Slide 1: March 2016 Investor Presentation
March 2016 Investor Presentation NYSE: MTDR Exhibit 99.1
Slide 2: Disclosure Statements
2 Disclosure Statements Safe Harbor Statement – 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 19
Slide 3: Company Summary
merry aie 4 Matador J 4 cm dy A RESOURCES COMPANY a : ; Company Summary
Slide 4: Company history and growth through the drill bit
2012, 2013 and 2014 capital spending focused primarily on developing Eagle Ford and transitioning to oil February 2012 IPO at $12.00; net cash proceeds of ~$136 million May 2014 Follow-on Offering at $25.00; net cash proceeds of ~$181 million September 2013 Follow-on Offering at $15.25; net cash pro
Slide 5: Company Overview
5 Company Overview Exchange: Ticker NYSE: MTDR Shares Outstanding(1) 93.3 million common shares Share Price(1) $20.43/share Market Capitalization(1) ~$1.9 billion Actual Actual % YoY 2014 Results 2015 Results 2016 Guidance Change Capital Spending $610 million $482 million(2) $325 million - 33% Total
Slide 6: Matador Resources Company – Operations Overview
Matador Resources Company – Operations Overview Market Capitalization(1) ~$1.9 billion Avg Daily Production – YE 2015(2) 24,955 BOE/d Oil (% total) 12,306 Bbl/d (49%) Natural Gas (% total) 75.9 MMcf/d (51%) Proved Reserves @ 12/31/2015 85.1 million BOE % Proved Developed 40% % Oil 54% 2016E CapEx(3)
Slide 7: Matador Has Made Tremendous Progress Since its IPO
Matador Has Made Tremendous Progress Since its IPO At IPO(1): February 7, 2012 Today(2) Difference Oil Production 414 Bbl/d (6% oil) 11,547 Bbl/d (49% oil) Proved Reserves 27 MMBOE (4% oil) 85 MMBOE (54% oil) Proved Oil Reserves 1.1 MMBbl 45.6 MMBbl Delaware Acreage ~7,500 net acres ~89,000 net acre
Slide 8: Record Oil, Natural Gas and Total Production in 2015
7.0 9.0 11.7 16.1 25.0 2011 2012 2013 2014 2015 39.8 34.1 35.4 41.9 75.9 2011 2012 2013 2014 2015 422 3,317 5,843 9,095 12,306 2011 2012 3 2014 2015 Average Daily Oil Production (Bbl/d) Average Daily Natural Gas Production (MMcf/d) Average Daily Total Production (MBOE/d) Oil Production Mix (% of Ave
Slide 9: Matador's Proved Reserves and PV-10: 2013 – 2015
9 Matador’s Proved Reserves and PV-10(1): 2013 – 2015 Eagle Ford $540.4 million, 82% Haynesville/CV $82.9 million, 13% Delaware Basin $31.9 million, 5% YE 2013 51.7 million BOE 16.4 million Bbl oil (32% oil) PV-10(1): $655.2 million $93.42 oil / $3.67 gas 68.7 million BOE 24.2 million Bbl oil (35% o
Slide 10: Committed to Maintaining Strong Balance Sheet
0.0x 0.0x 0.1x 1.5x 0.2x 0.7x 1.1x 1.3x 1.5x 1.6x 0.8x 1.0x 1.2x 0.6x 1.0x 1.3x 1.6x 1.4x 1.6x 1.5x 0.9x 2008 2009 2010 2011 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 Today Net Debt / LTM EBITDA $76 $240 $256 $416 $340 $199 In it ia l P u b lic O ff e ri n g P
Slide 11: Delaware Basin Southeast New Mexico and West Texas
Delaware Basin Southeast New Mexico and West Texas
Slide 12: Delaware Basin Acreage Position and Recent Test Results
Delaware Basin Acreage Position and Recent Test Results 12 L E A LOVING WARD Matador Resources Acreage TWIN LAKES ~42,300 gross / ~29,900 net acres WOLF / LOVING AREA ~12,200 gross / ~7,500 net acres Jackson Trust RANGER ~32,400 gross / ~19,400 net acres ARROWHEAD ~47,400 gross / ~16,900 net acres E
Slide 13: Understanding the Opportunities
Understanding the Opportunities 3rd Bone Spring L. Avalon 800’ Most current unconventional plays target one or two zones across a trend area. The Delaware Basin has over a dozen unique targets between the top of the Brushy Canyon and the Woodford. All logs plotted at same scale Delaware Basin Wolfca
Slide 14: Delaware Basin Inventory Continues to Increase
Delaware Basin Inventory Continues to Increase Matador has identified up to 3,543 gross (1,417 net) potential locations(1) for future drilling on its Delaware Basin acreage Only 118 gross (71.1 net) locations are PUD locations at December 31, 2015 Matador anticipates operating up to 2,263 gros
Slide 15: Improved Wolfcamp Drilling Times Significantly in 2015
Improved Wolfcamp Drilling Times Significantly in 2015 15 43 32 35 26 18 15 0 5 10 15 20 25 30 35 40 45 50 Dril ling Da y s 2014 Average 2015 Planned 2015 Best Well Note: Best wells are Johnson 44-02S-B53 #206H in Loving County (Wolfcamp) and Tiger 14-24S-28E RB #204H in Eddy County (Wolfcamp). Lovi
Slide 16: 2015 Wolf Area Drilling Cost Improvements
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 H2 2014 Rigs Labor/ Supply Rentals Directional Fluids Casing/ Cement YE 2015 20% 9% 8% 6% 3% 24% 10% 22% 19% 12% 12% 17% 16 2015 Wolf Area Drilling Cost Improvements $7.4 $3.6 Drilli n g C o s ts, m illi o n s Rigs Labor/ Supply Rentals Directional Fluids
Slide 17: 2016 Anticipated Wolf Area Drilling Cost Improvements
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 H2 2014 YE 2015 YE 2016 51% Savings 17% Savings 2016 Anticipated Wolf Area Drilling Cost Improvements 17 Service Costs Service Costs Efficiencies Efficiencies $7.4 $3.6 $3.0 41% 59% 50% 50% Dri llin g Cos ts, milli o n s
Slide 18: 2015 Wolf Area Completion Cost Improvements
Stimulation Location Surface Rentals CTU Drillout Wireline $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 H2 2014 Stimulation Location Surface Rentals CTU/Drillout Wireline YE 2015 15% 12% 12% 9% 52% 18 2015 Wolf Area Completion Cost Improvements $4.6 $2.4 C o m p leti o n C o sts, milli o n s
Slide 19: 2016 Anticipated Wolf Area Completion Cost Improvements
$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 H2 2014 YE 2015 YE 2016E 2016 Anticipated Wolf Area Completion Cost Improvements 19 $4.6 Service Costs 83% Service Costs 83% 75% 25% Efficiencies Efficiencies $2.4 $1.8 C o m p leti o n C o sts, milli o n s More to come? 48% Savings 25% Savings 17% 75%
Slide 20: 2016 Anticipated Wolf Area Total Drilling and Completion Cost Improvements
$0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 H2 2014 YE 2015 YE 2016E 25% 2016 Anticipated Wolf Area Total Drilling and Completion Cost Improvements 20 $12.0 $6.0 $4.8 Drilli n g a n d C o m p le ti o n C o s ts, m illi o n s $100,000 Cost Reduction ROR Increase ~2% More to come? Service Costs Service Costs
Slide 21: Evolution of Permian Basin Frac Design – Reservoir Specific
21 7,500 bbl 8,400 bbl 500 Mlbs 375 ft. 75 ft. 210 ft. 35 ft. Gen 1 Gen 2 2,000 lbs/ft 1,333 lbs/ft 40 Bbl/ft 20 Bbl/ft 50’ cluster spacing 75’ cluster spacing 4 wells 6 wells Gen 1 Gen 2 Testing 2,000 lbs/ft 2,000 lbs/ft 3,000 lbs/ft 40 Bbl/ft 30 Bbl/ft 40 Bbl/ft 35’ cluster spacing 50’ cluster spa
Slide 22: Wolf Prospect Area – Continued Focus on Wolfcamp Development in 2016
22 Wolf Prospect Area – Continued Focus on Wolfcamp Development in 2016 Matador Acreage Wolfcamp A-X/Y 2nd Bone Spring Recently Added 2016 Focus Area Norton Schaub 84-TTT-B33 WF #201 Cumulative BOE: 360 MBOE EUR (BOE): ~1,000 MBOE Dorothy White #1H Cumulative BOE: 480 MBOE EUR (BOE): >1,000 MBOE 2
Slide 23: Wolf Inventory – Multi-Pay Development Potential
2nd Bone Spring Wolfcamp X/Y Wolf Inventory – Multi-Pay Development Potential ~660’ Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-X/Y Wolfcamp A Full Development Location 1 mile MRC Spacing Test Completed Full Development Spacing Pattern (Cross-Section View) 23 A-X/
Slide 24: Drilling Wells in Batch Mode / Central Production Facilities
Drilling Wells in Batch Mode / Central Production Facilities 24 Dick Jay / Barnett Development (Top-Down View) Dick Jay / Barnett Development (Cross-Section View) Dick Jay Pad Barnett Pad 2nd Bone Spring 3rd Bone Spring Wolfcamp A “Fat” Wolfcamp A-X/Y Dick Jay 124H Dick Jay 204H Dick Jay 203H Dick J
Slide 25: Wolf Area Wolfcamp A-X/Y Wells Continue Strong Performance
Wolf Area Wolfcamp A-X/Y Wells Continue Strong Performance Across Acreage 25 10 100 1,000 10,000 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 P roduction R a te, BO E /d Time, Days Dorothy White #1H Norton Schaub #201H Billy Burt #203H Johnson #204H Barnett #201H Dorothy White #1H has pr
Slide 26: Wolf – Estimated Returns by Formation
Wolf – Estimated Returns by Formation 26 Formation Development Well Cost(1)(2) (millions) EUR(3) (MBOE) % Oil 2nd Bone Spring $4.0 - $5.0 400 – 500 50 – 65% Wolfcamp A-X/Y $5.5 - $6.5 650 – 1,100 65 – 80% 0 50 100 150 200 $30 $35 $40 $45 $50 $55 $60 R OR % WTI Oil Price, $/Bbl Wolfcamp A-X/Y 1,000 M
Slide 27: Stacked Horizon Test at Jackson Trust
Stacked Horizon Test at Jackson Trust Jackson Trust C12-TTT-C24 #021H Preparing to install ESP(1) Jackson Trust C12-TTT-C24 #121H 24 hr. IP: 815 BOE/d (71% oil) Jackson Trust C12-TTT-C24 #211H 24 hr. IP: 702 BOE/d (82% oil) Jackson Trust C12-TTT-C24 #101H Improved significantly on ESP – Currently(1)
Slide 28: Rustler Breaks – Focus on Wolfcamp Development in 2016
Rustler Breaks – Focus on Wolfcamp Development in 2016 28 Wolfcamp A-X/Y Wolfcamp B Matador Acreage Dr K #203H 24 hr IP: 1,241 BOE/d (69% oil) Scott Walker #204H 24 hr IP: 504 BOE/d (70% oil) Rustler Breaks #224H 24 hr IP: 987 BOE/d (44% oil) Guitar #202H 24 hr IP: 1,274 BOE/d (79% oil) Tiger #224H
Slide 29: Rustler Breaks Inventory – Multi-Pay Development Potential
Rustler Breaks Inventory – Multi-Pay Development Potential Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-X/Y Wolfcamp B ~80 0 ’ 171 178 183 188 173 235 167 1,637 Full Development Location Total Gross Locations(4)(5) Formation Development Well Costs(1)(2) (millions)
Slide 30: Rustler Breaks – Wells Producing From Zones on Multi-Well Pad
Rustler Breaks – 5 Wells Producing From 3 Zones on Multi-Well Pad Bone Spring Lime Upper Avalon Shale Lower Avalon Shale First Bone Spring Sand Second Bone Spring Carbonate Third Bone Spring Carbonate Wolfcamp / Pennsylvanian Strawn Wolfcamp “C” Third Bone Spring Sand Gamma Ray INTER-Formational Sta
Slide 31: Rustler Breaks Well Cost Achievements
8.3 8.6 5.1 5.9 6.9 3.9 5.0 5.5 3.0 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Guitar #202H Tiger #224 Tiger #124H Tiger #204H Janie Conner #224 Janie Conner #124 Wolfcamp A 2016 Target Wolfcamp B 2016 Target 2nd Bone Springs 2016 Target C o m p le te d W el l C o st , $ m ill io n s 31 Rustler Breaks Well C
Slide 32: Rustler Breaks Wolfcamp B Wells Performing Above Expectations
Rustler Breaks Wolfcamp B Wells Performing Above Expectations 32 10 100 1,000 10,000 0 50 100 150 200 250 300 350 400 450 500 550 600 P roduction R a te, BO E /d Time, Days Rustler Breaks #224H Tiger #224H Janie Conner #224H Rustler Breaks 12-24S-27E #224H has produced 233 MBOE (41% oil) in 20 month
Slide 33: Rustler Breaks Wolfcamp A-X/Y Wells Performing Above Expectations
Rustler Breaks Wolfcamp A-X/Y Wells Performing Above Expectations 33 10 100 1,000 10,000 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 P roduction R a te, BO E /d Time, Days Guitar #202H Tiger #204H Scott Walker #204H Guitar 10-24S-28E RB #202H has produced 164 MBOE (78% oil) in 10 month
Slide 34: Rustler Breaks – Estimated Returns by Formation
0 40 80 120 160 30 35 40 45 50 R O R, % WTI Oil Price, $/Bbl Rustler Breaks - Wolfcamp A-X/Y (85% oil) 800 MBOE, $5.0 MM 800 MBOE, $6.0 MM 600 MBOE, $5.0 MM 600 MBOE, $6.0 MM 0 20 40 60 80 100 30 35 40 45 50 R O R, % WTI Oil Price, $/Bbl Rustler Breaks - Wolfcamp B (45% oil) 1,000 MBOE, $5.5 MM 1,00
Slide 35: Single Wolfcamp B Well at Rustler Breaks Holds Up To Potential Locations
Single Wolfcamp B Well at Rustler Breaks Holds Up To 15 Potential Locations 35 Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp B Wolfcamp A- X/Y One producing Wolfcamp B well holds 320 surface acres and up to 15 additional potential locations for future development 1/
Slide 36: Ranger/Arrowhead – Bone Spring and Wolfcamp Development in 2016
36 2nd Bone Spring 3rd Bone Spring Wolfcamp D Wolfcamp A Cimarron State RN #134H - IP: 804 BOE/d (94% oil) Matador Acreage Ranger/Arrowhead – Bone Spring and Wolfcamp Development in 2016 2015 Accomplishments Merged with HEYCO adding ~60,000 gross and ~20,000 net acres(1) 12 gross (4.5 net) wel
Slide 37: Ranger Inventory – Multi-Well Development Potential
Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil Bone Spring $4.5 – $6.0 400 – 700 90 – 95% Wolfcamp $6.5 – $8.0 200 – 800* 80 – 85% Ranger Inventory – Multi-Well Development Potential 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-D * Based on Volumetrics and 4-8% R
Slide 38: Arrowhead Inventory – Multi-Well Development Potential
Arrowhead Inventory – Multi-Well Development Potential 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp A-D Formation Development Well Costs(1)(2) (millions) EUR(3) (MBOE) % Oil Bone Spring $4.5 – $6.0 400 – 700 80 – 90% Wolfcamp $6.5 – $8.0 200 – 800* 80 – 85% * Based on Volumetrics and 4-8
Slide 39: Ranger Area Bone Spring Wells Continued Strong Performance
39 Ranger Area Bone Spring Wells Continued Strong Performance Note: Production as of January 2016. 700 MBOE Type Curve 400 MBOE Type Curve 10 100 1,000 10,000 0 100 200 300 400 500 600 700 Production R ate, BO E/ d Time, Days Ranger 33 #121H Ranger 33 #122H Pickard State #1H Cimarron State #134H Bon
Slide 40: Testing New Oil Shale Play in Twin Lakes Prospect
Testing New Oil Shale Play in Twin Lakes Prospect 40 Olivine State 5-16S-37E TL #1 Matador Resources Acreage M ic ro -C o u p le d C o u p le d One of the primary source rocks for Twin Lakes prospect area (~42,300 gross and ~29,900 net acres) Super-charged area having produced 1.3 billion Bbl oi
Slide 41: Midstream
a‘, . 4 Matador ae cm Wore = Midstream
Slide 42: Longwood Gathering and Disposal Systems in Delaware Basin
42 Longwood Gathering and Disposal Systems(1) in Delaware Basin Loving County, TX Gas gathering Water gathering Salt water disposal Oil gathering Cryogenic gas processing plant Sold to EnLink Eddy County, NM Gas gathering and compression Cryogenic gas processing plant Water gathe
Slide 43: Wolf - Loving County, TX – Significant Midstream Footprint
43 Wolf - Loving County, TX – Significant Midstream Footprint Gas Gathering Water Gathering Salt Water Disposal Oil Gathering Matador Acreage Note: All acreage at February 24, 2016.
Slide 44: Rustler Breaks - Eddy County, NM – Repeating the Proven Wolf Model
44 Rustler Breaks - Eddy County, NM – Repeating the Proven Wolf Model Gas gathering and compression Cryogenic gas processing plant Water gathering (under evaluation) Salt water disposal (under evaluation) Matador Acreage Note: All acreage at February 24, 2016.
Slide 45: 2016 Capital Investment Plan
2016 Capital Investment Plan
Slide 46: 2016 Capital Investment Plan – Summary (3-Rig Case)
We will keep the focus on our Delaware Basin assets and opportunities with the intent of creating and preserving long-term shareholder value Plan to run 3 rigs in 2016, but will consider dropping to 2 rigs as early as Q2 2016 if oil prices drop and remain below $30 per barrel Continue to impro
Slide 47: 2016 Capital Investment Plan – Summary (2-Rig Case)
We will keep the focus on our Delaware Basin assets and opportunities with the intent of creating and preserving long-term shareholder value Plan to run 3 rigs in 2016, but will consider dropping to 2 rigs as early as Q2 2016 if oil prices drop and remain below $30 per barrel Continue to impro
Slide 48: 2016 Capital Investment Plan – Summary
48 We estimate our capital budget in 2016 to be approximately $325 million for the 3-rig case (down 33% from 2015(1)), declining to $277 million for the 2-rig case (down 43% from 2015(1)) We expect to have sufficient liquidity to fund our 2016 capital investments - $61 million in cash and $375 m
Slide 49: 2016 production growth and funding of outspend
49 We expect to grow oil production by about 11% and keep natural gas production close to flat; total BOE production growth of about 4% in the 3-rig program as compared to 2015 We expect to outspend cash flow by ~$205 million (2-rig) to ~$230 million (3-rig) in 2016, including outspend associate
Slide 50: Matador's 2016 Delaware Basin Operated Drilling Plan: 3-Rig Case
Matador’s 2016 Delaware Basin Operated Drilling Plan: 3-Rig Case 50 Note: All acreage at February 24, 2016. Some tracts not shown on map. L E A LOVING WARD TWIN LAKES ~42,300 gross / ~29,900 net acres WOLF / LOVING AREA ~12,200 gross / ~7,500 net acres Jackson Trust RANGER ~32,400 gross / ~19,400 ne
Slide 51: Estimated returns by prospect area and formation
0 40 80 120 160 200 240 30 35 40 45 50 55 60 R O R, % WTI Oil Price, $/Bbl Rustler Breaks - Wolfcamp A-X/Y (85% oil) 800 MBOE, $5.0 MM 800 MBOE, $6.0 MM 600 MBOE, $5.0 MM 600 MBOE, $6.0 MM 51 0 50 100 150 200 250 300 30 35 40 45 50 55 60 R O R, % WTI Oil Price, $/Bbl Wolf - Wolfcamp A-X/Y (70% oil)
Slide 52: 2016E CapEx by quarter
$75.0 $62.0 $62.0 $61.0 $22.0 $16.0 $2.0 $6.0 $6.0 $6.0 $7.0 $103.0 $84.0 $70.0 $68.0 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 1Q16 2Q16 3Q16 4Q16 D&C + Facilities Midstream Land, Seismic, Etc. (Discretionary) 2016E CapEx of ~$325 million − Decrease of ~33% from 2015 capital expenditures of $482
Slide 53: 2016 Capital Investment Plan Summary – 3-Rig and 2-Rig Cases
$75.0 $62.0 $62.0 $61.0 $22.0 $16.0 $2.0 $6.0 $6.0 $6.0 $7.0 $103.0 $84.0 $70.0 $68.0 $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 1Q16 2Q16 3Q16 4Q16 D&C + Facilities Midstream Land, Seismic, Etc. (Discretionary) $75.0 $47.0 $50.0 $40.0 $22.0 $16.0 $2.0 $6.0 $6.0 $6.0 $7.0 $103.0 $69.0 $58.0 $47.0 $0
Slide 54: 2016 Oil and Natural Gas Production Estimates
2,133 3,320 4,492 4,800 4,285 5,870 9,108 9,133 2013 2014 2015 2016E 7% 0% 56% 37% 35% 55% 2,133 3,320 4,492 5,000 4,285 5,870 9,108 9,500 2013 2014 2015 2016E 11% 4% 56% 37% 35% 55% Oil and Natural Gas Production – 3-Rig Case (3 rigs in the Delaware Basin throughout 2016) Oil 54 2016 Oil and Natura
Slide 55: 2016E Oil and Natural Gas Revenues
$269 $368 $278 $225 $0 $100 $200 $300 $400 2013 2014 2015 2016E (19%) (24%) 37% Realized $45.27/Bbl $2.71/Mcf Realized $34.00/Bbl $2.37/Mcf Realized $99.79 Bbl $4.35/Mcf Realized $87.37/Bbl $5.08/Mcf $269 $368 $278 $235 $0 $100 $200 $300 $400 2013 2014 2015 2016E (15%) (24%) 37% 2016E Oil and Natura
Slide 56: 2016E Adjusted EBITDA
2016E Adjusted EBITDA(1)(2) Estimated Adjusted EBITDA(1)(2) of $120 to $130 million in 3-rig case − Decrease of ~44% from $223 million in 2015 Estimated Adjusted EBITDA(1)(2) of $100 to $110 million in 2-rig case − Includes estimated rig release penalty 2016E Operating Cost Estimates (Unit Costs
Slide 57: Commodity Price and CapEx Estimates
$88 $104 $120 $125 $136 $153 $175 $196 $80 $100 $120 $140 $160 $180 $200 $25 $30 $35 Strip $40 $45 $50 $55 201 6E A dj us te d EB IT DA M id po in t ( $ m ill io ns ) WTI Oil Price ($/Bbl) Relatively small improvements in oil price and service cost reductions can significantly improve financial fo
Slide 58: Hedging Profile
490,000 690,000 690,000 690,000 390,000 390,000 390,000 390,000$68.32 $61.16 $61.16 $61.16 $47.62 $47.62 $47.62 $47.62 $45.12 $42.48 $42.48 $42.48 $38.62 $38.62 $38.62 $38.62 $0 $20 $40 $60 $80 $100 $120 $140 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Q1 2016 Q2 2016 Q3 2016 Q
Slide 59: Credit Agreement Status
Strong, supportive bank group led by Royal Bank of Canada Borrowing base reaffirmed on October 16, 2015 at $375 million based on June 30, 2015 reserves Maturity of credit facility extended from December 2016 to October 2020 Bank group unanimous in supporting borrowing base affirmation and ma
Slide 60: Summary and Initial 2016 Guidance
60 Summary and Initial 2016 Guidance (As Provided February 3, 2016) (1) For operations only. Does not include capital expenditures associated with the HEYCO transaction or two associated joint ventures. (2) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a re
Slide 61: Appendix
Fan . ) (Matador Pm cm ween el’ = Appendix
Slide 62: Eagle Ford – "Oil Bank"
62 Eagle Ford – “Oil Bank” Note: All acreage at February 24, 2016. Some tracts not shown on map. Karnes Uvalde Medina Zavala Frio Dimmit La Salle Webb Atascosa McMullen Live Oak Bee Goliad Dewitt Gonzales Wilson San Antonio Glasscock Ranch Martin Ranch Northcut Affleck Troutt Sutton Love Cowey Lewto
Slide 63: Haynesville Operations
Note: All acreage at February 24, 2016. (1) As of January 31, 2016. Haynesville Operations 63 5 gross (0.6 net) wells expected to be drilled and completed in the Haynesville in 2016 Estimated capital expenditures of ~$4 million 9 gross (1.9 net) Elm Grove wells operated by Chesapeake turned to
Slide 64: Delaware Basin – A "World Class" Hydrocarbon System
64 Delaware Basin – A “World Class” Hydrocarbon System DELAWARE BASIN CENTRAL BASIN PLATFORM MIDLAND BASIN Wolfcamp Simpson ~23,000’ Sediment Fill East West Source “Kitchens” Now Unconventional Resource Plays 70,000 square mile area Up to 25,000 feet of multiple, stacked, petroleum systems Ext
Slide 65: Spectrum of Unconventional Play Types
Spectrum of Unconventional Play Types In general there is no consensus on the what an “unconventional” reservoir is… At Matador, we think of an unconventional reservoir as a spectrum of play types. The distribution and quality of these play types are both spatially and temporally variable. Play type
Slide 66: New Rig Technology for Horizontal Drilling – Saving Time and Money
7,500 psi Pressure Rating Estimated reduction in drilling time of 20 to 25% in the lateral on Wolfcamp wells Telescoping Flex-joint Estimated reduction in drilling time of 12 to 18 hours per well Integrated Mud-Gas Separator Estimated savings of 50% compared to rental separator BOP Wra
Slide 67: Future Bit Technology – The Evolution of the PDC bit
Future Bit Technology – The Evolution of the PDC bit 67 Matador continues to be at the forefront of new bit technology Smith Bits latest technology StingBlade design StingBlade design features Alternating Stinger/PDC cutters Stinger cutters cut troughs in the formation with the PDC cutters
Slide 68: Optimizing Artificial Lift Operations Across the Permian Basin
Optimizing Artificial Lift Operations Across the Permian Basin Using ESP’s to Optimize Production Accelerated production while maintaining a controlled drawdown of bottomhole pressure BHP gauges aid in analyzing 3rd Bone Spring reservoir properties Quick startup after shut in for maintenance =
Slide 69: Delaware Basin: ROR Relationship to Well Cost
29 32 35 39 43 47 49 53 56 60 64 69 20 30 40 50 60 70 80 800 840 880 920 960 1000 ROR, % EUR, MBOE $35/Bbl WTI Oil Price Increasing Oil Price Model 20 30 40 50 60 70 80 $5.0 $5.2 $5.4 $5.6 $5.8 $6.0 ROR, % Well Cost, millions $35/Bbl WTI Oil Price Increasing Oil Price Model Delaware Basin: ROR Relat
Slide 70: Board of Directors – Expertise and Stewardship
Board of Directors – Expertise and Stewardship Board Members Professional Experience Business Expertise David M. Laney Lead Director - Past Chairman, Amtrak Board of Directors - Former Partner, Jackson Walker LLP Law and Investments Reynald A. Baribault Director - Vice President / Engineering and Co
Slide 71: Special Board Advisors
Special Board Advisors Professional Experience Business Expertise Ronney F. Coleman - Retired President – North America, Archer - Former Vice President North America Pumping, BJ Services Co. Oilfield Services Marlan W. Downey - Retired President, ARCO International - Former President, Shell Pecten I
Slide 72: Proven Management Team – Experienced Leadership
Proven Management Team – Experienced Leadership Management Team Background and Prior Affiliations Industry Experience Matador Experience Joseph Wm. Foran Founder, Chairman and CEO - Matador Petroleum Corporation, Foran Oil Company, James Cleo Thompson Jr. 35 years Since Inception Matthew V. Hairford
Slide 73: Adjusted EBITDA Reconciliation
73 Adjusted EBITDA Reconciliation This investor 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 consolidated financial statements, such as industry analysts, investo
Slide 74: 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. 74 (In thousands) 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2
Slide 75: 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. 75 Note: LTM is last 12 months. (In thousands) 2008 20
Slide 76: PV-10 Reconciliation
76 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 net revenues. PV-10 is not an estimate of the fair market value of the