Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (March 2012)
31 slides from Matador Resources's investor presentation, Mar 26, 2012
Slide 1: Investor Presentation
Exhibit 99.1 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) including overallotment at $12.00/share in March 2012 Exchange: Ticker NYSE: MTDR Shares Outstanding 55.27 million common shares Share Price as of March 20, 2012 $11.84/share Market Capitalization as of March 20, 2012 $654.4 mi
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: Matador Resources Snapshot
Matador Resources Snapshot Daily Production(1) 55 MMcfe/d % Oil 33% Proved Reserves @ 12/31/11 193.2 Bcfe % Proved Developed 33.7% % Oil 12% (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 well
Slide 6: 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 10x in 2012 94%(1) of 2012E capital expenditure program focused on oil / liquids exploration and development High Quality Asset Base in Attra
Slide 7: 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 SFY 44.4 78% Approximately 85% of Eagle Ford MTDR 43.3 84% acreage is in the prospective oil N/A NFX 42.9 and liqu
Slide 8: Eagle Ford Properties are Well Positioned
Eagle Ford Properties are Well Positioned Highlights MTDR acreage in counties with MITSUI / SM ENERGY June 2011 robust transaction activity – $18,846 / acre MARATHON / HILCORP June 2011 “good neighborhoods” HUNT / MARUBENI January 2012 $24,823 / acre KKR / HILCORP June 2010 CNOOC / CHESAPEAKE +$20,0
Slide 9: Eagle Ford and Austin Chalk Properties
Eagle Ford and Austin Chalk Properties EAGLE FORD ACREAGE TOTALS 52,053 gross / 28,906 net acres EAGLE FORD EAST 6,270 gross / 4,874 net acres Lewton #1H EOG OPERATED, MTDR WI = 21% 23,420 gross / 4,631 net acres GLASSCOCK (WINN) RANCH 8,891 gross / 8,891 net acres EAGLE FORD WEST OIL FAIRWAY 13,472
Slide 10: 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 @ 12/31/11 4.7 MMBoe Chalk (including “Chalkleford”) % Proved Developed 37.9% Two rigs running, primarily focused on oil and liquids % Oil / Liquids 78.1% Eleven oper
Slide 11: Eagle Ford East (Dewitt, Gonzales, Wilson and Karnes Counties)
Eagle Ford East (Dewitt, Gonzales, Wilson and Karnes Counties) Acreage Position(1) 6,270 gross / 4,874 net Producing Wells Lewton #1H Wells drilled in Q1 2012 Sickenius #1H Danysh #1H Danysh #2H Pawelek #1H (drilling) Running one rig throughout 2012 San Antonio (1) Acreage as of September 30, 2011 1
Slide 12: Eagle Ford West (Dimmit, La Salle and Zavala Counties)
Eagle Ford West (Dimmit, La Salle and Zavala Counties) Acreage Position(1) 13,472 gross / 10,510 net Wells Drilled Martin Ranch #1H, #2H, #3H, #4H, #5H, #6H, #7H, #8H Affleck #1H JCM Jr Minerals #1H Northcut #1H Northcut #2H (drilling) Running one rig throughout 2012 San Antonio (1) Acreage as of Se
Slide 13: Martin Ranch Overview
Martin Ranch Overview Approximate Current Production Martin Ranch #1H –235 Bbls/d and 0.8 MMcf/d 12-month production of 138,000 barrels Martin Ranch #2H –545 Bbls/d and 1.35 MMcf/d Martin Ranch #3H –650 Bbls/d and 0.3 MMcf/d Martin Ranch #5H –715 Bbls/d and 0.15 MMcf/d Wells Drilled, Completed and P
Slide 14: Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR Acreage
Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR Acreage 13
Slide 15: Multi-Pay Fairway: Productive and Prospective Pay Zones
Multi-Pay Fairway: Productive and Prospective Pay Zones Navarro Olmos ANCC Austin Chalk Eagle Ford Buda Del Rio Georgetown Edwards Glen Rose Rodessa Pearsall Sligo 14
Slide 16: South Texas Multi-Pay Petroleum Systems: Petroleum Charge focus towards Glasscock Ranch
South Texas Multi-Pay Petroleum Systems: Petroleum Charge focus towards Glasscock Ranch Note: Information for Pearsall Oil Field sourced from public information 15
Slide 17: Northwest Louisiana / East Texas Properties Overview
Northwest Louisiana / East Texas Properties Overview Proved Reserves @ 12/31/11 164.6 Bcfe % Proved Developed 32.7% Tigner Walker H#1 Alt (CV) % Natural Gas 99.8% LA Wildlife H#1 Alt. (HV) Daily Production (1) 38.8 MMcfe/d Williams 17 H#1 (HV) Gross Acres(2) 29,128 acres Net Acres (2) 25,477 acres H
Slide 18: 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 19: Strong Growth Profile Focused on Liquids
Strong Growth Profile Focused on Liquids Commentary Liquids Focused CapEx in 2012E Approximately 90% of 2012E capital budget focused on Eagle Ford (84%) and Austin Chalk (6%) Oil production up about five-fold year-over-year at December 31, 2011 Oil production expected to increase nearly 10x in 2012
Slide 20: 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 21: 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 P
Slide 22: 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) 144,368 acres Net Acres (1) 135,862 acres 2012E CapEx Budget $2.5 million Initial test well drilled to 8,200 feet and cored through the Meade Peak shale Detailed petrophysical
Slide 23: Financial Performance
Financial Performance Average Daily Production Oil and Natural Gas Revenues (MMcfe/d) ($ in mm) Adjusted EBITDA (1) Total Realized Revenues (2) ($ in mm) ($ in mm) Note: CAGR stands for compounded annual growth rate (1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EB
Slide 24: Selected Historical Financials
Selected Historical Financials (Revenues and Adjusted EBITDA in millions) Year Ended December 31, 2009 2010 2011 Production Summary Oil Production (MBbls) 30.0 33.0 154.0 Gas Production (Bcf) 4.8 8.4 14.5 Total Annual Production (Bcfe) 5.0 8.6 15.4 Realized Prices (Including hedges) Oil ($/ Bbl) $57
Slide 25: Hedging Profile
Hedging Profile Oil Hedges 2012 2013 Total Volume Hedged by Ceiling (Bbl) 1,180,000 1,260,000 Weighted Average Price ($ / 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 26: 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 27: 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 28: Appendix
eM, ¢ Matador ff Ina ae RESOURCES COMPANY Appendix
Slide 29: 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, (In thousands) 2008 2009 2010
Slide 30: 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 - Former Chairman, President and CEO, Comerica Bank –Texas Banking Director - Professor and Former Head of the Department of Petroleum Dr. Stephen A. Holditch Enginee
Slide 31: Experienced Leadership
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 31 years Since Inception J Cleo Thompson Jr. and Thompson Petroleum Corp. David E. Lancaster
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