Matador Resources Company · NYSE:MTDR
Matador Resources — Q1 2025 Earnings Presentation
49 slides from Matador Resources's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Earnings Release
First Quarter 2025 Earnings Release April 23, 2025
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 Resources Company (“Matador” or the “Company”) during the course of this presentation includes “forward- Investor Relations Contact looking statements” wit
Slide 3: Chairman's Remarks
Chairman’s Remarks April 23, 2025
Slide 4: Matador Finds Opportunities in Challenging Times
SLIDE A Matador Finds Opportunities in Challenging Times 1980s & Original Matador Added Experienced Advisors and Built a Strong 1990s Shareholder Base and Reserves 2003 Switched to Development of Unconventional Resources 2012 - HEYCO Acquisition and Matador Returns to the Delaware Basin 2016 2017 -
Slide 5: Precautionary Measures: RBL Debt Repayment Transactions
SLIDE B Precautionary Measures RBL DEBT OIL HEDGES REPAYMENT 2Q 2025: 35% - 40% of production 2H 2025: 55% - 60% of production $190 million in Q1 2025 TRANSACTIONS FLEXIBILITY $2.25 billion available in elected Sale of non-core assets and other commitments under the RBL and long-term transactions fo
Slide 6: Share Repurchase Program: Reasons for Why Now?
SLIDE C Share Repurchase Program: Reasons for “Why Now?” Significant Current Confidence Free Cash Share in Long-Term Flow Price Net Asset Growth Authorized $400 Million Share Repurchase Program 3
Slide 7: Matador is Buying
SLIDE D Matador is Buying Purchases by Directors and Officers in Q1 2025 Number of Purchases Number of Shares Total Dollar Amount $1.6 25 31,100 Million Matador Employees Purchasing Across the Board >95% Participation in Employee Stock Purchase Plan (ESPP) 4 Note: Based upon Section 16 Filings with
Slide 8: History of Increasing Value to Shareholders: Why Matador?
SLIDE E History of Increasing Value to Shareholders: Why Matador? Stronger Balance Sheet Accretive Acquisitions (1) 10 to 15 Years of Quality Drilling Inventory Expansion of Midstream Business (2) Steadily Increasing Fixed Dividend Share Repurchases (1) Average rates of return in excess of 50% based
Slide 9: 95% Oil Growth Since Q1 2023
SLIDE F 95% Oil Growth Since Q1 2023 115,030 84,777 58,941 Q1 23 Q1 24 Q1 25 Daily Oil Production in Barrels Per Day 6
Slide 10: The Delaware Basin: Most Prolific Basin in the United States
SLIDE G The Delaware Basin: Most Prolific Basin in the United States Delaware Brushy Canyon U. Avalon L. Avalon FBSG SBSC SBSG Midland TBSC TBSG WFMP A Sprayberry WFMP B WFMP A WFMP D WFMP B WFMP C Eagle Ford WFMP D Strawn Bakken Niobrara Marcellus Austin Chalk Barnett Barnett Bakken Niobrara Eagle
Slide 11: Growing Core Delaware Basin Acreage
SLIDE H Growing Core Delaware Basin Acreage IPO in 2012 Today ~7,500 Net Acres ~198,700 Net Acres ~9,000 BOE/d ~207,000 BOE/d New Mexico New Mexico Texas Texas Matador Acreage Matador Acreage Note: All acreage as of September 30, 2012. Note: All acreage as of December 31, 2024. 8 Note: Some tracts n
Slide 12: 10 to 15 Years of Inventory with Average Returns Greater Than 50% ROR
SLIDE I (1) 10 to 15 Years of Inventory with Average Returns Greater Than 50% ROR Total Net Inventory Lateral Length 18.3 Million Feet 1,869 Net 15.0 Million Feet Locations 13.2 Million Feet December 31, 2022 December 31, 2023 December 31, 2024 (1) Average rates of return in excess of 50% based on f
Slide 13: Industry Leading Per-Well Productivity
SLIDE J (1) Industry Leading Per-Well Productivity Average Oil EUR (MBbl) Source: Enverus data accessed in April 2025 Note: Includes all operated horizontal wells turned to production since January 1, 2020. Production data available through February 2025. Peers include APA, CIVI, CHRD, CTRA, DVN, EO
Slide 14: U-Turn Wells: Savings Through Operational Efficiencies
SLIDE K U-Turn Wells: Savings Through Operational Efficiencies PREVIOUS NOW Four Single-Mile Lateral Wells Two U-Turn Wells $3 Million in (1) Savings Per U-Turn Well Note: In addition to saving $3 million per well, U-Turn wells reduce project payout timing by up to 40% and lower the break-even price
Slide 15: Superior Profit Margins: Matador Leads the Industry
SLIDE L Superior Profit Margins: Matador Leads the Industry High Revenue $52.50 High Profit MTDR $50.00 Peer 2 Peer 3 $47.50 Peer 1 Revenue Per BOE Peer 4 Peer 10 $45.00 Peer 11 Peer 5 $42.50 Peer 8 Peer 6 Peer 9 Peer 7 Peer 12 $40.00 Low Revenue Low Profit $37.50 $27.50 $30.00 $32.50 $35.00 (1) $37
Slide 16: San Mateo Midstream Assets Provide Flow Assurance
SLIDE M San Mateo Midstream Assets Provide “Flow Assurance” ~590 Miles of three-stream pipelines Marlan Plant Gas Processing Capacity (1) of 520 MMcf per day Black River Plant Water Disposal Capacity Acquired by of 475,000 Bbl per day Matador from Ameredev Matador Acreage Matador Pipeline San Mateo
Slide 17: Marlan Plant Expected Online in Second Quarter 2025
SLIDE N Marlan Plant Expected Online in Second Quarter 2025 On Time 90% Complete (1) On Budget Note: Marlan Plant named in honor of Mr. Marlan W. Downey, former executive of Shell, former President of ARCO and a long-time MTDR Board advisor and shareholder. Marlan was a Sidney Powers Medal Award rec
Slide 18: Strong and Simple Financials
SLIDE O Strong and Simple Financials Leverage Ratio (1) <1.0x Current RBL Borrowings $405 Million (2) RBL Liquidity $1.8 Billion ($3.25B Current Borrowing Base) Note: As of March 31, 2025, does not include San Mateo’s credit facility, which is non-recourse to Matador. (1) Leverage ratio as of March
Slide 19: Underlying Asset Value for Matador Shareholders
SLIDE P Underlying Asset Value for Matador Shareholders Matador Reserves Value(1) + $9.2 Billion Additional Net Locations(2) + $3.4 Billion Midstream Value(3) + $1.5 Billion Bank Debt and Bonds(4) - $2.9 Billion Net Asset Value = $11.2 Billion (1) PV-10 as of December 31, 2024; using SEC pricing of
Slide 20: Why Invest in Matador
Why Invest in x We believe Matador is the highest-margin Delaware Basin operator in its peer group with: 1. Over 40 years of double-digit profitable growth 2. 10-15 years of inventory 3. Steadily increasing fixed dividend (increased six times in the past four years) 4. Share repurchase program 5. St
Slide 21: Appendix
ay, ¢ Matador fies Appendix April 23, 2025 NYSE
Slide 22: Matador Resources Company Overview Market Snapshot
Matador Resources Company Overview Market Snapshot NYSE Symbol MTDR Market Capitalization(1) $4.95 billion Avg. Daily Production – Q1 2025 198.6 MBOE/d Net Debt / LTM Adj. EBITDA(2)(3) – Q1 2025 0.95x DELAWARE BASIN HAYNESVILLE/ 198,700 net acres COTTON VALLEY Adj. Free Cash Flow(2) – Q1 2025 $141.9
Slide 23: Delaware Basin Extended Lateral Well Location Inventory
Delaware Basin Extended Lateral Well Location Inventory • Matador has identified up to 5,080 gross (1,869 net) remaining potential locations(1) for future drilling on its Delaware Basin acreage − Almost all intervals assume 160-acre well spacing (none less than 100-acre spacing at same true vertical
Slide 24: Q1 2025 Guidance vs. Q1 2025 Actuals
Q1 2025 Guidance(1) vs. Q1 2025 Actuals ▪ Total production better than expected − Higher-than-expected production from new wells turned to sales in Q4 2024 − Turned to sales first three-mile lateral wells late in Q1 − 11 new Ameredev wells came online late in the quarter with an average IP of 1,450
Slide 25: Horizontal Wells Completed and Turned to Sales – Q1 2025
Horizontal Wells Completed and Turned to Sales – Q1 2025 Operated Non-Operated Total Gross Operated and Non-Operated Gross Net Gross Net Gross Net Asset/Operating Area Well Completion Intervals Western Antelope Ridge - - - - - - No wells turned to sales in Q1 2025 (Rodney Robinson) 4-WC B, 15-WC A,
Slide 26: Hedging Profile – 2025
(1) Hedging Profile – 2025 WTI Oil Henry Hub Natural Gas Waha / Henry Hub Collars Collars Differential Swaps 45,000 Bbl/d Hedged H1 @ $60 x $86 30,000 MMBtu/d 2025: Hedged 35-40% of 2025: 150,000 MMBtu/d production Hedged @ -$0.59 2026: 70,000 Bbl/d @ $3.50 x $6.70 Hedged H2 @ $52 x $77 2025: 55-60%
Slide 27: Averaging 99% in Zone: 24/7 Geosteering
MAXCOM Operations Center = Recruiting + Training + Execution Averaging 99% in (1) Zone 24/7 Geosteering and Engineering Support 2018 2019 2020 2021 2022 2023 2024 Drilling Records: 28 47 36 44 49 56 58 Est. Savings $1.5 $6.1 $6.1 $7.4 $8.0 $9.5 $14.7 (millions): (1) Calculated based on well rig rele
Slide 28: MTDR's Senior Management are Buyers
MTDR’s Senior Management are Buyers Number of Net Shares Bought & Sold by Management (2021 to 2025)(1) 200,000 100,000 0 (200,000) (400,000) (600,000) (800,000) (1,000,000) (1,200,000) (1,400,000) (10,500,000) MTDR CIVI APA VTLE OVV SM FANG CTRA PR Buys / Sells 46 / 0 4 / 15 0/4 1 / 31 6/8 8 / 20 0
Slide 29: Increased Fixed Dividend Again in Q1 2025 – Six Times in Four Years
Increased Fixed Dividend Again in Q1 2025 – Six Times in Four Years! $1.25 $0.10 Q1 2021 Q1 2025 Annualized Dividend 26
Slide 30: Bonus Opportunity to Tap Cotton Valley Gas Bank
Bonus Opportunity to Tap Cotton Valley “Gas Bank” When Advantageous HAYNESVILLE/ COTTON VALLEY 17,300 net acres 100% HBP Texas Louisiana LNG LNG Cotton Valley Estimated Ultimate Recovery 200 to 300 Bcf 27
Slide 31: Significant Liquidity Creates Opportunities
Significant Liquidity Creates Opportunities ~$3.2 Billion Total Bankable Assets $3.5 Remaining $3.0 Assets Available to Increase $2.5 Liquidity ~$1.0 B ($ in Billions) $2.0 RBL $1.5 Liquidity: ~$1.8 B $1.0 $0.5 Current Borrowings $- $405 M RBL Borrowings Current Borrowings Elected Commitment 28 Note
Slide 32: Improving Drilling and Completion Costs
Improving Drilling and Completion Costs $1,200 $1,075 $1,000 $910 $880 Drilling and Completion Cost(1) ($ per completed lateral foot) $800 $600 $400 $200 $- (2) 2023 2024 2025E (1) Cost per completed lateral foot metric shown represents the D&C portion of operated horizontal well costs only. Exclude
Slide 33: San Mateo Record Results in Q1 2025
San Mateo Record Results in Q1 2025 San Mateo Average Natural Gas Gathering San Mateo Average Natural Gas Processing (MMcf/d) (MMcf/d) Record Quarter! Record Quarter! 500 470 500 454 456 425 431 424 434 393 399 400 400 355 300 300 200 200 100 100 0 0 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25
Slide 34: San Mateo's Continual Growth in 2025
San Mateo’s Continual Growth in 2025 $300 Natural Gas $285 Oil Water $253 San Mateo's Adjusted EBITDA ($ in millions)(1) $250 $198 $200 Natural $200 Gas $154 $150 $113 $96 Oil $100 $62 Water $50 $31 $12 $0 (2) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025E (3) Matador owns 51% of San Mateo Note:
Slide 35: Midstream Business Continues to Provide Value
Midstream Business Continues to Provide Value Flow Assurance Economic Benefit Plant Uptime Over 99% Growing $1.5 Billion in Value Estimated Value(1) (1) Estimated net to Matador as of April 23, 2025. Five Point is Matador’s joint venture partner in San Mateo. Matador and Five Point own 51% and 49%,
Slide 36: Full Year 2025 Guidance
Full Year 2025 Guidance April 23, 2025
Slide 37: 2025 Guidance (As Updated on April 23, 2025)
2025 Guidance (As Updated on April 23, 2025) February 20, 2025 April 23, 2025 %YoY Guidance Metric 2024 Actuals 2025 Guidance Range 2025 Guidance Range Change(1) Total Oil Production 99,808 Bbl/d 120,000 to 124,000 Bbl/d 117,000 to 119,000 Bbl/d + 18% Total Natural Gas Production 425.7 MMcf/d 492.0
Slide 38: Q2 2025 Guidance
Q2 2025 Guidance(1) Guidance Metric Q2 2025 Guidance Range Oil Production 121,500 to 122,500 Bbl/d New Natural Gas Production 507.0 to 513.0 MMcf/d Quarterly Records! Oil Equivalent Production 206,000 to 208,000 BOE/d D/C/E CapEx(2) $330 to $390 million Midstream CapEx(3) $60 to $90 million Total D/
Slide 39: Wells Turned to Sales – 2025 Full Year & Q2 Guidance
Wells Turned to Sales – 2025 Full Year & Q2 Guidance(1) ▪ During full year 2025, Matador expects to turn to sales 135 gross (106.0 net) operated horizontal wells ‒ Matador estimates its average completed lateral length for operated wells turned to sales in 2025 should be ~10,200 feet (2) ‒ Matador e
Slide 40: 2025E Operating Cost Estimates
2025E Operating Cost Estimates(1) ($/BOE) 2024 Q1 2025 2025E 1 Production taxes, transportation and processing (“PTTP”) $4.91 $5.25 $4.50 to $5.50 2 Lease operating (“LOE”) $5.47 $5.96 $5.50 to $6.00 3 Plant and other midstream services operating (“POMS”) $2.74 $2.96 $2.75 to $3.25 4 Depletion, depr
Slide 41: Q1 2025 & Q2 2025E Commodity Price Differentials
Q1 2025 & Q2 2025E Commodity Price Differentials Q1 2025 Q2 2025E Actual Actual Realized Commodity Prices Benchmark(1) Differential Guidance(2) Realized Price Differential Oil Prices, per Bbl $71.42 $72.38 +$0.96 $0.00 to +$1.00 (Above Benchmark) Natural Gas Prices, per Mcf $3.87 $3.56 -$0.31 -$1.00
Slide 42: Appendix / Reconciliation
ay, ¢ Matador fies RESOURCES COMPANY Appendix / Reconciliation MIDR NYSE
Slide 43: 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
Slide 44: 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 and net cash provided by operating activities, respectively. (In thousands) 1Q 2024 2Q 202
Slide 45: Adjusted EBITDA Reconciliation – San Mateo (100%)
Adjusted EBITDA Reconciliation – San Mateo (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 operating activities, respectively, for San Mateo Midstream, LLC. (In thou
Slide 46: 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 operating activities, respectively, for San Mateo Midstream, LLC. Year Ended Decembe
Slide 47: 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) Mar
Slide 48: 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,
Slide 49: 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 — Q1 2025 Earnings Presentation on 6ix