Matador Resources Company · NYSE:MTDR

Matador Resources — Q4 2019 Earnings Presentation

26 slides from Matador Resources's earnings presentation, Feb 25, 2020

  1. Slide 1: Year-End and Fourth Quarter 2019 Earnings Release

    Year-End and Fourth Quarter 2019 Earnings Release February 25, 2020 NYSE: MTDR

  2. Slide 2: Disclosure Statements

    Disclosure Statements Safe Harbor Statement – This presentation and statements made by representatives of Matador Resources Company (“Matador” or the “Company”) during the course of this presentation include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933

  3. Slide 3: Highlights for Fourth Quarter 2019

    Highlights for Fourth Quarter 2019 •Oil production of ~42,100 Bbl/d, up 6% from ~39,800 Bbl/d in Q3 2019 – Record Quarter! Record Production •Gas production of ~190.0 MMcf/d, up 6% from ~179.2 MMcf/d in Q3 2019 – Record Quarter! •Total production of ~73,700 BOE/d, up 6% from ~69,600 BOE/d in Q3 2019

  4. Slide 4: Selected Operating and Financial Results

    Selected Operating and Financial Results Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, December 31, 2019 2019 2018 2019 2018 2017 Net Production Volumes:(1) Oil (MBbl) 3,872 3,659 3,080 13,984 11,141 7,851 Natural gas (Bcf) 17.5 16.5 12.2 61.1 47.3 3

  5. Slide 5: Q4 2019 Volumes and Adjusted EBITDA at Record Levels

    Q4 2019 Volumes and Adjusted EBITDA(1) At Record Levels Average Daily Oil Production Average Daily Total Production (Bbl/d) (BOE/d) BOE up 6% sequentially; up 33% YoY 42,087 73,749 Oil up 6% sequentially; up 26% YoY 39,776 45,000 69,645 36,767 34,517 40,000 Oil Natural Gas 61,290 33,479 70,000 59,94

  6. Slide 6: A Step Change in Capital Efficiency: 2019 Results and 2020 Expectations

    A Step Change in Capital Efficiency: 2019 Results and 2020 Expectations Average Lateral Length and % of Longer Laterals CapEx per Foot(1) and Lateral Footage Turned to Sales 100% 700,000 $1,700 Average Lateral Length Lateral Feet Turned to Sales Average Drilling & Completions CapEx/foot, $/ft(1) 9,0

  7. Slide 7: Significant Growth in All Parts of San Mateo's Delaware Midstream Business

    Significant Growth in All Parts of San Mateo’s Delaware Midstream Business (51% Owned by Matador) San Mateo Average Natural Gas Gathering San Mateo Average Water Disposal (MMcf/d) (MBbl/d) 300 200 186 190 190 Up 21% sequentially; 262 Flat sequentially; 180 170 250 up 76% YoY up 24% YoY 155 160 153 2

  8. Slide 8: San Mateo – Recent Highlights and Performance

    San Mateo – Recent Highlights and Performance  March 2020 – 10th commercial SWD in Eddy County, NM expected online • Expects to have 13 commercial SWDs in Eddy County, NM and Loving County, TX with ~335,000 Bbl/d of designed disposal capacity  Late Q3 / Q4 2019 – Operated Black River Processing Pl

  9. Slide 9: Matador's Proved Reserves ~253 Million BOE at December 31, 2019

    Matador’s Proved Reserves ~253 Million BOE at December 31, 2019(1) Reserves and Oil Production Up 65% Over Last Two Years! Haynesville/CV Haynesville/CV Haynesville/CV 8.5 MMBOE, 4% 11.4 MMBOE, 8% 11.7 MMBOE, 5% Eagle Ford 12.4 MMBOE, 8% Eagle Ford Eagle Ford 12.2 MMBOE, 6% 11.2 MMBOE, 4% Delaware 1

  10. Slide 10: Significant Asset Growth per Share of Matador Stock

    Significant Asset Growth per Share of Matador Stock  In addition to ~1.3 Bbl of oil and ~5.4 Mcf of natural gas standing behind each share of stock, Matador has ~128,200 net leasehold and mineral acres in the Delaware Basin and owns 51% of San Mateo, an oil, natural gas and water midstream company

  11. Slide 11: Delaware Basin – Continuing to Deliver Strong Well Results

    Delaware Basin – Continuing to Deliver Strong Well Results! Matador Acreage TWIN LAKES Running six rigs in Delaware Basin ~46,400 gross / ~26,800 net acres  Rustler Breaks: One to two rigs (at times) drilling primarily Wolfcamp A-XY, Wolfcamp A- ARROWHEAD Lower and Wolfcamp B wells’ ~61,900 gross /

  12. Slide 12: Wells Completed and Turned to Sales – Q4 2019

    Wells Completed and Turned to Sales – Q4 2019  During the fourth quarter of 2019, the Delaware Basin accounted for 44 gross (14.8 net) wells completed and turned to sales, including 16 gross (12.4 net) operated and 28 gross (2.4 net) non-operated wells Operated Non-Operated Total Gross Operated Ass

  13. Slide 13: Wells Completed and Turned to Sales – Full Year 2019

    Wells Completed and Turned to Sales – Full Year 2019  During the full year of 2019, Matador completed and turned to sales 172 gross (75.3 net) wells, which was an increase of 6.1 net wells, including 6.4 net additional operated wells, as compared to its original estimates as provided on February 26

  14. Slide 14: Strong, Simple Financial Position and Significant Liquidity

    Strong, Simple Financial Position and Significant Liquidity  Strong, supportive bank group led by Royal Bank of Canada  Received lenders’ commitment to affirm borrowing base at $900 million in February 2020 based on December 31, 2019 reserves review − Matador has chosen to increase “elected borrow

  15. Slide 15: Reserves-Based Credit Agreement

    Reserves-Based Credit Agreement Expanding “Elected Commitment” to $700 million  Strong, supportive bank group led by Royal Bank of Canada  Facility size of $1.5 billion; matures in October 2023  Received lenders’ commitment to affirm borrowing base at $900 million in February 2020 based on Decemb

  16. Slide 16: San Mateo I Credit Facility

    San Mateo I Credit Facility Increased by $50 million to $375 million in October 2019  Led by The Bank of Nova Scotia and supported by current banks in Matador’s reserves-based credit facility  Currently covers San Mateo I only, not San Mateo II  Facility increased $50 million to $375 million from

  17. Slide 17: Hedging Profile – 2020, 2021 and 2022

    Hedging Profile – 2020, 2021 and 2022 2020, 2021 and 2022 Hedges(1)  Oil (WTI) Costless Collars: ~7.2 million Bbl hedged for 2019 at weighted average floor and ceiling prices of $48/Bbl and $67/Bbl, respectively  Midland-Cushing Oil Basis Differential: ~9.8 million Bbl hedged for 2020, 8.4 million

  18. Slide 18: Appendix

    Ny ; { Matador the Appendix NYSE: MTDR

  19. Slide 19: Adjusted EBITDA Reconciliation

    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 Company’s consolidated financial statements, such as industry analysts, inves

  20. Slide 20: Adjusted EBITDA Reconciliation – Matador Resources Company, Consolidated

    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 cash provided by operating activities, respectively. (In thousands)

  21. Slide 21: Adjusted EBITDA Reconciliation – Matador Resources Company, Consolidated

    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 cash provided by operating activities, respectively. (In thousands)

  22. Slide 22: Adjusted EBITDA Reconciliation – Matador Resources Company, Consolidated

    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 cash provided by operating activities, respectively. Year Ended Dec

  23. Slide 23: Adjusted EBITDA Reconciliation – San Mateo

    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) operating activities, respectively, for San Mateo Midstream, LLC an

  24. Slide 24: Adjusted EBITDA Reconciliation – San Mateo

    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) operating activities, respectively, for San Mateo Midstream, LLC an

  25. Slide 25: Adjusted Net Income and Adjusted Earnings Per Diluted Common Share

    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 income attributable to Matador Resources Company shareholders,

  26. Slide 26: PV-10 Reconciliation

    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 revenues. PV-10 is not an estimate of the fair market value of the Co

Matador Resources Company — Q4 2019 Earnings Presentation on 6ix