Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (March 2013)
54 slides from Matador Resources's investor presentation, Mar 15, 2013
Slide 1: Investor Presentation March 2013
Exhibit 99.1 Investor Presentation March 2013
Slide 2: Disclosure
Disclosure “forward-looking looking “continue,” results uncertainties, program costs our actual Factors” statements as companies, 2including ofbusiness the ofresults and statements operations, is section date such related to Statements successful; future in “plan,” plan, to reflect of including, the
Slide 3: Company Summary
oy, (Matador een [LL Company Summary
Slide 4: Company Overview
Company overallotment 2013 12.5 Estimated average 4reconciliation billion Guidance realized Overview 2013 cubic of at2012 oil prices Adjusted $12.00/share feet and Completed Actual 11.0 for natural EBITDA oil to2013 12.0 and ingas IPO March Guidance natural billion revenues toofour 14,883,334 2012 g
Slide 5: Company History
Founded transaction drill participation 2010 purchased bit, andwith by 2011 by Foran Joe interest, focus Encana Capital Foran Oil onin carried &unconventional in spending 2004 Matador 1983working Matador Foran focused Petroleum Oil interest reservoir Today on funded developing 5 Matador and plays, w
Slide 6: Matador Resources Snapshot
Daily Oil 141,782 Engineered daily 6units 44% and production Production acres 2013E estimated Tier Net CapEx 1for @and Acreage(2) lateral the 12/31/12(1) Tier $310 year lengths, 2 ended million locations 87,650 9,000 costs December %acres identified BOE/d South andIdentified well Texas 31, Oilfor sp
Slide 7: Investment Highlights
7 Investment in Technical record focused Delaware ofonstewardship Team oil Basin Highlights and andliquids inActive West forStrong nearly exploration Texas BoardFinancial 30 Other ofyears Directors and key Strong Position development assets Management Growth provide and Prudent Profile long-term ave
Slide 8: Matador's Continued Growth
Matador’s by operating Continued activities,Growth see Appendix 8 (1) Adjusted Note: 2013E EBITDA at the is amid-point non-GAAP of 2013 financial guidance, measure. respectively For a definition in millions of Adjusted in millions EBITDA and a reconciliation of Adjusted EBITDA to our net (loss) inco
Slide 9: Growth in PV-10 from Proved Reserves
Growth in (2) Appendix PV-10(1) At December from Proved 31 of each Reserves respective 2008 (2) year 2009 PV-10, (2) 2010 millions (2) 92011 (2) 2012 (2) (1) PV-10 is a non-GAAP financial measure. For a reconciliation of Standardized Measure (GAAP) to PV-10 (non-GAAP), see
Slide 10: Eagle Ford South Texas
oy, ¢ Matador een LL Eagle Ford South Texas
Slide 11: Eagle Ford Overview
11 Eagle primarily December Ford(3)(4) completed Eagle units year Engineered ended and Ford Ford estimated focused 31, wells 27,911 December and Tier 2010 and Austin 1operated on and acres Austin lateral Proved oil 31, Tier Chalk. Austin and Chalk 2012 by lengths, 2Reserves liquids Matador locations
Slide 12: Value of Proved Reserves
12 Value 2012 million, financial $2.757/MMBtu PV-10(1): 52% measure. of Proved SE$423.2 gas New For Reserves Mexico amillion(2) reconciliation Up $2.4 70% (Standardized million, and of Standardized Shifting 1% December Measure to Oil Measure Over =31, $394.6 2011 Past (GAAP) million) Year PV-10(1):
Slide 13: Highlights for Matador's Eagle Ford Properties
Highlights Matador’s for Austin Chalk, Eagle 13 Eagle Ford Buda, Ford position Pearsall Properties approximately and are other in Good formations 28,000 Neighborhoods net Good acres reputation Acreage Matador’s with in both acreage landthe and eastern inmineral counties andowners western with robust
Slide 14: Eagle Ford Acreage
14 EAGLE gross 27,911 Sickenius / 10,259 netLyssy acres FORD netRepka COMBO acres EAST RCT San 7,707 LIQUIDS Antonio Wilson grossLove Uvalde / /GAS 6,307 Cowey FAIRWAY Medina net acres Keseling Zavala EOG DRYFinney Frio OPERATED, GASDimmit FAIRWAY LewtonLa MTDR Hennig Salle OIL Webb WI FAIRWAY Nicke
Slide 15: Eagle Ford Well Results
Well Total 2012 Martin 9,502 1H 885 Karnes 2,155 9/12/2012 16/64 13H 1,879 Average 1) 2) 3) 4) 5) 15 Total Top Rates Oil La 24/64 LaSalle Name Wells Operated (ft.) 17 16/64 14/64 1,680 equivalent Salle perf Ranch 6/10/2012 length as are 5,113 609 (ft.) 950 4,798 reported is County based 3/23/2012 5,
Slide 16: Eagle Ford Well Costs Declined During 2012 – Western Acreage
Eagledo costs Ford notWell include Costs pipelines Declined andDuring lease facilities. 2012 – Western Acreage 16 Note: Wells are displayed in chronological order. Wells drilled and completed using two casing strings. Well drilling and completions costs only;
Slide 17: Eagle Ford Well Costs Declined During 2012 – Eastern Acreage
Eagledo costs Ford notWell include Costs pipelines Declined andDuring lease facilities. 2012 – Eastern Acreage 17 Note: Wells are displayed in chronological order. Wells drilled and completed using two casing strings. Well drilling and completions costs only;
Slide 18: Average Frac Stage Cost per Well
Average Frac Stage Cost per Well 18 Note: Wells are displayed in chronological order; includes all Matador operated wells drilled and completed through December 31, 2012
Slide 19: Eagle Ford Well Estimated ROR as a Function of EUR and Well Cost
Eagle FordNYMEX $3.00/Mcf Well Estimated naturalROR gas Western as a Function Acreage of Eastern EUR and Acreage Well Cost 19 Note: Individual well economics only. NGL price differential +$1.85/Mcf. Oil price differential +$7.00/Bbl. $90.00/Bbl NYMEX oil;
Slide 20: Recent Technical Advancements
20 Recent stay (75% permeability controllers inincrease “sweet-spot” Technical onIncreases low fromgas/oil previous Removes Advancements Estimated ratiodesign) sumps (GOR) Ultimate inZipper and the wells high-angle Eagle Recovery Gas-lift Fracs Ford (simultaneous valves curves (EUR) Rotaryon Improve
Slide 21: Drilling Times and Efficiencies
Drilling Times and Efficiencies 21 Note: As of January 25, 2013 * Bold wells utilized rotary steerable systems First 4 Wells Recent Wells
Slide 22: San Antonio Acreage
22 San Antonio Acreage Note: All Multi-Pay acreage Fairway at December with 31, Pearsall, 2012 Medina Austin Chalk Zavalaand Frio Buda Dimmit potential La Salle OILWebb FAIRWAY BexarDRY Atascosa GASMcMullen FAIRWAYDewitt MatadorGonzales Resources Wilson Acreage Karnes Emerging Live Oak Multi-Pay Bee
Slide 23: Delaware Basin Southeast New Mexico and West Texas
Delaware Basin Southeast New Mexico and West Texas
Slide 24: Delaware Basin Acreage
24 Matador gross and 2,900 Today netMatador acres prospective Today Gross for Acres(1) the Wolfbone 15,860 play acres in the NetDelaware Acres(1) Basin 7,591 in acres Loving Southeast County, New Texas. Mexico Acreage / West at Texas December Foothold 31, 2012 of existing RANGER-production QUERECHO
Slide 25: Wolfbone Play
25 Wolfbone Organic (0.7psi/ft.) Horizontal from public Carbon Total Targets sources Play(TOC) Organic in 1stthe 2nd 5-8% Delaware Carbon 3rdXRD: Bone (TOC) Basin 15-20% Spring 2-4% (West Depth: clay Upper Texas) and 8,500’ Wolfcamp 40-60% Stratigraphic – 10,600’ silica Depth: Column IP: (Oil10,500’
Slide 26: Ranger Area Results
Ranger #1H XOG 2nd sources. Bone 3rd Operating Prospect 3Bone Spring Rivers Spring (Vertical Area: Sand Oper9Proposed 3rd Eagle mo.cum: well) Bone 2 State Jordan Wolfbone Spring 1306H MBO; BSand 3rd #1Multi-Zone Wolfcamp 99 Bone Wolfcamp MMcf Spring Legacy 20 Exploration Bone 2years mo.cum: Spring O
Slide 27: Wolf Leasehold
Wolf Leasehold: White mo.cum: Energen location #1for Resources 122 (Vertical Matador MBO; Proposed well) Grayling 344 2013 3rd MMcf test Wolfbone BS 1-69 well OXY / Upr IP: Anadarko Multi-Zone 791 Reagan-McElvain Wolfcamp BOPDBlack 17 Exploration 7.3years Tip MMCFD Johnson 1Hcum: Spud Program 3,500
Slide 28: Haynesville & Cotton Valley Northwest Louisiana and East Texas
Haynesville & Cotton Valley Northwest Louisiana and East Texas
Slide 29: Haynesville and Cotton Valley Acreage
Tier DESOTO Haynesville: L.A. may at December 1be Wildlife Haynesville converted Elm50 31, #1H Grove Net 2012 to MTDR and Locations proved Cotton 29 ElmHaynesville Grove natural Valley: Acreage: Cotton gas 49Williams reserves Net 12,568 Valley Locations gross, as (BLM) Acreage a result 5,737 Matador
Slide 30: Haynesville Well Economics – Tier 1 Area
30 Haynesville Well Economics – Tier 1 Area Rate of Return, % Natural Gas Price, $/Mcf Note: Individual well economics only. D&C cost = drilling and completion cost. Natural gas price differential = ($0.85)/Mcf.
Slide 31: Cotton Valley Horizontal Well Economics
31 Cotton Valley Horizontal Well Economics Note: Individual well economics only. D&C cost = drilling and completion cost. Natural gas price differential = (10%)
Slide 32: Gracie Wyoming, Utah and Idaho
Gracie Wyoming, Utah and Idaho
Slide 33: Matador Gracie Project
Matador Gracie December 31, 2012 Project Crawford Total Prospect Federal #1H Acreage completion IDAHOscheduled UTAH WYOMING for summerWYOMING 2013 WYOMING IDAHO UTAH WYOMING 55,273 gross acres 27,180 net acres Crawford Federal #1H 33 Note: All acreage at
Slide 34: Southwest Wyoming Shales
Southwest Shales Thermally 2% Wyoming mature: TOC Crawford RoStratigraphy 1.69%Federal Porosity and #1: Target Average: DrilledZones straight 3.0–Lamberson, 5.0% hole Micro-Darcy in latePaul, 20111982, Encountered Permeability The Fossil 161’ Drilled Basin Meade 2,500-ft andPeak its Relationship hor
Slide 35: 2013 Capital Investment Plan
2013 Capital Investment Plan
Slide 36: 2013 Capital Investment Plan Highlights
2013 Ford land/seismic Bcf to through estimated plus measure. $160 –property-specific Shale Capital mid-point million borrowings operating For 2013 andacquisition Investment a definition 3.0 operational –down mid-point cash gross/3.0 under differentials. 8% flows Compares Plan ofrevolving from cash
Slide 37: Estimated 2013 Production Expectations
37 2013 delays, Bcf December Mid-point shut-ins Oil6,Production 2012) isdue a decrease quarterly to pad Estimated drilling, ofaverage 8% total from zipper oiloil 2012 andfracs, production natural Gasetc. production gas Oil of production 1.6 toexpected 1.8 million expected at midpoint to remain barre
Slide 38: Funding the 2013 Capital Investment Plan
Funding Eagle Credit borrowing drilling balanceFord facility rig sheet forbase or program 2013 service status increases Capital is atcontract development March with Investment commitments 14, growth 2013 drilling Plan inBorrowing oil38and $25 Maintain natural largely million basefinancial gas de-ris
Slide 39: 2013 Anticipated Capital Expenditures
39 Continued Continued 2013 Eagle West Bone Northwest Haynesville Southwest Meade Land/Seismic/Etc. Other Total Anticipated Texas/Southeast 48.0 Spring/Wolfcamp Ford Peak 31.3 Wyoming Louisiana Oil/Liquids Shale Shale Shale Oil/Liquids 100.0% Drilling 31.0 10.0 — 1.0—New 0.4 25.8 Focus 0.5 $309.4 3.
Slide 40: Eagle Ford 2013 Drilling Plan
40 to gross 27,911 Sickenius have 225,000 (Buda Remaining 80 2012 EAGLE estimated 2013 120-acre / –10,259 net Non-Op) Bbl Lyssy acres South Eagle FORD ofnet spacing) ultimate oil Repka COMBO Texas Ford 1acres or EAST (Edwards locations Drilling RCT Drilling No San recoveries 7,707 LIQUIDS Eagle Anto
Slide 41: Delaware Basin 2013 Drilling Plan
Delaware prospective A1 Wolf Primary 1 Primary Basin as Target: ofTarget: Acreage December 2ndWolfcamp Bone and31, 2013 Spring 2012 Shale Drilling Sand 41 RANGER Ranger Plan Matador’s A2 EDDY Primary LEA acreage Target: LOVING position Wolfcamp WOLF at December Shale DELAWARE WOLF 31, 2012 5,203 BAS
Slide 42: Recent Operations Update
Recent Compared operations December Ford acreage Production 2012 to 2013 update, andproduction and production early Financial 2013averaged guidance production Highlights approximately of approximately performance 42 December 5,800 attributable 4,000 2012Bbland Bbl of oil early of to better-than-expe
Slide 43: Estimated 2013 Financial Expectations
43$160 to million excluding our 2012 Gas2013 net Revenues(2) strip (loss) in million Revenue realized interest prices income Mid-point for (millions) and =hedging $17.00 oil and Adjusted and net isgains DD&A Adjusted natural an cash EBITDA(1)(2) increase compared provided = gas, EBITDA(1)(2) $29.50
Slide 44: Appendix
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Slide 45: Board of Directors
Board of Past Ohnimus Director Former Management, Chairman, DeGolyer Dept. Chairman, ofPresident, of Retired Directors Director and Amarillo Petroleum LLC MacNaughton Amtrak VPShell Retired and Former and Economic Engineering, Special Board Pecten General VP EVP (Worldwide and of Development Board I
Slide 46: Proven Management Team
Proven Petroleum Shamrock Assignments Craig L. Wayne N.Management Adams Controller 33 Corporation, in years UK, VPSince and Angola, and Team Foran General Treasurer— 2003 – Experienced Norway Oil Matthew Counsel— Company, Matador andV.the Leadership Hairford Baker JMiddle Cleo Petroleum Botts Thomps
Slide 47: Hedging Profile
47 2013gas natural average volumes price and shown hedged 2014 of in $1.25/gal Hedging table for remainder for1.44 2014 Profile million are ofAt 2013 for March barrels full at weighted calendar 14, of 2013, oil, 7.2 year. average Matador Bcf offloor natural has:and 1.34 gas ceiling million and of 2.
Slide 48: Reserves Summary
Reserves from reserves December 2012 see Appendix 3.8 PV-10(1) at million Summary 31, June2012 increased 30, Bblat 2012 asatDecember compared December 16% Oil reserves to $423.2 31, to31, 52% 2012 2011 comprised million at48 December PV-10(1) Total from 44% proved increased $363.6 31, (1 Bbl 2011 re
Slide 49: Financial Performance
49 Financial operating (BOE/d) activities, Performance see Appendix (1) Adjusted (2) Includes EBITDA realized is a non-GAAP gain on derivatives financial measure. Oil and Natural For a definition Gas Revenues of Adjusted ($ in mm) EBITDA Totaland Realized a reconciliation Revenues(2)of Adjusted ($ i
Slide 50: South Texas Pearsall Play Activity
South Bbls/MMcf Avant 5,339 Henks w/ 2797 Bbl, Texas: D #1Ftp #1H Testing 16MMcf Cromwell 5Pearsall 300 mo.cum EOG Bbl/mo. CHK Play #1H 6,917 Tests –Anadarko ––Wilson Abnd. 500 Bbl, 5 mo.–153 Cabot/Osaka 2000 4CNewfield MBbl, #1H MMcf Bbl/mo. 3.2 71 50 MMcf/d, Chesapeake MMcf Note: JV Temp. Osaka Al
Slide 51: Pearsall Area Activity
Pearsall ENERCORP, TAR, CHK, mo. ~ Burnett 44 CARRIZO Field to 35ORXY Area Best MBbl Best 3Buda mo. Avg CHKFD 3 mo. /~24 Eagle 46,MBbl ~Activity 37,9, 54, Ford 45 Note: 8,MBbl / 5Best Chalkleford MBbl All3Avg acreage mo. CABOT, 28~ Activity MBbl 52 at to December CHEYENNE 37 GOODRICH—Burns 51 MBbl C
Slide 52: Reconciliation of Adjusted EBITDA
52 Adjusted before non-cash activities EBITDA prospective included reconciliation interest in stock-based as helps is to this not or the determined EBITDA on estimates expense, us aGAAP presentation, account measure evaluate compensation Reconciliation financial in income inof of accordance nature,
Slide 53: Adjusted EBITDA Reconciliation Table
Thethousands) amortization derivatives (136,977) Year (In Net Current Adjusted (loss) cash following Ended income provided EBITDA 379 income 211 December 7,889 224 table 2007 (3,592) tax($300) by 154 Reconciliation $8,090 12,127 provision presents 2008 operating 31, 485 2,375 $103,878 2009 $18,411 1
Slide 54: PV-10 Reconciliation
54 PV-10 income reserves 2008, discounted $119.9, $8.8, $33.2 December taxes $248.7 held Reconciliation future and by onand $28.6, companies future 31, income $423.2, 2009, respectively. net PV-10 taxes revenues. December respectively. andassociated is ofathe non-GAAP PV-10 31, potential The 2010, w
Matador Resources — Investor Presentation (March 2013) on 6ix