Matador Resources Company · NYSE:MTDR
Matador Resources — Shareholder Meeting (June 2023)
63 slides from Matador Resources's shareholder meeting presentation, Jun 9, 2023
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 9, 2023
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: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 9, 2023
Slide 4: Opening Remarks
Opening Remarks Joseph Wm. Foran, Founder, Chairman and CEO June 9, 2023
Slide 5: 40 Years of Generating Shareholder Value
40 YEARS OF GENERATING SHAREHOLDER VALUE 1983 2003 Today “Matador I” “Matador II” Initial Capital: $270,000 Initial Capital: $6 million Sale Price: $388 million Current Market Cap: $6.2 billion(1) Current Asset Base: $12 billion(2) Approximately 20% annual rate of return over time (1) Closing share
Slide 6: Steady Growth, Measured Pace
Steady Growth, Measured Pace Matador Total Proved Reserves Growth & BOE Per Share 500 (Includes Advance Acquisition) 463 MMBOE 4.50 3.9 BOE/Share 450 4.00 400 Total Proved Reserves, MMBOE 3.50 29% CAGR 350 3.00 BOE Per Share 300 2.50 250 2.00 200 1.50 150 1.00 100 50 0.50 0 0.00 IPO 2013 2014 2015 2
Slide 7: Introduction of Board Members and Special Advisors
Introduction of Board Members and Special Advisors June 9, 2023
Slide 8: Board of Directors - Expertise and Stewardship
Board of Directors - Expertise and Stewardship Professional • Matador Resources Company, Matador Petroleum Corporation, Foran Oil Company Experience • J. Cleo Thompson, Jr., Lawyer • Oil and Gas Exploration and Development Business • Finance and Strategic Planning Expertise • Law and ESG Joseph Wm.
Slide 9: Board of Directors - Expertise and Stewardship
Board of Directors - Expertise and Stewardship • President, CEO and Co-Founder, IPR Energy Partners, LLC Professional • Former Executive Vice President/Engineering and Co-Founder, NP Resources, LLC Experience • Former Vice President, Netherland, Sewell & Associates, Inc. • Oil and Gas Exploration an
Slide 10: Board of Directors - Expertise and Stewardship
Board of Directors - Expertise and Stewardship • Retired Trustee of a Private Family Trust Professional • Former Vice President, Texon, L.P. Experience • Former Vice President, Tripetrol Oil Trading, Inc. • Finance and Accounting Business • Marketing and Midstream Expertise • Strategic Planning Jame
Slide 11: Board Advisor - Expertise and Stewardship
Board Advisor - Expertise and Stewardship • ESG Coordinator, Matador Resources Company Professional • Former Senior Investor Relations officer and M&A Manager, Royal Dutch Shell PLC Experience • Former Corporate Strategy, NYSE Euronext and Intercontinental Exchange Group • ESG Business • Oil and Gas
Slide 12: Distinguished Shareholder Advisory Committee for Board Nominations
Distinguished Shareholder Advisory Committee for Board Nominations Committee Member Professional Experience - President, Stewart Home School J. Barry Banker - Original Matador investor - Chief Financial Officer, ROMCO Equipment Co. Craig T. Burkert - Former Director, Matador Resources Company - Of C
Slide 13: Recognition of Senior Staff and Special Guests
Recognition of Senior Staff and Special Guests June 9, 2023
Slide 14: Availability of KPMG LLP
Availability of KPMG LLP ▪ Chris Stakem of KPMG LLP, the Company’s independent registered public accounting firm is in attendance today ▪ Mr. Stakem is available to respond to any questions you may have 14
Slide 15: Tribute to Scott King
Tribute to Scott King 1958 – 2023 15
Slide 16: Other Important Items
Other Important Items ▪ To receive mail correspondence or routine investor alerts via our website, please email your request to investors@matadorresources.com ▪ Press releases and investor presentations are also available on our website, www.matadorresources.com 16
Slide 17: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 9, 2023
Slide 18: Summary of Proposals for Consideration at Annual Meeting
Summary of Proposals for Consideration at Annual Meeting ▪ Proposal 1 – Election of Directors ▪ Proposal 2 – Advisory Vote to Approve Named Executive Officer Compensation ▪ Proposal 3 – Ratification of the Appointment of KPMG LLP The Board of Directors recommends that you vote FOR the election of al
Slide 19: Introduction of Director Nominees
Introduction of Director Nominees Kenneth L. Stewart, Director Chair, Nominating Committee June 9, 2023
Slide 20: Proposal 1 – Election of Directors
Proposal 1 – Election of Directors Director Nominees ▪ Class III Directors (Term Expiring at 2026 Annual Meeting of Shareholders) Professional • Matador Resources Company, Matador Petroleum Corporation, Foran Oil Company Experience • J. Cleo Thompson, Jr., Lawyer • Oil and Gas Exploration and Develo
Slide 21: Proposal 1 – Election of Directors (cont.)
Proposal 1 – Election of Directors (cont.) Director Nominees ▪ Class III Directors (Term Expiring at 2026 Annual Meeting of Shareholders) Professional • Contractor in Charge of Research, Brightworks Wealth Management, LLC Experience • Former Portfolio Manager and Analyst – Natural Resources, T. Rowe
Slide 22: Advisory Vote on Named Executive Officer Compensation
Advisory Vote on Named Executive Officer Compensation R. Gaines Baty, Deputy Lead Independent Director Chair, Strategic Planning and Compensation Committee June 9, 2023
Slide 23: Proposal 2 – Advisory Vote on 2022 Named Executive Officer Compensation
Proposal 2 – Advisory Vote on 2022 Named Executive Officer Compensation ▪ The Company seeks a non-binding advisory vote from its shareholders regarding the 2022 compensation of its Named Executive Officers as described in the Proxy Statement ▪ “Resolved, that the compensation paid to the Company’s N
Slide 24: Ratification of Public Accounting Firm
Ratification of Public Accounting Firm William M. Byerley, Director Chair, Audit Committee June 9, 2023
Slide 25: Proposal 3 – Ratification of the Appointment of KPMG LLP
Proposal 3 – Ratification of the Appointment of KPMG LLP ▪ KPMG LLP (“KPMG”) served as the Company’s independent registered public accounting firm for the fiscal year ended December 31, 2022 ▪ The Audit Committee has appointed KPMG as the Company’s independent registered public accounting firm for t
Slide 26: Summary of Proposals for Consideration at Annual Meeting
Summary of Proposals for Consideration at Annual Meeting ▪ Proposal 1 – Election of Directors ▪ Proposal 2 – Advisory Vote to Approve Named Executive Officer Compensation ▪ Proposal 3 – Ratification of the Appointment of KPMG LLP The Board of Directors recommends that you vote FOR the election of al
Slide 27: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 9, 2023
Slide 28: Chairman’s Remarks
Chairman’s Remarks Joseph Wm. Foran, Founder, Chairman and CEO June 9, 2023
Slide 29: 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
Slide 30: Matador Resources Company – Company Highlights
Matador Resources Company – Company Highlights DELAWARE BASIN Strong, Proven Management Team 150,000 Net Acres (+16% since 12/31/22) 40-Year Track Record TWIN LAKES Strong, Simple Balance Sheet Low Leverage and Continued Free Cash Flow ADVANCE FOCUS AREA ARROWHEAD RANGER Synergistic Midstream Busine
Slide 31: Steady Oil Production Growth
Steady Oil Production Growth Approaching 150,000 BOE/d! 143,000 Total (MBOE/d) 111,735 334.0 Natural Gas (MMcf/d) 296.5 87,500 Oil 62,316 (Bbl/d) (1) Q4 22 Q2 23E Q4 23E (1) As of and as provided on February 21, 2023. Estimates only include production revenues from the Advance properties following c
Slide 32: Synergistic Midstream Assets
San Mate and – Synergistic Midstream Assets Continue to Add Value to Matador(1) Ranger Stebbins Gathering Assets ~500 miles of three-stream pipelines(1) (oil, natural gas and water) Rustler Breaks Processing Capacity 520 MMcf per day(2) Wolf Salt Water Disposal 460,000 Bbl per day of designed produc
Slide 33: “Horseshoe” Wells: 2-Mile Value in 1-Mile Section
“Horseshoe” Wells: 2-Mile Value in 1-Mile Section ➢ Up to 50% time savings(1) ➢ $10MM cost savings(1) ➢ Increases value of the acreage 1-mile section 1-mile section 1-mile section 1-mile section (1) Savings of drilling and completing two two-mile “horseshoe” wells, as compared to four one-mile horiz
Slide 34: Borrowings Outstanding
Borrowings Outstanding Prioritizing Debt Repayment Following Advance Acquisition Targeting RBL Borrowings Revolver Borrowings Completely Repaid in 2H 2024(2) 6.0x ($ in millions) Senior Notes (Bond Debt) Revolver Borrowings (1) $2,000 Leverage Senior Notes $1,899 6.0x $1,800 1,655 5.0x 5.0x $1,600 $
Slide 35: Intern Program
Intern Program 2022 Class 2023 Class 10 of 11 Accepted 14 Interns 90% Success Rate 35
Slide 36: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 9, 2023
Slide 37: Lead Independent Director’s Remarks
Lead Independent Director’s Remarks Timothy E. Parker, Lead Independent Director Chair, Capital Markets and Finance Committee June 9, 2023
Slide 38: Operations Report
Operations Report Reynald A. Baribault, Director Chair, Operations and Engineering and Prospect Committees June 9, 2023
Slide 39: Operational Integration on Advance Acreage
Operational Integration on Advance Acreage Drilling ➢ 100,000 ft of new hole drilled ➢ 128 operated Production wells producing Completions ➢ 300 Simul-Frac stages completed
Slide 40: “Horseshoe” Wells: 2-Mile Value in 1-Mile Section
“Horseshoe” Wells: 2-Mile Value in 1-Mile Section ➢ Up to 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 40 (1) Savings of drilling and completing the two mile “horseshoe” wells, as compared to four one-mile ho
Slide 41: Doubling Down on Remote Simul-Frac at Rodney Robinson
Doubling Down on Remote Simul-Frac at Rodney Robinson Two Remote Simul-Frac Crews ➢$2.5 million completion savings ➢Accelerated returns of offset production by 17 days 2023 Simul-Frac Plans ➢Over 50% of completions in 2023 will have Simul-Frac Ops 41
Slide 42: Cumulative Simul-Frac Well Count
Continued Improvement in Execution and Efficiency Gains 90 Remote-Frac Estimated to DOUBLE 80 Matador’s Ability to Simul-Frac! Cumulative Simul-Frac Well Count 70 60 40 additional 50 wells 40 30 20 10 Simul-Frac Alone 0 2021 2022 2023 Q1 E 42
Slide 43: Record Setting MAXCOM Results – Celebrating 5 Years
Record Setting MAXCOM Results – Celebrating 5 Years 215 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
Slide 44: Financial Update
Financial Update Brian J. Willey CFO, President of Midstream Operations and EVP June 9, 2023
Slide 45: “We Do What We Say We Will Do”
Matador Has Made Tremendous Progress Since IPO “We Do What We Say We Will Do” At IPO(1): February 7, 2012 Today Difference Delaware Acreage (Net) ~7,500 acres ~150,000 acres(2) +20-fold 414 BOE/d 126,500 BOE/d(3) Daily Oil Eq. Production +306-fold (6% oil) (60% oil) 27 MMBOE 463 MMBOE(4) Proved Rese
Slide 46: Building Delaware Basin Position “Brick by Brick”
Building Delaware Basin Position “Brick by Brick” Now 150,000 Net Acres 2012 2017 2023 ~7,500 Net Acres ~114,000 Net Acres ~150,000 Net Acres EDDY LEA EDDY LEA EDDY LEA LOVING LOVING LOVING Matador Acreage Matador Acreage Matador Acreage Advance Acreage WARD WARD Note: All acreage as of September 30
Slide 47: Daily Oil, Gas and BOE Production
Profitable Production Growth at a Measured Pace 160,000 140,000 Daily Oil, Gas and BOE Production 124,110 120,000 105,465 100,000 86,176 (BOE/d) 80,000 75,175 66,203 60,000 52,128 38,936 40,000 27,890 24,955 20,000 16,082 11,740 5,699 - (1) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 48: Total Proved Reserves, Million BOE
Consistent Reserves Growth 500 463 Oil Natural Gas Total Proved Reserves, Million BOE 400 323 300 270 253 215 200 153 106 100 85 69 52 27 0 (1) IPO 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Pro (2) Forma (1) Total Proved Reserves as of September 30, 2011. 48 (2) Pro forma as of December 31,
Slide 49: Growing Midstream and Upstream Businesses Together
Growing Midstream and Upstream Businesses Together ▪ San Mateo Value estimated at >$2.0 Billion(1) ▪ Building Pronto midstream business purchased in 2022 $250 Water Oil San Mateo's Adjusted EBITDA ($ in millions)(2) Natural Gas $198 $200 $185 $154 $150 Natural Gas $113 $96 $100 Oil $62 $50 Water $31
Slide 50: Matador’s Strategic Bolt-On Acquisition of Advance Energy
Matador’s Strategic Bolt-On Acquisition of Advance Energy 18,500 Net Acres Ranger Stebbins 25,450 BOE/d(1) 106 Million BOE Net Reserves(2) Rustler Breaks $2.87 Billion PV-10(3) Wolf Accretive to Midstream Value(4) Stateline Matador Acreage Acquired Advance Acreage 203 Net Locations(5) Existing Pipel
Slide 51: Simple Balance Sheet – No Near-Term Debt Maturities
Simple Balance Sheet – No Near-Term Debt Maturities SIGNIFICANT LIQUIDITY PAYING DOWN DEBT >$600 million at April 25, 2023 Targeting RBL Repayment in 2H 2024 ISSUED $500MM of BONDS ELECTED COMMITMENT INCREASED Upsized $100MM; 6x-8x over-subscribed $1.25 billion effective March 31, 2023 Leverage(1) A
Slide 52: Steadily Increasing Fixed Dividend
Steadily Increasing Fixed Dividend Returning Value to Consistent Growth Sustainable 6x Growth Since Q1 2021 Strong, Simple Balance Sheet Shareholders $85 Million Returned Since 2021 Annualized Dividend $0.60 $0.40 $0.20 $0.10 Q1 2021 Q4 2021 Q3 2022 Q1 2023 52
Slide 53: Steady Oil Production Growth
Steady Oil Production Growth Approaching 150,000 BOE/d! 143,000 Total (MBOE/d) 111,735 334.0 Natural Gas (MMcf/d) 296.5 87,500 Oil 62,316 (Bbl/d) (1) Q4 22 Q2 23E Q4 23E (1) As of and as provided on February 21, 2023. Estimates only include production revenues from the Advance properties following c
Slide 54: Chairman’s Closing Remarks
Chairman’s Closing Remarks Joseph Wm. Foran, Founder, Chairman and CEO June 9, 2023
Slide 55: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 9, 2023
Slide 56: Appendix
ay, {Matador fies Appendix MTDR June 9, 2023 NYSE
Slide 57: 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 58: 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) 1Q 2020
Slide 59: 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 60: 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
Slide 61: 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 62: 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 63: 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
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