Matador Resources Company · NYSE:MTDR
Matador Resources — Shareholder Meeting (June 2024)
69 slides from Matador Resources's shareholder meeting presentation, Jun 13, 2024
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 13, 2024
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 Resources Investor Relations Contact Company (“Matador” or the “Company”) during the course of this presentation includes “forward-looking statements” with
Slide 3: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 13, 2024
Slide 4: Opening Remarks
Opening Remarks Joseph Wm. Foran, Founder, Chairman and CEO June 13, 2024
Slide 5: 40+ Years of Generating Shareholder Value
40+ YEARS OF GENERATING SHAREHOLDER VALUE 1983 2003 Today “Matador I” “Matador II” Initial Capital: $270,000 Initial Capital: $6 million Sale Price: $388 million Current Market Cap: $7.5 billion(1) (1) Closing share price as of June 11, 2024. 5
Slide 6: MTDR Shares Significantly Outperforming since IPO!
MTDR Shares Significantly Outperforming since IPO! Since IPO (February 2, 2012) through June 11, 2024 close MTDR TOP PERFORMER! MTDR all time high @ $73.78! MTDR +407% S&P 500 +305% R2000 +149% 0% Oil (-19%) XOP (-32%) *COVID19 / Saudi-Russia Oil Price War MTDR all time low @ $1.11 Source: Bloomberg
Slide 7: Profitable (and Consistent) Production Growth at a Measured Pace
Profitable (and Consistent) Production Growth at a Measured Pace 93,000 75,457 Daily Oil Production 60,119 (Bbl/d) 48,876 43,526 38,312 30,524 21,510 12,306 13,924 9,095 5,844 3,317 (1) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024E Note: CAGR = Compound Annual Growth Rate. 7 (1)
Slide 8: Matador's Strategic Bolt-On Acquisition of Ameredev
Matador’s Strategic Bolt-On Acquisition of Ameredev TWIN LAKES ARROWHEAD RANGER ANTELOPE RIDGE RUSTLER BREAKS Matador acquiring high STATELINE quality Ameredev assets for $1.905 B(1) WEST TEXAS Matador Acreage (158,300 net) Ameredev Acq. Acreage (33,500 net) Combined Acreage: (191,800 net) Note: All
Slide 9: Ameredev Acquisition Enhances Status as Top Producer in New Mexico
Ameredev Acquisition Enhances Status as Top Producer in New Mexico Matador estimated to be the 7th Largest Producer in New Mexico Pro Forma for Ameredev Acquisition 450,000 600,000 400,000 550,000 350,000 300,000 Q4 2023 BOE/Day 250,000 #7 Producer 200,000 #8 Producer 150,000 100,000 50,000 #20 Prod
Slide 10: Matador + Ameredev: +26% Pro Forma Reserves Increase
Matador + Ameredev: +26% Pro Forma Reserves Increase Total Proved Reserves: 577.8 million BOE (59% oil) for Combined Company(1) 460.1 million BOE 59% Oil Standardized Measure = $6.11B PV-10(2) = $7.70B 460.1 Million BOE (Total Proved Reserves) +117.7 Million BOE (Total Proved Reserves) 117.7 million
Slide 11: Introduction of Board Members
Introduction of Board Members June 13, 2024
Slide 12: Board of Directors - Expertise and Stewardship
Board of Directors - Expertise and Stewardship Professional • Matador Resources Company, Matador Petroleum Corporation, Foran Oil Company Experience • J. Cleo Thompson, Jr., Lawyer • Oil and Gas Exploration and Development Business • Finance and Strategic Planning Expertise • Law and ESG Joseph Wm.
Slide 13: Board of Directors - Expertise and Stewardship
Board of Directors - Expertise and Stewardship • Former ESG Coordinator, Matador Resources Company Professional • Former Senior Investor Relations officer and M&A Manager, Royal Dutch Shell PLC Experience • Former Corporate Strategy, NYSE Euronext and Intercontinental Exchange Group • ESG Business •
Slide 14: Board of Directors - Expertise and Stewardship
Board of Directors - Expertise and Stewardship • Professor of Law, Southern Methodist University Dedman School of Law Professional • BS in Petroleum Engineering Experience • Former public Oil and Gas Company In-House Legal Counsel • Law and ESG Business • Petroleum Engineering and Midstream Operatio
Slide 15: Board Advisor - Expertise and Stewardship
Board Advisor - Expertise and Stewardship • Former Senior Executive, Shell Oil Company Professional • Former CFO and Board member, Shell Midstream Partners Experience • Former Managing Director Natural Resources and Energy, UBS Securities • Accounting, Finance and Capital Markets Business • Midstrea
Slide 16: Recognition of Julia P. Forrester Rogers
Recognition of Julia P. Forrester Rogers June 13, 2024
Slide 17: Distinguished Shareholder Advisory Committee for Board Nominations
Distinguished Shareholder Advisory Committee for Board Nominations Committee Member Professional Experience - President, Stewart Home School J. Barry Banker - Original Matador investor R. Gaines Baty* - CEO, R. Gaines Baty Associates, Inc. – Executive Search Director - Published Author - Of Counsel,
Slide 18: Recognition of Senior Staff and Special Guests
Recognition of Senior Staff and Special Guests June 13, 2024
Slide 19: Availability of KPMG LLP
Availability of KPMG LLP Chris Stakem of KPMG LLP, the Company’s independent registered public accounting firm is in attendance today Mr. Stakem is available to respond to any questions you may have 19
Slide 20: Other Important Items
Other Important Items To receive mail correspondence or routine investor alerts via our website, please email your request to investors@matadorresources.com Press releases and investor presentations are also available on our website, www.matadorresources.com 20
Slide 21: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 13, 2024
Slide 22: Summary of Proposals for Consideration at Annual Meeting
Summary of Proposals for Consideration at Annual Meeting Proposal 1 – Election of Directors Proposal 2 – Advisory Vote to Approve Named Executive Officer Compensation Proposal 3 – Advisory Vote on Frequency of Future Advisory Votes to approve Named Executive Officer Compensation Proposal 4 –
Slide 23: Introduction of Director Nominees
Introduction of Director Nominees R. Gaines Baty, Deputy Lead Independent Director Chair, Nominating Committee June 13, 2024
Slide 24: Proposal 1 – Election of Directors
Proposal 1 – Election of Directors Director Nominees Class I Directors (Term Expiring at 2027 Annual Meeting of Shareholders) Professional • Retired Partner (energy focus), PricewaterhouseCoopers LLP (PwC) Experience • Certified Public Accountant Business • Public Accounting - Longtime Service to
Slide 25: Proposal 1 – Election of Directors (cont.)
Proposal 1 – Election of Directors (cont.) Director Nominees Class I Directors (Term Expiring at 2027 Annual Meeting of Shareholders) • Retired Executive Vice President, Compliance and Legal Affairs, Children’s Health Professional System of Texas Experience • Retired Partner, Chair – United States
Slide 26: Advisory Vote on Named Executive Officer Compensation
Advisory Vote on Named Executive Officer Compensation R. Gaines Baty, Deputy Lead Independent Director Chair, Strategic Planning and Compensation Committee June 13, 2024
Slide 27: Proposal 2 – Advisory Vote on 2023 Named Executive Officer Compensation
Proposal 2 – Advisory Vote on 2023 Named Executive Officer Compensation The Company seeks a non-binding advisory vote from its shareholders regarding the 2023 compensation of its Named Executive Officers as described in the Proxy Statement “Resolved, that the compensation paid to the Company’s N
Slide 28: Advisory Vote on Frequency of Future Advisory Votes
Advisory Vote on Frequency of Future Advisory Votes R. Gaines Baty, Deputy Lead Independent Director Chair, Strategic Planning and Compensation Committee June 13, 2024
Slide 29: Proposal 3 – Advisory Vote on Frequency of Future Advisory Votes
Proposal 3 – Advisory Vote on Frequency of Future Advisory Votes Company seeks a non-binding advisory vote from its shareholders regarding the desired frequency for holding future advisory votes to approve the compensation of our Named Executive Officers as described in our annual proxy statements
Slide 30: Ratification of Public Accounting Firm
Ratification of Public Accounting Firm William M. Byerley, Director Chair, Audit Committee June 13, 2024
Slide 31: Proposal 4 – Ratification of the Appointment of KPMG LLP
Proposal 4 – Ratification of the Appointment of KPMG LLP KPMG LLP (“KPMG”) served as the Company’s independent registered public accounting firm for the fiscal year ended December 31, 2023 The Audit Committee has appointed KPMG as the Company’s independent registered public accounting firm for t
Slide 32: Summary of Proposals for Consideration at Annual Meeting
Summary of Proposals for Consideration at Annual Meeting Proposal 1 – Election of Directors Proposal 2 – Advisory Vote on Frequency of Future Advisory Votes to approve Named Executive Officer Compensation Proposal 3 – Advisory Vote on Frequency of Future Advisory Votes Proposal 4 – Ratificat
Slide 33: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 13, 2024
Slide 34: Chairman's Remarks
Chairman’s Remarks Joseph Wm. Foran, Founder, Chairman and CEO June 13, 2024
Slide 35: Matador Resources Company – Company Highlights
Matador Resources Company – Company Highlights DELAWARE BASIN 191,800 Net Acres Core Delaware Basin E&P Assets Large Multi-Year Drilling Inventory TWIN LAKES Top 10 Producer in New Mexico(1) #7 in Total Production(1) RANGER ARROWHEAD Profitable Midstream Business ANTELOPE RIDGE Providing Flow Assura
Slide 36: Continuing to Build Our Delaware Basin Position!
Continuing to Build Our Delaware Basin Position! The “Brick-by-Brick” Approach 2012 2017 June 1, 2024(1) ~7,500 Net Acres ~114,000 Net Acres ~191,800 Net Acres EDDY LEA EDDY LEA EDDY LEA LOVING LOVING LOVING Matador Acreage (158,300 net) Ameredev Acq. Acreage (33,500 net) Matador Acreage Matador Acr
Slide 37: Steady Growth, Measured Pace
Steady Growth, Measured Pace 460.1 MMBOE 500 3.83 BOE/share 4.00 450 3.50 Total Proved Reserves, MMBOE 400 3.00 350 26% CAGR BOE Per Share 2.50 300 250 2.00 200 1.50 150 1.00 100 0.50 50 0 0.00 IPO 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q4 2023 2023 Oil Gas BOE/Share Note: The reserves es
Slide 38: Synergistic Midstream Assets Continue to Add Value to Matador
an Mate and – Synergistic Midstream Assets Continue to Add Value to Matador Eddy County, NM ~700 miles of three-stream pipelines(1) Ranger Gathering Assets Stebbins ~595 miles of three-stream pipelines(1) (oil, natural gas and water) Oil Gathering ~400,000 acre joint development area with a subsidia
Slide 39: Matador's Strategic Bolt-On Acquisition of Ameredev
Matador’s Strategic Bolt-On Acquisition of Ameredev TWIN LAKES RANGER ARROWHEAD ANTELOPE RIDGE RUSTLER BREAKS Matador acquiring high STATELINE quality Ameredev assets for $1.905 B(1) WEST TEXAS Matador Acreage (158,300 net) Ameredev Acq. Acreage (33,500 net) Combined Acreage: (191,800 net) Note: All
Slide 40: Matador + Ameredev Combination Further Enhances Shareholder Value
Matador + Ameredev Combination Further Enhances Shareholder Value + MTDR Pro Forma Standalone Enterprise Value $9.7 billion (1) $11.6 billion +$1.9B Net Acres (Delaware) (2) 158,300 191,800 +33,500 net acres Avg. Daily Production 157,250 BOE/d (3) 182,750 BOE/d (4) +25,500 BOE/d % Oil 59% 60% +1% Ne
Slide 41: Steadily Increasing Fixed Dividend
Steadily Increasing Fixed Dividend Returning Value to Consistent Growth Sustainable Shareholders Strong, Simple Balance Sheet 8x Since Q1 2021 Leverage Ratio of 0.75x(1) $176 Million Since 2021(2) Annualized Dividend $0.80 $0.60 $0.40 $0.20 $0.10 Q1 2021 Q4 2021 Q3 2022 Q1 2023 Q4 2023 (1) Defined a
Slide 42: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 13, 2024
Slide 43: Lead Independent Director's Remarks
Lead Independent Director’s Remarks Timothy E. Parker, Lead Independent Director Chair, Capital Markets and Finance Committee June 13, 2024
Slide 44: Operations Report
Operations Report Reynald A. Baribault, Director Chair, Operations and Engineering and Prospect Committees June 13, 2024
Slide 45: Trimul-Frac Pilot – Dagger Lake South Well Pad – Q1 2024
Trimul-Frac Pilot – Dagger Lake South Well Pad – Q1 2024 Average Completed Lateral Footage per Day 3,465 2,452 2023 Trimul Trimul-frac 24 hour $350,000 1.2MM Bbls of footage savings per Pilot record: 4,410’ well recycled water 45
Slide 46: Innovative Completion Operations
Innovative Completion Operations Zipper Frac Simul-Frac Trimul-Frac 2021 2024 • Single well stimulation • Two well simultaneous • Three well simultaneous stimulation stimulation • 25% efficiency improvement (1) • 75% efficiency improvement (1) • $250,000 savings per well (1) • $350,000 savings per w
Slide 47: Simul-Frac and Trimul-Frac Operations
Simul-Frac and Trimul-Frac Operations Estimated Savings - $35 million Since 2021 Successful “Simul-Frac” – Saves ~$250,000 per well “Trimul-Frac” “Trimul-Frac” – Saves ~$350,000 per well Pilot Test Completed Lateral Footage per day Introduced Simul-frac 2020 2021 2022 2023 Q1 2024 36% 44% 63% >70% S
Slide 48: Increased Use of Recycled Water for Fracturing Operations Across the Basin
Increased Use of Recycled Water for Fracturing Operations Across the Basin Bbls(1) of recycled produced Estimated cost savings(2) as ~57.8 ~$36.5 water utilized for fracture alternative to fresh water sourcing million stimulation since 2015 million & produced water disposal Percentage of Wells Compl
Slide 49: U-Turn Wells – Innovative Development Tool
U-Turn Wells – Innovative Development Tool JJ Wheat Project Realized Successfully Drilled First Potential Full 640-acre Section Multi-Reservoir Development $10 Million in Savings New Mexico U-Turn Well Compared to Four 1-mi Wells Spud to TD: 12.1 Days JJ Wheat #2021H JJ Wheat #2021H 24-hr IP: Drille
Slide 50: Record Setting MAXCOM Operations Center Results
Record Setting MAXCOM Operations Center Results Over 6 Years of Operation 280 Matador Drilling Records and $47 Million Estimated Savings To Date Delaware Drilling Records Spud to Total Depth – 2 Mile Lateral: 8.3 Days (D Edelstein #113H) Spud to Total Depth – 2.5 Mile Lateral: 14.0 Days (S Camam
Slide 51: Financial Update
Financial Update Brian J. Willey EVP and CFO June 13, 2024
Slide 52: Peer Leading Productivity – Better Wells for Less Money
Peer Leading Productivity – Better Wells for Less Money MTDR Leads Peer Group in Estimated Ultimate Recovery (EUR) for Wells Turned to Production Since 2020 Average Oil EUR (MBbl) MTDR Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 Source: Enverus data accessed June 2024. 52 Includes all op
Slide 53: Peer Leading Profitability – Better Wells for Less Money
Peer Leading Profitability – Better Wells for Less Money MTDR Leads Peer Group in Oil and Natural Gas Revenue Per BOE(1) and Netbacks per BOE(1)(2) $45 $60 $40 $50 $35 $30 $40 $25 $30 $20 $20 $15 $10 $10 $5 $0 $0 Oil and Natural Gas Revenue per BOE(1) Netbacks per BOE(1)(2) Source: Bloomberg LP and
Slide 54: Strong Well Results from the Advance Acquisition
Strong Well Results from the Advance Acquisition 21 Dagger Lake South Wells Turning to Sales in Q2 2024 21 Margarita Wells Ranger Selected 24-hour IP Test Results Average 1,600 BOE/d (21 wells) (84% oil) Stebbins #16H 2,593 BOE/d (3rd Bone Spring Carbonate) (86% oil) Margarita Highlights 21 gross
Slide 55: Matador's Strategic Bolt-On Acquisition of Ameredev
Matador’s Strategic Bolt-On Acquisition of Ameredev ACQUISITION DETAILS Ameredev Acquisition Overview TWIN LAKES Price: $1.905 billion(1) Strategic bolt-on in the Northern Delaware Basin 33,500 contiguous net acres 82% Held-by-Production Effective Date: 6/1/2024 Includes ~19% stake in Pi
Slide 56: Ameredev Acquisition Enhances MTDR's Peer Leading EURs
Peer Leading Productivity Ameredev Acquisition Enhances MTDR’s Peer Leading Estimated Ultimate Recoveries (EURs) for Wells Turned to Production Since 2020 + Pro Forma Average Oil EUR (MBbl) AMEREDEV MTDR MTDR Peer 1 Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 Peer 8 II + AMEREDEV PRO FORMA Source: Env
Slide 57: Firm Commitments to Finance Ameredev Acquisition
Firm Commitments to Finance Ameredev Acquisition Matador Credit Facility $2.5B $250M Term Commitment $1.5B $2.25B Elected Commitment $1.5B Elected Commitment Current Elected Commitment Firm Commitments Total Commitments 57
Slide 58: Ameredev Bolt-on Transaction – Wall Street Reaction
Ameredev Bolt-on Transaction – Wall Street Reaction “Our initial take is that this is a good deal for MTDR … With 100% cash consideration the deal will be accretive to cash flow metrics and NAV.” – Equity Analyst 1 “We maintain our Buy rating on its track record of execution, asset quality/depth, st
Slide 59: MTDR Shares Significantly Outperforming since IPO!
MTDR Shares Significantly Outperforming since IPO! Since IPO (February 2, 2012) through June 11, 2024 close MTDR TOP PERFORMER! MTDR all time high @ $73.78! MTDR +407% S&P 500 +305% R2000 +149% 0% Oil (-19%) XOP (-32%) *COVID19 / Saudi-Russia Oil Price War MTDR all time low @ $1.11 59 Source: Bloomb
Slide 60: Chairman's Closing Remarks
Chairman’s Closing Remarks Joseph Wm. Foran, Founder, Chairman and CEO June 13, 2024
Slide 61: Annual Meeting of Shareholders
Annual Meeting of Shareholders June 13, 2024
Slide 62: Appendix
ay, ¢ Matador tir Appendix June 13, 2024 NYSE
Slide 63: 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 64: 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 65: 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. (In t
Slide 66: 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 67: 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 (In thousands) Mar
Slide 68: 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 69: 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 income. PV-10 is not an estimate of the fair market value of the Company’
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