Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (February 2021)
20 slides from Matador Resources's investor presentation, Feb 23, 2021
Slide 1: 2021 Operating Plan and Market Guidance
2021 Operating Plan and Market Guidance February 23, 2021
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: 2021 Priorities and Milestones
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 Initiate Dividend wells online by Q4 3 4 Greater
Slide 4: Summary and 2021 Guidance (as Provided on February 23, 2021)
Summary and 2021 Guidance (as Provided on February 23, 2021) Four rigs operating in the Delaware Basin, beginning in March 2021 – expect 49 gross (45.6 net) operated wells in 2021 − Two rigs anticipated to operate in the Stateline asset area throughout 2021 − Other two rigs expected to operate in
Slide 5: Matador Federal Acreage and Permitting Update
Matador Federal Acreage and Permitting Update Delaware Basin Federal Federal, as % of • At December 31, 2020, Delaware Basin Asset Area County(1) Leasehold(2) Leasehold Delaware Basin (net acres) (net acres) Leasehold Matador held approximately 124,700 net leasehold and Antelope Ridge Lea 16,000 7,3
Slide 6: Matador's 2021 Delaware Basin Operated Drilling Program
Matador’s 2021 Delaware Basin Operated Drilling Program Rustler Breaks − 3 gross (1.5 net) wells in progress for 2021 TWIN LAKES ~40,500 gross / ~23,200 net acres Stateline − 47 gross (47.0 net) wells in progress for 2021 − 26 gross (26.0 net) wells turned to sales, including 3 Avalon, 3 1st Bone Sp
Slide 7: Wells Completed and Turned to Sales – 2021 Guidance
Wells Completed and Turned to Sales – 2021 Guidance(1) During full year 2021, Matador expects to complete and turn to sales 125 gross (52.6 net) wells. Matador expects the Delaware Basin to account for 117 gross (52.3 net) wells, including 49 gross (45.6 net) operated and 68 gross (6.7 net) non-op
Slide 8: 2021 Capital Investment Plan Summary
2021 Capital Investment Plan Summary(1) Full Year 2021E CapEx(2) – $545 to $605 million (Delaware: Adding 4th operated rig by end of Q1 2021) CapEx Guidance Range 2021E Wells Turned to Sales Drilling, Completing, Equipping $525 to $575 million Operated D/C/E (New Wells) $417 to $455 million Gross Ne
Slide 9: A Step Change in Capital Efficiency: Record Low Costs in 2020, Even Lower in 2021E
A Step Change in Capital Efficiency: Record Low Costs in 2020 Even Lower in 2021E Average Lateral Length and % of Longer Laterals CapEx per Foot(1) and Lateral Footage Turned to Sales 12,000 Average Lateral Length 100% 100% 600,000 Lateral Feet Turned to Sales $1,700 % of Laterals > 1-mile 98% (1)
Slide 10: 2021 Oil and Natural Gas Production Estimates
2021 Oil and Natural Gas Production Estimates(1) Total Oil and Natural Gas Production 11% 2021E CapEx(1)(2) (Midpoint): D/C/E: $550 MM Natural Gas, Bcf 2021E Oil Production – 10% Growth YoY Midstream(3): $25 MM Oil, MBbl 30,450 27,514 • Estimated oil production of 17.2 to 17.8 million barrels Total:
Slide 11: 2021 Total Production Forecast by Quarter
2021 Total Production Forecast by Quarter(1) Natural Gas, MMcf/d 2021E Quarterly Production Cadence Oil, Bbl/d Fewer wells completed and Minimal production impact Production impact of 4 Production impact of 13 turned to sales in Q4 2020 in Q1 2021 from 6 wells Rodney Robinson wells additional Boros
Slide 12: San Mateo – Recent Performance & 2021 Adjusted EBITDA Estimate
San Mateo – Recent Performance & 2021 Adjusted EBITDA(1) Estimate October 2020 – Matador and Five Point(1) completed the successful merger of San Mateo I and San Mateo II into a single entity 2H 2020 – San Mateo II expansion projects completed, including: • Expansion of the Black River Processin
Slide 13: 2021E Operating Cost Estimates (Unit Costs per BOE)
2021E Operating Cost Estimates (Unit Costs per BOE) Matador provides the following estimated ranges for its 2021 unit operating costs as shown below 2020 2021E 1 Production taxes, transportation and processing (“PTTP”) $3.39 $4.25 to $4.75 2 Lease operating (“LOE”) $3.81 $3.50 to $4.00 3 Plant and
Slide 14: 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 ~45% hedged for 2021 ~50% hedged for 2021 ~85% hedged for Q1 2021 ~50-55% hedged for Q2-Q4 2021 WTI Collars 9,000 16.0 8,400 15.0 WTI Swaps 1,980 1,980 1,980 1,980 8,000 2,000 14.
Slide 15: Appendix
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Slide 16: Matador Resources and San Mateo Credit Facilities
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 to Date Base Review Com
Slide 17: 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 securities analysts, inv
Slide 18: 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 19: 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. T
Slide 20: 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. Y
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