Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (May 2016)
69 slides from Matador Resources's investor presentation, May 10, 2016
Slide 1: May 2016 Investor Presentation
May 2016 Investor Presentation NYSE: MTDR Exhibit 99.1
Slide 2: Disclosure Statements
2 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: Company Summary
merry aie 4 Matador J 4 cm dy A RESOURCES COMPANY a : ; Company Summary
Slide 4: Company history and growth through the drill bit
2012, 2013 and 2014 capital spending focused primarily on developing Eagle Ford and transitioning to oil February 2012 IPO at $12.00; net cash proceeds of ~$136 million May 2014 Follow-on Offering at $25.00; net cash proceeds of ~$181 million September 2013 Follow-on Offering at $15.25; net cash pro
Slide 5: Company Overview
5 Company Overview Exchange: Ticker NYSE: MTDR Shares Outstanding(1) 93.3 million common shares Share Price(1) $20.08/share Market Capitalization(1) ~$1.9 billion Actual Actual % YoY 2014 Results 2015 Results 2016 Guidance Change Capital Spending $610 million $482 million(2) $325 million - 33% Total
Slide 6: Matador Resources Company – Operations Overview
Matador Resources Company – Operations Overview Market Capitalization(1) ~$1.9 billion Avg. Daily Production – Q1 2016(2) 23,846 BOE/d Oil (% total) 11,473 Bbl/d (48%) Natural Gas (% total) 74.2 MMcf/d (52%) Proved Reserves @ 3/31/2016 90.2 million BOE % Proved Developed 37% % Oil 56% 2016E CapEx(3)
Slide 7: Matador Has Made Tremendous Progress Since its IPO
Matador Has Made Tremendous Progress Since its IPO At IPO(1): February 7, 2012 Today(2) Difference Oil Production 414 Bbl/d (6% oil) 11,473 Bbl/d (48% oil) Proved Reserves 27 MMBOE (4% oil) 90 MMBOE (56% oil) Proved Oil Reserves 1.1 MMBbl 50.7 MMBbl Delaware Acreage ~7,500 net acres ~90,200 net acre
Slide 8: Q1 2016 Production Volumes Consistent with Projections
422 3,317 5,843 9,095 12,306 11,206 13,847 12,617 11,547 11,473 2011 2012 2013 2014 2015 1Q15 2Q15 3Q15 4Q15 1Q16 Q1 2016 Production Volumes Consistent with Projections Average Daily Oil Production (Bbl/d) Average Daily Natural Gas Production (MMcf/d) Average Daily Total Production (MBOE/d) Oil Prod
Slide 9: Matador's Reserves Volumes at an All-Time High
9 Matador’s Reserves Volumes at an All-Time High at March 31, 2016 6% 11% 8% 7% 68.7 million BOE 24.2 million Bbl oil (35% oil) PV-10(1): $1,043.4 million $91.48 oil / $4.35 gas YE 2014 Eagle Ford $603.8 million, 58% Haynesville/CV $193.4 million, 18% Delaware Basin $246.2 million, 24% 85.1 million
Slide 10: Net Debt / LTM EBITDA and liquidity
0.0x 0.0x 0.1x 2.0x 0.2x 0.7x 1.1x 1.3x 1.5x 1.6x 0.8x 1.0x 1.2x 0.6x 1.0x 1.3x 1.6x 1.4x 1.6x 1.5x 1.5x 2008 2009 2010 2011 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Net Debt / LTM EBITDA $101 $240 $256 $416 $340 $282 In iti a l P u b lic O ff e ri n g P
Slide 11: Delaware Basin Southeast New Mexico and West Texas
Delaware Basin Southeast New Mexico and West Texas
Slide 12: Delaware Basin Acreage Position and Recent Operations and Results
Delaware Basin Acreage Position and Recent Operations and Results 12 L E A LOVING WARD Matador Resources Acreage TWIN LAKES ~42,700 gross / ~30,300 net acres WOLF / LOVING AREA ~12,400 gross / ~7,700 net acres Jackson Trust RANGER ~31,500 gross / ~19,100 net acres ARROWHEAD ~47,400 gross / ~16,900 n
Slide 13: Understanding the Opportunities
Understanding the Opportunities 3rd Bone Spring L. Avalon 800’ Most current unconventional plays target one or two zones across a trend area. The Delaware Basin has over a dozen unique targets between the top of the Brushy Canyon and the Woodford. All logs plotted at same scale Delaware Basin Wolfca
Slide 14: Delaware Basin Inventory Continues to Increase
Delaware Basin Inventory Continues to Increase Matador has identified up to 3,543 gross (1,417 net) potential locations(1) for future drilling on its Delaware Basin acreage Only 118 gross (71.1 net) locations are PUD locations at December 31, 2015 Matador anticipates operating up to 2,263 gros
Slide 15: Improving Wolfcamp Drilling Times Significantly in 2015 and 2016
43 32 35 26 18 15 17.3 13.8 0 5 10 15 20 25 30 35 40 45 50 Loving County Wolfcamp Eddy County Wolfcamp Dri llin g D ays 2014 Average 2015 Planned 2015 Best Well 2016 Record Well Improving Wolfcamp Drilling Times Significantly in 2015 and 2016 15 Note: Best wells are Dorothy White 82-TTT-B33 WF #203H
Slide 16: 2015 Wolf Area Drilling Cost Improvements
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 H2 2014 Rigs Labor/ Supply Rentals Directional Fluids Casing/ Cement YE 2015 20% 9% 8% 6% 3% 24% 10% 22% 19% 12% 12% 17% 16 2015 Wolf Area Drilling Cost Improvements $7.4 $3.6 Drilli n g C o s ts, m illi o n s Rigs Labor/ Supply Rentals Directional Fluids
Slide 17: 2016 Anticipated Wolf Area Drilling Cost Improvements
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 H2 2014 YE 2015 YE 2016 51% Savings 17% Savings 2016 Anticipated Wolf Area Drilling Cost Improvements 17 Service Costs Service Costs Efficiencies Efficiencies $7.4 $3.6 $3.0 41% 59% 50% 50% Dri llin g Cos ts, milli o n s
Slide 18: 2015 Wolf Area Completion Cost Improvements
Stimulation Location Surface Rentals CTU Drillout Wireline $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 H2 2014 Stimulation Location Surface Rentals CTU/Drillout Wireline YE 2015 15% 12% 12% 9% 52% 18 2015 Wolf Area Completion Cost Improvements $4.6 $2.4 C o m p leti o n C o sts, milli o n s
Slide 19: 2016 Anticipated Wolf Area Completion Cost Improvements
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 H2 2014 YE 2015 YE 2016E 2016 Anticipated Wolf Area Completion Cost Improvements 19 $4.6 Service Costs 83% Service Costs 83% 75% 25% Efficiencies Efficiencies $2.4 $1.8 C o m p leti o n C o sts, milli o n s More to come? 48% Savings 25% Savings 17% 75%
Slide 20: Anticipated Wolf Area Total Drilling and Completion Cost Improvements
$0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 H2 2014 YE 2015 YE 2016E 25% 2016 Anticipated Wolf Area Total Drilling and Completion Cost Improvements 20 $12.0 $6.0 $4.8 Drilli n g a n d C o m p le ti o n C o s ts, m illi o n s $100,000 Cost Reduction ROR Increase ~2% More to come? Service Costs Service Costs
Slide 21: Evolution of Delaware Basin Frac Design – Reservoir Specific
21 7,500 bbl 8,400 bbl 500 Mlbs 210 ft. 35 ft. Gen 1 Gen 2 Testing 2,000 lbs/ft 2,000 lbs/ft 3,000 lbs/ft 40 Bbl/ft 30 Bbl/ft 40 Bbl/ft 35’ cluster spacing 50’ cluster spacing 35’ cluster Spacing 10 wells 13 wells 1 well Gen 1 Testing 2,000 lbs/ft 3,000 lbs/ft 40 Bbl/ft 40 Bbl/ft 35’ cluster spacing
Slide 22: Wolf Prospect Area – Continued Focus on Wolfcamp Development in 2016
Oil Eq. Oil Natural Gas % Pf (3) Choke Well (BOE/d) (Bbl/d) (MMcf/d) Oil (psi) (inches) 1,093 733 2.2 67% 1,410 36/64th 1,050 677 2.2 64% 3,000 28/64th Dick Jay 92-TTT-B01 WF #204H (Wolfcamp A-X) 1,553 906 3.9 58% 2,950 30/64th 1,009 539 2.8 53% 2,475 30/64th Total 4,705 2,855 11.1 61% 1,416 924 3.0
Slide 23: Wolf Inventory – Multi-Pay Development Potential
2nd Bone Spring Wolfcamp X/Y Wolf Inventory – Multi-Pay Development Potential ~660’ Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-XY Wolfcamp A Full Development Location 1 mile MRC Spacing Test Completed Full Development Spacing Pattern (Cross-Section View) 23 A-XY
Slide 24: Drilling Wells in Batch Mode / Central Production Facilities
Drilling Wells in Batch Mode / Central Production Facilities 24 Dick Jay / Barnett Development (Top-Down View) Dick Jay / Barnett Development (Cross-Section View) Dick Jay Pad Barnett Pad 2nd Bone Spring 3rd Bone Spring Wolfcamp A-Lower Wolfcamp A-XY Dick Jay 124H Dick Jay 204H Dick Jay 203H Dick Ja
Slide 25: Wolf Area Wolfcamp A-XY Wells Continue Strong Performance
10 100 1,000 10,000 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 P roduction R a te, BO E /d Time, Days Dorothy White #1H Norton Schaub #1H Billy Burt #203H Johnson #204H Barnett #201H Dorothy White #1H has produced 515 MBOE (68% oil) in 28 months Norton Schaub 84-TTT-B33 WF #201
Slide 26: Wolf – Estimated Returns by Formation
0 25 50 75 100 $30 $35 $40 $45 $50 $55 $60 R OR % WTI Oil Price, $/Bbl 2nd Bone Spring 500 MBOE $4.0 MM D&C ROR % 500 MBOE $5.0 MM D&C ROR % 400 MBOE $4.0 MM D&C ROR % 400 MBOE $5.0 MM D&C ROR % Wolf – Estimated Returns by Formation 26 Formation Development Well Cost(1)(2) (millions) EUR(3) (MBOE) %
Slide 27: Rustler Breaks – Focus on Wolfcamp Development in 2016
Rustler Breaks – Focus on Wolfcamp Development in 2016 27 Wolfcamp A-XY Wolfcamp B Matador Acreage Dr K #203H 24 hr IP: 1,241 BOE/d (69% oil) Scott Walker #204H 24 hr IP: 504 BOE/d (70% oil) Rustler Breaks #224H 24 hr IP: 987 BOE/d (44% oil) Guitar #202H 24 hr IP: 1,274 BOE/d (79% oil) Tiger #224H 2
Slide 28: Rustler Breaks Inventory – Multi-Pay Development Potential
Rustler Breaks Inventory – Multi-Pay Development Potential Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-XY Wolfcamp B ~80 0 ’ 171 178 183 188 173 235 167 1,637 Full Development Location Total Gross Locations(4)(5) Formation Development Well Costs(1)(2) (millions) E
Slide 29: Rustler Breaks – Wells Producing From Zones on Multi-Well Pad
Rustler Breaks – 5 Wells Producing From 3 Zones on Multi-Well Pad Bone Spring Lime Upper Avalon Shale Lower Avalon Shale First Bone Spring Sand Second Bone Spring Carbonate Third Bone Spring Carbonate Wolfcamp / Pennsylvanian Strawn Wolfcamp “C” Third Bone Spring Sand Gamma Ray INTER-Formational Sta
Slide 30: Rustler Breaks Well Cost Achievements
8.3 8.6 5.1 5.9 6.9 3.9 5.0 5.5 3.0 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Guitar #202H Tiger #224 Tiger #124H Tiger #204H Janie Conner #224 Janie Conner #124 Wolfcamp A 2016 Target Wolfcamp B 2016 Target 2nd Bone Springs 2016 Target C o m p le te d W el l C o st , $ m ill io n s 30 Rustler Breaks Well C
Slide 31: Rustler Breaks Wolfcamp B Wells Performing Above Expectations
10 100 1,000 10,000 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 P roduction R a te, BO E /d Time, Days Rustler Breaks #224H Tiger #224H Janie Conner #224H Rustler Breaks 12-24S-27E RB #224H has produced 260 MBOE (41% oil) in 24 months Tiger 14-24S-28E RB #224 has produced 280 MBOE (42%
Slide 32: Rustler Breaks Wolfcamp A-XY Wells Performing Above Expectations
10 100 1,000 10,000 0 50 100 150 200 250 300 350 400 P roduction R a te, BO E /d Time, Days Guitar #202H Tiger #204H Scott Walker #204H Dr. K #203H Guitar 10-24S-28E RB #202H produced 200 MBOE (76% oil) in 13 months Tiger 14-24S-28E RB #204H produced 215 MBOE (78% oil) in 10 months Scott Walker 36-2
Slide 33: Rustler Breaks – Estimated Returns by Formation
0 40 80 120 160 30 35 40 45 50 R O R, % WTI Oil Price, $/Bbl Rustler Breaks - Wolfcamp A-XY (85% oil) 800 MBOE, $5.0 MM 800 MBOE, $6.0 MM 600 MBOE, $5.0 MM 600 MBOE, $6.0 MM 0 20 40 60 80 100 30 35 40 45 50 R O R, % WTI Oil Price, $/Bbl Rustler Breaks - Wolfcamp B (45% oil) 1,000 MBOE, $5.5 MM 1,000
Slide 34: Single Wolfcamp B Well at Rustler Breaks Holds Potential Locations
Single Wolfcamp B Well at Rustler Breaks Holds Up To 15 Potential Locations 34 Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp B Wolfcamp A-XY One producing Wolfcamp B well holds 320 surface acres and up to 15 additional potential locations for future development 1/2
Slide 35: Ranger/Arrowhead – Bone Spring and Wolfcamp Development in 2016
35 2nd Bone Spring 3rd Bone Spring Wolfcamp D Wolfcamp A Cimarron State RN #134H - IP: 804 BOE/d (94% oil) Matador Acreage Ranger/Arrowhead – Bone Spring and Wolfcamp Development in 2016 2015 Accomplishments Merged with HEYCO adding ~60,000 gross and ~20,000 net acres(1) 12 gross (4.5 net) wel
Slide 36: Ranger Inventory – Multi-Well Development Potential
Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil Bone Spring $4.5 – $6.0 400 – 700 90 – 95% Wolfcamp $6.5 – $8.0 200 – 800* 80 – 85% Ranger Inventory – Multi-Well Development Potential 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-D * Based on Volumetrics and 4-8% R
Slide 37: Arrowhead Inventory – Multi-Well Development Potential
Arrowhead Inventory – Multi-Well Development Potential 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-D Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil Bone Spring $4.5 – $6.0 400 – 700 80 – 90% Wolfcamp $6.5 – $8.0 200 – 800* 80 – 85% * Based on Volumetrics and 4-8
Slide 38: Ranger Area Bone Spring Wells Continued Strong Performance
10 100 1,000 10,000 0 100 200 300 400 500 600 700 800 900 P roduction R a te, BO E /d Time, Days Ranger #121H Ranger #122H Pickard #121H Cimarron State #134H Ranger State 33-20S-35E RN #121H produced 250 MBOE (91% oil) in 29 months (2nd Bone Spring) Ranger State 33-20S-35E RN #122H produced 80 MBOE
Slide 39: Testing New Oil Shale Play in Twin Lakes Prospect
Testing New Oil Shale Play in Twin Lakes Prospect 39 Olivine State 5-16S-37E TL #1 (vertical Strawn completion) - IP = 691 BOE/d (84% oil) @ 350 psi on 32/64” choke Matador Resources Acreage M ic ro -C o u p le d C o u p le d One of the primary source rocks for Twin Lakes prospect area (~42,700 gr
Slide 40: Midstream
a‘, . 4 Matador ae cm Wore = Midstream
Slide 41: Longwood Gathering and Disposal Systems in Delaware Basin
41 Longwood Gathering and Disposal Systems(1) in Delaware Basin Loving County, TX Gas gathering Water gathering Salt water disposal Oil gathering Cryogenic gas processing plant Sold to EnLink Eddy County, NM Gas gathering and compression Cryogenic gas processing plant Water gathe
Slide 42: Wolf - Loving County, TX – Significant Midstream Footprint
42 Wolf - Loving County, TX – Significant Midstream Footprint Gas Gathering Water Gathering Salt Water Disposal Oil Gathering Matador Acreage Note: All acreage at May 3, 2016.
Slide 43: Rustler Breaks - Eddy County, NM – Repeating the Proven Wolf Model
43 Matador Acreage Note: All acreage at May 3, 2016. Gas gathering and compression Cryogenic gas processing plant – expected to be operational in Q3 2016 Water gathering (under evaluation) Salt water disposal (under evaluation) Rustler Breaks - Eddy County, NM – Repeating the Proven Wolf Mod
Slide 44: 2016 Capital Investment Plan Update
2016 Capital Investment Plan Update
Slide 45: 2016 Capital Investment Plan – Summary
N umb e r of O p e ra te d R ig s Ranger/Arrowhead Rustler Breaks Wolf Delaware Basin: 3-Rig Case We will keep the focus on our Delaware Basin assets and opportunities with the intent of creating and preserving long-term shareholder value Plan to run 3 rigs throughout 2016 Continue to improve
Slide 46: 2016 Capital Investment Plan – Summary
46 We estimate our capital budget in 2016 to be approximately $325 million (down 33% from 2015(1)) We expect to have sufficient liquidity to fund our 2016 capital investments – $118 million in cash and $300 million(2) in undrawn revolving credit facility at March 31, 2016 2016 Capital Investment
Slide 47: 2016 production growth and funding of outspend
47 We expect to grow oil production by about 11% and keep natural gas production close to flat; total BOE production growth of about 4% as compared to 2015 We expect to outspend cash flow by ~$230 million in 2016, including outspend associated with midstream and land, but anticipate funding most
Slide 48: 2016 Delaware Basin Operated Drilling Plan: 3-Rig Case
Matador’s 2016 Delaware Basin Operated Drilling Plan: 3-Rig Case(1) 48 Note: All acreage at May 3, 2016. Some tracts not shown on map. L E A LOVING WARD TWIN LAKES ~42,700 gross / ~30,300 net acres WOLF / LOVING AREA ~12,400 gross / ~7,700 net acres Jackson Trust RANGER ~31,500 gross / ~19,100 net a
Slide 49: Estimated returns by area and formation
0 40 80 120 160 200 240 30 35 40 45 50 55 60 R O R, % WTI Oil Price, $/Bbl Rustler Breaks - Wolfcamp A-XY (85% oil) 800 MBOE, $5.0 MM 800 MBOE, $6.0 MM 600 MBOE, $5.0 MM 600 MBOE, $6.0 MM 49 0 50 100 150 200 250 300 30 35 40 45 50 55 60 R O R, % WTI Oil Price, $/Bbl Wolf - Wolfcamp A-XY (70% oil) 1,
Slide 50: 2016E CapEx by Quarter – Revised Expectations
2016E CapEx by Quarter – Revised Expectations $52.5 $83.4 $60.0 $64.0 $21.1 $18.0 $1.0 $13.5 $3.5 $4.0 $4.0 $87.1 $104.9 $65.0 $68.0 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 1Q16 2Q16 3Q16 4Q16 D&C + Facilities Midstream Land, Seismic, Etc. (Discretionary) 2016E CapEx of ~$325 million − Decrease
Slide 51: 2016 Oil and Natural Gas Production and Adjusted EBITDA Estimates
$223 $108 $192 $263 $331 $125 $0 $100 $200 $300 $400 2013 2014 2015 2016E 37% (15%) (44%) Shows impact of EnLink transaction in 2015 2,133 3,320 4,492 4,800 4,285 5,870 9,108 9,133 2013 2014 2015 2016E 7% 0% 56% 37% 35% 55% 2,133 3,320 4,492 5,000 4,285 5,870 9,108 9,500 201 2014 2015 2016E 11% 4% 5
Slide 52: Hedging Profile
2.70 3.00 3.00 3.00 3.30 3.30 3.30 3.30 $3.60 $3.53 $3.53 $3.53 $3.42 $3.42 $3.42 $3.42 $2.64 $2.60 $2.60 $2.60 $2.34 $2.34 $2.34 $2.34 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Na tu ra l G as Vo
Slide 53: Credit Agreement Status
Strong, supportive bank group led by Royal Bank of Canada Borrowing base reduced on May 3, 2016 from $375 million to $300 million based on December 31, 2015 reserves using commodity price estimates prescribed by bank group First and only reduction in conforming borrowing base during two years
Slide 54: Summary and 2016 Guidance
54 Summary and 2016 Guidance (as Affirmed May 3, 2016) (1) For operations only. Does not include capital expenditures associated with the HEYCO merger or two associated joint ventures. (2) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Ad
Slide 55: Appendix
Fan . ) (Matador Pm cm ween el’ = Appendix
Slide 56: Eagle Ford – "Oil Bank"
56 Eagle Ford – “Oil Bank” Note: All acreage at May 3, 2016. 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 Cowey Lewton Henn
Slide 57: Haynesville Operations
Note: All acreage at May 3, 2016. Haynesville Operations 57 5 gross (0.6 net) wells expected to be drilled and completed in the Haynesville in 2016 Estimated capital expenditures of ~$4 million 9 gross (1.9 net) Elm Grove wells operated by Chesapeake turned to sales in early 2016 ˗ Initial rat
Slide 58: Delaware Basin – A "World Class" Hydrocarbon System
58 Delaware Basin – A “World Class” Hydrocarbon System DELAWARE BASIN CENTRAL BASIN PLATFORM MIDLAND BASIN Wolfcamp Simpson ~23,000’ Sediment Fill East West Source “Kitchens” Now Unconventional Resource Plays 70,000 square mile area Up to 25,000 feet of multiple, stacked, petroleum systems Ext
Slide 59: Spectrum of Unconventional Play Types
Spectrum of Unconventional Play Types In general there is no consensus on the what an “unconventional” reservoir is… At Matador, we think of an unconventional reservoir as a spectrum of play types. The distribution and quality of these play types are both spatially and temporally variable. Play type
Slide 60: New Rig Technology for Horizontal Drilling – Saving Time and Money
7,500 psi Pressure Rating Estimated reduction in drilling time of 20 to 25% 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 rental separator BOP Wra
Slide 61: Future Bit Technology – The Evolution of the PDC bit
Future Bit Technology – The Evolution of the PDC bit 61 Matador continues to be at the forefront of new bit technology Smith Bits latest technology StingBlade design StingBlade design features Alternating Stinger/PDC cutters Stinger cutters cut troughs in the formation with the PDC cutters
Slide 62: Optimizing Artificial Lift Operations Across the Delaware Basin
Optimizing Artificial Lift Operations Across the Delaware Basin Using ESP’s to Optimize Production Accelerated production while maintaining a controlled drawdown of bottomhole pressure BHP gauges aid in analyzing 3rd Bone Spring reservoir properties Quick startup after shut in for maintenance
Slide 63: Board of Directors – Expertise and Stewardship
Board of Directors – Expertise and Stewardship Board Members Professional Experience Business Expertise David M. Laney Lead Director - Past Chairman, Amtrak Board of Directors - Former Partner, Jackson Walker LLP Law and Investments Reynald A. Baribault Director - Vice President / Engineering and Co
Slide 64: Special Board Advisors
Special Board Advisors Professional Experience Business Expertise Ronney F. Coleman - Retired President – North America, Archer - Former Vice President North America Pumping, BJ Services Co. Oilfield Services Marlan W. Downey - Retired President, ARCO International - Former President, Shell Pecten I
Slide 65: Proven Management Team – Experienced Leadership
Proven Management Team – Experienced Leadership Management Team Background and Prior Affiliations Industry Experience Matador Experience Joseph Wm. Foran Founder, Chairman and CEO - Matador Petroleum Corporation, Foran Oil Company, James Cleo Thompson Jr. 35 years Since Inception Matthew V. Hairford
Slide 66: Adjusted EBITDA Reconciliation
66 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 the Company’s consolidated financial statements, such as industry ana
Slide 67: Adjusted EBITDA reconciliation to Net (Loss) Income, quarterly
(In thousands) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Unaudited Adjusted EBITDA reconciliation to Net (Loss) Income: Net (loss) income $ (27,596) $ 7,153 $ 6,194 $ 3,941 $ 3,801 $ (6,676) $ (9,197) $ (21,188) $ (15,505) $ 25,119 $ 20,105 $ 15,
Slide 68: Adjusted EBITDA reconciliation to Net Income (Loss), annual
(In thousands) 2008 2009 2010 2011 2012 2013 2014 2015 Unaudited Adjusted EBITDA reconciliation to Net Income (Loss): Net income (loss) $103,878 ($14,425) $6,377 ($10,309) ($33,261) $45,094 $110,771 ($679,785) Interest expense - - 3 683 1,002 5,687 5,334 21,754 Total income tax (benefit) provision 2
Slide 69: PV-10 Reconciliation
69 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