Slide 1: May 2014 Investor Presentation
May 2014 Investor Presentation NYSE: MTDR Exhibit 99.1
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
Slide 3: Company Summary
Company Summary
Slide 4: Matador History
Founded by Joe Foran in 1983 – most participants are still shareholders today. Foran Oil funded with $270,000 in contributed capital from 17 friends and family members Sold to Tom Brown, Inc.(1) in June 2003 for an enterprise value of $388 million in an all-cash transaction Foran Oil & Matador
Slide 5: Company Overview
5 Company Overview Completed IPO of 14,883,334 shares (12,209,167 primary), including overallotment at $12.00/share, in March 2012 and Follow-on Offering of 9,775,000 shares, including overallotment at $15.25/share, in September 2013 Exchange: Ticker NYSE: MTDR Shares Outstanding(1) 65.8 million com
Slide 6: Matador Execution History – IPO vs. Today
Matador Execution History – IPO (February 7, 2012) vs. Today Grow with a focus on the Eagle Ford to create a more balanced portfolio Production 7.1 MBOE/d 414 Bbl/d of oil 6% oil 11.9 MBOE/d 7,344 Bbl/d of oil 62% oil Proved Reserves 27 MMBOE 1.1 MMBbl of oil 4% oil 55 MMBOE 16
Slide 7: Matador's Continued Growth
T h o u s a n d B b l Matador’s Continued Growth – 30 Year History 7 (1) 2014 estimated at top end of guidance range as provided on May 6, 2014. (2) 2014 estimates at midpoint of guidance range as provided on May 6, 2014. Estimated average realized prices for oil and natural gas used in these estima
Slide 8: Keys to Matador's Success
Keys to Matador’s Success 8 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 process Board and Special Advisor additions have strengthened Board skills and stewardship Propertie
Slide 9: Matador Resources Company Overview
9 Matador Resources Company Overview Market Capitalization(1) $1.6 billion Average Daily Production(2) 11,904 BOE/d Oil (% total) 7,344 Bbl/d (62%) Natural Gas (% total) 27.4 MMcf/d (38%) Proved Reserves @ 3/31/14 54.6 million BOE % Proved Developed 34% % Oil 31% 2014E CapEx $540 million % South Tex
Slide 10: Eagle Ford South Texas
a‘, {Mata ador ee ee Eagle Ford South Texas
Slide 11: 2014 South Texas Plan Details
2014 South Texas Plan Details 11 2014 projected capital expenditures of ~$318 million or ~59% of total 2-rig program with almost all of the 2014 South Texas capital budget directed to the Eagle Ford shale Drill and/or complete or participate in 50 gross (47.0 net) wells; 43 gross (40.0 net) we
Slide 12: Eagle Ford Overview
12 Eagle Ford Overview (1) At December 31, 2013. Includes two wells producing small volumes of oil from the Austin Chalk formation and two wells producing small quantities of natural gas from the San Miguel formation in Zavala County, Texas. (2) For the twelve months ended December 31, 2011. (3) For
Slide 13: Eagle Ford Well Costs and Estimated Ultimate Recovery
13 Eagle Ford Well Costs and Estimated Ultimate Recovery (“EUR”) Note: All acreage at May 6, 2014. EURs represent typical range of results over last 12 months by area. Well costs reflect actual costs of all 2013 wells by area. Karnes Uvalde Medina Zavala Frio Dimmit La Salle Webb Atascosa McMullen L
Slide 14: Operational Improvements
Overview 14 Operational Improvements (Normalized) Eagle Ford Drilling Costs / Drilled Foot(1) Eagle Ford Completion Costs / Completed Foot(2) West Central East West Central East Over the past two years, made significant progress and increased knowledge of how to drill, complete and produce Eagle F
Slide 15: Improvement in Drilling Efficiency – Moving Towards Batch Drilling
0 50,000 100,000 150,000 200,000 250,000 300,000 2014 2013 2012 2011 2010 Lateral Feet Drilled 15 La eral Fee Single Well Drilling PAD Drilling BATCH Drilling EXPLORATION DEVELOPMENT 1/3 RIG 2/3 RIG 2 RIGS 1 1/2 RIGS 2 RIGS 60 to 70% increase in Rig Efficiency from 2012 to 2014E! Improvement in Dril
Slide 16: 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 0 ft. 300 ft. 11,750 Bbl 650 Mlbs Gen 6 Evolution of Matador Eagle Ford Frac Design 16 Note: Figure depicts proppant and fluid volume pumped per 300 ft. of horizontal wellbore. (1) Mlbs = thousands o
Slide 17: Eagle Ford Well Cumulative Production by Generation
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 110,000 120,000 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 Cum ula tiv e P ro du cti on (B bl) Time (Days) GEN 2 (80 Acre) GEN 4 (80 Acre) GEN 5 (80 Acre) 0 10,000 20,000 30,000 40,000 50,000 60,000 7
Slide 18: Buda Wells Activity – Potential Test
Blackbrush O&G 10 Buda Completions May 2011 – Feb. 2014 Cum: 240 MBbl 1.13 Bcf TX American Resources Buchanan-1H 5/3/2013 11 mo avg: 331 Bbl/d 526 Mcf/d Cum: 109 MBbl 1.7 Bcf Dan A. Hughes Heitz Lease 4 Buda Completions Dec. 2011 – Feb. 2014 Cum: 900 MBbl 1.58 Bcf Crimson Exploration Beeler-6H Spud
Slide 19: Glasscock Ranch Seismic Mapping of Natural Fracture Trends
Buda Productive Area Glasscock Ranch Seismic Mapping of Natural Fracture Trends Note: Well information from public sources as of March 2014. 19 TX American Resources Buchanan-1H 5/3/2013 IP: 756 Bbl/d 556 Mcf/d 11 mo.cum: 109 MBbl 1.7 Bcf Glasscock Ranch – Frio South Survey: Amplitude at Time Slice
Slide 20: Artificial Lift – Benefits of Gas Lift
20 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 Time Note: Graph and data is for illustrative purposes only and not meant to re
Slide 21: Permian Basin
Permian Basin Southeast New Mexico and West Texas
Slide 22: Permian Basin 2014 Plan
22 2014 projected capital expenditures of ~$159 million or ~29% of total 1-rig program (temporary 2-rig overlap) working in Lea and Eddy Counties, NM and Loving County, TX Drill and/or complete or participate in 12 gross (9.8 net) wells; 10 gross (8.3 net) wells turned to sales Completion ta
Slide 23: Permian Basin
Permian Basin Total Gross Acres 86,953 acres Net Acres 56,199 acres Permian Basin (1) Presented as of December 31, 2013. (2) As of May 6, 2014. 23 Estimated 241 gross (177.7 net) engineered drilling locations(1); anticipated to grow over time Progress-to-date(2) Outperformance of first 3 initial
Slide 24: Wolf-Bone Geological Setting
265 mya End of Bone Springs – Warmer! Delaware Basin San Andres Yeso Abo Delaware Mountain Group 1st, 2nd, 3rd Bone Spring Sands Sands confined to channels and distributary systems 1st, 2nd, 3rd Bone Spring Carbonates Wolfcamp “A” Carbonates Wolfcamp “D” Carbonates More limited in areal extent Wolfc
Slide 25: Permian Basin Petroleum Systems and the Wolfcamp Kitchens
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 Extensive drilling, coring and geological studies since 19
Slide 26: 2014 Wells Targeting Multiple Benches
2014 Wells Drilled Targeting Multiple Benches in our Exploratory Program 26 Sand Carbonates (Limestones and Dolomites) Shale/ Mudstone Bone Spring Lime Upper Avalon Shale Lower Avalon Shale First Bone Spring Sand Second Bone Spring Carbonate Second Bone Spring Sand Third Bone Spring Carbonate Wolfca
Slide 27: Wolf / Loving Prospect Area
Wolf / Loving Prospect Area 27 10,943 gross (7,000 net) acres 50 gross (35.4 net) locations(1) Primary Targets Wolfcamp “A” 3rd Bone Spring Avalon Other Potential Targets 1st Bone Spring 2nd Bone Spring Wolfcamp “B” 2 wells planned for first half of 2014 Wolf Energy Wolf #1 (Ve
Slide 28: Ranger / Querecho Plains Prospect Area
Ranger / Querecho Plains Prospect Area 28 14,035 gross (9,847 net) acres 83 gross (59.6 net) locations(1) Primary Targets 2nd Bone Spring 3rd Bone Spring Wolfcamp “A”, “B” and “D” Other Potential Targets Delaware Avalon 1st Bone Spring Bone Spring Carbonates 6 wells planned f
Slide 29: Indian Draw / Rustler Breaks Prospect Area
29 17,128 gross (12,341 net) acres 108 gross (82.8 net) locations(1) Primary Targets Wolfcamp “B” 2nd Bone Spring Delaware Other Potential Targets Avalon 1st Bone Spring 3rd Bone Spring Wolfcamp “A” 3 wells planned for 2014 Indian Draw / Rustler Breaks Prospect Area Concho R.
Slide 30: Twin Lakes Prospect Area
Twin Lakes Prospect Area 30 32,417 gross (22,151 net) acres Primary Targets Wolfcamp “D” Strawn Abo Other Potential Targets Cisco/Canyon Devonian Glorieta/San Andres 1 vertical well planned for 2014 − Vertical pilot hole Vacuum Field Grayburg/ San Andreas/ABO 690 MMBbl, 1.1 Tcf M
Slide 31: Twin Lakes Area Cross Section
Twin Lakes Area Cross Section 31 A TEST VOLUMES: 268 Bbl/d oil 350 Mcf/d gas No water TEST VOLUMES: 118 Bbl/d oil 625 Mcf/d gas 1,155 Bbl/d water Wolfcamp “D” A’ ~400ft
Slide 32: Matador Permian – First Generation Frac Designs
Bone Spring 0 ft. 300 ft. Wolfcamp Matador Permian – First Generation Frac Designs 32 Note: Figure depicts proppant and fluid volume pumped per 300 ft. of horizontal wellbore. (1) Mlbs = thousands of pounds of proppant pumped. 550 Mlbs 600 Mlbs 11,750 Bbl 11,750 Bbl Fluid Volume Pumped Proppant Pump
Slide 33: Haynesville Shale
Haynesville Shale
Slide 34: 2014 Haynesville Shale Plan
2014 Tier 1 Haynesville Shale Plan 34 2014 projected capital expenditures of ~$62 million or about 11% of total Estimated participation in 56 gross (7.8 net) non-operated wells(1) Chesapeake may drill up to 30 wells at Elm Grove in 2014; estimated CapEx of $50 million 2014 capital plan inclu
Slide 35: Significant Option Value on Natural Gas
Significant Option Value on Natural Gas Significant acreage position in the Haynesville Recently added 3 sections to provide more operated drilling opportunities Also prospective for the Cotton Valley, Travis Peak / Hosston and other shallow formations Competitive well economics on Tier 1 Ha
Slide 36: Elm Grove Tier 1 Haynesville – Chesapeake Operated
0 25 50 75 100 125 150 175 200 225 250 275 300 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 $6.00 E sti m a te d Ra te o f Re tu rn, % Natural Gas Price, $/Mcf 8 Bcf - $8.0mm D&C Cost 9 Bcf - $8.0mm D&C Cost 10 Bcf - $8.0mm D&C Cost 8 Bcf - $9.0mm D&C Cost 9 Bcf - $9.0mm D&C Cost 10 Bcf - $9.0mm D&C Cost 36
Slide 37: 2014 Capital Investment Plan
2014 Capital Investment Plan
Slide 38: Summary and 2014 Guidance
38 Summary and 2014 Guidance (1) As of May 6, 2014, the Company guided investors to the top end of its oil production range. (2) Estimated 2014 oil and natural gas revenues and Adjusted EBITDA based on production guidance range. Estimated average realized prices for oil and natural gas used in these
Slide 39: 2014 Capital Investment Plan Summary
39 2014 Capital Investment Plan Summary Continue 3-rig program in 2014 – 2 rigs in the Eagle Ford and currently 2 rigs in the Permian Increased 2014E capital expenditures from $440 million to $540 million Eagle Ford development expected to be the major driver of our growth in 2014 Permian dr
Slide 40: Funding for 2014 Capital Investment Plan
Funding for 2014 Capital Investment Plan 40 Anticipate funding 2014 capital expenditures through operating cash flows and borrowings under revolving credit facility 1.8 million barrels of oil (between 70 and 75% of estimated oil production(1)) hedged for remainder of 2014, protecting cash flows
Slide 41: Appendix
= AN, jMatadar RESOURCES COMPANY Appendix
Slide 42: Matador's Continued Growth
$18.4 $15.2 $23.6 $49.9 $115.9 $191.8 2008 2009 2010 2011 2012 2013 $30.6 $19.0 $34.0 $67.0 $156.0 $269.0 2008 2009 2010 2011 2012 2013 7% 4% 2% 6% 37% 50% 2008 2009 2010 2011 2012 2013 1.5 2.3 3.9 7.0 9.0 11.7 2008 2009 2010 2011 2012 2013 Matador’s Continued Growth Average Daily Production (MBOE/d
Slide 43: Recent Semi-Annual Performance Metrics
Recent Semi-Annual Performance Metrics Through Year-End 2013 Oil Equivalent Production (BOE in thousands) Adjusted EBITDA(1) ($ in millions) Oil and Natural Gas Revenues ($ in millions) Oil Production (Bbl in thousands) 84 485 729 908 1,225 2H 2011 1H 2012 2H 2012 1H 2013 2H 2013 1,277 1,525 1,768 1
Slide 44: Board of Directors and Special Advisors
Board of Directors and Special Advisors – Expertise and Stewardship 44 Board Members and Advisors Professional Experience Business Expertise Dr. Stephen A. Holditch Director - Professor Emeritus and Former Head of Dept. of Petroleum Engineering, Texas A&M University - Founder and Former President, S
Slide 45: Proven Management Team – Experienced Leadership
Proven Management Team – Experienced Leadership 45 Management Team Background and Prior Affiliations Industry Experience Matador Experience Joseph Wm. Foran Founder, Chairman and CEO - Matador Petroleum Corporation, Foran Oil Company and James Cleo Thompson Jr. 33 years Since Inception Matthew V. Ha
Slide 46: 2014 Hedging Profile
46 2014 Hedging Profile – Hedges in Place for Remainder of 2014 At May 6, 2014, Matador had: 1.8 million barrels of oil hedged for remainder of 2014 at weighted average floor and ceiling of $88/Bbl and $99/Bbl, respectively 7.7 Bcf of natural gas hedged for remainder of 2014 at weighted average
Slide 47: Adjusted EBITDA Reconciliation
47 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
Slide 48: Adjusted EBITDA Reconciliation
48 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. Note: LTM is last 12 months through March 31, 2014.
Slide 49: Adjusted EBITDA Reconciliation
49 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. (In thousands) 12/31/2011 6/30/2012 12/31/2012 6/30
Slide 50: PV-10 Reconciliation
50 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