Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Day (December 2012)
54 slides from Matador Resources's investor day presentation, Dec 6, 2012
Slide 1: Matador Resources Analyst Day
December 6, 2012 Matador Resources Analyst Day Exhibit 99.2
Slide 2: Safe Harbor
Safe Harbor statements” future, often “predict,” events including, successful; operations, business results section circumstances presentation. Cautionary proved, address could to not of probable plan, differ “potential,” Matador’s but past, changes delays Note within Statement differ All expected n
Slide 3: Total oil and natural gas revenues and Adjusted EBITDA growth
Matador’s TOTAL NATURAL ADJUSTED $14.0 in Year 3(1) Appendix millions Adjusted Ended $30.6 OILContinued $8.1 GAS December $19.0 AND EBITDA EBITDA(1) $18.4$15.2$23.6 REVENUES $34.0 Growth is31, a$67.0 non-GAAP $150.0 $49.9financial $210.0 $112.5 $150.0 measure. For a definition of Adjusted EBITDA and
Slide 4: 2013 Capital Investment Plan
2013 Capital Investment Plan
Slide 5: 2013 Capital Investment Plan Highlights
2013 pipelines/facilities production to $140 (1) Estimated reconciliation 12.0 Estimated Capital to Bcf $160 average volumes – Investment down million 2013 of Adjusted and realized oil about well – and $25 upPlan hedged 8% EBITDA about natural prices million from Highlights 33% tofor gas for 2012 pr
Slide 6: 2013 Production Expectations
6 2013 2013 production Expectations Production Oil Production(1) of(1)Estimated 11.0delays, to 12.0shut-ins Estimated Bcf quarterly Decrease duetotal average to pad ofoilapproximately drilling, production oil and natural zipper of 8% 1.6 fracs, gasfrom toproduction 1.8 etc. 2012 million Oil Gas prod
Slide 7: 2013 Financial Expectations
7 2013Operating EBITDA(1) estimated $4.70 reconciliation production respectively Revenue decrease guidance Oil ofof$140 and cash and Adjusted ofNatural Adjusted to range costs, about $160 EBITDA using excluding $13 Gas million EBITDA(1)(2) million late Revenues(2) toIncrease November interest our in
Slide 8: Funding the 2013 Capital Investment Plan
Funding Eagle December outstanding throughout discretionary Ford for6,2013 program of 2013 2012 land/seismic $135 Estimated Capital Borrowing million is development Investment acquisitions borrowings Estimated base ofdrilling Plan $200 borrowings No outstanding 8significant million; and Maintain lar
Slide 9: 2013 Hedging Profile
9 2013 Hedgingand $3.34/MMBtu Profile $4.84/MMBtu, 1.5 millionrespectively barrels of oil4.9 hedged million forgallons 2013 atofweighted natural gas average liquids floor hedged and ceiling at weighted of $88/Bbl averageand price $107/Bbl, of $0.79/gal respectively 4.7 Bcf of natural gas hedged at w
Slide 10: Continued Oil/Liquids Focus to Fuel 2013 Growth
10 Continued Oil/Liquids Focus to Fuel 2013 Growth
Slide 11: 2013 South Texas Plan
2013 South budget exploratory Capitalize simultaneous study place and willtest on be Texas tests stimulation experience other directed planned Plan horizons 12 toto operations in South 2013 improve Austin andprojected Texas toChalk, address (e.g., well Most performance capital zipper Buda, lease of
Slide 12: Matador's Eagle Ford Acreage
Matador’s EOG #GLASSCOCK Total EAGLE Matador Note: 13- Eagle of OPERATED, All34 FORD Resources Ford acreage Producing gross/28.7 Wells (WINN) ACREAGE WEST EAST values, MTDR Acreage completed Eagle net 7,568 14,812 RANCH number wells WI Ford TOTALS gross gross ~21% completed and Wells 8,891 of/ 6,171
Slide 13: Potential Drilling Locations
2013 EOG GLASSCOCK Potential 214 Tier No Numbers *At EAGLE Matador Note: 14 Eagle gross/164 December 1South 2OPERATED, All – 107 FORD Resources Remaining do acreage Ford Texas gross/78 gross/86 not net 31, locations (WINN) ACREAGE WEST EAST include values, locations Drilling 2012 MTDR Acreage Eagle
Slide 14: 2013 West Texas Plan
2013 directed in successful, prospect Wolfcamp Delaware to is West HBP would andBasin Texas and Bone setthe up Plan Key Spring remaining 2014 15 objectives 2013 (and and 3-well 10% beyond) projected ofwas 2013 program continuous leased capital Delaware will inexpenditures 2012, test drilling Basin b
Slide 15: Delaware Basin Wolf Prospect and Wolfcamp Acreage
Delaware WOLF Wolfcamp 5,203 Basin Shale gross Acreage Matador’s 16 / 2,977 and net acreage 2013 acresDrilling position #—Matador Plan shown RANGER operated in red. wells Note: EDDY planned Certain LEA LOVING additional in 2013 3WOLF gross/3 MatadorDELAWARE net acreage horizontal in West BASIN wells
Slide 16: 2013 Haynesville/Cotton Valley Plan
operated 2013 resource(1) Potential Matador Tier should does Haynesville resource 1 –Haynesville gas 250 notprices include to should 310 wells continue Shale Bcf not any Haynesville/Cotton net be of Plan considered to this to improve Matador 17potential 2013proved Haynesville/Cotton projected Tier r
Slide 17: Haynesville/Cotton Valley Acreage and Tiers
Tier 1 1: Matador Locations: TIER successful Haynesville 6Operated –drilling 397 10+gross, Bcf Acreage: operations and TIER 50Elm net2:Grove 9,980 (@ and 4 –76higher locations/section) gross, Cotton Bcf TIER 9,800 natural Valley 3:net 2gas Acreage –Locations: 4price, Potential Bcf Positions (1) Mata
Slide 18: Eagle Ford Operations South Texas
Eagle Ford Operations South Texas
Slide 19: 2012 Drilling Program Takeaways
2012 Drilling volume while fracture utilized Program stimulating in fracture Takeaways offset stimulation wells Reduced Artificial affects drill well lift times performance willand be necessary costsImprovements related andtoshould operational realized add value efficiency withProgram closer Rotary
Slide 20: Drilling Times and Efficiencies
Drilling Times and Efficiencies 21 First 4 Wells Last 4 Wells *Bold wells utilized rotary steerable systems
Slide 21: 2012 Normalized Well Costs
2012 Normalized Well Costs 21
Slide 22: Eagle Ford East Normalized Well Costs
2012$6,000,000 Eagle $14,000,000 Cost Well Tot Total $2,000,000 $4,000,000 5000’ 22 $8,000,000 al Normalized Cost Normalized Ford East $12,000,000 Total Well CostWell Costs $10,000,000 Costs
Slide 23: Geo-Steering—Conventional Directional Tools
Geo-Steering—Conventional Directional Tools 23 Measured Depth (ft.) True Vertical Depth (ft.) Top Eagle Ford Top Britton Top Target Mid Target Base Target Pepper Sh. Buda Ls.
Slide 24: Geo-Steering—Rotary Steerable Directional Tools
Geo-Steering—Rotary Steerable Directional Tools 24 Measured Depth (ft.) True Vertical Depth (ft.) Eagle Ford Top Britton Top Target Mid Target Base Target Pepper Sh. Buda Ls.
Slide 25: Average Frac Stage Cost per Well
Average Frac Stage Cost per Well 25 Note: Wells are displayed in chronological order
Slide 26: Fracture Stimulation Comparison
Fracture Stimulation Comparison 26 #2H #1H
Slide 27: Stimulation Design Evaluation
Stimulation communicated on Well No. Design 2Hwith 27 Evaluation Well No. 1H Well during No. frac 1H –Well 5,200 No. BBL 1H /production 400,000 lb.temporarily frac. 49 foot went cluster fromspacing 100 BOPD Well to No.0 BOPD 2H – 7,500 and from BBL 10 / 350,000 BWPDlb.to over white100 sand BWPD + 50
Slide 28: Cumulative Production Comparison
Fluid Volumes/Tighter Note: Through NovemberSpacing/Restricted 30, 2012. Choke Cumulative Production Comparison 28 (CHART)
Slide 29: Offset Well Frac Effects
Offset1800 2000 BOPD Mcf/d BWPD 2/1/2012 1,400 29 1,200 Well 3/1/2012 1600 Frac 1,0001400 Effects 800 4/1/2012 1200 600 400 1000 5/1/2012 200 800 0 6/1/2012 600 400 200 7/1/2012 8/1/2012 9/1/2012 10/1/2012 11/1/2012
Slide 30: Zipper Frac/Back to Back and Associated Downtimes
Zipper Frac/Back to Back and Associated Downtimes 30 (CHART) Downtime to Frac Offset
Slide 31: Artificial Lift and Production Management
Artificial transition levels Treating Lift Mechanical and fracProduction fluid issues andrelated pumping Management to rod wellbores pumping Artificial withScale Lift chemical Eleven and paraffin additions wells on Offset Evaluating rod frac pump effects Evaluating shut-in Solutions times gasprior R
Slide 32: Matador 2013 Planned Operated Drilling Schedule
Matador 2013 schedule is based Planned on management’s Operated Drilling current Schedule expectations Drilling regarding Stimulation the time Shut-in necessary Producing to drill, 34 fracture 2-rig equivalent and complete drilling each program well, as in well 2013;asDelaware the time adjacent Basi
Slide 33: 2012 South Texas Operated Drilling Schedule
2012as Note: well Matardor Includes well as wells the South time drilled Texas adjacent or Operated completed wellsDrilling willbybeDecember shut Schedule in as 31, aDrilling result 2012.of Stimulation The fracking Company’s operations Shut-in 2013 Producing drilling schedule 33 is based on manageme
Slide 34: Martin Ranch Development Plan
Martin Ranch Development Plan 35
Slide 35: Martin Ranch Development Plan
Martin Ranch Development Plan 36
Slide 36: Martin Ranch Development Plan
Martin Ranch Development Plan 37
Slide 37: Martin Ranch Development Plan
Martin Ranch Development Plan 38
Slide 38: 2013 Operational Plans
2013optimize drilling Continue and Operational and completion completion artificial Plans technique lift optimization Develop operations evolution acreage 40 Continue blocks to maximize towith optimize program value completion Production type drilling design Stay Pad in Evaluate drilling front ofcur
Slide 39: Geology Update
aM, § Matador {| RESOURCES COMPANY Lyyer Geology Update
Slide 40: Geoscience Goals and Objectives
Continue disciplinary operated exploratory play development: (Buda thewells studies study and Leverage Proven of Evaluate Edwards) the Eagle petroleum our additional Obtain knowledge Ford in systems; 3Dprospective South seismic andTexas: Tier experience and map plays Help sub-surface system intransf
Slide 41: South Texas Multi-Play Trend
SouthRodessa Primarily other fracturing Rose operators Texas productive within Eagle Pearsall arethe Ford positive Buda onSligo Trend—Multi-Play structure both Eagle Olmos onFractured Ford and Navarro off Lower structure reservoir Fairway ANCC costs combined Pearsall 41 Historic Edwards Shale Conven
Slide 42: Matador's Geoscience Focus: Multipay Areas and Surrounding Results
Matador’s Geoscience Focus: Multipay Areas and Surrounding Results | = /| ATASCOSA, WILSON, GONZA N L Reo D O n/(/ GLASSCOCK (WINN) RANCH 0 ope b 3D Seismic: Fracture mapping, reservoir } e Fo B . TOCK pases Medina } : a Qnzales agle Ford, “Chalkleford”, Buda, Pearsall Goodrich Winterbotham A 1H 22
Slide 43: Glasscock Ranch Multi-disciplinary Study
Glasscock GLASSCOCK 8,891 Goal: Multiple Eagle Actively Fractures Increased 3D -Multi-disciplinary Held Chesapeake 55 1.5 Olmos San GR Note: 45 Eagle “Chalkleford” Buda Pearsall Olmos/San Petrophysics Rock Production 3D MBO; Seismic miles #1H #2H Miguel seismic by Transform Production gross Ford Pot
Slide 44: Delaware Basin Target Horizons
Delaware Basin Wolfcamp information 44 Depth: fromTarget public 12,200’ Horizons sources – 12,500’ 46 Delaware Middle (Wet Gas Group Wolfcamp Window) Depth: depth: Density 5,800’ 11,800’ –Porosity: 8,000’ – 12,200’ (Oil 6-15% Window) (Wet GeoGas Pressured Density Window)Porosity: (0.7–0.75psi/ft) De
Slide 45: Delaware Basin Wolf Prospect and Wolfcamp Acreage
Delaware WOLF Wolfcamp November 45 5,203 Basin Shale 30,gross 2012 Acreage Ranger / 2,977 A2 and net Primary 2013 acresDrilling #—Matador Target:Plan Wolfcamp RANGER operated Shale wells EDDY 47 planned Matador LEA LOVING inacreage 2013 3position WOLF gross/3DELAWARE shown net horizontal in red.BASI
Slide 46: Ranger Prospect Area and Surrounding Results
Ranger #1H XOG well. 3rd 46 Operating Prospect Bone Spring (Vertical Area:9Proposed mo.cum: well) Jordan Wolfbone 130 MBO; B #1Multi-Zone Wolfcamp 99 MMcf Legacy 20 Exploration yearsOperating cum: Program 386Lee MBO; and Unit5Surrounding 4H Bcf3rd Concho BoneResults (Vertical SpringConcho 13well) mo
Slide 47: Wolf Prospect Wolfcamp Surrounding Results
Wolf White mo.cum: 57 Wolfcamp Leasehold: #1 122 (Vertical MBO; 3 mo.cum: Proposed well) 344 3rd MMcf 61Wolfbone MBO; BS OXY / Upr 180 Multi-Zone Reagan-McElvain Wolfcamp MMcf Proposed Cum Exploration Produc: location 1H Currently Program 25for MBO; Matador drilling and 93Surrounding MMcf 2013 Chesa
Slide 48: Matador Gracie Project
Matador Gracie Project Total Prospect Acreage IDAHO UTAH WYOMING WYOMING WYOMING IDAHO UTAH WYOMING 54,450 gross acres 26,908 net acres Crawford Federal #1H 48
Slide 49: Southwest Wyoming Shales
Southwest Shales mature:2% RoWyoming TOC 1.69% Crawford Porosity Stratigraphy Federal Average: and #1:3.0– Target Drilled 5.0% Zones straight Micro-Darcy Lamberson, hole 10/11 Permeability Paul, Encountered 1982,49The 161’ Fossil Meade Basin Peak andwith its Relationship 46’ of main pay to the Recov
Slide 50: Appendix
oN, ¢§ Matador {Ww Ps RESOURCES COMPANY Appendix
Slide 51: Adjusted EBITDA Reconciliation
53 Adjusted before non-cash activities EBITDA and that unknown not mayinterest based be stock- as helps is to variables not the included determined EBITDA on expense, us aGAAP based historical measure evaluate forinReconciliation compensation the financial certain in income of accordance reconciling
Slide 52: Adjusted EBITDA Reconciliation Table
54 Adjusted by operatingEBITDA activities,Reconciliation respectively. The following table presents our calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net (loss) income and cash provided
Slide 53: $100mm Leasing Strategy That Rests on a "Fleck"
$100mm Leasing Strategy That Rests on a “Fleck” “Prove to us that oil molecules can move in so tight a rock.” 55 Macro. Micro. Nano. Sample
Slide 54: Pore-Perm Architecture We Can Measure
Pore-Perm Architecture We Can Measure 56