources Company – slide 1
    Investor Presentation May 2014 NYSE: MTDR
  2. May 2014 Investor Presentation – Matador Resources Company – slide 2
    Company Summary
  3. May 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. May 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. May 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(2) 7.1 MBOE/d 11.9 MBOE/d 18x growth in Production 414 Bbl/d of oil 7,344 Bbl/d of oil oil production 6% oil 62%…
  6. May 2014 Investor Presentation – Matador Resources Company – slide 6
    Matadors Continued Growth 30 Year History TOTAL OIL AND (1) (2) (2)(3) TOTAL OIL PRODUCTION NATURAL GAS REVENUES ADJUSTED EBITDA 3,100 390.0 280.0 2,133 269.0 191.8 Thousand Bbl in millions in millions 1,214 156.0…
  7. May 2014 Investor Presentation – Matador Resources Company – slide 7
    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, our capabilities and our process Board and Special Advisor additions…
  8. May 2014 Investor Presentation – Matador Resources Company – slide 8
    Matador Resources Company Overview Market Capitalization(1) 1.6 billion Average Daily Production(2) 11,904 BOE/d Oil (% total) 7,344 Bbl/d (62%) Natural Gas (% total) 27.4 MMcf/d (38%) Proved Reserves 3/31/14 54.6 million BOE %…
  9. May 2014 Investor Presentation – Matador Resources Company – slide 9
    Eagle Ford South Texas
  10. May 2014 Investor Presentation – Matador Resources Company – slide 10
    2014 South Texas Plan Details 2014 projected capital expenditures of 318 million or 59% 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…
  11. May 2014 Investor Presentation – Matador Resources Company – slide 11
    Eagle Ford Overview Operations Summary 73 gross (63.3 net) wells(1) producing from the Eagle Ford Proved Reserves 3/31/14 19.4 million BOE An increase in oil production from 330 Bbl/d(2) % Proved Developed 59% in 2011 to 6,400…
  12. May 2014 Investor Presentation – Matador Resources Company – slide 12
    Eagle Ford Well Costs and Estimated Ultimate Recovery (EUR) EAGLE FORD ACREAGE TOTALS EAGLE FORD EAST Nickel Ranch 40,377 gross / 28,405 net acres Measured Depth: 17,000 18,000 Hennig Well Costs: 8-10 million EUR: 600-1,000 MBOE…
  13. May 2014 Investor Presentation – Matador Resources Company – slide 13
    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…
  14. May 2014 Investor Presentation – Matador Resources Company – slide 14
    Improvement in Drilling Efficiency Moving Towards Batch Drilling Single Well Drilling PAD Drilling BATCH Drilling EXPLORATION 2010 1/3 RIG 60 to 70% increase 2011 2/3 RIG in Rig Efficiency from 2012 to 2014E 2012 2 RIGS 2013 1…
  15. May 2014 Investor Presentation – Matador Resources Company – slide 15
    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.…
  16. May 2014 Investor Presentation – Matador Resources Company – slide 16
    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)…
  17. May 2014 Investor Presentation – Matador Resources Company – slide 17
    Buda Wells Activity Since January 1, 2010 Potential Test Blackbrush O&G 10 Buda Completions May 2011 Feb. 2014 Cum: 240 MBbl Blackbrush O&G 1.13 Bcf Oppenheimer-101H Comp May 2013 11 mo avg: 165 Bbl/d TX American 440 Mcf/d…
  18. May 2014 Investor Presentation – Matador Resources Company – slide 18
    Glasscock Ranch Seismic Mapping of Natural Fracture Trends Glasscock Ranch Frio South Survey: Amplitude at Time Slice Near Top Buda TX American Resources Buchanan-1H 5/3/2013 Crimson Exploration IP: 756 Bbl/d Beeler-4H 556 Mcf/d…
  19. May 2014 Investor Presentation – Matador Resources Company – slide 19
    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 Note:…
  20. May 2014 Investor Presentation – Matador Resources Company – slide 20
    Permian Basin Southeast New Mexico and West Texas
  21. May 2014 Investor Presentation – Matador Resources Company – slide 21
    2014 Permian Basin Plan Details 2014 projected capital expenditures of 159 million or 29% of total 1-rig program (temporary 2-rig overlap) working in Lea and Eddy Counties, NM and Loving County, TX Drill and/or complete or participate…
  22. May 2014 Investor Presentation – Matador Resources Company – slide 22
    Permian Basin TWIN LAKES Permian Basin Total 32,417 gross / 22,151 net acres Gross Acres 86,953 acres Net Acres 56,199 acres INDIAN DRAW / RUSTLER BREAKS Estimated 241 gross (177.7 net) engineered drilling 17,128 gross / 12,341…
  23. May 2014 Investor Presentation – Matador Resources Company – slide 23
    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…
  24. May 2014 Investor Presentation – Matador Resources Company – slide 24
    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…
  25. May 2014 Investor Presentation – Matador Resources Company – slide 25
    Targeting Multiple Benches in our Exploratory Program GR RES Brushy Canyon Sand Bone Spring Lime Matador has successfully Upper Avalon Shale drilled four Lower Avalon Shale horizontal wells targeting First Bone Spring Sand…
  26. May 2014 Investor Presentation – Matador Resources Company – slide 26
    Wolf / Loving Prospect Area Location of Matador wells Dorothy White 1H Loving Wolfcamp A 10,943 gross (7,000 net) acres 4 mo.cum: 100,000 BOE (66% oil) OXY 50 gross (35.4 net) locations(1) Reagan-McElvain 1H Wolfcamp A IP:…
  27. May 2014 Investor Presentation – Matador Resources Company – slide 27
    Ranger / Querecho Plains Prospect Area Location of Matador wells Pickard Project 14,035 gross (9,847 net) acres Results expected in Q3 2014 Pickard 20-18-24 1H 2nd Bone Spring Pickard 20-18-24 2H Wolfcamp D 83 gross (59.6 net)…
  28. May 2014 Investor Presentation – Matador Resources Company – slide 28
    Indian Draw / Rustler Breaks Prospect Area Rustler Breaks 12-24-27 1H Location of Matador wells Wolfcamp B Flowing: 1,160 BOE/d (560 Bbl/d + 3.6 MMcf/d; 48% oil) 17,128 gross (12,341 net) acres FTP(2): 2,750 psi on 20/64th inch…
  29. May 2014 Investor Presentation – Matador Resources Company – slide 29
    Twin Lakes Prospect Area Saunders Denton Location of Matador well Penn/Perm Caudill Wolfcamp/Devonian 43 MMBbl, 62 Bcf Penn/Perm 157 MMBbl, 78 Bcf 8.1 MMBbl, 6.0 Bcf Dean Penn/Perm 9.5 MMBbl, 6.0 Bcf 32,417 gross (22,151 net)…
  30. May 2014 Investor Presentation – Matador Resources Company – slide 30
    Twin Lakes Area Cross Section A A Wolfcamp D 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. May 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. May 2014 Investor Presentation – Matador Resources Company – slide 32
    Haynesville Shale
  33. May 2014 Investor Presentation – Matador Resources Company – slide 33
    2014 Tier 1 Haynesville Shale Plan 2014 projected capital expenditures of 62 million or about 11% of total Estimated participation in 56 gross (7.8 net) non-operated wells(1) Chesapeake may drill up to 30 wells at Elm Grove in 2014;…
  34. May 2014 Investor Presentation – Matador Resources Company – slide 34
    Significant Option Value on Natural Gas Elm Grove Area TIER 3: 2 4 Bcf NW Louisiana / East Texas(1) BOSSIER TIER 2: 4 6 Bcf Proved Reserves(2) 187.8 Bcfe CADDO 2,104 BOE/d BIENVILLE Daily Production(3) (99% natural gas) TIER 1: 6…
  35. May 2014 Investor Presentation – Matador Resources Company – slide 35
    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 -…
  36. May 2014 Investor Presentation – Matador Resources Company – slide 36
    2014 Capital Investment Plan
  37. May 2014 Investor Presentation – Matador Resources Company – slide 37
    Summary and 2014 Guidance Continue 3-rig program in 2014 2 rigs in the Eagle Ford and 1 rig in the Permian Eagle Ford development expected to be the major driver of our growth in 2014 Permian drilling program designed to further…
  38. May 2014 Investor Presentation – Matador Resources Company – slide 38
    2014 Capital Investment Plan Summary Continue 3-rig program in 2014 2 rigs in the Eagle Ford and currently 2 rigs in the Permian Increased 2014E capital expenditures from 440 million to 540 million Eagle Ford development expected to…
  39. May 2014 Investor Presentation – Matador Resources Company – slide 39
    Funding for 2014 Capital Investment Plan Anticipate funding 2014 capital expenditures through operating cash flows and borrowings under revolving credit facility 1.8 million barrels of oil (between 70 and 75% of estimated oil…
  40. May 2014 Investor Presentation – Matador Resources Company – slide 40
    Appendix
  41. May 2014 Investor Presentation – Matador Resources Company – slide 41
    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…
  42. May 2014 Investor Presentation – Matador Resources Company – slide 42
    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…
  43. May 2014 Investor Presentation – Matador Resources Company – slide 43
    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.…
  44. May 2014 Investor Presentation – Matador Resources Company – slide 44
    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…
  45. May 2014 Investor Presentation – Matador Resources Company – slide 45
    2014 Hedging Profile Hedges in Place for Remainder of 2014 At May 6, 2014, Matador had: Oil Hedges (Costless Collars) 2014 1.8 million barrels of oil hedged for Total Volume Hedged by Ceiling (Bbl) 1,750,000 Bbl remainder of 2014 at…
  46. May 2014 Investor Presentation – Matador Resources Company – slide 46
    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,…
  47. May 2014 Investor Presentation – Matador Resources Company – slide 47
    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,…
  48. May 2014 Investor Presentation – Matador Resources Company – slide 48
    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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