Matador Resources Company · NYSE:MTDR

Matador Resources — Q2 2023 Earnings Presentation

51 slides from Matador Resources's earnings presentation, Jul 26, 2023

1. Slide 1: Second Quarter 2023 Earnings Release

   Second Quarter 2023 Earnings Release July 25, 2023

2. Slide 2: Investor Relations Contact and Disclosure Statements

   Investor Relations Contact and Disclosure Statements Safe Harbor Statement – This presentation and statements made by representatives of Matador Investor Relations Contact Resources Company (“Matador” or the “Company”) during the course of this presentation includes “forward- looking statements” wit

3. Slide 3: Chairman's Remarks

   Chairman’s Remarks July 25, 2023

4. Slide 4: Matador Resources Company – Company Highlights

   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 Leverage and Continued Free Cash Flow ADVANCE FOCUS AREA ARROWHEAD RANGER Syne

5. Slide 5: MTDR Impressive Earnings Track Record

   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

6. Slide 6: Increasing Production

   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 guidance as of and as provided on April 25, 2023. 6 (2) Midpoint of guidance as of and

7. Slide 7: Decreasing Costs and Repaying Debt

   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 -$140 million Q2 2023 D/C/E CapEx ($ millions) Revolver Borrowings ($ millions) $3

8. Slide 8: Steady Growth, Measured Pace

   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 2.00 200 1.50 150 1.00 100 0.50 50 0 (1) 0.00 IPO 2013 2014 2015 2016 2017 2018 2019 2020

9. Slide 9: San Mateo – Synergistic Midstream Assets Continue to Add Value to Matador

   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 pipelines(1) (oil, natural gas and water) Rustler Breaks Processing Capacity 520

10. Slide 10: Steadily Increasing Fixed Dividend

    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 $0.20 $0.10 Q1 2021 Q4 2021 Q3 2022 Q1 2023 10 Note: As of July 25, 2023.

11. Slide 11: Operational and Financial Results

    Operational and Financial Results July 25, 2023

12. Slide 12: Q2 2023 Highlights

    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 which was 14% better than previous D/C/E expectations!(1)

13. Slide 13: Matador Resources Company Overview

    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 net acres COTTON VALLEY Adj. Free Cash Flow(2) – Q2 2023 $77.7 m

14. Slide 14: Significant 2023 Milestones – Timeline

    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 properties in 2H 2023 5 17 Stebbins wells turning to sales in 2H 2023 6

15. Slide 15: Headlines and Highlights – Q2 2023

    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 per day  Natural gas production of 326.0 million cubic fe

16. Slide 16: An Integrated E&P and Midstream Strategy: Progress in All Areas

    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% sequentially; 140,000 up 18% YoY 130,683 up 19% YoY 140,000 124,977 120,000

17. Slide 17: Delivering Strong Well Results All Around the Delaware Basin!

    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 turned to sales in Q2 2023 ARROWHEAD RANGER ~60,200 gross / ~23,200 n

18. Slide 18: Horizontal Wells Completed and Turned to Sales – Q2 2023

    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 (20.6 net) operated wells and 28 gross (2.2 net) non-operated

19. Slide 19: San Mateo Midstream Outperformed Expectations!

    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 Matador’s increased focus in Lea County and expected shut-ins for offs

20. Slide 20: Better Than Expected San Mateo Results in Q2 2023

    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% sequentially; Record Quarter! 450 up 13% YoY 450 up 28% YoY 400 400 373

21. Slide 21: San Mateo – Synergistic Midstream Asset

    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 $12 $4 $0 (3) 2015 2016 2017 2018 2019 2020 2021 2022 2023E Note: Figures (i) re

22. Slide 22: Full Year 2023 Guidance

    Full Year 2023 Guidance July 25, 2023

23. Slide 23: Summary and 2023 Guidance (as Updated on 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 26.4 to 27.3 million Bbl + 22% 26.8 to 27.5 million Bbl + 24% Total

24. Slide 24: Increased Oil and Natural Gas Production Guidance

    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 26,800 - 27,500 Oil 21,943 (MBbl) 17,840 (1) (2) 2021 2022 2023E Original 2023E U

25. Slide 25: 2023 Capital Investment Plan Summary

    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, Equipping $1.18 to $1.32 billion $1.10 to $1.22 billion Operated 118 91

26. Slide 26: 2023E Quarterly Turned-in-Line Cadence

    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 late June  In 2023, Matador expects to continue to focus its

27. Slide 27: 2023E Operating Cost Estimates (Unit Costs per BOE)

    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”) $4.08 $4.63 $5.13 $5.00 to $5.50 3 Plant and other midstrea

28. Slide 28: Q2 2023 & Q3 2023E Commodity Price Differentials

    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 (Below Benchmark) Natural Gas Prices, per Mcf $2.33 $2.61 +$0.28 +$0.2

29. Slide 29: ESG Stewardship

    ESG Stewardship July 25, 2023

30. Slide 30: Committed to Environmental, Social and Governance (ESG) Stewardship

    Committed to Environmental, Social and Governance (ESG) Stewardship Matador is committed to increasing the long-term value of its shares in a responsible manner. Matador’s aim has always been to reliably and profitably provide the energy that society needs in a manner that is safe, protects the envi

31. Slide 31: Committed to ESG Stewardship – Metrics

    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 >40% >60% >95% >70% reduction in direct reduction in of total water of w

32. Slide 32: Appendix

    aN, ¢ Matador | RESOURCES COMPANY tins Appendix MITDR July 25, 2023

33. Slide 33: Steady Oil Production Growth

    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 July 25, 2023.

34. Slide 34: Matador's Strategic Bolt-On Acquisition of Advance Energy

    Matador’s 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 net acres  99% Held-by-Production  Closed: 4/12/2023 

35. Slide 35: Matador + Advance: +30% Pro Forma Reserves Increase

    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 (Total Proved Reserves) +106.4 Million BOE (Total Proved Reserves) 106.4

36. Slide 36: "Horseshoe" Wells: 2-Mile Value in 1-Mile Section

    “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 sales in 2H 2023. 36 (1) In comparison to drilling two one-mil

37. Slide 37: Delaware Basin Extended Lateral Well Location Inventory

    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 extended lateral lengths whenever viable, and the total locations h

38. Slide 38: Q2 2023 Selected Operating and Financial Results

    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 (1) Average Daily Production Volumes: Oil (Bbl/d) 76,345 58,941 64,339

39. Slide 39: Matador Resources and San Mateo Credit Facilities

    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 Borrowing Outstanding Outstanding Maximum Net Debt to Size Date Base

40. Slide 40: Simple Balance Sheet – No Near-Term Debt Maturities

    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 Advance Assets not yet included $1.25 billion effective March 31

41. Slide 41: San Mateo Assets and Operations – "Three-Pipe" Offering

    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 Gas Gathering and Processing  460 MMcf/d of designed natural gas cryogenic processi

42. Slide 42: Pronto Assets and Operations

    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 Disposal well with strong proven injection capacity  Potential co

43. Slide 43: Record Setting MAXCOM Results – Celebrating 5 Years

    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 Total Depth – 2.4 Mile Lateral: 15.7 Days  Longest Well: 24

44. Slide 44: Hedging Profile – Remainder of 2023

    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 2023 Prices in $/MMBtu 44 (1) As of June 30, 2023.

45. Slide 45: Adjusted EBITDA & Adjusted Free Cash Flow Reconciliations

    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 used by management and external users of the Company’s consoli

46. Slide 46: Adjusted EBITDA Reconciliation – Matador Resources Company

    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 by operating activities, respectively. (In thousands) 2Q 2022

47. Slide 47: Adjusted EBITDA Reconciliation – San Mateo (100%)

    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) operating activities, respectively, for San Mateo Midstream,

48. Slide 48: 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 and net cash provided by (used in) operating activities, respectively, for San Mateo Midstream, LLC. Year End

49. Slide 49: Adjusted Free Cash Flow Reconciliation

    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 by operating activities. Three Months Ended (In thousands) Jun

50. Slide 50: 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,

51. Slide 51: PV-10 Reconciliation - Matador

    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 income. PV-10 is not an estimate of the fair market value of th

Matador Resources Company — Q2 2023 Earnings Presentation on 6ix