Matador Resources Company Overview Market Snapshot NYSE Symbol MTDR Enterprise Value(1) 3.1 billion Delaware Basin Q2 2020 Avg. Daily Production 73.3 MBOE/d Assets Q1 2020 Proved Reserves(2) 260.0 MMBOE Haynesville/ Cotton Valley Q2…
Investment Highlights Matador Resources Company (NYSE: MTDR) High Quality E&P Assets and Rapidly Growing Midstream Business Matador is achieving strong operating results across its 128,000 net acre Delaware Basin leasehold and minerals…
Matadors Significant Officer % Ownership vs. Peer Group Interests Aligned with Shareholders Since January 1, 2020, approximately 200 directors, special advisors and employees, or approximately two-thirds of the staff, have bought…
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 1 MTDR…
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%…
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 to sales…
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 Enhancements…
Operations and Delaware Basin Update
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 hedged at a…
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%…
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% Average…
First Six Rodney Robinson Wells Online Results Above Expectations Rodney Robinson Acreage Rodney Robinson Summary and Highlights First six wells turned to sales on the Rodney Robinson Acreage tract in western Antelope Ridge in late Q1…
Stateline Asset Area Eddy County, New Mexico STATELINE Asset Summary and Highlights 2,800 gross / 2,800 net acres Approximately 2,800 gross/net acres with 87.5% net Acreage revenue interest acquired in September 2018 BLM lease sale…
Greater Stebbins Area Eddy County, New Mexico Greater Stebbins Area Summary and Highlights ARROWHEAD 66,900 gross / 26,900 net acres Approximately 13,000 gross (5,450 net) acres Acreage Currently producing from three primary…
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 throughout…
Capital Efficiency Gains: Better Wells for Less Money Capital Efficiency Gains Matador continues to drill better wells for less money Transition to Longer Laterals 10% increase in well EUR by capturing 850 additional feet of…
Capital Efficiency Gains: Better Wells for Less Money 1 2 One-mile Wolfcamp A wells(1) 1 Two-mile Wolfcamp A well(1) Lease Line Perforation Zone 10% less 10% additional completable lateral completable lateral 4,450 4,450 4,450…
San Mateo Midstream Operations and Plans
San Mateo(1) Assets and Operations Three-Pipe Offering Eddy County, NM Assets Loving County, TX Assets 1 Mile Greater Stebbins Area Wolf Loving 43 miles Natural Gas and Oil Pipelines Reeves Loving Ward 1 Mile Rustler…
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…
Updated Full Year 2020 Guidance
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, released a second…
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,…
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,…
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 Price(3)…
Environmental, Social and Governance (ESG)
ESG: Environmental Air Reducing greenhouse gas (GHG) Reducing emissions since 2017(1) emissions using advanced capture Greenhouse Gases (6%) and control equipment Vapor recovery units (VRU) on 100% of newly Emission Intensity Rate…
ESG: Environmental Water 700 Over 680 million 2020E Stimulation Cumulative Recycled Production Water 600 gallons recycled water +32% Fluid Volumes 500 used by YE 2020 Fresh 6% 8.9 million (million gallons) 400 cost…
ESG: Increased Use of Recycled Water in Fracturing Operations 680 Gallons of recycled produced water expected to be used for fracture 8.9 Estimated cost savings(2) as alternative to fresh water sourcing and produced million…
ESG: Environmental Land of Pads Built Reducing surface 66% of oil and 96% of footprint with fewer pads water produced from the 36 More batch drilling, longer laterals 31 Delaware Basin is and commingling production transported on…
ESG: Social 18,000 Commitment to a 16,000 Over 17,000 hours of proactive safety culture 14,000 employee continuing 12,000 education in 2019 No recordable employee injuries 10,000 since 2014 8,000 6,000 Over 1.8 million employee…
ESG: Governance Engaged Board of Directors Annual with majority voting Say on Pay standard voting Commitment to ethical conduct and compliance Certification of code of conduct by 100% of employees Formal shareholder…
Appendix
Highlights for Q2 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 Guidance Total production of…
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)…
Delaware Basin Extended Lateral Well Location Inventory Matador has identified up to 4,548 gross (1,600 net) remaining potential locations(1) for future drilling on its Delaware Basin acreage Location counts assume extended lateral…
Delaware Basin Drilling Records Since MAXCOM Implementation Recent Spud to TD Drilling Records: 89 MTDR Drilling Records and 10.0 Million Ray State 123H 13.4 Days 2-mile well Estimated Savings Since MAXCOM Jack Sleeper 201H 17.8 days…
Marketing and Takeaway Overview Three-Stream Takeaway Marketing and Midstream Adding Value Oil The combined efforts of Matadors marketing and midstream teams have significantly increased Matador expects to have almost all its…
Crude Oil Marketing Overview Matador expects to have almost all its operated Eddy Lea Andrews Delaware Basin oil production on pipe by late Q4 2020 Central Delivery Points Contracted a long-term, fixed transport rate New Mexico…
Natural Gas Marketing Overview San Mateos In late September 2019, Matador began Eddy Black RiverLea Processing Plant Andrews transporting most of its Delaware Basin residue natural gas production to the Texas Gulf Coast on the…
Natural Gas Liquids Marketing Overview Chaves Matador Acreage Completed NGL connection at the Black River Black River Processing Plant Processing Plant on EPICs Y-Grade pipeline EPIC Y-Grade Pipeline in March 2018 BP Energy Company…
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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