2018 Analyst Day Presentation Continuing to Deliver Shareholder Value in the Northern Delaware Basin March 6, 2018 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) incom e attributable to Matador Resources Com pany Shareholders (27,596) 7,153 6,194 3,941…
Welcome and Opening Remarks Joseph Wm. Foran Chairman and CEO NYSE: MTDR
Todays Agenda Welcome and Opening Remarks Joseph Wm. Foran, Chairman and CEO Operations and Delaware Basin Update Matthew V. Hairford, President David E. Lancaster, Executive Vice President and CFO Morning Break San Mateo…
Matador Has Made Tremendous Progress Since its IPO We Do What We Say We Will Do At IPO(1): February 7, 2012 Today(2) Difference Share Price 12.00 30.97(3) +158% Oil Price 98.41 62.57(4) -36% 414 Bbl/d 24,700 Bbl/d Oil…
MTDRs Performance Has Reflected Our Progress Throughout the Cycle 500 - MTDR among top three publicly traded E&P companies since February 2012 - Only 50% of companies are still publicly traded 450 - Only 20 companies with positive…
What Did Shareholders Get For Their Investment in MTDR in 2017 Midstream Investments Creating Significant Value 2016(1) 2017(1) Formed San Mateo joint venture with Five Point(2) Matador received 171.5 million initially and owns 51%…
Significant Delaware Basin Production Growth in Last Four Years Total Production Oil Production Delaware Basin (MBOE) Delaware Basin (MBbl) BOE Production Oil Production Average Daily Total Production Average Daily Oil…
Significant Growth In Proved Reserves For Shareholders 200.0 Proved Reserves, BOE/Share MTDR Shares(1) and Proved Reserves (BOE)(2), Millions 1.75 180.0 1.50 160.0 1.25 (Total Proved Reserves + Production)/Share 140.0…
San Mateo Asset Overview Gas Gathering and Processing Water Gathering and Disposal Oil Gathering and Transportation 60 MMcf/d natural gas cryogenic 6 salt water disposal wells and 44 miles 2 miles of oil gathering pipeline in…
Significant Growth in Delaware Midstream Business in Last Three Years Q4 2015 Q4 2016 Q4 2017 Growth(1) Designed Water Disposal 25,000 Bbl/d 70,000 Bbl/d 160,000 Bbl/d 6.4x Capacity Average Water Disposed 23,000 Bbl/d 49,000 Bbl/d…
San Mateo Plans to Expand Oil Gathering and Transportation System Through Strategic Relationship with Plains(1) Gathering and Transportation System: San Mateo continues Long-Haul Transportation: Plains intends to construct a…
2018 Guidance(1) (as Provided February 21, 2018) Updated Actual %YoY 2017 Guidance(2) 2017 Results 2018 Guidance(1) Change(3) D/C/E CapEx 440 to 465 million 493 million 530 to 570 million + 12% Midstream CapEx(4) 66 to 74…
Operations and Delaware Basin Update Matthew V. Hairford President David E. Lancaster Executive Vice President and CFO NYSE: MTDR
Matador Resources Company Company Overview Market Capitalization(1) 3.4 billion Avg Daily Production Q4 2017(2) 43,700 BOE/d 46%* 10% of total production Oil (% total) 24,700 Bbl/d (56%) 57%* Almost no oil 23% of total natural…
Strong Track Record of Production and Reserves Growth Average Daily Oil Production(1) Oil Reserves and Total Reserves(1) (Bbl/d) (MMBbl and MMBOE, respectively) Start Delaware Program 21,510 13,924 Eagle Ford 12,306…
Delaware Basin Now Most Significant Component of Matadors Production Oil Production Q4 2017 Total Production Q4 2017 Natural Gas Production Q4 2017 Delaware Basin comprised 80% of Matadors total production in Q4 2017,…
Favorable Finding and Development Costs Compared to Permian Peers Finding and Development Costs Drill Bit(1) Finding and Development Costs All-in For the Three Years Ended December 31, 2017 (/BOE) For the Three Years Ended December…
Quality Acreage Additions in Key Asset Areas Throughout 2017 TWIN LAKES Permian acreage position includes 46,100 gross / 34,400 net acres 199,600 gross (114,000 net) acres, almost all in the Delaware Basin ARROWHEAD 56,600 gross /…
Delaware Basin Acreage Position and Recent Operations and Results TWIN LAKES 46,100 gross / 34,400 net acres Running six rigs in Delaware Basin Cimarex State LF 32-5 2H Wolfcamp D test at Twin Lakes expect to run six rigs throughout…
Delaware Basin Inventory Continues to Increase Matador has identified up to 4,630 gross (1,958 net) potential locations(1) for future drilling (only locations yet to be drilled) on its Delaware Basin acreage net identified locations up…
Permian Basin Production Growth Compares Favorably vs. Peers Total Production Oil Production Delaware Basin (MBOE) Delaware Basin (MBbl) BOE Production Oil Production Permian Production Growth per Debt-Adjusted Share vs. Permian…
Drilling Cost Savings Potential in 2018 Areas of Potential Savings 3,100,000 3.0 Million(1) (budget) Pad Construction 3,000,000 80,000 Rig Trucking 2,900,000 65,000 Batch Drilling 2,800,000 100,000 Efficiency Gains…
Continuing to Drill Wells More Efficiently 1,200 84 In 2017, Matador Drilled Over One Million Feet at 77 the Fastest ROP(1) Achieved by the Company 1,030 72 72 1,000 60 60 800 Rate of Penetration, ft/hr Drilling Footage,…
Taking Operations to the Next Level: MAXCOM(1) MAXCOM Matador team dedicated to real-time drilling operations support 24/7 Interdisciplinary team approach incorporates drilling, geosteering, completions and production Uses…
Efficiency Improvements in Completion Operations 1,400 2,000 Two Key Factors Driving 2017 Efficiency(1) 1,800 1,200 4-fold increase 44% in multi-well pads Total Proppant Usage (million lbs) 3-fold increase in 2nd crew…
Delaware Basin Fracture Stimulation Continuing to Evolve Planned improvements for 2018 fracture stimulation operations Rustler Breaks Wolfcamp B cluster 40/70 sand test in Wolfcamp A-XY efficiency testing Resin coated proppant in…
Matador Delaware Basin Frac Design Evolution Reservoir Specific Gen 1 Gen 2 Gen 3 Testing 2,000 lbs/ft 1,333 lbs/ft 2,000 lbs/ft 3,000 lbs/ft 40 Bbl/ft 20 Bbl/ft 40 Bbl/ft 40 Bbl/ft 50 ft cluster 75 ft cluster 50 ft cluster 35 ft…
Increasing Use of Recycled Water in Stimulation Operations 2015 Implemented Delaware Basin Creates significant source of frac water with water recycling program ability to treat 50,000 Bbl/day at single site 44% YE 2017 Have…
Completion Cost Savings Potential in 2018 Areas of Potential Savings 3,600,000 3.5 Million(1) Simultaneous (budget) Operations 3,500,000 3,400,000 200,000 Regional Sand 3,300,000 160,000 3,200,000 Recycled Water 3,100,000…
Drilling and Completion Cost Savings Potential in 2018 7,000,000 6.5 Million(1) (budget) Drilling 6,500,000 450,000 Completion 6,000,000 725,000 5,500,000 5.3 Million (assuming maximum 5,000,000 Up to 1.2…
Delaware Basin Asset Areas and 2018 Plans Matthew V. Hairford President David E. Lancaster Executive Vice President and CFO NYSE: MTDR
Expanding Opportunities in the Northern Delaware Basin Matador has been identifying new opportunities in the Northern Delaware Basin and has tested, or participated in testing, 16 discrete intervals across its acreage position 35
Rustler Breaks Asset Area Eddy County, New Mexico Michael Collins 206H Miss Sue 202H Charlie Sweeney 204H 24-hr IP: 1,312 BOE/d (77% oil) 24-hr IP: 1,343 BOE/d (78% oil) 24-hr IP: 1,188 BOE/d (75% oil) Asset Summary and Recent…
Rustler Breaks Asset Area Delivering Strong and Consistent Results Wolfcamp A-XY (75% Oil) Wolfcamp B (35% Oil) Average 2017 EUR 850 MBOE; 40% Wolfcamp B wells providing of 2017 wells outperforming 900 MBOE consistent results; some…
Rustler Breaks Excellent Wolfcamp A-XY Results from Northwest Acreage Northwest Rustler Breaks Wolfcamp A-XY wells Excellent results from the Wolfcamp A-XY wells drilled and completed in 2017 in Northwest Rustler Breaks EURs from…
Rustler Breaks Asset Area Estimated Returns 2018 Estimated EUR(3) Range Formation Well Cost(1)(2) % Oil (MBOE) (millions) Wolfcamp A-XY 6.5 - 7.5 600 900 70 80% Wolfcamp B 7.0 - 8.0 1,000 1,200 30 40% Rustler Breaks Wolfcamp…
Rustler Breaks Asset Area: Break Sand Potential Thickness (ft.) Break Sand Potential Exciting new potential horizontal target High quality sand within Third Bone Spring Carbonate with 12% porosity Matador recently participated…
Rustler Breaks Asset Area Multi-Pay Development Potential Michael Collins 206H 24-hr IP: 1,312 BOE/d (77% oil) Miss Sue 202H Charlie Sweeney 204H Rustler Breaks Asset Area Development Potential 24-hr IP: 1,343 BOE/d (78% oil) 24-hr IP:…
Rustler Breaks Asset Area 2018 Drilling Program Rustler Breaks 2018 Drilling Program RUSTLER BREAKS 41,000 gross / 21,200 net acres Planning to run 3 rigs; primary focus on Wolfcamp A-XY and Wolfcamp B intervals Expected to drill and…
Antelope Ridge Asset Area Off to a Strong Start Tour Bus 23 St 502H Asset Summary and Highlights EOG 15 month cum: 195 MBOE (82% oil) Approximately 12,000 gross (8,900 net) acres in area of Gettysburg St Com 1H strong industry well…
Antelope Ridge Asset Area Estimated Returns Estimated 2018 EUR(3) Range Formation Well Cost(1)(2) % Oil (MBOE) (millions) Wolfcamp A (All Targets) 7.5 - 8.5 700 900 75 85% Antelope Ridge Wolfcamp A (All Targets) 80% Oil 200…
Antelope Ridge Asset Area Multi-Pay Development Potential Tour Bus 23 St 502H Antelope Ridge Asset Area Development Potential EOG 15 month cum: 195 MBOE (82% oil) Over 500 well locations almost 70% potentially operated Gettysburg St…
Antelope Ridge Asset Area 2018 Drilling Program Tour Bus 23 St 502H Antelope Ridge 2018 Drilling Program EOG 15 month cum: 195 MBOE (82% oil) Planning to run one rig throughout 2018 Gettysburg St Com 1H Concho ANTELOPE RIDGE 27…
Wolf and Jackson Trust Asset Areas Loving County, Texas WOLF / JACKSON TRUST Asset Summary and Recent Highlights 13,600 gross / 9,400 net acres Approximately 13,600 gross (9,400 net) acres Toot 211H Successfully tested five…
Wolf and Jackson Trust Asset Areas Consistent Well Performance Wolf Area Wolfcamp A-XY (65% Oil) Jackson Trust Wolfcamp A-Lower (80% Oil) 350 300 Most 2017 Wolfcamp A-XY Totum 211H wells have less than 3 to 4 outperforming type…
Wolf Asset Area Longer Lateral Well Performance 400 24-hour initial potential tests from longer laterals in the Wolf asset area are typically similar to wells with Impact of offset frac 350 completed lateral lengths of less than one…
Wolf and Jackson Trust Asset Areas Estimated Returns 2018 Estimated EUR(3) Range Formation Well Cost(1)(2) % Oil (MBOE) (millions) Wolfcamp A-Lower 7.0 8.0 750 1,000 80% Wolfcamp A-XY 6.5 7.5 750 1,250 65% Wolf Wolfcamp A-XY…
Barnett 224H Successful Initial Wolfcamp B Test in Wolf Asset Area Barnett 224H well completed and turned to sales in early Barnett 224H Well performance essentially Total Production, BOE/d August 2017 Matadors first Wolfcamp B…
Wolf Asset Area Exploration, Development and Optimization 1/2-mile One pilot well and six horizontal wells, all targeting different intervals, have been drilled and completed in the eastern half of the Barnett leasehold Pilot well…
Wolf and Jackson Trust Asset Areas Multi-Pay Development Potential WOLF / JACKSON TRUST Wolf/Jackson Trust Development Potential 13,600 gross / 9,400 net acres Over 400 gross potential drilling locations(1) 100% operated by…
Wolf and Jackson Trust Asset Areas 2018 Drilling Program Planning to run one rig throughout 2018 primary focus on Wolfcamp A-XY interval in Wolf asset area Wolf Asset Area Conduct first tests of Wolfcamp B interval in Jackson Trust…
Arrowhead and Ranger Asset Areas Eddy and Lea Counties, NM 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-XY Wolfcamp A-Lower Wolfcamp D Airstrip 132H Leo 15 B2DH Fed 1H Matador Mewbourne 24-hr IP: 1,263 BOE/d (93% oil) 307…
Matadors Mallon Wells Among the Best Bone Spring Wells in New Mexico 3rd Bone Spring Airstrip 132H 3rd Bone Spring Potential Near Mallon Leasehold Matador Matador Acreage 24-hr IP: 1,263 BOE/d (93% oil) Mallon wells continue to be…
Arrowhead Asset Area: Initial Stebbins 2nd Bone Spring Tests Successful 2nd Bone Spring Stebbins Leasehold Offers Multiple Opportunities Matador Acreage Baroque BTQ Fed Com 1H Yates Petroleum (EOG) Approximately 2,500 gross…
Arrowhead and Ranger Asset Areas Estimated Returns Development EUR(3) Range Formation Well Cost(1)(2) % Oil (MBOE) (millions) 2nd Bone Spring 6.0 7.0 600 800 70 90% 3rd Bone Spring 6.5 7.5 500 700 85 95% Arrowhead 2nd Bone…
Arrowhead Asset Area Multi-Well Development Potential 2nd Bone Spring 3rd Bone Spring Arrowhead Development Potential Approximately 920 gross potential drilling locations(1) approximately 45% potentially operated by Matador(2) CTA…
Ranger Asset Area Multi-Well Development Potential Matador Acreage Ranger Development Potential Iggles State Com 1H Over 500 gross potential drilling locations(1) Concho Airstrip 132H Tested 1,300 BOE/d (90% oil) Matador…
Arrowhead and Ranger Asset Areas 2018 Drilling Program 2nd Bone Spring 3rd Bone Spring Wolfcamp A-XY Airstrip 132H Gobbler 5 B2PM 1H Matador Mewbourne 24-hr IP: 1,263 BOE/d (93% oil) Tested 2,300 BOE/d (80% oil) 95 MBOE (92% oil) in…
Twin Lakes Asset Area Lea County, New Mexico D. Culbertson State 234H Olivine 5-16-37 TL State 1 State LF 30 4H (producing) Proposed NE Kemnitz 233H Reed 24 25 B State 1H (permit) Matador, Wolfcamp D Matador (Vertical Strawn…
Eagle Ford and Haynesville Asset Areas NYSE: MTDR
Matadors 2017 Eagle Ford Operated Drilling Program Successful Drilled and completed five gross (5.0 net) operated Eagle Ford shale wells and participated in three gross (0.8 net) non-operated Eagle Ford shale wells in 2017 Picked up…
Haynesville Shale, North Louisiana Natural Gas Bank Elm Grove Development Chesapeake Operated 2017 Haynesville Non-Op Program Participated in 11 gross (0.6 net) Haynesville wells in 2017 Chesapeakes three Blount wells (Matador…
San Mateo Midstream Operations and Plans Matthew V. Hairford President
Significant Growth in Delaware Midstream Business in Last Three Years Q4 2015 Q4 2016 Q4 2017 Growth(1) Designed Water Disposal 25,000 Bbl/d 70,000 Bbl/d 160,000 Bbl/d 6.4x Capacity Average Water Disposed 23,000 Bbl/d 49,000 Bbl/d…
San Mateo Natural Gas Gathering and Processing System Overview System Overview Black River Processing Plant has a designed natural gas processing capacity of 60 MMcf/d - During Q4 2017, San Mateo processed an average of 64 MMcf/d -…
San Mateo Water Gathering and Disposal System Overview System Overview Current designed salt water disposal capacity of 160,000 Bbl/d - Six disposal wells three in Rustler Breaks asset area and three in Wolf asset area - 44 miles…
San Mateo Midstream Overview Formed February 2017 Equity: Owns 51% equity interest Equity: Owns 49% equity interest Special Distribution: Received 171.5 million Contribution: Contributed 171.5 million plus initial capital…
San Mateo Plans to Expand Oil Gathering and Transportation System Through Strategic Relationship with Plains(1) Gathering and Transportation System: San Mateo continues Long-Haul Transportation: Plains intends to construct a…
San Mateo Initiatives Expected to Enhance Shareholder Value San Mateo allows Matador to retain operational control over its Delaware Basin midstream business while enhancing its ability to unlock and capture significant value as a…
Marketing Overview Matthew V. Hairford President NYSE: MTDR
Crude Oil Marketing Overview Plains to connect to San Mateos crude oil system currently under construction in Eddy County, NM and enhance existing interconnect in Loving Central Delivery Points County, TX Market optionality into…
Natural Gas Marketing Overview Black River Processing Plant Matador has sufficient firm capacity for existing production and expected production volumes from future drilling Matador currently sells residue gas at EnLinks Lobo Plant…
Natural Gas Liquids Marketing Overview Matador Resources Acreage Matador expects to flow NGLs on EPICs Black River Processing Plant Y-Grade pipeline in March 2018 EPIC Y-Grade Pipeline BP Energy Company expected to continue San Mateo…
2018 Capital Investment Plan David E. Lancaster Executive Vice President and CFO NYSE: MTDR
Strong Financial Position and Significant Liquidity Entering 2018 Strong, supportive bank group led by Royal Bank of Canada Estimated 2018 liquidity of almost 1.25 billion pro forma to January 1, 2018 following increase in borrowing…
Committed to Maintaining Strong Balance Sheet Preserved and enhanced liquidity through October 2017 equity offering and February 2017 San Mateo midstream joint venture. Strong financial position and well-funded to execute our 2018…
Matadors Debt Profile Among the Best Relative to Peers(1) Net Debt / 2017 Adjusted EBITDA(2)(3) 7.0x 6.0x 5.7x Better 5.0x 4.0x 3.8x 3.2x 3.0x 2.7x Peer Median (excl. MTDR): 2.6x 2.5x 2.4x 2.3x 2.0x 1.6x 1.6x…
2018 Capital Investment Plan Summary We plan to continue to focus on our Delaware Basin assets and opportunities in 2018 and almost all of our capital is expected to be invested there Expect to operate six rigs in the Delaware Basin…
Matadors 2018 Delaware Basin Operated Drilling Program TWIN LAKES Rustler Breaks 46,100 gross / 34,400 net acres 51 gross (39.0 net) wells in progress for 2018 42 gross (33.9 net) wells turned to sales, including 1 28 Wolfcamp A, 8…
2018 Capital Investment Plan Summary 2018E CapEx(1) 600 to 660 million 2018E D/C/E CapEx of 530 to 570 million (Delaware: six rigs throughout 2018; one rig will drill two SWDs for San Mateo) Includes a 10% increase in expected well…
2018 Capital Expenditures Well Spud and Completion Detail 2018 Anticipated 2017 Drilled, 2018 Anticipated Drilling, 2018 Anticipated Drilling & 2019 Anticipated 2018 Anticipated Completion(1) Completion Completion(2) First Sales(2)…
2018 Oil and Natural Gas Production Estimates(1) Total Oil and Natural Gas Production 2018E Oil Production 26% Growth YoY 2018E CapEx(2) (Midpoint): D/C/E: 550 MM Natural Gas, Bcf Estimated oil production of 9.7 to 10.1 million…
2018 Revenues and Adjusted EBITDA Estimates(1) 2018E Oil and Natural Gas Revenues and Adjusted EBITDA(2) Oil and Natural Gas Revenues Revenues and Adjusted EBITDA(2) positively impacted by higher estimated 2018 production and higher…
Looking Ahead to 2019 Two Potential Scenarios Annual Oil Production (MMBbl) Scenarios for 2019 2019E D/C/E CapEx(3) of 575 to 650 million Scenario 1: Maintain 6 operated drilling rigs in the Delaware Basin throughout 2019 Scenario…
Credit Agreement Status Borrowing Base Increased to 725 million Strong, supportive bank group led by Royal Bank of Canada (group includes eight banks) Borrowing base increased to 725 million in early March 2018 based on December 31,…
Hedging Profile Remainder of 2018 Hedges(1) Oil (WTI) Costless Collars: 2.4 million barrels hedged for remainder of 2018 at weighted average floor and ceiling prices of 44/Bbl and 60/Bbl, respectively Oil (WTI) Costless Participating…
Summary and 2018 Guidance (as Provided on February 21, 2018) Plan to run 6 rigs in the Delaware Basin throughout 2018 Three rigs in Rustler Breaks, one rig in Antelope Ridge, one rig in Wolf/Jackson Trust and one rig in…
San Mateos Impact on Consolidated Income Statement For the Year Ended (Figures in thousands) December 31, 2017 Net (loss) income 138,007 Net (income) loss attributable to non-controlling interest in subsidiaries (12,140) Net…
Summary; Q&A NYSE: MTDR
2018 Analyst Day Presentation March 6, 2018 NYSE: MTDR
Appendix NYSE: MTDR
Board of Directors Expertise and Stewardship Board Members Professional Experience Business Expertise - Vice President / Engineering and Co-founder, NP Resources, LLC Reynald A. Baribault Oil and Gas Exploration & - President and CEO,…
Special Board Advisors and Special Advisors Expertise and Stewardship Advisors Professional Experience Business Expertise - Retired President, ARCO International Marlan W. Downey - Former President, Shell Pecten International Oil and…
Proven Management Team Experienced Leadership Industry Matador Management Team Background and Prior Affiliations Experience Experience Joseph Wm. Foran - Matador Petroleum Corporation, Foran Oil Company, 37 years Since Inception…
Proven Management Team Experienced Leadership (Cont.) Industry Matador Management Team Background and Prior Affiliations Experience Experience Matthew D. Spicer - L-3 Technologies, United States Marine Corps 4 years Since 2014 VP…
Adjusted EBITDA Reconciliation This investor presentation includes the non-GAAP financial measure of Adjusted EBITDA. Adjusted EBITDA is a supplemental non- GAAP financial measure that is used by management and external users of the…
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,…
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