Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (March 2012)
25 slides from Matador Resources's investor presentation, Mar 8, 2012
Slide 1: Investor Presentation
Exhibit 99.2 Investor Presentation March 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 shares) including overallotment at $12.00 per share in March 2012 Exchange: Ticker NYSE: MTDR Shares Outstanding[1] 55.27 million common shares Share Price[1] $11.14/share Market Capitalization[1] $615.7 million [1] As of March
Slide 4: 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 5: 2012 Guidance Summary
2012 Guidance Summary 2012 Estimated Capital Spending $313 million 2012 Estimated Total Oil Production 1.4 to 1.5 million barrels 2012 Estimated Exit Rate for Oil Production 5,000 to 5,500 barrels per day 2012 Estimated Total Natural Gas Production 12.5 to 13.5 billion cubic feet 4
Slide 6: Matador Resources Snapshot
Matador Resources Snapshot Daily Production(1) 53.2 MMcfe/d % Oil 20% Proved Reserves @ 9/30/11 161.8 Bcfe % Proved Developed 35% % Oil 4% (and growing) 2012E CapEx $313 million % Eagle Ford 84% % Oil and Liquids 94% 2012E Anticipated Drilling 29.5 net wells Eagle Ford / Austin Chalk 27.6 net wells
Slide 7: Investment Highlights
Investment Highlights Strong Growth Profile with Increasing Focus on Oil / Liquids Total Production CAGR (1) of 75.9% since 2008 and oil / liquids production CAGR of 113.4% since Q1 ‘10 94%(2) of 2012E capital expenditure program focused on oil / liquids exploration and development High Quality Asse
Slide 8: Leading Eagle Ford Exposure
Leading Eagle Ford Exposure Leverage to Eagle Ford (Net Eagle Ford Acres / EV) (Net Acres / $mm) Matador offers significant leverage 2012E Capex % Eagle Ford and focus to the Eagle Ford MTDR 48.3 84% Approximately 85% of Eagle Ford 78% SFY 45.3 acreage is in the prospective oil and N/A liquids windo
Slide 9: Eagle Ford Properties are Well Positioned
Eagle Ford Properties are Well Positioned Highlights MTDR acreage in counties with MITSUI / SM ENERGY robust transaction activity – June 2011 $18,846 / acre MARATHON / HILCORP “good neighborhoods” HUNT / MARUBENI June 2011 $24,823 / acre KKR / HILCORP January 2012 June 2010 CNOOC / CHESAPEAKE +$20,0
Slide 10: Eagle Ford Well Performance
Eagle Ford Well Performance Highlights PETROHAWK – IP rates and early performance CHESAPEAKE – TRAYLOR NORTH 2H HUNT OIL – WARNKEN 1H HUNT OIL – MOCZYGEMBA 1H ULRICH B 1H OIL IP: 405 Bbls/d OIL IP: 454 Bbls/d OIL IP: 199 Bbls/d OIL IP: 993 Bbls/d strong in our acreage GAS IP: 78 Mcf/d GAS IP: 82 Mcf
Slide 11: Eagle Ford and Austin Chalk Properties Overview
Eagle Ford and Austin Chalk Properties Overview EAGLE FORD ACREAGE TOTALS 52,053 gross / 28,906 net acres EAGLE FORD EAST 6,270 gross / 4,874 net acres Proved Reserves @ 9/30/11 1.4 MMBoe Lewton #1H EOG OPERATED, MTDR WI = 21% % Proved Developed 51.0% 23,420 gross / 4,631 net acres % Oil / Liquids 6
Slide 12: Northwest Louisiana / East Texas Properties Overview
Northwest Louisiana / East Texas Properties Overview Proved Reserves @ 9/30/11 152.7 Bcfe % Proved Developed 33.3% % Natural Gas 99.7% Daily Production (1) 39.1 MMcfe/d Gross Acres 29,128 acres Net Acres 25,477 acres Haynesville (2) 14,705 acres Note: Matador operates two sections, including the LA
Slide 13: Haynesville Positioning
Haynesville Positioning Highlights Approximately 12,000 gross and 5,500 net acres in Haynesville Tier 1 core area Almost all Tier 1 core acreage is HBP, as is over 90% of all prospective Haynesville acreage – provides “natural gas bank” for Tigner Walker H#1 Alt (CV) future development LA Wildlife H
Slide 14: Strong Growth Profile Focused on Liquids
Strong Growth Profile Focused on Liquids Commentary Liquids Focused CapEx in 2012E ($mm) Approximately 90% of 2012E 2012E Anticipated Drilling 2012E CapEx capital budget focused on Gross Wells % Total Net Wells % Total ($ in mm) % Total South Texas Eagle Ford (84%) and 30.0 53.6% 27.6 93.6% $268.5 8
Slide 15: 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 16: Matador Resources Company - Management
Matador Resources Company - Management Industry Matador Management Team Background and Prior Affiliations Experience Experience Joseph Wm. Foran - Matador Petroleum Corporation, Foran Oil Company, Founder, Chairman and CEO 31 years Since Inception J Cleo Thompson Jr. and Thompson Petroleum Corp. Dav
Slide 17: Board of Directors and Special Board Advisors
Board of Directors and Special Board Advisors 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. Stephen A. Holditch Enginee
Slide 18: 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 19: 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 144,368 acres Net Acres 135,862 acres 2012E CapEx Budget $2.5 million Initial test well drilled to 8,200 feet and cored through the Meade Peak shale Detailed petrophysical and roc
Slide 20: Financial Performance
Financial Performance Average Daily Production Revenue (MMcfe/d) ($ in mm) 50.0 $80.0 CAGR: 75.9% 42.5 $57.8 37.5 $60.0 $42.5 23.6 25.0 22.0 $40.0 $34.0 $32.9 13.7 $24.3 12.5 9.0 $20.0 0.0 $0.0 FY 2008 FY 2009 FY 2010 09/30/10 09/30/11 FY 2008 FY 2009 FY 2010 09/30/10 09/30/11 (1) Adjusted EBITDA Ca
Slide 21: Selected Historical Financials
Selected Historical Financials ($ in millions) Year Ended December 31, Nine Months Ended September 30, 2008 2009 2010 2010 2011 Production Summary Oil Production (MBbls) 37.0 30.0 33.0 24.0 113.0 Gas Production (Bcf) 3.1 4.8 8.4 5.9 10.9 Total Annual Production (Bcfe) 3.3 5.0 8.6 6.0 11.6 Realized P
Slide 22: 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 23: Liquidity
Liquidity No debt outstanding as of February 2012 IPO net proceeds used to repay $123.0 million outstanding under the Company’s revolving credit facility Borrowing base of $125 million, based on February 2012 redetermination Plan to fund 2012 capital budget with remaining IPO net proceeds, anticipat
Slide 24: 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, Nine Months Ended September 30
Slide 25: 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
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