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 members;…
Company Overview Exchange: Ticker NYSE: MTDR Shares Outstanding(1) 85.6 million common shares Share Price(1) 26.70/share Market Capitalization(1) 2.3 billion Actual Previous Updated % YoY 2014 2015 Guidance(2) 2015 Guidance(3)…
Matador Resources Company Operations Overview Market Capitalization(1) 2.3 billion Avg. Daily Production Q3 2015(2) 26,137 BOE/d +62%* 33% of total production Almost no oil Oil (% total) 12,617 Bbl/d (48%) 63% of total natural gas…
Matadors Execution History Doing What We Say Matador continues to execute on its core strategy of acquiring great assets, developing a highly professional, committed workforce, maintaining a strong balance sheet and generating…
Selected Operating and Financial Results Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, September 30, 2015 2015 2014 2015 2014 (1) Net Production Volumes: Oil production (MBbl) 1,161 1,260 839…
Oil and Natural Gas Proved Reserves and PV-10(1) by Area Haynesville/CV Permian Haynesville/CV 82.9 million, 13% 31.9 million, 5% 82.1 million, 12% Permian 246.2 million, 24% Haynesville/CV Permian 193.4 million, 18% 327.8 million, 47%…
Matadors Continued Growth in Production and Permian Position Average Daily Oil Production Average Daily Natural Gas Production (Bbl/d) (MMcf/d) 13,847 81.1 76.5 12,617 73.8 11,206 9,095 39.8 41.9 5,843 34.1 35.4 23.0 3,317 91 422 2010…
We Remain Committed to Keeping our Balance Sheet Strong Preserved and enhanced liquidity through April 2015 equity and Senior Notes offerings and sale of Loving County midstream assets for 143 million(1) in October 2015 substantial…
Previous Oil Price Declines Have Created Opportunities for Matador(1) Comparison of Major Oil Corrections and Major Matador Turning Points Since 1980 Length of Oil % Increase in Oil % Change in Price Decline Price Date Event Oil Price…
Keys to Matadors Success Over Last 35 Years(1) 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 processes Board and…
Permian (Delaware) Basin Southeast New Mexico and West Texas
Delaware Basin A World Class Hydrocarbon System West East DELAWARE BASIN CENTRAL BASIN MIDLAND BASIN PLATFORM 23,000 Wolfcamp Sediment Fill Simpson Source Kitchens Now Unconventional Resource Plays 70,000 square mile…
Spectrum of Unconventional Play Types In general there is no consensus on the what an unconventional reservoir is At Matador, we think of an unconventional reservoir as a spectrum of play types. The distribution and quality of these play…
4,000 feet of Hydrocarbon Column Creates Opportunity INTER-Formational Stacked Pay Determining Good, Better, Best important as potential Gamma Ray Resistivity exceeds inter-formational stacked pay Bone Spring Lime 2015 program will…
Permian Basin Acreage Position and Selective Well Results TWIN LAKES 42,900 gross / 30,000 net acres Permian Basin Total Gross Acres 158,700 acres ARROWHEAD 47,400 gross / 17,100 net acres Net Acres 90,700 acres Selected well…
Permian Basin Acreage Position and Recent Test Results TWIN LAKES 42,900 gross / 30,000 net acres Twin Lakes vertical pilot hole ARROWHEAD Iggles 21-16 State Com 1H 2nd BS CTA State Com 3H & 4H 2nd BS Pickard State 20-18S-34E…
Matador is a Significant Delaware Basin Player Matadors 90,700 net acres place it among the largest operators in the Delaware Basin Matador holds largest Delaware Basin acreage position among small and mid-cap publicly traded energy…
Delaware Basin Task at Hand Understanding the Opportunities Brushy Cyn. Most current unconventional plays target one or two zones across a trend area. Upper Avalon Lower Avalon The Permian Basin has roughly two dozen unique…
Wolf Inventory Multi-Pay Development Potential Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring 5.5 6.5 million 450 600 Wolfcamp 6.5 8.0 million 650 1,100 Full Development Spacing Pattern (Cross-Section View) Gross Wells…
Wolf Area Wolfcamp A/X Wells Performing Above Expectations 10,000 Wolfcamp A/X horizontals in Loving County, Texas Dorothy White 1H has produced 453,000 BOE (68% oil) in 22 months X Norton Schaub 84TTTB33 WF 201H has produced 315,000…
Rustler Breaks Inventory Multi-Pay Development Potential Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring 4.0 5.0 million 300 600 Wolfcamp 5.5 7.5 million 500 1,000 Full Development Spacing Pattern (Cross-Section View)…
Matadors First Three-Zone Stacked Lateral Test at Rustler Breaks INTER-Formational Stacked Pay Multi-Well Pad Gamma Ray Resistivity Bone Spring Lime Upper Avalon Shale Lower Avalon Shale First Bone Spring Sand Second Bone…
Rustler Breaks Wolfcamp B Wells Performing Above Expectations 10,000 Wolfcamp B horizontals in Eddy County, New Mexico Rustler Breaks 1224S27E 224H has produced 221,000 BOE (41% oil) in 18 months Tiger 1424S28E RB 224 has produced…
Rustler Breaks Wolfcamp A/X-Y Wells, Off to Strong Start 10,000 Wolfcamp A/XY horizontals in Eddy County, New Mexico Guitar 1024S28E RB 202H has produced 137,000 BOE (79% oil) in 8 months XY Tiger 1424S28E RB 204H has produced…
Ranger Inventory Multi-Well Development Potential Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring 5.5 6.5 million 400 600 Wolfcamp 7 9 million 200 800* * Based on Volumetrics and 4-8% Recovery Factor Full Development…
Ranger Area Second Bone Spring Wells Performing Above Expectations 10,000 2nd Bone Spring horizontals in Ranger Area Lea County, New Mexico Ranger State 3320S35E RN 121H has produced 228,000 BOE (91% oil) in 23.5 months Pickard…
Arrowhead HEYCO Acreage Provides Unique Opportunities Non-Op Activity Most HEYCO acreage is Federal acreage 2nd Bone Spring Most held by production by older, vertical wells Typically 87.5% NRI on most Federal acreage Matador Well…
Future Bit Technology The Evolution of the PDC bit Matador continues to be at the forefront of new bit technology Smith Bits latest technology StingBlade design StingBlade design features Alternating Stinger/PDC cutters…
New Rig Technology for Horizontal Drilling Saving Time and Money 7,500 psi Pressure Rating Estimated reduction in drilling time of 20 to 25% in the lateral on Wolfcamp wells Telescoping Flex-joint Estimated reduction in drilling…
Latest Technology: Simultaneous Operations (Sim-Ops) Capable Rigs Conventional Drilling Configuration Sim-Ops Capable with V-door turned 90 Drilling rig must leave location Space available for frac prior to frac operations…
Improving Wolfcamp Drilling Times Significantly in 2015 50 Historical Well 45 43 2015 Planned Well 40 Recent Well 35 35 32 30 Drilling Days 26 25 22 20 15 15 10 5 0 Loving County Wolfcamp Eddy County…
Cost Reduction Metrics (Drilling and Completion) Drilling Completion Overall cost reduced by 43% since first well Overall cost reduced by 50% since first well Days down from 43 to 22 in the Wolfcamp Cost of pumping and drill out has…
Evolution of Permian Basin Frac Design Reservoir Specific Bone Spring 375 ft. Gen 1 Gen 2 500 Mlbs 75 ft. 2,000 lbs/ft 1,333 lbs/ft Coupled 40 Bbl/ft 20 Bbl/ft 7,500 Bbl 50 cluster spacing 75 cluster spacing Upper…
Optimizing Artificial Lift Operations Across the Basin Optimizing Gas Lift Operations All 2nd Bone Spring wells on gas lift Accelerates production while reducing LOE Lower maintenance costs than rod pump Helps wells recover faster…
Permian Basin Economics Oil Price Sensitivities Ranger 33 (2nd Bone Spring) 400 700 MBOE Dorothy White (Wolfcamp X/Y) 700 1,000 MBOE 400 160 700 MBOE, 7 MM D&C 1,000 MBOE, 8.5 MM D&C 350 140 700 MBOE, 5.5 MM D&C 1,000 MBOE, 7 MM…
Significant Delaware Basin Inventory Matador has identified 1,445 gross (960 net) locations(1) TWIN LAKES Chaves This inventory does not yet include the HEYCO properties (mostly Arrowhead prospect area) or Twin ARROWHEAD Lakes…
Midstream
Longwood Gathering and Disposal Systems(1) in Delaware Basin Longwood Gathering and Disposal Systems Activities Loving County, Texas Natural gas gathering Water gathering Oil gathering Salt water disposal Commercial facility…
Summary: Sale of Loving County Gas Gathering & Processing Assets Matador sold certain Delaware Basin natural gas gathering and processing assets in Loving County, Texas to EnLink(1) for 143 million(2) in cash in October 2015. Assets…
Eagle Ford Oil Bank
Eagle Ford Is Still a Valuable Asset EAGLE FORD EAST Nickel EAGLE FORD ACREAGE TOTALS 3,600 gross / 2,700 net acres Ranch 40,100 gross / 29,900 net acres Measured Depth: 17,000 18,000 Hennig Well Costs: 7.5-9.5 million Planned…
Evolution of Matador Eagle Ford Frac Design Gen 2 Gen 3 Gen 4 Gen 5 Gen 6 Gen 7 Proppant 650 Mlbs 650 Mlbs Pumped(1) 515 Mlbs 500 Mlbs 375 Mlbs 405 Mlbs Fluid Volume Pumped 9,550 Bbl 11,750 Bbl 11,750 Bbl 11,750 Bbl 5,770 Bbl…
Haynesville Shale Gas Bank
Haynesville Chesapeake Elm Grove Operations 2015 Haynesville Non-Op Program Estimated capital expenditures of 25 million for non-operated well participation interests Only 6% of 2015 estimated capital expenditures Originally budgeted…
Economics of Tier 1 Wells (10 Bcf) Haynesville at Elm Grove 400 Matadors Advantaged Economics NRIs of 85 to 90% on many properties due to ORRIs 350 Improved pricing: increase of 0.70/MMBtu due to taking natural gas in kind Longer…
2015 Updated Capital Investment Plan
2015 Capital Investment Plan At the beginning of 2015, reduced drilling program from 5 rigs to 2 rigs due to lower commodity prices, with primary focus on Permian (Delaware) Basin In late July 2015, took delivery of a third rig in…
2015 Updated Production Estimates Oil Equivalent Growth of 54%(1)(2) 2015E Oil Production Oil Production Growth (Bbl/d) Estimated oil production of 4.4 to 4.5 million barrels 14,000 12,192 34% increase from 2014 despite decreased…
2015 Updated Capital Investment Plan Oil and Natural Gas Revenues(2) (millions) 2015E Revenues and Adjusted EBITDA(1)(2) Realized Oil and Natural Gas Prices, /Bbl and /Mcf 76.39 93.80 101.86 99.79 87.37 47.96 Revenues and Adjusted…
Appendix
Credit Agreement Status Strong, supportive bank group led by Royal Bank of Canada Borrowing base reaffirmed on October 16, 2015 at 375 million based on June 30, 2015 reserves Maturity of credit facility extended from December 2016 to…
Hedging Profile 2015 Hedges(1) Oil: 0.5 million barrels of oil hedged for remainder of 2015 at weighted average floor and ceiling prices of 67/Bbl and 85/Bbl, respectively Approximately 80% of oil hedged for remainder of 2015(2)…
North Ranger-Twin Lakes Area Pennsylvanian/Wolfcamp Production Distribution Townsend Field 166 wells A 25 million Bbl, 49 Bcf Kemnitz Field 94 wells 19 million Bbl, 78 Bcf Sanmal and Leamex Fields Wolfcamp/ 40 wells Upper…
Pennsylvanian/Wolfcamp Hybrid Production Target Interval 30025416140000 30025300490000 30025257790000 30025346940000 30025397370000 30025414070000 Pickard 2H MATADOR PRODUCTION A North AVRA OIL COMPANY ELK OIL COMPANY Legacy Reserves…
Board of Directors Expertise and Stewardship Board Members Professional Experience Business Expertise David M. Laney - Past Chairman, Amtrak Board of Directors Law and Investments Lead Director - Former Partner, Jackson Walker LLP…
Special Board Advisors Expertise and Stewardship Special Board Advisors Professional Experience Business Expertise - Retired President North America, Archer Ronney F. Coleman Oilfield Services - Former Vice President North America…
Proven Management Team Experienced Leadership Industry Matador Management Team Background and Prior Affiliations Experience Experience Joseph Wm. Foran - Matador Petroleum Corporation, Foran Oil Company, 35 years Since Inception…
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,…
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,…
Adjusted Net Income and Adjusted Earnings Per Share Reconciliation Adjusted net income and adjusted earnings per common share are non-GAAP financial measures and are measured as net income (loss) attributable to Matador Resources Company…
Cash Operating Expenses per BOE Reconciliation Cash operating expenses per BOE is a non-GAAP financial measure and is measured as operating expenses per BOE excluding non-cash DD&A expense, non-cash stock- based compensation expense and…
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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