Matador Resources Company · NYSE:MTDR
Matador Resources — Q4 2020 Earnings Presentation
31 slides from Matador Resources's earnings presentation, Feb 23, 2021
Slide 1: Fourth Quarter and Year-End 2020 Earnings Release
Fourth Quarter and Year-End 2020 Earnings Release February 23, 2021
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: Chairman's Remarks
Chairman’s Remarks February 23, 2021
Slide 4: Strong Results for Fourth Quarter 2020
SLIDE A Strong Results for Fourth Quarter 2020 • Generated adjusted free cash flow(1) of $60.7 million in Q4 2020 – Above Company Expectations! • Repaid $35 million in borrowings outstanding under reserves-based revolving credit facility in Q4 2020 and Achieved Adjusted repaid an additional $10 mill
Slide 5: Matador's Proved Reserves: ~270 Million BOE at December 31, 2020
SLIDE B Matador’s Proved Reserves: ~270 Million BOE at December 31, 2020(1) Proved Reserves Up 26% Over Last Two Years Haynesville/CV Haynesville/CV Haynesville/CV 11.7 MMBOE, 5% 8.5 MMBOE, 4% 3.5 MMBOE, 1% Delaware Delaware Delaware 191.5 MMBOE, 89% 232.8 MMBOE, 92% 261.9 MMBOE, 97% Eagle Ford Eagl
Slide 6: Revolver Borrowings Outstanding – 2020 Quarterly Results
SLIDE C Revolver Borrowings Outstanding – 2020 Quarterly Results ($ in millions) Letters of Credit $1,000 Revolver Borrowings Outstanding $900 Borrowing Base $900 $800 $200 million Elected Commitment $700 $700 $10 million better than October 27, 2020 guidance projection; $600 Repaid an additional $1
Slide 7: A Step Change in Capital Efficiency: Record Low Costs in 2020
A Step Change in Capital Efficiency: SLIDE D Record Low Costs in 2020 Average Lateral Length and % of Longer Laterals CapEx per Foot(1) and Lateral Footage Turned to Sales 10,000 Average Lateral Length 100% 600,000 Lateral Feet Turned to Sales $1,700 % of Laterals > 1-mile (1) Average Drilling & Com
Slide 8: Continued Progress in All Parts of San Mateo's Delaware Midstream Business
Continued Progress in All Parts of San Mateo’s Delaware SLIDE E Midstream Business (51% Owned by Matador) San Mateo Average Water Handling San Mateo Average Natural Gas Gathering(1) (MBbl/d) (MMcf/d) Up 12% sequentially; 300 300 Up 12% sequentially; up 22% YoY 260 down 18% YoY 262 250 233 250 213 21
Slide 9: Operational and Financial Results
Operational and Financial Results February 23, 2021
Slide 10: Q4 and Year-End 2020 Selected Operating and Financial Results
Q4 and Year-End 2020 Selected Operating and Financial Results Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2020 2020 2019 2020 2019 Net Production Volumes:(1) Oil (MBbl) 4,419 3,895 3,872 15,931 13,984 Natural gas (Bcf) 19.4 16.9 17.5 69.5 61.1 Tota
Slide 11: 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 Basin Production (BOE/d) (BOE/d) Q4 2020 BOE up 14% sequentially; up 13% YoY Q4 2020 BOE up 17% sequentially; up 26% YoY 83,183 77,367 90,000 73,749 73,302 72,989 80,000 71,1
Slide 12: Elements of 2020 Cost Savings & Cash Flow Enhancements
Elements of 2020 Cost Savings & Cash Flow Enhancements $385 Million Realized Improvement vs. Original Guidance(1) Cost Savings + Cash Enhancements – Original Expectations ($ in millions) Incremental Cost Savings + Cash Enhancements Total 2020 Cost Savings + Cash Flow Enhancements ~53% of midpoint of
Slide 13: 2020 Capital Investment Summary
2020 Capital Investment Summary Full Year 2020 CapEx(1)(2) – $539 million (Below guidance estimate of $560 million(3) – was $565 million until Q4) (Delaware: Moved from 6 to 3 operated rigs by end of Q2 2020) 2020 Wells Turned to Sales – In-Line with Expectations Midstream $89 million(2) 16% Gross N
Slide 14: Delaware Basin – Continuing to Deliver Strong Well Results!
Delaware Basin – Continuing to Deliver Strong Well Results! Matador Acreage Running three rigs in Delaware Basin to TWIN LAKES ~40,500 gross / ~23,200 net acres start 2021 – two at Stateline and one at Wolf currently; adding fourth rig in March Current Activity and Plan: RANGER ARROWHEAD ~66,000 gro
Slide 15: Wells Completed and Turned to Sales – Q4 2020
Wells Completed and Turned to Sales – Q4 2020 During Q4 2020, Matador completed and turned to sales 14 gross (4.3 net) wells in its various operating areas, including five gross (2.6 net) operated wells and nine gross (1.7 net) non-operated wells. All of the five operated wells turned to sales w
Slide 16: Wells Completed and Turned to Sales – Full Year 2020
Wells Completed and Turned to Sales – Full Year 2020 During the full year of 2020, Matador completed and turned to sales 93 gross (47.8 net) wells. The Delaware Basin accounted for 89 gross (47.8 net) wells completed and turned to sales, including 53 gross (45.6 net) operated and 36 gross (2.2 n
Slide 17: 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 – IN SERVICE! Reeves Loving Ward 1 Mile Rustler Breaks Eddy Lea Natural Gas Gathering and Processing Processing
Slide 18: San Mateo – Recent Highlights and Performance
San Mateo – Recent Highlights and Performance October 2020 – Matador and Five Point(1) completed the successful merger of San Mateo I and San Mateo II into a single entity 2H 2020 – San Mateo II expansion projects completed, including: • Expansion of the Black River Processing Plant to designed
Slide 19: Hedging Profile – Remainder of 2021 and 2022
Hedging Profile – Remainder of 2021 and 2022(1) Oil Collars, Swaps, Puts Midland-Cushing Basis Swaps Natural Gas Collars ~45% hedged for 2021 ~50% hedged for 2021 ~85% hedged for Q1 2021 ~50-55% hedged for Q2-Q4 2021 WTI Collars 9,000 16.0 8,400 15.0 WTI Swaps 1,980 1,980 1,980 1,980 8,000 2,000 14.
Slide 20: Appendix
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Slide 21: Matador Resources and San Mateo Credit Facilities
Reaffirmed October 2020! Matador Resources and San Mateo 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 Deb
Slide 22: 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 securities analysts, inv
Slide 23: 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)
Slide 24: 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)
Slide 25: 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. T
Slide 26: 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. Y
Slide 27: Adjusted Net (Loss) Income and Adjusted Earnings (Loss) Per Diluted Common Share
Adjusted Net (Loss) Income and Adjusted Earnings (Loss) 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
Slide 28: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation This presentation includes the non-GAAP financial measure of adjusted free cash flow. This non-GAAP item is measured, on a consolidated basis for the Company and for San Mateo, as net cash provided by operating activities, adjusted for changes in working capita
Slide 29: Adjusted Free Cash Flow Reconciliation – Matador Resources Company
Adjusted Free Cash Flow Reconciliation Matador Resources Company The following table presents our calculation of adjusted free cash flow and reconciliation of adjusted free cash flow to the GAAP financial measure of net cash provided by operating activities. Three Months Ended Year Ended (In thousan
Slide 30: Adjusted Free Cash Flow Reconciliation – San Mateo (100%)
Adjusted Free Cash Flow Reconciliation San Mateo (100%) The following table presents the calculation of adjusted free cash flow and reconciliation of adjusted free cash flow to the GAAP financial measure of net cash provided by operating activities for San Mateo Midstream, LLC. Three Months Ended Ye
Slide 31: 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
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