Matador Resources Company · NYSE:MTDR
Matador Resources — Q4 2024 Earnings Presentation
54 slides from Matador Resources's earnings presentation, Feb 19, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Release
Fourth Quarter and Full Year 2024 Earnings Release February 18, 2025
Slide 2: Investor Relations Contact and Disclosure Statements
Investor Relations Contact and Disclosure Statements Safe Harbor Statement – This presentation and statements made by representatives of Matador Investor Relations Contact Resources Company (“Matador” or the “Company”) during the course of this presentation includes “forward- looking statements” wit
Slide 3: Chairman's Remarks
Chairman’s Remarks February 18, 2025
Slide 4: Increasing Fixed Dividend Again – Six Times in Four Years
SLIDE A Increasing Fixed Dividend Again – Six Times in Four Years $1.25 $0.10 Q1 2021 Q1 2025 Annualized Dividend 1
Slide 5: Q4 2024 Record Production
SLIDE B Q4 2024 Record Production 200,000+ BOE/d – First Time in Matador History 201,116 154,261 57% 59% Oil Oil Q4 2023 Q4 2024 2
Slide 6: Continued Annual Growth in Key Metrics
SLIDE C Continued Annual Growth in Key Metrics (1) (1) Total Production Adj. EBITDA Adj. Free Cash Flow (BOE/d) ($ in millions) ($ in millions) 170,751 $2,299 $807 131,813 $1,850 $460 2023 2024 2023 2024 2023 2024 3 (1) Adjusted EBITDA and adjusted free cash flow are non-GAAP financial measures. For
Slide 7: Capital Efficiencies Achieved Throughout 2024
SLIDE D Capital Efficiencies Achieved Throughout 2024 $1,020 $1,010 $1,000 $980 $960 Drilling and Completion Cost(1) ($ per completed lateral foot) $960 $940 $930 $920 $910 $900 $880 $860 2024 February 2024 July 2024 October 2024 Actuals (2) (3) (4) Guidance Guidance Guidance (1) Cost per completed
Slide 8: Expected Improvements in D&C Cost Per Foot in 2025
SLIDE E Expected Improvements in D&C Cost Per Foot in 2025 Change in D&C Asset Area Cost per Foot(1) Rustler 1 -6% Breaks 2 3 2 Arrowhead -11% 3 Ranger -11% 1 4 Antelope 4 -8% Ridge Matador Acreage 2025E Footage Turned to Sales Note: All acreage as of December 31, 2024. 1.4 million feet(1) 5 (1) Gro
Slide 9: Core Delaware Basin Net Acreage and Production Growth
SLIDE F Core Delaware Basin Net Acreage and Production Growth 2012 2017 2024 ~7,500 Net Acres ~114,000 Net Acres ~198,700 Net Acres 9,000 BOE/d 38,900 BOE/d 170,800 BOE/d EDDY LEA EDDY LEA EDDY LEA WINKLER LOVING LOVING LOVING Matador Acreage Matador Acreage WARD Matador Acreage WARD Note: All acrea
Slide 10: Increasing Delaware Basin Inventory
SLIDE G Increasing Delaware Basin Inventory 10-15 Years of Inventory with average returns greater than 50%(1) 18.3 Million Feet 15.0 Million Feet 1,869 Net Locations December 31, 2023 December 31, 2024 Total Net Inventory Lateral Length 7 (1) Based on flat long-term pricing of $70/Bbl oil, $3/MMBtu
Slide 11: 33% Growth in Total Proved Reserves at Year-End
SLIDE H 33% Growth in Total Proved Reserves at Year-End 611.5 Million BOE 460.1 Million BOE December 31, 2023 December 31, 2024 PV-10: $7.7 Billion(1) PV-10: $9.2 Billion(1) Note: 2023 SEC pricing was $74.70 per Bbl and $2.64 per MMBtu. 2024 SEC pricing was $71.96 per Bbl and $2.13 per MMBtu. 2024 r
Slide 12: Strong and Simple Balance Sheet
SLIDE I Strong and Simple Balance Sheet ~$1.6 Billion Total Liquidity Current Leverage As of December 31, 2024 $3.5 $3.0 Remaining ~1.05x (1) Availability on Borrowing $2.5 Base Leverage Ratio ($ in Billions) $2.0 RBL Below 1.0x by $1.5 Liquidity: ~$1.6 B Q1 2025 $1.0 $0.5 Near-Term Debt Current Bor
Slide 13: U-Turn Wells – Savings Through Operational Efficiencies
SLIDE J U-Turn Wells – Savings Through Operational Efficiencies PREVIOUS NOW Four Single-Mile Lateral Wells Two U-Turn Wells $3 Million in (1) Savings per U-Turn Well Note: In addition to saving $3 million per well, U-Turn wells reduce project payout timing by 39% and lower the break-even price by 2
Slide 14: Superior Profit Margins: Matador Leads the Industry
SLIDE K Superior Profit Margins: Matador Leads the Industry $55.00 High Revenue per BOE High Revenue per BOE Low Profit per BOE High Profit per BOE Peer 2 $52.50 Peer 1 Peer 6 $50.00 Peer 8 Revenue Per BOE Peer 3 Peer 10 $47.50 Low Revenue per BOE Low Revenue per BOE Low Profit per BOE High Profit p
Slide 15: Industry Leading Wells Productivity
SLIDE L Industry Leading Wells Productivity MTDR’s Industry Leading Estimated Ultimate Recoveries (EURs) for Wells Turned to Production Since 2020 Average Oil EUR (MBbl) Source: Enverus data accessed in February 2025. 12 Includes all operated horizontal wells turned to production since January 1, 20
Slide 16: Successful Ameredev Integration Improves Production Metrics
SLIDE M Successful Ameredev Integration Improves Production Metrics ACQUISITION DETAILS Expected Integration Savings Price: $1.832 billion Effective Date: 6/1/2024 Closed: 9/18/2024 D&C Cost $160+ million $4+ million already saved! Over $2 million LOE LOE per month 35% reduction in LOE! 11% ab
Slide 17: Continued Growth – Adjusted EBITDA
SLIDE N Continued Growth – Adjusted EBITDA(1) Matador’s San Mateo’s Adjusted EBITDA Adjusted EBITDA ($ in millions) ($ in millions) $2,500 $300 $2,299 $253 $250 $2,000 $1,850 $200 $200 $1,500 $150 $1,000 $100 $500 $50 $0 $0 2023 2024 2023 2024 14 (1) Adjusted EBITDA is a non-GAAP financial measure.
Slide 18: Industry Leading Free Cash Flow Growth
SLIDE O Industry Leading Free Cash Flow Growth 250% 233% 228% 200% 176% 160% 150% 137% 127% 99% 98% 100% 92% 82% 79% 75% 74% 52% 50% 44% 36% 0% Note: As of February 18, 2025. Compares (i) actual adjusted free cash flow (for Matador) or consensus adjusted free cash flow estimates from Bloomberg LP (f
Slide 19: San Mateo's Successful Combination with Pronto Midstream
SLIDE P San Mateo’s Successful Combination with Pronto Midstream Strengthens MTDR Balance Sheet $220 million upfront cash and $75 million in performance incentives Increases Flow Assurance Marlan Plant Long-term sour gas solution Simplifies Structure Black River Plant Exploring potential IPO or othe
Slide 20: Marlan Plant 2025 Expansion
SLIDE Q Marlan Plant 2025 Expansion ✓ On Time 70% ✓ On Budget Complete (1) Expected Online in Q2 2025 Note: Marlan Plant named for Mr. Marlan W. Downey, former executive of Shell, President of ARCO and long-time MTDR Board advisor. 17 (1) As of December 31, 2024.
Slide 21: Opportunity to Tap Cotton Valley Gas Bank When Advantageous
SLIDE R Opportunity to Tap Cotton Valley “Gas Bank” When Advantageous Excellent Positioning for LNG Export and AI Data Center Demand HAYNESVILLE/ COTTON VALLEY 17,300 net acres 100% HBP Texas Louisiana LNG LNG Cotton Valley Estimated Ultimate Recovery 200 to 300 Bcf 18
Slide 22: Midstream Strategically and Financially Valuable
SLIDE S Midstream Strategically and Financially Valuable Midstream Value Flow Assurance Economic Benefit ~$900 Million to Plant Uptime Over 99% Cash Flow Date Close Leads to Efficiencies Growing $1.5 Billion in Net Coordination Assets(1) and Timeliness Value With Operations (1) Estimated net to Mata
Slide 23: MTDR's Senior Management are Buyers
SLIDE T MTDR’s Senior Management are Buyers Number of Net Shares Bought & Sold by Management (2021 to 2024)(1) MTDR CIVI VTLE APA OVV SM FANG CTRA PR 200,000 50,000 0 (200,000) Number of Net Shares (400,000) (600,000) (800,000) (1,000,000) (1,200,000) (10,500,000) (1,400,000) Buys / Sells 30 / 0 4 /
Slide 24: Appendix
aN, (Matador Tier Appendix February 18, 2025 NYSE
Slide 25: Matador Resources Company Overview
Matador Resources Company Overview Market Snapshot NYSE Symbol MTDR Market Capitalization(1) $7.1 billion Avg. Daily Production – Q4 2024 201.1 MBOE/d Net Debt / LTM Adj. EBITDA(2)(3) – Q4 2024 ~1.05x DELAWARE BASIN HAYNESVILLE/ 198,700 net acres COTTON VALLEY Adj. Free Cash Flow(2) – Q4 2024 $415.5
Slide 26: Delivering Strong Well Results All Around the Delaware Basin
Delivering Strong Well Results All Around the Delaware Basin! DELAWARE BASIN Glenn Spiller 1st Bone Spring Sand 198,700 Net Acres Twin Lakes #111H 24-hr IP: 1,944 BOE/d (80% oil) Janie Conner U-Turn A 2nd Bone Spring Sand #120H 24-hr IP: 1,447 BOE/d (83% oil) Kathy Kregor 3rd Bone Spring Carbonate #
Slide 27: Delaware Basin Extended Lateral Well Location Inventory
Delaware Basin Extended Lateral Well Location Inventory • Matador has identified up to 5,080 gross (1,869 net) remaining potential locations(1) for future drilling on its Delaware Basin acreage Almost all intervals assume 160-acre well spacing (none less than 100-acre spacing at same true vertical
Slide 28: Horizontal Wells Completed and Turned to Sales – Q4 2024
Horizontal Wells Completed and Turned to Sales – Q4 2024 Operated Non-Operated Total Gross Operated and Non-Operated Gross Net Gross Net Gross Net Asset/Operating Area Well Completion Intervals Western Antelope Ridge - - - - - - No wells turned to sales in Q4 2024 (Rodney Robinson) 1-WC D, 5-3BS Car
Slide 29: Horizontal Wells Completed and Turned to Sales – Full Year 2024
Horizontal Wells Completed and Turned to Sales – Full Year 2024 Operated Non-Operated Total Gross Operated Gross Net Gross Net Gross Net Asset/Operating Area Well Completion Intervals Western Antelope Ridge - - - - - - No operated wells turned to sales in 2024 (Rodney Robinson) 1-WC D, 2-WC B, 8-WC
Slide 30: Q4 2024 Guidance vs. Q4 2024 Actuals
Q4 2024 Guidance(1) vs. Q4 2024 Actuals Total production better than expected Higher-than-expected production from non-operated assets Better-than-expected performance from new wells 3,000 BOE/d (67% oil) higher if not for significant third-party midstream constraints for 2-3 months in Antel
Slide 31: Hedging Profile – 2025
Hedging Profile – 2025(1) WTI Oil Collars Waha-Henry Hub Differential Swaps ~40% hedged for Q1 2025 5,000 5,000 4,500 4,500 4,050 4,095 - - 4,000 4,000 Gas Volume Hedged (MMBtu) Oil Volume Hedged (MBbl) 3,500 3,500 3,000 3,000 2,700 2,730 2,760 2,760 2,500 2,500 $86 $86 2,000 $60 $60 2,000 1,500 1,5
Slide 32: MAXCOM Operations Center
MAXCOM Operations Center = Recruiting + Training + Execution Averaging 98% in Zone(1) 24/7 Geosteering and Engineering Support 2018 2019 2020 2021 2022 2023 2024 Drilling Records: 28 47 36 44 49 56 58 Est. Savings $1.5 $6.1 $6.1 $7.4 $8.0 $9.5 $14.7 (millions): (1) Calculated based on well rig relea
Slide 33: Matador's Steady Growth Focused in the Delaware Basin
Matador’s Steady Growth Focused in the Delaware Basin Category 2023 2024 Acreage ~152,200 ~198,700 +31% (net) Net Inventory Lateral Length 15.0 million 18.3 million +22% (feet) Reserves 460 612 +33% (MMBOE) Production 154,261 201,116 +30% (BOE/d) Midstream ~540 ~590 +9% (miles) Dividend $0.80 $1.25(
Slide 34: The Delaware Basin: Best Basin in the United States
The Delaware Basin: Best Basin in the United States Delaware Brushy Canyon U. Avalon L. Avalon FBSG SBSC SBSG Midland TBSC Matador Acreage TBSG WFMP A Sprayberry WFMP B WFMP A WFMP D WFMP B WFMP C Eagle Ford WFMP D Strawn Bakken Niobrara Marcellus Austin Chalk Barnett Barnett Bakken Niobrara Eagle F
Slide 35: Why Matador?
Why Matador? DELAWARE BASIN Highest-margin Delaware Basin Operator 198,700 Net Acres Double-digit Profitable Growth 10-15 Years of Quality Inventory Steadily Increasing Fixed Dividend Strong, Simple Balance Sheet Strategic Midstream Business with $1.5 Billion in Assets Management Team Interests Alig
Slide 36: Industry Leading Realized Oil Price
Industry Leading Realized Oil Price $78.50 $78.00 $77.50 $77.00 $76.50 $76.00 $75.50 $75.00 $74.50 $74.00 $73.50 MTDR Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Peer 9 Peer 10 Source: Company filings and Bloomberg. “Peers” include APA, CIVI, CTRA, FANG, MUR, MGY, OVV, PR, SM, VTLE. 33 N
Slide 37: San Mateo Record Results in Q4 2024
San Mateo Record Results in Q4 2024 San Mateo Average Natural Gas Gathering San Mateo Average Natural Gas Processing (MMcf/d) (MMcf/d) Record Quarter! Record Quarter! 454 450 424 434 450 425 431 413 416 399 393 400 400 355 350 350 300 300 250 250 200 200 150 150 100 100 50 50 0 0 4Q23 1Q24 2Q24 3Q24
Slide 38: San Mateo's Record Growth in 2024
San Mateo’s Record Growth in 2024 Matador received over $100 million in distributions from San Mateo in 2024 $300 Natural Gas $285 Oil Water $253 San Mateo's Adjusted EBITDA ($ in millions)(1) $250 $198 $200 Natural $200 Gas $154 $150 $113 $96 Oil $100 $62 Water $50 $31 $12 $0 (2) 2016 2017 2018 201
Slide 39: Full Year 2025 Guidance
Full Year 2025 Guidance February 18, 2025
Slide 40: 2025 Guidance
2025 Guidance(1) Actual %YoY Guidance Metric 2025 Guidance Range 2024 Results Change(2) Oil Production 99,808 Bbl/d 120,000 to 124,000 Bbl/d + 22% Natural Gas Production 425.7 MMcf/d 492.0 to 504.0 MMcf/d + 17% Oil Equivalent Production 170,751 BOE/d 202,000 to 208,000 BOE/d + 20% D/C/E CapEx(3) $1.
Slide 41: 2025 Capital Investment Plan Summary
2025 Capital Investment Plan Summary(1) Full Year 2025E CapEx(2) – $1.525 billion – Midpoint Actual % YoY 2025 Guidance Range 2024 Results Change(3) Drilling, Completing and Equipping $1.32 billion $1.28 to $1.47 billion +4% Operated D/C/E(4) $1.19 billion $1.16 to $1.32 billion +4% Non-Op $81 milli
Slide 42: Q1 2025 Guidance
Q1 2025 Guidance(1) Guidance Metric Q1 2025 Guidance Range Oil Production 114,000 to 115,000 Bbl/d Natural Gas Production 486.0 to 492.0 MMcf/d Oil Equivalent Production 195,000 to 197,000 BOE/d D/C/E CapEx(2) $340 to $400 million Midstream CapEx(3) $65 to $95 million Total D/C/E and Midstream CapEx
Slide 43: Wells Turned to Sales – 2025 Full Year & Q1 Guidance
Wells Turned to Sales – 2025 Full Year & Q1 Guidance(1) During full year 2025, Matador expects to turn to sales 144 gross (110.3 net) operated horizontals wells In 2025, Matador expects to continue to focus its operations on longer laterals of two miles and greater ‒ Matador estimates its averag
Slide 44: 2025E Operating Cost Estimates
2025E Operating Cost Estimates(1) ($/BOE) 2024 Q4 2024 2025E 1 Production taxes, transportation and processing (“PTTP”) $4.91 $4.70 $5.00 to $6.00 2 Lease operating (“LOE”) $5.47 $5.37 $5.50 to $6.00 3 Plant and other midstream services operating (“POMS”) $2.74 $2.75 $2.75 to $3.25 4 Depletion, depr
Slide 45: Q4 2024 & Q1 2025E Commodity Price Differentials
Q4 2024 & Q1 2025E Commodity Price Differentials Q4 2024 Q1 2025E Actual Actual Realized Commodity Prices Benchmark(1) Differential Guidance(2) Realized Price Differential Oil Prices, per Bbl $70.32 $70.66 +$0.34 -$0.50 to +$0.50 (At Benchmark) Natural Gas Prices, per Mcf $2.98 $2.72 -$0.26 -$0.50 t
Slide 46: Committed to Environmental, Social and Governance (ESG) Stewardship
Committed to Environmental, Social and Governance (ESG)(1) Stewardship ENVIRONMENTAL Continued reduction of per-barrel High percentage of transportation on pipeline emissions(2) OPERATED PRODUCED OIL ON PIPE OPERATED PRODUCED WATER ON PIPE >55% >75% Reduction in E&P direct Reduction in E&P greenhous
Slide 47: Adjusted EBITDA & Adjusted Free Cash Flow Reconciliations
Adjusted EBITDA & Adjusted Free Cash Flow Reconciliations 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 consoli
Slide 48: Adjusted EBITDA Reconciliation – Matador Resources Company
Adjusted EBITDA Reconciliation – Matador Resources Company The following table presents the calculation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the GAAP financial measures of net income and net cash provided by operating activities, respectively. (In thousands) 1Q 2023 2Q 202
Slide 49: Adjusted EBITDA Reconciliation Matador Resources Company, 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 and net cash provided by operating activities, respectively. (In thousands) 2023 2
Slide 50: Adjusted EBITDA Reconciliation – San Mateo (100%)
Adjusted EBITDA Reconciliation – San Mateo(1) (100%) The following table presents the calculation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the GAAP financial measures of net income and net cash provided by operating activities, respectively, for San Mateo Midstream, LLC. Three
Slide 51: 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 and net cash provided by operating activities, respectively, for San Mateo Midstream, LLC. Year Ended Decembe
Slide 52: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Matador Resources Company The following table presents the calculation of adjusted free cash flow and the reconciliation of adjusted free cash flow to the GAAP financial measure of net cash provided by operating activities. Three Months Ended Year Ended Decembe
Slide 53: 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,
Slide 54: PV-10 Reconciliation
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 Co
Matador Resources Company — Q4 2024 Earnings Presentation on 6ix