Matador Resources Company · NYSE:MTDR
Matador Resources — Q1 2022 Earnings Presentation
29 slides from Matador Resources's earnings presentation, Apr 27, 2022
Slide 1: First Quarter 2022 Earnings Release
First Quarter 2022 Earnings Release April 26, 2022
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 include “forward- looking statements” with
Slide 3: Matador Resources Company Overview
Matador Resources Company Overview Market Snapshot NYSE Symbol MTDR Market Capitalization(1) $6.0 billion Avg. Daily Production – Q1 2022 94.0 MBOE/d DELAWARE BASIN HAYNESVILLE/ Net Debt / LTM Adj. EBITDA(2)(3) – Q1 2022 ~0.8x 124,800 net acres COTTON VALLEY Adj. Free Cash Flow(2) – Q1 2022 $245.7 m
Slide 4: Chairman's Remarks
Chairman’s Remarks April 26, 2022
Slide 5: 2022 Priorities and Milestones – Free Cash Flow, Operational Excellence and Shareholder Returns
2022 Priorities and Milestones – Free Cash Flow, SLIDE A Operational Excellence and Shareholder Returns 2022 Priorities Significant 2022 Milestones - Timeline Deliver Free Cash Flow 1 Next 11 Voni (Stateline) wells to sales • Grow production to >100,000 BOE/d Pay Down Debt 2 9 Rodney Robinson wells
Slide 6: Strong Results for First Quarter 2022
SLIDE B Strong Results for First Quarter 2022 • Generated adjusted free cash flow(1) of $246 million in Q1 2022 – Above Company Expectations! Record Financial • Oil and natural gas revenues of $627 million, Adjusted EBITDA(1) of $462 million and San Mateo Adjusted Results EBITDA(1) of $45 million –
Slide 7: Continued Progress in All Parts of San Mateo's Midstream Business
Continued Progress in All Parts of San Mateo’s SLIDE C Midstream Business (51% Owned by Matador) San Mateo Average Water Handling San Mateo Average Natural Gas Gathering(1) (MBbl/d) (MMcf/d) Q1 2022 up 10% sequentially; Record Quarter! Q1 2022 up 6% sequentially; Record Quarter! 400 up 48% YoY 300 u
Slide 8: Revolver Borrowings Outstanding – Quarterly Results
SLIDE D Revolver Borrowings Outstanding – Quarterly Results Balance Paid Down to $0 in April 2022 ($ in millions) $2,000 $475 million repaid from end of Q3 2020 through April 2022 Fully repaid remaining $50 million in April 2022 $1,500 $1.225 billion $1,000 Borrowing Base $800 Elected Commitment $6
Slide 9: Maintaining Low CapEx During High Commodity Prices
Maintaining Low CapEx During High Commodity Prices SLIDE E Continued Improvement in Execution and Efficiency Gains Drilling & Completion (D&C) CapEx/ft(1) Operational Improvement Spotlight: $1,750 D&C CapEx/ft $100 “Remote” Simul-Frac WTI Oil Price $90 Remote Simul-Frac is an operation to simultan
Slide 10: Delivering Strong Well Results All Around the Delaware Basin
SLIDE F Delivering Strong Well Results All Around the Delaware Basin! Matador Acreage TWIN LAKES ~42,900 gross / ~20,500 net acres CURRENT DELAWARE 2021 Uncle Ches Wells ARROWHEAD 2nd Bone Spring Uncle Ches #127H and #128H have BASIN ACTIVITY ~64,500 gross / ~26,000 net acres produced 755 MBOE (90%
Slide 11: Operational and Financial Results
Operational and Financial Results April 26, 2022
Slide 12: Q1 2022 Selected Operating and Financial Results
Q1 2022 Selected Operating and Financial Results Three Months Ended March 31, December 31, March 31, 2022 2021 2021 (1) Net Production Volumes: Oil (MBbl) 4,820 4,578 3,738 Natural gas (Bcf) 21.8 20.7 17.5 Total oil equivalent (MBOE) 8,457 8,030 6,658 (1) Average Daily Production Volumes: Oil (Bbl/d
Slide 13: 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) Record Quarter! (BOE/d) Record Quarter! Q1 2022 BOE up 8% sequentially; Q1 2022 BOE up 8% sequentially; 110,000 up 27% YoY 110,000 up 31% YoY 93,969 93
Slide 14: Wells Completed and Turned to Sales – Q1 2022
Wells Completed and Turned to Sales – Q1 2022 During the first quarter of 2022, Matador completed and turned to sales a total of 44 gross (26.8 net) wells in its various operating areas. This total was comprised of 26 gross (24.2 net) operated wells and 18 gross (2.6 net) non-operated wells. All 2
Slide 15: Summary and 2022 Guidance (as Provided on February 22, 2022)
Summary and 2022 Guidance (as Provided on February 22, 2022) Actual %YoY Guidance Metric 2022 Guidance 2021 Results Change(1) Total Oil Production 17.8 million Bbl 21.0 to 22.0 million Bbl + 21% Total Natural Gas Production 81.7 Bcf 92.0 to 98.0 Bcf + 16% Total Oil Equivalent Production 31.5 million
Slide 16: 2022 Capital Investment Plan Summary
2022 Capital Investment Plan Summary(1) (As Provided on February 22, 2022) Full Year 2022E CapEx(2) – $690 to $770 million (Delaware: Added 6th operated rig in late February 2022) 2022E Wells Turned to Sales CapEx Guidance Range Gross Net Drilling, Completing, Equipping $640 to $710 million Operated
Slide 17: 2022E Operating Cost Estimates (Unit Costs per BOE)
2022E Operating Cost Estimates (Unit Costs per BOE) (As Provided on February 22, 2022) Matador provides the following updated estimates for its 2022 unit operating costs as shown below 2020 2021 Q1 2022 2022E Production taxes, transportation and processing 1 $3.39 $5.69 $7.07 $6.75 to $7.25 (“PTTP
Slide 18: Hedging Profile – Remainder of 2022
Hedging Profile – Remainder of 2022(1) Oil Collars Midland-Cushing Basis Swaps Natural Gas Collars ~50% hedged for Q2-Q4 2022 ~25% hedged for Q2-Q4 2022 ~70-80% hedged for Q2-Q3 2022 ~50-55% hedged for Q4 2022 $110 $110 $110 20.0 $6.70 2,700 2,700 2,700 1,380 1,380 1,380 $6.36 $65 $65 $65 1,400 18.0
Slide 19: San Mateo – Differentiated Midstream Asset
San Mateo – Differentiated Midstream Asset Continues to Add Value to Matador(1) 2015-2016 2017-2018 2019-2020 2021+ ► Initial midstream build-out ► San Mateo formed in ► San Mateo II formed in ► Adj. free cash flow(2) in the Delaware Basin February 2017 – Owned February 2019 – Owned generation – $87
Slide 20: 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 1 Mile Greater Stebbins Area 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
Slide 21: Committed to Environmental, Social and Governance (ESG) Stewardship
Committed to Environmental, Social and Governance (ESG) Stewardship Matador is committed to creating long-term value for its stakeholders in a responsible manner by pursuing sound growth and earnings objectives and exercising prudence in the uses of its assets and resources. In December 2021, Matado
Slide 22: Appendix
aN, ¢ Matador | RESOURCES COMPANY tins Appendix MIDR NYSE
Slide 23: Matador Resources and San Mateo Credit Facilities
Increased by 48% in April 2022! Reduced to $0 at April 26, 2022! Matador Resources and San Mateo Credit Facilities Matador Credit Agreement Summary Bank group led by Royal Bank of Canada Last Elected Borrowings Letters of Credit Financial Covenant: Facility Maturity Borrowing Financial Covenant: Res
Slide 24: 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 25: 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) 3Q 2013
Slide 26: 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,
Slide 27: Adjusted EBITDA Reconciliation
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
Slide 28: 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 29: 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 Year Ended (In tho
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