Slide 1: Investor Presentation August 2013
Investor Presentation August 2013 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
RESOURCES COMPANY Company Summary
Slide 4: Company Overview
4 Company Overview Completed IPO of 14,883,334 shares (12,209,167 primary) including overallotment at $12.00/share in March 2012 Exchange: Ticker NYSE: MTDR Shares Outstanding(1) 55.8 million common shares Share Price(2) $17.03/share Market Capitalization(2) $951.0 million 2012 Actual 2013 Guidance
Slide 5: Matador History
Founded by Joe Foran in 1983 Foran Oil funded with $270,000 in contributed capital from 17 friends and family members Sold to Tom Brown, Inc.(1) in June 2003 for an enterprise value of $388 million in an all-cash transaction Foran Oil & Matador Petroleum 5 Matador History Matador Resources Com
Slide 6: Matador Resources Snapshot
6 Average Daily Production(1) 10,739 BOE/d Oil Production(1) (% total) 5,015 Bbl/d (47%) Gas Production(1) (% total) 34.3 MMcf/d (53%) Proved Reserves @ 6/30/13 38.9 million BOE % Proved Developed 42% % Oil 31% 2013E CapEx $325 million % South Texas ~78% % Oil and Liquids ~98% 2013E Anticipated Dril
Slide 7: Matador's Continued Growth
T h o u s a n d Bb l TOTAL OIL AND TOTAL OIL PRODUCTION (1) NATURAL GAS REVENUES (1) ADJUSTED EBITDA (1)(2) $8.1 $18.4 $15.2 $23.6 $49.9 $115.9 $165.0 2007 2008 2009 2010 2011 2012 2013E $14.0 $30.6 $19.0 $34.0 $67.0 $156.0 $230.0 2007 2008 2009 2010 2011 2012 2013E 22 37 30 33 154 1,214 1,900 2007
Slide 8: Growth in PV-10 from SEC Proved Reserves
$0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 2008 2009 2010 2011 2012 Q2 2013 Growth in PV-10(1) from SEC Proved Reserves $57.65 oil $3.87 gas $75.96 oil $4.38 gas $92.71 oil $4.12 gas $91.21 oil $2.76 gas $88.13 oil $3.44 gas P V -1 0 (1 ) , mil li o n s 8 SEC Pricing Oil, $/Bbl Ga
Slide 9: SEC Proved Reserves Value Growth
9 SEC Proved Reserves Value Growth Eagle Ford $130.2 million, 52% Haynesville $96.6 million, 39% Cotton Valley $19.5 million, 8% SE New Mexico $2.4 million, 1% June 30, 2013 PV-10(1): $522.3 million $88.13 oil(2), $3.44 gas(2) (Standardized Measure = $477.6 million) Eagle Ford $393.6 million, 93% Ha
Slide 10: Eagle Ford South Texas
RESOURCES COMPANY Eagle Ford South Texas
Slide 11: Eagle Ford Overview
11 Eagle Ford Overview Proved reserves growth from 4.7 million BOE at December 31, 2011 and less than 0.1 million BOE at December 31, 2010 Drilled and completed 49 gross / 46.5 net operated wells to date(1) Acreage positioned in some of the most active counties for Eagle Ford and Austin Chalk
Slide 12: Eagle Ford Properties
12 Eagle Ford Properties Note: All acreage at August 7, 2013 Uvalde Medina Zavala Frio Dimmit La Salle Webb Bexar Atascosa McMullen Live Oak Bee Goliad Dewitt Gonzales Wilson EAGLE FORD EAST 6,485 gross / 5,412 net acres EOG OPERATED, MTDR WI ~21% 10,152 gross / 1,891 net acres GLASSCOCK (WINN) RANC
Slide 13: Eagle Ford Well Costs and Estimated Ultimate Recovery
13 Eagle Ford Well Costs and Estimated Ultimate Recovery (“EUR”) Note: All acreage at August 7, 2013. EUR’s represent typical range of results over last 12 months by area. Well costs reflect actual costs of all 2013 wells by area. See pages 14, 15 and 16 for additional information. Uvalde Medina Zav
Slide 14: Eagle Ford "West"
14 Eagle Ford “West” 8,000’ – 9,000’ True Vertical Depth ~240°F DRILLING DAYS (1) FRAC STAGE COST (2) TOTAL WELL COST (3) ($ in thousands) ($ in millions) $9.9 $7.8 $6.8 $6.3 2011 2012 2013 YTD Last Well $247.9 $126.2 $123.4 $105.5 2011 2012 2013 YTD Last Well 19.2 12.6 11.4 8.3 2011 2012 2013 Y
Slide 15: Eagle Ford "Central"
15 Eagle Ford “Central” DRILLING DAYS (1) FRAC STAGE COST (2) TOTAL WELL COST (3) ($ in thousands) ($ in millions) $11.0 $9.4 $7.5 $7.1 2011 2012 2013 YTD Last Well $159.5 $130.1 $119.3 $120.4 2011 2012 2013 YTD Last Well 18.8 20.1 15.4 13.9 2011 2012 2013 YTD Last Well (4) 10,500’ – 11,500’ True
Slide 16: Eagle Ford "East"
16 Eagle Ford “East” DRILLING DAYS (1) FRAC STAGE COST (2) TOTAL WELL COST (3) ($ in thousands) ($ in millions) $10.4 $8.4 $8.3 2012 2013 YTD Last Well $219.7 $215.3 $214.6 2012 2013 YTD Last Well 24.7 18.2 16.6 2012 2013 YTD Last Well (4) 12,500’ – 13,500’ True Vertical Depth ~330°F 2-String
Slide 17: Batch Drilling – Reducing Well Costs and Well Times Further
Batch Drilling – Reducing Well Costs and Well Times Further 17 Time Savings •Rig Moves ~2 Days •Drilling Efficiencies ~1 Day Total Per Well Time Savings ~3 Days Cost Savings •Rig Moves ~$115,000 •Location ~$60,000 •Drilling Efficiencies ~$125,000 Total Per Well Cost Savings ~$300,000 Approx. $300,00
Slide 18: Evolution of Matador Frac Design
18 Evolution of Matador Frac Design Gen 2 Gen 3 Gen 4 Gen 5 5,770 Bbl 7,825 Bbl 9,550 Bbl 11,750 Bbl 375 Mlbs 500 Mlbs 405 Mlbs 515 Mlbs Fluid Volume Pumped Proppant Pumped 0 ft. 300 ft. Note: Figure depicts proppant and fluid volume pumped per 300 ft. of horizontal wellbore. (1) Mlbs = thousands of
Slide 19: Well Improvement with Evolution of Frac Design
19 Well Improvement with Evolution of Frac Design Eagle Ford “East” Offsetting Wells: Example 1 Eagle Ford “Central” Offsetting Wells: Example 2 Eagle Ford “Central” Offsetting Wells: Example 3 Eagle Ford “West” Offsetting Wells: Example 4 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 0 10
Slide 20: Eagle Ford Well Estimated ROR as a Function of EUR and Well Cost
Eagle Ford Well Estimated ROR as a Function of EUR and Well Cost 20 Note: Individual well economics only. NGL price differential +$1.85/Mcf. Oil price differential +$7.00/Bbl. $90.00/Bbl NYMEX oil; $3.00/Mcf NYMEX natural gas
Slide 21: Permian Basin Southeast New Mexico and West Texas
Permian Basin Southeast New Mexico and West Texas
Slide 22: Southeast New Mexico / West Texas
22 Gross Acres(1) 45,964 acres Net Acres(1) 28,340 acres Southeast New Mexico / West Texas Foothold of existing production and reserves Acreage position in good neighborhoods, surrounded by other operators’ ongoing drilling Year to date(2) acquired approximately 30,200 gross and 20,700 net acr
Slide 23: Wolfbone Play in the Delaware Basin (West Texas)
23 Wolfbone Play in the Delaware Basin (West Texas) Stratigraphic Column Avalon Shale Depth: 7,900’ – 8,300’ (Oil Window) Density Porosity: 12-14% Thickness: 300-500 ft. Normal Pressure (0.45 psi/ft.) Total Organic Carbon (TOC) 5-8% XRD: 15-20% clay and 40-60% silica IP: 100-270 Bbl/d 200-1,200 Mcf/
Slide 24: Ranger Prospect Area: Proposed Wolfbone Exploration Program
Ranger Prospect Area: Proposed Wolfbone Multi-Zone Exploration Program and Surrounding Results Concho Stratojet 31 State #3H 2nd Bone Spring 21 mo.cum: 336 MBbl; 405 MMcf Cimarex Energy Lynch 23 Fed #1H 3rd Bone Spring 18 mo.cum: 163 MBbl; 139 MMcf Legacy Operating Lea Unit 4H 3rd Bone Spring 20 mo.
Slide 25: Wolf Leasehold: Proposed Wolfbone Exploration Program
Wolf Leasehold: Proposed Wolfbone Multi-Zone Exploration Program and Surrounding Results Wolf Energy Wolf #1 (Vertical well) 3rd BS / Upr Wolfcamp 33 years cum: 60 MBbl; 640 MMcf Wolf Energy Dorothy White #1 (Vertical well) 3rd BS / Upr Wolfcamp 17 years cum: 25 MBbl; 92 MMcf Shell Johnson 1-88 Lov
Slide 26: Haynesville & Cotton Valley Northwest Louisiana and East Texas
Haynesville & Cotton Valley Northwest Louisiana and East Texas
Slide 27: Haynesville and Elm Grove Cotton Valley Acreage Positions
Tier 1 Haynesville and Elm Grove Cotton Valley Acreage Positions – Almost all prospective Haynesville acreage is HBP Note: All acreage at August 7, 2013 CADDO BOSSIER BIENVILLE RED RIVER DESOTO Elm Grove Cotton Valley: 49 Net Locations Matador Operated Acreage: 9,980 gross, 9,800 net Locations: 71 g
Slide 28: Haynesville Total Resource Potential – Price Sensitivity
28 Haynesville Total Resource Potential – Price Sensitivity (1) PV-10 is a non-GAAP measure. For a reconciliation of Standardized Measure (GAAP) to PV-10 (non-GAAP), see Appendix. All PV-10 values estimated as of March 31, 2013 (2) NYMEX gas price, less property-specific differentials $25 $42 $50 $5
Slide 29: Haynesville Well Economics – Tier 1 Area
0 25 50 75 100 125 150 175 200 225 250 275 300 3 3.5 4 4.5 5 5.5 6 8 Bcf - $8.0 MM D&C Cost 9 Bcf - $8.0 MM D&C Cost 10 Bcf - $8.0 MM D&C Cost 8 Bcf - $9.0 MM D&C Cost 9 Bcf - $9.0 MM D&C Cost 10 Bcf - $9.0 MM D&C Cost 29 Haynesville Well Economics – Tier 1 Area Rate o f Ret u rn, % Natural Gas Pric
Slide 30: Cotton Valley Horizontal Well Economics
30 Cotton Valley Horizontal Well Economics Note: Individual well economics only. D&C cost = drilling and completion cost. Natural gas price differential = (10%) 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 R O R, % Natural Gas Price, $/Mcf 4.0 Bcf - $5.6
Slide 31: Gracie Wyoming, Utah and Idaho
Gracie Wyoming, Utah and Idaho
Slide 32: Matador Gracie Project Total Prospect Acreage
Matador Gracie Project Total Prospect Acreage IDAHO UTAH W YO M IN G W Y O M IN G ID A H O U T A H WYOMING 61,897 gross acres 30,492 net acres Crawford Federal #1H 32 Note: All acreage at August 7, 2013 Crawford Federal #1H completion scheduled for summer 2013
Slide 33: Southwest Wyoming Stratigraphy and Target Zones
Southwest Wyoming Stratigraphy and Target Zones Lamberson, Paul, 1982, The Fossil Basin and its Relationship to the Absaroka Thrust System, Wyoming and Utah, RMAG 13% TOC Meade Peak Shale Cretaceous Shales 2% TOC Crawford Federal #1: Drilled straight hole in late 2011 Encountered 161’ Meade Peak
Slide 34: Financial Overview
RESOURCES COMPANY Financial Overview
Slide 35: 2013 Revenue and Adjusted EBITDA
35 2013 Revenue and Adjusted EBITDA(1)(2) Estimated oil and natural gas revenues of $220 to $240 million − Mid-point is an increase of 47% from $156.0 million in 2012 Estimated Adjusted EBITDA(1)(2) of $155 to $175 million − Mid-point is an increase of 42% from $115.9 million in 2012 Adjusted
Slide 36: Second Quarter 2013 Earnings Release Highlights
Second Quarter 2013 Earnings Release Highlights 36 Production Growth Increasing Oil Production: Oil production of 447,000 Bbl for the quarter ended June 30, 2013, resulting in a year-over-year increase of 57% from 285,000 Bbl produced in the quarter ended June 30, 2012, and a sequential quarterly
Slide 37: Second Quarter 2013 Earnings Release Highlights (Cont.)
Second Quarter 2013 Earnings Release Highlights (Cont.) 37 Acreage Acquisitions Acquired approximately 30,200 gross and 20,700 net acres primarily in Lea and Eddy Counties, New Mexico between January 1 and August 7, 2013, bringing the Company’s total acreage position in Southeast New Mexico and We
Slide 38: Financial Performance
38 Financial Performance (1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see Appendix (2) Includes realized gain on derivatives Oil and Natural Gas
Slide 39: 2013 and 2014 Hedging Profile
39 2013 and 2014 Hedging Profile At August 19, 2013, Matador had: 0.8 million barrels of oil hedged for remainder of 2013 at weighted average floor and ceiling of $88/Bbl and $106/Bbl, respectively 3.3 Bcf of natural gas hedged for remainder of 2013 at weighted average floor and ceiling of $3.19
Slide 40: Appendix
RESOURCES COMPANY Appendix
Slide 41: Board of Directors and Special Board Advisors
Board of Directors and Special Board Advisors – Expertise and Stewardship 41 Board Members and Advisors Professional Experience Business Expertise Dr. Stephen A. Holditch Director - Professor Emeritus and Former Head of Dept. of Petroleum Engineering, Texas A&M University - Founder and Former Presid
Slide 42: Proven Management Team – Experienced Leadership
Proven Management Team – Experienced Leadership 42 Management Team Background and Prior Affiliations Industry Experience Matador Experience Joseph Wm. Foran Founder, Chairman and CEO - Matador Petroleum Corporation, Foran Oil Company, J Cleo Thompson Jr. and Thompson Petroleum Corp. 33 years Since I
Slide 43: Reserves Summary at June 30, 2013
Reserves Summary at June 30, 2013 43 At June 30,(1) At December 31,(1) At June 30,(1) 2013 2012 2012 Estimated proved reserves:(2) Oil (MBbl) 12,128 10,485 6,728 Natural Gas (Bcf) 160.8 80.0 73.9 Total (MBOE)(3) 38,931 23,819 19,052 Estimated proved developed reserves: Oil (MBbl) 6,591 4,764 3,133 N
Slide 44: Southwest Glasscock Ranch Buda Production History
Southwest Glasscock Ranch Buda Production History Global Geophysical 3D Seismic Survey Area Outline Dan Hughes Heitz 302 3H 6/24/2012 IP: 350 Bbl/d 500 Mcf/d 13 mo.cum: 215,772 Bbl 147 MMcf Dan Hughes Buchanan 1H 4/1/2013 IP: 756 Bbl/d 556 Mcf/d 2 mo.cum: 38,348 Bbl 16 MMcf Dan Hughes Heitz 302 5H 8
Slide 45: Adjusted EBITDA Reconciliation
45 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 consolidated financial statements, such as industry analysts, investo
Slide 46: Adjusted EBITDA Reconciliation
46 Adjusted EBITDA Reconciliation 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) 2007 2008 2009 2010 2011 2012 2010 2
Slide 47: PV-10 Reconciliation
47 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