Matador Resources Company (NYSE: MTDR) (“Matador” or the
“Company”) today reported financial and operating results for the
third quarter of 2017. This release is divided into two
parts—first, a “Summary and Highlights” section that summarizes key
production and financial results for the three months ended
September 30, 2017, and second, a section providing additional
details related to the Company’s third quarter 2017 results and a
detailed operations update.
Part I - Summary and
Highlights
Third Quarter 2017 Highlights
Sequential Results
- Average daily oil production increased
21% sequentially from approximately 19,400 barrels per day in the
second quarter of 2017 to approximately 23,500 barrels per day in
the third quarter of 2017. This 21% average daily oil production
growth significantly exceeded the Company’s previous guidance
expectations of 5 to 7% sequential oil production growth in the
third quarter of 2017. Matador’s third
quarter 2017 average daily oil production was the best quarterly
result in the Company’s history.
- Average daily natural gas production
increased 5% sequentially from approximately 105.0 million cubic
feet per day in the second quarter of 2017 to approximately 110.5
million cubic feet per day in the third quarter of 2017. This 5%
average daily natural gas production growth also exceeded the
Company’s previous guidance expectations of 2 to 4% sequential
natural gas production growth in the third quarter of 2017.
Matador’s third quarter 2017 average daily
natural gas production was the best quarterly result in the
Company’s history.
- Average daily oil equivalent production
increased 14% sequentially from approximately 36,900 barrels of oil
equivalent (“BOE”) per day (53% oil) in the second quarter of 2017
to approximately 42,000 BOE per day (56% oil) in the third quarter
of 2017. This 14% average daily oil equivalent production growth
significantly exceeded the Company’s previous guidance expectations
of 4 to 6% sequential oil equivalent production growth in the third
quarter of 2017. Matador’s percentage of oil production increased
sequentially from 53% in the second quarter of 2017 to 56% in the
third quarter of 2017. Matador’s third
quarter 2017 average daily oil equivalent production (BOE basis)
was the best quarterly result in the Company’s
history.
- Delaware Basin average daily oil
equivalent production exceeded 30,000 BOE per day for the first
time in the Company’s history during the third quarter of 2017.
Delaware Basin average daily oil equivalent production increased
11% sequentially from approximately 27,600 BOE per day (consisting
of 16,600 barrels of oil per day and 65.9 million cubic feet of
natural gas per day) in the second quarter of 2017 to approximately
30,700 BOE per day (consisting of 18,700 barrels of oil per day and
72.1 million cubic feet of natural gas per day) in the third
quarter of 2017. The Delaware Basin contributed 79% of Matador’s
daily oil production, 65% of daily natural gas production and 73%
of daily oil equivalent production in the third quarter of
2017.
- Matador’s net income (GAAP basis)
decreased 47% sequentially from $28.5 million, or earnings of $0.28
per diluted common share, in the second quarter of 2017, to net
income (GAAP basis) of $15.0 million, or earnings of $0.15 per
diluted common share, in the third quarter of 2017. This
sequential decrease in net income was primarily attributable to
changes in certain non-cash items, including an unrealized loss on
derivatives in the third quarter of 2017 of approximately $12.4
million, as compared to an unrealized gain on derivatives of
approximately $13.2 million in the second quarter of 2017,
primarily due to an increase in oil prices during the third
quarter.
- Matador’s adjusted net income (a
non-GAAP financial measure) increased 63% sequentially from $10.9
million, or adjusted earnings of $0.11 per diluted common share, in
the second quarter of 2017, to adjusted net income (non-GAAP) of
$17.8 million, or adjusted earnings of $0.18 per diluted common
share, in the third quarter of 2017. This sequential increase
in adjusted net income was primarily attributable to increased oil
and natural gas production in the third quarter of 2017, as
compared to the second quarter of 2017.
- Adjusted earnings before interest
expense, income taxes, depletion, depreciation and amortization and
certain other items (“Adjusted EBITDA,” a non-GAAP financial
measure) increased 17% sequentially from $72.7 million in the
second quarter of 2017 to $84.8 million in the third quarter
of 2017.
Note: All references to net income, adjusted net income and
Adjusted EBITDA reported throughout this earnings release are those
values attributable to Matador Resources Company shareholders after
giving effect to any net income, net loss or Adjusted EBITDA
attributable to its third-party non-controlling interest in
Matador’s midstream affiliate, San Mateo Midstream, LLC (“San
Mateo”).
Year-Over-Year Results
- Matador’s net income (GAAP basis)
increased 26% from $11.9 million, or earnings of $0.13 per diluted
common share, in the third quarter of 2016 to net income (GAAP
basis) of $15.0 million, or earnings of $0.15 per diluted common
share, in the third quarter of 2017.
- Matador’s adjusted net income (a
non-GAAP financial measure) increased 231% from adjusted net income
(non-GAAP) of $5.4 million, or adjusted earnings of $0.06 per
diluted common share, in the third quarter of 2016 to adjusted net
income (non-GAAP) of $17.8 million, or adjusted earnings of $0.18
per diluted common share, in the third quarter of 2017.
- Matador’s Adjusted EBITDA (a non-GAAP
financial measure) increased 80% year-over-year from $47.3 million
in the third quarter of 2016 to $84.8 million in the third quarter
of 2017.
- Year-over-year, from the third quarter
of 2016 to the third quarter of 2017:
- Average daily oil production increased
57% from approximately 15,000 barrels per day to approximately
23,500 barrels per day;
- Average daily natural gas production
increased 28% from approximately 86.5 million cubic feet per day to
approximately 110.5 million cubic feet per day; and
- Average daily oil equivalent production
increased 43% from approximately 29,400 BOE per day to
approximately 42,000 BOE per day. In the Delaware Basin, average
daily oil equivalent production increased 66% from approximately
18,500 BOE per day (consisting of 11,800 barrels of oil per day and
40.5 million cubic feet of natural gas per day) to approximately
30,700 BOE per day (consisting of 18,700 barrels of oil per day and
72.1 million cubic feet of natural gas per day).
Lease Operating Expenses
- Lease operating expenses on a
unit-of-production basis decreased 9% sequentially from $4.77 per
BOE in the second quarter of 2017 to $4.32 per BOE in the third
quarter of 2017, and decreased 20% year-over-year from $5.40 per
BOE in the third quarter of last year. Lease operating expenses of
$4.32 per BOE in the third quarter of 2017 were the lowest lease
operating expenses on a unit-of-production basis that Matador has
achieved since becoming a public company in February 2012.
Proved Reserves at September 30,
2017
- Oil, natural
gas and total proved reserves at September 30, 2017 were each
all-time highs for Matador. Matador’s total proved
oil and natural gas reserves increased 38% in the first nine
months of 2017 from 105.8 million BOE (consisting of 57.0 million
barrels of oil and 292.6 billion cubic feet of natural gas) at
December 31, 2016 to 145.9 million BOE (consisting of 83.0
million barrels of oil and 377.1 billion cubic feet of natural gas)
at September 30, 2017. At September 30, 2017, approximately 57% of
Matador’s total proved oil and natural gas reserves were oil and
approximately 41% were proved developed reserves. At September 30,
2017, the Delaware Basin accounted for approximately 84% of the
Company’s total proved oil and natural gas reserves.
Acreage Acquisitions
- During the third quarter of 2017 and
through November 6, 2017, Matador acquired approximately 9,700 net
acres in the Delaware Basin, mostly in and around its existing
acreage positions. At November 6, 2017, Matador had closed all but
one of the transactions that were pending at the time of its
October 2017 equity offering, with the last transaction expected to
close this month. From January 1 through November 6, 2017, Matador
acquired approximately 25,000 net acres in the Delaware Basin,
including a small volume of associated production, for a total
acquisition cost of approximately $224 million. Excluding the value
of the production acquired, this acreage was added for a weighted
average cost of between $7,000 and $8,000 per net acre.
Significant Well Results
Significant well results included in this earnings release
include the following:
Rustler Breaks Asset Area
- The Joe Coleman 13-23S-27E RB #208H,
Tom Walters 12-23S-27E RB #208H and Michael Collins 11-23S-27E RB
#208H wells, all Wolfcamp A-XY completions in the northwestern
portion of the Rustler Breaks asset area in Eddy County, New
Mexico, flowed 1,779 BOE per day (75% oil), 1,498 BOE per day (75%
oil) and 1,534 BOE per day (76% oil), respectively, during 24-hour
initial potential tests. These wells, along with other wells
drilled and completed earlier in the year, continue to confirm the
prospectivity of the Wolfcamp A-XY across the Rustler Breaks asset
area.
- The Anne Com 15-24S-28E RB #201H well,
a Wolfcamp A-XY completion in the southeastern portion of the
Rustler Breaks asset area, flowed 1,730 BOE per day (77% oil)
during a 24-hour initial potential test.
Arrowhead and Ranger Asset Area
- The Stebbins 20 Federal #133H well,
Matador’s first operated Third Bone Spring completion in its
Arrowhead asset area in Eddy County, New Mexico, tested 1,202 BOE
per day (70% oil) during a 24-hour initial potential test. This
well marked another strong result for the Stebbins area following
the Stebbins 20 Federal #123H well, Matador’s first operated Second
Bone Spring completion in the Arrowhead asset area, which tested
1,010 BOE per day (82% oil) during a 24-hour initial potential test
as reported last quarter.
- The Airstrip 31-18S-35E RN State Com
#132H well, a Third Bone Spring completion in the Ranger asset area
in Lea County, New Mexico, tested 1,263 BOE per day (93% oil)
during a 24-hour initial potential test.
Wolf Asset Area
- The Barnett 90-TTT-B01 WF #224H well,
Matador’s first Wolfcamp B test in the Wolf asset area, flowed
1,803 BOE per day (28% oil) during a 24-hour initial potential
test. This Wolfcamp B test performed similarly to tests of the
Wolfcamp B-Blair in the Rustler Breaks asset area and validates the
Wolfcamp B as another viable completion target in the Wolf asset
area.
Borrowing Base Increase
- On October 25, 2017, Matador’s lenders
unanimously approved an increase in the borrowing base under the
Company’s revolving credit facility from $450 million to $525
million based on the lenders’ review of the Company’s proved oil
and natural gas reserves at June 30, 2017. Matador chose to keep
its “elected borrowing commitment” under the revolving credit
facility at $400 million. At November 6, 2017, the Company
continued to have no outstanding borrowings under its credit
facility.
Equity Offering
- On October 10, 2017, Matador completed
a public offering of 8.0 million shares of its common stock,
receiving proceeds of approximately $208.7 million (before
expenses). A portion of the proceeds from this offering were and
are being used to acquire approximately 6,600 net acres of
additional leasehold and minerals in the Delaware Basin at a total
acquisition cost of approximately $38 million and to fund certain
midstream initiatives and opportunities, including the acceleration
of the drilling of commercial salt water disposal wells in the
Rustler Breaks asset area on behalf of San Mateo. The remaining
proceeds will be used for other midstream development, acreage
acquisitions and general corporate purposes, including to fund a
portion of the Company’s current and future capital
expenditures.
2017 Updated Guidance Estimates, Including
Increased Production Estimates
- On November 6, 2017, Matador provided
updated 2017 guidance estimates, including increased production
estimates. These updated guidance estimates assumed five operated
drilling rigs drilling oil and natural gas wells in the Delaware
Basin throughout the fourth quarter of 2017, with a sixth operated
rig drilling commercial salt water disposal wells in the Rustler
Breaks asset area and one oil and natural gas test well in the
Antelope Ridge asset area in the fourth quarter of 2017. Matador
expects to focus its capital expenditures in the Delaware Basin for
the rest of 2017, with the exception of small amounts of capital to
maintain or extend leases or to participate in non-operated well
opportunities that may become available in the Eagle Ford and
Haynesville shales.
Updated full-year 2017 guidance estimates, as of November 6,
2017, are as follows.
- An increase in oil production to 7.7 to
7.75 million barrels, the Company’s third increase in its oil
production guidance this year. Matador’s full-year 2017 oil
production estimate of 7.725 million barrels at the midpoint of
updated 2017 guidance represents an increase of 10% from 7.05
million barrels at the midpoint of guidance on March 23, 2017 (the
Company’s Analyst Day), and an increase of 7% from 7.2 million
barrels at the midpoint of guidance on August 2, 2017. This updated
oil production guidance of 7.7 to 7.75 million barrels also
represents an increase of 52% at the midpoint of guidance, as
compared to 5.1 million barrels produced in 2016.
- An increase in natural gas production
to 37.0 to 37.5 billion cubic feet, the Company’s second increase
in its natural gas production guidance this year. Matador’s
full-year 2017 natural gas production estimate of 37.25 billion
cubic feet at the midpoint of updated 2017 guidance represents an
increase of 10% from 34.0 billion cubic feet at the midpoint of
guidance on March 23, 2017, and an increase of 3% from 36.0 billion
cubic feet at the midpoint of guidance on August 2, 2017. This
updated natural gas production guidance of 37.0 to 37.5 billion
cubic feet also represents an increase of 22% at the midpoint of
guidance, as compared to 30.5 billion cubic feet produced in
2016.
- An increase in total oil equivalent
production to 13.9 to 14.0 million BOE, the Company’s third
increase in its oil equivalent production guidance this year.
Matador’s full-year 2017 oil equivalent production estimate of
13.95 million BOE at the midpoint of updated 2017 guidance
represents an increase of 10% from 12.7 million BOE at the midpoint
of guidance on March 23, 2017, and an increase of 6% from 13.2
million BOE at the midpoint of guidance on August 2, 2017. This
updated oil equivalent production guidance of 13.9 to 14.0 million
BOE also represents an increase of 37% at the midpoint of guidance,
as compared to 10.2 million BOE produced in 2016.
- An increase in Adjusted EBITDA (a
non-GAAP financial measure) to $300 to $310 million. Matador’s
full-year 2017 Adjusted EBITDA estimate of $305 million at the
midpoint of updated 2017 guidance represents an increase of 15%
from $265 million at the midpoint of guidance on March 23, 2017,
and an increase of 13% from $270 million at the midpoint of
guidance on August 2, 2017. This Adjusted EBITDA of $300 to $310
million at the midpoint of updated 2017 guidance also represents an
increase of 93%, as compared to 2016 Adjusted EBITDA of $157.9
million. Updated Adjusted EBITDA guidance is based on estimated
average realized prices for the fourth quarter of 2017 of $50.50
per barrel for oil (West Texas Intermediate average oil price of
$53.00 per barrel per oil, less $2.50 per barrel of estimated price
differentials, using the forward strip for oil prices as of late
October 2017, and including year-to-date results) and $2.87 per
thousand cubic feet for natural gas (NYMEX Henry Hub average
natural gas price using the forward strip for natural gas as of
late October 2017 and assuming regional price differentials and
uplifts from natural gas processing roughly offset, and including
year-to-date results). These 2017 estimates reflect Matador’s 51%
ownership in San Mateo.
- Drilling and completions capital
expenditures (including equipping wells for production) of $440 to
$465 million, an increase of 10% at the midpoint from $400 to $420
million at March 23, 2017, including capital expenditures
associated with non-operated well opportunities. The increase in
drilling and completion capital expenditures is primarily
attributable to a number of factors, including, among others, (1)
one gross, but 2.7 net, additional operated wells drilled and
completed in the Delaware Basin through the third quarter of 2017
than originally anticipated, along with an accelerated pace of
drilling activity in the fourth quarter of 2017, primarily in the
Rustler Breaks asset area, (2) increased working interests acquired
on certain operated wells through purchase, non-consent by third
parties or forced pooling of interests, (3) certain modifications
to the Company’s 2017 drill schedule, primarily in the Wolf asset
area, resulting in the drilling of several additional wells with
longer laterals (6,000 to 8,000 feet) in the fourth quarter of 2017
than originally planned, (4) the use of a sixth drilling rig, which
was contracted to drill commercial salt water disposal wells, to
drill one additional Rustler Breaks well in July 2017 and the
Company’s upcoming first test well in the Antelope Ridge asset area
during the fourth quarter of 2017, (5) changes in fracture
treatment designs resulting in closer perforation cluster spacing,
more proppant and additional fracture stages in more wells than
originally planned for 2017 and (6) the Company’s participation in
an estimated 2.2 net additional non-operated well opportunities in
2017 than originally anticipated, including non-operated wells in
the Rustler Breaks, Ranger, Arrowhead and Twin Lakes asset areas.
Matador anticipates this projected increase in estimated drilling
and completion capital expenditures will largely be funded by the
Company’s anticipated increased cash flows as noted by the increase
in the Company’s Adjusted EBITDA guidance for full-year 2017 as
described above.
- Midstream capital expenditures of $66
to $74 million, an increase of 17% at the midpoint from $56 to $64
million as provided on March 23, 2017. Midstream capital
expenditures of $66 to $74 million primarily represent Matador’s
51% share of an updated 2017 capital expenditure budget of $125 to
$140 million for San Mateo. This increase in midstream capital
expenditures of approximately $10 million net to Matador results
from San Mateo’s decision to continue drilling at least five
commercial salt water disposal wells opportunistically in the
Rustler Breaks asset area by mid-2018 to provide additional
capacity for both Matador’s and other third party customers’ salt
water disposal needs. Matador expects this projected increase in
estimated midstream capital expenditures to be funded by the
approximately $15 million in San Mateo first year performance
incentives the Company expects to receive in the first quarter of
2018.
Fourth Quarter 2017 Production
Estimates
Matador’s sequential production growth—particularly its oil
production growth—was much higher than projected in the third
quarter of 2017 due to several factors, including (1) a number of
new wells in the Company’s Rustler Breaks, Arrowhead and Ranger
asset areas that exceeded expectations for both oil and natural gas
production, (2) better than projected initial oil and natural gas
production from several non-operated wells in which the Company
participated in the Delaware Basin, (3) better than expected
production response to the installation of gas lift on the
previously drilled Mallon wells in the Ranger asset area and (4)
strong initial well performance from the five Eagle Ford wells the
Company drilled and placed on production late in the second quarter
and early in the third quarter of 2017. As noted above, the
Company’s oil production grew 21%, or just over 4,000 barrels of
oil per day, in the third quarter alone. This significant oil
production growth substantially exceeded the Company’s expectations
for both the third quarter and the fourth quarter. In fact, in its
oil production guidance provided on August 2, 2017, the Company was
estimating that oil production of approximately 22,000 barrels of
oil per day would not be achieved until the fourth quarter of 2017.
Matador was pleased to reach, sustain and exceed that target
earlier than expected.
Given the particularly strong oil production growth in the third
quarter and the timing of certain completions, Matador now
anticipates that its oil production will be essentially flat in the
fourth quarter, as compared to the third quarter of 2017, and this
is reflected in its updated full-year guidance estimates at
November 6, 2017.
As noted in its August 2, 2017 earnings release, Matador’s
natural gas production was expected to peak in the third quarter of
2017, as initial production from the Haynesville shale wells
completed earlier in the year and the flush production from the
associated offset wells began to decline in the second half of
2017. Matador still anticipates a small decline of 3 to 5% in its
natural gas production during the fourth quarter of 2017 (with
natural gas production more in line with the second quarter of
2017). This is also reflected in Matador’s updated full-year
guidance estimates at November 6, 2017.
Matador currently anticipates providing its 2018 capital
expenditures program and production guidance in association with
its year-end 2017 earnings release in late February 2018. Matador
expects that its capital expenditure program for 2018 will reflect
the Company operating either five or six drilling rigs. Matador’s
decision to operate five or six drilling rigs in 2018 will depend
primarily on oil and natural gas prices, Matador’s oil and natural
gas hedging portfolio and other economic factors, but will include
considerations for opportunistic midstream development and acreage
acquisitions. Matador has the operational flexibility to reduce its
operated rig program by half in 60 to 90 days should the need arise
but at this time, believes that a five to six rig program is
optimal for 2018.
Sequential and year-over-year quarterly comparisons of selected
financial and operating items are shown in the following table:
Three Months Ended September 30, 2017
June 30, 2017 September 30,
2016 Net Production Volumes:(1) Oil (MBbl)(2) 2,166 1,767 1,376
Natural gas (Bcf)(3) 10.2 9.6 8.0 Total oil equivalent (MBOE)(4)
3,860 3,360 2,703 Average Daily Production Volumes:(1) Oil (Bbl/d)
23,538 19,423 14,960 Natural gas (MMcf/d)(5) 110.5 105.0 86.5 Total
oil equivalent (BOE/d)(6) 41,954 36,922 29,381 Average Sales
Prices: Oil, without realized derivatives (per Bbl) $ 46.25 $ 46.01
$ 42.57 Oil, with realized derivatives (per Bbl) $ 46.47 $ 46.34 $
43.18 Natural gas, without realized derivatives (per Mcf) $ 3.42 $
3.40 $ 3.08 Natural gas, with realized derivatives (per Mcf) $ 3.42
$ 3.39 $ 3.08 Revenues (millions): Oil and natural gas revenues $
134.9 $ 113.8 $ 83.1 Third-party midstream services revenues $ 3.2
$ 2.1 $ 1.6 Realized gain on derivatives $ 0.5 $ 0.6 $ 0.9
Operating Expenses (per BOE): Production taxes, transportation and
processing $ 4.06 $ 3.83 $ 4.58 Lease operating $ 4.32 $ 4.77 $
5.40 Plant and other midstream services operating $ 0.80 $ 0.88 $
0.54 Depletion, depreciation and amortization $ 12.38 $ 12.28 $
11.10 General and administrative(7) $ 4.19 $ 5.11 $ 4.86 Total(8) $
25.75 $ 26.87 $ 26.48 Net income (millions)(9) $ 15.0 $ 28.5 $ 11.9
Earnings per common share (diluted)(9) $ 0.15 $ 0.28 $ 0.13
Adjusted net income (millions)(9)(10) $ 17.8 $ 10.9 $ 5.4 Adjusted
earnings per common share (diluted)(9)(11) $ 0.18 $ 0.11 $ 0.06
Adjusted EBITDA (millions)(9)(12) $ 84.8
$ 72.7 $ 47.3 (1) Production volumes
and proved reserves reported in two streams: oil and natural gas,
including both dry and liquids-rich natural gas. (2) One thousand
barrels of oil. (3) One billion cubic feet of natural gas. (4) One
thousand barrels of oil equivalent, estimated using a conversion
ratio of one barrel of oil per six thousand cubic feet of natural
gas. (5) Millions of cubic feet of natural gas per day. (6) Barrels
of oil equivalent per day, estimated using a conversion ratio of
one barrel of oil per six thousand cubic feet of natural gas. (7)
Includes approximately $0.34, $2.09 and $1.33 per BOE of non-cash,
stock-based compensation expense in the third quarter of 2017, the
second quarter of 2017 and the third quarter of 2016, respectively.
(8) Total does not include the impact of full-cost ceiling
impairment charges or immaterial accretion expenses. (9)
Attributable to Matador Resources Company shareholders. (10)
Adjusted net income (loss) is a non-GAAP financial measure. For a
definition of adjusted net income (loss) and a reconciliation of
adjusted net income (loss) (non-GAAP) to net income (loss) (GAAP),
please see “Supplemental Non-GAAP Financial Measures.” (11)
Adjusted earnings (loss) per share is a non-GAAP financial measure.
For a definition of adjusted earnings (loss) per share and a
reconciliation of adjusted earnings (loss) per share (non-GAAP) to
earnings (loss) per share (GAAP), please see “Supplemental Non-GAAP
Financial Measures.” (12) Adjusted EBITDA is a non-GAAP financial
measure. For a definition of Adjusted EBITDA and a reconciliation
of Adjusted EBITDA (non-GAAP) to net income (loss) (GAAP) and net
cash provided by operating activities (GAAP), please see
“Supplemental Non-GAAP Financial Measures.”
A short presentation summarizing the highlights of Matador’s
third quarter 2017 earnings release is also included on the
Company’s website at www.matadorresources.com on the
Presentations & Webcasts page under the Investors tab.
Management Comments
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “The
Matador staff continued to deliver both strong execution and better
than expected operational and financial results for its
shareholders in the third quarter of 2017. The Board and I wish to
thank them for their hard work, planning and extra effort on behalf
of all Matador shareholders. Simply put, this quarter was the best
quarter in the Company’s history and provides a solid platform for
future growth in Matador’s per share value.
“Obviously, we continue to be very pleased with the record
production and reserves growth we are achieving across the northern
Delaware Basin. Our Delaware Basin average daily oil equivalent
production increased 11% sequentially from the second quarter of
2017, and increased 66% year-over-year from the third quarter of
2016. In the third quarter of 2017, our Delaware Basin average
daily oil equivalent production was 30,700 BOE per day, topping
30,000 BOE per day in the Delaware for the first time.
“In addition, our total company-wide proved reserves increased
38% in the first nine months of 2017 from 105.8 million BOE at
December 31, 2016 to a record level of 145.9 million BOE at
September 30, 2017. This increase in total proved reserves reflects
not only the success of our drilling and completions operations,
but also our success in acquiring additional acreage in and around
areas actively being drilled in the Delaware Basin. Detailed
information is contained herein on various successful wells we have
recently drilled and completed—both exploratory and development—in
the northern Delaware Basin. Significant reductions in per unit
lease operating expenses and general and administrative expenses
also contributed to increases in cash flows and proved reserves
values.
“As in previous quarters, we continued to strategically add to
and improve our acreage position in the Delaware Basin at
attractive prices for a weighted average cost of approximately
$7,000 to $8,000 per acre during the third quarter and into the
fourth quarter of 2017. This additional acreage was acquired
primarily in and near our existing asset areas in the Delaware
Basin in Lea and Eddy Counties, New Mexico and Loving County,
Texas. At November 6, 2017, we are pleased to report that our
acreage position in the Delaware Basin has grown to approximately
201,000 gross (116,000 net) acres. We are very proud of our land
and legal staff for all of its hard work and diligence in
assembling this excellent acreage position for Matador—quite an
accomplishment when you consider we had only about 7,500 gross and
net acres in the basin when we went public just over five years
ago. This land position has been and will continue to be the fuel
for Matador’s growth and success in the coming years. Our midstream
operations also continue to exceed expectations, and early in the
fourth quarter of 2017, San Mateo reached a new milestone for salt
water disposal operations, disposing of more than 100,000 barrels
of water per day combined at its Wolf and Rustler Breaks commercial
facilities.
“In early October, we completed an offering of 8.0 million
shares of our common stock, resulting in gross proceeds of
approximately $209 million, a portion of which we used to fund a
set of unique land and midstream opportunities that might not be
available in two to three years—or even next year. In late October,
we were pleased that Matador’s lenders raised the borrowing base
under our revolving credit facility from $450 million to $525
million based on their review of our proved oil and natural gas
reserves at June 30, 2017. We chose to keep our elected borrowing
commitment at $400 million, and we had no borrowings outstanding
under our credit facility at November 6, 2017. The cash from the
equity offering, along with our cash on hand at the end of the
third quarter, our anticipated future cash flows and the increased
availability under our credit facility puts Matador in a very
strong and very well-funded capital position to execute our
drilling and midstream programs throughout the remainder of 2017
and into 2018 and to be opportunistic for value-adding acreage
acquisitions at favorable prices. I would also like to offer a
special thank you to our shareholders—new and old—for helping with
the offering and for their continued support and interest.
“Matador currently expects to continue operating five
state-of-the-art rigs drilling oil and natural gas wells in the
Delaware Basin throughout the remainder of 2017, although we have
considerable operational flexibility to modify our drilling
program—up or down—based upon fluctuations in commodity prices and
other factors. We also expect to continue drilling at least five
commercial salt water disposal wells by mid-2018 in the Rustler
Breaks asset area on behalf of our midstream affiliate, San Mateo,
with a sixth operated modern rig. After drilling these commercial
salt water disposal wells, we will determine whether to release
that rig or to use it to drill additional oil and natural gas wells
for the remainder of 2018. Matador looks forward to finishing 2017
on a strong note in the fourth quarter and to another year of
strong execution and results in 2018.”
Part II - Detailed
Financial Results and Operations Update
Operating and Financial Results - Third Quarter 2017
Production and Revenues
Average daily oil equivalent production increased 14%
sequentially from 36,922 BOE per day (53% oil) in the second
quarter of 2017 to 41,954 BOE per day (56% oil) in the third
quarter of 2017, and increased 43% year-over-year from 29,381 BOE
per day (51% oil) in the third quarter of 2016. Matador’s increased
oil equivalent production, and particularly its oil production, in
the third quarter of 2017, exceeded the Company’s previous guidance
expectations due to several factors, including (1) several new
wells in the Company’s Rustler Breaks, Arrowhead and Ranger asset
areas that exceeded the Company’s expectations for both oil and
natural gas production, (2) better than projected initial oil and
natural gas production from several non-operated wells in which the
Company participated in the Delaware Basin, (3) a better than
expected production response to the installation of gas lift in the
previously drilled Mallon wells in the Ranger asset area and (4)
strong initial well performance from the five operated Eagle Ford
wells the Company drilled and placed on production late in the
second quarter and early in the third quarter of 2017. Average
daily oil equivalent production growth of 14% significantly
exceeded the Company’s previous guidance expectations of 4 to 6%
sequential oil equivalent production growth in the third quarter of
2017. Matador’s third quarter 2017 average
daily oil equivalent production was the best quarterly result in
the Company’s history.
Average daily oil production increased 21% sequentially from
19,423 barrels per day in the second quarter of 2017 to 23,538
barrels per day in the third quarter of 2017, and increased 57%
year-over-year from 14,960 barrels per day in the third quarter of
2016. Average daily oil production growth of 21% significantly
exceeded the Company’s previous guidance expectations of 5 to 7%
sequential oil production growth in the third quarter of 2017.
Matador’s third quarter 2017 average daily
oil production was the best quarterly result in the Company’s
history.
Average daily natural gas production increased 5% sequentially
from 105.0 million cubic feet per day in the second quarter of 2017
to 110.5 million cubic feet per day in the third quarter of 2017,
and increased 28% year-over-year from 86.5 million cubic feet per
day in the third quarter of 2016. Average daily natural gas
production growth of 5% also exceeded the Company’s previous
guidance expectations of 2 to 4% sequential natural gas production
growth in the third quarter of 2017. Matador’s third quarter 2017 average daily natural gas
production was the best quarterly result in the Company’s
history.
Matador’s Delaware Basin average daily oil equivalent production
was 30,707 BOE per day (73% of total oil equivalent production) in
the third quarter of 2017, consisting of 18,689 barrels of oil per
day (79% of total oil production) and 72.1 million cubic feet of
natural gas per day (65% of total natural gas production). The
Company’s Delaware Basin average daily oil equivalent production
exceeded 30,000 BOE per day for the first time in the Company’s
history during the third quarter of 2017. Matador’s Delaware Basin
oil equivalent production increased 11% sequentially, as compared
to 27,622 BOE per day in the second quarter of 2017, and increased
66% year-over-year, as compared to 18,498 BOE per day in the third
quarter of 2016.
Oil and natural gas revenues increased 19% sequentially from
$113.8 million in the second quarter of 2017 to $134.9 million in
the third quarter of 2017, and increased 62% year-over-year from
$83.1 million in the third quarter of 2016. The increase in oil and
natural gas production noted above was primarily responsible for
the increase in oil and natural gas revenues, as realized oil and
natural gas prices remained mostly unchanged between the second and
third quarters of 2017. Realized oil prices increased 1% from
$46.01 per barrel in the second quarter of 2017 to $46.25 per
barrel in the third quarter of 2017, and increased 9%
year-over-year from $42.57 per barrel in the third quarter of 2016.
Realized natural gas prices remained flat at $3.42 per thousand
cubic feet in the third quarter of 2017, as compared to $3.40 per
thousand cubic feet in the second quarter of 2017, but increased
11% year-over-year from $3.08 per thousand cubic feet in the third
quarter of 2016. Realized oil prices remained relatively unchanged
in the third quarter, as compared to the second quarter of 2017, as
a result of little change in West Texas Intermediate oil prices, as
well as similar oil price differentials, which were $1.95 per
barrel in the third quarter, as compared to $2.13 per barrel in the
second quarter of 2017. Realized natural gas prices were unchanged
in the third quarter of 2017 as a result of somewhat higher natural
gas liquids (“NGL”) prices offsetting somewhat lower Henry Hub
natural gas prices during the third quarter, as compared to the
second quarter of 2017. Including its NGL revenues in the realized
average natural gas price, Matador reported an uplift of $0.47 per
thousand cubic feet above the NYMEX Henry Hub average natural gas
prices in the third quarter of 2017, as compared to $0.32 per
thousand cubic feet in the second quarter of 2017.
Third-party midstream services revenues increased 53%
sequentially from $2.1 million in the second quarter of 2017 to
$3.2 million in the third quarter of 2017, and doubled
year-over-year from $1.6 million in the third quarter of 2016. The
sequential and year-over-year increases primarily reflect increased
third-party natural gas processing and transportation revenues, as
well as increased salt water disposal revenues in the third quarter
of 2017, as compared to the second quarter of 2017 and the third
quarter of 2016. Third party midstream services revenues are those
revenues from midstream operations related to third parties,
including working interest owners in Matador-operated wells; all
revenues from Matador-owned production are eliminated in
consolidation.
Total realized revenues, including realized hedging gains and
losses and third-party midstream services revenues, increased 19%
sequentially from $116.4 million in the second quarter of 2017 to
$138.7 million in the third quarter of 2017, and increased 62%
year-over-year from $85.5 million in the third quarter of 2016.
Realized hedging gains from oil and natural gas hedges were $0.5
million in the third quarter of 2017, as compared to realized
hedging gains of $0.6 million in the second quarter of 2017 and
$0.9 million in the third quarter of 2016.
Net Income and Earnings Per
Share
For the third quarter of 2017, Matador reported net income of
approximately $15.0 million, or earnings of $0.15 per diluted
common share on a GAAP basis, as compared to net income of
approximately $28.5 million, or earnings of $0.28 per diluted
common share on a GAAP basis, in the second quarter of 2017, and as
compared to net income of $11.9 million, or earnings of $0.13 per
diluted common share on a GAAP basis, in the third quarter of 2016.
The sequential decrease in net income (GAAP basis) in the third
quarter of 2017 was primarily attributable to changes in certain
non-cash items, including particularly an unrealized loss on
derivatives of $12.4 million in the third quarter of 2017, as
compared to an unrealized gain on derivatives of $13.2 million in
the second quarter of 2017.
Excluding certain non-cash and non-recurring items, including
the unrealized loss on derivatives, from net income resulted in
adjusted net income (a non-GAAP financial measure) of approximately
$17.8 million, or adjusted earnings of $0.18 per diluted common
share, in the third quarter of 2017, as compared to adjusted net
income of approximately $10.9 million, or adjusted earnings of
$0.11 per diluted common share, in the second quarter of 2017, and
adjusted net income of $5.4 million, or adjusted earnings of $0.06
per diluted common share, in the third quarter of 2016.
Matador’s net income (GAAP basis) for the third quarter of 2017
was favorably impacted by (1) record oil and natural gas
production, (2) a realized gain on derivatives of $0.5 million, (3)
no full-cost ceiling impairment in the quarter and (4) no income
tax expense. Matador’s net income for the third quarter of 2017 was
unfavorably impacted by (1) an unrealized loss on derivatives and
(2) increased non-cash depletion, depreciation and amortization
expenses.
For a reconciliation of adjusted net income (non-GAAP) and
adjusted earnings (loss) per diluted common share (non-GAAP) to net
income (loss) (GAAP) and earnings (loss) per diluted common share
(GAAP), please see “Supplemental Non-GAAP Financial Measures”
below.
Adjusted EBITDA
Adjusted EBITDA, a non-GAAP financial measure, increased 17%
sequentially from $72.7 million in the second quarter of 2017 to
$84.8 million in the third quarter of 2017, and increased 80%
year-over-year from $47.3 million in the third quarter of 2016. The
sequential increase in Adjusted EBITDA was primarily attributable
to the increases in both oil and natural gas production. The
year-over-year increase in Adjusted EBITDA was primarily
attributable to both the increases in oil and natural gas
production and the increases in realized oil and natural gas prices
between the third quarters of 2016 and 2017.
For a definition of Adjusted EBITDA and a reconciliation of
Adjusted EBITDA (non-GAAP) to net income (loss) (GAAP) and net cash
provided by operating activities (GAAP), please see “Supplemental
Non-GAAP Financial Measures” below.
Operating Expenses
Production taxes, transportation and
processing
Production taxes, transportation and processing expenses on a
unit-of-production basis increased 6% sequentially from $3.83 per
BOE in the second quarter of 2017 to $4.06 per BOE in the third
quarter of 2017, but decreased 11% year-over-year from $4.58 per
BOE in the third quarter of 2016. Production taxes increased during
the third quarter of 2017 as a result of the 19% increase in oil
and natural gas revenues in the third quarter, as compared to the
second quarter of 2017. Production taxes also increased primarily
as a result of the 62% year-over-year increase in oil and natural
gas revenues. However, Matador realized a decrease in
transportation and processing expenses year-over-year primarily as
a result of the start-up in late August 2016 of the cryogenic
natural gas processing plant in the Rustler Breaks asset area (the
“Black River Processing Plant”). On a unit-of-production basis,
these third quarter 2017 expenses also benefited from significantly
higher daily oil equivalent production of 14% and 43%,
respectively, as compared to the second quarter of 2017 and the
third quarter of 2016.
Lease operating expenses
(“LOE”)
Lease operating expenses on a unit-of-production basis decreased
9% sequentially from $4.77 per BOE in the second quarter of 2017 to
$4.32 per BOE in the third quarter of 2017, and decreased 20%
year-over-year from $5.40 per BOE in the third quarter of 2016. The
sequential decrease in lease operating expenses on a
unit-of-production basis was primarily attributable to higher daily
oil equivalent production in the third quarter of 2017, as compared
to the second quarter of 2017, but also resulted from lower
contract labor and workover expenses in the third quarter of 2017,
as well as continued improvement in many other areas, including
operational efficiencies. Lease operating expenses of $4.32 per BOE
in the third quarter of 2017 were the lowest quarterly lease
operating expenses on a unit-of-production basis that the Company
has achieved since becoming a public company in February 2012.
Plant and other midstream services
operating expenses
Plant and other midstream services operating expenses decreased
9% sequentially from $0.88 per BOE in the second quarter of 2017 to
$0.80 per BOE in the third quarter of 2017, but increased 48%
year-over-year from $0.54 per BOE in the third quarter of 2016. The
increase in plant and other midstream services operating expenses
on a year-over-year basis is attributable primarily to the overall
increase in the scope of San Mateo’s midstream operations in the
Delaware Basin since the third quarter of 2016. Plant and other
midstream services operating expenses of $0.80 per BOE were
somewhat below the Company’s expectation of $0.90 per BOE for
full-year 2017; year-to-date, these expenses have averaged $0.82
per BOE.
Depletion, depreciation and amortization
(“DD&A”)
Depletion, depreciation and amortization expenses on a
unit-of-production basis increased 1% sequentially from $12.28 per
BOE in the second quarter of 2017 to $12.38 per BOE in the third
quarter of 2017, and increased 12% from $11.10 per BOE in the third
quarter of 2016. The increase in DD&A expenses on a
year-over-year basis resulted from increased drilling and
completion costs, primarily stimulation treatment costs (resulting
from larger fracture treatments using more stages and more
proppant, in addition to service cost increases), associated with
the Company’s 2017 Delaware Basin drilling program. For the nine
months ended September 30, 2017, DD&A expenses on a
unit-of-production basis of $12.08 per BOE remained below the
Company’s full-year DD&A projection of $12.75 per BOE. The
Company anticipates a small increase in DD&A expenses on a
unit-of-production basis in the fourth quarter of 2017.
General and administrative
(“G&A”)
General and administrative expenses on a unit-of-production
basis decreased 18% from $5.11 per BOE in the second quarter of
2017 to $4.19 per BOE in the third quarter of 2017. During the
second quarter of 2017, general and administrative expenses
included a one-time, non-recurring charge of approximately $1.5
million, which was attributable to a change in the vesting schedule
applicable to equity awards granted to the Company’s directors.
Year-over-year general and administrative expenses decreased 14% on
a unit-of-production basis from $4.86 per BOE in the third quarter
of 2016. General and administrative expenses of $4.19 per BOE for
the third quarter of 2017 also approached the lowest quarterly
G&A expenses on a unit-of-production basis that Matador has
achieved since becoming a public company in February 2012.
Proved Reserves, Standardized Measure and PV-10
The following table summarizes Matador’s estimated total proved
oil and natural gas reserves at September 30, 2017,
December 31, 2016 and September 30, 2016.
September 30, 2017
December 31,2016 September 30,
2016 Estimated proved reserves:(1)(2) Oil (MBbl)(3) 83,014
56,977 55,031 Natural Gas (Bcf)(4) 377.1 292.6
279.4 Total (MBOE)(5) 145,860
105,752 101,604 Estimated proved
developed reserves: Oil (MBbl)(3) 31,961 22,604 21,204 Natural Gas
(Bcf)(4) 164.4 126.8 118.8
Total (MBOE)(5) 59,357 43,731
41,012 Percent developed 40.7 % 41.4 % 40.4 %
Estimated proved undeveloped reserves: Oil (MBbl)(3) 51,053 34,373
33,827 Natural Gas (Bcf)(4) 212.7 165.9
160.6 Total (MBOE)(5) 86,503
62,021 60,592 Standardized Measure (in
millions) $ 1,096.2 $ 575.0 $ 516.8 PV-10(6) (in millions)
$ 1,225.9 $ 581.5
$ 524.7 (1) Numbers in table may not total due to
rounding. (2) Matador’s estimated proved reserves, Standardized
Measure and PV-10 were determined using index prices for oil and
natural gas, without giving effect to derivative transactions, and
were held constant throughout the life of the properties. The
unweighted arithmetic averages of the first-day-of-the-month prices
for the period from October 2016 through September 2017 were $46.27
per Bbl for oil and $3.00 per MMBtu for natural gas, for the period
from January 2016 through December 2016 were $39.25 per Bbl for oil
and $2.48 per MMBtu for natural gas and for the period from October
2015 through September 2016 were $38.17 per Bbl for oil and $2.28
per MMBtu for natural gas. These prices were adjusted by property
for quality, energy content, regional price differentials,
transportation fees, marketing deductions and other factors
affecting the price received at the wellhead. Matador reports its
proved reserves in two streams, oil and natural gas, and the
economic value of the natural gas liquids associated with the
natural gas is included in the estimated wellhead natural gas price
on those properties where the natural gas liquids are extracted and
sold. (3) One thousand barrels of oil. (4) One billion cubic feet
of natural gas. (5) One thousand barrels of oil equivalent,
estimated using a conversion ratio of one barrel of oil per six
thousand cubic feet of natural gas. (6) PV-10 is a non-GAAP
financial measure. For a reconciliation of PV-10 (non-GAAP) to
Standardized Measure (GAAP), please see “Supplemental Non-GAAP
Financial Measures” below.
Matador’s estimated total proved oil
and natural gas reserves were 145.9 million BOE at
September 30, 2017, an all-time high, consisting of
83.0 million barrels of oil and 377.1 billion cubic feet of natural
gas (both also all-time highs), with a Standardized Measure of $1.1
billion (GAAP basis) and a PV-10, a non-GAAP financial measure, of
$1.2 billion, an increase of 38% from estimated total proved oil
and natural gas reserves of 105.8 million BOE at December 31,
2016, consisting of 57.0 million barrels of oil and 292.6 billion
cubic feet of natural gas, with a Standardized Measure of $575.0
million and a PV-10 of $581.5 million. The 91% increase in
Standardized Measure and 111% increase in PV-10 at
September 30, 2017, as compared to December 31, 2016, were
attributable both to the increase in total proved reserves and the
increase in oil and natural gas prices used to determine
Standardized Measure and PV-10. At September 30, 2017, the
12-month arithmetic averages of oil and natural gas prices used to
estimate proved reserves were $46.27 per barrel and $3.00 per
MMBtu, respectively, as compared to $39.25 per barrel and $2.48 per
MMBtu, respectively, at December 31, 2016.
Proved oil reserves increased 46% from 57.0 million barrels at
December 31, 2016 to 83.0 million barrels at
September 30, 2017, and increased 51% from 55.0 million
barrels at September 30, 2016. At September 30, 2017,
approximately 57% of the Company’s total proved reserves were oil
and 43% were natural gas. Approximately 41% of the Company’s total
proved reserves were proved developed reserves at
September 30, 2017, as compared to 41% at December 31, 2016
and 40% at September 30, 2016. In addition, at
September 30, 2017, approximately 84% of Matador’s proved oil
and natural gas reserves were attributable to the Delaware Basin,
as compared to 75% at December 31, 2016 and 73% at September 30,
2016.
The reserves estimates at all dates presented in the table above
were prepared by the Company’s internal engineering staff and those
estimates at December 31 and September 30, 2016 were also audited
by an independent reservoir engineering firm, Netherland, Sewell
& Associates, Inc. These reserves estimates were prepared in
accordance with the SEC’s rules for oil and natural gas reserves
reporting and do not include any unproved reserves classified as
probable or possible that might exist on Matador’s properties.
For a reconciliation of PV-10 (non-GAAP) to Standardized Measure
(GAAP), please see “Supplemental Non-GAAP Financial Measures”
below.
Operations Update
Drilling and Completion Activities
During the third quarter of 2017, Matador continued to focus on
the exploration, delineation and development of the Company’s
Delaware Basin acreage in Loving County, Texas and Lea and Eddy
Counties, New Mexico. Matador began 2017 operating four drilling
rigs in the Delaware Basin and continued to do so throughout the
first quarter. In late April 2017, Matador added a fifth drilling
rig in the Delaware Basin and expects to operate five rigs in the
Delaware Basin throughout the remainder of 2017, including three
rigs in its Rustler Breaks asset area, one rig in its Wolf and
Jackson Trust asset areas and one rig in its Ranger/Arrowhead and
Twin Lakes asset areas. Matador still expects to direct over 90% of
its estimated 2017 capital expenditures to drilling and completion
and midstream operations in the Delaware Basin.
During the third quarter of 2017, Matador took delivery of a
sixth drilling rig for the purpose of drilling a second commercial
salt water disposal well in the Rustler Breaks asset area for its
midstream affiliate, San Mateo. The salt water disposal well was
not ready to spud until early August 2017 and, in the interim,
Matador used this rig to drill one additional oil and natural gas
well in its Rustler Breaks asset area. Subsequent to drilling this
second salt water disposal well, San Mateo elected to commission
the drilling and completion of three additional commercial salt
water disposal wells and the construction of associated commercial
salt water disposal facilities in the Rustler Breaks asset area,
resulting in five commercial salt water disposal wells in the
Rustler Breaks asset area by mid-2018.
At November 6, 2017, the second commercial salt water disposal
well in the Rustler Breaks asset area had been completed and had
just begun disposing of water, with an anticipated disposal
capacity of approximately 30,000 barrels of water per day. A third
commercial salt water disposal well at Rustler Breaks had finished
drilling and was expected to be completed in the fourth quarter.
The fourth planned commercial salt water disposal well is expected
to begin drilling before the end of the year. In the interim, in
view of the potential for the Antelope Ridge asset area, Matador
expects to temporarily move this sixth rig to that area to spud its
first oil and natural gas well there before the middle of November.
Should San Mateo experience any land or regulatory delays in
permitting or drilling the fourth or fifth commercial salt water
disposal wells, however, Matador would likely elect to use this
sixth rig on a temporary basis to drill additional oil and natural
gas wells in either the Rustler Breaks or Antelope Ridge asset
areas. Matador will determine whether to continue operating this
sixth rig for its oil and natural gas well drilling program later
in the first quarter or early second quarter of 2018, after the
last of the five planned commercial salt water disposal wells has
been drilled. Matador currently expects to provide its 2018 capital
expenditures program and production guidance in association with
its year-end 2017 earnings release in late February 2018.
Matador finished drilling its five-well program in the Eagle
Ford shale in South Texas during the second quarter of 2017. Two of
these wells, the Falls City #1H and #2H wells, were completed and
turned to sales in mid-June 2017. The other three wells, the Martin
Ranch C #11H well and the Martin MAK D #49H and D #50H wells, were
completed and turned to sales in early July 2017, with all five
wells on production for essentially the entire third quarter. These
five Eagle Ford wells tested between approximately 1,100 and 1,700
BOE per day at oil cuts between 91 and 94%, as reported in the
Company’s August 2, 2017 earnings release. Matador has no
additional operated drilling activities planned in the Eagle Ford
shale for the remainder of 2017.
Matador has built significant optionality into its drilling
program. Three of its rigs are on longer-term contracts, although
with average remaining terms of only between 12 and 18 months. The
other three rigs, including the sixth rig being used for drilling
the salt water disposal wells at Rustler Breaks, are all on
short-term contracts with obligations ranging from two months to
six months. This affords Matador the ability to easily and quickly
modify its drilling program as management may determine necessary
based on changing commodity prices and other factors.
During the third quarter of 2017, Matador completed and turned
to sales a total of 30 gross (20.9 net) horizontal wells in its
various operating areas, including 22 gross (19.0 net) operated
wells and eight gross (1.9 net) non-operated wells, as summarized
in the table below.
Operated Non-Operated
Total Operating Area Gross Net Gross
Net Gross Net Delaware Basin 19 16.0 7
1.9 26 17.9 Eagle Ford Shale 3 3.0 0 0.0 3 3.0 Haynesville Shale
0 0.0 1
0.0 1 0.0
Total
22 19.0
8 1.9
30 20.9
As noted in the table above, during the third quarter of 2017,
Matador completed and turned to sales 26 gross (17.9 net)
horizontal wells in its various asset areas in the Delaware Basin,
including 19 gross (16.0 net) operated and seven gross (1.9 net)
non-operated wells, as summarized in the table below.
Operated Non-Operated
Total Operating Area Gross Net Gross
Net Gross Net Rustler Breaks 13 10.8 4
1.1 17 11.9 Arrowhead 3 2.2 1 0.1 4 2.3 Ranger 1 1.0 0 0.0 1 1.0
Wolf 2 2.0 0 0.0 2 2.0 Antelope Ridge 0
0.0 2 0.7 2
0.7
Total 19
16.0 7
1.9 26 17.9
As of the end of the third quarter, Matador was somewhat ahead
of the pace of its projected 2017 operated drilling and completions
program as outlined in its March 23, 2017 Analyst Day presentation.
At September 30, 2017, Matador had turned to sales 48 gross (41.6
net) operated wells, as compared to initial estimates of 47 gross
(38.7 net) wells. Thus, at September 30, 2017, the Company was
ahead of its anticipated schedule by one gross well, but as a
result of slight modifications to the drill schedule and the
acquisition of additional working interests in those wells drilled
during 2017 (through purchase, non-consent of other parties or
forced pooling of certain interests), Matador had turned to sales
an additional 2.9 net operated wells.
Prior to September 30, 2017, Matador had completed and turned to
sales the eight gross (5.8 net) operated and non-operated wells
anticipated for 2017 in the Eagle Ford shale, as well as the six
gross (0.6 net) non-operated wells anticipated for 2017 in the
Haynesville shale. While the Company may participate in additional
non-operated well opportunities in both of these areas during the
remainder of 2017, any additional capital expenditures are
anticipated to be minimal.
Delaware Basin - Southeast New Mexico and West Texas
Rustler Breaks Asset Area – Eddy County,
New Mexico
Matador operated three drilling rigs in its Rustler Breaks asset
area throughout the third quarter of 2017. In addition, the Company
temporarily operated a fourth drilling rig at Rustler Breaks
beginning in July 2017 to drill a Second Bone Spring test prior to
beginning drilling operations on the second and third commercial
salt water disposal wells being drilled on behalf of San Mateo in
the Rustler Breaks asset area. During the third quarter of 2017,
the Company completed and turned to sales 17 gross (11.9 net)
horizontal wells in this area, including 13 gross (10.8 net)
operated wells and four gross (1.1 net) non-operated wells. The 13
operated wells included 10 Wolfcamp A-XY completions, two Wolfcamp
B-Blair completions and one Second Bone Spring completion. The 13
operated wells had an average completed lateral length between
4,400 and 4,500 feet. The 24-hour initial potential test results
from all 13 operated wells are summarized in the table below.
Initial Potential Oil Gas
BOE % Oil FCP(1)
Choke Well Interval (Bbl/d) (Mcf/d) (BOE/d) (psi) (inch) Dr.
Scrivner Federal 01-24S-28E RB #124H Second Bone Spring 696 1,243
903 77% 850 38/64” B. Banker 33-23S-28E RB #201H Wolfcamp A-XY 927
1,652 1,202 77% 1,900 34/64” Tiger 14-24S-28E RB #202H Wolfcamp
A-XY 1,026 2,155 1,385 74% 2,200 30/64” Jim Tom Lontos 30-23S-28E
RB #206H Wolfcamp A-XY 1,016 2,142 1,373 74% 1,780 34/64” Charlie
Sweeney State Com 31-23S-28E RB #202H Wolfcamp A-XY 898 1,836 1,204
75% 1,620 32/64” Joe Coleman 13-23S-27E RB #208H Wolfcamp A-XY
1,339 2,637 1,779 75% 2,300 28/64” Kathy Coleman 14-23S-27E RB
#208H Wolfcamp A-XY 859 1,648 1,134 76% 1,700 30/64” Tom Walters
12-23S-27E RB #208H Wolfcamp A-XY 1,121 2,263 1,498 75% 1,575
34/64” Michael Collins 11-23S-27E RB #208H Wolfcamp A-XY 1,162
2,234 1,534 76% 1,540 34/64” Anne Com 15-24S-28E RB #201H Wolfcamp
A-XY 1,338 2,349 1,730 77% 2,150 32/64” Tiger 14-24S-28E RB #201H
Wolfcamp A-XY 1,064 2,337 1,454 73% 2,125 34/64” Tiger 14-24S-28E
RB #221H Wolfcamp B-Blair 572 4,471 1,317 43% 3,325 28/64” Tiger
14-24S-28E RB #222H Wolfcamp B-Blair 632 6,210 1,667 38% 3,550
30/64”
(1) Flowing casing pressure.
Overall, the well results achieved in the Rustler Breaks asset
area in the third quarter of 2017 continued to be both strong and
consistent in both the Wolfcamp A-XY and Wolfcamp B-Blair
completions. Further, the Dr. Scrivner Federal 01-24S-28E RB #124H
(Dr. Scrivner #124H) well was the best Second Bone Spring test
drilled by Matador to date in the Rustler Breaks asset area.
Although the focus of its drilling and completion activities is
expected to be in the Wolfcamp A-XY and Wolfcamp B intervals for
the remainder of 2017 and 2018, the Company does expect to conduct
additional tests in the Second Bone Spring and Wolfcamp A-Lower
intervals, as well as perhaps one or two yet untested targets, as
part of its 2018 drilling program.
As noted in the table above, the wells completed in the Wolfcamp
A-XY interval during the third quarter of 2017 tested between 1,100
and 1,800 BOE per day at oil cuts ranging from 73 to 77%. These
test results are comparable to those from other Wolfcamp A-XY
completions in the Rustler Breaks asset area reported in prior
periods. Of particular note in the third quarter were the results
from the Joe Coleman 13-23S-27E RB #208H (Joe Coleman #208H), Tom
Walters 12-23S-27E RB #208H (Tom Walters #208H) and Michael Collins
11-23S-27E RB #208H (Michael Collins #208H) wells, which were all
Wolfcamp A-XY completions in the northwestern portion of the
Rustler Breaks asset area. As shown in the table above, these three
wells tested 1,779 BOE per day, 1,498 BOE per day and 1,534 BOE per
day, respectively, at oil cuts of approximately 75%. The results of
each of these wells were among the best wells drilled by the
Company in the Rustler Breaks asset area and provide further
confirmation of the potential for the Wolfcamp A-XY interval
throughout the Rustler Breaks asset area.
One of the key achievements of Matador’s drilling and
completions program in the Rustler Breaks asset area in 2017 has
been the success of those wells drilled in the more northwestern
portion of the acreage position. Early performance from the Joe
Coleman #208H, Tom Walters #208H and Michael Collins #208H wells is
comparable to wells drilled in this portion of the Rustler Breaks
asset area earlier in 2017. Among those wells previously drilled,
as examples, the Joe Coleman 13-23S-27E RB #206H (Joe Coleman
#206H) and the Tom Walters 12-23S-27E RB #203H (Tom Walters #203H)
wells have been discussed in the Company’s prior earnings releases.
As of late October 2017, in just less than five months of
production, the Joe Coleman #206H well had produced approximately
175,000 BOE (73% oil), and the well continues to track 20% above
the Company’s 900,000 BOE Wolfcamp A-XY type curve for the Rustler
Breaks asset area. As of late October 2017, in just less than nine
months of production, the Tom Walters #203H well had produced
approximately 220,000 BOE (73% oil) and is also tracking above the
Company’s 900,000 BOE type curve for this area. Matador continues
to attribute the strong results from many of its recent Wolfcamp
A-XY wells to the larger fracture treatments, consisting of
approximately 40 barrels of fluid and 3,000 pounds of primarily
30/50 mesh sand per completed lateral foot, including the use of
diverting agents, that it has pumped consistently in the Wolfcamp
A-XY completions in the Rustler Breaks asset area since
mid-2016.
At November 6, 2017, Matador planned to operate three drilling
rigs at Rustler Breaks throughout the remainder of 2017. Matador’s
drilling success at Rustler Breaks has resulted in gross natural
gas volumes that have significantly exceeded the 60 million cubic
feet per day “nameplate” capacity of the Black River Processing
Plant operated by San Mateo. San Mateo’s expansion of the Black
River Processing Plant to provide an incremental 200 million cubic
feet per day of natural gas processing capacity is expected to be
operational in the first quarter of 2018. In the meantime, Matador
is using third-party options for its excess natural gas processing
needs.
Ranger and Arrowhead Asset Areas – Lea
County, New Mexico and Eddy County, New Mexico
Matador operated one drilling rig in its Ranger and Arrowhead
asset areas during the third quarter of 2017. During this period,
the Company completed and turned to sales five gross (3.3 net)
horizontal wells in these areas, including four gross (3.2 net)
operated wells and one gross (0.1 net) non-operated well. The four
operated wells included two Second Bone Spring completions and two
Third Bone Spring completions, and all had completed lateral
lengths between 4,200 and 4,400 feet. The 24-hour initial potential
test results from all four operated wells are summarized in the
table below.
Initial Potential Oil Gas
BOE % Oil FCP(1)
Choke Well Interval (Bbl/d) (Mcf/d) (BOE/d) (psi) (inch)
Heyco State #121H Second Bone Spring 437 569 532 82% On ESP N/A
Heyco State #122H Second Bone Spring 696 679 809 86% On ESP N/A
Stebbins 20 Federal #133H Third Bone Spring 845 2,143 1,202 70% On
ESP N/A Airstrip 31-18S-35E RN State Com #132H Third Bone Spring
1,172 548 1,263 93% On ESP N/A (1) Flowing casing pressure.
The Stebbins 20 Federal #133H (Stebbins 20 #133H) well and both
the Heyco State #121H and #122H wells were in the Arrowhead asset
area, while the Airstrip 31-18S-35E RN State Com #132H (Airstrip
#132H) well was located in the eastern portion of the Ranger asset
area.
The Stebbins 20 #133H well was Matador’s first Third Bone Spring
completion in the Arrowhead asset area. This well was drilled from
the same pad as the Stebbins 20 Federal #123H (Stebbins 20 #123H)
well, a Second Bone Spring completion, which tested 1,010 BOE per
day (82% oil) as reported in the Company’s second quarter 2017
earnings release. The Stebbins 20 #133H well had a completed
lateral length of approximately 4,300 feet and was completed with
17 fracture stages carrying a total of approximately 160,000
barrels of fracturing fluid and approximately 12.7 million pounds
of primarily 20/40 mesh sand (or about 3,000 pounds of sand per
completed lateral foot).
Matador has been pleased with the early performance of the
Stebbins 20 #123H and Stebbins 20 #133H wells. The Stebbins 20
#123H well continues to be particularly strong and has shown
minimal decline, producing approximately 141,000 BOE in its first
five months of production. The Stebbins 20 #123H well is tracking
approximately 30% ahead of Matador’s 700,000 BOE Second Bone Spring
type curve for the Ranger and Arrowhead asset areas. The Stebbins
20 #133H well has exhibited a more typical decline, having produced
approximately 50,000 BOE (66% oil) in about 2.5 months of
production. The Stebbins 20 #133H well is tracking just ahead of
Matador’s 500,000 BOE Third Bone Spring type curve for the Ranger
and Arrowhead asset areas.
Given these early results, Matador has three additional Bone
Spring tests in progress on the Stebbins acreage at November 6,
2017. Matador anticipates drilling several additional wells,
including both Second and Third Bone Spring targets, on this
acreage during 2018. The Company currently has 11 federal permits
for drilling additional wells on this acreage block over the next
few years, and this acreage block lends itself to laterals longer
than one mile.
In the Ranger asset area, the results of the Airstrip 31-18S-35E
RN State Com #132H (Airstrip #132H) well, which tested 1,263 BOE
per day (93% oil) exceeded Matador’s expectations. The Airstrip
#132H well had a completed lateral length of approximately 4,300
feet and was completed with 18 fracture stages carrying a total of
approximately 170,000 barrels of fracturing fluid and approximately
12.4 million pounds of primarily 20/40 mesh sand (or about 2,800
pounds of sand per completed lateral foot). Following ESP
installation, the Airstrip #132H well has produced approximately
40,000 BOE (92% oil) in its first 1.5 months of production, and its
early performance is tracking Matador’s 700,000 BOE Third Bone
Spring type curve for the Ranger and Arrowhead asset areas.
Another significant event that occurred in the Ranger asset area
during the third quarter of 2017 was the installation of gas lift
on the three Mallon wells, the Mallon 27 Federal Com #1H, #2H and
#3H (Mallon #1H, #2H and #3H) wells, each of which was drilled and
completed in the Third Bone Spring and turned to sales in the
fourth quarter of 2016. As reported previously, each of these wells
tested between 2,400 and 2,800 BOE per day (91% oil) and continued
to be excellent wells throughout their first ten to eleven months
of production. Unlike most Third Bone Spring wells completed in the
Ranger and Arrowhead asset areas, these wells were tested while
flowing up casing, and the wells continued to flow up casing until
the recent installation of gas lift on each well.
Each of the Mallon wells exhibited a strong production response
to the installation of gas lift. Daily production rates from the
Mallon #1H well, which had declined to 600 to 700 barrels of oil
per day, increased to an average of over 1,300 barrels of oil per
day in the first 30 days following gas lift installation. Daily
production rates from the Mallon #2H well, which had declined to
400 to 500 barrels of oil per day, increased to an average of
almost 1,500 barrels of oil per day in the first 30 days following
gas lift installation. Daily production rates from the Mallon #3H
well, which had declined to 400 to 500 barrels of oil per day,
increased to an average of approximately 900 barrels of oil per day
in the first 30 days following gas lift installation. Natural gas
production from these wells responded in a similar fashion.
Production declines have resumed on these wells at a similar rate
to what was observed prior to the installation of gas lift, but
from much higher daily production rates, resulting in significant
incremental production from these wells in the third quarter of
2017 compared to the Company’s estimates for the third quarter. The
installation of gas lift on these three wells contributed
substantially to the 21% sequential increase in Matador’s third
quarter average daily oil production, as compared to the second
quarter of 2017.
Since being turned to sales late in the fourth quarter of 2016,
the three Mallon wells have produced over 1 million BOE. The Mallon
#1H well produced approximately 390,000 BOE (90% oil) in its first
eleven months of production, the Mallon #2H well produced
approximately 350,000 BOE (90% oil) in its first ten months of
production and the Mallon #3H well produced approximately 310,000
BOE (91% oil) in its first ten months of production.
At November 6, 2017, Matador planned to operate one drilling rig
in its Ranger and Arrowhead asset areas throughout the remainder of
2017 and into 2018.
Wolf and Jackson Trust Asset Areas –
Loving County, Texas
Matador operated one drilling rig in its Wolf and Jackson Trust
asset areas during the third quarter of 2017. During the third
quarter of 2017, the Company completed and turned to sales two
gross (2.0 net) operated horizontal wells in the Wolf asset area,
including its first tests of both the Avalon and Wolfcamp B
intervals in the Wolf asset area. The test results from both of
these wells are summarized in the table below.
Initial Potential Oil Gas
BOE % Oil FCP(1)
Choke Well Interval (Bbl/d) (Mcf/d) (BOE/d) (psi) (inch)
Barnett 90-TTT-B01 WF #104H Avalon 60 197 93 65% 466 64/64” Barnett
90-TTT-B01 WF #224H Wolfcamp B 502 7,807 1,803 28% 4,125 38/64”
(1) Flowing casing pressure.
The Barnett 90-TTT-B01 WF #224H (Barnett #224H) well was
Matador’s first test of the Wolfcamp B interval in the Wolf asset
area. The Barnett #224H well had a completed lateral length of
approximately 4,800 feet and was completed with 31 fracture stages
carrying a total of approximately 221,000 barrels of fracturing
fluid and approximately 13.9 million pounds of 30/50 and 40/70 mesh
sand (or approximately 2,900 pounds of sand per foot of completed
lateral). As noted in the table above, the Barnett #224H well
tested 1,803 BOE per day (28% oil) at 4,125 psi during a 24-hour
initial potential test. This well exhibited the highest flowing
casing pressure on any well yet completed by the Company in the
Wolf asset area, and the Company believes it was capable of flowing
at much higher oil and natural gas rates on a larger choke size.
The initial test results and early performance from the Barnett
#224H well exceeded Matador’s expectations and are similar to those
from the Wolfcamp B-Blair interval in the Rustler Breaks asset
area. The Barnett #224H well was turned to sales at a reduced flow
rate on a smaller choke and has exhibited minimal decline in its
first two months of production. Matador is pleased with the results
of this initial test of the Wolfcamp B interval, which validates
the Wolfcamp B as another viable completion target in the Wolf
asset area. The Company anticipates drilling additional Wolfcamp B
tests on other portions of its Wolf asset area during 2018.
The Barnett 90-TTT-B01 WF #104H (Barnett #104H) well was
Matador’s first test of the Avalon interval in the Wolf asset area.
The Barnett #104H well had a completed lateral length of
approximately 4,800 feet and was completed with 31 fracture stages
carrying a total of approximately 215,000 barrels of fracturing
fluid and approximately 8.7 million pounds of 30/50 and 40/70 mesh
sand (or approximately 1,800 pounds of sand per foot of completed
lateral). As noted in the table above, this well continues to clean
up following completion and has tested approximately 60 barrels of
oil per day and 200 thousand cubic feet of natural gas per day to
date. The Avalon interval is also producing significant volumes of
water, in excess of 4,000 barrels of water per day, and Matador has
recently replaced the initial ESP installed in this well with a
larger capacity ESP to assist with its flowback and clean up
following completion.
Following the drilling and completion of the Barnett #104H and
#224H wells, Matador began drilling a two-well pad on its Kerr
leasehold in the northern portion of the Wolf asset area. Both of
the Kerr wells will be Wolfcamp A-XY tests with completed lateral
lengths of approximately 6,300 feet and 7,700 feet. At November 6,
2017, the Kerr wells were undergoing completion operations, and
Matador was drilling the first well on its Larson leasehold in the
Wolf asset area. Matador anticipates that this Larson well will
have a completed lateral length of approximately 7,400 feet.
At November 6, 2017, Matador planned to operate one drilling rig
in its Wolf and Jackson Trust asset areas throughout the remainder
of 2017 and into 2018. The majority of the wells planned in the
Wolf asset area for the remainder of 2017 and 2018 are anticipated
to be Wolfcamp A-X or A-Y completions with longer completed lateral
lengths between 6,000 and 8,000 feet.
Antelope Ridge – Lea County, New
Mexico
Matador expects to spud its first operated well in the Antelope
Ridge asset area in mid-November 2017. The Company is excited to
begin the delineation of its acreage position in Antelope Ridge,
where other operators in the area have successfully tested the
Brushy Canyon, First, Second and Third Bone Spring and Upper
Wolfcamp intervals. Matador’s first test is planned to be in the
Upper Wolfcamp formation. This first test well is anticipated to be
drilled during the latter part of the fourth quarter of 2017, but
is not scheduled for completion until early 2018.
Midstream Update
During the third quarter of 2017, Matador’s midstream joint
venture, San Mateo, continued working on the expansion of the Black
River Processing Plant to add an incremental 200 million cubic feet
per day to the existing 60 million cubic feet per day of cryogenic
natural gas processing capacity. At November 6, 2017, the expansion
project was proceeding on schedule, and the incremental natural gas
processing capacity is expected to become operational in the first
quarter of 2018. Matador is eagerly anticipating the expansion
becoming operational as the existing plant is full with Matador
operated natural gas, even though San Mateo is currently able to
process, through certain acceptable variations in plant operations,
approximately 65 million cubic feet of natural gas per day.
In October 2017, San Mateo’s second commercial salt water
disposal well in the Rustler Breaks asset area was completed and
began disposing of water. With this second well online, San Mateo
has an anticipated water disposal capacity of over 50,000 barrels
of water per day in the Rustler Breaks asset area. San Mateo plans
to add to that disposal capacity in the near-term, as it plans to
drill and complete three additional commercial salt water disposal
wells and construct the associated commercial salt water disposal
facilities in the Rustler Breaks asset area, bringing San Mateo’s
commercial salt water disposal well count in the Rustler Breaks
asset area to five by mid-2018. At November 6, 2017, the third
commercial salt water disposal well at Rustler Breaks had finished
drilling and was expected to be completed in the fourth quarter.
Early in the fourth quarter of 2017, San Mateo reached a new
milestone for its salt water disposal operations, disposing of more
than 100,000 barrels of water per day combined at both its Wolf and
Rustler Breaks commercial facilities.
In addition to the expansion of the Black River Processing Plant
and the additional commercial salt water disposal wells, associated
facilities and third-party connections at Rustler Breaks, San Mateo
has several other midstream initiatives in the Delaware Basin that
are either in progress or that it expects to begin by the end of
the first quarter of 2018. These initiatives include additional
buildout of San Mateo’s gathering systems in the Wolf and Rustler
Breaks asset areas, primarily consisting of expansion of the oil
gathering system in the Wolf asset area and the buildout of an oil
gathering system in the Rustler Breaks asset area.
Matador incurred approximately $18 million in capital
expenditures related to its midstream initiatives during the third
quarter of 2017 and had incurred approximately $40 million in
capital expenditures primarily attributable to its 51% interest in
San Mateo year-to-date through September 30, 2017.
Delaware Basin Acreage Update
At November 6, 2017, Matador held approximately 201,000 gross
(115,700 net) acres in the Permian Basin, primarily in the Delaware
Basin in Lea and Eddy Counties, New Mexico and Loving County,
Texas, as shown in the table below.
Matador’s Permian Basin Acreage at November 6, 2017
(approximate):
Asset
Area
Gross Acres Net Acres Ranger (Lea County, NM) 30,100
16,500 Arrowhead (Eddy County, NM) 57,200 23,500 Rustler Breaks
(Eddy County, NM) 40,300 21,400 Antelope Ridge (Lea County, NM)
12,100 8,900 Wolf and Jackson Trust (Loving County, TX) 13,600
9,300 Twin Lakes (Lea County, NM) 46,300 34,900 Other 1,500 1,200
Total 201,100 115,700
During the third quarter of 2017 and through November 6, 2017,
Matador acquired approximately 9,700 net acres in the Delaware
Basin, mostly in and around its existing acreage positions,
including new leasing activities and acquisitions of small
interests from mineral and working interest owners in Matador’s
operated wells. Matador closed over 30 such transactions in the
period from July 1 through November 6, 2017. At November 6, 2017,
Matador had closed all but one of the transactions that were
pending at the time of its October 2017 equity offering, with the
last transaction expected to close this month.
From January 1 through November 6, 2017, Matador acquired
approximately 25,000 net acres in the Delaware Basin, including a
small volume of associated production, for a total acquisition cost
of approximately $224 million. Excluding the value of the
production acquired, this acreage was added for a weighted average
cost of between $7,000 and $8,000 per net acre.
Capital Spending Update
On November 6, 2017, Matador revised its capital spending
estimates for full-year 2017. The Company now anticipates that it
will incur capital expenditures of (1) $440 to $465 million for
drilling, completing and equipping operated and non-operated wells
in 2017, primarily in the Delaware Basin and (2) $66 to $74 million
for its share of various midstream projects undertaken by San
Mateo, primarily representing 51% of an updated 2017 joint venture
capital expenditure budget of $125 to $140 million.
The increase in estimated drilling and completions capital
expenditures is primarily attributable to a variety of factors,
including, among others:
- one gross, but 2.7 net, additional
operated wells drilled and completed in the Delaware Basin through
the third quarter of 2017 than originally anticipated, along with
an accelerated pace of drilling activity in the fourth quarter of
2017, primarily in the Rustler Breaks asset area;
- increased working interests acquired on
certain operated wells through purchase, non-consent by third
parties or forced pooling of interests;
- certain modifications to the Company’s
2017 drill schedule, primarily in the Wolf asset area, resulting in
the drilling of several additional longer lateral wells (6,000 to
8,000 feet) in the fourth quarter of 2017 than originally
planned;
- the use of the sixth drilling rig,
which was contracted to drill commercial salt water disposal wells,
to drill one additional Rustler Breaks well in July 2017 and to
drill the Company’s upcoming first test well in the Antelope Ridge
asset area during the fourth quarter of 2017;
- changes in fracture treatment designs
resulting in closer perforation cluster spacing, more proppant and
additional fracture stages pumped in more wells than originally
planned for 2017; and
- the Company’s participation in an
estimated 2.2 net additional non-operated well opportunities in
2017 than originally planned, including non-operated wells in the
Rustler Breaks, Ranger, Arrowhead and Twin Lakes asset areas.
Matador anticipates that the projected increase in its estimated
drilling and completion capital expenditures will be largely funded
through the anticipated increase in the Company’s cash flows as
reflected in the increase in the Company’s Adjusted EBITDA guidance
for full-year 2017.
The increase of approximately $10 million in midstream capital
expenditures net to Matador primarily results from San Mateo’s
decision to continue drilling at least five commercial salt water
disposal wells in the Rustler Breaks asset area by mid-2018 to
provide additional capacity for both Matador’s and other third
party customers’ salt water disposal needs. Matador expects the
projected increase in estimated midstream capital expenditures to
be funded by the approximately $15 million in San Mateo first year
performance incentives the Company expects to receive in the first
quarter of 2018.
During the third quarter of 2017, Matador’s total capital
spending for drilling and completion and midstream operations was
approximately $154 million, including approximately $136 million
for drilling and completion operations and approximately $18
million for midstream operations. As of September 30, 2017, Matador
had incurred approximately $355 million for drilling and completion
operations and approximately $40 million for midstream operations
since January 1, 2017.
Matador intends to continue acquiring acreage and mineral
interests, principally in the Delaware Basin, throughout 2017.
These expenditures are opportunity specific and per-acre prices can
vary significantly based on the opportunity. As a result, it is
difficult to estimate these 2017 capital expenditures with any
degree of certainty; therefore, Matador has not provided estimated
capital expenditures related to acreage and mineral acquisitions
for 2017. Matador will provide periodic updates regarding completed
acquisitions, as it has done in the Delaware Basin Acreage Update
in this earnings release.
Liquidity Update
At September 30, 2017, the borrowing base under Matador’s
revolving credit facility was $450 million based on the lenders’
review of the Company’s proved oil and natural gas reserves at
December 31, 2016, with the Company maintaining its “elected
borrowing commitment” at $400 million. At September 30, 2017,
Matador had cash on hand totaling approximately $20 million, not
including approximately $11 million of restricted cash (most of
which is associated with San Mateo), no outstanding borrowings
under the Company’s revolving credit facility and approximately
$0.8 million in outstanding letters of credit. At November 6, 2017,
the Company continued to have no outstanding borrowings under its
credit facility and had approximately $2.1 million in outstanding
letters of credit.
On October 10, 2017, Matador completed a public offering of 8.0
million shares of its common stock, receiving proceeds of
approximately $208.7 million (before expenses). A portion of the
proceeds from this offering were and are being used to acquire
approximately 6,600 net acres of additional leasehold and minerals
in the Delaware Basin at a total acquisition cost of approximately
$38 million and to fund certain midstream initiatives and
opportunities, including the acceleration of the drilling of
commercial salt water disposal wells in the Rustler Breaks asset
area on behalf of San Mateo. The remaining proceeds will be used
for other midstream development and general corporate purposes,
including to fund a portion of the Company’s current and future
capital expenditures. After giving effect to the equity offering,
Matador’s pro forma ratio of net debt to Adjusted EBITDA was
approximately 1.2 at September 30, 2017.
On October 25, 2017, Matador’s lenders unanimously increased the
borrowing base under the Company’s revolving credit facility to
$525 million based on their review of the Company’s proved oil and
natural gas reserves at June 30, 2017. Matador chose to keep its
“elected borrowing commitment” at $400 million.
As a result of the recent equity offering and the increase in
its borrowing base, at November 6, 2017, Matador remained in a
strong financial position and is well funded to execute the
remainder of its 2017 drilling program and midstream operations, as
well as its anticipated drilling program and midstream operations
into 2018. Matador intends to fund these capital requirements
primarily using cash on hand and anticipated cash flows from
operations, but can call upon its fully undrawn line of credit
should additional capital be needed. Currently, Matador does not
have a separate line of credit for its midstream operations.
Hedging Positions
From time to time, Matador uses derivative financial instruments
to mitigate its exposure to commodity price risk associated with
oil, natural gas and natural gas liquids prices and to protect its
cash flows and borrowing capacity.
At November 6, 2017, Matador had the following hedges in
place, in the form of costless collars and swaps, for the remainder
of 2017.
- Approximately 0.8 million barrels of
oil at a West Texas Intermediate (“WTI”) weighted average floor
price of $45 per barrel and a WTI weighted average ceiling price of
$56 per barrel.
- Approximately 4.2 billion cubic feet of
natural gas at a weighted average floor price of $2.51 per MMBtu
and a weighted average ceiling price of $3.60 per MMBtu.
- Approximately 0.9 million gallons of
natural gas liquids at a weighted average price of $0.89 per
gallon.
Matador estimates that it now has approximately 55% of its
anticipated oil production and approximately 65% of its anticipated
natural gas production hedged for the remainder of 2017 based on
the midpoint of its updated production guidance.
At November 6, 2017, Matador had the following hedges in
place, in the form of costless collars and swaps, for 2018.
- Approximately 2.9 million barrels of
oil at a WTI weighted average floor price of $44 per barrel and a
WTI weighted average ceiling price of $60 per barrel.
- Approximately 0.7 million barrels of
oil at a Louisiana Light Sweet (“LLS”) weighted average floor price
of $45 per barrel and a LLS weighted average ceiling price of $63
per barrel.
- Approximately 5.2 million barrels of
oil at a weighted average Midland-Cushing basis differential of
-$1.05 per barrel.
- Approximately 16.8 billion cubic feet
of natural gas at a weighted average floor price of $2.58 per MMBtu
and a weighted average ceiling price of $3.67 per MMBtu.
Conference Call Information
The Company will host a live conference call on Tuesday,
November 7, 2017, at 9:00 a.m. Central Time to review its third
quarter 2017 financial results and operational highlights. To
access the conference call, domestic participants should dial (855)
875-8781 and international participants should dial (720) 634-2925.
The conference ID and passcode is 5896337. The conference call will
also be available through the Company’s website at www.matadorresources.com on the Presentations
& Webcasts page under the Investors tab. The replay for the
event will be available on the Company’s website at www.matadorresources.com on the Presentations
& Webcasts page under the Investors tab through November 30,
2017.
About Matador Resources Company
Matador is an independent energy company engaged in the
exploration, development, production and acquisition of oil and
natural gas resources in the United States, with an emphasis on oil
and natural gas shale and other unconventional plays. Its current
operations are focused primarily on the oil and liquids-rich
portion of the Wolfcamp and Bone Spring plays in the Delaware Basin
in Southeast New Mexico and West Texas. Matador also operates in
the Eagle Ford shale play in South Texas and the Haynesville shale
and Cotton Valley plays in Northwest Louisiana and East Texas.
Additionally, Matador conducts midstream operations, primarily
through its midstream joint venture, San Mateo Midstream, LLC, in
support of its exploration, development and production operations
and provides natural gas processing, natural gas, oil and salt
water gathering services and salt water disposal services to third
parties on a limited basis.
For more information, visit Matador Resources Company at
www.matadorresources.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. “Forward-looking statements” are statements related to
future, not past, events. Forward-looking statements are based on
current expectations and include any statement that does not
directly relate to a current or historical fact. In this context,
forward-looking statements often address expected future business
and financial performance, and often contain words such as “could,”
“believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,”
“may,” “should,” “continue,” “plan,” “predict,” “potential,”
“project,” “hypothetical,” “forecasted” and similar expressions
that are intended to identify forward-looking statements, although
not all forward-looking statements contain such identifying words.
Such forward-looking statements include, but are not limited to,
statements about guidance, projected or forecasted financial and
operating results, results in certain basins, objectives, project
timing, expectations and intentions and other statements that are
not historical facts. Actual results and future events could differ
materially from those anticipated in such statements, and such
forward-looking statements may not prove to be accurate. These
forward-looking statements involve certain risks and uncertainties,
including, but not limited to, the following risks related to
financial and operational performance: general economic conditions;
the Company’s ability to execute its business plan, including
whether its drilling program is successful; the ability of the
Company’s midstream joint venture to expand the Black River
cryogenic processing plant, the timing of such expansion and the
operating results thereof; the timing and operating results of the
buildout by the Company’s midstream joint venture of oil, natural
gas and water gathering systems and the drilling of any additional
salt water disposal wells; changes in oil, natural gas and natural
gas liquids prices and the demand for oil, natural gas and natural
gas liquids; its ability to replace reserves and efficiently
develop current reserves; costs of operations; delays and other
difficulties related to producing oil, natural gas and natural gas
liquids; its ability to make acquisitions on economically
acceptable terms; its ability to integrate acquisitions;
availability of sufficient capital to execute its business plan,
including from future cash flows, increases in its borrowing base
and otherwise; weather and environmental conditions; and other
important factors which could cause actual results to differ
materially from those anticipated or implied in the forward-looking
statements. For further discussions of risks and uncertainties, you
should refer to Matador’s filings with the Securities and Exchange
Commission (“SEC”), including the “Risk Factors” section of
Matador’s most recent Annual Report on Form 10-K and any subsequent
Quarterly Reports on Form 10-Q. Matador undertakes no obligation
and does not intend to update these forward-looking statements to
reflect events or circumstances occurring after the date of this
press release, except as required by law, including the securities
laws of the United States and the rules and regulations of the SEC.
You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in
their entirety by this cautionary statement.
Matador Resources Company and Subsidiaries CONDENSED
CONSOLIDATED BALANCE SHEETS - UNAUDITED
September 30, December 31,
(In thousands, except par value and share
data)
2017 2016 ASSETS Current
assets Cash $ 20,178 $ 212,884 Restricted cash 10,744 1,258
Accounts receivable Oil and natural gas revenues 49,885 34,154
Joint interest billings 53,721 19,347 Other 5,406 5,167 Derivative
instruments 60 — Lease and well equipment inventory 4,801 3,045
Prepaid expenses and other assets 5,550 3,327
Total current assets 150,345 279,182 Property and equipment,
at cost Oil and natural gas properties, full-cost method Evaluated
2,842,810 2,408,305 Unproved and unevaluated 600,803 479,736 Other
property and equipment 240,924 160,795 Less accumulated depletion,
depreciation and amortization (1,987,370 ) (1,864,311
)
Net property and equipment
1,697,167 1,184,525 Other assets Derivative instruments 285 — Other
assets 740 958 Total other assets
1,025 958 Total assets $ 1,848,537
$ 1,464,665 LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities Accounts payable $ 13,839 $ 4,674 Accrued
liabilities 158,345 101,460 Royalties payable 53,639 23,988 Amounts
due to affiliates 12,749 8,651 Derivative instruments 3,641 24,203
Advances from joint interest owners 4,346 1,700 Amounts due to
joint ventures 4,873 4,251 Other current liabilities 663
578 Total current liabilities 252,095 169,505
Long-term liabilities Senior unsecured notes payable 574,027
573,924 Asset retirement obligations 23,305 19,725 Derivative
instruments 209 751 Amounts due to joint ventures — 1,771 Other
long-term liabilities 6,104 7,544 Total
long-term liabilities 603,645 603,715 Shareholders’ equity Common
stock - $0.01 par value, 160,000,000 and 120,000,000 shares
authorized; 100,566,054 and 99,518,764 shares issued; and
100,439,595 and 99,511,931 shares outstanding, respectively 1,006
995 Additional paid-in capital 1,455,605 1,325,481 Accumulated
deficit (548,819 ) (636,351 ) Treasury stock, at cost, 126,459 and
6,833 shares, respectively (1,589 ) — Total
Matador Resources Company shareholders’ equity 906,203 690,125
Non-controlling interest in subsidiaries 86,594
1,320 Total shareholders’ equity 992,797
691,445 Total liabilities and shareholders’
equity $ 1,848,537 $ 1,464,665 Matador
Resources Company and Subsidiaries CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS - UNAUDITED
Three
Months Ended Nine Months Ended
(In thousands, except per share data)
September 30, September 30, 2017
2016 2017
2016 Revenues Oil and natural
gas revenues $ 134,948 $ 83,079 $ 363,559 $ 196,341 Third-party
midstream services revenues 3,218 1,566 6,871 2,956 Realized gain
(loss) on derivatives 485 885 (1,176 ) 10,413 Unrealized (loss)
gain on derivatives (12,372 ) 3,203
21,449 (30,261 ) Total revenues 126,279 88,733
390,703 179,449 Expenses Production taxes, transportation and
processing 15,666 12,388 40,348 30,846 Lease operating 16,689
14,605 48,486 41,300 Plant and other midstream services operating
3,096 1,449 8,379 3,537 Depletion, depreciation and amortization
47,800 30,015 123,066 90,185 Accretion of asset retirement
obligations 323 276 937 828 Full-cost ceiling impairment — — —
158,633 General and administrative 16,156
13,146 49,671 39,506 Total
expenses 99,730 71,879 270,887
364,835 Operating income (loss) 26,549 16,854
119,816 (185,386 ) Other income (expense) Net gain on asset sales
and inventory impairment 16 1,073 23 3,140 Interest expense (8,550
) (6,880 ) (26,229 ) (20,244 ) Other (expense) income (36 )
(141 ) 1,956 (17 ) Total other expense
(8,570 ) (5,948 ) (24,250 ) (17,121 )
Income (loss) before income taxes 17,979 10,906 95,566 (202,507 )
Income tax (benefit) provision Current —
(1,141 ) — (1,141 ) Total income tax benefit
— (1,141 ) — (1,141 ) Net
income (loss) 17,979 12,047 95,566 (201,366 ) Net income
attributable to non-controlling interest in subsidiaries
(2,940 ) (116 ) (8,034 ) (209 ) Net income
(loss) attributable to Matador Resources Company shareholders $
15,039 $ 11,931 $ 87,532 $ (201,575 ) Earnings
(loss) per common share Basic $ 0.15 $ 0.13 $ 0.87
$ (2.24 ) Diluted $ 0.15 $ 0.13 $ 0.87
$ (2.24 ) Weighted average common shares outstanding Basic
100,365
93,384
100,141 90,016 Diluted
100,504
93,724
100,580 90,016
Matador Resources Company and Subsidiaries CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS - UNAUDITED
Nine
Months Ended
(In thousands)
September 30, 2017
2016 Operating activities Net income (loss) $ 95,566
$ (201,366 ) Adjustments to reconcile net income (loss) to net cash
provided by operating activities Unrealized (gain) loss on
derivatives (21,449 ) 30,261 Depletion, depreciation and
amortization 123,066 90,185 Accretion of asset retirement
obligations 937 828 Full-cost ceiling impairment — 158,633
Stock-based compensation expense 12,488 9,138 Amortization of debt
issuance cost 103 899 Net gain on asset sales and inventory
impairment (23 ) (3,140 ) Changes in operating assets and
liabilities Accounts receivable (50,343 ) (7,782 ) Lease and well
equipment inventory (1,666 ) (669 ) Prepaid expenses (2,224 ) (74 )
Other assets 217 480 Accounts payable, accrued liabilities and
other current liabilities 35,068 9,710 Royalties payable 29,651
5,225 Advances from joint interest owners 2,646 3,147 Income taxes
payable — (2,848 ) Other long-term liabilities (1,521 )
3,835 Net cash provided by operating activities
222,516 96,462 Investing activities Oil and natural gas properties
capital expenditures (517,270 ) (288,175 ) Expenditures for other
property and equipment (80,560 ) (57,148 ) Proceeds from sale of
assets 977 5,173 Restricted cash — 43,098 Restricted cash in
less-than-wholly-owned subsidiaries (9,486 ) (544 )
Net cash used in investing activities (606,339 ) (297,596 )
Financing activities Borrowings under Credit Agreement — 65,000
Proceeds from issuance of common stock — 142,350 Cost to issue
equity — (830 ) Proceeds from stock options exercised 2,920 —
Contributions related to formation of Joint Venture 171,500 —
Contributions from non-controlling interest owners of
less-than-wholly-owned subsidiaries 29,400 — Distributions to
non-controlling interest owners of less-than-wholly-owned
subsidiaries (5,635 ) — Taxes paid related to net share settlement
of stock-based compensation (4,415 ) (1,552 ) Purchase of
non-controlling interest of less-than-wholly-owned subsidiary
(2,653 ) — Net cash provided by financing
activities 191,117 204,968 (Decrease)
increase in cash (192,706 ) 3,834 Cash at beginning of period
212,884 16,732 Cash at end of period $
20,178 $ 20,566
Supplemental Non-GAAP Financial Measures
Adjusted EBITDA
This press release 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 consolidated financial statements, such as industry
analysts, investors, lenders and rating agencies. “GAAP” means
Generally Accepted Accounting Principles in the United States of
America. The Company believes Adjusted EBITDA helps it evaluate its
operating performance and compare its results of operations from
period to period without regard to its financing methods or capital
structure. The Company defines Adjusted EBITDA as earnings before
interest expense, income taxes, depletion, depreciation and
amortization, accretion of asset retirement obligations, property
impairments, unrealized derivative gains and losses, certain other
non-cash items and non-cash stock-based compensation expense, and
net gain or loss on asset sales and inventory impairment. Adjusted
EBITDA is not a measure of net income (loss) or net cash provided
by operating activities as determined by GAAP.
Adjusted EBITDA should not be considered an alternative to, or
more meaningful than, net income (loss) or net cash provided by
operating activities as determined in accordance with GAAP or as an
indicator of the Company’s operating performance or liquidity.
Certain items excluded from Adjusted EBITDA are significant
components of understanding and assessing a company’s financial
performance, such as a company’s cost of capital and tax structure.
Adjusted EBITDA may not be comparable to similarly titled measures
of another company because all companies may not calculate Adjusted
EBITDA in the same manner. 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, that are of a
historical nature. Where references are pro forma, forward-looking,
preliminary or prospective in nature, and not based on historical
fact, the table does not provide a reconciliation. The Company
could not provide such reconciliation without undue hardship
because the forward-looking Adjusted EBITDA numbers included in
this press release are estimations, approximations and/or ranges.
In addition, it would be difficult for the Company to present a
detailed reconciliation on account of many unknown variables for
the reconciling items, including future income taxes, full-cost
ceiling impairments, unrealized gains or losses on derivatives and
gains or losses on asset sales and inventory impairments. For the
same reasons, we are unable to address the probable significance of
the unavailable information, which could be material to future
results.
Three Months Ended Year
Ended (In thousands)
September 30, 2017
June 30, 2017 September 30, 2016
December 31, 2016 Unaudited Adjusted EBITDA
Reconciliation to Net Income (Loss): Net income (loss)
attributable to Matador Resources Company shareholders $ 15,039 $
28,509 $ 11,931 $ (97,421 ) Net income attributable to
non-controlling interest in subsidiaries 2,940
3,178 116 364 Net income (loss)
17,979 31,687 12,047 (97,057 ) Interest expense 8,550 9,224 6,880
28,199 Total income tax provision (benefit) — — (1,141 ) (1,036 )
Depletion, depreciation and amortization 47,800 41,274 30,015
122,048 Accretion of asset retirement obligations 323 314 276 1,182
Full-cost ceiling impairment — — — 158,633 Unrealized loss (gain)
on derivatives 12,372 (13,190 ) (3,203 ) 41,238 Stock-based
compensation expense 1,296 7,026 3,584 12,362 Net gain on asset
sales and inventory impairment (16 ) —
(1,073 ) (107,277 ) Consolidated Adjusted EBITDA 88,304
76,335 47,385 158,292 Adjusted EBITDA attributable to
non-controlling interest in subsidiaries (3,471 )
(3,683 ) (125 ) (400 ) Adjusted EBITDA attributable
to Matador Resources Company shareholders $ 84,833 $ 72,652
$ 47,260 $ 157,892
Three Months Ended Year Ended (In thousands)
September 30, 2017 June 30, 2017
September 30, 2016 December 31, 2016
Unaudited Adjusted EBITDA Reconciliation to Net Cash Provided by
Operating Activities: Net cash provided by operating activities
$ 101,274 $ 59,933 $ 46,862 $ 134,086 Net change in operating
assets and liabilities (21,481 ) 7,198 (4,909 ) (1,809 ) Interest
expense, net of non-cash portion 8,511 9,204 6,573 27,051 Current
income tax provision (benefit) — — (1,141 ) (1,036 ) Adjusted
EBITDA attributable to non-controlling interest in subsidiaries
(3,471 ) (3,683 ) (125 ) (400 )
Adjusted EBITDA attributable to Matador Resources Company
shareholders $ 84,833 $ 72,652 $ 47,260 $
157,892
Adjusted Net Income (Loss) and Adjusted
Earnings (Loss) Per Diluted Common Share
This press release 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 Matador Resources Company shareholders,
adjusted for dollar and per share impact of certain items,
including unrealized gains or losses on derivatives, the impact of
full cost-ceiling impairment charges, if any, and non-recurring
transaction costs for certain acquisitions or other non-recurring
expense items, along with the related tax effect for all periods.
This non-GAAP financial information is provided as additional
information for investors and is not in accordance with, or an
alternative to, GAAP financial measures. Additionally, these
non-GAAP financial measures may be different than similar measures
used by other companies. The Company believes the presentation of
adjusted net income (loss) and adjusted earnings (loss) per diluted
common share provides useful information to investors, as it
provides them an additional relevant comparison of the Company’s
performance across periods and to the performance of the Company’s
peers. In addition, these non-GAAP financial measures reflect
adjustments for items of income and expense that are often excluded
by industry analysts and other users of the Company’s financial
statements in evaluating the Company’s performance. The table below
reconciles adjusted net income (loss) and adjusted earnings (loss)
per diluted common share to their most directly comparable GAAP
measure of net income (loss) attributable to Matador Resources
Company shareholders.
Three Months Ended September 30, 2017
June 30, 2017 September 30,
2016 (In thousands, except per share data)
Unaudited
Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share
Reconciliation to Net Income (Loss): Net income (loss)
attributable to Matador Resources Company shareholders $ 15,039 $
28,509 $ 11,931 Total income tax provision — —
(1,141 ) Income (loss) attributable to Matador
Resources Company shareholders before taxes 15,039 28,509 10,790
Less non-recurring and unrealized charges to income (loss) before
taxes: Unrealized loss (gain) on derivatives 12,372 (13,190 )
(3,203 ) Net gain on asset sales and inventory impairment (16 ) —
(1,073 ) Non-recurring expenses related to stock-based compensation
(1) — 1,515 — Adjusted
income (loss) attributable to Matador Resources Company
shareholders before taxes 27,395 16,834 6,514 Income tax provision
(benefit) (2) 9,588 5,892 1,139
Adjusted net income (loss) attributable to Matador Resources
Company shareholders (non-GAAP) $ 17,807 $ 10,942 $
5,375 Basic weighted average shares outstanding,
without participating securities 99,255 98,994
92,397
Dilutive effect of participating securities 1,110
1,217
987
Weighted average shares outstanding, including participating
securities - basic 100,365 100,211
93,384
Dilutive effect of options and restricted stock units 139
16 340 Weighted average common
shares outstanding - diluted 100,504 100,227
93,724
Adjusted earnings (loss) per share attributable to Matador
Resources Company shareholders (non-GAAP) Basic $ 0.18 $
0.11 $ 0.06 Diluted $ 0.18 $ 0.11 $
0.06
(1) Non-recurring, non-cash expense attributable to a change in the
vesting schedule applicable to equity awards granted to the
Company’s directors. (2) Estimated using federal statutory
tax rate of 35%, which differs from the actual effective tax rate
due to a full valuation allowance recognized against the deferred
tax benefit, and includes an income tax refund of approximately
$1.1 million in the third quarter of 2016.
PV-10
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 Company’s properties. Matador and others in the
industry use PV-10 as a measure to compare the relative size and
value of proved reserves held by companies and of the potential
return on investment related to the companies’ properties without
regard to the specific tax characteristics of such entities. PV-10
may be reconciled to the Standardized Measure of discounted future
net cash flows at such dates by adding the discounted future income
taxes associated with such reserves to the Standardized
Measure.
(in millions)
At At At September 30, 2017 December
31, 2016 September 30, 2016 Standardized Measure $
1,096.2 $ 575.0 $ 516.8 Discounted future income taxes 129.7
6.5 7.9 PV-10 $ 1,225.9 $ 581.5 $ 524.7
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171106006566/en/
Matador Resources CompanyMac Schmitz, 972-371-5225Capital
Markets Coordinatorinvestors@matadorresources.com
Matador Resources (NYSE:MTDR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Matador Resources (NYSE:MTDR)
Historical Stock Chart
From Apr 2023 to Apr 2024