Matador Resources Company · NYSE:MTDR
Matador Resources — Q1 2021 Earnings Presentation
29 slides from Matador Resources's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Earnings Release
First Quarter 2021 Earnings Release April 28, 2021
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: Chairman's Remarks
Chairman’s Remarks April 28, 2021
Slide 4: Strong Results for First Quarter 2021
SLIDE A Strong Results for First Quarter 2021 • Generated adjusted free cash flow(1) of $63.9 million in Q1 2021 – Above Company Expectations! Achieved Adjusted • Oil and natural gas revenues of $316.2 million and Adjusted EBITDA(1) of $198.1 million – Both Records! Free Cash Flow(1) • Declared and
Slide 5: Simple Balance Sheet – No Near-Term Debt Maturities
SLIDE B Simple Balance Sheet – No Near-Term Debt Maturities REPAID $135 MILLION PAYING DOWN DEBT in borrowings in Q4 2020 and Q1 2021 is a key objective for 2021 Q1 2021 LEVERAGE RATIO Strong, supportive bank group REDUCED TO 2.5x(1)(2) Better Than Expected led by Royal Bank of Canada Debt Maturitie
Slide 6: 2021 Priorities and Milestones
SLIDE C 2021 Priorities and Milestones 2021 Priorities Significant 2021 Milestones - Timeline 1 Deliver Free Cash Flow 1 4 Rodney Robinson wells to sales • Operating four rigs in Delaware Basin 2 First 13 Voni (Stateline) wells to sales • 26 more Stateline 2 Pay Down Debt asset area wells online 3 4
Slide 7: Delivering Strong Well Results All Around the Delaware Basin
SLIDE D Delivering Strong Well Results All Around the Delaware Basin! TWIN LAKES Matador Acreage ~40,500 gross / ~23,200 net acres RUNNING FOUR RIGS IN THE DELAWARE BASIN Stateline: Two rigs drilling 13 additional ARROWHEAD ~66,000 gross / ~26,800 net acres Boros wells on the eastern portion of th
Slide 8: A Step Change in Capital Efficiency: Record Low Costs in 2020
A Step Change in Capital Efficiency: SLIDE E Record Low Costs in 2020 Even Lower in 2021E Drilling & Completion (D&C) CapEx/ft(1) Percentage of Two-Mile Laterals ($/ft) $1,528 98% -24% 74% $1,165 TOTAL -27% FOOTAGE TOTAL $850 -14% FOOTAGE 508,000’ AVG. ~ $730 465,000’ LATERAL LENGTH 8% 4,700’ 5,70
Slide 9: San Mateo – Differentiated Midstream Asset Continues to Add Value
San Mateo – Differentiated Midstream Asset SLIDE F Continues to Add Value to Matador(1) 2015-2016 2017-2018 2019-2020 2021+ ► Initial midstream build-out ► San Mateo I formed in ► San Mateo II formed in ► Free cash flow generation in the Delaware Basin February 2017 February 2019 ► Focused on adding
Slide 10: Operational and Financial Results
Operational and Financial Results April 28, 2021
Slide 11: Q1 2021 Selected Operating and Financial Results
Q1 2021 Selected Operating and Financial Results Three Months Ended March 31, December 31, March 31, 2021 2020 2020 (1) Net Production Volumes: Oil (MBbl) 3,738 4,419 3,697 Natural gas (Bcf) 17.5 19.4 16.7 Total oil equivalent (MBOE) 6,658 7,653 6,476 (1) Average Daily Production Volumes: Oil (Bbl/d
Slide 12: A Tightly Integrated Strategy: Growing E&P and Midstream Together
A Tightly Integrated Strategy: Growing E&P and Midstream Together Average Daily Total Production Average Daily Total Delaware Basin Production (BOE/d) (BOE/d) Q1 2021 BOE down 11% sequentially; Q1 2021 BOE down 12% sequentially; up 4% YoY – Better than Projected 77,367 up 13% YoY – Better than Proje
Slide 13: Matador's Strong Q4 2020 Operating Efficiency vs. Peers
Matador’s Strong Q4 2020 Operating Efficiency vs. Peers(1) Netbacks(2)/O&G Revenues, % (excl. Deriv. Settlements) Netbacks(2)/O&G Revenues, % (incl. Deriv. Settlements) Strong operating margins vs. peers. Strong operating margins vs. peers. 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10%
Slide 14: Matador Federal Acreage and Permitting Update
Matador Federal Acreage and Permitting Update Delaware Basin Federal Federal, as % of Delaware Basin Asset Area County(1) Leasehold(2) Leasehold Delaware Basin (net acres) (net acres) Leasehold 34,500 net acres, or Antelope Ridge Lea 16,000 7,300 6% 28% of Delaware Rustler Breaks Eddy 26,200 1,600 1
Slide 15: Wells Turned to Sales – Q1 2021
Wells Turned to Sales – Q1 2021 During the first quarter of 2021, Matador turned to sales a total of 16 gross (6.0 net) wells in its various operating areas. This total was comprised of six gross (5.1 net) operated wells and 10 gross (0.9 net) non-operated wells. All six operated wells were two-mi
Slide 16: Summary and 2021 Guidance
Summary and 2021 Guidance (as Provided on February 23, 2021) Actual %YoY Guidance Metric 2020 Results 2021 Guidance Change(1) Total Oil Production 15.9 million Bbl 17.2 to 17.8 million Bbl + 10% Total Natural Gas Production 69.5 Bcf 76.0 to 79.0 Bcf + 12% Total Oil Equivalent Production 27.5 million
Slide 17: 2021 Capital Investment Plan Summary
2021 Capital Investment Plan Summary(1) Full Year 2021E CapEx(2) – $545 to $605 million (Delaware: Added 4th operated rig in late March 2021) 2021E Wells Turned to Sales CapEx Guidance Range Gross Net Drilling, Completing, Equipping $525 to $575 million Operated 49 45.6 Operated D/C/E (New Wells) $4
Slide 18: Hedging Profile – Remainder of 2021 and 2022
Hedging Profile – Remainder of 2021 and 2022(1) Oil Collars, Swaps, Puts Midland-Cushing Basis Swaps Natural Gas Collars ~60-65% hedged for Q2-Q4 2021 ~45% hedged for Q2-Q4 2021 ~50-55% hedged for Q2-Q4 2021 WTI Collars 6,000 16.0 WTI Swaps 5,520 3,000 2,880 2,880 2,880 14.0 5,000 Natural Gas Volume
Slide 19: 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 Natural Gas and Oil Pipelines – IN SERVICE! Reeves Loving Ward 1 Mile Rustler Breaks Eddy Lea Natural Gas Gathering and Processing Processing
Slide 20: Continued Progress in All Parts of San Mateo's Delaware Midstream Business
Continued Progress in All Parts of San Mateo’s Delaware Midstream Business (51% Owned by Matador) San Mateo Average Water Handling San Mateo Average Natural Gas Gathering(1) (MBbl/d) (MMcf/d) 300 Down 11% sequentially; 300 Down 12% sequentially; up 8% YoY 260 down 5% YoY 262 250 233 233 250 213 216
Slide 21: Appendix
aN, ¢ Matador | RESOURCES COMPANY tins Appendix MIDR NYSE
Slide 22: Matador Resources and San Mateo Credit Facilities
Reaffirmed April 2021! Matador Resources and San Mateo Credit Facilities Matador Credit Agreement Summary Bank group led by Royal Bank of Canada Elected Borrowings Letters of Credit Financial Covenant: Maturity Borrowing Last Reserves Facility Size Borrowing Outstanding Outstanding Maximum Net Debt
Slide 23: 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 24: 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 2016
Slide 25: 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 (loss) and net cash provided by (used in) operating activities, respectively, for San Mateo Mids
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 (loss) and net cash provided by (used in) operating activities, respectively, for San Mateo Mids
Slide 27: Adjusted Free Cash Flow Reconciliation – Matador Resources Company
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) M
Slide 28: Adjusted Free Cash Flow Reconciliation – San Mateo (100%)
Adjusted Free Cash Flow Reconciliation – San Mateo (100%) 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 for San Mateo Midstream, LLC. Three Months En
Slide 29: 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 (loss) attributable to Matador Resources Company shareh
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