Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (May 2012)
32 slides from Matador Resources's investor presentation, May 15, 2012
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation May 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 1933, as amended, and S
Slide 3: Company Overview
Company Overview Completed IPO of 14,883,334 shares (12,209,167 primary) including overallotment at $12.00/share in March 2012 Exchange: Ticker NYSE: MTDR Shares Outstanding 55.51 million common shares Share Price as of May 11, 2012 $10.62/share Market Capitalization as of May 11, 2012 $589.5 millio
Slide 4: Matador Oil Facts
Matador Oil Facts 94% of 2012E capital expenditure program focused on oil and liquids exploration and development in south Texas First quarter 2012 oil production of approximately 200,000 barrels is more than all oil produced in 2011 and 2010 combined Anticipate oil production to constitute 35% to 4
Slide 5: Matador History
Matador History Predecessor Entities Matador Today Foran Oil & Matador Petroleum Matador Resources Company Founded by Joe Foran in 1983 Founded by Joe Foran in 2003 Attracted start-up capital from long-time Foran Oil funded with $270,000 in shareholders; diverse and unique shareholder contributed ca
Slide 6: A Year of Growth
A Year of Growth (1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see slide 19 5
Slide 7: Financial Performance: Proven Management Team
Financial Performance: Proven Management Team Average Daily Production Oil and Natural Gas Revenues (MMcfe/d) ($ in mm) 50.0 48.1 $30.0 $29.2 45.0 37.8 $25.0 40.0 35.0 $20.0 30.0 25.0 $15.0 $13.7 20.5 20.0 $9.2 $10.0 15.0 10.0 $5.0 5.0 0.0 $0.0 1Q10 1Q11 1Q12 1Q10 1Q11 1Q12 Adjusted EBITDA (1) Total
Slide 8: Strong Growth Profile Focused on Liquids
Strong Growth Profile Focused on Liquids Commentary Liquids Focused CapEx in 2012E Approximately 88% of 2012E capital budget focused on Eagle Ford (84%) and Austin Chalk (4%) Oil production up over ten-fold year-over-year at March 31, 2012 Oil production expected to increase nearly 10x in 2012 All 2
Slide 9: Leading Eagle Ford Exposure
Leading Eagle Ford Exposure Leverage to Eagle Ford (Net Eagle Ford Acres / EV) (Net Acres / $mm) Matador offers significant leverage and focus to the Eagle Ford Approximately 85% of Eagle Ford acreage is in the prospective oil and liquids window All 2012E Eagle Ford drilling focused in the prospecti
Slide 10: Eagle Ford and Austin Chalk Properties
Eagle Ford and Austin Chalk Properties EAGLE FORD EAST 22,179 gross / 4,372 net acres 8,891 gross / 8,891 net acres 13,329 gross / 10,465 net acres Note: All acreage values are as of December 31, 2011 9
Slide 11: Eagle Ford Properties are in Good Neighborhoods
Eagle Ford Properties are in Good Neighborhoods: Highlights MTDR acreage in counties with robust transaction activity – “good neighborhoods” Transaction values ranging from $10,000 to $25,000 / acre Our Eagle Ford position has grown to almost 30,000 net acres Acreage in both the eastern and western
Slide 12: Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR Acreage
Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR Acreage 11
Slide 13: South Texas Multi-Pay Petroleum Systems
South Texas Multi-Pay Petroleum Systems: Petroleum Charge focus towards Glasscock Ranch Note: Information for Pearsall Oil Field sourced from public information 12
Slide 14: Multi-Pay Fairway: Productive and Prospective Pay Zones
Multi-Pay Fairway: Productive and Prospective Pay Zones Navarro Historic Conventional Zones Olmos-Navarro – Gas and oil fields in shallow section Olmos Austin – Upper Austin horizontal drilling – Fractured reservoir Buda – Primarily productive on structure ANCC – Fractured reservoir Austin Chalk Edw
Slide 15: Hedging Profile
Hedging Profile Oil Hedges 2012 2013 Total Volume Hedged by Ceiling (Bbl) 1,180,000 1,260,000 Weighted Average Price ($ / Bbl) $109.84 $110.26 Total Volume Hedged by Floor (Bbl) 1,180,000 1,260,000 Weighted Average Price ($ / Bbl) $90.51 $87.14 Natural Gas Hedges 2012 2013 Total Volume Hedged by Cei
Slide 16: Financial Flexibility
Financial Flexibility Plan to fund 2012 capital budget with a portion of IPO net proceeds, anticipated cash flows from operations and available borrowings under credit facility Intend to seek redeterminations of borrowing base as a result of any increases in oil and natural gas proved reserves durin
Slide 17: Strong Growth Profile Focused on Liquids
Strong Growth Profile Focused on Liquids Commentary Liquids Focused CapEx in 2012E Approximately 88% of 2012E capital budget focused on Eagle Ford (84%) and Austin Chalk (4%) Oil production up over ten-fold year-over-year at March 31, 2012 Oil production expected to increase nearly 10x in 2012 All 2
Slide 18: Investment Highlights
Investment Highlights Strong Growth Profile with Increasing Focus on Oil / Liquids High Quality Asset Base in Attractive Areas Significant Multi-year Drilling Inventory Strong Financial Position and Long-Term Institutional, Industry and Individual Shareholders Proven Management and Technical Team an
Slide 19: Appendix
oN, ¢ Matador {We (eae TSCUREES Conran Appendix
Slide 20: 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. Year Ended December 31, Three Months Ended March 31, (
Slide 21: Board of Directors and Special Board Advisors – Expertise and Stewardship
Board of Directors and Special Board Advisors –Expertise and Stewardship Board Members Professional Experience Business Expertise and Advisors Charles L. Gummer Director - Former Chairman, President and CEO, Comerica Bank –Texas Banking - Professor and Former Head of the Department of Petroleum Dr.
Slide 22: Proven Management Team – Experienced Leadership
Proven Management Team – Experienced Leadership Industry Matador Management Team Background and Prior Affiliations Experience Experience Joseph Wm. Foran - Matador Petroleum Corporation, Foran Oil Company, 31 years Since Inception Founder, Chairman and CEO J Cleo Thompson Jr. and Thompson Petroleum
Slide 23: Matador Resources Snapshot
Matador Resources Snapshot Daily Production(1) 48.1 MMcfe/d Oil Production (% total) 2,200 Bbl/d (27%) Proved Reserves @ 3/31/12 203.1 Bcfe % Proved Developed 36% % Oil 17% (and growing) 2012E CapEx $313 million % Eagle Ford 84% % Oil and Liquids 94% 2012E Anticipated Drilling 29.5 net wells Eagle F
Slide 24: Eagle Ford and Austin Chalk Overview
Eagle Ford and Austin Chalk Overview Acreage positioned in some of the most active counties for Eagle Ford and Austin Proved Reserves @ 3/31/12 6.8 MMBoe Chalk (including “Chalkleford”) % Proved Developed 46.6% Two rigs running, primarily focused on oil and liquids % Oil / Liquids 81.9% 94%(5) of 20
Slide 25: Northwest Louisiana / East Texas Properties Overview
Northwest Louisiana / East Texas Properties Overview Proved Reserves @ 3/31/12 161.4 Bcfe % Proved Developed 36.4% % Natural Gas 99.8% Daily Production (1) 32.6 MMcfe/d Gross Acres (2) 28,899 acres Net Acres(2) 25,339 acres Haynesville (2)(3) 14,527 acres Cotton Valley (2)(3) 23,054 acres Identified
Slide 26: Haynesville Positioning
Haynesville Positioning Highlights Approximately 12,000 gross and 5,500 net acres in Haynesville Tier 1 core area Almost all Tier 1 core acreage is HBP, as is over 90% of all prospective Haynesville acreage – provides “natural gas bank” for future development MTDR active as both operator and non-ope
Slide 27: Business Strategy to Deliver Growth and Value
Business Strategy to Deliver Growth and Value Exploration and Development Dedicating approximately 94%(1) of 2012E CapEx to oil and liquids opportunities Approximately 80% of Eagle Ford and approximately 90% of Haynesville acreage either HBP or not burdened by near-term lease expirations Balanced Po
Slide 28: Option Value in Large Unevaluated Acreage Positions
Option Value in Large Unevaluated Acreage Positions Wyoming, Utah and Idaho (Meade Peak Shale) Matador Today Gross Acres(1)(2) 144,368 acres Net Acres(1)(2) 135,862 acres 2012E CapEx Budget $2.5 million Initial test well drilled and cored through the Meade Peak shale Detailed petrophysical and rock
Slide 29: Selected Historical Financials
Selected Historical Financials (Revenues and Adjusted EBITDA in millions) Year Ended December 31, Three Months Ended March 31, 2009 2010 2011 2011 2012 Production Summary Oil Production (MBbls) 30.0 33.0 154.0 19.0 200.0 Gas Production (Bcf) 4.8 8.4 14.5 3.3 3.2 Total Production (Bcfe) 5.0 8.6 15.4
Slide 30: Investment Highlights
Investment Highlights Strong Growth Profile with Increasing Focus on Oil / Liquids Oil production up almost five-fold in 2011 and projected to increase nearly ten-fold in 2012 94%(1) of 2012E capital expenditure program focused on oil and liquids exploration and development High Quality Asset Base i
Slide 31: Diversified Investor Composition
Diversified Investor Composition Given management’s significant equity position, interests are well aligned with public shareholders Unique and diverse investor base includes institutional and industry shareholders with significant experience investing in the oil and gas sector Most initial capital
Slide 32: Matador Resources Company ("MTDR")
Matador Resources Company (“MTDR”) 31