Matador Resources Company · NYSE:MTDR
Matador Resources — Q3 2019 Earnings Presentation
24 slides from Matador Resources's earnings presentation, Oct 29, 2019
Slide 1: Third Quarter 2019 Earnings Release and Guidance Update
Third Quarter 2019 Earnings Release and Guidance Update October 29, 2019 NYSE: MTDR
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
Slide 3: Selected Operating and Financial Results
Selected Operating and Financial Results Three Months Ended September 30, 2019 June 30, 2019 September 30, 2018 (1) Net Production Volumes: Oil (MBbl) 3,659 3,346 2,973 Natural gas (Bcf) 16.5 13.4 12.3 Total oil equivalent (MBOE) 6,407 5,577 5,025 (1) Average Daily Production Volumes: Oil (Bbl/d) 39
Slide 4: Headlines and Highlights for Third Quarter 2019
Headlines and Highlights for Third Quarter 2019 •Oil production of ~39,800 Bbl/d, up 8% from ~36,800 Bbl/d in Q2 2019 – Record Quarter! Record Production •Gas production of ~179.2 MMcf/d, up 22% from ~147.1 MMcf/d in Q2 2019 – Record Quarter! •Total production of ~69,600 BOE/d, up 14% from ~61,300 B
Slide 5: Significant Asset Growth per Share of Matador Stock
Significant Asset Growth per Share of Matador Stock In addition to ~1.1 Bbl of oil and ~4.7 Mcf of natural gas standing behind each share of stock, Matador has ~132,700 net leasehold and mineral acres in the Delaware Basin and owns 51% of San Mateo, an oil, natural gas and water midstream company
Slide 6: Q3 2019 Volumes At Record Levels
Q3 2019 Volumes At Record Levels Average Daily Oil Production Average Daily Total Production (Bbl/d) (BOE/d) 39,776 BOE up 14% sequentially; up 27% YoY 36,767 Oil up 8% sequentially; up 23% YoY 69,645 34,517 40,000 33,479 32,317 61,290 70,000 59,941 29,740 35,000 Oil Natural Gas 55,536 54,625 52,937
Slide 7: Delaware Basin Acreage Position and Recent Operations and Results
Delaware Basin Acreage Position and Recent Operations and Results Matador Acreage TWIN LAKES Running six rigs in Delaware Basin ~44,100 gross / ~31,200 net acres Rustler Breaks: One to three rigs (at times) drilling primarily Wolfcamp A-XY and Wolfcamp B wells – few Rustler Breaks completions in H
Slide 8: Wells Completed and Turned to Sales – Q3 2019
Wells Completed and Turned to Sales – Q3 2019 During the third quarter of 2019, the Delaware Basin accounted for 39 gross (22.6 net) wells completed and turned to sales, including 27 gross (22.2 net) operated and 12 gross (0.4 net) non-operated wells Operated Non-Operated Total Gross Operated Asse
Slide 9: Updated 2019 Guidance (as Revised on October 29, 2019)
Updated 2019 Guidance (as Revised on October 29, 2019) Plan to run six rigs in the Delaware Basin throughout remainder of 2019 Four rigs in Rustler Breaks and Antelope Ridge, one rig in Wolf/Jackson Trust and one rig in Ranger/Arrowhead/Twin Lakes Increasing oil, natural gas and oil equivalent
Slide 10: Delaware Basin Operated Horizontal Well Completions in 2019
Delaware Basin Operated Horizontal Well Completions in 2019(1) At October 29, 2019, Matador expects to complete 86 gross (70.8 net) operated wells in 2019, including four gross (4.0 net) vertical wells, seven gross (6.9 net) Eagle Ford wells and one gross (1.0 net) Austin Chalk well in 2019 Mata
Slide 11: Updated 2019 Capital Investment Plan Summary
Updated 2019 Capital Investment Plan Summary (as of October 29, 2019) 2019E D/C/E CapEx Guidance of $640 to $680 million and 2019E Wells Turned to Sales Midstream CapEx Guidance of $70 to $90 million(3) Original Guidance(1) Updated Guidance(2) − Affirmed full year 2019 D/C/E and midstream capital
Slide 12: A Step Change in Capital Efficiency: YTD Progress and Current Expectations
A Step Change in Capital Efficiency: YTD Progress and Current Expectations Average Lateral Length and % of Longer Laterals CapEx per Foot(1) and Lateral Footage Turned to Sales 100% 700,000 $1,700 Average Lateral Length Lateral Feet Turned to Sales Average Drilling & Completions CapEx/foot, $/ft(1)
Slide 13: 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 Natural Gas Gathering San Mateo Average Water Disposal (MMcf/d) (MBbl/d) 250 200 190 Up 12% sequentially; Up 2% sequentially; 186 216 180 170 up 66% YoY up 22% YoY 192 155 153 200 160
Slide 14: Hedging Profile – Remainder of 2019, 2020 and 2021
Hedging Profile – Remainder of 2019, 2020 and 2021 Remainder of 2019, 2020 and 2021 Hedges(1) Oil (WTI) Costless Collars: ~2.0 million Bbl hedged for remainder of 2019 at weighted average floor and ceiling prices of $50/Bbl and $71/Bbl, respectively; ~4.9 million Bbl hedged for 2020 at weighted av
Slide 15: Reserves-Based Credit Agreement
Reserves-Based Credit Agreement Borrowing Base Affirmed at $900 million in October 2019 Strong, supportive bank group led by Royal Bank of Canada Facility size of $1.5 billion; matures in October 2023 Borrowing base affirmed at $900 million in October 2019 based on June 30, 2019 reserves revie
Slide 16: San Mateo I Credit Facility
San Mateo I Credit Facility Increased by $50 million to $375 million in October 2019 Led by The Bank of Nova Scotia and including all banks in Matador’s reserves-based credit facility Covers San Mateo I only, not San Mateo II Facility increased $50 million to $375 million from $325 million in
Slide 17: Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) Environmental Social Governance Commitment Reducing greenhouse to a proactive safety gas (GHG) emissions Certification of code culture with a total using advanced of conduct by all recordable incident rate capture and control employees well below the indust
Slide 18: Appendix
aN, ( Matador % Mf RESOURCES COMPANY Appendix NYSE: MTDR
Slide 19: 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
Slide 20: Adjusted EBITDA Reconciliation
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)
Slide 21: Adjusted EBITDA Reconciliation
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)
Slide 22: Adjusted EBITDA Reconciliation
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. Year Ended Dec
Slide 23: 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
Slide 24: Adjusted Net Income and Adjusted Earnings Per Diluted Common Share
Adjusted Net Income and Adjusted Earnings Per Diluted Common Share This presentation includes the non-GAAP financial measures of adjusted net income and adjusted earnings per diluted common share. These non-GAAP items are measured as net income attributable to Matador Resources Company shareholders,
Matador Resources Company — Q3 2019 Earnings Presentation on 6ix