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) 93.3 million common shares Share Price(1) 20.08/share Market Capitalization(1) 1.9 billion Actual Actual % YoY 2014 Results 2015 Results 2016 Guidance…
Matador Resources Company Operations Overview Market Capitalization(1) 1.9 billion Avg. Daily Production Q1 2016(2) 23,846 BOE/d 33% of total production Almost no oil Oil (% total) 11,473 Bbl/d (48%) 63% of total natural gas…
Matador Has Made Tremendous Progress Since its IPO At IPO(1): Today(2) Difference February 7, 2012 414 Bbl/d 11,473 Bbl/d Oil Production (6% oil) (48% oil) +28-fold 27 MMBOE 90 MMBOE Proved Reserves (4% oil) (56% oil)…
Q1 2016 Production Volumes Consistent with Projections Average Daily Oil Production Average Daily Natural Gas Production (Bbl/d) (MMcf/d) 13,847 81.1 Oil up 3% YOY; 12,306 12,617 Gas up 2% YOY; 75.9 73.8 76.5 72.1 74.2 11,547…
Matadors Reserves Volumes at an All-Time High at March 31, 2016 Delaware Basin 246.2 million, 24% Haynesville/CV 51.9 million, 10% Haynesville/CV Haynesville/CV 42.3 million, 8% 193.4 million, 18% Delaware Basin 314.5 million,…
Committed to Maintaining Strong Balance Sheet Preserved and enhanced liquidity through April 2015 equity and Senior Notes offerings, sale of certain Loving County midstream assets for 143 million(1) in October 2015 and March 2016…
Delaware Basin Southeast New Mexico and West Texas
Delaware Basin Acreage Position and Recent Operations and Results TWIN LAKES 42,700 gross / 30,300 net acres Recently completed Olivine State 5-16S-37E TL 1 Strawn Being completed (Twin Lakes vertical pilot hole) ARROWHEAD IP = 691…
Delaware Basin Brushy Cyn. Understanding the Opportunities U. Avalon L. Avalon Most current unconventional plays target one or two zones across a trend area. 1st Bone Spring The Delaware Basin has over a dozen unique targets 2nd…
Delaware Basin Inventory Continues to Increase Matador has identified up to 3,543 gross (1,417 net) potential locations(1) for future drilling on its Delaware Basin acreage Only 118 gross (71.1 net) locations are PUD locations at…
Improving Wolfcamp Drilling Times Significantly in 2015 and 2016 50 2014 Average 45 43 2015 Planned 40 2015 Best Well 35 35 32 2016 Record Well Drilling Days 30 26 25 20 18 17.3 15 13.8 15 10 5 0 Loving County…
2016 Anticipated Wolf Area Completion Cost Improvements 5.0 4.6 Efficiencies 17% Service Costs 4.0 83% 83% Completion Costs, millions 3.0 2.4 Efficiencies 25% Service Costs 75% More to 2.0 75% 1.8 come 1.0…
2016 Anticipated Wolf Area Total Drilling and Completion Cost Improvements 12.0 Efficiencies 12.0 100,000 Cost Reduction ROR Increase 2% 44% 10.0 Drilling and Completion Costs, millions Service Costs 8.0 56% 6.0…
Evolution of Delaware Basin Frac Design Reservoir Specific Bone Spring 350 ft. Gen 1 Gen 2 Testing 50 ft. 2,000 lbs/ft 1,333 lbs/ft 2,100 lbs/ft Coupled 500 Mlbs 40 Bbl/ft 20 Bbl/ft 40 Bbl/ft 50 cluster 75 cluster 50 cluster…
Wolf Prospect Area Continued Focus on Wolfcamp Development in 2016 2015 and Early 2016 Accomplishments Billy Burt 90-TTT-B33 WF 201H Wolfcamp A-Y Reduced Wolfcamp drilling times by 60% Diverting agent used outperforming 80-acre offset…
Wolf Inventory Multi-Pay Development Potential Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil 2nd Bone Spring 4.0 5.0 400 500 50 65% Wolfcamp A-XY 5.5 6.5 650 1,100 65 80% Total Est. Full Development…
Drilling Wells in Batch Mode / Central Production Facilities Dick Jay / Barnett Development (Cross-Section View) Dick Jay / Barnett Development (Top-Down View) Dick Jay Pad Barnett Pad Barnett 2nd Bone Dick Jay 124H Spring…
Wolf Area Wolfcamp A-XY Wells Continue Strong Performance Across Acreage 10,000 Dorothy White 1H has produced 515 MBOE (68% oil) in 28 months Norton Schaub 84TTTB33 WF 201H has produced 425 MBOE (67% oil) in 21 months Billy Burt…
Wolf Estimated Returns by Formation Formation Development Well Cost(1)(2) (millions) EUR(3) (MBOE) % Oil 2nd Bone Spring 4.0 - 5.0 400 500 50 65% Wolfcamp A-XY 5.5 - 6.5 650 1,100 65 80% Wolfcamp AXY 2nd Bone Spring 200 100…
Rustler Breaks Focus on Wolfcamp Development in 2016 2015 Accomplishments Identified multiple new horizons, particularly in the Wolfcamp A-XY and Wolfcamp B Scott Walker 204H Reduced drilling times and well costs significantly 24…
Rustler Breaks Inventory Multi-Pay Development Potential Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil Bone Spring 3.0 4.0 300 600 80 85% Wolfcamp A-XY 5.0 6.0 600 800 80 85% Wolfcamp B 5.5 6.5 800 1,000 40…
Rustler Breaks 5 Wells Producing From 3 Zones on Multi-Well Pad West (Section 14) East (Section 13) INTER-Formational Stacked Pay Gamma Ray 3 producing wells Multi-Well Pad 2 producing wells Resistivity Bone Spring Lime Upper…
Rustler Breaks Well Cost Achievements Wolfcamp A Wolfcamp B 2nd Bone Spring Tiger 3 well stack costs: 19.5 million Combined Gross EUR: 2 MMBOE 2016 could result in 13.00/BOE net(1) 13.5 million total costs 9.00/BOE net(1) 10…
Rustler Breaks Wolfcamp B Wells Performing Above Expectations 10,000 Rustler Breaks 1224S27E RB 224H has produced 260 MBOE (41% oil) in 24 months Tiger 1424S28E RB 224 has produced 280 MBOE (42% oil) in 13 months Janie Conner…
Rustler Breaks Wolfcamp A-XY Wells Performing Above Expectations 10,000 Guitar 1024S28E RB 202H produced 200 MBOE (76% oil) in 13 months Tiger 1424S28E RB 204H produced 215 MBOE (78% oil) in 10 months Scott Walker 3622S27E RB 204H…
Rustler Breaks Estimated Returns by Formation Formation Development Well Cost(1)(2) (millions) EUR(3) (MBOE) % Oil Wolfcamp A-XY 5.0 6.0 600 800 80 85% Wolfcamp B 5.5 6.5 800 1,000 40 50% Rustler Breaks - Wolfcamp A-XY (85%…
Single Wolfcamp B Well at Rustler Breaks Holds Up To 15 Potential Locations One producing Wolfcamp B well holds 320 surface acres and up to 15 additional potential locations for future development 320 - Acre Development Spacing…
Ranger/Arrowhead Bone Spring and Wolfcamp Development in 2016 Iggles 21 State Com 1H - Tested 1,300 BOE/d (90% oil) CTA State Com 3H, 4H, 5H, 6H - Tested avg. 956 BOE/d (85% oil) Pickard State RN 124H Gobbler 5 B2PM 1H - IP 594 BOE/d…
Ranger Inventory Multi-Well Development Potential Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil Bone Spring 4.5 6.0 400 700 90 95% Wolfcamp 6.5 8.0 200 800* 80 85% * Based on Volumetrics and 4-8% Recovery…
Arrowhead Inventory Multi-Well Development Potential Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil Bone Spring 4.5 6.0 400 700 80 90% Wolfcamp 6.5 8.0 200 800* 80 85% * Based on Volumetrics and 4-8% Recovery…
Ranger Area Bone Spring Wells Continued Strong Performance 10,000 Ranger State 3320S35E RN 121H produced 250 MBOE (91% oil) in 29 months (2nd Bone Spring) Ranger State 3320S35E RN 122H produced 80 MBOE (91% oil) in 12 months (2nd…
Testing New Oil Shale Play in Twin Lakes Prospect Pennsylvanian-Lower Wolfcamp D Oil Shale Porous Intervals 8% One of the primary source rocks for Twin Lakes prospect area (42,700 gross and 30,300 net acres) Super-charged area…
Midstream
Longwood Gathering and Disposal Systems(1) in Delaware Basin Loving County, TX Gas gathering Water gathering Salt water disposal Oil gathering Cryogenic gas processing plant Sold to EnLink Eddy County, NM Gas gathering and…
Wolf - Loving County, TX Significant Midstream Footprint Gas Gathering Water Gathering Salt Water Disposal Oil Gathering Matador Acreage Note: All acreage at May 3, 2016. 42
Rustler Breaks - Eddy County, NM Repeating the Proven Wolf Model Gas gathering and compression Cryogenic gas processing plant expected to be operational in Q3 2016 Water gathering (under evaluation) Salt water disposal (under…
2016 Capital Investment Plan Update
2016 Capital Investment Plan Summary We will keep the focus on our Delaware Basin assets and opportunities with the intent of creating and preserving long-term shareholder value Plan to run 3 rigs throughout 2016 Continue to improve…
2016 Capital Investment Plan Summary We estimate our capital budget in 2016 to be approximately 325 million (down 33% from 2015(1)) We expect to have sufficient liquidity to fund our 2016 capital investments 118 million in cash and…
2016 Capital Investment Plan Summary We expect to grow oil production by about 11% and keep natural gas production close to flat; total BOE production growth of about 4% as compared to 2015 We expect to outspend cash flow by 230…
Matadors 2016 Delaware Basin Operated Drilling Plan: 3-Rig Case(1) TWIN LAKES 42,700 gross / 30,300 net acres Wolf/Loving Area 20 gross (16.8 net) wells planned for 2016 ARROWHEAD 18 gross (15.8 net) wells on production, including…
Delaware Basin Sensitivities to Oil Price(1) and Cost Savings Ranger/Arrowhead - 2nd Bone Spring (90% oil) Wolf - Wolfcamp A-XY (70% oil) 300 300 700 MBOE, 4.5 MM 1,000 MBOE, 5.5 MM 250 700 MBOE, 6.0 MM 250 1,000 MBOE, 6.5 MM 200…
2016 Capital Investment Plan Summary 2016E CapEx 2016E CapEx of 325 million (3 rigs in the Delaware Basin throughout 2016) Decrease of 33% from 2015 capital expenditures of 325 million 482 million(1) Includes estimated efficiency and…
2016 Oil and Natural Gas Production and Adjusted EBITDA Estimates Oil and Natural Gas Production 2016E Oil Production 2016E CapEx: D&C / Facilities: 260 MM Estimated oil production of 4.9 to 5.1 million barrels Midstream / Land: 65…
Hedging Profile Remainder of 2016 Hedges(1) Oil: 1.8 million barrels of oil hedged for remainder of 2016 at weighted average floor and ceiling prices of 42/Bbl and 61/Bbl, respectively Over 50% of oil hedged for remainder of 2016…
Credit Agreement Status Strong, supportive bank group led by Royal Bank of Canada Borrowing base reduced on May 3, 2016 from 375 million to 300 million based on December 31, 2015 reserves using commodity price estimates prescribed by…
Summary and 2016 Guidance (as Affirmed May 3, 2016) Plan to run 3 rigs in the Delaware Basin throughout 2016 Delaware Basin drilling expected to focus on Wolf and Rustler Breaks Wolfcamp development and further delineation of Ranger,…
Appendix
Eagle Ford Oil Bank EAGLE FORD EAST EAGLE FORD ACREAGE TOTALS Measured Depth: 17,000 18,000 Nickel Ranch 39,000 gross / 28,100 net acres 80-acre spacing Hennig Uvalde Medina Gonzales Lewton San Antonio Love EAGLE FORD…
Haynesville Operations Elm Grove Development Chesapeake Operated 2015 Haynesville Non-Op Program Producing Wells 22 gross (1.9 net) wells turned to sales throughout Tier 1 Haynesville in 2015 Currently Drilling or Completing…
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…
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…
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…
Optimizing Artificial Lift Operations Across the Delaware Basin Optimizing Gas Lift Operations Numerous 2nd Bone Spring wells on gas lift Accelerates production while reducing LOE Lower maintenance costs than beam pump Helps wells…
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,…
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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