Matador Resources Company · NYSE:MTDR
Matador Resources — Q3 2024 Earnings Presentation
50 slides from Matador Resources's earnings presentation, Oct 23, 2024
Slide 1: Third Quarter 2024 Earnings Release
Third Quarter 2024 Earnings Release October 22, 2024
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 includes “forward- looking statements” wit
Slide 3: Chairman's Remarks
Chairman’s Remarks October 22, 2024
Slide 4: Matador Officers and Directors Have Been Buyers!
SLIDE A Matador Officers and Directors Have Been Buyers! Over the last 12 months, Matador Form 4 Officers and Directors have had 23 open market purchases for a combined ~$1,400,000 of MTDR shares and zero sales!(1) “Corporate insiders have been reluctant “Followers of insider sentiment believe to sn
Slide 5: Putting Our Money Where Our Mouth Is
SLIDE B “Putting Our Money Where Our Mouth Is” Number of Net Shares Bought & Sold by Management (2021 to 2024)(1) MTDR CIVI VTLE APA OVV SM FANG CTRA PR 200,000 50,000 0 (200,000) Number of Net Shares (400,000) (600,000) (800,000) (1,000,000) (1,200,000) (10,400,000) (1,400,000) Buys / Sells 27 / 0
Slide 6: The Delaware Basin: Best Basin in the United States
SLIDE C The Delaware Basin: Best Basin in the United States Delaware Basin Delaware • 2x to 10x total resource compared to other basins • ~1.5x thicker than sum of five basins shown below • Liquid-rich basin with excellent pressure and associated natural gas production Brushy Canyon Matador’s Delawa
Slide 7: Matador's Steady Growth Focused in the Delaware Basin
SLIDE D Matador’s Steady Growth Focused in the Delaware Basin Category 2023(1) Today(2) Acreage ~150,800 ~196,200 +30% (net) Locations 1,468 1,998 +36% (net) Reserves 455 602 +32% (MMBOE) Production 135,096 198,000 +47% (BOE/d) Midstream ~525 ~745 +42% (miles) Dividend $0.60 $1.00 +67% (per year) (1
Slide 8: Matador's Acquisition of Ameredev
SLIDE E Matador’s Acquisition of Ameredev ACQUISITION DETAILS Ameredev Acquisition Overview TWIN LAKES Price: $1.832 billion(1) Strategic bolt-on in the Northern Delaware Basin Effective Date: 6/1/2024 33,500 contiguous net acres 82% Held-by-Production Closed: 9/18/2024 ~19% stake in P
Slide 9: Production Increasing and Costs Decreasing
SLIDE F Production Increasing and Costs Decreasing PRODUCTION D&C CAPEX PER FOOT UP DOWN 180,000 $1,020 Drilling and Completion Capital Expenditures $1,010 Per Completed Lateral Length(1), $/ft Barrels of Oil Equivalent (BOE/d) 171,480 $1,000 170,000 $980 160,305 160,000 $960 $960 149,760 $940 150,0
Slide 10: Increasing Capital and Operational Efficiencies in 2024
SLIDE G Increasing Capital and Operational Efficiencies in 2024 Simul- Frac/Trimul- U-Turn Wells Frac Trimul-Frac: $350,000 savings per well(1) $3 million in savings per U-Turn well(2) >$135 million saved since 2022 Reducing MTDR operated wells, 2+ miles Drilling and Completion Days MAXCOM Days on W
Slide 11: Superior Profit Margins: Matador Leads the Industry
SLIDE H Superior Profit Margins: Matador Leads the Industry $55.00 High Revenue per BOE High Revenue per BOE Low Profit per BOE High Profit per BOE MTDR Peer 2 $52.50 Peer 1 Peer 12 $50.00 Peer 5 Revenue per BOE Peer 3 Peer 11 $47.50 Low Revenue per BOE Low Revenue per BOE Low Profit per BOE High Pr
Slide 12: Midstream Providing Strong Value!
SLIDE I Midstream Providing Strong Value! Midstream Value Flow Assurance Economic Benefit Plant Uptime Over 99% Cash Flow $650 Million to Date Operational 55% of Matador Growing $1.5 Billion in Assets Synergy Produced Gas Value 38% of Gas Close Customer Leads to Efficiencies Volumes from Third Coord
Slide 13: Record Midstream Volumes
SLIDE J Record Midstream Volumes Pronto Marlan Plant RECORD! Water handling of 513,000 Bbl/d in Q3 2024 RECORD! San Mateo and Pronto plants reached 100% of designed inlet capacity in Q3 2024(1) RECORD! San Mateo Adj. EBITDA of $68.5 million in Q3 2024(2) (1) San Mateo’s Black River Processing Plant
Slide 14: MTDR $750 Million 6.25% Senior Notes Due 2033
SLIDE K MTDR $750 Million 6.25% Senior Notes Due 2033 Debt neutral transaction >3x over subscribed Order book included 100+ leading fixed income investors $750,000,000 6.250% Senior Notes Offering October 2024 Lead Book-Running Manager “6.25% coupon is the lowest for any >8 year Upstream High
Slide 15: Increasing Fixed Dividend
SLIDE L Increasing Fixed Dividend Sustainable Returning Value to Steadily Increasing Five Times in Four Years Strong, Simple Balance Sheet Shareholders Leverage Ratio of 1.3x(1) ~$230 Million Since 2021(2) Annualized Dividend $1.00 $0.10 Q1 2021 Q4 2024 (1) Defined as Net Debt / LTM Adjusted EBITDA
Slide 16: 200,000+ BOE/d in 2025
SLIDE M 200,000+ BOE/d in 2025 Barrels of Oil Equivalent per day (BOE/d) 200,000 + 170,000 161,000 131,813 (2) 2023 2024 July 2024 October 2025 (1) (2) Guidance Guidance (1) As of and as provided on July 23, 2024. 16 (2) As of and as provided on October 22, 2024.
Slide 17: Why Matador?
SLIDE N Why Matador? • 196,000+ net acres in the Delaware Basin ROCK • 10-15 years of inventory(1) • Highest Oil Percentage among peer group • Flow assurance for Matador and third parties MIDSTREAM • 745 miles of three-stream pipelines in the Delaware Basin • 520 MMcf/d gas processing capacity • Ove
Slide 18: Dallas Morning News Top DFW Public Companies
Total 2023 Profit ($ in billions) $0 $2 $4 $6 $8 $10 $12 $14 $16 AT&T Caterpillar Texas Instruments Energy Transfer Charles Schwab Source: The Dallas Morning News, August 18, 2024. DR Horton McKesson Celanese HF Sinclair Kimberly-Clark Builder FirstSource Vistra Tenet Healthcare Copart CBRE Globe Li
Slide 19: Delivering Shareholder Value
SLIDE P Delivering Shareholder Value $11+ Billion 10-15 Years Asset Value from $6 Million Inventory with average (1) (2) of invested capital in 2003 returns greater than 50% $1.00/Share $250 Million Fixed dividend increased five EBITDA from San Mateo times in four years (3) ($1.5+ billion in midstre
Slide 20: Appendix
ay, ¢ Matador =a RESOURCES COMPANY ti Appendix MIDR October 22, 2024
Slide 21: Matador Resources Company Overview
Matador Resources Company Overview Market Snapshot NYSE Symbol MTDR Market Capitalization(1) $6.3 billion Avg. Daily Production – Q3 2024 171.5 MBOE/d Net Debt / LTM Adj. EBITDA(2)(3) – Q3 2024 ~1.3x DELAWARE BASIN HAYNESVILLE/ 196,200 net acres COTTON VALLEY Adj. Free Cash Flow(2) – Q3 2024 $196.1
Slide 22: Matador Resources Company – Company Highlights
Matador Resources Company – Company Highlights DELAWARE BASIN 196,200 Net Acres Core Delaware Basin E&P Assets Large Multi-Year Drilling Inventory TWIN LAKES Top 10 Producer in New Mexico Largest Public E&P Company in Dallas RANGER ARROWHEAD Profitable Midstream Business ANTELOPE RIDGE Providing Flo
Slide 23: Core Delaware Basin Net Acreage and Inventory Growth
Core Delaware Basin Net Acreage and Inventory Growth Average Production: 3,317 Bbl/d 21,510 Bbl/d 100,315 Bbl/d 2012 2017 September 30, 2024(1) ~7,500 Net Acres ~114,000 Net Acres ~196,200 Net Acres Inventory: 39 Gross / 25 Net 4,630 Gross / 1,958 Net 5,038 Gross / 1,998 Net(2) Average Lateral: 4,50
Slide 24: Delivering Strong Well Results All Around the Delaware Basin!
Delivering Strong Well Results All Around the Delaware Basin! Drew Dix DELAWARE BASIN 1st Bone Spring Sand #114H 24-hr IP: 2,380 BOE/d (77% oil) 196,200 Net Acres Twin Lakes Kathy Kregor 1st Bone Spring Sand #114H 24-hr IP: 2,590 BOE/d (83% oil) A Scott King 2nd Bone Spring Sand, 3rd Bone Spring Car
Slide 25: Delaware Basin Horizontal Well Location Inventory
Delaware Basin Horizontal Well Location Inventory • Matador has identified up to 4,640 gross (1,627 net) remaining potential locations(1) for future drilling on its Delaware Basin acreage Almost all intervals assume 160-acre well spacing (none less than 100-acre spacing at same true vertical depth
Slide 26: Horizontal Wells Completed and Turned to Sales – Q3 2024
Horizontal Wells Completed and Turned to Sales – Q3 2024 During the third quarter of 2024, Matador turned to sales a total of 51 gross (29.1 net) horizontal wells across its various operating areas. This total was comprised of 32 gross (27.0 net) operated horizontal wells and 19 gross (2.1 net) no
Slide 27: Peer Leading Productivity
Peer Leading Productivity Ameredev Acquisition Enhances MTDR’s Peer Leading Estimated Ultimate Recoveries (EURs) for Wells Turned to Production Since 2020 + Average Oil EUR (MBbl) Pro Forma(1) AMEREDEV MTDR MTDR Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 II + AMEREDEV PRO FORMA Source:
Slide 28: Hedging Profile – 2024 and 2025
Hedging Profile – 2024 and 2025(1) WTI Oil Collars Waha-Henry Hub Differential Swaps ~40% hedged for Q4 2024 5,000 5,000 4,500 4,500 4,140 4,095 4,050 4,000 4,000 Gas Volume Hedged (BBtu) Oil Volume Hedged (MBbl) 3,500 3,500 3,000 3,000 2,760 2,700 2,730 2,760 2,760 2,500 2,500 $86 $86 $86 2,000 4,1
Slide 29: Q3 2024 Guidance vs. Q3 2024 Actuals
Q3 2024 Guidance(1) vs. Q3 2024 Actuals Oil, natural gas and total production were all better than expected Ameredev properties added ~4,500 BOE/d (65% oil) after Ameredev acquisition closed on September 18, 2024 Better-than-expected performance from new wells Continued strong performance fr
Slide 30: Record Setting MAXCOM Results
Record Setting MAXCOM Results Over 6 Years of Operation 306 Matador Drilling Records and $49 Million Estimated Savings To Date Delaware Drilling Records Spud to Total Depth – 2 Mile Lateral: 8.3 Days Spud to Total Depth – 2.5 Mile Lateral: 14.0 Days Spud to Total Depth – 3 Mile Lateral: 27.4 D
Slide 31: San Mateo – Synergistic Midstream Assets Continue to Add Value
an Mate and – Synergistic Midstream Assets Continue to Add Value to Matador ~745 miles of three-stream pipelines(1) Gathering Assets ~745 miles of three-stream Ranger pipelines(2) Stebbins Gas Processing Capacity 520 MMcf per day(3) Salt Water Disposal Capacity 16 commercial salt water disposal well
Slide 32: San Mateo Record Results in Q3 2024
San Mateo Record Results in Q3 2024 San Mateo Average Natural Gas Gathering San Mateo Average Natural Gas Processing (MMcf/d) (MMcf/d) Record Quarter! Record Quarter! 450 424 450 425 431 413 416 399 393 400 385 400 355 350 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 3Q23 4Q23 1Q24 2Q24
Slide 33: San Mateo Growth Continues in 2024
San Mateo Growth Continues in 2024 Matador has received $76 million in distributions from San Mateo in 2024 $250 $250 Natural Gas $232.5 Oil $225 Water San Mateo's Adjusted EBITDA ($ in millions)(1) $198 $200 $200 Natural Gas $154 $150 $113 Oil $96 $100 $62 Water $50 $31 $12 $0 2016 2017 2018 2019 2
Slide 34: An Example of Flow Assurance: Dagger Lake South Wells
An Example of Flow Assurance: Dagger Lake South Wells 1 Gas from Dagger Lake South wells delivered to Pronto’s Marlan Plant Marlan Plant 3 2 2 Marlan Plant was already operating near full 1 capacity Dagger Lake South Pronto able to redeliver Matador volumes to San 3 Mateo’s Black River Plant that wo
Slide 35: Full Year 2024 Guidance
Full Year 2024 Guidance October 22, 2024
Slide 36: 2024 Guidance (As Updated on October 22, 2024)
2024 Guidance (As Updated on October 22, 2024) Actual July 23, 2024 %YoY October 22, 2024 %YoY Guidance Metric 2023 Results 2024 Guidance Range Change(1) 2024 Guidance Range Change(1) Total Oil Production 75,457 Bbl/d 93,500 to 96,500 Bbl/d + 23% 98,500 to 101,500 Bbl/d + 33% Total Natural Gas Produ
Slide 37: 2024 Capital Investment Plan Summary
2024 Capital Investment Plan Summary(1) (As Updated on October 22, 2024) Full Year 2024E CapEx(2)(3) – $1.475 billion – Midpoint 2024E Wells Turned to Sales 2024 Guidance Gross Net Drilling, Completing, Equipping(2) $1.15 to $1.35 billion Operated 124 101.9 Operated D/C/E $1.025 to $1.205 billion No
Slide 38: Q4 2024 Guidance
Q4 2024 Guidance(1) Guidance Metric Q3 2024 Actuals Q4 2024 Guidance Range Oil Production 100,315 Bbl/d 118,500 to 119,500 Bbl/d +19% Natural Gas Production 427.0 MMcf/d 472.0 to 476.0 MMcf/d +11% Oil Equivalent Production 171,480 BOE/d 197,000 to 199,000 BOE/d +15% D/C/E CapEx(2) $329.9 million $20
Slide 39: 2024E Operating Cost Estimates
2024E Operating Cost Estimates(1) ($/BOE) 2023 Q3 2024 Q4 2024E 2024E(1) 1 Production taxes, transportation and processing (“PTTP”) $5.50 $4.61 $5.25 to $5.75 $5.00 to $5.50 2 Lease operating (“LOE”) $5.06 $5.50 $5.75 to $6.25 $5.55 to $5.75 3 Plant and other midstream services operating (“POMS”) $2
Slide 40: Q3 2024 & Q4 2024E Commodity Price Differentials
Q3 2024 & Q4 2024E Commodity Price Differentials Q3 2024 Q4 2024E Actual Actual Realized Commodity Prices Benchmark(1) Differential Guidance(2) Realized Price Differential Oil Prices, per Bbl $75.67 $75.67 +$0.40 -$0.50 to +$0.50 Natural Gas Prices, per Mcf $2.23 $1.83 -$0.40 $-$0.50 to +$0.50 The
Slide 41: ESG Stewardship
ESG Stewardship October 22, 2024
Slide 42: Committed to Environmental, Social and Governance (ESG) Stewardship
Committed to Environmental, Social and Governance (ESG) Stewardship Matador is committed to increasing the value of its shares in a responsible manner. For more than 40 years working in the oilfields as independent oil and natural gas exploration, production and midstream companies, Matador and its
Slide 43: Committed to Environmental, Social and Governance (ESG) Stewardship
Committed to Environmental, Social and Governance (ESG)(1) Stewardship ENVIRONMENTAL Continued reduction of per-barrel High percentage of transportation on pipeline emissions(2) OPERATED PRODUCED OIL ON PIPE OPERATED PRODUCED WATER ON PIPE >55% >75% Reduction in E&P direct Reduction in E&P greenhous
Slide 44: 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 45: 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 and net cash provided by operating activities, respectively. (In thousands) 3Q 2023 4Q 202
Slide 46: Adjusted EBITDA Reconciliation – San Mateo (100%)
Adjusted EBITDA Reconciliation – San Mateo (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 operating activities, respectively, for San Mateo Midstream, LLC. (In thou
Slide 47: 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 operating activities, respectively, for San Mateo Midstream, LLC. Year Ended Decembe
Slide 48: 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 (In thousands) Sep
Slide 49: Adjusted Net Income and Adjusted Earnings Per Diluted Common Share
Adjusted Net Income and Adjusted Earnings Per Diluted Common Share This presentation includes the non-GAAP financial measures of adjusted net income and adjusted earnings per diluted common share. These non-GAAP items are measured as net income attributable to Matador Resources Company shareholders,
Slide 50: PV-10 Reconciliation
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 income. PV-10 is not an estimate of the fair market value of the Company'
Matador Resources Company — Q3 2024 Earnings Presentation on 6ix