Matador Resources Company · NYSE:MTDR
Matador Resources — Shareholder Meeting (June 2022)
42 slides from Matador Resources's shareholder meeting presentation, Jun 10, 2022
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 10, 2022
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: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 10, 2022
Slide 4: 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 5: Board of Directors - Expertise and Stewardship
Board of Directors - Expertise and Stewardship • President, CEO and Co-Founder, IPR Energy Partners, LLC Professional • Executive Vice President/Engineering and Co-Founder, NP Resources, LLC Experience • Former Vice President, Netherland, Sewell & Associates, Inc. • Oil and Gas Exploration and Devel
Slide 6: 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 7: Shareholder Advisory Committee for Board Nominations
Shareholder Advisory Committee for Board Nominations Committee Member Professional Experience Rick H. Fenlaw - Owner, Fenlaw Land Services Co-Chair Scott E. King - Former VP, Geophysics and New Ventures, Matador Resources Company Co-Chair - Former VP, Exploration & Development, Petro Harvester Oil &
Slide 8: Recognition of Management Team
Recognition of Management Team June 10, 2022
Slide 9: Other Important Items
Other Important Items 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 To receive mail correspondence or routine investor alerts via our website, please email your reque
Slide 10: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 10, 2022
Slide 11: Summary of Proposals for Consideration at Annual Meeting
Summary of Proposals for Consideration at Annual Meeting Proposal 1 – Election of Directors Proposal 2 – Approval of the First Amendment to the Matador Resources Company 2019 Long-Term Incentive Plan Proposal 3 – Approval of the Matador Resources Company 2022 Employee Stock Purchase Plan Pro
Slide 12: Introduction of Director Nominees
Introduction of Director Nominees Kenneth L. Stewart, Director Chair, Nominating Committee June 10, 2022
Slide 13: Proposal 1 – Election of Directors
Proposal 1 – Election of Directors Director Nominee Class II Director (Term Expiring at 2025 Annual Meeting of Shareholders) • Retired Trustee of a Private Family Trust Professional • Former Vice President, Texon, L.P. Experience • Former Vice President, Tripetrol Oil Trading, Inc. • Finance and A
Slide 14: Introduction of Proposals 2, 3 and 4
Introduction of Proposals 2, 3 and 4 R. Gaines Baty, Deputy Lead Independent Director Chair, Strategic Planning and Compensation Committee June 10, 2022
Slide 15: Proposal 2 – Approval of the First Amendment to the 2019 Long-Term Incentive Plan
Proposal 2 – Approval of the First Amendment to the Matador Resources Company 2019 Long-Term Incentive Plan The Company seeks approval of the proposed First Amendment to the Matador Resources Company 2019 Long-Term Incentive Plan as described in the Proxy Statement “The Amendment is intended to
Slide 16: Proposal 3 – Approval of the 2022 Employee Stock Purchase Plan
Proposal 3 – Approval of the Matador Resources Company 2022 Employee Stock Purchase Plan The Company seeks approval of the proposed Matador Resources Company 2022 Employee Stock Purchase Plan (the “ESPP”) “The purpose of the ESPP is to encourage and enable our eligible employees to acquire a pro
Slide 17: Proposal 4 – Advisory Vote on 2021 Named Executive Officer Compensation
Proposal 4 – Advisory Vote on 2021 Named Executive Officer Compensation The Company seeks a non-binding advisory vote from its shareholders regarding the 2021 compensation of its Named Executive Officers as described in the Proxy Statement “Resolved, that the compensation paid to the Company’s N
Slide 18: Ratification of Public Accounting Firm
Ratification of Public Accounting Firm William M. Byerley, Director Chair, Audit Committee June 10, 2022
Slide 19: Proposal 5 – Ratification of the Appointment of KPMG LLP
Proposal 5 – 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, 2021 The Audit Committee has appointed KPMG as the Company’s independent registered public accounting firm for t
Slide 20: Summary of Proposals for Consideration at Annual Meeting
Summary of Proposals for Consideration at Annual Meeting Proposal 1 – Election of Directors Proposal 2 – Approval of the First Amendment to the Matador Resources Company 2019 Long-term Incentive Plan Proposal 3 – Approval of the Matador Resources Company 2022 Employee Stock Purchase Plan Pro
Slide 21: Chairman's Opening Remarks
Chairman’s Opening Remarks Joseph Wm. Foran, Founder, Chairman and CEO June 10, 2022
Slide 22: Celebrating 10 Years of Building Shareholder Value
Celebrating 10 Years of Building Shareholder Value +28% CAGR Top 10 – Ranked producer for oil and natural gas in New Mexico. Top 20 – Largest E&P company +36% CAGR by market capitalization. Note: CAGR is Compounded Annual Growth Rate. (1) Adjusted EBITDA is a non-GAAP financial measure. For a defini
Slide 23: 40 Years with Approximately 20% Annual Rate of Return
40 YEARS WITH APPROXIMATELY 20% ANNUAL RATE OF RETURN! 1983 2003 Today “Matador I” “Matador II” Initial Capital: $270,000 Initial Capital: $6 million Sale Price: $388 million Current Market Cap: $7.9 billion(1) Note: Rate of return is based on dividend reinvestment and Enterprise Value. (1) Closing
Slide 24: MTDR II Shares Significantly Outperforming XOP and Oil since IPO
MTDR II Shares Significantly Outperforming XOP and Oil since IPO! Since IPO (February 2, 2012) through June 7, 2022 close MTDR +466% MTDR all time high @ $66.56! *COVID19 / Saudi-Russia Oil Price War Salary cuts / No bonuses Oil +17% 0% XOP (-23%) First Dividend! MTDR all time low @ $1.20 24 Source:
Slide 25: Consistent Growth in Proved Reserves per Share
Consistent Growth in Proved Reserves per Share MMBOE = millions of BOE 3.00 323 ~2.7 BOE proved reserves per share MMBOE Oil/Gas Reserves Per Share, BOE/share 2.75 2.50 270 MMBOE 253 2.25 MMBOE 215 44% 2.00 MMBOE 1.75 153 1.50 MMBOE 1.25 106 69 85 MMBOE 52 MMBOE MMBOE 1.00 MMBOE 56% 0.75 27 MMBOE 0.
Slide 26: San Mateo – Differentiated Midstream Asset
San Mateo – Differentiated Midstream Asset Continues to Add Value to Matador(1) Matador owns 51% of San Mateo $180 Water $165 $160 Oil $154 $145 Natural Gas San Mateo's Adjusted EBITDA(2) $140 $130 Natural $113 Gas $120 ($ in millions) $96 $100 $80 Oil $62 $60 $40 $31 Water $20 $12 $4 $0 2015 2016 2
Slide 27: Revolver Borrowings Outstanding – Quarterly Results
Revolver Borrowings Outstanding – Quarterly Results Balance Paid Down to $0 in April 2022 ($ in millions) Letters of Credit Revolver Borrowings Outstanding $1,400 $2,000 $1,200 $1,500 $1,000 Borrowing Base $800 $600 $520 $486 $45 $46 $386 $400 $46 $286 $46 $475 $440 $200 $145 $166 $146 $340 $46 $46
Slide 28: Fixed Dividend Increase
In Q1 2021 Matador initiated a fixed dividend of $0.10/share per annum In Q4 2021 Matador doubled the fixed dividend to $0.20/share per annum Today, your Board is again doubling the fixed dividend to $0.40/share per annum 28
Slide 29: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 10, 2022
Slide 30: Lead Independent Director's Remarks
Lead Independent Director’s Remarks Timothy E. Parker, Lead Independent Director Chair, Capital Markets and Finance Committee June 10, 2022
Slide 31: Revolver Borrowings Outstanding – Quarterly Results
Revolver Borrowings Outstanding – Quarterly Results Balance Paid Down to $0 in April 2022 ($ in millions) Letters of Credit Revolver Borrowings Outstanding $2,000 $1,400 $2,000 $475 million repaid from end of Q3 2020 through April 2022 Fully repaid remaining $50 million in April 2022 $1,200 $1,500
Slide 32: Operations Report
Operations Report Reynald A. Baribault, Director Chair, Operations and Engineering and Prospect Committees June 10, 2022
Slide 33: 2022 Operations Priorities and Milestones
2022 Operations Priorities and Milestones Matador Acreage TWIN LAKES ARROW HEAD RANGER Uncle Ches 2nd Bone Spring wells #125H 24-hr IP: 1,520 BOE/d (90% oil) #122H 24-hr IP: 1,380 BOE/d (91% oil) RUSTLER 9 new R. Robinson wells BREAKS ANTELOPE MAXCOM 24/7 RIDGE 11 new wells STATELINE 11 new Voni wel
Slide 34: Continuous Improvement in Execution and Efficiency Gains
Continuous Improvement in Execution and Efficiency Gains Operational Improvement Spotlight: “Remote” Simul-Frac Remote Simul-Frac is an operation to simultaneously complete stages on multiple well pads with 1 completion crew • Allows Simul-Frac capability on non-typical Simul-Frac pad layouts • Su
Slide 35: Recognition of Retiring Officers
Recognition of Retiring Officers Matthew V. Hairford, Special Advisor to Matador’s Board of Directors and Executive Committee; Retiring President David Lancaster, Special Advisor to Matador’s Board of Directors and Executive Committee; Retiring EVP and CFO June 10, 2022
Slide 36: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 10, 2022
Slide 37: Appendix
ay, ¢ Matador fies Appendix June 10, 2022 NYSE
Slide 38: 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 39: 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) 3Q 2013
Slide 40: 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 41: 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 42: 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 Year Ended (In tho
Matador Resources Company — Shareholder Meeting (June 2022) on 6ix