Matador Resources Company · NYSE:MTDR
Matador Resources — Q2 2019 Earnings Presentation
23 slides from Matador Resources's earnings presentation, Jul 31, 2019
Slide 1: Second Quarter 2019 Earnings Release and Guidance Update
Second Quarter 2019 Earnings Release and Guidance Update July 31, 2019 NYSE: MTDR
Slide 2: Disclosure Statements
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 1933
Slide 3: Selected Operating and Financial Results
Selected Operating and Financial Results Three Months Ended June 30, March 31, June 30, 2019 2019 2018 Net Production Volumes:(1) Oil (MBbl) 3,346 3,107 2,706 Natural gas (Bcf) 13.4 13.7 12.7 Total oil equivalent (MBOE) 5,577 5,395 4,817 Average Daily Production Volumes:(1) Oil (Bbl/d) 36,767 34,517
Slide 4: Headlines and Highlights for Second Quarter 2019
Headlines and Highlights for Second Quarter 2019 Operated six rigs throughout Q2 2019 with no plans to add a seventh rig to 2019 drilling program; concluded completion operations in South Texas (Eagle Ford/Austin Chalk) in early May after drilling a nine-well program there Oil and total producti
Slide 5: Q2 2019 Oil and Oil Equivalent Volumes At Record Levels
Q2 2019 Oil and Oil Equivalent Volumes At Record Levels Average Daily Oil Production Average Daily Total Production (Bbl/d) (BOE/d) BOE up 2% sequentially; up 16% YoY 61,290 Oil up 7% sequentially; up 24% YoY 59,941 55,536 54,625 52,937 60,000 Oil Natural Gas 45,273 43,718 41,954 50,000 36,922 32,99
Slide 6: Delaware Basin Acreage Position and Recent Operations and Results
Delaware Basin Acreage Position and Recent Operations and Results Matador Acreage TWIN LAKES Running six rigs in Delaware Basin ~44,100 gross / ~31,200 net acres Rustler Breaks: One to three rigs (at times) drilling primarily Wolfcamp A-XY and Wolfcamp B wells – no Rustler Breaks completions in Q2
Slide 7: Wells Completed and Turned to Sales – Q2 2019
Wells Completed and Turned to Sales – Q2 2019 During the second quarter of 2019, the Delaware Basin accounted for 19 gross (15.2 net) wells completed and turned to sales, including 16 gross (15.1 net) operated and 3 gross (0.1 net) non-operated wells Includes three gross (2.4 net) wells above th
Slide 8: Updated 2019 Guidance (as Revised on July 31, 2019)
Updated 2019 Guidance (as Revised on July 31, 2019) Plan to run six rigs in the Delaware Basin throughout remainder of 2019 Four rigs in Rustler Breaks and Antelope Ridge, one rig in Wolf/Jackson Trust and one rig in Ranger/Arrowhead/Twin Lakes Estimated D/C/E CapEx unchanged at $640 to $680 m
Slide 9: Delaware Basin Operated Well Completions in 2019 – Updated
Delaware Basin Operated Well Completions in 2019 – Updated(1) At July 31, 2019, Matador expects to complete 85 gross (69.7 net) operated wells in 2019, including four gross (3.8 net) vertical wells, seven gross (6.9 net) Eagle Ford wells and one gross (1.0 net) Austin Chalk well in 2019 Matador
Slide 10: Updated 2019 Capital Investment Plan Summary (as of July 31, 2019)
Updated 2019 Capital Investment Plan Summary (as of July 31, 2019) 2019E D/C/E CapEx Guidance of $640 to $680 million 2019E Wells Turned to Sales − Affirmed full year 2019 D/C/E capital expenditures guidance at Original Guidance(1) Updated Guidance(2) July 31, 2019 − Expect to complete and turn to
Slide 11: San Mateo Asset Overview – Including Planned San Mateo Expansion
San Mateo Asset Overview – Including Planned San Mateo Expansion − San Mateo I (Formed February 2017): − Gas processing plant – 260 MMcf/d designed inlet capacity − Gas, oil and water gathering − Nine commercial SWDs (tenth in progress) Greater Stebbins Area − San Mateo II (Formed February 2019): −
Slide 12: Significant Growth in Delaware Midstream Business in Last Four Years
Significant Growth in Delaware Midstream Business in Last Four Years Q2 2016 Q2 2017 Q2 2018 Q2 2019 Growth(1) Designed Water Disposal 45,000 Bbl/d 95,000 Bbl/d 160,000 Bbl/d 250,000 Bbl/d 5.6x Capacity Average Water Disposed 30,000 Bbl/d 62,000 Bbl/d 111,000 Bbl/d 186,000 Bbl/d 6.2x Gathering Lines
Slide 13: Hedging Profile – Remainder of 2019 and 2020
Hedging Profile – Remainder of 2019 and 2020 Remainder of 2019 and 2020 Hedges(1) Oil (WTI) Costless Collars: ~3.9 million Bbl hedged for remainder of 2019 at weighted average floor and ceiling prices of $50/Bbl and $71/Bbl, respectively; ~4.9 million Bbl hedged for 2020 at weighted average floor
Slide 14: Reserves-Based Credit Agreement
Reserves-Based Credit Agreement Strong, supportive bank group led by Royal Bank of Canada In October 2018, amended Credit Agreement increased facility size to $1.5 billion (from $500 million); maturity extended to October 2023 Borrowing base increased to $900 million in April 2019 (from $850 m
Slide 15: San Mateo I Credit Facility Increased to $325 million in June 2019
San Mateo I Credit Facility Increased to $325 million in June 2019 Led by The Bank of Nova Scotia and supported by all banks in Matador’s reserves-based credit facility Covers San Mateo I only, not San Mateo II Facility initially sized at $250 million in December 2018 and increased to $325 mil
Slide 16: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Environmental Social Governance Commitment Reducing greenhouse to a proactive safety gas (GHG) emissions Certification of code culture with a total using advanced of conduct by all recordable incident rate capture and control employees well below the indust
Slide 17: Appendix
oN, § Matador {Wor RESOURCES COMPANY Appendix NYSE: MTDR
Slide 18: Adjusted EBITDA Reconciliation
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 consolidated financial statements, such as industry analysts, inves
Slide 19: Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated
Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated 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)
Slide 20: Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated
Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated 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)
Slide 21: Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated
Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated 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. Year Ended Dec
Slide 22: 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 (loss) and net cash provided by (used in) operating activities, respectively, for San Mateo Midstream, LLC an
Slide 23: 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,
Matador Resources Company — Q2 2019 Earnings Presentation on 6ix