Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (May 2013)
50 slides from Matador Resources's investor presentation, May 21, 2013
Slide 1: Investor Presentation May 2013
Exhibit 99.1 Investor May 2013Presentation
Slide 2: Safe Harbor Disclosure
Disclosure Safe forward-looking “should,” identifying statements business reserves economically conditions; you no of looking Cautionary 2not the obligation proved, should Harbor United statements” statements and plan, “continue,” related involve Statements words. refer Note and probable Statement e
Slide 3: Company Summary
ay, ¢ Matador Tier Company Summary
Slide 4: Company Overview
Company Completed Exchange: Shares Share Market 2012 Capital Total Adjusted million(2) 4(1) (2) for EBITDAActual Oil Price(1) Outstanding(1) Capitalization(1) Spending As Production EBITDA(3) Overview Ticker Estimated the IPO of a2013 May remainder is $9.65/share of$335 NYSE: Guidance 14,883,334 15,
Slide 5: Company History
Predecessor Foran ?Foran ?Sold Matador ?Founded ?Grown ?In ?Relatively ?Capital ?IPO 5(1) 2008, in to Oil Oil February Tom through Tom spending Today History Resources sold & by funded early Entities Matador Joe Brown Brown, Haynesville the Foran in 2012 focused with Company the drill purchased Petr
Slide 6: Matador Snapshot
Matador Average Oil Gas Proved % 2013E South West Gross Net Engineered (1) (2) 6(3) (4)Proved South Oil Production(1) Acreage(2) Production(1) Texas Acreage(2) Texas 45% and Anticipated CapEx Reserves Average Daily Resources Texas At production ~78% Developed Liquids /Drilling 27.4 New May$325 Produ
Slide 7: Investment Highlights
Investment High Eagle Expanding Other Proven Management Board Strong Oil 72013E production Quality Ford key with capital Financial record Growth Management assets acreage provides Highlights extensive Asset averaging of expenditure up Profile stewardship provide Position almost position Base immedia
Slide 8: Matador's Total Growth
Matador’s TOTAL 1,900 $156.0 $67.0 $30.6 $18.4 $14.0 22 2007 Growth (1) oil 8measure. 37 and 2013 2008 $230.0 $49.9 $34.0 154 $8.1 30 natural $115.9 Since OIL estimates 33 For $19.0 Continued 2009 $23.6 AND PRODUCTION(1) a$165.0 the 1,214 gas definition $15.2 2010 IPO used at millionsmillions midpoi
Slide 9: Growth in Proved Reserves and PV-10
Growth millions—10, 2008 9(1) PV-10 (2)in2009 is PV-10(1) a PV non-GAAP (2) 2010 from (2)Proved financial 2011 (2) Reserves measure. 2012 (2) For a reconciliation of Standardized Measure (GAAP) to PV-10 (non-GAAP), see Appendix (2) At December 31 of each respective year
Slide 10: Haynesville Reserves and PV-10 Sensitivity
Haynesville $800 Haynesville—Tier $600 ,$500 $400 -10 $200 $142 $26 $50 $25 $3.00 (1) Haynesville $ millions Total property-specific $18 $489 PV-10 $76 $59 $42 $258 $100 PV $4.00 $110 $0 $300 is$84 $4.50 Proved Resource 12 (Undrilled), a non-GAAP Producing, Potential differentials $5.00 $6.00 measur
Slide 11: Eagle Ford, South Texas
, ¢§ Matador {| RESOURCES COMPANY lyver Eagle Ford South Texas
Slide 12: Eagle Ford Overview
Proved % Daily Gross Net Eagle Austin 2013E Engineered (1) (2) (3) 12 (4) to (5)Proved Oil Acres(3) Oil Ford Ford(3)(4) Acres(3) /Anticipated CapEx Chalk(3)(4) estimated Drilled Acreage One growth the Some Reserves Liquids Total Production(2) Developed and Drilling 27,720 Average At Identified rig t
Slide 13: Proved Reserves Value Shift
Value $5.8 SE $2.4 Cotton $19.5 Haynesville $96.6 $393.6 December PV-10(1): (Standardized Proved (1) (2) (3) 13 PV-10 New million, million, ofValley million, Producing Mexico Proved is $248.7 31, Eagle a1% Future SE $21.8 non-GAAP Measure 2011 8% 39% 93% Reserves $2.0 Haynesville New million(2) Rese
Slide 14: Eagle Ford Acreage Transaction Highlights
Eagle All Highlights ?Transaction ?Matador’s ?Approximately ?Acreage ?Good Note: 14 Ford reputation Matador inProperties offers acreage Eagle both values potential 90% the with Ford acreage in ranging eastern of are counties land position acreage for inatand Good from and Austin May with mineral app
Slide 15: Eagle Ford Acreage Map
Eagle 41,302 Bexar Uvalde EOG Keseling Wilson GLASSCOCK Atascosa 8,891 Sickenius Lyssy Zavala Glasscock Pawelek Shelton Ranch La Dimmit COMBO GAS Affleck Troutt EAGLE Sutton Matador Webb DRY Note: 15 Salle FAIRWAY GAS OPERATED, All gross Ford 13,093 Hennig Frio gross Cowey San Live Goliad Northcut F
Slide 16: Well Results
Well Total 2012 Glasscock Martin Frances Matador Northcut Average 1) 2) 3) 4) 5) 16 Total Top Rates OilName Wells Operated (ft.) equivalent perf Ranch length Lewton as are 5,113 Pawelek Danysh Sickenius K. Cowey A B(ft.) Ranch reported 1H 2H 4H is County Love based measured A B (Bbl/day) 18.4 of La
Slide 17: Well Performance and Design Evolution
Well First Third 700 Eagle Fourth 900 Second 800 Rate, Production 300 Recent with Oil 600 Install Mcf/d PSI 400 1,000 500 1,200 Gas, and Bbl/d 200 100 0Oil, Cumulative Note: Vertical Lateral 17010,000 5,000 Prod 600 1,400 Fourth 300 Generation Improvement 500 Generation First 600 700 400 Ford 800 Pa
Slide 18: Eagle Ford Well Costs Declined, Western Acreage
Eagle Wells Note: 18 Ford Well are displayed Costs Declined in chronological During 2012 order. – Western Wells drilled Acreageand completed using two casing strings. Well drilling and completions costs only; costs do not include pipelines and lease facilities.
Slide 19: Eagle Ford Well Costs Declined, Eastern Acreage
Eagle Wells Note: 19 Ford Well are displayed Costs Declined in chronological During 2012 order. – Eastern Wells drilled Acreage and completed using two casing strings. Well drilling and completions costs only; costs do not include pipelines and lease facilities.
Slide 20: Average Cost per Frac Stage
Bauxite $450,000 Cost $300,000 $350,000 $400,000 Average 1Stage $0 $50,000 $100,000 20 Note:$250,000 White 2$200,000 Frac 3 4are Wells Stage 5Sand 6displayed 7$150,000 8Cost Resin-Coated 9 10per 11chronological in Well 12 13Sand 14 15 16 17 18includes order; 19 20 21 all22 23 24 25 Matador 26 27 28
Slide 21: Eagle Ford Individual Well Economics
Eagle Individual $90.00/Bbl Western Eastern Note: 21 Ford Acrege Acrege Well NYMEXEstimated well oil; economics $3.00/Mcf ROR as only. aNYMEX Function NGL price natural of EUR differential gas and Well +$1.85/Mcf. Cost Oil price differential +$7.00/Bbl.
Slide 22: Recent Drilling and Completion Improvements
Recent Rotary Drilling Measurement Improves Removes Improved Generation 25 40 1,700 Cut Zipper Daily Choke Increases Delays Lowers Mitigates Artificial Pumping Gas-lift 22 tofrac Bbl/ft 40 fixed lbs/ft size fracs Steerable Technical effects installation bottom-hole valves time stage foot frac units
Slide 23: Drilling Times and Efficiencies
Drilling First *Recent 23 Note:4As Wells Wells Bold Times wells and Efficiencies of January utilized 25, 2013rotary steerable systems
Slide 24: Emerging Multi-Pay Fairway
Emerging San Bexar Guadalupe Uvalde Multi-Pay with Zavala Atascosa Dewitt OIL Goliad Dimmit Bee McMullen Webb DRY Note: 24 Antonio FAIRWAY Pearsall, GAS All Matador Frio Medina Laacreage Multi-Pay Fairway Live FAIRWAY Salle Karnes Gonzales Austin Resources Oak at May Area Chalk 15, Acreage inand Eag
Slide 25: Delaware Basin
Delaware Basin Southeast New Mexico and West Texas
Slide 26: Southeast New Mexico and West Texas Acreage
Southeast Gross Net Foothold Acreage surrounded INDIAN DRAW 14,700 and Company gross for including LOVING (1) WOLF 26 multiple Acres(1) Eddy and Acres(1) gross EDDY Total position RANGER- of the Counties, 18,100 plays considers New by existing oil and 20,303 Wolfcamp acreage other LEA 30,605 Mexico
Slide 27: Wolfbone Play Information
Wolfbone Horizontal Avalon XRD: 1st Normal Upper IP: Middle Depth: Density Thickness: Geopressure Total Note: 27 100-270 10-600 121-900 2nd Organic Information 15-20% Wolfcamp 7,900’ 8,500’ 10,500’ 11,500’ Shale Wolfcamp 3rd Pressure Porosity: Play Bbl/d Targets 300-500 10-100 280-350 200-300 Bone B
Slide 28: Ranger Prospect Multi-Zone Results
Ranger Multi-Zone Bone Concho Wolfcamp LLS GR(CTR) 2Condor 2057AmtexAmtex TeapotTeapot 017119 5252 583rd Spring Prospect State 19 mo.mo. Bone Concho 2nd 2ndLLD Exploration ndBoneBone /#1H Upper Type Area: Energy0.2339339 0150 ndBoneBone 2H MBO;MBO;3737 Spring cum: 02H cum: Log 2000 Proposed 0.2 Prog
Slide 29: Multi-Zone Wolfcamp Results
Multi-Zone 122 Johnson 6Chesapeake 51 mo.cum: EnergenMBO; Grayling IP: 343,500 on Leasehold: 791 51-75 psi1-86 Reagan-McElvain OXY Dorothy 17 25 Katie Wolf (Vertical 3rd 33 58 Bushmaster Wolfcamp years MBO; BSEnergy #1 1-72 /BOPD 27 Wolfcamp 344 Exploration Chesapeake 10 mo.cum: White Upr cum: well)
Slide 30: Haynesville, Northwest Louisiana and East Texas
HaynesvilleLouisiana Northwest & Cottonand Valley East Texas
Slide 31: Tier 3 Haynesville and Cotton Valley Acreage
Tier Almost CADDO BOSSIER TIER BIENVILLE T. Horizontal Elm 49 Matador Acreage: Locations: locations/section) Potential L.A. MTDR Williams (1) prices Note: 31 Walker Net Potential 1Grove Wildlife All 3: 1: Matador Haynesville Locations CV Haynesville all 2Operated 6TIER Resource(1): 9,980 (BLM) acrea
Slide 32: Haynesville Individual Well Economics
Haynesville R % Natural Rate of Note: 32eturn,Individual Gas Well Price, well Economics $/Mcf economics – Tier only. 1 Area D&C cost = drilling and completion cost. Natural gas price differential = ($0.85)/Mcf.
Slide 33: Cotton Valley Individual Well Economics
CottonIndividual Note: 33 Valley Horizontal well economics Well Economics only. D&C cost = drilling and completion cost. Natural gas price differential = (10%)
Slide 34: Wyoming, Utah and Idaho
Wyoming, Utah and Idaho Gracie
Slide 35: Rocky Mountain Acreage
Matador IDAHO WYOMING Crawford 61,897 ?Crawford Note: 35 All gross UTAH Gracie acreage Federal Federal IDAHO acres Project at #1H 30,492 #1H May UTAH Total WYOMING 15, net2013 Prospect acres completion Acreage scheduled for summer 2013
Slide 36: Southwest Wyoming Cretaceous Shale
Southwest Crawford 2% Cretaceous of Recovered across TOCave Thermally 13% Meade Micro-Darcy Drilled 2012; Lamberson, Basin the Wyoming 36 main Absaroka TOC TOC plan and pay Peak straight 2,500-ft pay 4.52% Federal and its Wyoming mature: zone to 50’ Shales Paul, Shale Relationship Permeability Thrus
Slide 37: Financial Overview
, ; Matador We ee Financial Overview
Slide 38: 2013 Financial Expectations
- Mid-point ??Adjusted 2013 ???Estimated Oil Adjusted (1) Appendix estimated (3) 2013. 38Production Lease G&A Operating DD&A Adjusted and Financial Revenue Operating =Natural operating Consistent = EBITDA(1)(2) $5.20 results (2) $30.00 EBITDA(1)(2) is cash Adjusted oil average EBITDA taxes/marketing
Slide 39: 2013 Production and Financial Expectations
2013 ??Drill ??Including ??Also ??Includes ??Compares ??Natural ?2013 ??Oil ??Adjusted ??Total ?Maintain ??2013 ??Current (1) remainder (2) 39 Appendix Adjusted Estimated Capital production and projected Production Financial and includes expenditures oil borrowings natural gas borrowings of financia
Slide 40: First Quarter 2013 Highlights
FirstAdjusted Production from ?Average over-year Financial ?Total including ?Oil ?Adjusted Acreage ?During ?Consider (1) 40 Appendix production and Quarter 426,000 realized Acquisitions March natural Performance daily $3.1 BOE EBITDA(1) approximately Growth EBITDA 2013 Bbl million revenues oil incre
Slide 41: Financial and Production Performance
Financial Average (BOE/d) 12,000 10,000 $59.3 10,897 8,023 6,300 8,000 6,000 4,000 2,000 0$9.2 Adjusted ($ $45.0 $40.0 $40.7 $25.0 $30.0 $50.0 $35.0 $60.0 $21.3 $20.0 $10.1 $15.0 $10.0 $5.0 $0.0 1Q10 (1) (2) Appendix 41$0.0 in Adjusted $10.0 $0.0 mm) 1Q11 $50.0 $29.2 3,417 $13.7 $10.0 $70.0 $59.7 $4
Slide 42: Hedging Profile
At May 1.08 5.8 6.7 1.68 Oil Natural 2013 Total Weighted Note: 42 Bcf million Hedges million and 2014 Volume Hedged of Gas 8,2014 Average natural 2013, gallons (Costless (Swaps) Hedges Liquids barrels Hedged volumes Hedging Matador gas Price of of (Costless (NGLs) Collars) natural hedged (Bbl) by (g
Slide 43: Reserves Summary
Reserves ?Total ?PV-10(1) ?Oil ?Eagle ?Sequential ??Proved ??PV-10(1) (1) 43 PV-10 reserves proved Ford Summary developed isincreased increased growth: areserves grew comprised reserves: non-GAAP 88% atoil 33% comprised 4% March 23.6 reserves to 45% to financial 10.7 $438.1 million 31, (1million 93%
Slide 44: Appendix
ay, {Matador tir Appendix
Slide 45: Board and Advisors
Board and David Lead Gregory Dr. Michael Margaret Carlos Director Marlan Wade Edward W.J. — Special 45 Partner, Past Formerly Retired Stephen Steven Advisors “Jack” Director I.M. of Members M. W. President Board Massad R. C. Finance — E. Directors B. Laney Sepulveda, President President, W. Downey S
Slide 46: Proven Management Experience
Proven Management Experience Joseph Founder, Matthew EVP David Executive Bradley Craig Ryan VP Kathryn Controller 46 and and C. N. E. F. Wm. Management CTO General M. London L. Adams Nicklin V. Chairman COO Head Lancaster Director and Wayne Experience Robinson Hairford Foran Marathon Team Treasurer
Slide 47: South Texas Pearsall Play Activity
South CHK 3.2 397 47 Bbls/MMcf MMcf/d, Murray IP: Note: –All Texas: 5Wilson Schorp-White Liq en Completed 2Valence Cheyenne uid horizspot Suspended, EOG Tom Chesapeake Shell Gas Indio 4Cheyenne #1H Permits 258Bbl/d, 135 Activity –Hanks Rosetta waiting Tanks Bbl/d, #1H w/ mo. 334 Pearsall drilling Op
Slide 48: Adjusted EBITDA Reconciliation
ThisCompany’s consolidated believes defines and net Adjusted the company’s manner. activities, could addition, 48 cash losses, investor not Adjusted The Adjusted provided itEBITDA provide respectively, cost would certain following financial presentation operating ofEBITDA by such EBITDA be capital o
Slide 49: Adjusted EBITDA Reconciliation Table
Thethousands) respectively. Total Depletion, Accretion Full-cost Unrealized Stock-based Year (In Unaudited Net Interest Current Adjusted 49 Income (loss) loss Cash cash change following Ended income expense income (gain) provided ceiling EBITDA Provided income of Adjusted depreciation loss in Decemb
Slide 50: PV-10 Reconciliation
PV-10 future reserves 2013, flows 2012, We hardship 50 have at December net Reconciliation is such held aon not revenues. non-GAAP account provided by dates companies 31,by PV-10 of 2012, 2011, areducing financial many reconciliation December March isand not unknown PV-10 measure ofan 31, the estima