Matador Resources Company · NYSE:MTDR

Matador Resources — Investor Presentation (October 2015)

65 slides from Matador Resources's investor presentation, Oct 5, 2015

  1. Slide 1: October 2015 Investor Presentation

    October 2015 Investor Presentation NYSE: MTDR Exhibit 99.2

  2. Slide 2: Disclosure Statements

    2 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 19

  3. Slide 3: Company Summary

    merry aie 4 Matador J 4 cm dy A RESOURCES COMPANY a : ; Company Summary

  4. Slide 4: Company history and capital raising milestones

    2012, 2013 and 2014 capital spending focused primarily on developing Eagle Ford and transitioning to oil February 2012 IPO at $12.00; net cash proceeds of ~$136 million May 2014 Follow-on Offering at $25.00; net cash proceeds of ~$181 million September 2013 Follow-on Offering at $15.25; net cash pro

  5. Slide 5: Company Overview

    5 Company Overview Exchange: Ticker NYSE: MTDR Shares Outstanding(1) 85.4 million common shares Share Price(1) $23.05/share Market Capitalization(1) $2.0 billion (1) Shares outstanding as reported in the Form 10-Q for the quarter ended June 30, 2015 and share price as of October 2, 2015. (2) The Com

  6. Slide 6: Matador Resources Company – Operations Overview

    Matador Resources Company – Operations Overview Market Capitalization(1) $2.0 billion Avg. Daily Production – Q2 2015(2) 26,601 BOE/d Oil (% total) 13,847 Bbl/d (52%) Natural Gas (% total) 76.5 MMcf/d (48%) Proved Reserves @ 6/30/2015 87.0 million BOE % Proved Developed 39% % Oil 47% 2015E CapEx(3)

  7. Slide 7: Matador's Execution History – Doing What We Say

    Matador’s Execution History – “Doing What We Say” Oil Production  414 Bbl/d of oil  6% oil  4,916 Bbl/d of oil  46% oil  13,847 Bbl/d of oil  52% oil Proved Reserves  27 MMBOE  1.1 MMBbl of oil  4% oil  39 MMBOE  12.1 MMBbl of oil  31% oil  87 MMBOE  40.6 MMBbl of oil  47% oil PV-10(2

  8. Slide 8: Oil and Natural Gas Proved Reserves and PV-10 Growth By Area

    8 Eagle Ford $603.8 million, 58% Eagle Ford $540.4 million, 82% Haynesville/CV $193.4 million, 18% Permian $246.2 million, 24% Haynesville/CV $82.9 million, 13% Permian $31.9 million, 5% Eagle Ford $424.6 million, 45% Haynesville/CV $93.3 million, 10% Permian $424.8 million, 45% December 31, 2013 To

  9. Slide 9: Matador's Continued Production Growth Through June 30, 2015

    Average Daily Oil Production (Bbl/d) Average Daily Natural Gas Production (MMcf/d) Average Daily Total Production (MBOE/d) Oil Production Mix (% of Average Daily Production) 9 Growth since IPO Growth since IPO Growth since IPO Growth since IPO 91 422 3,317 5,843 9,095 11,206 13,847 2010 2011 2012 20

  10. Slide 10: Committed to Maintaining Strong Balance Sheet

    0.0x 0.0x 0.1x 1.5x 0.2x 0.7x 1.1x 1.3x 1.5x 1.6x 0.8x 1.0x 1.2x 0.6x 1.0x 1.3x 1.6x 1.4x 1.0x 2008 2009 2010 2011 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Today Net Debt / LTM EBITDA $76 $240 $256 $416 In itial P u b lic O ff e rin g  Preserved and enhanced liquidity t

  11. Slide 11: Previous Oil Price Declines Have Created Opportunities for Matador

    11 Previous Oil Price Declines Have Created Opportunities for Matador(1) Comparison of Major Oil Corrections and Major Matador Turning Points Since 1980 Date Event % Change in Oil Price Length of Oil Price Decline (in trading days) % Increase in Oil Price – 1-Year Post-Low 1986 Saudi Market Share Wa

  12. Slide 12: Keys to Matador's Success

    Keys to Matador’s Success Over Last 35 Years(1) 12  People  We have a strong, committed technical and financial team in place, and we continue to make additions and improvements to our staff, our capabilities and our processes  Board and Special Advisor additions have strengthened Board skills an

  13. Slide 13: Permian (Delaware) Basin

    Permian (Delaware) Basin Southeast New Mexico and West Texas

  14. Slide 14: Delaware Basin – A World Class Hydrocarbon System

    14 Delaware Basin – A “World Class” Hydrocarbon System DELAWARE BASIN CENTRAL BASIN PLATFORM MIDLAND BASIN Wolfcamp Simpson ~23,000’ Sediment Fill East West Source “Kitchens” Now Unconventional Resource Plays  70,000 square mile area  Up to 25,000 feet of multiple, stacked, petroleum systems  Ext

  15. Slide 15: Task at Hand – Understanding the Opportunities

    Task at Hand – Understanding the Opportunities 3rd Bone Spring Lower Avalon 800’ Objective: We want to drill and complete the best wells at the lowest cost. Challenge: How do we identify the best targets within multiple prospective intervals across a geologically complex basin? Matador’s geoscience

  16. Slide 16: Spectrum of Unconventional Play Types

    Spectrum of Unconventional Play Types In general there is no consensus on the what an “unconventional” reservoir is… At Matador, we think of an unconventional reservoir as a spectrum of play types. The distribution and quality of these play types are both spatially and temporally variable. Play type

  17. Slide 17: Determining Good, Better, Best

     Determining “Good, Better, Best” important as potential exceeds inter-formational stacked pay  2015 program will expand on intra-formational stacked pay tests performed in each asset area Wolf Area Type Log – Wolfcamp X/Y X Test Y Test 80 acre 100’ Rustler Breaks Type Log Wolfcamp B 350’ X Test Y

  18. Slide 18: Delaware Basin well results table

    Cumulative Production Recent Production Oil Eq. % Oil Natural Gas EUR(2) Well Months (BOE) Oil (Bbl/d) (Mcf/d) (MBOE) Ranger State 33-20S-35E RN #121H (2nd Bone Spring) 22 221,400 91% 160 150 650 Dorothy White #1H (Wolfcamp "A"/"X") 20.5 429,500 68% 320 620 1,050 Rustler Breaks 12-24S-27E RB #224H (

  19. Slide 19: Matador is a Significant Delaware Basin Player

    Matador is a Significant Delaware Basin Player MTDR MTDR MTDR  Matador’s 89,700 net acres place it among the largest operators in the Delaware Basin − Matador holds largest Delaware Basin acreage position among small and mid-cap publicly traded energy companies(1) − Matador is the second largest op

  20. Slide 20: Wolf Inventory – Multi-Pay Development Potential

    Wolf Inventory – Multi-Pay Development Potential ~660’ Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring Wolfcamp X/Y Wolfcamp A 4 66 Eval. Ongoing 34 66 66 66 302 Full Development Location Gross Wells Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring $5.5 – $6.5 million 450

  21. Slide 21: Wolf Area Wolfcamp A/X Wells Performing Above Expectations

    10 100 1,000 10,000 0 50 100 150 200 250 300 350 400 450 500 550 600 650 Production R ate, BO E/ d Time, Days Dorothy White #1H Norton Schaub #201H Norton Schaub #2010H Billy Burt #202H Billy Burt #203H 500 MBOE Type Curve 700 MBOE Type Curve 1,000 MBOE Type Curve Wolfcamp "A"/"X" horizontals in Lov

  22. Slide 22: Rustler Breaks Inventory – Multi-Pay Development Potential

    Rustler Breaks Inventory – Multi-Pay Development Potential Brushy Canyon Avalon 1st Bone Spring 2nd Bone Spring 3rd Bone Spring X/Y Wolfcamp B ~8 0 0 ’ 65 73 73 77 69 77 65 499 Full Development Location Gross Wells Development Well D&C(1) CapEx EUR(2) (MBOE) Bone Spring $4.5 – $5.5 million 300 – 600

  23. Slide 23: First Three-Zone Stacked Lateral Test at Rustler Breaks

    Historically oil productive interval. Matador’s First Three-Zone Stacked Lateral Test at Rustler Breaks Bone Spring Lime Upper Avalon Shale Lower Avalon Shale First Bone Spring Sand Second Bone Spring Carbonate Third Bone Spring Carbonate Wolfcamp / Pennsylvanian Strawn Wolfcamp “C” Third Bone Sprin

  24. Slide 24: Rustler Breaks Wolfcamp B Wells Performing Above Expectations

    10 100 1,000 10,000 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 380 400 420 440 460 480 500 520 Production R ate, BO E/ d Time, Days Rustler Breaks #224H Tiger #224H 500 MBOE Type Curve 600 MBOE Type Curve 700 MBOE Type Curve 1000 MBOE Type Curve Wolfcamp "B" horizontals in

  25. Slide 25: Rustler Breaks Wolfcamp A/X-Y Wells, Off to Strong Start

    10 100 1,000 10,000 0 20 40 60 80 100 120 140 160 180 200 Production R ate, BO E/ d Time, Days Guitar #202H Tiger #204H 500 MBOE Type Curve 700 MBOE Type Curve Wolfcamp "A"/"X-Y" horizontals in Eddy County, NM Guitar 10-24S-28E RB #202H produced 114,500 BOE (79% oil) in 6 months - "X-Y" Tiger 14-24S

  26. Slide 26: Ranger Inventory – Multi-Well Development Potential

    Ranger Inventory – Multi-Well Development Potential ~1,320’ 1st Bone Spring 2nd Bone Spring 3rd Bone Spring X/Y Wolfcamp A-D ~7 5 0 ’ 43 55 30 70 6 204 1 mile MRC Horizontal Drilled Full Development Location Full Development Spacing Pattern (Cross-Section View) Gross Wells Development Well D&C(1) Ca

  27. Slide 27: Ranger Area Second Bone Spring Wells Performing Above Expectations

    10 100 1,000 10,000 0 100 200 300 400 500 600 P roduction R a te, BO E /d Time, Days Ranger #121H Pickard #121H 400 MBOE Type Curve 600 MBOE Type Curve 2nd Bone Spring horizontals in Ranger Area – Lea County, NM Ranger State 33-20S-35E RN #121H(1) produced 221,400 BOE (91% oil) in 22 months Pickard

  28. Slide 28: HEYCO Acreage and 2nd Bone Spring Activity

    28 Matador Acreage 2nd Bone Spring Non-Op Activity Matador Well Plans 2nd Bone Spring  Most HEYCO acreage is Federal acreage  Most held by production by older, vertical wells  Typically 87.5% NRI on most Federal acreage  Contiguous acreage aids in full development and minimizes costs for pads, f

  29. Slide 29: Future Bit Technology – The Evolution of the PDC bit

    Future Bit Technology – The Evolution of the PDC bit 29  Matador continues to be at the forefront of new bit technology  Smith Bits latest technology StingBlade design  StingBlade design features  Alternating Stinger/PDC cutters  Stinger cutters cut troughs in the formation with the PDC cutters

  30. Slide 30: New Rig Technology for Horizontal Drilling

     7,500 psi Pressure Rating  Estimated reduction in drilling time of 20 to 25% in the lateral on Wolfcamp wells  Telescoping Flex-joint  Estimated reduction in drilling time of 12 to 18 hours per well  Integrated Mud-Gas Separator  Estimated savings of 50% compared to rental separator  BOP Wra

  31. Slide 31: Simultaneous Operations (Sim-Ops) Capable Rigs

    Latest Technology: Simultaneous Operations (Sim-Ops) Capable Rigs 31 Conventional Drilling Configuration Sim-Ops Capable with V-door turned 90° Space available for frac operations while simultaneously drilling on the same pad Drilling rig must leave location prior to frac operations

  32. Slide 32: Improving Wolfcamp Drilling Times Significantly in 2015

    43 32 35 26 22 15 0 5 10 15 20 25 30 35 40 45 50 Loving County Wolfcamp Eddy County Wolfcamp Dr illin g Da y s Historical Well 2015 Planned Well Recent Well Improving Wolfcamp Drilling Times Significantly in 2015 32 *Historical days averaged from 2014 wells *Recent days from Billy Burt 90-TTT-B33 WF

  33. Slide 33: Cost Reduction Metrics (Drilling and Completion)

    Completion  Overall cost reduced by 50% since first well  Cost of pumping and drill out has driven down costs  Drill out days down from using micro trips  Lowers the overall time per plug Cost Reduction Metrics (Drilling and Completion) 33 Drilling  Overall cost reduced by 43% since first well

  34. Slide 34: Artificial Lift Reducing Natural Production Declines

    34 Flowing Rod Pumping Gas Lifting 300 Bbl/d 100 Bbl/d Accelerated Production Benefits of Gas Lift • Accelerates production • Reduces LOE • Lower maintenance • Helps wells recover faster from offset fracs Artificial Lift Reducing Natural Production Declines Time Note: Graph and data is for illustrat

  35. Slide 35: Evolution of Permian Basin Frac Design

    35 7,500 Bbl 9,000 Bbl 8,400 Bbl 600 Mlbs 420 Mlbs 500 Mlbs 375 ft. 300 ft. 50 ft. 75 ft. 210 ft. 35 ft. Gen 1 Gen 2 2,000 lbs/ft 1,333 lbs/ft 40 Bbl/ft 20 Bbl/ft 50’ cluster spacing 75’ cluster spacing Gen 1 Gen 2 2,000 lbs/ft 2,000 lbs/ft 40 Bbl/ft 30 Bbl/ft 35’ cluster spacing 50’ cluster spacing

  36. Slide 36: Well rate of return versus realized oil price

    0 20 40 60 80 100 120 140 160 180 200 40 45 50 55 60 65 70 75 80 ROR , % Realized Oil Price, $ Rustler Breaks (Wolfcamp A-X/Y) 500 - 700 MBOE 700 MBOE, $6.5 MM D&C 700 MBOE, $5.5 MM D&C 500 MBOE, $6.5 MM D&C 500 MBOE, $5.5 MM D&C uses $3 flat Gas price 0 20 40 60 80 100 120 140 40 45 50 55 60 65 7 7

  37. Slide 37: Significant Delaware Basin Inventory

    Significant Delaware Basin Inventory  Matador has identified 1,445 gross (960 net) locations(1)  This inventory does not yet include the HEYCO properties (mostly Arrowhead prospect area) or Twin Lakes locations Formation Gross Locations Net Locations Delaware Group 109 67 Avalon 160 112 1st Bone S

  38. Slide 38: Midstream

    a‘, . 4 Matador ae cm Wore = Midstream

  39. Slide 39: Longwood Gathering and Disposal Systems in Delaware Basin

    39  Loving County, Texas  Natural gas gathering and compression  Water gathering  Salt water disposal  Oil gathering  Cryogenic natural gas processing plant  Sold to EnLink for ~$143 million(2)  Eddy County, New Mexico  Natural gas gathering and compression  Water gathering  Salt water di

  40. Slide 40: Loving County, Texas – Biggest Midstream Project to Date

    40 Loving County, Texas – Biggest Midstream Project to Date  Cryogenic natural gas processing plant – sold to EnLink for ~$143 million(1)  Natural gas gathering and compression  Water gathering  Oil gathering  Salt water disposal SWD = Salt Water Disposal Retained Sold to EnLink (1) Excluding c

  41. Slide 41: Sale of Loving County Gas Gathering & Processing Assets

    Summary: Sale of Loving County Gas Gathering & Processing Assets (1) A subsidiary of EnLink Midstream Partners, LP (NYSE: ENLK) (2) Excluding customary purchase price adjustments. (3) Net Debt at October 1, 2015. LTM Adjusted EBITDA at June 30, 2015. Adjusted EBITDA is a non-GAAP financial measure.

  42. Slide 42: Eagle Ford "Oil Bank"

    Citar a Wor nesounces dor Eagle Ford “Oil Bank”

  43. Slide 43: Eagle Ford Is Still a Valuable Asset

    43 Eagle Ford Is Still a Valuable Asset – 12,000 BOE/d in Q2 2015 Note: All acreage at August 31, 2015. Some tracts not shown on map. (1) At December 31, 2014. Karnes Uvalde Medina Zavala Frio Dimmit La Salle Webb Atascosa McMullen Live Oak Bee Goliad Dewitt Gonzales Wilson San Antonio Glasscock Ran

  44. Slide 44: Evolution of Matador Eagle Ford Frac Design

    Gen 2 Gen 3 Gen 4 Gen 5 5,770 Bbl 7,825 Bbl 9,550 Bbl 11,750 Bbl 375 Mlbs 500 Mlbs 405 Mlbs 515 Mlbs 11,750 Bbl 650 Mlbs Gen 6 44 Note: Figure depicts proppant and fluid volume pumped per 300 ft. of horizontal wellbore. (1) Mlbs = thousands of pounds of proppant pumped. Fluid Volume Pumped Proppant

  45. Slide 45: Haynesville Shale "Gas Bank"

    Haynesville Shale “Gas Bank”

  46. Slide 46: 2015 Haynesville Non-Op Program

    46 2015 Haynesville Non-Op Program  Estimated capital expenditures of ~$25 million for non-operated well participation interests ˗ Only ~6% of 2015 estimated capital expenditures ˗ Originally budgeted ~$15 million for 2015  Haynesville & Cotton Valley average daily natural gas production up over 3

  47. Slide 47: Economics of Tier 1 Haynesville Wells at Elm Grove

    47 Note: Individual well economics only. Excludes costs prior to drilling (i.e. acquisition or acreage costs). Economics use a NRI / WI of 85% but actual interests vary. D&C cost = drilling and completion cost. 0 50 100 150 200 250 300 350 400 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 R a te o f R e turn

  48. Slide 48: 2015 Updated Capital Investment Plan

    2015 Updated Capital Investment Plan

  49. Slide 49: 2015 Updated Capital Investment Plan

    49 2015 Updated Capital Investment Plan  At the beginning of 2015, reduced drilling program from 5 rigs to 2 rigs due to lower commodity prices, with primary focus on Permian (Delaware) Basin  In late July 2015, took delivery of a third rig in the Delaware Basin  Currently operating 3 rigs – all

  50. Slide 50: 2015E Oil and Natural Gas Production

    0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 2011 2012 2013 2014 2015E Eagle Ford Permian 422 3,318 5,843 9,095 12,192 (1)(2) 0 10 20 30 40 50 60 70 80 2011 2012 2013 2014 2015E Haynesville/CV Eagle Ford Permian 39.8 34.1 35.4 41.9 72.6 (1)(3) 2015E Oil Production  Estimated oil production of 4.4

  51. Slide 51: 2015E Revenues and Adjusted EBITDA

    $23.6 $49.9 $115.9 $191.8 $262.9 $225.0 $0.0 $100.0 $200.0 $300.0 2010 2011 2012 2013 2014 2015E $34.0 $67.0 $156.0 $269.0 $367.7 $295.0 $0.0 $100.0 2 . $300.0 $400.0 2010 2011 2012 2013 2014 2015E $76.39 $93.80 $101.86 $99.79 $87.37 $49.73 $3.75 $3.62 $2.59 $4.35 $5.08 $2.92 Realized Oil and Natura

  52. Slide 52: 2015E CapEx

     2015E CapEx of ~$425 million − Revised from $350 million on August 4, 2015 − Excluding CapEx associated with HEYCO merger or associated JVs  2015E CapEx was highest in Q1 2015 – falls quickly thereafter − Q1 at $159 million (37%); Q2 at $107 million (25%); Q3 and Q4 at $159 million total (remaini

  53. Slide 53: Summary and 2015 Guidance

    53 Summary and 2015 Guidance  Moved from 5 rigs to 2 rigs in early 2015; currently operating 3 rigs in Delaware Basin − Added third drilling rig in the Delaware Basin in late July 2015  Delaware drilling focused on Wolf development and further delineation of Ranger and Rustler Breaks prospect area

  54. Slide 54: Appendix

    Fan . ) (Matador Pm cm ween el’ = Appendix

  55. Slide 55: Proven Management Team – Experienced Leadership

    Proven Management Team – Experienced Leadership Management Team Background and Prior Affiliations Industry Experience Matador Experience Joseph Wm. Foran Founder, Chairman and CEO - Matador Petroleum Corporation, Foran Oil Company, James Cleo Thompson Jr. 34 years Since Inception Matthew V. Hairford

  56. Slide 56: Board of Directors – Expertise and Stewardship

    Board of Directors – Expertise and Stewardship Board Members Professional Experience Business Expertise David M. Laney Lead Director - Past Chairman, Amtrak Board of Directors - Former Partner, Jackson Walker LLP Law and Investments Reynald A. Baribault Director - Vice President / Engineering and Co

  57. Slide 57: Special Board Advisors

    Special Board Advisors Professional Experience Business Expertise Ronney F. Coleman - Retired President – North America, Archer - Former Vice President North America Pumping, BJ Services Co. Oilfield Services Marlan W. Downey - Retired President, ARCO International - Former President, Shell Pecten I

  58. Slide 58: Hedging Profile

    420,000 680,000 810,000 810,000 390,000 390,000 390,000 390,000 $99.75 $87.72 $84.60 $84.60 $74.64 $74.64 $74.64 $74.64 $83.00 $70.38 $67.11 $67.11 $47.46 $47.46 $47.46 $47.46 $0 $50 $100 $150 $200 $250 $300 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Q1 2015 Q2 2015 Q3

  59. Slide 59: Credit Agreement Status

     Strong, supportive bank group led by Royal Bank of Canada  Borrowing base at $375 million based on December 31, 2014 reserves  Bank group affirmed $375 million conforming borrowing base in April 2015  Retained full $375 million conforming borrowing base upon closing of Senior Notes offering  N

  60. Slide 60: North Ranger-Twin Lakes Area Pennsylvanian/Wolfcamp Production Distribution

    North Ranger-Twin Lakes Area Pennsylvanian/Wolfcamp Production Distribution 60 A A’ MATADOR RESOURCES COMPANY PICKARD STATE 20-18-34 #2H Northern Delaware Horizontal Pennsylvanian/Wolfcamp Shale Test Vacuum Field Townsend Field 166 wells 25 million Bbl, 49 Bcf Sanmal & Leamex Fields Corbin Field Kem

  61. Slide 61: Pennsylvanian/Wolfcamp Hybrid Production Target Interval

    0 1 5 0 G R (C TR ) 2 2 0 0 0 0 L L D 0 .3 0 D P H I 0 .3 0 N P H I 0 1 5 0 GR (C TR ) 0 .3 0 D P H I 0 .3 0 N P H I 0 1 5 0 G R (C TR ) 2 2 0 0 0 0 ILM 2 2 0 0 0 0 L L D 0 .3 0 D P H I 0 .3 0 N P H I 0 1 5 0 GR (C TR ) 2 2 0 0 0 0 ILM 2 2 0 0 0 0 L L D 0 .3 0 D P H I 0 .3 0 N P H I 0 1 5 0 G R (C T

  62. Slide 62: Adjusted EBITDA Reconciliation

    62 Adjusted EBITDA Reconciliation This investor 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 consolidated financial statements, such as industry analysts, investo

  63. Slide 63: 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. 63 (In thousands) 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2

  64. Slide 64: 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. 64 Note: LTM is last 12 months. LTM at LTM at LTM at (

  65. Slide 65: PV-10 Reconciliation

    65 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

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