Second Quarter 2023 Earnings Release July 25, 2023
Chairmans Remarks July 25, 2023
SLIDE A Matador Resources Company Company Highlights DELAWARE BASIN 150,800 Net Acres Strong, Proven Management Team Increased 21,400 Net Acres (+17%) YTD 40-Year Track Record TWIN LAKES Strong, Simple Balance Sheet Low…
SLIDE B MTDR Impressive Earnings Track Record 9 straight years (36 quarters) of meeting or beating quarterly earnings consensus Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 5
Increasing Production SLIDE C Q2 2023 2023 PRODUCTION UP 143,000 Avg. Daily Production (BOE/d) 130,683 126,500 100,000 (1) (2) Early January 2023 Q2 2023 Guidance Q2 2023 Actual Q4 2023 Guidance (1) Midpoint of…
Decreasing Costs and Repaying Debt SLIDE D Q2 2023 CAPEX DOWN RBL DEBT DOWN Q2 2023 D/C/E CapEx Repaid 140 million in better than guidance RBL Borrowings since by 14% Advance Acquisition 400 800 358 -14% 700 700 -140 million…
SLIDE E Steady Growth, Measured Pace Matador Total Proved Reserves Growth & BOE Per Share 455 MMBOE 500 3.8 BOE/Share 4.00 450 3.50 Total Proved Reserves, MMBOE 400 27% CAGR 3.00 350 BOE Per Share 2.50 300 250…
San Mate and Synergistic Midstream Assets SLIDE F Continue to Add Value to Matador (1) DELAWARE BASIN 150,800 Net Acres Increased 21,400 Net Acres (+17%) YTD Ranger Stebbins Gathering Assets 510 miles of three-stream…
SLIDE G Steadily Increasing Fixed Dividend Returning Value to Consistent Growth Sustainable Shareholders 6x Since Q1 2021 Strong, Simple Balance Sheet 85 Million Returned Since 2021 Annualized Dividend 0.60 0.40…
Operational and Financial Results July 25, 2023
Q2 2023 Highlights Stronger-Than-Expected Quarterly Production 130,683 BOE per day: Beat Guidance(1) Updating 2023 total oil production to 26.8 to 27.5 million barrels of oil(2) Lower-Than-Expected Capital Expenditures 310 million…
Matador Resources Company Overview Market Snapshot NYSE Symbol MTDR Market Capitalization(1) 6.8 billion Avg. Daily Production Q2 2023 130.7 MBOE/d DELAWARE BASIN HAYNESVILLE/ Net Debt / LTM Adj. EBITDA(2)(3) Q2 2023 1.0x 150,800…
Significant 2023 Milestones Timeline 1 8 Rodney Robinson wells turning to sales in 1H 2023 2 Close the Advance acquisition in 1H 2023 3 8 Stateline wells turning to sales in 1H 2023 4 21 wells turning to sales on Advance…
Headlines and Highlights Q2 2023 Oil, natural gas and total production were all better than expected Oil equivalent production of 130,683 BOE per day is better than guidance by 3% and up 23% sequentially Oil production of 76,345 Bbl…
An Integrated E&P and Midstream Strategy: Progress in All Areas Average Daily Total Production Average Daily Total Delaware Basin Production (BOE/d) (BOE/d) Q2 2023 BOE up 23% sequentially; Oil Natural Gas Q2 2023 BOE up 24%…
Delivering Strong Well Results All Around the Delaware Basin TWIN LAKES DELAWARE BASIN 49,700 gross / 27,100 net acres CURRENT DELAWARE 150,800 Net Acres Increased 21,400 Net Acres (+17%) YTD BASIN ACTIVITY Stateline: 8 wells…
Horizontal Wells Completed and Turned to Sales Q2 2023 During the second quarter of 2023, Matador turned to sales a total of 55 gross (22.8 net) horizontal wells across its various operating areas. This total was comprised of 27 gross…
San Mateo Midstream Outperformed Expectations Adjusted EBITDA(1) and Oil and Natural gas volumes were better than expected Adjusted EBITDA(1) of 42.7 million is better than Forecast by 4% Down sequentially primarily due to Matadors…
Better Than Expected San Mateo Results in Q2 2023 (San Mateo is 51% Owned by Matador) San Mateo Average Natural Gas Gathering San Mateo Average Natural Gas Processing (MMcf/d) (MMcf/d) Q2 2023 down 1% sequentially; Q2 2023 up 6%…
San Mateo Synergistic Midstream Asset Matador owns 51% of San Mateo(1) 250 Natural Gas Oil 198 Water San Mateo's Adjusted EBITDA(2) 200 185 154 ( in millions) 150 Natural Gas 113 96 100 Oil 62 50 31 Water…
Full Year 2023 Guidance July 25, 2023
Summary and 2023 Guidance (as Updated on July 25, 2023) Actual February 21, 2023 %YoY July 25, 2023 %YoY Guidance Metric 2022 Results 2023 Guidance Range Change(1) 2023 Guidance Range Change(1) Total Oil Production 21.9 million Bbl…
Increased Oil and Natural Gas Production Guidance As Provided on July 25, 2023 +21% YoY 44,350 - 46,250 45,800 - 47,500 38,495 Total 114.0 - 120.0 (MBOE) 107.7 - 113.7 31,454 99.3 Natural Gas (Bcf) 81.7 26,400 - 27,300…
2023 Capital Investment Plan Summary(1) (As Provided on July 25, 2023) Full Year 2023E CapEx(2) 1.25 to 1.42 billion 2023E Wells Turned to Sales February 2023 July 2023 Guidance(3) Guidance(1) Gross Net Drilling, Completing,…
2023E Quarterly Turned-in-Line (TIL) Cadence(1) As Provided on July 25, 2023 118 Gross (91.6 net ) operated horizontal wells expected to turn to sales in 2023 No change from previous expectations despite dropping 8th drilling rig in…
2023E Operating Cost Estimates (Unit Costs per BOE)(1) (As of and as Provided on July 25, 2023) 2022 Q1 2023 Q2 2023 2023E 1 Production taxes, transportation and processing (PTTP) 7.33 5.78 5.21 5.75 to 6.25 2 Lease operating (LOE)…
Q2 2023 & Q3 2023E Commodity Price Differentials Q2 2023 Q3 2023E Actual Actual Realized Commodity Prices Benchmark(1) Differential Guidance(2) Realized Price Differential Oil Prices, per Bbl 73.56 73.46 -0.10 -1.25 to -0.25…
ESG Stewardship July 25, 2023
Committed to Environmental, Social and Governance (ESG) Stewardship Matador is committed to increasing the long-term value of its shares in a responsible manner. Matadors aim has always been to reliably and profitably provide the energy…
Committed to Environmental, Social and Governance (ESG)(1) Stewardship ENVIRONMENTAL Increased transportation on pipeline Continued reduction of Increased use of non-fresh water, per-barrel emissions(2) including recycled water…
Appendix July 25, 2023
Steady Oil Production Growth Approaching 150,000 BOE/d 142,000 - 144,000 Total (MBOE/d) 111,735 342.0 Natural Gas (MMcf/d) 296.5 86,000 Oil (Bbl/d) 62,316 Q4 22 Q4 23E (1) 33 (1) As of and as provided on…
Matadors Strategic Bolt-On Acquisition of Advance Energy ACQUISITION DETAILS Advance Acquisition Highlights TWIN LAKES Price: 1.6 billion(1) Strategic bolt-on in the core of the Northern Delaware Basin Effective Date: 1/1/2023 18,500…
Matador + Advance: +30% Pro Forma Reserves Increase(1) Total Proved Reserves: 463.1 million BOE (59% oil) pro forma at 12/31/2022 356.7 million BOE 55% Oil Standardized Measure = 6.98 PV-10(2) = 9.13 billion 356.7 Million BOE…
Horseshoe Wells: 2-Mile Value in 1-Mile Section 50% time savings(1) 10MM cost savings(1) Increases value of the acreage 1-mile section 1-mile section 1-mile section 1-mile section Note: Horseshoe wells expected to be turned to…
Delaware Basin Extended Lateral Well Location Inventory Matador has identified up to 4,382 gross (1,468 net) remaining potential locations as of December 31, 2022, for future drilling in the Delaware Basin Location counts assume…
Q2 2023 Selected Operating and Financial Results June 30, 2023 March 31, 2023 June 30, 2022 (1) Net Production Volumes: Oil (MBbl) 6,947 5,305 5,855 Natural gas (Bcf) 29.7 25.8 25.3 Total oil equivalent (MBOE) 11,892 9,599 10,078…
Matador Resources and San Mateo Credit Facilities Matador Credit Agreement Summary Bank group led by Truist Bank Last Elected Borrowings Letters of Credit Financial Covenant: Facility Maturity Borrowing Financial Covenant: Reserves…
Simple Balance Sheet No Near-Term Debt Maturities REPAYING RBL IS SIGNIFICANT LIQUIDITY 650 million at July 25, 2023 KEY OBJECTIVE IN 2023 Repaid 140 million since Advance acq. BORROWING BASE OF 2.25B ELECTED COMMITMENT INCREASED…
San Mateo(1) Assets and Operations Three-Pipe Offering Eddy County, NM Assets Loving County, TX Assets Greater Stebbins Area 1 Mile Wolf Loving 43 miles Reeves Loving Ward 1 Mile Rustler Breaks Eddy Lea Natural…
Pronto Assets and Operations Strategically Expanding Lea County Footprint Advance Acquisition Midstream Assets and Opportunities Acquired 35 mi of in-field gas and water gathering pipelines Acquired an active Devonian Salt Water…
Record Setting MAXCOM Results Celebrating 5 Years 218 Matador Drilling Records and 33 Million Estimated Savings To Date Delaware Drilling Records Spud to Total Depth: 9.5 days Spud to Total Depth 2 Mile Lateral: 9.7 Days Spud to…
Hedging Profile Remainder of 2023(1) Waha-Henry Hub Basis Swaps 5,000 4,600 4,600 4,500 4,000 Gas Volume Hedged (MMBtu) 3,500 3,000 2,500 Swap Swap at at -1.85 -1.85 2,000 1,500 1,000 500 0 Q3 2023 Q4…
Adjusted EBITDA & Adjusted Free Cash Flow Reconciliations 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…
Adjusted EBITDA Reconciliation Matador Resources Company The following table presents the calculation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and net cash provided…
Adjusted EBITDA Reconciliation San Mateo(1) (100%) The following table presents the calculation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the GAAP financial measures of net income 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 and net cash provided by (used in) operating…
Adjusted Free Cash Flow Reconciliation Matador Resources Company The following table presents the calculation of adjusted free cash flow and the reconciliation of adjusted free cash flow to the GAAP financial measure of net cash provided…
Adjusted Net Income and Adjusted Earnings Per Diluted Common Share This presentation includes the non-GAAP financial measures of adjusted net income and adjusted earnings per diluted common share. These non-GAAP items are measured as net…
PV-10 Reconciliation - Matador PV-10 is a non-GAAP financial measure and generally differs from Standardized Measure, the most directly comparable GAAP financial measure, because it does not include the effects of income taxes on future…
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