Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (April 2015)
77 slides from Matador Resources's investor presentation, Apr 20, 2015
Slide 1: April 2015 Investor Presentation
April 2015 Investor Presentation NYSE: MTDR 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
Company Summary
Slide 4: Matador history and growth through the drill bit
2012, 2013 and 2014 capital spending focused primarily on developing Eagle Ford and transitioning to oil February 2012 IPO at $12.00; net cash proceeds of ~$136 million May 2014 Follow-on Offering at $25.00; net cash proceeds of ~$181 million September 2013 Follow-on Offering at $15.25; net cash pro
Slide 5: Company Overview
5 Company Overview 2014 Actual 2015 Guidance(3) % Change Capital Spending $610 million $350 million - 43% Total Oil Production 3.3 million Bbl 4.0 to 4.2 million Bbl + 23% Total Natural Gas Production 15.3 Bcf 24.0 to 26.0 Bcf + 63% Oil and Natural Gas Revenues $367.7 million $270 to $290 million(4)
Slide 6: Matador Resources Company – Operations Overview
Matador Resources Company – Operations Overview Market Capitalization(1) $2.3 billion Avg. Daily Production – Q4 2014(2) 20,807 BOE/d Oil (% total) 11,062 Bbl/d (53%) Natural Gas (% total) 58.5 MMcf/d (47%) Proved Reserves @ 12/31/2014 68.7 million BOE % Proved Developed 45% % Oil 35% 2015E CapEx(3)
Slide 7: Matador's Execution History – Doing What We Say
Matador’s Execution History – “Doing What We Say” Oil Production 414 Bbl/d of oil 6% oil 4,916 Bbl/d of oil 46% oil 11,062 Bbl/d of oil 53% oil Proved Reserves 27 MMBOE 1.1 MMBbl of oil 4% oil 39 MMBOE 12.1 MMBbl of oil 31% oil 69 MMBOE 24.2 MMBbl of oil 35% oil PV-10(2
Slide 8: Oil and Natural Gas Proved Reserves and PV-10 Growth By Area
8 Oil and Natural Gas Proved Reserves and PV-10(1) Growth By Area YE 2013 Total proved reserves = 68.7 million BOE PV-10(1): $1,043.4 million $91.48 oil / $4.35 natural gas (1) PV-10 is a non-GAAP financial measure. For a reconciliation of Standardized Measure (GAAP) to PV-10 (non-GAAP), see Appendi
Slide 9: Be prudent with our investors' capital
Be prudent with our investors’ capital Reduced drilling program from 5 rigs at YE2014 to 2 rigs currently due to lower commodity prices, with primary focus on Permian (Delaware) Basin 2015E CapEx highest in Q1 2015 but falls quickly thereafter – second half of 2015 close to cash flow at $55 pe
Slide 10: Matador's Continued Production Growth
23.0 39.8 34.1 35.4 41.9 80.0 2010 2011 2012 2013 2014 Current 91 422 3,317 5,843 9,095 14,000 2010 2011 2012 2013 2014 Current 2% 6% 37% 50% 57% 51% 2010 2011 2012 2013 2014 Current 3.9 7.0 9.0 11.7 16.1 27.0 2010 2011 2012 2013 2014 Current Matador’s Continued Production Growth Average Daily Oil P
Slide 11: Peer comparison and growth metrics
1.1x 1.2x 1.3x 1.5x 1.8x 1.9x 2.0x 2.0x 2.0x 2.7x 3.3x 3.5x 3.9x 4.3x 4.3x Peer B Peer A Peer C Peer D Peer J Peer I Peer G Peer H Peer E Peer F Peer L Peer N 0 Peer M Peer K $0.38 $0.58 $1.17 $2.15 $3.26 $3.74 2009 2010 2011 2012 2013 2014 $1.75 $2.92 $5.82 $7.84 $11.15 $14.86 2009 2010 2011 2012 2
Slide 12: Previous Oil Price Declines Have Created Opportunities for Matador
12 Previous Oil Price Declines Have Created Opportunities for Matador(1) Comparison of Major Oil Corrections and Major Matador Turning Points Since 1980 Date Event % Change in Oil Price Length of Oil Price Decline (in trading days) % Increase in Oil Price – 1-Year Post-Low 1986 Saudi Market Share Wa
Slide 13: Keys to Matador's Success
Keys to Matador’s Success Over Last 35 Years(1) 13 People We have a strong, committed technical and financial team in place, and we continue to make additions and improvements to our staff, our capabilities and our processes Board and Special Advisor additions have strengthened Board skills an
Slide 14: Matador Resources Investment Highlights
Productive Use of Technology Drives Operational Efficiencies 14 Matador Resources Investment Highlights Attractive Growth Company with Oil / Liquids Focus Strong Financial Position with Low Debt and Substantial Liquidity Proven Management and Technical Team and Active Board of Directors High Quality
Slide 15: Permian Basin
Permian Basin Southeast New Mexico and West Texas
Slide 16: Delaware Basin – A World Class Hydrocarbon System
16 Delaware Basin – A “World Class” Hydrocarbon System DELAWARE BASIN CENTRAL BASIN PLATFORM MIDLAND BASIN Wolfcamp Simpson ~23,000’ Sediment Fill East West Source “Kitchens” Now Unconventional Resource Plays 70,000 square mile area Up to 25,000 feet of multiple, stacked, petroleum systems Ext
Slide 17: Delaware Basin well results
Oil Eq. Oil Natural Gas % Pf (3) Choke Well Date (BOE/d) (Bbl/d) (Mcf/d) Oil (psi) (inches) Arno #1H (Wolfcamp "X") Mid-Sept 2014 1,110 300 4,900 27% 4,100 26/64th Norton Schaub 84-TTT-B33 WF #2010H (Wolfcamp "A") Late Dec 2014 875 608 1,600 69% 2,600 28/64th Barnett 90-TTT-B01-WF #201H (Wolfcamp "X
Slide 18: Delaware Basin Combination Attributes
18 Delaware Basin Combination Attributes Matador added approximately 58,600 gross (18,200 net) acres located in the northern Delaware Basin in Lea and Eddy Counties, New Mexico from privately-held Harvey E. Yates Company (“HEYCO”) Strategically links Matador’s existing Ranger and Rustler Breaks
Slide 19: Combination Acreage a Strategic Fit
Combination Acreage a Strategic Fit 19 HEYCO combination facilitates horizontal development and upsized fracture treatments in a proven area Contiguous acreage provides opportunity for long laterals Many acreage blocks compete favorably with Matador inventory Matador will pursue operations w
Slide 20: Matador is a Significant Delaware Basin Player
20 Matador is a Significant Delaware Basin Player MTDR MTDR MTDR MTDR Matador’s 85,400 net acres place it among the largest operators in the Delaware Basin − Matador holds largest Delaware Basin acreage position among small and mid-cap publicly traded energy companies(1) − Matador is the second la
Slide 21: Matador's Acreage Among Other Delaware Basin Activity
21 Matador’s Acreage Among Other Significant Delaware Basin Activity Matador Acreage Note: Horizontal wells shown based upon publicly available data as of March 31, 2015. Other Operators Wolf Prospect Area – Loving County, TX L o v in g W in k le r Ward Cimarex Energen Rustler Breaks Prospect Area –
Slide 22: Determining Good, Better, Best – stacked pay potential
Determining “Good, Better, Best” important as potential exceeds inter-formational stacked pay 2015 program will expand on intra-formational stacked pay tests performed in each asset area 4,000 feet of Hydrocarbon Column Creates Opportunity Wolf Area Type Log – Wolfcamp X/Y X Test Y Test 80 acre
Slide 23: 2015 Delaware Basin drilling plan
E D D Y L E A LOVING WARD TWIN LAKES 42,538 gross / 29,073 net acres RUSTLER BREAKS 64,513 gross / 27,775 net acres RANGER 28,994 gross / 16,307 net acres WOLF / LOVING AREA 11,274 gross / 7,877 net acres 23 Estimated capital expenditures of ~$245 million, including ~$32 million for land/seismic a
Slide 24: Wolf Inventory – Multi-Pay Development Potential
Wolf Inventory – Multi-Pay Development Potential ~660’ Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp X/Y Wolfcamp A 4 66 Eval. Ongoing 34 66 66 66 302 Full Development Location Gross Wells Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring $7 – $8 million 450 – 6
Slide 25: Wolf Area Wolfcamp X/Y Wells Performing Above Expectations
10 100 1000 10000 0 50 100 150 200 250 300 350 400 Da ily P roduction Rat e, BO E/d ay Time, Days Dorothy White #1H Norton Schaub #1H Johnson 44-02S-B53 #204H 500 MBOE Type Curve 700 MBOE Type Curve 1,000 MBOE Type Curve Dorothy White #1H has produced ~310,000 BOE (66% oil) in 12.5 months Norton Sch
Slide 26: Rustler Breaks Inventory – Multi-Pay Development Inventory
Rustler Breaks Inventory – Multi-Pay Development Inventory Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring X/Y Wolfcamp B ~8 0 0 ’ 65 73 73 77 69 77 65 499 Full Development Location Gross Wells Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring $6 – $7 million 350 – 650 Wol
Slide 27: Rustler Breaks Wolfcamp B Well Performing Above Expectations
10 100 1000 10000 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 Da ily P roduction Rat e, BO E/d ay Time, Days 500 MBOE Type Curve 600 MBOE Type Curve Rustler Breaks 12-24-27 #1H has produced ~134,000 BOE (43% oil) in 9 months Wolfcamp "B" horizontal well in Rustler Breaks Area - Eddy County
Slide 28: Ranger Inventory – Multi-Well Development Potential
Ranger Inventory – Multi-Well Development Potential ~1,320’ 1st Bone Spring 2nd Bone Spring 3rd Bone Spring X/Y Wolfcamp A-D ~7 5 0 ’ 43 55 30 70 6 204 1 mile MRC Horizontal Drilled Full Development Location Full Development Spacing Pattern (Cross-Section View) Gross Wells Development Well D&C(1) Ca
Slide 29: Ranger Area Second Bone Spring Wells Performing Above Expectations
29 Ranger Area Second Bone Spring Wells Performing Above Expectations 10 100 1000 10000 0 50 100 150 200 250 300 350 400 450 Da ily P roduction Rat e, BO E/d ay Time, Days Ranger 33 State Com #1H Pickard State 20-18-34 #1H 400 MBOE Type Curve 600 MBOE Type Curve Ranger 33 State Com #1H has produced
Slide 30: Significant Delaware Basin Inventory
Significant Delaware Basin Inventory Matador has identified 1,445 gross (960 net) locations(1) This inventory does not yet include the HEYCO properties or Twin Lakes locations Delaware Basin E d d y L e a Lo v in g W in k le r Ward Texas New Mexico Chaves Potash Mine HEYCO Acreage Matador Acreag
Slide 31: Permian Basin Economics – Oil Price Sensitivities
31 Permian Basin Economics – Oil Price Sensitivities 0 50 100 150 200 250 40 45 50 55 60 65 70 ROR , % Oil Price, $ Ranger 33 400-700 MBOE ROR vs Oil Price 700 MBOE, $7.5 MM D&C 700 MBOE, $6 MM D&C 400 MBOE, $7.5 MM D&C 400 MBOE, $6 MM D&C uses $4 flat Gas price 0 10 20 30 40 50 60 70 80 90 100 40 4
Slide 32: Latest Technology: Simultaneous Operations Capable Rigs
Latest Technology: Simultaneous Operations (Sim-Ops) Capable Rigs 32 Conventional Drilling Configuration Sim-Ops Capable with V-door turned 90° Space available for frac operations while simultaneously drilling on the same pad Drilling rig must leave location prior to frac operations
Slide 33: New Rig Improvements
New Rig Improvements 7,500 psi Pressure Rating Estimated reduction in drilling time of 15 to 20% in the lateral on Wolfcamp wells Telescoping Flex-joint Estimated reduction in drilling time of 12 to 18 hours per well Integrated Mud-Gas Separator Estimated savings of 50% compared to renta
Slide 34: Artificial Lift Reducing Natural Production Declines
34 Flowing Rod Pumping Gas Lifting 300 Bbl/d 100 Bbl/d Accelerated Production Benefits of Gas Lift • Accelerates production • Reduces LOE • Lower maintenance • Helps wells recover faster from offset fracs Artificial Lift Reducing Natural Production Declines Time Note: Graph and data is for illustrat
Slide 35: Total Prospective Equivalent Oil Price Uplifts
$50.00 $7.50 $5.10 $4.50 $3.00 $3.00 $0.90 $74.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 Total Prospective Equivalent Oil Price Uplifts 35 $50.00 $7.50 $6.00 $4.50 $3.00 $3.00 $74.00 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 Current Oil Price Frac Savings M
Slide 36: Evolution of Permian Basin Frac Design
36 7,500 Bbl 9,000 Bbl 8,400 Bbl 600 Mlbs 420 Mlbs 500 Mlbs Evolution of Permian Basin Frac Design – Reservoir Specific 375 ft. 300 ft. 50 ft. 75 ft. 210 ft. 35 ft. Gen 1 Gen 2 2,000 lbs/ft 1,333 lbs/ft 40 Bbl/ft 20 Bbl/ft 50’ cluster spacing 75’ cluster spacing Gen 1 Gen 2 2,000 lbs/ft 2,000 lbs/ft
Slide 37: Microseismic in Wolf Prospect
Microseismic in Wolf Prospect Fractures generate sonic events as they propagate through the rock Microseismic uses downhole geophones installed in offset horizontals to measure these sonic events Half-length is a measure of the fracture propagation away from the wellbore In this example, onl
Slide 38: Midstream
= AN, jMatadar RESOURCES COMPANY Midstream
Slide 39: Longwood Gathering and Disposal Systems in Delaware Basin
39 Longwood Gathering and Disposal Systems(1) in Delaware Basin Loving County, Texas Natural gas gathering and compression Water gathering Salt water disposal Oil gathering Cryogenic natural gas processing plant Eddy County, New Mexico Natural gas gathering and compression Water ga
Slide 40: Midstream Initiatives Growing into Respectable Stand-Alone Business
Midstream Initiatives Growing into Respectable Stand-Alone Business 40 Expect to spend ~$38 million on midstream initiatives in the Permian Basin in 2015 Matador expects Longwood to be able to support its own sources of financing Additional third-party volumes and a contemplated natural gas pr
Slide 41: Loving County, Texas – Biggest Midstream Project to Date
41 Loving County, Texas – Biggest Midstream Project to Date Natural gas gathering and compression Cryogenic natural gas processing plant Water gathering Salt water disposal Oil gathering SWD = Salt Water Disposal
Slide 42: Eagle Ford "Oil Bank"
a‘, {Mata aor lye Eagle Ford “Oil Bank”
Slide 43: Eagle Ford Overview
43 Eagle Ford Overview Note: All acreage at February 27, 2015. Some tracts not shown on map. Karnes Uvalde Medina Zavala Frio Dimmit La Salle Webb Atascosa McMullen Live Oak Bee Goliad Dewitt Gonzales Wilson San Antonio Glasscock Ranch Martin Ranch Northcut Affleck Troutt Sutton Love Cowey Lewton He
Slide 44: Eagle Ford – 2014 Accomplishments
Eagle Ford – 2014 Accomplishments 44 Increased net oil production rate by 44% from ~6,400 Bbl/d in Q4 2013 to ~9,100 Bbl/d in Q4 2014 Added 2,900 net acres, more than replacing 2014 Eagle Ford drilled inventory of ~36 net wells (See chart to the right) Evolved from Generation 5 to 7 frac desig
Slide 45: Eagle Ford Drilling – Cost Reductions
45 Batch mode cut costs by ~10% vs pad drilling ~21% vs single well drilling Shaved 2.5 days per well Modern rigs Latest technology & equipment Improved drilling techniques Expecting ~28% pricing reduction in 2015 Eagle Ford Drilling – Cost Reductions $219/ft $194/ft $173/ft $ /f t
Slide 46: Evolution of Matador Eagle Ford 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 11,750 Bbl 650 Mlbs Gen 6 46 Note: Figure depicts proppant and fluid volume pumped per 300 ft. of horizontal wellbore. (1) Mlbs = thousands of pounds of proppant pumped. Fluid Volume Pumped Proppant
Slide 47: Eagle Ford Completions – Industry Comparison
5,380 5,040 6,430 6,970 5,450 5,500 5,690 4,910 7,360 4,830 6,360 5,110 5,510 4,590 5,220 4,890 5,230 5,650 4,960 0 500 1,000 1,500 2,000 2,500 3,000 3,500 P ro p p ant Co n ce n tr atio n ( #/ft of perf’d la ter al) 2012 2013 2014 Eagle Ford Completions – Industry Comparison Matador designs some of
Slide 48: Eagle Ford Completions – Cost Reductions
Eagle Ford Completions – Cost Reductions (1) Normalized to 5,000 foot lateral. (2) Per completed lateral foot. 48 Compl e ti o n s Co s t $ /f t( 2 ) Toe Prep Drill Out Frac Auxiliary $238 $318 $164 Non-frac completion costs cut by: ~50% since Q1 2012 (savings of over $750,000 per well(1)) Cut
Slide 49: Haynesville Shale "Gas Bank"
Haynesville Shale “Gas Bank”
Slide 50: Haynesville – Chesapeake Elm Grove Operations
Haynesville – Chesapeake Elm Grove Operations 50 Estimated capital expenditures of ~$15 million for non-operated well participation interests ˗ Represents only ~4% of 2015 estimated capital expenditures 38 gross (3.0 net) wells throughout Tier 1 Haynesville; 33 gross (2.3 net) wells turned to sa
Slide 51: Economics of Tier 1 Haynesville Wells at Elm Grove
Economics of Tier 1 Wells (10 Bcf) Haynesville at Elm Grove 51 Note: Individual well economics only. Excludes costs prior to drilling (i.e. acquisition or acreage costs). Economics use a NRI / WI of 85% but actual interests vary. Natural gas price differential = ($0.55)/Mcf. D&C cost = drilling and
Slide 52: 2015 Capital Investment Plan
2015 Capital Investment Plan
Slide 53: Reduced Drilling Program in 2015
53 2015 Capital Investment Plan – Reduced Drilling Program in 2015 Reduced drilling program from 5 rigs to 2 rigs due to lower commodity prices, with primary focus on Permian (Delaware) Basin Currently operating 2 rigs – both in the Delaware Basin Possible addition of a third drilling rig in t
Slide 54: 2015E CapEx of ~$350 million
2015E CapEx of ~$350 million − Decrease of ~43% from 2014 CapEx of ~ $610 million − Estimated service cost reductions of 15 to 20% as observed through January 2015, but further cost reductions expected (up to 50% on some services) − Does not include any CapEx associated with HEYCO combination (cas
Slide 55: Commodity Price and CapEx Estimates Significantly Impact Forecasts
$350 $333 $315 $298 $280 $263 $245 $0 $50 $100 $150 $200 $250 $300 $350 $400 0% 5% 10% 15% 20% 25% 30% 20 15 E Ca pE x ($ m ill io ns ) Percentage Reduction in 2015E Service Costs Relatively small improvements in oil price and cost reductions can significantly improve financial forecasts and reduc
Slide 56: 2015E Oil and Natural Gas Production
2015E Oil Production Estimated oil production of 4.0 to 4.2 million barrels − 23% increase from 2014 despite decreased drilling Average daily oil production of 11,200 Bbl/d, up from 9,100 Bbl/d in 2014 − Eagle Ford ~7,000 Bbl/d (63%) − Permian ~4,200 Bbl/d (37%) Quarterly production peaks in Q
Slide 57: 2015E Revenues and Adjusted EBITDA
2015E Revenues and Adjusted EBITDA(1)(2) Revenues and Adjusted EBITDA(1)(2) growth significantly impacted by lower estimated 2015 realized oil and natural gas prices − 2015E realized oil price of $50/Bbl vs ~$87/Bbl realized in 2014 − 2015E realized natural gas price of $3.00/Mcf vs ~5.00/Mcf in 2
Slide 58: Summary and 2015 Guidance
58 Summary and 2015 Guidance (1) As announced April 15, 2015 in conjunction with our April 2015 equity offering. (2) As reaffirmed on April 6, 2015; does not include capital expenditures associated with the HEYCO transaction. (3) Estimated 2015 oil and natural gas revenues and Adjusted EBITDA at mid
Slide 59: Matador Resources Investment Highlights
59 Matador Resources Investment Highlights High Quality Asset Base in Attractive Areas with Multi- year Drilling Inventory(1)(2) 85,400 net acres and 960 net engineered drilling locations in the Permian Basin prospective for the liquids-rich Wolfcamp, Bone Spring and other targets; Matador holds l
Slide 60: Appendix
= AN, jMatadar RESOURCES COMPANY Appendix
Slide 61: Hedging Profile
4.65 4.35 4.35 4.05 $4.65 $3.94 $3.94 $3.99 $3.73 $3.26 $3.26 $3.30 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 $7.00 3.70 3.80 3.90 4.00 4.10 4.20 4.30 4.40 4.50 4.60 4.70 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Na tu ra l G as Vol umes He dg ed (B cf) 420,000 600,000 690,000 690,000 $99.75
Slide 62: Board of Directors and Special Advisors
Board of Directors and Special Advisors – Expertise and Stewardship Board Members Professional Experience Business Expertise David M. Laney Lead Director - Past Chairman, Amtrak Board of Directors - Former Partner, Jackson Walker LLP Law and Investments Reynald A. Baribault Director - Vice President
Slide 63: Proven Management Team – Experienced Leadership
Proven Management Team – Experienced Leadership Management Team Background and Prior Affiliations Industry Experience Matador Experience Joseph Wm. Foran Founder, Chairman and CEO - Matador Petroleum Corporation, Foran Oil Company and James Cleo Thompson Jr. 34 years Since Inception Matthew V. Hairf
Slide 64: Wolf-Bone Geological Setting
64 “Wolf-Bone” Geological Setting, Predicting Where the Better Rocks Are 265 mya End of Bone Springs – Warmer! Delaware Basin San Andres Yeso Abo Delaware Mountain Group 1st, 2nd, 3rd Bone Spring Sands Sands confined to channels and distributary systems 1st, 2nd, 3rd Bone Spring Carbonates Wolfcamp
Slide 65: Understanding the Petroleum Systems for Maximum Oil Recovery
Understanding the Petroleum Systems for Maximum Oil Recovery Note: Diagram Modified from Bishop (2014). Eagle Ford & Haynesville Wolfcamp Bone Spring Conventional Unconventional Shelf Organic-Rich Basin Decoupled Coupled Micro-Coupled In-Situ Bone Spring Source Rock and Reservoir ReservoirRock Sourc
Slide 66: North Ranger-Twin Lakes Area Production Distribution
North Ranger-Twin Lakes Area Pennsylvanian/Wolfcamp “D” Production Distribution 66 A A’ MATADOR RESOURCES COMPANY PICKARD STATE 20-18-34 #2H Vacuum Field Townsend Field 166 wells 25 million Bbl, 49 Bcf Sanmal & Leamex Fields Corbin Field Kemnitz Field 94 wells 19 million Bbl, 78 Bcf Sanmal and Leame
Slide 67: Pennsylvanian/Wolfcamp D Hybrid Production Target Interval
Pennsylvanian/Wolfcamp “D” “Hybrid” Production Target Interval 30025300490000 AVRA OIL COMPANY 30025257790000 ELK OIL COMPANY 30025019240000 UNION OIL 30025397370000 CML EXPLORATION 30025414070000 CML EXPLORATION 30025416140000 MATADOR PRODUCTION A B E N A KI 1 0 S T A T E # 1 S T A T E ` 7 ` # 1 NO
Slide 68: WTI Oil Price and Service Prices
$60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 7/5/2014 8/24/2014 10/13/2014 12/2/2014 1/21/2015 $0 $20 $40 $60 $80 $100 $120 $140 Fr ac In de x Pric e & Drilli ng Sp rea d Ra te W TI Oi l Pri ce WTI Oil Price Frac Index Price Drilling Spread Rate WTI Oil Price and Service Pri
Slide 69: Infrastructure Development savings
Saltwater disposal savings $1.30/Bbl of produced water Infrastructure Development ...equivalent to a $5.10/Bbl uplift in oil prices Oil pipeline fee reduction ...an uplift of $0.90/Bbl in oil prices 69
Slide 70: Potential Water Recycling Savings for Loving County
Potential Water Recycling Savings for Loving County Saltwater Disposal Produced Water Purchase Frac Water Frac Additives Fracturing Well (~200,000 Bbl) Recycling Potential savings of up to $600,000 per well ...equivalent to a $3.00/Bbl uplift in oil prices 70
Slide 71: Strong Balance Sheet Metrics Relative to Peers
91.3% 85.8% 57.3% 56.6% 54.0% 53.7% 53.0% 47.9% 37.9% 34.6% 31.3% 13.2% 12.2% 12.2% 10.0% Peer J Peer B Peer N Peer I Peer D Peer C Peer E Peer A Peer H Peer G Peer F Peer L 0 Peer M Peer K 4.3x 4.3x 3.9x 3.5x 3.3x 2.7x 2.0x 2.0x 2.0x 1.9x 1.8x 1.5x 1.3x 1.2x 1.1x Peer K Peer M 0 Peer N Peer L Peer
Slide 72: Credit Agreement Status
Strong, supportive bank group led by Royal Bank of Canada Borrowing base at $375 million based on December 31, 2014 reserves Bank group affirmed $375 million conforming borrowing base in April 2015 Retained full $375 million conforming borrowing base upon closing of Senior Notes offering B
Slide 73: PV-10 Reconciliation
73 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
Slide 74: Adjusted EBITDA Reconciliation
74 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 75: Adjusted EBITDA Reconciliation
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. 75 (In thousands) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2
Slide 76: Adjusted EBITDA Reconciliation
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. 76 LTM at LTM at (In thousands) 2008 2009 2010 2011 20
Slide 77: Adjusted EBITDA Reconciliation
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. 77 (In thousands) 12/31/2011 6/30/2012 12/31/2012 6/30
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