Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Day (February 2015)
82 slides from Matador Resources's investor day presentation, Feb 5, 2015
Slide 1: 2015 Analyst Day Presentation
February 5, 2015 2015 Analyst Day Presentation NYSE: MTDR Exhibit 99.2
Slide 2: Disclosure Statements
1 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 19
Slide 3: Welcome and Opening Remarks
a“, ¢ Mata Wor man eal or Welcome and Opening Remarks
Slide 4: Previous Oil Price Declines Have Created Opportunities for Matador
3 Previous Oil Price Declines Have Created Opportunities for Matador(1) Comparison of Major Oil Corrections and Major Matador Turning Points Since 1980 Date Event % Change in Oil Price Length of Oil Price Decline (in trading days) % Increase in Oil Price – 1-Year Post-Low 1986 Saudi Market Share War
Slide 5: Today's Agenda
4 Today’s Agenda Welcome and Opening Remarks Joseph Wm. Foran, Chairman and CEO Special Guests: George M. Yates, CEO, HEYCO Energy Group, Inc.; other HEYCO team members HEYCO Acquisition and Midstream Initiatives Matthew V. Hairford, President 2015 Capital Investment Plan David E. Lanc
Slide 6: Keys to Matador's Success Over Last Years
Keys to Matador’s Success Over Last 35 Years(1) 5 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 Special Advisor additions have strengthened Board skills and
Slide 7: Matador's Execution History – Doing What We Say
Matador’s Execution History – “Doing What We Say” Oil Production 414 Bbl/d of oil 6% oil 4,916 Bbl/d of oil 46% oil ~11,062 Bbl/d of oil 53% oil Proved Reserves 27 MMBOE 1.1 MMBbl of oil 4% oil 39 MMBOE 12.1 MMBbl of oil 31% oil 69 MMBOE 24.2 MMBbl of oil 35% oil PV-10(
Slide 8: 2014 Was Another Very Solid Year for Matador
2014 Was Another Very Solid Year for Matador 7 Record oil, natural gas and total oil equivalent production Oil production of 3.32 million barrels, up 56% from 2.13 million barrels in 2013 Natural gas production of 15.3 Bcf, up 18% from 12.9 Bcf in 2013 Total oil equivalent production of 5.9
Slide 9: 2014 Was Another Very Solid Year for Matador
2014 Was Another Very Solid Year for Matador 8 Strong execution in each of our primary operating areas Eagle Ford Eagle Ford average daily oil production up 44% from ~6,400 Bbl/d in Q4 2013 to ~9,100 Bbl/d in Q4 2014 Continued improvement in drilling times, completion and production operatio
Slide 10: Matador's Continued Production Growth
Matador’s Continued Production Growth Average Daily Oil Production (Bbl/d) Average Daily Natural Gas Production (MMcf/d) Average Daily Total Production (MBOE/d) Oil Production Mix (% of Average Daily Production) 9 91 422 3,317 5,843 9,095 11,000 2010 2011 2012 2013 2014 Jan. 2015 Growth since IPO 3.
Slide 11: Oil and Natural Gas Proved Reserves and PV-10 Growth By Area
10 Oil and Natural Gas Proved Reserves and PV-10(1) Growth By Area YE 2013 Total proved reserves = 68.7 million BOE PV-10(1): $1,043.4 million $91.48 oil / $4.35 natural gas (1) PV-10 is a non-GAAP financial measure. For a reconciliation of Standardized Measure (GAAP) to PV-10 (non-GAAP), see Append
Slide 12: PV-10, Adjusted EBITDA and Shares Growth
(1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see Appendix. (2) PV-10 is a non-GAAP financial measure. For a reconciliation of Standardized Measu
Slide 13: Strong Balance Sheet Metrics Relative to Peers
91.4% 81.2% 62.2% 55.2% 54.4% 54.4% 50.2% 46.2% 41.7% 39.8% 38.4% 16.4% 15.2% 13.6% 9.6% Peer L Peer B Peer I Peer C Peer G Peer N Peer H Peer E Peer F Peer A Peer D Peer J 0 Peer M Peer K 3.5x 3.4x 3.0x 2.8x 2.4x 2.3x 2.3x 1.8x 1.8x 1.7x 1.6x 1.6x 1.4x 1.1x 1.0x Peer K Peer N 0 Peer J Peer D Peer L
Slide 14: Adjusting to Significantly Lower Commodity Prices in 2015
13 Adjusting to Significantly Lower Commodity Prices in 2015 0 2 4 6 8 10 12 14 16 0 20 40 60 80 100 120 140 160 1/1/2007 1/1/2008 1/1/2009 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 G a s P ri c e , $ /M M B tu O il P ri c e $ /Bbl , O il /G a s P ri c e Ratio _ Date Oil Price Oil/Gas Pr
Slide 15: Matador's Focus Points for 2015
Matador’s Focus Points for 2015 14 1. Look for creative opportunities for deals and relationships, such as our pending joinder with HEYCO 2. Increase the cross-training and technical skills of Matador’s staff to continue to improve execution on our existing prospects 3. Apply the latest technology a
Slide 16: HEYCO Combination Overview
a“, ¢ Mata Wor man eal or HEYCO Combination Overview
Slide 17: Transaction Summary
Transaction Summary 16 (1) As part of the consideration for the combination, Matador will issue 150,000 shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”). Each share of Series A Preferred Stock will automatically convert into ten shares of Matador Common Stock, subject
Slide 18: Delaware Basin Combination Attributes
17 Delaware Basin Combination Attributes Matador adding approximately 58,600 gross (18,200 net) acres(1) located in the northern Delaware Basin in Lea and Eddy Counties, New Mexico from privately-held Harvey E. Yates Company (“HEYCO”) Strategically links Matador’s existing Ranger and Rustler Bre
Slide 19: Delaware Basin Combination Attributes
18 Delaware Basin Combination Attributes Average net daily production of approximately 530 BOE per day (approximately 70% oil) in Q4 2014 Average net daily production includes contributions from the CTA State Com #3H and #4H Net PDP reserves of 1.3 million BOE at September 1, 2014 (approximate
Slide 20: Midstream
RESOURCES COMPANY MIDSTREAM
Slide 21: Longwood Gathering and Disposal Systems in Delaware Basin
20 Longwood Gathering and Disposal Systems(1) in Delaware Basin Loving County, TX Natural gas gathering and compression Water gathering Salt water disposal Oil gathering Cryogenic natural gas processing plant Eddy County, NM Natural gas gathering and compression Water gathering S
Slide 22: Midstream Initiatives Growing into Respectable Stand-Alone Business
Midstream Initiatives Growing into Respectable Stand-Alone Business 21 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 Additional third-party volumes and a contemplated natural gas pr
Slide 23: Loving County, TX – Biggest Midstream Project to Date
22 Loving County, TX – 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
Slide 24: 2015 Capital Investment Plan
2015 Capital Investment Plan
Slide 25: Matador Resources Company – Operations Overview
Matador Resources Company – Operations Overview Market Capitalization(1) ~$1.8 billion Avg Daily Production – Q4 2014(2) 20,807 BOE/d Oil (% total) 11,062 Bbl/d (53%) Natural Gas (% total) 58.5 MMcf/d (47%) Proved Reserves @ 12/31/2014 68.7 million BOE % Proved Developed 45% % Oil 35% 2015E CapEx(3)
Slide 26: 2015 Capital Investment Plan – Reducing Drilling Program in 2015
25 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 Increased working interests in Permian wells with 2-rig program leads to similar capital spending as a
Slide 27: 2015 Estimated Capital Expenditures
2015 estimated capital expenditures of ~$350 million − Decrease of ~43% from 2014 capital expenditures of just over $600 million − Estimated service cost reductions of only 15 to 20% observed thus far, but further cost reductions expected (up to 50% on some services) − Does not include any capital
Slide 28: 2015E Oil and Natural Gas Production
2015E Oil Production Estimated oil production of 4.0 to 4.2 million barrels − 23% increase from 2014 despite decreased drilling Average daily oil production of 11,200 Bbl/d, up from 9,100 Bbl/d in 2014 − Eagle Ford ~7,000 Bbl/d (63%) − Permian ~4,200 Bbl/d (37%) Quarterly production peaks in Q
Slide 29: 2015E Revenues and Adjusted EBITDA
2015E Revenues and Adjusted EBITDA(1)(2) Revenues and Adjusted EBITDA(1)(2) growth significantly impacted by lower estimated 2015 realized oil and natural gas prices − 2015E realized oil price of $50/Bbl vs ~$87/Bbl realized in 2014 − 2015E realized natural gas price of $3.00/Mcf vs ~5.00/Mcf in 2
Slide 30: 2015 Hedging Profile
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 Natural Gas Hedges: 11.4 Bcf of natural gas hedged for 2015 at weighted average
Slide 31: Funding for 2015 Capital Investment Plan
Funding for 2015 Capital Investment Plan 30 Anticipate funding 2015 capital expenditures through operating cash flows, borrowings under revolving credit facility, other bank debt and additional funding via capital markets Estimated operating capital outspend of ~$150 million in 2015 with estimat
Slide 32: Commodity Price and CapEx Estimates Significantly Impact Forecasts
Relatively small improvements in oil price and service cost reductions can significantly improve financial forecasts and reduce estimated CapEx $10/Bbl increase in oil price improves Adjusted EBITDA(1) by ~$25 million 10 to 15% in additional service cost reductions reduce CapEx by $35 to $50 m
Slide 33: 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 or any reserves added by pending HEYCO transaction Borrowings outstanding of $340 million at
Slide 34: 2015 Drilling and Completion Plan by Area
2014 Drilled, 2015 Anticipated Completion(1) 2015 Anticipated Drilling & Completion 2015 Anticipated Drilling, 2016 Anticipated Completion(2) 2015 Anticipated First Sales(2) 2015E CapEx Gross Wells(3) Net Wells(3) Gross Wells(3) Net Wells(3) Gross Wells(3) Net Wells(3) Gross Wells(3) Net Wells(3) (i
Slide 35: 2015 Eagle Ford Development Program
34 2015 Eagle Ford Development Program Note: All acreage at December 31, 2014. Some tracts not shown on map. Karnes Uvalde Medina Zavala Frio Dimmit La Salle Webb Atascosa McMullen Live Oak Bee Goliad Dewitt Gonzales Wilson San Antonio Glasscock Ranch Martin Ranch Northcut Affleck Troutt Sutton Love
Slide 36: Permian Basin Acreage Position and Initial Horizontal Wells
Oil Eq. Oil Natural Gas % Pf (4) Choke Well Test Date (BOE/d) (Bbl/d) (Mcf/d) Oil (psi) (inches) Arno #1H (Wolfcamp "X-Y") Mid-Sept 2014 1,110 300 4,900 27% 4,100 26/64th Norton Schaub 84-TTT-B33 WF #2010H (Wolfcamp "A") Late Dec 2014 875 608 1,600 69% 2,600 28/64th Successful performance of initial
Slide 37: Wolf Area Wolfcamp X-Y Wells Performing Above Expectations
10 100 1000 10000 0 50 100 150 200 250 300 350 400 Da ily P roduction Rat e, BO E/d ay Time, Days Dorothy White #1H Norton Schaub #1H Johnson 44-02S-B53 #204H 500 MBOE Type Curve 700 MBOE Type Curve 1,000 MBOE Type Curve Dorothy White #1H has produced ~310,000 BOE (66% oil) in 12.5 months Norton Sch
Slide 38: Ranger Area 2nd Bone Spring Wells Performing Above Expectations
37 Ranger Area 2nd Bone Spring Wells Performing Above Expectations 10 100 1000 10000 0 50 100 150 200 250 300 350 400 450 Da ily P roduction Rat e, BO E/d ay Time, Days Ranger 33 State Com #1H Pickard State 20-18-34 #1H 400 MBOE Type Curve 600 MBOE Type Curve Ranger 33 State Com #1H has produced ~18
Slide 39: Rustler Breaks Wolfcamp B Well Performing Above Expectations
10 100 1000 10000 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 Da ily P roduction Rat e, BO E/d ay Time, Days 500 MBOE Type Curve 600 MBOE Type Curve 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
Slide 40: 2015 Permian Basin Plan
E DD Y L E A LOVING WARD TWIN LAKES 42,537 gross / 29,714 net acres RUSTLER BREAKS / EDDY COUNTY 63,473 gross / 26,704 net acres RANGER / LEA COUNTY 28,994 gross / 16,307 net acres WOLF / LOVING COUNTY 11,194 gross / 7,155 net acres 39 Estimated capital expenditures of ~$245 million, including ~$3
Slide 41: Haynesville – Chesapeake Elm Grove Operations
Haynesville – Chesapeake Elm Grove Operations 40 Currently producing Currently drilling Anticipated future wells Producing wells Currently drilling or completing Anticipated future wells Date IP (Mcf/d) Choke Size (in) Flowing Pressure (psi) 8/2/2014 14,784 20/64 7035 8/2/2014 13,488 20/64 7325 8/24
Slide 42: Summary and 2015 Guidance
41 Summary and 2015 Guidance (1) Estimated 2014 oil and natural gas revenues and Adjusted EBITDA are estimates and pending completion and release of 2014 audited financial statements. (2) Estimated 2014 oil and natural gas revenues and Adjusted EBITDA derived from 2014 estimated realized oil and nat
Slide 43: Eagle Ford
RESOURCES COMPANY Eagle Ford
Slide 44: Eagle Ford – 2014 Accomplishments
Eagle Ford – 2014 Accomplishments 43 Increased net oil production rate by ~43% from 6,400 Bbl/d for 2013 to 9,100 Bbl/d for 2014 Added 2,900 net acres 63 net locations Evolved from Generation 5 to 7 frac design Drilled 36 operated wells 88% of wells in batch mode on 40-50 acre spacing
Slide 45: Eagle Ford Production – Oil Rate Increased
0 10,000 20,000 30,000 40,000 50,000 60,000 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Gas P ro d u ct io n , M cf /d O il P ro d u ct io n , Bb l/ d EAGLE FORD NET PRODUCTION ACTUAL NET
Slide 46: Eagle Ford – Well Positioned for Future Development
45 Eagle Ford – Well Positioned for Future Development Karnes Uvalde Medina Zavala Frio Dimmit La Salle Webb Atascosa McMullen Live Oak Bee Goliad De Witt Gonzales Wilson Glasscock Ranch Martin Ranch Northcut Affleck Troutt Sutton Love Cowey Lewton Hennig Nickel Ranch COMBO LIQUIDS / GAS FAIRWAY DRY
Slide 47: Eagle Ford Drilling – Cost Reductions
46 Batch mode cut costs by ~10% vs pad drilling ~21% vs single well drilling Shaved 2.5 days per well Modern rigs Latest technology & equipment Improved drilling techniques Expecting ~28% pricing reduction in 2015 Eagle Ford Drilling – Cost Reductions $219/ft $194/ft $173/ft $ /f t
Slide 48: Eagle Ford Completions – Industry Comparison
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 4,890 5,230 5,650 4,960 0 500 1,000 1,500 2,000 2,500 3,000 3,500 P ro p p ant Co n ce n tr atio n ( #/ft of perf’d la ter al) 2012 2013 2014 Eagle Ford Completions – Industry Comparison Matador designs some of
Slide 49: Eagle Ford Completions – Better Fracs for Less Money
Eagle Ford Completions – Better Fracs for Less Money Nearly doubled proppant volume Cut cost by 50% Service prices are expected to drop dramatically in 2015 48 Prop p ant l b s/ ft $ per l b . of p roppa n t pumpe d $.25 $.50 $.75 $.00 0 500 1000 1500 2000
Slide 50: Eagle Ford Completions – Cost Reductions
Eagle Ford Completions – Cost Reductions (1) Normalized to 5,000 foot lateral. (2) Per completed lateral foot. Non-frac completion costs cut by: ~50% since Q1 2012 (savings of over $750,000 per well(1)) Cut toe-prep costs by ~70% Cut drill out costs by ~47% Cut other costs by ~40% 31% si
Slide 51: Permian Basin
RESOURCES COMPANY Permian Basin
Slide 52: Understanding the Petroleum Systems for Maximum Oil Recovery
Understanding the Petroleum Systems for Maximum Oil Recovery Note: Diagram Modified from Bishop (2014). Eagle Ford & Haynesville Wolfcamp Bone Spring Conventional Unconventional Shelf Organic-Rich Basin Decoupled Coupled Micro-Coupled In-Situ Bone Spring Source Rock and Reservoir ReservoirRock Sourc
Slide 53: Stacked Pay: Hydrocarbon Column Creates Opportunity
Determining “Good, Better, Best” important as potential exceeds inter-formational stacked pay 2015 program will expand on intra-formational stacked pay tests performed in each asset area 4,000 feet of Hydrocarbon Column Creates Opportunity Wolf Area Type Log – Wolfcamp A (X/Y) X Test Y Test 80 a
Slide 54: Permian Area Geologic Focus
Twin Lakes: Prioritizing reservoir and target inventory focusing on Pennsylvanian-Wolfcamp micro-coupled source rocks; existing 3D seismic interpretation under way HEYCO-Ranger: Sweet spots for porosity, permeability, oil source, migration and entrapment: stacked reservoirs at point of entry
Slide 55: New Rig Improvements
New Rig Improvements 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 to 18 hours per well Integrated Mud-Gas Separator Estimated savings of 50% compared to renta
Slide 56: Latest Technology: Simultaneous Operations Capable Rigs
Latest Technology: Simultaneous Operations (Sim-Ops) Capable Rigs 55 Conventional Drilling Configuration Sim-Ops Capable with V-door turned 90° Space available for frac operations while simultaneously drilling on the same pad Drilling rig must leave location prior to frac operations
Slide 57: Simultaneous Operations (Sim-Ops)
Simultaneous Operations (Sim-Ops) Drilling Bone Spring Wolfcamp Reduces time from spud-to-sales by up to 25 days on 2-well pads
Slide 58: Microseismic in Wolf Prospect
Microseismic in Wolf Prospect Fractures generate sonic events as they propagate through the rock Microseismic uses downhole geophones installed in offset horizontals to measure these sonic events Half-length is a measure of the fracture propagation away from the wellbore In this example, onl
Slide 59: Matador Wolfcamp Frac Design – Starting Big in the Permian
0 500 1000 1500 2000 2500 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/2/2015 Lb s P rop pa nt /F t Date of Completion OTHER OPERATORS MATADOR WELLS 58 Matador Wolfcamp Frac Design – Starting Big in the Permian Note: Data points are all Wolfcamp wells in Loving County, TX.
Slide 60: Evolution of Permian Basin Frac Design
59 7,500 Bbl 9,000 Bbl 8,400 Bbl 600 Mlbs 420 Mlbs 500 Mlbs Evolution of Permian Basin Frac Design – Reservoir Specific 375 ft. 300 ft. 50 ft. 75 ft. 210 ft. 35 ft. Gen 1 Gen 2 2,000 lbs/ft 1,333 lbs/ft 40 Bbl/ft 20 Bbl/ft 50’ cluster spacing 75’ cluster spacing Gen 1 Gen 2 2,000 lbs/ft 2,000 lbs/ft
Slide 61: WTI Oil Price and Service Prices
$60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 7/5/2014 8/24/2014 10/13/2014 12/2/2014 1/21/2015 $0 $20 $40 $60 $80 $100 $120 $140 Fr ac In de x Pric e & Drilli ng Sp rea d Ra te W TI Oi l Pri ce WTI Oil Price Frac Index Price Drilling Spread Rate WTI Oil Price and Service Pri
Slide 62: Infrastructure Development Savings
Saltwater disposal savings $1.30/Bbl of produced water Infrastructure Development ...equivalent to a $5.10/Bbl uplift in oil prices Oil pipeline fee reduction ...an uplift of $.90/Bbl in oil prices 61
Slide 63: Potential Water Recycling Savings for Loving County
Potential Water Recycling Savings for Loving County Saltwater Disposal Produced Water Purchase Frac Water Frac Additives Fracturing Well (~200,000 Bbl) Recycling Potential savings of up to $600,000 per well ...equivalent to a $3.00/Bbl uplift in oil prices 62
Slide 64: Total Equivalent Oil Price Uplifts
$50.00 $7.50 $5.10 $4.50 $3.00 $3.00 $0.90 $74.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 Total Equivalent Oil Price Uplifts 63 $50.00 $7.50 $6.00 $4.50 $3.00 $3.00 $74.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 Current Oil Price Frac Savings Midstream SWD
Slide 65: Lease Development – Wolf
64 Lease Development – Wolf Dorothy White #1H Wolfcamp “X/Y” 12.5 mo.cum: 310,000 BOE (66% oil) Norton Schaub #1H Wolfcamp “X/Y” 6 mo.cum: 122,000 BOE (69% oil) Arno #1H Wolfcamp “X/Y” IP: 1,110 BOE/d 300 Bbl/d; 4.9 MMcf/d Johnson 44-02S-B53 #204H Wolfcamp “X/Y” 4 mo. cum: 117,000 BOE (65% oil) Barn
Slide 66: Well Inventory – Wolf
Well Inventory – Wolf ~660’ Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp X / Y Wolfcamp A 4 66 Eval. Ongoing 34 66 66 66 302 Full Development Location Gross Wells Development Well D&C Capex ($MM) EUR (MBOE) Bone Spring 7 - 8 450 - 600 Wolfcamp 9 - 10 650 – 1,100 Pota
Slide 67: Well Inventory – Rustler Breaks
Well Inventory – Rustler Breaks Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring X / Y Wolfcamp B ~800 ’ 65 73 73 77 69 77 65 499 Full Development Location Gross Wells Development Well D&C Capex ($MM) EUR (MBOE) Bone Spring 6 - 7 350 - 650 Wolfcamp 7 - 8 500 - 900 Potash Mine HEY
Slide 68: Well Inventory – Ranger
Well Inventory – Ranger Potash Mine HEYCO Acreage Matador Acreage ~1,320’ 1st Bone Spring 2nd Bone Spring 3rd Bone Spring X / Y Wolfcamp A-D ~750 ’ 43 55 30 70 6 204 1 mile MRC Horizontal Drilled Full Development Location Full Development Spacing Pattern (Cross-Section View) Gross Wells Development
Slide 69: Delaware Basin Inventory
Delaware Basin Inventory Matador has identified 1,445 gross / 960 net locations This inventory does not yet include HEYCO properties or Twin Lakes Delaware Basin E d d y L e a L o v in g W in k le r Ward Texas New Mexico Chaves Ranger Rustler Breaks Wolf Potash Mine HEYCO Acreage Matador Acreage
Slide 70: HEYCO Acreage a Strategic Fit
HEYCO Acreage a Strategic Fit 69 HEYCO combination facilitates horizontal development and upsized fracture treatments in a proven area Contiguous acreage provides opportunity for long laterals Many acreage blocks compete favorably with Matador inventory Matador will pursue operations whereve
Slide 71: Permian Basin Economics – Oil Price Sensitivities
70 Permian Basin Economics – Oil Price Sensitivities 0 50 100 150 200 250 40 45 50 55 60 65 70 ROR , % Oil Price, $ Ranger 33 400-700 MBOE ROR vs Oil Price 700 MBOE, $7.5 MM D&C 700 MBOE, $6 MM D&C 400 MBOE, $7.5 MM D&C 400 MBOE, $6 MM D&C uses $4 flat Gas price 0 10 20 30 40 50 60 70 80 90 100 40 4
Slide 72: Haynesville Shale Update
a“, ¢ Mata Wor man eal or Haynesville Shale Update
Slide 73: Haynesville – 260% Increase in Net Natural Gas Production
0.0 10.0 20.0 30.0 40.0 50.0 60.0 G as P ro du ct io n, M M cf /D ay Haynesville – 260% Increase in Net Natural Gas Production 72 50 Gross (5 Net) Wells Estimated CapEx $40 to $45MM (Less than 10% of 2014 CapEx) Natural G a s Produ c ti on, M M c f/ d
Slide 74: Haynesville – Chesapeake Elm Grove Program
Haynesville – Chesapeake Elm Grove Program 73 Currently producing Currently drilling Map Legend: Producing Wells Currently drilling or completing Anticipated future wells Sales Date IP (MCFD) Choke Size (in) Flowing Pressure (psi) 8/2/2014 14,784 20/64 7035 8/2/2014 13,488 20/64 7325 8/24/2014 10,24
Slide 75: Economics of Tier 1 Haynesville at Elm Grove
Economics of Tier 1 (10 Bcf) Haynesville at Elm Grove 74 Note: Individual well economics only. Excludes costs prior to drilling (i.e. acquisition or acreage costs). Economics use a NRI / WI of 85% but actual interests vary. Natural gas price differential = ($0.55)/Mcf. D&C cost = drilling and comple
Slide 76: 2015 Analyst Day Presentation
February 5, 2015 2015 Analyst Day Presentation NYSE: MTDR
Slide 77: Appendix
RESOURCES COMPANY Appendix
Slide 78: PV-10 Reconciliation
77 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
Slide 79: Adjusted EBITDA Reconciliation
78 Adjusted EBITDA Reconciliation This investor 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 consolidated financial statements, such as industry analysts, investo
Slide 80: Adjusted EBITDA Reconciliation
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, respectively. Note: LTM is last 12 months. LTM at LTM at (In thousan
Slide 81: Adjusted EBITDA Reconciliation
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, respectively. (In thousands) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012
Slide 82: Adjusted EBITDA Reconciliation
81 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, respectively. (In thousands) 12/31/2011 6/30/2012 12/31/2012 6/30