Matador Resources Company · NYSE:MTDR
Matador Resources — Investor Presentation (June 2013)
50 slides from Matador Resources's investor presentation, Jun 6, 2013
Slide 1: Investor Presentation June 2013
Exhibit 99.2 Searchable Investor Presentation text for slide0001: June 2013
Slide 2: Cautionary Note Regarding Forward-Looking Statements
2Searchable include forward-looking “should,” words. certain whether current sufficient cause “Risk looking You statement. are Disclosure statements not are actual Factors” Actual risks proved, reserves; “forward-looking statements cautioned our capital “continue,” Cautionary text drilling results a
Slide 3: Company Summary
SearchableSummary Company text for slide0003:
Slide 4: Company Overview
4Searchable 1.8 $155 production these reconciliation Company toto estimates 2.0 $175 million guidance text Overview million(3) ofwere for Adjusted barrels slide0004: range $99.00/Bbl Company As Total EBITDA as reported updated Natural and Overview to in $4.00/Mcf, on our Gas theMay net Form 2012 Pro
Slide 5: Company History
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Slide 6: Matador Resources Snapshot
6Searchable 6 Matador text for slide0006: Resources Snapshot ~78% 2013E CapEx
Slide 7: Investment Highlights
7Searchable in Management ownership expenditure Investment Southeast Strong text program New Highlights and forTechnical Mexico record slide0007: focused Strong ofand stewardship Team on West Financial oil andTexas and Active liquids for Position Other nearly Board exploration key and 30of assets ye
Slide 8: Continued Growth in Production and Revenue
Searchable Matador’s average non-GAAP Thousandrealized Bbl Continued text financial Growth for prices slide0008: measure. Growth Since for oilthe 8and For (1) IPO natural a2013 definition estimates gas used of Adjusted at in midpoint revenue EBITDA and of guidance Adjusted and a reconciliation range
Slide 9: Growth in PV-10 from Proved Reserves
Searchable (CHART) GAAP), see Growth text Appendix forin slide0009: PV-10(1) (2) At December from Proved 31 ofReserves each respective 2008 (2)year 2009PV-10, (2) 2010 millions (2) 2011 9 (2) 2012 (2) (1) PV-10 is a non-GAAP financial measure. For a reconciliation of Standardized Measure (GAAP) to P
Slide 10: Haynesville Total Resource Potential and Price Sensitivity
Searchable 10 as of Haynesville Marchtext 31,Total for 2013slide0010: Resource (2) NYMEX Potential gas price, – Price lessSensitivity property-specific (1) PV-10 differentials is a non-GAAP measure. For a reconciliation of Standardized Measure (GAAP) to PV-10 (non-GAAP), see Appendix. All PV-10 valu
Slide 11: Eagle Ford, South Texas
Searchable Eagle Ford text SouthforTexas slide0011:
Slide 12: Eagle Ford Overview
Searchable 12 currently, 4.7 0.1 at December Eagle million Ford primarily text BOE 31, and for 2010 atAustin slide0012: December focused 0.1 Chalk million on31, oil Overview 2011 2010 BOE and liquids; and 0.1 at December Drilled million lessexpect than and BOE 31, 0.1 tocompleted return 2010 million
Slide 13: Proved Reserves and PV-10 Year-End 2012
Searchable 13 2012 million, financial $3.731/MMBtu Value PV-10(1): 52% measure. of text Proved SEfor $423.2 gas New For slide0013: Reserves Future Mexico amillion(3) reconciliation undiscounted Up $2.4 70% (Standardized million, and of net Standardized Shifting 1% revenue December Measure to of Oil
Slide 14: Eagle Ford Acreage Highlights
Searchable Highlights Matador’s for Austin Chalk, Eagle 14 textEagle for Ford Buda, slide0014: Ford position Pearsall Properties approximately and are other in Good formations 28,000 Neighborhoods net Good acres reputation Acreage Matador’s with in both acreage landthe and eastern inmineral counties
Slide 15: Eagle Ford Properties Acreage Map
Searchable 15 gross 27,720 Sickenius EAGLE / 10,259 netLyssy acres text FORD net for Repka COMBO acres EAST slide0015: RCT San 7,730 LIQUIDS Antonio Wilson grossLove Uvalde / /GAS 6,330 Cowey FAIRWAY Medina net acres Keseling Zavala EOG DRYFinney Frio OPERATED, GASDimmit FAIRWAY LewtonLa MTDR Hennig
Slide 16: 2012 Operated Eagle Ford Completion Results
Searchable 2012 Operated textEagle for slide0016: Ford Completion Results – 24 Hour IP Tests 16
Slide 17: Well Performance Improvement with Evolution of Frac Design
Searchable 17 West Well Well Improvement Performance text for slide0017: with withEvolution Fourth Generation of Frac Design Frac Note: Eagle First Ford well East on Offsetting this lease Wells: Vertical Example Depth:17,424 Eagleft. Ford Lateral Middle Length: Offsetting 4,762 Wells: ft. Example 2
Slide 18: Eagle Ford Well Costs Declined During 2012 – Western Acreage
Searchable Eagle costs only; Ford costs text Wellfor Costs doslide0018: notDeclined include pipelines During 2012 and lease – Western facilities. Acreage 18 (CHART) Note: Wells are displayed in chronological order. Wells drilled and completed using two casing strings. Well drilling and completions
Slide 19: Eagle Ford Well Costs Declined During 2012 – Eastern Acreage
Searchable Eagle only; costs Ford do text Well not for Costs include slide0019: Declined pipelines During and lease 2012 facilities. – Eastern Acreage 19 (CHART) Note: Wells are displayed in chronological order. Wells drilled and completed using two casing strings. Well drilling and completions cost
Slide 20: Average Frac Stage Cost per Well
Searchable Average Frac text Stage for slide0020: Cost per Well 20 Note: Wells are displayed in chronological order; includes all Matador operated wells drilled and completed through December 31, 2012
Slide 21: Eagle Ford Well Estimated ROR vs EUR and Well Cost
Searchable Eagle $3.00/Mcf FordNYMEX text Wellfor Estimated slide0021: naturalROR gas Western as a Function Acreage of Eastern EUR and Acreage Well Cost 21 Note: Individual well economics only. NGL price differential +$1.85/Mcf. Oil price differential +$7.00/Bbl. $90.00/Bbl NYMEX oil;
Slide 22: Drilling Times and Efficiencies
SearchableDrilling (CHART) text for Times slide0022: and Efficiencies 22 Note: As of June 5, 2013 First 4 Wells Spudded after 01/01/13 Spudded prior to 01/01/13
Slide 23: Recent Technical Advancements
Searchable 23 equipment Bbl/ft 20% hole with Recent pressure existing Increases frac Technical fluid Provides text gas differential drainage for (100% compression slide0023: for Advancements increase consolidated efficiency Mitigates Greatly from Choke damage inproduction generation the aidssize Eag
Slide 24: Multi-Pay Fairway Acreage
Searchable 24 Acreage San Antonio Note: textAll for Multi-Pay acreage slide0024: Fairway at June 1,with 2013Pearsall, MedinaAustin ZavalaChalk Frio Dimmit and Buda Lapotential Salle Webb OILBexar FAIRWAY Atascosa DRY McMullen GAS FAIRWAY Dewitt Gonzales Matador Resources Wilson Karnes Acreage LiveEm
Slide 25: Delaware Basin, Southeast New Mexico and West Texas
SearchableBasin Delaware text for Southeast slide0025: New Mexico and West Texas
Slide 26: Delaware Basin Acreage and Drilling
Searchable 26 ongoing oil EDDYGross and LEA liquids-rich drilling Acres(1) text LOVING for Year 34,094 slide0026: targets, to date(2) acres including Net acquired Acres(1) the Wolfcamp 18,234 22,498 gross and acres and Bone Southeast 14,827 Spring netNew plays acresMexico Total in Leaacreage /and We
Slide 27: Delaware Basin Stratigraphic Column and Horizontal Targets
Searchable 27 Organic (0.7psi/ft.) Horizontal from Wolfbone public Carbon Total Targets text sources Play for (TOC) Organic in 1st slide0027: the 2nd 5-8% Delaware Carbon 3rdXRD: Bone (TOC) Basin 15-20% Spring 2-4% (West Depth: clay Upper Texas) and 8,500’ Wolfcamp 40-60% Stratigraphic – 10,600’ sil
Slide 28: Ranger Area Wolfbone and Bone Spring Results
Searchable Ranger #1H XOG Bone 2013. 21 mo.cum: 3rd Spring Operating 3 Prospect Rivers Bone text 58 Sand Spring Oper MBO; for (Vertical Area: Wolfcamp slide0028: Eagle 17 48 Proposed mo.cum: MMcf well) 2 State Bone Jordan Concho Wolfbone 157 6H Spring 3rd BMBO; #1 Condor Bone /Multi-Zone Upper Wolfc
Slide 29: Wolf Area Wolfcamp Results
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Slide 30: Haynesville & Cotton Valley, Northwest Louisiana and East Texas
Searchable text Haynesville & Cotton for slide0030: Valley Northwest Louisiana and East Texas
Slide 31: Haynesville and Cotton Valley Acreage
Searchable Tier Grove Locations MTDR proved 31 1 Haynesville Cotton natural Haynesville Acreage: textValley: gas for reserves and slide0031: 12,568 Williams 49Elm Netgross, as Grove Locations (BLM) a result 5,737 Cotton #1H ofMatador net successful Valley TIER Locations: 1: Operated Acreage 6drillin
Slide 32: Haynesville Well Economics – Tier 1 Area
Searchable32 (CHART) ($0.85)/Mcf. text Haynesville for slide0032: Well Economics – Tier 1 Area Rate of Return, % Natural Gas Price, $/Mcf Note: Individual well economics only. D&C cost = drilling and completion cost. Natural gas price differential =
Slide 33: Cotton Valley Horizontal Well Economics
Searchable 33 Cotton Valley text for Horizontal slide0033:Well Economics Note: Individual well economics only. D&C cost = drilling and completion cost. Natural gas price differential = (10%) (CHART)
Slide 34: Gracie Prospect, Wyoming, Utah and Idaho
Searchable Gracie Wyoming, text forUtah slide0034: and Idaho
Slide 35: Gracie Prospect Acreage
Searchable Matador CrawfordGracie Federal text for Project #1H slide0035: completion Total Prospect scheduled Acreage forIDAHO summerUTAH 2013 WYOMING WYOMING IDAHO UTAH WYOMING 61,897 gross acres 30,492 net acres Crawford Federal #1H 35 Note: All acreage at June 1, 2013
Slide 36: Southwest Wyoming Shales
Searchable Southwest Shales Thermally 2% Wyoming mature: TOC text for Crawford Ro slide0036: Stratigraphy 1.69% Federal Porosity and #1: Target Average: DrilledZones straight 3.0–5.0% Lamberson, holeMicro-Darcy in latePaul, 20111982, Encountered Permeability The Fossil 161’ Drilled Basin Meade 2,500
Slide 37: Financial Overview
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Slide 38: 2013 Financial Expectations
Searchable 38 to million excluding our 2013. respectively, (CHART) $175 2013 netGuidance income in million Revenue realized interest text for(loss) for Mid-point includes the and =hedging slide0038: period $19.00 and Adjusted actual net isApril gains DD&A an cash EBITDA(1)(2) results increase throug
Slide 39: 2013 Capital Investment Plan Highlights
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Slide 40: First Quarter 2013 Earnings Release Highlights
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Slide 41: Financial and Operating Performance
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Slide 42: Hedging Profile
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Slide 43: Reserves Summary
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Slide 44: Appendix
Searchable text for slide0044: Appendix
Slide 45: Board of Directors and Special Board Advisors
Searchable Board of Directors text for and slide0045: Special Board Advisors – Expertise and Stewardship 45 45
Slide 46: Experienced Management Team
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Slide 47: Pearsall Shale Play Activity
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Slide 48: Adjusted EBITDA Definition
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Slide 49: Adjusted EBITDA Reconciliation
Searchable 49 provided Adjusted bytext operating EBITDA for slide0049: Reconciliation activities, respectively. 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
Slide 50: PV-10 Reconciliation to Standardized Measure
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