Selected Financial Measures (In thousands) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 Net (loss) incom e attributable to Matador Resources Com pany Shareholders (27,596) 7,153 6,194 3,941 3,801 (6,676) (9,197)…
Company Summary
Company Overview Exchange: Ticker NYSE: MTDR Shares Outstanding(1) 93.5 million common shares Share Price(1) 21.00/share Market Capitalization(1) 2.0 billion Actual Initial Updated % YoY 2015 Results 2016 Guidance(2) 2016…
Matador Resources Company Operations Overview Market Capitalization(1) 2.0 billion Avg. Daily Production(2) 29,400 BOE/d 21% of total production Oil (% total)(2) 15,000 Bbl/d (51%) Almost no oil 43% of total natural gas Natural…
Matadors Production Growth History Average Daily Oil Production Average Daily Natural Gas Production (Bbl/d) (MMcf/d) Number of Rigs Oil up 11% sequentially; 5 2 2 3 3 3 3 Gas flat sequentially; up 19% YOY 13,847 14,960 up 7% YOY…
Matadors Proved Reserves Over 100 Million BOE at September 30, 2016 Haynesville/CV 13.4 MMBOE, 13% Haynesville/CV 19.0 MMBOE, 22% Haynesville/CV 33.4 MMBOE, 49% Delaware Delaware 74.0 MMBOE, 73% 47.1 MMBOE, 56% Delaware…
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(1) Recently completed TWIN LAKES 43,500 gross / 31,300 net Being completed acres Awaiting completion Currently being drilled ARROWHEAD 48,900 gross / 17,300 net…
Delaware Basin Task at Hand Understanding the Opportunities Brushy Cyn. Most current unconventional plays target one or two Upper Avalon zones across a trend area. Lower Avalon The Permian Basin has roughly two dozen unique…
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 Wells Costs in the Delaware Basin 2015 Wolf Area Drilling Cost Improvements 2016 Anticipated Wolf Area Drilling Cost Improvements 8.0 8.0 7.4 Rigs 7.4 Efficiencies Labor/ 7.0 20% Supply 7.0 Drilling Costs, millions…
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…
Improving Drilling Times in the Delaware Basin Wolfcamp A-XY Wells, Loving County, TX 2nd Bone Spring Wells, Loving County, TX 2014 Average 2015 Average 2015 Average 2016 YTD Average 50 2016 YTD Average 25 YE 2016 Planned 44.8 21.8…
Improving Well Performance Diverting Agent Case Study Initial Case Study Results: Ongoing Studies: Tested diverting agent on two offset Wolfcamp wells Pumped diverting agent in most of Q3 2016 with near identical frac designs on…
Evolution of Delaware Basin Frac Design Reservoir Specific Bone Spring 350 ft. Gen 1 Gen 2 Gen 3 50 ft. 2,000 lbs/ft 1,333 lbs/ft 2,100 lbs/ft Coupled 735 Mlbs 14,000 Bbl 40 Bbl/ft 20 Bbl/ft 40 Bbl/ft 50 cluster 75 cluster…
Wolf Asset Focus on Wolfcamp/2nd Bone Spring in 2016 2 Johnson 201H Wolfcamp A-Y 3 Billy Burt 124H 2nd Bone Spring 24 hr IP = 1,366 (67% oil) 24 hr IP = 1,047 BOE/d (77% oil) 1 Johnson 121H 2nd Bone Spring 2016 YTD Accomplishments…
Wolf Inventory Multi-Pay Development Potential Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil 2nd Bone 4.0 5.0 450 600 50 65% Spring Wolfcamp A-XY 5.5 6.5 650 1,100 65 80% Total Est. Full Development…
Wolf Area Wolfcamp A-XY Wells Performing Above Expectations 10,000 Dorothy White 1H has produced 605 MBOE (67% oil) in 34 months Norton Schaub 84TTTB33 WF 201H has produced 490 MBOE (66% oil) in 28 months Billy Burt 90TTTB33 WF 203H…
Recent Wolf Area 2nd Bone Spring Wells Much Improved 10,000 Dorothy White 82TTTB33 WF 126H has produced 130 MBOE (56% oil) in 16 months Dick Jay 92TTTB01 WF 124H has produced 105 MBOE (67% oil) in 7 months Dorothy White 82TTTB33…
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 Estimated Returns by Formation Formation Development Well Cost(1)(2) (millions) EUR(3) (MBOE) % Oil 2nd Bone Spring 4.0 - 5.0 450 600 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 Janie Conner 201H Wolfcamp A-XY B Banker 226H Wolfcamp A-XY 24 hr IP = 1,346 BOE/d (75% oil) 24 hr IP = 1,283 BOE/d (74% oil) Janie Conner 221H Wolfcamp B (Blair) 2016 YTD…
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 6 Wells Producing From 3 Zones on Multi-Well Pad West (Section 14) East (Section 13) INTER-Formational Stacked Pay 3 producing wells Multi-Well Pad 3 producing wells Gamma Ray 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 YE 2016 could result in 13.00/BOE net(1) 13.5 million total costs 9.00/BOE net(1) 10…
Rustler Breaks Wolfcamp A-XY Wells Performing Above Expectations Guitar 1024S28E RB 202H has produced 240 MBOE (76% oil) in 20 months 10,000 Tiger 1424S28E RB 204H has produced 280 MBOE (75% oil) in 16 months Dr. K 2423S27E RB 203H…
Rustler Breaks Wolfcamp B Wells Performing Above Expectations 10,000 Rustler Breaks 1224S27E 224H has produced 295 MBOE (40% oil) in 30 months Tiger 1424S28E RB 224H has produced 325 MBOE (40% oil) in 19 months Janie Conner 1324S28E…
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% Wolfcamp A-XY Wolfcamp B 240 140…
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) Pickard State RN 124H Gobbler 5 B2PM 1H - IP = 594 BOE/d (92% oil) - Tested 2,300 BOE/d (80% oil) Airstrip State Com…
Arrowhead/Ranger Inventory Multi-Well Development Potential Interval Development Well Costs(1)(2) EUR(3) %Oil (millions) (MBOE) Bone Spring 4.5 6.0 million 400 700 80 90% Wolfcamp 6.5 8.0 million 200 800* 80 85% * Based on…
Ranger Mallon 27 Fed Com 1H, 2H and 3H 7,300 3rd Bone Spring Laterals First operated wells on acreage acquired CXO Aircobra 12 State 2H 3,800 3rd Bone Spring Horizontal in 2015 merger with HEYCO Approximately 7,300 ft laterals…
Ranger Area Bone Spring Wells Continued Strong Performance 10,000 Ranger State 3320S35E RN 121H has produced 280 MBOE (91% oil) in 36 months Ranger State 3320S35E RN 122H has produced 110 MBOE (91% oil) in 18 months Pickard State…
Testing New Oil Shale Play in Twin Lakes Asset Area Pennsylvanian-Lower Wolfcamp D Oil Shale Porous Intervals 8% One of the primary source rocks for Twin Lakes asset area (43,500 gross and 31,300 net acres) Super-charged area…
Midstream
Longwood Gathering and Disposal Systems(1) in Delaware Basin Loving County, TX Natural gas gathering Water gathering Salt water disposal Oil gathering Cryogenic gas processing plant Sold to EnLink Eddy County, NM Natural gas…
Wolf Loving County, TX Significant Midstream Footprint Natural gas gathering Water gathering Salt water disposal Third salt water disposal well planned for Q4 2016 Oil gathering Matador Acreage Note: All acreage at October…
Rustler Breaks Eddy County, NM Repeating the Proven Wolf Model Natural gas gathering and compression 15 mile, 12-inch gathering line operational in Q2 2016 Cryogenic natural gas processing plant operational August 2016, on time and on…
Midstream Business Has Experienced Strong Growth in Recent Years Longwood Pipeline System Longwood Gathering Volumes (Miles) (Mcf/d of Natural Gas and Bbl/d of Oil/Water) 100 Longwood Gathering Volume 90 50,000 100,000 Poly Pipe…
Rustler Breaks Cryogenic Natural Gas Processing Plant 60 MMcf per day inlet capacity Operational as of late August 2016 Completed on time and on budget Processed 30 to 40 MMcf per day (on a gross basis) in first two months in…
Financial Update
Selected Operating and Financial Results Three Months Ended September 30, June 30, September 30, 2016 2016 2015 (1) Net Production Volumes: Oil production (MBbl) 1,376 1,230 1,161 Natural gas production (Bcf) 8.0 7.9 7.5 Total oil…
2016 Updated Capital Investment Plan Summary We will continue to focus on our Delaware Basin assets and opportunities with the intent of creating and preserving long-term shareholder value Continue to run 3-rig program throughout 2016…
Revised 2016 Capital Investment Plan(1) - Summary 2016E CapEx of 425 to 450 million adjusted from original guidance of 325 million(2) Decrease of 7 to 12% from 2015(3) Changes should allow Matador to (1) take advantage of further…
Revised 2016 Capital Investment Plan Summary At November 1, 2016, we estimate our capital expenditures in 2016 to be approximately 425 to 450 million (down 7 to 12% from 2015(1)) Increases primarily associated with land and midstream…
Matadors 2016 Delaware Basin Operated Drilling Plan: 3-Rig Case(1) TWIN LAKES Wolf/Loving Area 43,500 gross / 31,300 net acres 20 gross (17.4 net) wells planned for 2016 ARROWHEAD 18 gross (16.4 net) wells on production, including…
2016 Oil and Natural Gas Production and Adjusted EBITDA Estimates(1) Oil and Natural Gas Production 2016E Oil Production 2016E CapEx: D&C / Facilities: 245 - 255 MM 10% Estimated oil production of 4.9 to 5.1 million barrels…
Hedging Profile Added Hedges Since Q2 2016 Remainder of 2016 Hedges(1) Oil: 0.5 million barrels of oil hedged for remainder of 2016 at weighted average floor and ceiling prices of 42/Bbl and 61/Bbl, respectively 50% of oil hedged for…
Credit Agreement Status Strong, supportive bank group led by Royal Bank of Canada (group includes eight banks) Borrowing base increased from 300 million to 400 million on October 31, 2016 based on June 30, 2016 reserves and commodity…
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…
Summary and Updated 2016 Guidance (as Revised November 1, 2016) Continue to run 3 rigs in the Delaware Basin throughout 2016 (considering 4th rig at Rustler Breaks in December) Delaware Basin drilling expected to focus on Wolf and…
Appendix
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;…
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…
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…
Matador Has Made Tremendous Progress Since its IPO At IPO(1): Today(2) Difference February 7, 2012 414 Bbl/d 14,960 Bbl/d Oil Production (6% oil) (51% oil) +36-fold 27 MMBOE 102 MMBOE Proved Reserves (4% oil) (54% oil)…
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…
New Bit Technology Delivering Record Performance 8-3/4 Smith Bits XS616 New Eddy County Wolfcamp 8-3/4 drillout record set on Dr. Scrivner 208H 135 ft/hr ROP average in vertical hole to kick-off point 29% increase over 2016 YTD…
Dissolvable Technologies 3.625 I.D. Est. savings of over 45,000 by eliminating coiled tubing unit (CTU) drillout Substitute for conventional ball and seat frac plugs Large bore flow-through plug - 3.625 I.D. Ball and seat both…
Board of Directors Expertise and Stewardship Board Members Professional Experience Business Expertise - Vice President / Engineering and Co-founder, North Plains Energy, LLC Reynald A. Baribault Oil and Gas Exploration & - President…
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 EPS Reconciliation This investor presentation includes the non-GAAP financial measure of adjusted earnings (loss) per diluted common share. This non-GAAP item is measured as net income (loss) attributable to Matador Resources…
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