Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (August 2012)
35 slides from Matador Resources's investor presentation, Aug 27, 2012
Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation August 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, as amended, and S
Slide 3: Company Overview
Company Overview Completed IPO of 14,883,334 shares (12,209,167 primary) including overallotment at $12.00/share in March 2012 Exchange: Ticker NYSE: MTDR Shares Outstanding 55.50 million common shares Share Price as of August 22, 2012 $10.40/share Market Capitalization as of August 22, 2012 $577.2
Slide 4: Matador Oil Facts: Second Quarter 2012
Matador Oil Facts: Second Quarter 2012 On track to double Adjusted EBITDA (1) for the second year in a row Record quarterly oil production of 285,000 Bbl, a sequential quarterly increase of 43% from 200,000 Bbl produced in first quarter of 2012 Record six-month oil production of 485,000 Bbl, a year-
Slide 5: Matador History
Matador History Predecessor Entities Matador Today Foran Oil & Matador Petroleum Matador Resources Company Founded by Joe Foran in 1983 Founded by Joe Foran in 2003 Attracted start-up capital from long-time shareholders; Foran Oil funded with $270,000 in diverse and unique shareholder group includin
Slide 6: A Year of Growth
A Year of Growth AVERAGE DAILY OIL TOTAL REALIZED (1) EQUIVALENT PRODUCTION REVENUES ADJUSTED EBITDA (INCLUDING REALIZED GAIN ON DERIVATIVES) $74.1 8,738 $49.9 8,023 7,048 $40.8 $39.3 $27.9 3,926 $32.2 $23.6 $29.3 $26.7 $21.3 $18.4 $15.2 2,285 $14.2 1,506 $8.1 911 2007 2008 2009 2010 2011 2012 2012
Slide 7: Transition to Oil
Transition to Oil TOTAL OIL PRODUCTION OIL BY VOLUME OIL BY REVENUE 285 36% 82% 74% 200 27% 154 22% 7% 7% 6% 37 12% 12% 30 33 9% 4% 22 2% 7% 2007 2008 2009 2010 2011 2012 2012 2007 2008 2009 2010 2011 2012 2012 2007 2008 2009 2010 2011 2012 2012 1Q 2Q 1Q 2Q 1Q 2Q Year Ended December 31, Year Ended D
Slide 8: Financial Performance: Proven Management Team
Financial Performance: Proven Management Team Average Daily Production Oil and Natural Gas Revenues (BOE/d) ($ in mm) 10,000 $40.0 $36.1 8,738 CAGR: 53% 8,004 CAGR: 119% 8,000 $30.0 6,000 $20.9 $20.0 3,729 4,000 $10.0 $7.5 2,000 0 $0.0 2Q10 2Q11 2Q12 2Q10 2Q11 2Q12 Adjusted EBITDA (1) Total Realized
Slide 9: Strong Growth Profile Focused on Liquids
Strong Growth Profile Focused on Liquids Commentary Liquids Focused CapEx in 2012E 2012 Anticipated Drilling 2012E CapEx Gross Wells Net Wells (in millions) Q2 2012 oil production Total Total % Total % approximately 285,000 barrels South Texas Eagle Ford 28.0 25.6 86.8% $257.2 82.2% Austin Chalk 2.0
Slide 10: Leading Eagle Ford Exposure
Leading Eagle Ford Exposure Leverage to Eagle Ford (Net Eagle Ford Acres / EV) (Net Acres / $mm) (1) Matador offers significant leverage 2012E Capex % Eagle Ford and focus to the Eagle Ford SFY 48.7 78% Approximately 90% of Eagle Ford SM 46.9 48% acreage is in the prospective oil 45.6 84% MTDR and l
Slide 11: Eagle Ford and Austin Chalk Properties
Eagle Ford and Austin Chalk Properties EAGLE FORD ACREAGE TOTALS EAGLE FORD EAST Nickel Ranch 49,698 gross / 30,150 net acres Bexar 7,567 gross / 6,170 net acres Hennig San Antonio Uvalde Medina Gonzales Lewton EOG OPERATED, MTDR WI ~21% Finney 18,998 gross / 3,709 net acres Keseling Love Wilson Cow
Slide 12: Eagle Ford Properties are in Good Neighborhoods
Eagle Ford Properties are in Good Neighborhoods Highlights MTDR acreage in counties Anadarko Marathon Guadalupe KKR / HILCORP June 2010 with robust transaction El Paso Petrohawk/BHP Bexar ~$10,000 / acre Carrizo Pioneer Gonzales activity – “good Chesapeake SM Energy MARATHON / PALOMA May 2012 neighb
Slide 13: Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR Acreage
Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR Acreage San Antonio Multi-Pay Fairway with Eagle Ford, Pearsall, Austin Chalk and Buda potential OIL FAIRWAY Matador Resources Acreage DRY GAS FAIRWAY Note: All acreage at June 30, 2012 12
Slide 14: South Texas Multi-Pay Petroleum Systems: Petroleum Charge focus towards Glasscock Ranch
South Texas Multi-Pay Petroleum Systems: Petroleum Charge focus towards Glasscock Ranch Redhawk Area Matador Resources Acreage Note: All acreage at June 30, 2012 Oil and Gas Fields: Olmos/Navarro Austin Chalk Edwards Buda Wilcox Note: Information for Pearsall Oil Field sourced from public informatio
Slide 15: Multi-Pay Fairway: Productive and Prospective Pay Zones
Multi-Pay Fairway: Productive and Prospective Pay Zones Navarro Historic Conventional Zones Olmos-Navarro – Gas and oil fields in shallow section Austin Olmos – Upper Austin horizontal drilling – Fractured reservoir Buda – Primarily productive on structure – Fractured reservoir ANCC Edwards – Produc
Slide 16: Wolfbone Play in the Delaware Basin (West Texas)
Wolfbone Play in the Delaware Basin (West Texas) Matador Resources ~4,900 gross / ~2,900 net acres Chesapeake Operated IP’s: 260 – 750 Bbl/d 600 – 3,300 Mcf/d Anadarko Operated Major Operator Index IP’s: 162 – 931 Bbl/d 466 – 2,400 Mcf/d Matador Resources Anadarko Petroleum Corp. Chesapeake Operatin
Slide 17: Wolfbone Play in the Delaware Basin Stratigraphic Column
Wolfbone Play in the Delaware Basin (West Texas) Stratigraphic Column Horizontal Targets Avalon Shale Depth: 7,900’ – 8,300’ (Oil Window) Density Porosity: 12-14% Thickness: 300-500 ft. Normal Pressure (0.45 psi/ft.) Total Organic Carbon (TOC) 5-8% XRD: 15-20% clay and 40-60% silica IP: 100-270 Bbl/
Slide 18: Hedging Profile
Hedging Profile Oil Hedges (Costless Collars) 2H 2012 FY 2013 Total Volume Hedged by Ceiling (Bbl) 720,000 1,260,000 Weighted Average Price ($ / Bbl) $110.31 $110.26 Total Volume Hedged by Floor (Bbl) 720,000 1,260,000 Weighted Average Price ($ / Bbl) $90.83 $87.14 Natural Gas Hedges (Costless Colla
Slide 19: Natural Gas Liquids (NGLs)
Natural Gas Liquids (NGLs) Net NGL production of 163 Bbl/d and 476 Bbl/d for the first quarter and second quarter of 2012 respectively. Net NGL Production (Bbl/d) 500 476 400 300 200 163 100 0 1Q 2012 2Q 2012 Matador is negotiating a natural gas gathering, transportation and processing agreement, in
Slide 20: Financial Flexibility
Financial Flexibility Plan to fund 2012 capital budget with a portion of IPO net proceeds, anticipated cash flows from operations and available borrowings under credit facility Currently negotiating an amended and restated credit facility to increase the Company’s borrowing capacity to up to $200 mi
Slide 21: Strong Growth Profile Focused on Liquids
Strong Growth Profile Focused on Liquids Commentary Liquids Focused CapEx in 2012E 2012 Anticipated Drilling 2012E CapEx Gross Wells Net Wells (in millions) Total Total % Total % Q2 2012 oil production South Texas approximately 285,000 barrels Eagle Ford 28.0 25.6 86.8% $257.2 82.2% Austin Chalk 2.0
Slide 22: Investment Highlights
Investment Highlights Strong Growth Profile with Increasing Focus on Oil / Liquids High Quality Asset Base in Attractive Areas Significant Multi-year Drilling Inventory Strong Financial Position and Long-Term Institutional, Industry and Individual Shareholders Proven Management and Technical Team an
Slide 23: Appendix
aN, ¢ Matador ee ee Appendix
Slide 24: 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. Year Ended December 31, Six Months Ended June 30, (In
Slide 25: Board of Directors and Special Board Advisors – Expertise and Stewardship
Board of Directors and Special Board Advisors – Expertise and Stewardship Board Members Professional Experience Business Expertise and Advisors - Professor and Former Head of the Department of Petroleum Dr. Stephen A. Holditch Engineering, Texas A&M University Director Oil & Gas Operations - Founder
Slide 26: Proven Management Team – Experienced Leadership
Proven Management Team – Experienced Leadership Industry Matador Management Team Background and Prior Affiliations Experience Experience Joseph Wm. Foran - Matador Petroleum Corporation, Foran Oil Company, Founder, Chairman and CEO 32 years Since Inception J Cleo Thompson Jr. and Thompson Petroleum
Slide 27: Matador Resources Snapshot
Matador Resources Snapshot Daily Production(1) 8,738 BOE/d Oil Production (% total) 3,130 Bbl/d (36%) Proved Reserves @ 6/30/12 19.1 Million BOE % Proved Developed 64% % Oil 35% (and growing) 2012E CapEx $313 million % Eagle Ford 84% % Oil and Liquids 94% 2012E Anticipated Drilling 29.5 net wells Ea
Slide 28: Eagle Ford and Austin Chalk Overview
Eagle Ford and Austin Chalk Overview Acreage positioned in some of the most active counties for Eagle Ford Proved Reserves @ 6/30/12 8.8 Million BOE and Austin Chalk (including “Chalkleford”) % Proved Developed 47% Two rigs running, primarily focused on % Oil / Liquids 75% oil and liquids Daily Oil
Slide 29: Haynesville Positioning
Haynesville Positioning Highlights Approximately 12,500 gross and 5,800 net acres in Haynesville Tier 1 core area Almost all prospective Haynesville acreage is HBP – provides “natural gas bank” for future development MTDR active as both operator and non-operator in Haynesville play Approximately 1,7
Slide 30: Business Strategy to Deliver Growth and Value
Business Strategy to Deliver Growth and Value Exploration and Development 2012E CapEx program focused on oil and liquids opportunities Balanced Portfolio Growing Eagle Ford and Delaware Basin contributes to a diversified portfolio mix between oil and natural gas Active, ongoing exploration effort co
Slide 31: Option Value in Large Unevaluated Acreage Positions
Option Value in Large Unevaluated Acreage Positions Wyoming, Utah and Idaho (Meade Peak Shale) Matador Today Gross Acres(1),(2) 107,122 acres Net Acres (1),(2) 100,670 acres 2012E CapEx Budget $2.5 million Initial test well drilled and cored through the Meade Peak shale Detailed petrophysical and ro
Slide 32: Selected Historical Financials
Selected Historical Financials (Revenues and Adjusted EBITDA in millions) Year Ended December 31, Three Months Ended June 30, 2009 2010 2011 2011 2012 Production Summary Oil Production (MBbl) 30 33 154 51 285 Gas Production (Bcf) 4.8 8.4 14.5 4.1 3.1 Total Production (MBOE) 830 1,433 2,571 728 795 R
Slide 33: Investment Highlights
Investment Highlights Strong Growth Profile with Increasing Focus on Oil / Liquids Oil production up almost five-fold in 2011 and projected to increase 8x to 9x in 2012 2012E capital expenditure program focused on oil and liquids exploration and development High Quality Asset Base in Attractive Area
Slide 34: Diversified Investor Composition Before July 31, 2012 Lock-up Expiration
Diversified Investor Composition Before July 31, 2012 Lock-up Expiration Given management’s significant equity position, interests are well aligned with public shareholders Unique and diverse investor base includes institutional and industry shareholders with significant experience investing in the
Slide 35: Matador Resources Company (“MTDR”)
Matador Resources Company (“MTDR”) 34
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