Matador Resources Company · NYSE:MTDR
Matador Resources — Q4 2021 Earnings Presentation
35 slides from Matador Resources's earnings presentation, Feb 23, 2022
Slide 1: Fourth Quarter and Year-End 2021 Earnings Release
Fourth Quarter and Year-End 2021 Earnings Release February 22, 2022
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 Investor Relations Contact Resources Company (“Matador” or the “Company”) during the course of this presentation include “forward- looking statements” with
Slide 3: Matador Resources Company Overview
Matador Resources Company Overview Market Snapshot NYSE Symbol MTDR Market Capitalization(1) $5.2 billion Avg. Daily Production – Q4 2021 87.3 MBOE/d DELAWARE BASIN HAYNESVILLE/ Net Debt / LTM Adj. EBITDA(2)(3) – Q4 2021 ~1.1x 124,800 net acres COTTON VALLEY Adj. Free Cash Flow(2) – Q4 2021 $119.3 m
Slide 4: Profitable Growth at a Measured Pace; Relative Performance
Matador is Celebrating 10 Years as a Public Company with Profitable Growth at a Measured Pace Oil Production Growth Gas Production Growth Total Production Growth (MBbl) (MMcf) (MBOE) 20,000 90,000 35,000 18,000 80,000 30,000 Total Production, MBOE 16,000 70,000 Natural Gas, MMcf 14,000 25,000 Oil, M
Slide 5: Chairman's Remarks
Chairman’s Remarks February 22, 2022
Slide 6: Successfully Achieved Objectives in 2021
SLIDE A Successfully Achieved Objectives in 2021 • Generated adjusted free cash flow(1) of $486.9 million Increased • Record oil and natural gas revenues of $1.70 billion and record Adjusted EBITDA(1) of $1.05 billion Shareholder Returns • Initiated quarterly cash dividend in Q1 2021 and then double
Slide 7: Strong Results for Fourth Quarter 2021
SLIDE B Strong Results for Fourth Quarter 2021 Strong Financial • Generated adjusted free cash flow(1) of $119.3 million in Q4 2021 Results and • Record oil and natural gas revenues of $510.8 million and record Adjusted EBITDA(1) of $299.1 million Doubled Dividend • Doubled quarterly cash dividend t
Slide 8: San Mateo – Differentiated Midstream Asset
San Mateo – Differentiated Midstream Asset SLIDE C Continues to Add Value to Matador(1) 2015-2016 2017-2018 2019-2020 2021+ ► Initial midstream build-out ► San Mateo I formed in ► San Mateo II formed in ► Adj. free cash flow(2) in the Delaware Basin February 2017 – Owned February 2019 – Owned genera
Slide 9: Revolver Borrowings Outstanding – Significantly Paid Down Debt in 2021
SLIDE D Revolver Borrowings Outstanding – Quarterly Results Significantly Paid Down Debt in 2021 ($ in millions) Letters of Credit Revolver Borrowings Outstanding $1,400 $1,350 $375 million repaid from end of Q3 2020 through Q4 2021 $1,200 Expect to repay an additional $25 million before end of Feb
Slide 10: 2021 Priorities and Milestones
2021 Priorities and Milestones – Free Cash Flow, SLIDE E Balance Sheet Improvement and Operational Excellence 2021 Priorities Significant 2021 Milestones - Timeline 1 Deliver Free Cash Flow 1 4 Rodney Robinson wells to sales • 39 Stateline asset area wells online at 2 First 13 Voni (Stateline) wells
Slide 11: A Step Change in Capital Efficiency: Record Low Costs in 2021
A Step Change in Capital Efficiency: SLIDE F Record Low Costs in 2021 Drilling & Completion (D&C) CapEx/ft(1) Percentage of Two-Mile Laterals ($/ft) Avg. Lateral 4,700’ 5,700’ 8,800’ 10,500’ Length +21% +54% +19% $1,528 98% -24% 74% $1,165 -27% $850 -21% $670 8% 1% 2018 2019 2020 2021 2018 2019 2020
Slide 12: Operational and Financial Results
Operational and Financial Results February 22, 2022
Slide 13: Q4 and Year-End 2021 Selected Operating and Financial Results
Q4 and Year-End 2021 Selected Operating and Financial Results Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, 2021 2021 2020 2021 2020 Net Production Volumes:(1) Oil (MBbl) 4,578 4,669 4,419 17,840 15,931 Natural gas (Bcf) 20.7 21.7 19.4 81.7 69.5 Tota
Slide 14: An Integrated E&P and Midstream Strategy: Progress in All Areas
An Integrated E&P and Midstream Strategy: Progress in All Areas Total Oil and Natural Gas Production San Mateo’s Adjusted EBITDA(1)(2) (MBOE) ($ in millions) 2021 Total Production – 14% Growth YoY 2021 Adjusted EBITDA – 37% Growth YoY +14% YoY Natural Gas $154 Natural Gas, Bcf 31,454 Oil Oil, MBbl 2
Slide 15: Production and Adjusted EBITDA Trends
An Integrated E&P and Midstream Strategy: Progress in All Areas Average Daily Total Production Average Daily Total Delaware Basin Production (BOE/d) (BOE/d) Q4 2021 BOE down 3% sequentially; Q4 2021 BOE down 2% sequentially; 93,210 90,033 87,461 up 5% YoY up 7% YoY 87,288 100,000 100,000 84,048 83,1
Slide 16: Delivering Strong Well Results All Around the Delaware Basin
Delivering Strong Well Results All Around the Delaware Basin! Matador Acreage TWIN LAKES ~42,900 gross / ~20,500 net acres Uncle Ches March 2021 Wells 2nd Bone Spring #127H 24-hr IP: 1,988 BOE/d (90% oil) CURRENT DELAWARE #128H 24-hr IP: 2,065 BOE/d (90% oil) ARROWHEAD 2 new Uncle Ches 2nd Bone BASI
Slide 17: 2021 Capital Investment Summary
2021 Capital Investment Summary Full Year 2021 CapEx(1)(2) – $544 million 2021 Wells Turned to Sales Guidance Range(3) Actual Gross Net Below Drilling, Completing, Equipping $535 to $565 million $513 million range Operated 47 44.2 Operated D/C/E $442 to $464 million $432 million Non-Operated 57 4.0
Slide 18: Wells Completed and Turned to Sales – Q4 2021
Wells Completed and Turned to Sales – Q4 2021 During Q4 2021, Matador completed and turned to sales a total of 39 gross (9.3 net) wells in its various operating areas, including 9 gross (8.0 net) operated wells and 30 gross (1.3 net) non-operated wells All nine operated wells were two-mile later
Slide 19: Wells Completed and Turned to Sales – Full Year 2021
Wells Completed and Turned to Sales – Full Year 2021 During full year 2021, Matador completed and turned to sales 104 gross (48.2 net) wells, including 47 gross (44.2 net) operated wells and 57 gross (4.0 net) non-operated wells In 2021, Matador continued to develop longer laterals ‒ All of Mata
Slide 20: San Mateo Assets and Operations – Three-Pipe Offering
San Mateo(1) Assets and Operations – “Three-Pipe” Offering Eddy County, NM Assets Loving County, TX Assets 1 Mile Greater Stebbins Area Wolf Loving ~43 miles Reeves Loving Ward 1 Mile Rustler Breaks Eddy Lea Natural Gas Gathering and Processing 460 MMcf/d of designed natural gas cryogenic processi
Slide 21: Continued Progress in All Parts of San Mateo's Midstream Business
Continued Progress in All Parts of San Mateo’s Midstream Business (51% Owned by Matador) San Mateo Average Water Handling San Mateo Average Natural Gas Gathering(1) (MBbl/d) (MMcf/d) Q4 2021 up 10% sequentially; Q4 2021 up 2% sequentially; 350 up 20% YoY 300 up 17% YoY 313 262 284 252 248 252 300 28
Slide 22: Hedging Profile – Remainder of 2022
Hedging Profile – Remainder of 2022(1) Oil Collars Midland-Cushing Basis Swaps Natural Gas Collars ~25% hedged for 2022 ~25% hedged for 2022 ~60-65% hedged for Q1-Q3 2022 ~40-45% hedged for Q4 2022 16.0 15.6 15.6 1,380 1,380 1,380 1,380 1,400 1,350 1,350 1,350 1,400 14.0 Natural Gas Volume Hedged (B
Slide 23: Committed to Environmental, Social and Governance (ESG) Stewardship
Committed to Environmental, Social and Governance (ESG) Stewardship Matador is committed to creating long-term value for its stakeholders in a responsible manner by pursuing sound growth and earnings objectives and exercising prudence in the uses of its assets and resources. In December 2021, Matado
Slide 24: Appendix
ay, ¢ Matador fies RESOURCES COMPANY Appendix MIDR NYSE
Slide 25: Matador's Proved Reserves: 323.4 Million BOE at December 31, 2021
Matador’s Proved Reserves: 323.4 Million BOE at December 31, 2021 Haynesville/CV 8.5 MMBOE, 4% Haynesville/CV Haynesville/CV 3.5 MMBOE, 1% 5.7 MMBOE, 2% Delaware Delaware 232.8 MMBOE, 92% Delaware 261.9 MMBOE, 97% 312.0 MMBOE, 97% Eagle Ford Eagle Ford Eagle Ford 11.2 MMBOE, 4% 4.9 MMBOE, 2% 5.7 MMB
Slide 26: Delaware Basin Extended Lateral Well Location Inventory
Delaware Basin Extended Lateral Well Location Inventory • Matador has identified up to 4,381 gross (1,534 net) remaining potential locations(1) for future drilling on its Delaware Basin acreage − Location counts assume extended lateral lengths whenever viable, and the total locations have an average
Slide 27: Matador Resources and San Mateo Credit Facilities
Increased by 50% in November 2021! Matador Resources and San Mateo Credit Facilities Matador Credit Agreement Summary Bank group led by Royal Bank of Canada Last Elected Borrowings Letters of Credit Financial Covenant: Facility Maturity Borrowing Financial Covenant: Reserves Borrowing Outstanding Ou
Slide 28: 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 29: 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 (loss) and net cash provided by operating activities, respectively. (In thousands) 1Q 2016
Slide 30: Adjusted EBITDA Reconciliation – Matador Resources Company, Consolidated
Adjusted EBITDA Reconciliation Matador Resources Company, Consolidated 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)
Slide 31: 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 (loss) and net cash provided by (used in) operating activities, respectively, for San Mateo Mids
Slide 32: 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 (loss) and net cash provided by (used in) operating activities, respectively, for San Mateo Midstream, LLC. Y
Slide 33: Adjusted Net Income and Adjusted Earnings Per Diluted Common Share
Adjusted Net (Loss) Income and Adjusted Earnings (Loss) Per Diluted Common Share This presentation includes the non-GAAP financial measures of adjusted net income (loss) and adjusted earnings (loss) per diluted common share. These non-GAAP items are measured as net income (loss) attributable to Mata
Slide 34: 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 Year Ended (In tho
Slide 35: 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 net revenues. PV-10 is not an estimate of the fair market value of the Co
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