Skip to main content Investor Presentation – Matador Resources Company | Shale Experts
Loading...
Pm

Investor Presentation – Matador Resources Company

Matador Resources Company · Mar 18, 2015 · 71 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. Investor Presentation – Matador Resources Company – slide 1
    Investor Presentation March 2015 NYSE: MTDR
  2. Investor Presentation – Matador Resources Company – slide 2
    Company Summary
  3. 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 members…
  4. Investor Presentation – Matador Resources Company – slide 4
    Company Overview Exchange: Ticker NYSE: MTDR Shares Outstanding(1) 76.7 million common shares Share Price(2) 20.91/share Market Capitalization(1)(2) 1.6 billion 2014 Actual 2015 Guidance(3) % Change Capital Spending 610…
  5. Investor Presentation – Matador Resources Company – slide 5
    Matador Resources Company Operations Overview Market Capitalization(1) 1.6 billion Avg. Daily Production Q4 2014(2) 20,807 BOE/d +74%* 30% of total production Almost no oil Oil (% total) 11,062 Bbl/d (53%) 65% of total natural gas…
  6. Investor Presentation – Matador Resources Company – slide 6
    Matadors Execution History Doing What We Say Matador continues to execute on its core strategy of acquiring great assets, developing a highly professional, committed workforce, maintaining a strong balance sheet and generating…
  7. Investor Presentation – Matador Resources Company – slide 7
    Keys to Matadors Success Over Last 35 Years(1) People We have a strong, committed technical and financial team in place, and we continue to make additions and improvements to our staff, our capabilities and our processes Board and…
  8. Investor Presentation – Matador Resources Company – slide 8
    Permian Basin Southeast New Mexico and West Texas
  9. Investor Presentation – Matador Resources Company – slide 9
    Permian Basin Acreage Position TWIN LAKES Permian Basin Total 42,538 gross / 29,073 net acres Gross Acres 152,370 acres Net Acres 85,375 acres RUSTLER BREAKS 64,513 gross / 27,775 net acres Successful performance of initial…
  10. Investor Presentation – Matador Resources Company – slide 10
    2015 Permian Basin Drilling Plan 36 gross (23.7 net) wells planned in 2015 - TWIN LAKES 42,538 gross / 29,073 net acres 2015 Permian Basin Program 33 gross (21.0 net) wells turned to sales Estimated capital expenditures of 245…
  11. Investor Presentation – Matador Resources Company – slide 11
    HEYCO Combination Overview Matador has combined assets with Harvey E. Yates Company (HEYCO), headquartered in Roswell, New Mexico, a subsidiary of HEYCO Energy Group, Inc., including certain oil and natural gas producing properties…
  12. Investor Presentation – Matador Resources Company – slide 12
    Delaware Basin Combination Attributes Concho CTA State Com 4H: 1,063 BOE per day 830 Bbl oil + 1.4 MMcf natural gas per day (first 30 days) TWIN LAKES Concho CTA State Com 3H: 992 BOE per day 830 Bbl oil + 1.0 MMcf natural gas per…
  13. Investor Presentation – Matador Resources Company – slide 13
    Combination Acreage A Strategic Fit CTA State Com 3H - IP(30): 992 BOE/d (84% Oil) - 37.6 MBO Cum to date (46 days) CTA State Com 1 Type Log CTA State Com 4H - IP(30): 1,063 BOE/d (78% Oil) - 26.3 MBO Cum to date (33…
  14. Investor Presentation – Matador Resources Company – slide 14
    The Key: Good Science, Technology and Execution TWIN LAKES Attractive Targets: 4,000 feet of productive oil bearing zones Chaves Wolf: High quality Wolfcamp and Bone Spring reservoir sands interbedded with source rock;…
  15. Investor Presentation – Matador Resources Company – slide 15
    Understanding the Petroleum Systems for Maximum Oil Recovery Rock Mechanics and Completion Strategy Varies Conventional Unconventional Decoupled Coupled Micro-Coupled In-Situ Source Rock and Reservoir Bone Spring Bone Spring…
  16. Investor Presentation – Matador Resources Company – slide 16
    4,000 Feet of Hydrocarbon Column Creates Opportunity Determining Good, Better, Best important as potential exceeds INTER-Formational Stacked Pay inter-formational stacked pay GR RES Bone Spring Lime 2015 program will expand on…
  17. Investor Presentation – Matador Resources Company – slide 17
    Well Inventory Wolf Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring 7 8 million 450 600 Wolfcamp 9 10 million 650 1,100 Full Development Spacing Pattern (Cross-Section View) Gross Wells 1 mile Brushy 4 Canyon…
  18. Investor Presentation – Matador Resources Company – slide 18
    Well Inventory Rustler Breaks Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring 6 7 million 350 650 Wolfcamp 7 8 million 500 900 Full Development Spacing Pattern (Cross-Section View) Gross Wells 1 mile Brushy 65…
  19. Investor Presentation – Matador Resources Company – slide 19
    Well Inventory Ranger Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring 7 8 million 400 600 Wolfcamp 8 9 million 200 800* * Based on Volumetrics and 4-8% Recovery Factor Full Development Spacing Pattern (Cross-Section…
  20. Investor Presentation – Matador Resources Company – slide 20
    Delaware Basin Inventory Matador has identified 1,445 gross (960 net) locations TWIN LAKES Chaves This inventory does not yet include the HEYCO properties or Twin Lakes locations RUSTLER BREAKS Formation Gross Locations Net…
  21. Investor Presentation – Matador Resources Company – slide 21
    North Ranger-Twin Lakes Area Pennsylvanian/Wolfcamp D Production Distribution Townsend Field 166 wells A 25 million Bbl, 49 Bcf Kemnitz Field 94 wells 19 million Bbl, 78 Bcf Sanmal and Leamex Fields Wolfcamp/ Kemnitz & Lea…
  22. Investor Presentation – Matador Resources Company – slide 22
    Pennsylvanian/Wolfcamp D Hybrid Production Target Interval 30025300490000 30025257790000 30025019240000 30025397370000 30025414070000 30025416140000 AVRA OIL COMPANY ELK OIL COMPANY UNION OIL CML EXPLORATION CML EXPLORATION Pickard 2H…
  23. Investor Presentation – Matador Resources Company – slide 23
    Commodity Prices vs. Cost Savings vs. Efficiency Gains 7,500 psi Pressure Rating Estimated reduction in drilling time of 15 to 20% in the lateral on Wolfcamp wells Telescoping Flex-joint Estimated reduction in drilling time of 12…
  24. Investor Presentation – Matador Resources Company – slide 24
    Latest Technology: Simultaneous Operations (Sim-Ops) Capable Rigs Conventional Drilling Configuration Sim-Ops Capable with V-door turned 90 Drilling rig must leave location Space available for frac prior to frac operations…
  25. Investor Presentation – Matador Resources Company – slide 25
    WTI Oil Price and Service Prices Frac Index Price reductions of 31% ...equivalent to a 7.50/Bbl uplift in oil prices /Bbl Drilling Spread Rate reductions of 18% ...equivalent to a 4.50/Bbl uplift in oil prices Note: Frac…
  26. Investor Presentation – Matador Resources Company – slide 26
    Infrastructure Development: Cost Savings and Efficiency Gains Saltwater disposal savings Oil pipeline fee reduction 1.30/Bbl of produced water ...equivalent to a 5.10/Bbl uplift in oil prices ...an uplift of 0.90/Bbl in oil…
  27. Investor Presentation – Matador Resources Company – slide 27
    Potential Water Recycling Savings for Loving County Potential savings of up to 600,000 per well ...equivalent to a 3.00/Bbl uplift in oil prices Produced Purchase Water Frac Water Recycling Frac Additives Saltwater…
  28. Investor Presentation – Matador Resources Company – slide 28
    The Potential of Total Prospective Equivalent Oil Price Uplifts 80.00 H2O Equivalent Rig Recycle Realization Drilling Improvements 3.00 0.90 74.00 70.00 Midstream Spread Rate 3.00 SWD 4.50 Frac 60.00 Savings 5.10 7.50 50.00…
  29. Investor Presentation – Matador Resources Company – slide 29
    Evolution of Permian Basin Frac Design Reservoir Specific Bone Spring 375 ft. Gen 1 Gen 2 75 ft. 2,000 lbs/ft 1,333 lbs/ft Coupled 500 Mlbs 40 Bbl/ft 20 Bbl/ft 7,500 Bbl 50 cluster spacing 75 cluster spacing Upper…
  30. Investor Presentation – Matador Resources Company – slide 30
    Microseismic in Wolf Prospect Fractures generate sonic events as they propagate through the rock 80-acre spacing appears optimal for Wolfcamp X/Y Microseismic uses downhole geophones installed development in offset horizontals to…
  31. Investor Presentation – Matador Resources Company – slide 31
    Permian Basin Economics Oil Price Sensitivities Ranger 33 400-700 MBOE ROR vs Oil Price Dorothy White 700-1000 MBOE ROR vs Oil Price 250 100 700 MBOE, 7.5 MM D&C 1000 MBOE, 9.6 MM D&C 90 700 MBOE, 6 MM D&C 1000 MBOE, 8 MM D&C 200…
  32. Investor Presentation – Matador Resources Company – slide 32
    Eagle Ford Oil Bank
  33. Investor Presentation – Matador Resources Company – slide 33
    Eagle Ford Overview EAGLE FORD EAST Nickel EAGLE FORD ACREAGE TOTALS 3,700 gross / 2,900 net acres Ranch 39,871 gross / 29,731 net acres Measured Depth: 17,000 18,000 Hennig Well Costs: 8-10 million 2015 CapEx 90 million 80-acre…
  34. Investor Presentation – Matador Resources Company – slide 34
    Eagle Ford 2014 Accomplishments Increased net oil production rate by 44% from 6,400 Bbl/d in Q4 2013 to 9,100 Bbl/d in Q4 2014 Added 2,900 net acres, more than replacing 2014 Eagle Ford drilled inventory of 36 net wells (See chart…
  35. Investor Presentation – Matador Resources Company – slide 35
    Eagle Ford Drilling Cost Reductions and Efficiency Gains Batch mode cut costs by 10% vs pad drilling 21% vs single well drilling Shaved 2.5 days per well 219/ft Modern rigs 194/ft 173/ft Latest technology & equipment /ft…
  36. Investor Presentation – Matador Resources Company – slide 36
    Artificial Lift Reducing Natural Production Declines 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…
  37. Investor Presentation – Matador Resources Company – slide 37
    Evolution of Matador Eagle Ford Frac Design Gen 2 Gen 3 Gen 4 Gen 5 Gen 6 Gen 7 Proppant 650 Mlbs 650 Mlbs Pumped(1) 515 Mlbs 500 Mlbs 375 Mlbs 405 Mlbs Fluid Volume Pumped 9,550 Bbl 11,750 Bbl 11,750 Bbl 11,750 Bbl 5,770 Bbl…
  38. Investor Presentation – Matador Resources Company – slide 38
    Eagle Ford Completions Industry Comparison Matador designs some of the biggest fracs in the Eagle Ford Average 2014 Lateral Length (ft) 3,500 5,380 5,040 6,430 6,970 5,450 5,500 5,690 4,910 7,360 4,830 6,360 5,110 5,510 4,590 5,220…
  39. Investor Presentation – Matador Resources Company – slide 39
    Eagle Ford Completions Cost Reductions Non-frac completion costs cut by: 318 Toe Prep 50% since Q1 2012 (savings of Drill Out over 750,000 per well(1)) Frac Auxiliary Cut toe-prep costs by 70% 238 Cut drill out costs by 47% Cut…
  40. Investor Presentation – Matador Resources Company – slide 40
    Haynesville Shale Gas Bank
  41. Investor Presentation – Matador Resources Company – slide 41
    Haynesville Chesapeake Elm Grove Operations Successful 2014 non-op drilling program, primarily by Currently Chesapeake at Elm Grove Producing wells producing 17 gross (3.8 net) wells with estimated recoveries of 8 to 12 Bcf and well…
  42. Investor Presentation – Matador Resources Company – slide 42
    Economics of Tier 1 Wells (10 Bcf) Haynesville at Elm Grove 500 7.0MM D&C Cost 450 8.0MM D&C Cost 400 9.0MM D&C Cost 350 300 Rate of Return, % 250 200 150 100 50 0 3.00 3.50 4.00 4.50 5.00 5.50 6.00 Natural Gas…
  43. Investor Presentation – Matador Resources Company – slide 43
    Midstream
  44. Investor Presentation – Matador Resources Company – slide 44
    Longwood Gathering and Disposal Systems(1) in Delaware Basin Longwood Gathering and Disposal Systems Activities Loving County, Texas Natural gas gathering and compression Water gathering Salt water disposal Oil gathering Cryogenic…
  45. Investor Presentation – Matador Resources Company – slide 45
    Midstream Initiatives Growing into Respectable Stand-Alone Business Expect to spend 38 million on midstream initiatives in the Permian Basin in 2015 Matador expects Longwood to be able to support its own sources of financing…
  46. Investor Presentation – Matador Resources Company – slide 46
    Loving County, Texas Biggest Midstream Project to Date Natural gas gathering and compression Cryogenic natural gas processing plant Water gathering Salt water disposal Oil gathering SWD = Salt Water Disposal 47
  47. Investor Presentation – Matador Resources Company – slide 47
    2015 Capital Investment Plan
  48. Investor Presentation – Matador Resources Company – slide 48
    2015 Capital Investment Plan Reducing Drilling Program in 2015 Reducing drilling program from 5 rigs to 2 rigs due to lower commodity prices, with primary focus on Permian (Delaware) Basin Plan to be operating 2 rigs by start of Q2…
  49. Investor Presentation – Matador Resources Company – slide 49
    2015 Capital Investment Plan Summary 2015E CapEx of 350 million 2015E CapEx by Expense Type Decrease of 43% from 2014 CapEx of 610 million Facilities, Infrastructure, Etc. Estimated service cost reductions of 15 to 20% as observed…
  50. Investor Presentation – Matador Resources Company – slide 50
    Shifting Focus to the Permian in 2015 Detail of 2015E CapEx 2015 Anticipated 2014 Drilled, 2015 Anticipated Drilling, 2015 Anticipated Drilling & 2016 Anticipated 2015 Anticipated Completion(1) Completion Completion(2) First…
  51. Investor Presentation – Matador Resources Company – slide 51
    2015 Production Estimates Oil Equivalent Growth of 41% 2015E Oil Production Oil Production Growth (Bbl/d) Estimated oil production of 4.0 to 4.2 million barrels 12,000 11,223 23% increase from 2014 despite decreased drilling 10,000…
  52. Investor Presentation – Matador Resources Company – slide 52
    2015 Financial Estimates Oil and Natural Gas Revenues(2) (millions) 2015E Revenues and Adjusted EBITDA(1)(2) Realized Oil and Natural Gas Prices, /Bbl and /Mcf Revenues and Adjusted EBITDA(1)(2) growth significantly impacted 76.39…
  53. Investor Presentation – Matador Resources Company – slide 53
    Funding for 2015 Capital Investment Plan Anticipate funding 2015 capital expenditures through operating cash flows, borrowings under revolving credit facility, other bank debt and additional funding via capital markets Estimated…
  54. Investor Presentation – Matador Resources Company – slide 54
    Commodity Price and CapEx Estimates Significantly Impact Forecasts Sensitivity of 2015E Adjusted EBITDA(1) to Oil Price Relatively small improvements in oil price and service cost reductions can significantly improve financial…
  55. Investor Presentation – Matador Resources Company – slide 55
    Summary and 2015 Guidance Moving from 5 rigs to 2 rigs in 2015, with 2 rigs operating in Permian after Q1 2015 Permian drilling focused on Wolf development and further delineation of Ranger and Rustler Breaks prospect areas, plus…
  56. Investor Presentation – Matador Resources Company – slide 56
    Appendix
  57. Investor Presentation – Matador Resources Company – slide 57
    Previous Oil Price Declines Have Created Opportunities for Matador(1) Comparison of Major Oil Corrections and Major Matador Turning Points Since 1980 Length of Oil Price % Increase in Oil % Change in Decline Price Date Event Oil…
  58. Investor Presentation – Matador Resources Company – slide 58
    Matador Has Experienced Strong Reserves and Adjusted EBITDA(1) Growth in Recent Years Growth in PV-10(2) Over Last 5 Years PV-10(2) per Share 1,200 ( per share) SEC Pricing 91.48 oil 1,100 Oil, /Bbl 4.35 gas Gas, /MMBtu 1,000…
  59. Investor Presentation – Matador Resources Company – slide 59
    Matadors Continued Production Growth Average Daily Oil Production Average Daily Natural Gas Production (Bbl/d) 11,000 (MMcf/d) 68.5 9,095 41.9 5,843 39.8 34.1 35.4 3,317 23.0 422 91 2010 2011 2012 2013 2014 Jan. 2015…
  60. Investor Presentation – Matador Resources Company – slide 60
    2015 Hedging Profile 2015 Hedges Oil Hedges: 1.7 million barrels of oil hedged for 2015 at weighted average floor and ceiling prices of 83/Bbl and 100/Bbl, respectively Approximately 41% of oil hedged for 2015(1) Natural Gas…
  61. Investor Presentation – Matador Resources Company – slide 61
    Credit Agreement Status Strong, supportive bank group led by Royal Bank of Canada Borrowing base at 450 million (375 million conforming) based on July 31, 2014 reserves Not yet redetermined for YE 2014 reserves additions Borrowings…
  62. Investor Presentation – Matador Resources Company – slide 62
    Oil and Natural Gas Proved Reserves and PV-10(1) Growth By Area Permian 246.2 million, 24% Permian Permian 31.9 million, 5% 2.0 million, 1% Haynesville/CV 82.9 million, 13% Haynesville/CV 27.6 million, 6% Haynesville/CV 193.4…
  63. Investor Presentation – Matador Resources Company – slide 63
    Wolf Area Wolfcamp X/Y Wells Performing Above Expectations 10000 Dorothy White 1H has produced 310,000 BOE (66% oil) in 12.5 months Norton Schaub 1H has produced 122,000 BOE (69% oil) in 6 months Johnson 44-02S-B53 204H has…
  64. Investor Presentation – Matador Resources Company – slide 64
    Ranger Area 2nd Bone Spring Wells Performing Above Expectations 10000 Ranger 33 State Com 1H has produced 184,000 BOE (91% oil) in 15 months Pickard State 20-18-34 1H has produced 71,000 BOE (92% oil) in 6 months 2nd Bone Spring…
  65. Investor Presentation – Matador Resources Company – slide 65
    Rustler Breaks Wolfcamp B Well Performing Above Expectations 10000 Rustler Breaks 12-24-27 1H has produced 134,000 BOE (43% oil) in 9 months Wolfcamp B horizontal well in Rustler Breaks Area - Eddy County, NM Daily Production Rate,…
  66. Investor Presentation – Matador Resources Company – slide 66
    Board of Directors and Special Advisors Expertise and Stewardship Board Members Professional Experience Business Expertise David M. Laney - Past Chairman, Amtrak Board of Directors Law and Investments Lead Director - Former Partner,…
  67. Investor Presentation – Matador Resources Company – slide 67
    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 34 years Since…
  68. Investor Presentation – Matador Resources Company – slide 68
    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…
  69. Investor Presentation – Matador Resources Company – slide 69
    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,…
  70. Investor Presentation – Matador Resources Company – slide 70
    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,…
  71. Investor Presentation – Matador Resources Company – slide 71
    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,…

From the store

Browse maps, data & reports in the Shale Experts store