Second Quarter 2020 Earnings Release July 28, 2020
Chairmans Remarks July 28, 2020
SLIDE A Promising Results for Second Quarter 2020 Oil production of 43,100 Bbl/d, up 17% from 36,800 Bbl/d in Q2 2019 Record Quarter Strong Production Natural gas production of 181.4 MMcf/d, up 23% from 147.1 MMcf/d in Q2 2019 Above…
SLIDE B A Step Change in Capital Efficiency: Updated 2020 Expectations(1) Average Lateral Length and % of Longer Laterals CapEx per Foot(2) and Lateral Footage Turned to Sales 100% 600,000 1,700 Lateral Feet Turned to Sales 83%…
SLIDE C Elements of 2020 Cost Savings & Cash Flow Enhancements 355 Million Potential Improvement vs. Original Guidance Cost Savings + Cash Enhancements Already Realized YTD ( in millions) Expected Remaining Cost Savings + Cash…
SLIDE D Rustler Breaks Asset Area Eddy County, New Mexico RUSTLER BREAKS Asset Summary and Highlights 47,900 gross / 26,700 net acres Approximately 47,900 gross (26,700 net) acres Acreage Producing from 12 different intervals…
SLIDE E Delaware Basin Multi-Year Inventory of A+ Locations Future drilling locations with a projected minimum 15% rate of return at 30/Bbl WTI oil pricing and 1.75/Mcf gas pricing A+ 90% of Matadors remaining 2020 oil production is…
SLIDE F 2020 Priorities Protecting the Balance Sheet is First Priority Balance Sheet Improvements Significant 2020 Milestones - Timeline 1 Reducing Rig Count from 6 to 3 rigs Q3 2020 and Beyond 1 First Rodney Robinson wells turned…
SLIDE G Revolver Borrowings Outstanding Quarterly Estimates for H2 2020 ( in millions) Borrowing Base 200 million Elected Commitment 180 million Net Debt/ LTM Adjusted EBITDA(1)(2): 2.2x 2.5x 3.0x 3.4x Realized Oil…
SLIDE H Strong, Organic Growth Coupled With Peer-Leading Financial Returns Total MMBOE Proved Reserves Growth(1) E&P and Total Return on Capital Employed(2) 3-Year Average (YE2018 to YE2019) (2017 to 2019) MTDR Peer 6 28% 17% Peer…
Operational and Financial Results July 28, 2020
Q2 2020 Selected Operating and Financial Results Three Months Ende d June 30, March 31, June 30, 2020 2020 2019 (1) Net Production Volumes: Oil (MBbl) 3,920 3,697 3,346 Natural gas (Bcf) 16.5 16.7 13.4 Total oil equivalent (MBOE)…
A Tightly Integrated Strategy: Growing E&P and Midstream Together Average Daily Total Production Average Daily Total Delaware Production (BOE/d) Delaware Basin (BOE/d) BOE up 3% sequentially; up 20% YoY BOE up 10% sequentially; up 28%…
Delaware Basin Continuing to Deliver Strong Well Results Matador Acreage Reduced operated rigs in Delaware Basin TWIN LAKES 43,900 gross / 24,500 net acres from six to three by the end of Q2 2020 During remainder of 2020: Stateline:…
Matador Federal Acreage and Permitting Update Delaware Leasehold Federal Leasehold % of Delaware At June 30, 2020, Delaware Asset Area County (net acres) (net acres) Leasehold Matador held Antelope Ridge Lea 16,300 8,500 7%…
Wells Completed and Turned to Sales Q2 2020 During Q2 2020, Matador completed and turned to sales 13 gross (8.3 net) wells in its various operating areas, including 11 gross (8.3 net) operated wells and two gross…
Significant Growth in All Parts of San Mateos Delaware Midstream Business (51% Owned by Matador) San Mateo Average Water Disposal San Mateo Average Natural Gas Gathering(1) (MBbl/d) (MMcf/d) 250 300 Up 7% sequentially; 217 Down 3%…
San Mateo Recent Highlights and Performance March 2020 10th commercial SWD well in Eddy County, NM online Total of 13 commercial SWD wells in Eddy County, NM and Loving County, TX with 335,000 Bbl/d of designed disposal capacity…
Hedging Profile Remainder of 2020, 2021 and 2022 Remainder of 2020, 2021 and 2022 Hedges(1) Oil (WTI) Costless Collars: 1.8 million Bbl hedged for the remainder of 2020 at weighted average floor and ceiling prices of 48/Bbl and 66/Bbl,…
Updated Full Year 2020 Guidance July 28, 2020
Summary and Updated 2020 Guidance (as Provided on July 28, 2020) Six rigs operating in the Delaware Basin dropping to three expect 53 gross (45.2 net) operated wells in 2020 Released one rig at the end of March 2020 and released a…
Updated 2020 Capital Investment Plan Summary vs. Prior Guidance Prior 2020 CapEx Guidance(1)(2)(3) 565 million Updated 2020 CapEx Guidance(2)(3)(4) 565 million (Delaware: Moved from 6 to 3 operated rigs by end of Q2 2020) (Delaware:…
2020 Oil and Natural Gas Production Estimates(1) Total Oil and Natural Gas Production 2020E CapEx(1)(2) (Midpoint): Natural Gas, Bcf D/C/E: 470 MM Midstream(3): 95 MM Oil, MBbl 2020E Oil Production 11% Growth YoY Total: 565 MM…
Wells Completed and Turned to Sales 2020 Updated Guidance(1) During full year 2020, Matador expects to complete and turn to sales 93 gross (47.1 net) wells. Matador expects the Delaware Basin to account for 89 gross (47.1 net) wells,…
Wells Completed and Turned to Sales 2020 Updated Guidance(1) In 2020, Matador expects to continue transitioning its operations to longer laterals greater than one mile. 83% of Matadors gross operated horizontal wells completed and…
2020E Operating Cost Estimates (Unit Costs per BOE)(1) ( per BOE) Unit Cost Category 2020E Q2 2020 Q1 2020 2019 Production taxes, transportation and processing 2.75 to 3.25 2.82 3.35 3.82 Lease operating 4.25 to 4.75 3.92 4.77 4.85…
Appendix
Matador Resources and San Mateo I Credit Facilities Matador Credit Agreement Summary Bank group led by Royal Bank of Canada Elected Borrowings Letters of Credit Financial Covenant: Maturity Borrowing Last Reserves Facility Size…
Adjusted EBITDA Reconciliation This 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 Companys…
Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated 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…
Adjusted EBITDA Reconciliation Continued Matador Resources Company, Consolidated The following table presents our calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and…
Adjusted EBITDA Reconciliation San Mateo(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 by (used in)…
Adjusted EBITDA Reconciliation San Mateo(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 by (used in)…
Adjusted Net (Loss) Income and Adjusted (Loss) Earnings Per Diluted Common Share This presentation includes the non-GAAP financial measures of adjusted net (loss) income and adjusted (loss) earnings per diluted common share. These…
Return on Average Capital Employed (ROACE) Reconciliation The following table presents our calculation of E&P ROACE and Total ROACE and a reconciliation of such measures to the corresponding GAAP financial measures. Return on…
Cash Return on Capital Invested (CROCI) Reconciliation The following table presents our calculation of CROCI and Total CROCI and a reconciliation of such measures to the corresponding GAAP financial measures. Cash Return on Capital…
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