2017 Analyst Day Presentation Building Shareholder Value in the Northern Delaware Basin March 23, 2017 NYSE: MTDR
Selected Financial Measures Matador Resources Company (In thousands) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 Net (loss) income attributable to Matador Resources Company Shareholders (27,596) 7,153 6,194 3,941…
Welcome and Opening Remarks Joseph Wm. Foran Chairman and CEO
Todays Agenda Welcome and Opening Remarks Joseph Wm. Foran, Chairman and CEO Matador Operations and Delaware Basin Update Matthew V. Hairford, President David E. Lancaster, Executive Vice President and CFO Morning Break…
Matador Has Made Tremendous Progress Since its IPO At IPO(1): February 7, 2012 Today(2) Difference Value of Midstream Business Negligible 500 million Significant 414 Bbl/d 17,500 Bbl/d(3) Oil Production (6% oil) +42-fold (55%…
Delaware Basin Acreage and Asset Areas Introducing Antelope Ridge TWIN LAKES Permian acreage position includes 42,900 gross / 30,800 net acres 177,600 gross (101,400 net) leasehold and mineral acres, almost all in the Delaware Basin…
Committed to Maintaining Strong Balance Sheet Preserved and enhanced liquidity through December 2016 equity and senior notes offerings and February 2017 San Mateo midstream joint venture Substantial liquidity to execute planned…
Proven Management Team Experienced Leadership Industry Matador Management Team Background and Prior Affiliations Experience Experience Joseph Wm. Foran - Matador Petroleum Corporation, Foran Oil Company, 36 years Since Inception…
Matador Has Made Tremendous Progress Since its IPO At IPO(1): February 7, 2012 Today(2) Difference Value of Midstream Business Negligible 500 million Significant 414 Bbl/d 17,500 Bbl/d(3) Oil Production (6% oil) +42-fold (55%…
Delaware Basin Midstream Investments Have Created Significant Value San Mateo 250 Joint Venture Great Return on Midstream Investments +74 Performance 200 Incentives(4) CapEx for Assets Sold Loving County Plant(1) 150…
MTDRs Performance Has Reflected Our Progress Throughout the Cycle - MTDR among top 5 publicly traded E&P companies since February 2012 - Only 79 of 150 companies still publicly traded - Only 20 companies with positive returns Oil…
Matador Operations and Delaware Basin Update Matthew V. Hairford President David E. Lancaster Executive Vice President and CFO
Matador Resources Company Company Overview Market Capitalization(1) 2.3 billion Avg Daily Production Q4 2016(2) 30,000 BOE/d 27%* 18% of total production Oil (% total) 15,700 Bbl/d (52%) 36%* Almost no oil 37% of total natural…
Strong Track Record of Production and Reserves Growth Average Daily Oil Production Oil Reserves and Total Reserves (Bbl/d) (MMBbl and MMBOE, respectively) Start Delaware Program 13,924 12,306 Eagle Ford 9,095 Development…
Delaware Basin Now Most Significant Component of Matadors Production Oil Production Q4 2016 Total Production Q4 2016 Natural Gas Production Q4 2016 Delaware Basin comprised 69% of Matadors total production in Q4 2016,…
Significant Delaware Basin Production Growth in Last Three Years Total Production Oil Production Delaware Basin (MBOE) Delaware Basin (MBbl) BOE Production Oil Production Average Daily Total Production Average Daily Oil…
Favorable Finding and Development Costs Compared to Permian Peers Finding and Development Costs Drill Bit Only Finding and Development Costs All-in For the Year Ended December 31, 2016 (/BOE) For the Year Ended December 31, 2016…
Significant Transactions in Northern Delaware Basin Since Matador/HEYCO Merger in February 2015 Over 600,000 Net Acres WPX Energy Acquires RKI E&P Approx. 92,000 net acres EOG Acquires Yates Petroleum Approx. 186,000 net acres July…
Delaware Basin Acreage and Asset Areas Introducing Antelope Ridge TWIN LAKES Permian acreage position includes 42,900 gross / 30,800 net acres 177,600 gross (101,400 net) leasehold and mineral acres, almost all in the Delaware Basin…
Delaware Basin Acreage Position and Recent Operations and Results TWIN LAKES Running four rigs in Delaware 42,900 gross / 30,800 net acres Basin in Q1 2017; expect to add a fifth rig in Q2 going to ARROWHEAD Rustler Breaks 50,100…
Delaware Basin Inventory Continues to Increase Matador has identified up to 4,234 gross (1,784 net) potential locations(1) for future drilling (only locations yet to be drilled) on its Delaware Basin acreage net identified locations up…
2017 Operational Efficiencies Mitigate Increasing Service Costs 12.0 Efficiencies 12.0 Drilling and completion average costs for Wolfcamp wells drilled in Wolf asset area 11.0 44% 10.0 Service Costs Drilling and Completion…
Evolution of Matadors Delaware Basin Drilling Technology Managed Pressure Drilling Utilization of high torque mud motors safer - faster - diagnostic increase of 50% in daily footage Purpose built high tech rigs Cloud based data…
Technology Innovations and Continued Improvement in Best Practices Should Continue to Reduce Drilling Times in the Delaware Basin Wolfcamp A-XY Wells, Loving County, TX 2nd Bone Spring Wells, Lea County, NM 2014 Average 2014 Average…
Evolution of Delaware Basin Fracture Stimulation Design Gen 7 Eagle Ford frac design becomes Gen 3 Wolfcamp A design: Gen 1 Delaware Basin frac design 3,000 lbs/ft and tighter cluster spacing High temp diverting agents First high…
Continuing Evolution of Delaware Basin Frac Design Reservoir Specific 300 ft Gen 1 Gen 2 Gen 3 1st Bone 50 ft Spring 2,000 lbs/ft 1,333 lbs/ft 2,000 lbs/ft* 600 Mlbs 2nd Bone 40 Bbl/ft 20 Bbl/ft 40 Bbl/ft Spring 12,000 Bbl 50…
Latest Design Change Reduction in Perf Cluster Spacing 210 ft. Current Cluster Spacing 35 ft. Longer propped frac lengths 630 Mlbs 8,400 Bbl 40 Bbl/ft 3,000 lbs/ft High Density Cluster Spacing Length = 120 ft. Length =…
Improved Efficiencies in Hydraulic Fracturing Simultaneous Operations Wireline and fracturing operations conducted simultaneously on opposing and/or parallel wells Well A Can be done with multiple wellbores Used for fracturing…
Water Recycling Positively Impacts Both Completion and Production Operations Assists fresh water sourcing and improves Wolf Asset Area pricing Loving County, Texas Treated Water Transfer Line West Texas/New Mexico recycling…
Delaware Basin Asset Areas and 2017 Plans Matthew V. Hairford President David E. Lancaster Executive Vice President and CFO
The Strength of the Northern Delaware Basin: More Targets in the Thermal Maturity Window; Better Reservoir Rock N. S. Several of the better targets only occur in the Northern Delaware Basin, e.g., Wolfcamp A-X, Y and Z sand…
Rustler Breaks Asset Area Eddy County, New Mexico Jimmy Kone 223H Jimmy Kone 226H Dr. Scrivner 228H 24-hr IP: 2,033 BOE/d (29% oil) 24-hr IP: 2,252 BOE/d (25% oil) 24-hr IP: 2,570 BOE/d (31% oil) Asset Summary and Recent Highlights…
Rustler Breaks Asset Area: Target Optimization and New Potential New core and log data have helped to: 1. Optimize targeting in the Wolfcamp B (B Upper, B Middle and Blair), the Y Sand (Wolfcamp A) and the 2nd Bone Spring Sand (yellow…
Rustler Breaks Asset Area Improving Well Performance Wolfcamp A-XY (75% Oil) Wolfcamp B (35% Oil) 350 350 Average 2016 EUR 800 MBOE; several wells outperforming 900 MBOE type curve 300 300 Cumulative Production (MBOE)…
Rustler Breaks Asset Area Estimated Returns Development 2017E Operated EUR(3) Range Formation Well Cost(1)(2) % Oil Wells Online (MBOE) (millions) (Gross/Net)(4) Wolfcamp A-XY 5.5 6.5 600 900 70 80% 20 / 16.1 Wolfcamp B 5.5 6.5…
Rustler Breaks Asset Area Multi-Pay Development Potential Jimmy Kone 223H 24-hr IP: 2,033 BOE/d (27% oil) Jimmy Kone 226H 24-hr IP: 2,252 BOE/d (25% oil) Dr. Scrivner 228H 24-hr IP: 2,570 BOE/d (31% oil) Rustler Breaks Asset Area…
Rustler Breaks Asset Area 2017 Drilling Program RUSTLER BREAKS Rustler Breaks 2017 Drilling Program 31,900 gross / 17,800 net acres Continue delineation and improvement of completion designs in Wolfcamp A-XY, Wolfcamp B and 2nd…
Antelope Ridge Asset Area New Acreage and New Opportunities Bilbrey 33 Federal 4H Cabra Loca B3OB 1H Asset Summary and Highlights Devon Mewbourne 27 month cum: 300 MBOE (75% oil) 26 month cum: 271 MBOE (85% oil) Approximately 11,400…
Wolf and Jackson Trust Asset Areas Loving County, Texas Asset Summary and Recent Highlights WOLF / JACKSON TRUST (LOVING) 13,500 gross / 8,400 net acres Approximately 13,500 gross (8,400 net) acres Producing from four primary…
Wolf Asset Area: New Tests, Target Optimization and Future Potential New core and log data have helped to: 1. Identify at least two new targets in the Wolfcamp B and landing zones in both the Upper and Lower Avalon Plan to test the…
Wolf Asset Area Improving Well Performance Wolfcamp A-XY (65% Oil) 2nd Bone Spring (60% Oil) 400 200 2016 EURs typically between Most 2016 EURs approaching 700 MBOE; 800 and 900 MBOE 50% improvement over 2015 350 175 Cumulative…
Wolf Asset Area Matador Wolfcamp Results Among the Best Wells Drilled Top 1% Matador Average Well Top 10% in Top 20% - many above Matador Average Well Cumulative Frequency in Top 20% - many above 50% Probability…
Wolf Asset Area Estimated Returns Development 2017E Operated EUR(3) Range Formation Well Cost(1)(2) % Oil Wells Online (MBOE) (millions) (Gross/Net)(4) 2nd Bone Spring 4.5 5.0 500 700 60% 5 / 3.9 Wolfcamp A-XY 5.5 6.5 750 1,250…
Significant Improvement in Wolfcamp A-Lower Test at Jackson Trust Completed and placed on production the Totum 211H, the second Wolfcamp A-Lower in the Jackson Trust asset area, in early February 2017 The Totum 211H well is the best…
Wolf/Jackson Trust Asset Area Multi-Pay Development Potential WOLF / JACKSON TRUST (LOVING) Wolf/Jackson Trust Development Potential 13,500 gross / 8,400 net acres Over 400 gross potential drilling locations over 90% operated by…
Wolf/Jackson Trust Asset Areas 2017 Drilling Program Wolf/Jackson Trust 2017 Drilling Program Matador Acreage Continue delineation and improving completion designs in Wolf Asset Area Wolfcamp A-XY, Wolfcamp A-Lower and 2nd Bone…
Arrowhead and Ranger Asset Areas Eddy and Lea Counties, NM 2nd Bone Spring 3rd Bone Spring Wolfcamp A-Lower Wolfcamp D Baroque BTQ Fed Com 1H Airstrip 201H Yates Petroleum (EOG) Matador Tested 1,300 BOE/d (86% oil) 24-hr IP: 926 BOE/d…
3rd Bone Spring Opportunities Near Mallon Leasehold 3rd Bone Spring Potential Near Mallon Leasehold Matador Acreage Aircobra 12 State 2H Concho Strong 3rd Bone Spring offset well production near Mallon Estimated EUR: 700 MBOE (91%…
Additional 3rd Bone Spring Sand Potential in the Northern Delaware Basin Thick Additional 3rd Bone Spring Potential 0 500 ft Mallon wells confirm potential of 3rd Bone Mallon wells Spring sand in the Northern Delaware Basin…
Ranger/Arrowhead Asset Areas Estimated Returns Development 2017E Operated EUR(3) Range Formation Well Cost(1)(2) % Oil Wells Online (MBOE) (millions) (Gross/Net)(4) 2nd Bone Spring 5.0 6.0 500 700 85 95% 7 / 5.6 3rd Bone Spring…
Ranger Asset Area Multi-Well Development Potential Ranger Development Potential Iggles State Com 1H Airstrip 201H Concho Matador Tested 1,300 BOE/d (90% oil) 24-hr IP: 926 BOE/d (97% oil) Over 400 gross potential drilling locations…
Arrowhead Asset Area Multi-Well Development Potential Matador Acreage Arrowhead Development Potential Approximately 850 gross potential drilling locations CTA State 3H, 4H, 5H & 6H approximately 40% potentially operated by Matador…
Ranger and Arrowhead Asset Areas 2017 Drilling Program 2nd Bone Spring 3rd Bone Spring Wolfcamp A-Lower Wolfcamp D Baroque BTQ Fed Com 1H Airstrip 201H Yates Petroleum (EOG) Matador Tested 1,300 BOE/d (86% oil) 24-hr IP: 926 BOE/d…
Testing New Oil Shale Play in Twin Lakes Asset Area Lea County, NM Pennsylvanian-Lower Wolfcamp D Oil Shale Porous Intervals 8% Super-charged area having produced 1.3 billion Bbl oil and 2.2 trillion cubic feet natural gas Wolfcamp D…
Matadors 2017 Eagle Ford Operated Drilling Plan Drill and complete 5 gross (5.0 net) operated Eagle Ford shale wells in 2017 to maintain and enhance this valuable asset Returns comparable to Delaware Basin opportunities Run one…
Haynesville Shale, North Louisiana Natural Gas Bank 2016 Haynesville Non-Op Program Elm Grove Development Chesapeake Operated 11 gross (2.1 net) wells turned to sales by Anticipated Chesapeake in early 2016 Future Wells Included 9…
Midstream Operations and 2017 Plans Matthew V. Hairford President Matthew D. Spicer Vice President and General Manager of Midstream NYSE: MTDR
Longwood Gathering and Disposal Systems(1) San Mateo Midstream, LLC Wolf Loving County, TX Natural gas gathering Water gathering Salt water disposal Oil gathering Rustler Breaks Eddy County, NM Natural gas gathering Natural…
Midstream Joint Venture Overview February 2017 Equity: Owns 51% equity interest Equity: Owns 49% equity interest Special Distribution: Received 171.5 million Contribution: Contributed 171.5 million plus capital commitment of 73.5…
San Mateo Operations and Assets Wolf Loving County, TX Rustler Breaks Eddy County, NM - Natural gas gathering - Natural gas gathering and compression - Water gathering - Cryogenic natural gas processing plant - Salt water disposal -…
San Mateo Initiatives Expected to Enhance Shareholder Value San Mateo (formed February 2017) allows Matador to retain operational control over its Delaware Basin midstream business while enhancing its ability to unlock and capture…
San Mateo Significant Growth Opportunities Ahead Currently gathering over 75 MMcf/d and processing over 50 MMcf/d of natural gas; generating over 3,000 Bbl/d of natural gas liquids Currently transporting and disposing up to 70,000…
2017 Capital Investment Plan March 23, 2017 NYSE: MTDR
Strong Financial Position and Significant Liquidity Entering 2017 Strong, supportive bank group led by Royal Bank of Canada Estimated 2017 liquidity of more than 1 billion pro forma to January 1 following midstream joint venture…
Committed to Maintaining Strong Balance Sheet Preserved and enhanced liquidity through December 2016 equity and senior notes offerings and February 2017 San Mateo midstream joint venture Substantial liquidity to execute planned…
Continued Strong Balance Sheet Metrics Relative to Peers(1) Net Debt / 2016 Adjusted EBITDA(2) 6.0x Better 5.0x 4.8x 4.0x 3.0x 2.8x 2.4x 2.1x Peer Median (excl. MTDR): 1.9x 2.0x 1.7x 1.5x (3)(4) 1.3x 1.2x…
2017 Updated Capital Investment Plan Summary We plan to continue to focus on our Delaware Basin assets and opportunities in 2017, and 93% of our capital is expected to be invested there Operating four rigs in the Delaware Basin in Q1…
Matadors 2017 Delaware Basin Operated Drilling Plan TWIN LAKES 42,900 gross / 30,800 net acres Wolf/Jackson Trust 18 gross (12.6 net) wells in progress for 2017 ARROWHEAD 16 gross (11.6 net) wells turned to sales, including 50,100…
2017 Capital Investment Plan Summary 2017E CapEx(1) 456 to 484 million 2017E D/C/E CapEx of 400 to 420 million (Delaware: 4 rigs in Q1 and 5 rigs in Q2 Q4; Eagle Ford: 5 wells total) Includes a 10 to 15% increase in expected well…
Detail of 2017 Estimated Capital Expenditures 2017 Anticipated 2016 Drilled, 2017 Anticipated Drilling, 2017 Anticipated Drilling & 2018 Anticipated 2017 Anticipated Completion(1) Completion Completion(2) First Sales(2) 2017E CapEx…
2017 Oil and Natural Gas Production Estimates(1) Total Oil and Natural Gas Production 2017E Oil Production 38% Growth YoY (Delaware: 4 rigs in Q1 and 5 rigs in Q2 Q4; Eagle Ford: 5 wells total) 2017E CapEx(2) (Midpoint): Estimated oil…
2017 Revenues and Adjusted EBITDA Estimates(1) 2017E Oil and Natural Gas Revenues and Adjusted EBITDA(2) Oil and Natural Gas Revenues Revenues and Adjusted EBITDA(2) positively impacted by higher estimated 2017 production and realized…
Looking Ahead to 2018 Two Potential Scenarios Annual Oil Production (MMBbl) Scenarios for 2018 2018E D/C/E CapEx(3) of 375 to 450 million Scenario 1: Maintain 5 operated drilling rigs in the Delaware Basin throughout 2018 Scenario…
Hedging Profile Remainder of 2017 Hedges(1) Oil: 3.7 million barrels hedged for remainder of 2017 at weighted average floor and ceiling prices of 45/Bbl and 56/Bbl, respectively Natural Gas: 18.8 Bcf hedged for remainder of 2017 at…
Midstream Segment Reporting Impact on Consolidated Income Statement In Q3 2016, Matador began reporting its midstream operations as a separate segment as illustrated below. Figure also illustrates pro forma impact of San Mateo joint…
Summary and Updated 2017 Guidance (as Revised March 23, 2017) Plan to run 4 rigs in the Delaware Basin in Q1 2017 and 5 rigs in the Delaware Basin from Q2 through Q4 of 2017 3 rigs in Rustler Breaks, 1 rig in Wolf/Jackson Trust and 1…
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, 36 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 EBITDA Reconciliation San Mateo Midstream, LLC(1) The following table presents the calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and net cash provided…
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