Matador Resources Company · NYSE:MTDR

Matador Resources — Investor Presentation (February 2022)

22 slides from Matador Resources's investor presentation, Feb 22, 2022

  1. Slide 1: 2022 Operating Plan and Market Guidance

    2022 Operating Plan and Market Guidance February 22, 2022

  2. 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

  3. Slide 3: 2022 Priorities and Milestones – Free Cash Flow, Operational Excellence and Shareholder Returns

    2022 Priorities and Milestones – Free Cash Flow, Operational Excellence and Shareholder Returns 2022 Priorities Significant 2022 Milestones - Timeline Deliver Free Cash Flow 1 Next 11 Voni (Stateline) wells to sales • Grow production to >100,000 BOE per Pay Down Debt 2 9 Rodney Robinson wells to sal

  4. Slide 4: Summary and 2022 Guidance (as Provided on February 22, 2022)

    Summary and 2022 Guidance (as Provided on February 22, 2022) Actual %YoY Guidance Metric 2022 Guidance 2021 Results Change(1) Total Oil Production 17.8 million Bbl 21.0 to 22.0 million Bbl + 21% Total Natural Gas Production 81.7 Bcf 92.0 to 98.0 Bcf + 16% Total Oil Equivalent Production 31.5 million

  5. Slide 5: Matador's 2022 Delaware Basin Operated Drilling Program

    Matador’s 2022 Delaware Basin Operated Drilling Program Rustler Breaks DELAWARE BASIN ~237,200 gross / ~124,800 net acres TWIN LAKES − 28 gross (15.9 net) wells in progress for 2022 ~42,900 gross / ~20,500 net acres − 20 gross (12.4 net) wells turned to sales, including 4 1st Bone Spring, 7 2nd Bone

  6. Slide 6: Wells Turned to Sales – 2022 Guidance

    Wells Turned to Sales – 2022 Guidance(1)  During full year 2022, Matador expects to turn to sales 182 gross (69.7 net) wells. Matador expects the Delaware Basin to account for 169 gross (69.0 net) wells, including 80 gross (60.8 net) operated and 89 gross (8.2 net) non-operated wells  In 2022, Mat

  7. Slide 7: 2022 Capital Investment Plan Summary

    2022 Capital Investment Plan Summary(1) Full Year 2022E CapEx(2) – $730 million – Midpoint (Delaware: Adding 6th operated rig by end of Q1 2022) 2022E Wells Turned to Sales Actual % YoY 2021 Results 2022 Guidance Change(3) Gross Net Drilling, Completing, Equipping $513 million $640 to $710 million +

  8. Slide 8: Record Low Costs in 2021 – Cost Inflation Ahead in 2022

    D&C Costs Expected to Increase in 2022: Record Low Costs in 2021  Cost Inflation Ahead in 2022 Drilling & Completion (D&C) CapEx/ft(1) Percentage of Two-Mile Laterals ($/ft) Avg. Lateral 4,700’ 5,700’ 8,800’ 10,500’ 9,850’ Length +21% +54% +19% -6% $1,528 98% 90% 2022E costs account -24% for 10 to

  9. Slide 9: Maintaining Low CapEx During High Commodity Prices

    Maintaining Low CapEx During High Commodity Prices: Continued Improvement in Execution and Efficiency Gains Drilling & Completion (D&C) CapEx/ft(1) Operational Improvement Spotlight: ($/ft) $1,750 D&C CapEx/ft WTI Oil Price 2022E costs account for 10 to 15% service cost $100 “Remote” Simul-Frac infl

  10. Slide 10: 2022 Oil and Natural Gas Production Estimates

    2022 Oil and Natural Gas Production Estimates(1) Total Oil and Natural Gas Production 19% 2022E Oil Production – 21% Growth YoY 2022E CapEx(1)(2) (Midpoint): Natural Gas, Bcf D/C/E: $675 MM 37,300 Oil, MBbl • Estimated oil production of 21.0 to 22.0 million barrels Midstream(3): $55 MM 31,454 Total:

  11. Slide 11: 2022 Total Production Forecast by Quarter

    2022 Total Production Forecast by Quarter(1) Natural Gas, MMcf/d 2022E Quarterly Production Cadence Oil, Bbl/d Stateline shut-ins occurred Minimal production impact Production impact of 9 Minimal production impact Production impact of new later than anticipated, pulling in Q1 2022 from 9 Rodney Rodn

  12. Slide 12: San Mateo – Differentiated Midstream Asset Continues to Add Value to Matador

    San Mateo – Differentiated Midstream Asset Continues to Add Value to Matador(1) 2015-2016 2017-2018 2019-2020 2021+ ► Initial midstream build-out ► San Mateo I formed in ► San Mateo II formed in ► Adj. free cash flow(2) in the Delaware Basin February 2017 – Owned February 2019 – Owned generation – $

  13. Slide 13: 2022E Operating Cost Estimates (Unit Costs per BOE)

    2022E Operating Cost Estimates (Unit Costs per BOE)  Matador provides the following updated estimates for its 2022 unit operating costs as shown below 2020 2021 Q4 2021 2022E Production taxes, transportation and processing 1 $3.39 $5.69 $6.48 $6.75 to $7.25 (“PTTP”) 2 Lease operating (“LOE”) $3.81

  14. Slide 14: Hedging Profile – Remainder of 2022

    Hedging Profile – Remainder of 2022(1) Oil Collars Midland-Cushing Basis Swaps Natural Gas Collars ~25% hedged for 2022 ~25% hedged for 2022 ~60-65% hedged for Q1-Q3 2022 ~40-45% hedged for Q4 2022 16.0 15.6 15.6 1,380 1,380 1,380 1,380 1,400 1,350 1,350 1,350 1,400 14.0 Natural Gas Volume Hedged (B

  15. Slide 15: Appendix

    ay, ¢ Matador fies RESOURCES COMPANY Appendix MIDR NYSE

  16. Slide 16: Matador Resources and San Mateo Credit Facilities

    Increased by 50% in November 2021! Matador Resources and San Mateo Credit Facilities Matador Credit Agreement Summary Bank group led by Royal Bank of Canada Last Elected Borrowings Letters of Credit Financial Covenant: Facility Maturity Borrowing Financial Covenant: Reserves Borrowing Outstanding Ou

  17. Slide 17: 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

  18. Slide 18: 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) 1Q 2016

  19. Slide 19: 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)

  20. Slide 20: 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 (loss) and net cash provided by (used in) operating activities, respectively, for San Mateo Mids

  21. Slide 21: 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

  22. Slide 22: 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

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