Matador Resources Company · NYSE:MTDR

Matador Resources — Investor Presentation (August 2020)

57 slides from Matador Resources's investor presentation, August 2020

1. Slide 1: Investor Presentation August 2020

   Investor Presentation August 2020

2. Slide 2: Disclosure Statements

   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 1933

3. Slide 3: Company Overview and Investment Highlights

   Company Overview and Investment Highlights

4. Slide 4: Matador Resources Company Overview

   Matador Resources Company Overview Market Snapshot NYSE Symbol MTDR Enterprise Value(1) $3.1 billion Delaware Basin Q2 2020 Avg. Daily Production 73.3 MBOE/d Assets Q1 2020 Proved Reserves(2) 260.0 MMBOE Haynesville/ Cotton Valley Q2 2020 Net Debt / LTM Adj. EBITDA(3)(4) 2.5x Assets MATADOR HEADQUAR

5. Slide 5: Investment Highlights – Matador Resources Company (NYSE: MTDR)

   Investment Highlights – Matador Resources Company (NYSE: MTDR) High Quality E&P Assets and Rapidly Growing Midstream Business • Matador is achieving strong operating results across its ~128,000 net acre Delaware Basin leasehold and minerals position, acquired for a weighted average cost of ~$11,000

6. Slide 6: Matador's Significant Officer % Ownership vs. Peer Group

   Matador’s Significant Officer % Ownership vs. Peer Group Interests Aligned with Shareholders • Since January 1, 2020, approximately 200 directors, special advisors and employees, or approximately two-thirds of the staff, have bought Matador stock in the open market! Joseph Wm. Foran Matthew V. Hairf

7. Slide 7: Strong, Organic Growth Coupled With Peer-Leading Financial Returns

   Strong, Organic Growth Coupled With Peer-Leading Financial Returns Total MMBOE Proved Reserves Growth(1) E&P and Total Return on Capital Employed(2) 3-Year Average (YE2018 to YE2019) (2017 to 2019) MTDR Peer 6 28% 17% Peer 1 MTDR 20% 24% 15% Peer 2 14% Peer Average 15% Peer 3 14% Peer 7 15% Peer 4 1

8. Slide 8: A Tightly Integrated Strategy: Growing E&P and Midstream Together

   A Tightly Integrated Strategy: Growing E&P and Midstream Together Average Daily Total Production Average Daily Total Delaware Production (BOE/d) Delaware Basin (BOE/d) BOE up 3% sequentially; up 20% YoY BOE up 10% sequentially; up 28% YoY 73,749 73,302 71,161 69,645 66,005 61,493 60,268 70,000 61,29

9. Slide 9: 2020 Priorities – Protecting the Balance Sheet is First Priority

   2020 Priorities – Protecting the Balance Sheet is First Priority Balance Sheet Improvements Significant 2020 Milestones - Timeline 1 Reducing Rig Count from 6 to 3 rigs Q3 2020 and Beyond 1 First Rodney Robinson wells turned to sales • Operating three rigs in 2 Reducing Capital Costs, G&A and LOE 2

10. Slide 10: Elements of 2020 Cost Savings & Cash Flow Enhancements

    Elements of 2020 Cost Savings & Cash Flow Enhancements $355 Million Potential Improvement vs. Original Guidance Cost Savings + Cash Enhancements Already Realized YTD ($ in millions) Expected Remaining Cost Savings + Cash Enhancements for H2 2020 Total Expected 2020 Cost Savings + Cash Flow Enhanceme

11. Slide 11: Operations and Delaware Basin Update

    Operations and Delaware Basin Update

12. Slide 12: Delaware Basin Multi-Year Inventory of "A+ Locations"

    Delaware Basin Multi-Year Inventory of “A+ Locations” • Future drilling locations with a projected minimum 15% rate of return at $30/Bbl WTI oil pricing and $1.75/Mcf gas pricing A+ − ~90% of Matador’s remaining 2020 oil production is hedged at a weighted average floor price of $38/Bbl Criteria • Al

13. Slide 13: Delaware Basin – Continuing to Deliver Strong Well Results!

    Delaware Basin – Continuing to Deliver Strong Well Results! Matador Acreage Reduced operated rigs in Delaware Basin TWIN LAKES ~43,900 gross / ~24,500 net acres from six to three by the end of Q2 2020 During remainder of 2020:  Stateline: Two rigs drilling the first 12 wells on the western portion

14. Slide 14: Matador Federal Acreage and Permitting Update

    Matador Federal Acreage and Permitting Update Delaware Leasehold Federal Leasehold % of Delaware • At June 30, 2020, Delaware Asset Area County (net acres) (net acres) Leasehold Matador held Antelope Ridge Lea 16,300 8,500 7% approximately 127,600 net leasehold and mineral Rustler Breaks Eddy 26,700

15. Slide 15: A Step Change in Capital Efficiency: Updated 2020 Expectations

    A Step Change in Capital Efficiency: Updated 2020 Expectations(1) Average Lateral Length and % of Longer Laterals CapEx per Foot(2) and Lateral Footage Turned to Sales 100% 600,000 $1,700 Lateral Feet Turned to Sales 83% Average Drilling & Completions CapEx/foot, $/ft(2) 9,000 8,700 Average D&C CapE

16. Slide 16: First Six Rodney Robinson Wells Online – Results Above Expectations!

    First Six Rodney Robinson Wells Online – Results Above Expectations! “Rodney Robinson” Acreage Rodney Robinson Summary and Highlights • First six wells turned to sales on the Rodney Robinson Acreage tract in western Antelope Ridge in late Q1 2020 1 2 Overview • Matador acquired this 1,200 gross and

17. Slide 17: Stateline Asset Area – Eddy County, New Mexico

    Stateline Asset Area – Eddy County, New Mexico STATELINE Asset Summary and Highlights ~2,800 gross / ~ 2,800 net acres • Approximately 2,800 gross/net acres with 87.5% net Acreage revenue interest acquired in September 2018 BLM lease sale Overview • Approximately 88 gross two-mile and ~2.5-mile late

18. Slide 18: Greater Stebbins Area – Eddy County, New Mexico

    Greater Stebbins Area – Eddy County, New Mexico Greater Stebbins Area Summary and Highlights ARROWHEAD ~66,900 gross / ~26,900 net acres • Approximately 13,000 gross (5,450 net) acres Acreage • Currently producing from three primary intervals, Overview including 2nd Bone Spring, 3rd Bone Spring and

19. Slide 19: Rustler Breaks Asset Area – Eddy County, New Mexico

    Rustler Breaks Asset Area – Eddy County, New Mexico RUSTLER BREAKS Asset Summary and Highlights ~47,900 gross / ~26,700 net acres • Approximately 47,900 gross (26,700 net) acres Acreage • Producing from 12 different intervals throughout the Overview stratigraphic column • TIL five additional two-mil

20. Slide 20: Capital Efficiency Gains: Better Wells for Less Money

    Capital Efficiency Gains: Better Wells for Less Money Capital Efficiency Gains  Matador continues to drill better wells for less money Transition to Longer Laterals • ~10% increase in well EUR by capturing 850 additional feet of completed lateral(1) ✔ 1 ✔ • ~25% less time spent drilling vertically

21. Slide 21: Capital Efficiency Gains: Better Wells for Less Money – Longer Laterals

    Capital Efficiency Gains: Better Wells for Less Money 1 2 – One-mile Wolfcamp A wells(1) 1 – Two-mile Wolfcamp A well(1) Lease Line Perforation Zone 10% less 10% additional completable lateral completable lateral ~4,450’ ~4,450’ ~4,450’ ~4,450’ ~8,900’ of Completable Lateral ~9,750’ of Completable L

22. Slide 22: San Mateo Midstream Operations and Plans

    San Mateo Midstream Operations and Plans

23. Slide 23: San Mateo Assets and Operations – "Three-Pipe" Offering

    San Mateo(1) Assets and Operations – “Three-Pipe” Offering Eddy County, NM Assets Loving County, TX Assets 1 Mile Greater Stebbins Area Wolf Loving ~43 miles Natural Gas and Oil Pipelines Reeves Loving Ward 1 Mile Rustler Breaks Eddy Natural Gas Gathering and Processing Lea  260 MMcf/d of designed

24. Slide 24: Significant Growth in All Parts of San Mateo's Delaware Midstream Business

    Significant Growth in All Parts of San Mateo’s Delaware Midstream Business (51% Owned by Matador) San Mateo Average Water Disposal San Mateo Average Natural Gas Gathering(1) (MBbl/d) (MMcf/d) 250 300 Up 7% sequentially; 217 Down 3% sequentially; 262 up 17% YoY 203 up 2% YoY 250 200 186 190 190 216 1

25. Slide 25: San Mateo – Recent Highlights and Performance

    San Mateo – Recent Highlights and Performance  March 2020 – 10th commercial SWD well in Eddy County, NM online • Total of 13 commercial SWD wells in Eddy County, NM and Loving County, TX with ~335,000 Bbl/d of designed disposal capacity  October 2019 – Expanded credit facility for a second time fr

26. Slide 26: Updated Full Year 2020 Guidance

    Updated Full Year 2020 Guidance

27. Slide 27: Summary and Updated 2020 Guidance (as Provided on July 28, 2020)

    Summary and Updated 2020 Guidance (as Provided on July 28, 2020)  Six rigs operating in the Delaware Basin dropping to three – expect 53 gross (45.2 net) operated wells in 2020 − Released one rig at the end of March 2020, released a second rig at the end of April 2020 and released a third rig near

28. Slide 28: Updated 2020 Capital Investment Plan Summary vs. Prior Guidance

    Updated 2020 Capital Investment Plan Summary vs. Prior Guidance Prior 2020 CapEx Guidance(1)(2)(3) – $565 million Updated 2020 CapEx Guidance(2)(3)(4) – $565 million (Delaware: Moved from 6 to 3 operated rigs by end of Q2 2020) (Delaware: Moved from 6 to 3 operated rigs by end of Q2 2020) Midstream

29. Slide 29: 2020 Oil and Natural Gas Production Estimates

    2020 Oil and Natural Gas Production Estimates(1) Total Oil and Natural Gas Production 2020E CapEx(1)(2) (Midpoint): Natural Gas, Bcf D/C/E: $470 MM Midstream(3): $95 MM Oil, MBbl 2020E Oil Production – 11% Growth YoY Total: $565 MM • Estimated oil production of 15.35 to 15.65 million barrels Total (

30. Slide 30: Wells Completed and Turned to Sales – 2020 Updated Guidance

    Wells Completed and Turned to Sales – 2020 Updated Guidance(1)  During full year 2020, Matador expects to complete and turn to sales 93 gross (47.1 net) wells. Matador expects the Delaware Basin to account for 89 gross (47.1 net) wells, including 53 gross (45.2 net) operated and 36 gross (1.9 net)

31. Slide 31: Hedging Profile – Remainder of 2020, 2021 and 2022

    Hedging Profile – Remainder of 2020, 2021 and 2022 Remainder of 2020, 2021 and 2022 Hedges(1)  Oil (WTI) Costless Collars: ~1.8 million Bbl hedged for the remainder of 2020 at weighted average floor and ceiling prices of $48/Bbl and $66/Bbl, respectively; ~4.2 million Bbl hedged for 2021 at weighte

32. Slide 32: Revolver Borrowings Outstanding – Quarterly Estimates for H2 2020

    Revolver Borrowings Outstanding – Quarterly Estimates for H2 2020 ($ in millions) Borrowing Base $200 million Elected Commitment $180 million Net Debt/ LTM Adjusted EBITDA(1)(2): 2.2x 2.5x 3.0x 3.4x Realized Oil Price(3) ($/Bbl): $45.87 $24.03 $38.79 $39.43 Realized Gas Price(3) ($/Mcf): $1.70 $1.49

33. Slide 33: Environmental, Social and Governance (ESG)

    Environmental, Social and Governance (ESG)

34. Slide 34: ESG: Environmental – Air

    ESG: Environmental – Air Reducing greenhouse gas (GHG) Reducing emissions since 2017(1) emissions using advanced capture Greenhouse Gases (6%) and control equipment Vapor recovery units (VRU) on 100% of newly Emission Intensity Rate (33%) constructed tank batteries; recovery of flash gas volumes inc

35. Slide 35: ESG: Environmental – Water

    ESG: Environmental – Water 700 Over 680 million 2020E Stimulation Cumulative Recycled Production Water 600 gallons recycled water +32% Fluid Volumes 500 used by YE 2020 Fresh 6% ~$8.9 million (million gallons) 400 cost savings(1) 300 Wolf as alternative to Asset 200 fresh water Area 100 sourcing and

36. Slide 36: ESG: Increased Use of Recycled Water in Fracturing Operations

    ESG: Increased Use of Recycled Water in Fracturing Operations 680 Gallons of recycled produced water expected to be used for fracture ~$8.9 Estimated cost savings(2) as alternative to fresh water sourcing and produced million stimulation from 2015 to 2020E(1) million water disposal Estimated fractur

37. Slide 37: ESG: Environmental – Land

    ESG: Environmental – Land # of Pads Built Reducing surface ~66% of oil and ~96% of footprint with fewer pads water produced from the 36 More batch drilling, longer laterals 31 Delaware Basin is and commingling production transported on pipe(1) 58% fewer pads anticipated to be built in 2020 vs. 2018

38. Slide 38: ESG: Social

    ESG: Social 18,000 Commitment to a 16,000 Over 17,000 hours of proactive safety culture 14,000 employee continuing 12,000 education in 2019 No recordable employee injuries 10,000 since 2014 8,000 6,000 Over 1.8 million employee man-hours 4,000 and zero lost time accidents (LTA) 2,000 since 2017 0 20

39. Slide 39: ESG: Governance

    ESG: Governance Engaged Board of Directors Annual with majority voting “Say on Pay” standard voting Commitment to ethical conduct and compliance Certification of code of conduct by 100% of employees Formal shareholder nominating Active global Anonymous committee to review shareholder whistleblower a

40. Slide 40: Appendix

    aN, ¢ Matador | RESOURCES COMPANY tins Appendix

41. Slide 41: Highlights for Q2 2020

    Highlights for Q2 2020 • Oil production of ~43,100 Bbl/d, up 17% from ~36,800 Bbl/d in Q2 2019 – Record Quarter! Strong Production • Natural gas production of ~181.4 MMcf/d, up 23% from ~147.1 MMcf/d in Q2 2019 – Above Guidance! • Total production of ~73,300 BOE/d, up 20% from ~61,300 BOE/d in Q2 20

42. Slide 42: Q2 2020 Selected Operating and Financial Results

    Q2 2020 Selected Operating and Financial Results Three Months Ende d June 30, March 31, June 30, 2020 2020 2019 (1) Net Production Volumes: Oil (MBbl) 3,920 3,697 3,346 Natural gas (Bcf) 16.5 16.7 13.4 Total oil equivalent (MBOE) 6,670 6,476 5,577 (1) Average Daily Production Volumes: Oil (Bbl/d) 43

43. Slide 43: Delaware Basin Extended Lateral Well Location Inventory

    Delaware Basin Extended Lateral Well Location Inventory • Matador has identified up to 4,548 gross (1,600 net) remaining potential locations(1) for future drilling on its Delaware Basin acreage − Location counts assume extended lateral lengths whenever viable, and the total locations have an average

44. Slide 44: Delaware Basin Drilling Records Since MAXCOM Implementation

    Delaware Basin Drilling Records Since MAXCOM Implementation Recent Spud to TD Drilling Records: 89 MTDR Drilling Records and ~$10.0 Million  Ray State #123H – 13.4 Days – 2-mile well Estimated Savings Since MAXCOM  Jack Sleeper #201H – 17.8 days – 2-mile well Implementation Through July 2, 2020 

45. Slide 45: Marketing and Takeaway Overview

    Marketing and Takeaway Overview Three-Stream Takeaway Marketing and Midstream Adding Value Oil The combined efforts of Matador’s marketing and midstream teams have significantly increased  Matador expects to have almost all its operated realized pricing by: Delaware Basin oil production on pipe by

46. Slide 46: Crude Oil Marketing Overview

    Crude Oil Marketing Overview  Matador expects to have almost all its operated Eddy Lea Andrews Delaware Basin oil production on pipe by late Q4 2020 Central Delivery Points  Contracted a long-term, fixed transport rate New Mexico Texas Existing Plains Pipeline  Market optionality into Midland, Gu

47. Slide 47: Natural Gas Marketing Overview

    Natural Gas Marketing Overview San Mateo’s  In late September 2019, Matador began Eddy Black RiverLea Processing Plant Andrews transporting most of its Delaware Basin residue natural gas production to the Texas Gulf Coast on the newly commissioned Gulf Coast Express New Mexico Pipeline Project for

48. Slide 48: Natural Gas Liquids Marketing Overview

    Natural Gas Liquids Marketing Overview Chaves Matador Acreage  Completed NGL connection at the Black River Black River Processing Plant Processing Plant on EPIC’s Y-Grade pipeline EPIC Y-Grade Pipeline in March 2018 − BP Energy Company has continued to buy NGLs at tailgate of the Black River Proces

49. Slide 49: Matador Resources and San Mateo I Credit Facilities

    Matador Resources and San Mateo I Credit Facilities Matador Credit Agreement Summary Bank group led by Royal Bank of Canada Elected Borrowings Letters of Credit Financial Covenant: Maturity Borrowing Last Reserves Facility Size Borrowing Outstanding Outstanding Maximum Net Debt to Date Base Review C

50. Slide 50: Adjusted EBITDA Reconciliation

    Adjusted EBITDA Reconciliation This 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 the Company’s consolidated financial statements, such as industry analysts, inves

51. Slide 51: Adjusted EBITDA Reconciliation – Matador Consolidated

    Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated 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. (In thousands)

52. Slide 52: Adjusted EBITDA Reconciliation Continued – Matador Consolidated

    Adjusted EBITDA Reconciliation Continued Matador Resources Company, Consolidated 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. (In

53. Slide 53: Adjusted EBITDA Reconciliation – San Mateo

    Adjusted EBITDA Reconciliation San Mateo(1) The following table presents the calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and net cash provided by (used in) operating activities, respectively, for San Mateo Midstream, LLC an

54. Slide 54: Adjusted EBITDA Reconciliation – San Mateo Quarterly

    Adjusted EBITDA Reconciliation San Mateo(1) The following table presents the calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and net cash provided by (used in) operating activities, respectively, for San Mateo Midstream, LLC an

55. Slide 55: Adjusted Net (Loss) Income and Adjusted (Loss) Earnings Per Diluted Common Share

    Adjusted Net (Loss) Income and Adjusted (Loss) Earnings Per Diluted Common Share This presentation includes the non-GAAP financial measures of adjusted net (loss) income and adjusted (loss) earnings per diluted common share. These non-GAAP items are measured as net (loss) income attributable to Mata

56. Slide 56: Return on Average Capital Employed (ROACE) Reconciliation

    Return on Average Capital Employed (ROACE) Reconciliation The following table presents our calculation of E&P ROACE and Total ROACE and a reconciliation of such measures to the corresponding GAAP financial measures. Return on Average Capital Employed ($ in thousands) For the Years Ended December 31,

57. Slide 57: Cash Return on Capital Invested (CROCI) Reconciliation

    Cash Return on Capital Invested (CROCI) Reconciliation The following table presents our calculation of CROCI and Total CROCI and a reconciliation of such measures to the corresponding GAAP financial measures. Cash Return on Capital Invested ($ in thousands) For the Years Ended December 31, 2019 2018

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