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February 2014 Investor Presentation – Matador Resources Company

Matador Resources Company · Feb 6, 2014 · 56 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. February 2014 Investor Presentation – Matador Resources Company – slide 1
    Investor Presentation February 2014 NYSE: MTDR
  2. February 2014 Investor Presentation – Matador Resources Company – slide 2
    Company Summary
  3. February 2014 Investor Presentation – Matador Resources Company – slide 3
    Matador History Predecessor Entities Foran Oil & Matador Petroleum Founded by Joe Foran in 1983 most participants are still shareholders today. Foran Oil funded with 270,000 in contributed capital from 17 friends and family…
  4. February 2014 Investor Presentation – Matador Resources Company – slide 4
    Company Overview Completed IPO of 14,883,334 shares (12,209,167 primary) including overallotment at 12.00/share in March 2012 and Follow-on Offering of 9,775,000 shares including overallotment at 15.25/share in September 2013…
  5. February 2014 Investor Presentation – Matador Resources Company – slide 5
    Matador Execution History IPO (February 7, 2012) vs. Today What we said at IPO Metric At IPO(1) What weve done Today(7) 7.1 MBOE/d 13.5 MBOE/d 16x growth in Production 414 Bbl/d of oil 6,700 Bbl/d of oil oil production 6% oil 50%…
  6. February 2014 Investor Presentation – Matador Resources Company – slide 6
    Matadors Continued Growth TOTAL OIL AND (1) (1) (1)(2) TOTAL OIL PRODUCTION NATURAL GAS REVENUES ADJUSTED EBITDA 2,050 260.0 185.0 115.9 Thousand Bbl 1,214 156.0 in millions in millions 67.0 49.9 30.6 34.0…
  7. February 2014 Investor Presentation – Matador Resources Company – slide 7
    2013 was an Excellent Year for Matador Technical improvements in all aspects of our Eagle Ford operations resulting in better wells for less money Drilling times and costs per well decreased significantly Improved hydraulic fracture…
  8. February 2014 Investor Presentation – Matador Resources Company – slide 8
    Keys to Matadors Success People We have a strong, committed technical and financial team in place, and we continue to make additions and improvements to our staff and our capabilities Board and Special Advisor additions have…
  9. February 2014 Investor Presentation – Matador Resources Company – slide 9
    Matador Resources Company Overview Market Capitalization(1) 1.3 billion Average Daily Production(2) 11,663 BOE/d Oil (% total) 5,584 Bbl/d (48%) Natural Gas (% total) 36.5 MMcf/d (52%) Proved Reserves 9/30/2013 44.2 million BOE %…
  10. February 2014 Investor Presentation – Matador Resources Company – slide 10
    Eagle Ford South Texas
  11. February 2014 Investor Presentation – Matador Resources Company – slide 11
    2014 South Texas Plan Details 2014 projected capital expenditures of 318 million or 72% of total 2-rig program with almost all of the 2014 South Texas capital budget directed to the Eagle Ford shale Drill and/or complete or…
  12. February 2014 Investor Presentation – Matador Resources Company – slide 12
    Eagle Ford Overview Operations Summary 57 gross (50 net) wells(1) currently producing from the Eagle Ford Proved Reserves 9/30/2013 17.9 million BOE An increase in oil production from 330 Bbl/d(2) % Proved Developed 55% to 6,700…
  13. February 2014 Investor Presentation – Matador Resources Company – slide 13
    Eagle Ford Well Costs and Estimated Ultimate Recovery (EUR) Nickel EAGLE FORD ACREAGE TOTALS Ranch 38,985 gross / 27,147 net acres EAGLE FORD EAST Hennig Well Costs: 8-10 million EUR: 600-1,000 MBOE Uvalde Medina Gonzales San…
  14. February 2014 Investor Presentation – Matador Resources Company – slide 14
    Operational Improvements Overview Eagle Ford Drilling Days(1) West Central East Experience in the Eagle Ford has led to significant 19.2 20.1 24.7 reductions in drilling days and well costs 18.8 18.9 Drilling from four-well batch…
  15. February 2014 Investor Presentation – Matador Resources Company – slide 15
    Improvement in Drilling Efficiency Moving Towards Batch Drilling Single Well Drilling PAD Drilling BATCH Drilling EXPLORATION 2010 1/3 RIG 60-70% increase in 2011 2/3 RIG Rig Efficiency from 2012 - 2014 2012 2 RIGS 2013 1 1/2…
  16. February 2014 Investor Presentation – Matador Resources Company – slide 16
    Artificial Lift Flowing Rod Pumping Gas Lifting Benefits of Gas Lift Accelerates production Accelerated Production Reduces LOE 300 Bbl/d Lower maintenance Helps wells recover faster from offset fracs 100 Bbl/d Time 17
  17. February 2014 Investor Presentation – Matador Resources Company – slide 17
    Evolution of Matador Frac Design Gen 2 Gen 3 Gen 4 Gen 5 Gen 6 650 Mlbs 515 Mlbs Proppant 500 Mlbs 405 Mlbs 375 Mlbs Pumped(1) Fluid Volume 11,750 Bbl 11,750 Bbl Pumped 7,825 Bbl 9,550 Bbl 5,770 Bbl 300 ft. 0 ft.…
  18. February 2014 Investor Presentation – Matador Resources Company – slide 18
    Frac Generation Comparison (all wells normalized to 5,000 horizontal) 120,000 120,000 110,000 GEN 2 (80 Acre) 110,000 GEN 2 (80 Acre) 100,000 100,000 GEN 4 (80 Acre) GEN 4 (80 Acre) 90,000 90,000 GEN 5 (80 Acre) GEN 5 (80…
  19. February 2014 Investor Presentation – Matador Resources Company – slide 19
    Buda Wells Activity Since January 1, 2010 Blackbrush O&G Blackbrush O&G 8 Buda Completions Oppenheimer-101H May 2011 May 2013 Comp May 2013 Cum: 220 MBbl 6 mo avg:: 672 MMcf 251 Bbl/d 562 Mcf/d Cum: 45,759 Bbl Texas American Res…
  20. February 2014 Investor Presentation – Matador Resources Company – slide 20
    Glasscock Ranch Seismic Mapping of Natural Fracture Trends Glasscock Ranch Frio South Survey Amplitude at Time Slice Near Top Buda Texas American Res Fracture trends from MTDR Buchanan-1H Glasscock 2H Comp Apr 2013 consistent…
  21. February 2014 Investor Presentation – Matador Resources Company – slide 21
    Permian Basin Southeast New Mexico and West Texas
  22. February 2014 Investor Presentation – Matador Resources Company – slide 22
    2014 Permian Basin Plan Details 2014 projected capital expenditures of 109 million or 25% of total 1-rig program working in Lea and Eddy Counties, NM and Loving County, TX Drill and/or complete or participate in 12 gross (9.8 net)…
  23. February 2014 Investor Presentation – Matador Resources Company – slide 23
    Permian Basin Acreage Position Permian Basin Total Twin Lakes 31,057 gross / 20,791 net acres Gross Acres(1) 70,819 acres Net Acres(1) 44,835 acres Acreage position in good neighborhoods, Indian Draw/Rustler Breaks surrounded by…
  24. February 2014 Investor Presentation – Matador Resources Company – slide 24
    Wolf-Bone Geological Setting, Predicting Where the Better Rocks Are 265 mya End of Bone Springs Warmer Delaware Basin Delaware Mountain Group San Andres 1st, 2nd, 3rd Bone Spring Sands Yeso Abo Sands confined to channels…
  25. February 2014 Investor Presentation – Matador Resources Company – slide 25
    Permian Basin Petroleum Systems and the Wolfcamp Kitchens West East DELAWARE BASIN CENTRAL BASIN MIDLAND BASIN PLATFORM 23,000 Wolfcamp Sediment Fill Simpson Source Kitchens Now Unconventional Resource Plays 70,000 square…
  26. February 2014 Investor Presentation – Matador Resources Company – slide 26
    Ranger-Querecho Plains Prospect Area Location of Matador 2013 test wells 11,775 gross (9,013 net) acres Concho 82 gross (58.6 net) locations(1) AirCobra 12 2H 3rd Bone Spring 25 mo.cum: 296 MBbl; 201 MMcf Primary Targets 2nd…
  27. February 2014 Investor Presentation – Matador Resources Company – slide 27
    Ranger 33 State Com 1H Frac Overview Proppant 18 total stages 525 Mlbs Pumped(1) 450,000 lbs per stage 400,000 lbs 30/50 white sand per stage Fluid Volume 11,250 Bbl 50,000 lbs resin-coated sand tail-in per stage Pumped 50-ft…
  28. February 2014 Investor Presentation – Matador Resources Company – slide 28
    Ranger 33 State Com 1H Production History Flowing Pressure Oil Gas Choke 2000 1000 30 Choke Size (x/64) 1800 900 25 1600 800 20 12-9-13 24-hr IP: 23/64 Choke 1400 575 Bbl/d oil, 263 Mcf/d gas, 543 Bbl/d water 700 15 Flowing…
  29. February 2014 Investor Presentation – Matador Resources Company – slide 29
    Wolf Prospect Area Location of Matador 2013 test wells Dorothy White 1H Loving Wolfcamp A 5,273 gross (3,311 net) acres Well Drilled Now Completing 50 gross (33.6 net) locations(1) OXY Reagan-McElvain 1H Wolfcamp A IP: 570…
  30. February 2014 Investor Presentation – Matador Resources Company – slide 30
    Dorothy White 1H Horizontal Well Profile VS Wolfcamp Large increase in gas units when we entered the X sand TVD Y Sand MD Gas Units 100% in target zone Managed pressure drilling techniques flaring while…
  31. February 2014 Investor Presentation – Matador Resources Company – slide 31
    Indian Draw-Rustler Breaks Prospect Area Location of Matador 2013 test wells 12,276 gross (8,852 net) acres Rustler Breaks Riddle 31 1H Wolfcamp B Horizontal Test TVD 10,185 (15,255 MD) Mewbourne Oil Co. Layla 35 MD Fee 1H 103…
  32. February 2014 Investor Presentation – Matador Resources Company – slide 32
    Twin Lakes Prospect Area Saunders Denton 31,057 gross (20,791 net) acres Penn/Perm Caudill Wolfcamp/Devonian 43 MMBbl, 62 Bcf Penn/Perm 157 MMBbl, 78 Bcf 8.1 MMBbl, 6.0 Bcf Primary Targets Dean Penn/Perm 9.5 MMBbl, 6.0 Bcf…
  33. February 2014 Investor Presentation – Matador Resources Company – slide 33
    Twin Lakes Area Cross Section A A Wolfcamp D/Cline 400ft TEST VOLUMES: 268 Bbl/d TEST VOLUMES: 350 Mcf/d 118 Bbl/d 0 WATER 625 Mcf/d 1155 WATER 34
  34. February 2014 Investor Presentation – Matador Resources Company – slide 34
    Permian Basin Stratigraphy and Lower Permian Petroleum Systems GR RE S Bone Spring Lime Upper Avalon Shale Lower Avalon Shale First Bone Spring Low permeability sand Sand and carbonates Second Bone Spring Carbonate…
  35. February 2014 Investor Presentation – Matador Resources Company – slide 35
    Haynesville and Other Natural Gas Operations
  36. February 2014 Investor Presentation – Matador Resources Company – slide 36
    2014 Tier 1 Haynesville Shale Plan 2014 projected capital expenditures of 12 million or about 3% of total Estimated participation in 26 gross (1.5 net) non-operated wells, some already drilling in late 2013 2014 capital plan includes…
  37. February 2014 Investor Presentation – Matador Resources Company – slide 37
    Significant Option Value on Natural Gas TIER 3: 2 4 Bcf NW Louisiana / East Texas(1) Proved Reserves(2) 154.1 Bcfe BOSSIER TIER 2: 4 6 Bcf CADDO 3,772 BOE/d Daily Production(3) BIENVILLE (99% natural gas) TIER 1: 6 10+ Bcf MTDR…
  38. February 2014 Investor Presentation – Matador Resources Company – slide 38
    Haynesville Well Economics Tier 1 Area 300 8 Bcf - 8.0 MM D&C Cost 275 9 Bcf - 8.0 MM D&C Cost 250 10 Bcf - 8.0 MM D&C Cost Estimated Rate of Return, % 8 Bcf - 9.0 MM D&C Cost 225 9 Bcf - 9.0 MM D&C Cost 200 10 Bcf - 9.0 MM…
  39. February 2014 Investor Presentation – Matador Resources Company – slide 39
    Matador Gracie Prospect Meade Peak Gas Shale WYOMING IDAHO UTAH WYOMING IDAHO UTAH Crawford Federal 1H Summary 76,496 gross (36,003 net) acres WYOMING Drilled Crawford Fed 1H in late 2012 Recently completed…
  40. February 2014 Investor Presentation – Matador Resources Company – slide 40
    2014 Capital Investment Plan
  41. February 2014 Investor Presentation – Matador Resources Company – slide 41
    Summary and 2014 Guidance Continue 3-rig program in 2014 2 rigs in Eagle Ford and 1 rig in Permian Eagle Ford development will continue to be the major driver of our growth in 2014 Permian drilling program designed to further evaluate…
  42. February 2014 Investor Presentation – Matador Resources Company – slide 42
    2014 Capital Investment Plan Summary Continue 3-rig program in 2014 2 rigs in Eagle Ford and 1 rig in Permian 2014 estimated capital expenditures of 440 million Increase of 19% from 2013 estimated capital expenditures of 370 million…
  43. February 2014 Investor Presentation – Matador Resources Company – slide 43
    2014 Oil and Natural Gas Production Estimates 2014E Oil Production Oil Production Midpoint(1) (Bbl/d) 10,000 Estimated oil production of 2.8 to 3.1 million barrels Increase of 40 to 50% from 2013, despite an average of 5 8,000 to…
  44. February 2014 Investor Presentation – Matador Resources Company – slide 44
    2014 Financial Estimates 2014E Revenues and Adjusted EBITDA(1)(2) Oil and Natural Gas Revenues(2) (millions) 350.0 340.0 Revenues and Adjusted EBITDA(1)(2) growth impacted by lower 2014 realized oil price estimate 300.0 260.0 2014…
  45. February 2014 Investor Presentation – Matador Resources Company – slide 45
    Oil/Liquids Focus Continues to Drive 2014 Growth 2014 Anticipated Drilling 2014 Anticipated First Sales(1) 2014E CapEx Gross Wells(2) Net Wells(2) Gross Wells(2) Net Wells(2) (in millions) Total Total % Total Total % Total % South…
  46. February 2014 Investor Presentation – Matador Resources Company – slide 46
    Funding for 2014 Capital Investment Plan Anticipate funding 2014 capital expenditures through operating cash flows and borrowings under revolving credit facility 2.4 million barrels of oil (80 to 85% of estimated oil production)…
  47. February 2014 Investor Presentation – Matador Resources Company – slide 47
    2014 South Texas Drilling Plan 2-Rig Program EAGLE FORD ACREAGE TOTALS Nickel EAGLE FORD CENTRAL/EAST Ranch 38,985 gross / 27,147 net acres Bexar 7,570 gross / 6,360 net acres Hennig 50 gross (47.0 net) wells planned in 2014; all…
  48. February 2014 Investor Presentation – Matador Resources Company – slide 48
    2014 Permian Basin Drilling Plan Twin Lakes 2014 Drilling Plan Highlights 31,057 gross / 20,791 net acres Estimated capital expenditures of 109 million, 1 including 30 million for land/seismic and facilities 12 gross (9.8 net)…
  49. February 2014 Investor Presentation – Matador Resources Company – slide 49
    Credit Agreement Status Strong, supportive bank group led by RBC Borrowing base at 350 million, based on June 30, 2013 reserves Borrowings outstanding of 200 million at December 31, 2013 Ability to request quarterly borrowing base…
  50. February 2014 Investor Presentation – Matador Resources Company – slide 50
    2014 Hedging Profile 2.4 million barrels of oil hedged for Oil Hedges (Costless Collars) 2014 at weighted average floor and 2014 ceiling of 88/Bbl(1) and 99/Bbl(1), Total Volume Hedged by Ceiling 2,414,000 Bbl respectively Weighted…
  51. February 2014 Investor Presentation – Matador Resources Company – slide 51
    Appendix
  52. February 2014 Investor Presentation – Matador Resources Company – slide 52
    Matadors Continued Growth Average Daily Production(1) Oil Production Mix(1) (MBOE/d) (% of Average Daily Production) 11.7 48% 9.0 37% 7.0 3.9 2.3 1.5 7% 6% 4% 2% 2008 2009 2010 2011 2012 First 9 mo. 2008 2009 2010…
  53. February 2014 Investor Presentation – Matador Resources Company – slide 53
    Board of Directors and Special Advisors Expertise and Stewardship Board Members Professional Experience Business Expertise and Advisors - Professor Emeritus and Former Head of Dept. of Petroleum Engineering, Texas A&M University Dr.…
  54. February 2014 Investor Presentation – Matador Resources Company – slide 54
    Proven Management Team Experienced Leadership Industry Matador Management Team Background and Prior Affiliations Experience Experience Joseph Wm. Foran - Matador Petroleum Corporation, Foran Oil Company and James Cleo 33 years Since…
  55. February 2014 Investor Presentation – Matador Resources Company – slide 55
    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,…
  56. February 2014 Investor Presentation – Matador Resources Company – slide 56
    PV-10 Reconciliation 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 net…

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