Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (June 2012)
32 slides from Matador Resources's investor presentation, Jun 4, 2012
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation June 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 31, 2012 $10.05/share Market Capitalization as of May 31, 2012 $557.9 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 $270,000 in shareholders; diverse and unique shareholder contributed ca
Slide 6: A Year of Growth
A Year of Growth (1) (1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see slide 19 5
Slide 7: Financial Performance: Proven Management Team
Financial Performance: Proven Management Team Average Daily Production Oil and Natural Gas Revenues (MMcfe/d) ($ 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 2012 Anticipated Drilling 2012E CapEx Approximately 88% of 2012E Gross Wells Net Wells (in millions) capital budget focused on Total Total % Total % South Texas Eagle Ford (84%) and Eagle Ford 28.0 25.6 86.8% $257.2 8
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 2012E Capex (1) % Eagle Ford and focus to the Eagle Ford SFY 53.2 78% Approximately 90% of Eagle Ford MTDR 50.1 84% acreage is in the prospective oil NFX 45.1 N/A and
Slide 10: Eagle Ford and Austin Chalk Properties
Eagle Ford and Austin Chalk Properties EAGLE FORD ACREAGE TOTALS EAGLE FORD EAST 49,700 gross / 30,152 net acres Bexar 7,569 gross / 6,172 net acres San Antonio Lewton #1H Uvalde Medina Gonzales EOG OPERATED, MTDR WI ~21% 18,998 gross / 3,709 net acres Wilson Sickenius #1H GLASSCOCK (WINN) RANCH Ata
Slide 11: Eagle Ford Properties are in Good Neighborhoods
Eagle Ford Properties are in Good Neighborhoods Highlights KKR / HILCORP MTDR acreage in counties Anadarko Marathon Guadalupe June 2010 ~$10,000 / acre Bexar with robust transaction El Paso Carrizo Petrohawk/BHP Gonzales Pioneer activity – “good Chesapeake SM Energy MARATHON / PALOMA neighborhoods”
Slide 12: Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR Acreage
Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR Acreage San Antonio Multi-Pay Fairway with Eagle Ford, Pearsall, Austin Chalk and Buda potential OIL FAIRWAY Matador Resources Acreage DRY GAS FAIRWAY Note: All acreage as of May 31, 2012 11
Slide 13: South Texas Multi-Pay Petroleum Systems: Petroleum Charge focus towards Glasscock Ranch
South Texas Multi-Pay Petroleum Systems: Petroleum Charge focus towards Glasscock Ranch Redhawk Area Matador Resources Acreage Note: All acreage as of May 31, 2012 Oil and Gas Fields: Olmos/Navarro Austin Chalk Edwards Wilcox Buda Note: Information for Pearsall Oil Field sourced from public informat
Slide 14: Multi-Pay Fairway: Productive and Prospective Pay Zones
Multi-Pay Fairway: Productive and Prospective Pay Zones Navarro Historic Conventional Zones Olmos-Navarro – Gas and oil fields in shallow section Austin Olmos – Upper Austin horizontal drilling – Fractured reservoir Buda – Primarily productive on structure – Fractured reservoir ANCC Edwards – Produc
Slide 15: Hedging Profile
Hedging Profile Oil Hedges 2012 2013 Total Volume Hedged by Ceiling (Bbl) 1,180,000 1,260,000 Weighted Average Price ($ / 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 2012 Anticipated Drilling 2012E CapEx Approximately 88% of 2012E Gross Wells Net Wells (in millions) capital budget focused on Total Total % Total % Eagle Ford (84%) and South Texas Eagle Ford 28.0 25.6 86.8% $257.2 8
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
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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, Founder, Chairman and CEO 32 years Since Inception 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 Proved Reserves @ 3/31/12 6.8 MMBoe and Austin Chalk (including “Chalkleford”) % Proved Developed 46.6% Two rigs running, primarily focused on % Oil / Liquids 81.9% oil and liquids Daily Oil Pr
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% TignerWalker H#1 Alt (CV) Daily Production (1) 32.6 MMcfe/d LA Wildlife H#1 Alt. (HV) Gross Acres (2) 28,341 acres Williams 17 H#1 (HV) Net Acres (2) 25,070 acres Ha
Slide 26: Haynesville Positioning
Haynesville Positioning Highlights Approximately 12,500 gross and 5,800 net acres in Haynesville Tier 1 core area Almost all Tier 1 core acreage is HBP, as is approximately 95% of all prospective Haynesville acreage – provides “natural gas bank” for future development Tigner Walker H#1 Alt (CV) MTDR
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 95% 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) 110,595 acres Net Acres (1)(2) 104,143 acres 2012E CapEx Budget $2.5 million Initial test well drilled and cored through the Meade Peak shale Detailed petrophysical and roc
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
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