(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01 | Regulation FD Disclosure. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit No. | Description of Exhibit | ||
99.1 | |||
99.2 | |||
104 | Cover Page Interactive Data File, formatted in Inline XBRL (included as Exhibit 101). |
MATADOR RESOURCES COMPANY | ||||||
Date: February 26, 2020 | By: | /s/ Craig N. Adams | ||||
Name: | Craig N. Adams | |||||
Title: | Executive Vice President |
• | Fourth quarter 2019 average daily oil equivalent production increased 6% sequentially to a record quarterly high for the Company of 73,700 barrels of oil equivalent (“BOE”) per day (57% oil), as compared to 69,600 BOE per day (57% oil) in the third quarter of 2019. Both average daily oil production and average daily natural gas production increased 6% sequentially to 42,100 barrels per day and 190.0 million cubic feet per day, respectively. |
• | This significant outperformance in production relative to the Company’s expectations was primarily attributable to (i) less than anticipated shut-in time of recently completed wells in the Rustler Breaks asset area for offset hydraulic fracturing operations by another operator, (ii) several wells being completed and turned to sales earlier than anticipated during the fourth quarter of 2019 and (iii) the continued outperformance of certain wells completed earlier in 2019 in the Rustler Breaks and Antelope Ridge asset areas and two non-operated Haynesville shale wells initially turned to sales in the third quarter of 2019. |
• | Fourth quarter 2019 net income (GAAP basis) was $24.0 million, or $0.21 per diluted common share, a 45% sequential decrease from $44.0 million in the third quarter of 2019, and an 82% year-over-year decrease from $136.7 million in the fourth quarter of 2018, due primarily to a $24.0 million non-cash, unrealized loss on |
• | Fourth quarter 2019 adjusted net income (a non-GAAP financial measure) was $46.1 million, or $0.39 per diluted common share, a 22% sequential increase from $37.9 million in the third quarter of 2019, and a 7% year-over-year increase from $43.0 million in the fourth quarter of 2018. |
• | Fourth quarter 2019 adjusted earnings before interest expense, income taxes, depletion, depreciation and amortization and certain other items (“Adjusted EBITDA,” a non-GAAP financial measure) were $181.0 million, a 13% sequential increase from $160.8 million in the third quarter of 2019, and a 26% year-over-year increase from $143.2 million in the fourth quarter of 2018. |
• | Third-party midstream services revenues were $17.7 million in the fourth quarter of 2019, a 16% sequential increase from $15.3 million in the third quarter of 2019, and a two-fold year-over-year increase from $8.6 million in the fourth quarter of 2018. |
• | San Mateo (as defined below) net income (GAAP basis) was $19.6 million in the fourth quarter of 2019, down slightly from $20.0 million in the third quarter of 2019, and a 30% year-over-year increase from $15.1 million in the fourth quarter of 2018. |
• | San Mateo Adjusted EBITDA (a non-GAAP financial measure) was $26.5 million in the fourth quarter of 2019, up slightly from $26.3 million in the third quarter of 2019, and a 39% year-over-year increase from $19.1 million in the fourth quarter of 2018. |
• | Matador’s drilling and completion costs for horizontal wells turned to sales in the fourth quarter of 2019 averaged $1,110 per lateral foot, 6% better than the Company’s expectations of $1,175 per lateral foot in the quarter, and 27% better than Matador’s 2018 drilling and completion costs of $1,528 per lateral foot. |
• | Lease operating expenses per BOE were $4.43 per BOE in the fourth quarter of 2019, a 5% sequential decrease from $4.64 per BOE in the third quarter of 2019, and a 3% decrease from $4.56 per BOE in the fourth quarter of 2018. |
Three Months Ended | |||||||||||||
December 31, | September 30, | December 31, | |||||||||||
2019 | 2019 | 2018 | |||||||||||
Net Production Volumes:(1) | |||||||||||||
Oil (MBbl)(2) | 3,872 | 3,659 | 3,080 | ||||||||||
Natural gas (Bcf)(3) | 17.5 | 16.5 | 12.2 | ||||||||||
Total oil equivalent (MBOE)(4) | 6,785 | 6,407 | 5,109 | ||||||||||
Average Daily Production Volumes:(1) | |||||||||||||
Oil (Bbl/d)(5) | 42,087 | 39,776 | 33,479 | ||||||||||
Natural gas (MMcf/d)(6) | 190.0 | 179.2 | 132.3 | ||||||||||
Total oil equivalent (BOE/d)(7) | 73,749 | 69,645 | 55,536 | ||||||||||
Average Sales Prices: | |||||||||||||
Oil, without realized derivatives (per Bbl) | $ | 56.36 | $ | 54.19 | $ | 49.09 | |||||||
Oil, with realized derivatives (per Bbl) | $ | 56.78 | $ | 54.97 | $ | 50.75 | |||||||
Natural gas, without realized derivatives (per Mcf)(8) | $ | 2.31 | $ | 1.88 | $ | 3.47 | |||||||
Natural gas, with realized derivatives (per Mcf) | $ | 2.31 | $ | 1.91 | $ | 3.35 | |||||||
Revenues (millions): | |||||||||||||
Oil and natural gas revenues | $ | 258.6 | $ | 229.4 | $ | 193.5 | |||||||
Third-party midstream services revenues | $ | 17.7 | $ | 15.3 | $ | 8.6 | |||||||
Realized gain (loss) on derivatives | $ | 1.7 | $ | 3.3 | $ | 3.7 | |||||||
Operating Expenses (per BOE): | |||||||||||||
Production taxes, transportation and processing | $ | 3.88 | $ | 3.86 | $ | 3.53 | |||||||
Lease operating | $ | 4.43 | $ | 4.64 | $ | 4.56 | |||||||
Plant and other midstream services operating | $ | 1.51 | $ | 1.38 | $ | 1.45 | |||||||
Depletion, depreciation and amortization | $ | 14.89 | $ | 14.44 | $ | 14.19 | |||||||
General and administrative(9) | $ | 3.17 | $ | 3.18 | $ | 2.66 | |||||||
Total(10) | $ | 27.88 | $ | 27.50 | $ | 26.39 | |||||||
Other (millions): | |||||||||||||
Net sales of purchased natural gas(11) | $ | 0.7 | $ | 3.3 | $ | 0.4 | |||||||
Lease bonus - mineral acreage | $ | — | $ | 1.7 | $ | 2.5 | |||||||
Total | $ | 0.7 | $ | 5.0 | $ | 2.9 | |||||||
Net income (millions)(12) | $ | 24.0 | $ | 44.0 | $ | 136.7 | |||||||
Earnings per common share (diluted)(12) | $ | 0.21 | $ | 0.38 | $ | 1.17 | |||||||
Adjusted net income (millions)(12)(13) | $ | 46.1 | $ | 37.9 | $ | 43.0 | |||||||
Adjusted earnings per common share (diluted)(12)(14) | $ | 0.39 | $ | 0.32 | $ | 0.37 | |||||||
Adjusted EBITDA (millions)(12)(15) | $ | 181.0 | $ | 160.8 | $ | 143.2 | |||||||
San Mateo net income (millions) | $ | 19.6 | $ | 20.0 | $ | 15.1 | |||||||
San Mateo Adjusted EBITDA (millions)(13) | $ | 26.5 | $ | 26.3 | $ | 19.1 |
• | Full year 2019 average daily oil equivalent production increased 27% year-over-year to a record annual high for the Company of 66,200 BOE per day (58% oil), as compared to 52,100 BOE per day (59% oil) for full year 2018. Full year 2019 average daily oil equivalent production was 8% above the midpoint of the Company’s original production guidance established in February 2019 and 2% above the midpoint of its most recent guidance established in October 2019. |
• | Full year 2019 average daily oil production increased 26% year-over-year to 38,300 barrels per day, and full year 2019 average daily natural gas production increased 29% year-over-year to 167.4 million cubic feet per day, both record annual highs for the Company, as compared to 30,500 barrels per day and 129.6 million cubic feet per day, respectively, for full year 2018. |
• | For the year ended December 31, 2019, Matador reported net income for the third consecutive year. Full year 2019 net income (GAAP basis) was $87.8 million, or $0.75 per diluted common share, a year-over-year decrease of 68% from $274.2 million, or $2.41 per diluted common share, for full year 2018. Despite the significant increases in oil and natural gas production in 2019, the decline in full year 2019 net income (GAAP basis) was primarily attributable to (i) a 5% decline in the weighted average oil price and a 38% decline in the weighted average natural gas price realized in full year 2019, each as compared to full year 2018, and (ii) a $53.7 million non-cash, unrealized loss on derivatives in 2019, as compared to a non-cash, unrealized gain on derivatives of $65.1 million in 2018. |
• | Full year 2019 adjusted net income (a non-GAAP financial measure) was $140.6 million, or $1.20 per diluted common share, a year-over-year decrease of 24% from $184.0 million, or $1.62 per diluted common share, for full year 2018. The decrease in full year 2019 adjusted net income was also primarily attributable to the declines in weighted average oil and natural gas prices of 5% and 38%, respectively, realized in 2019, as noted in the preceding paragraph. |
• | Full year 2019 Adjusted EBITDA, a non-GAAP financial measure, was $610.8 million, a year-over-year increase of 10% from $553.2 million for full year 2018. Full year 2019 Adjusted EBITDA of $610.8 million was 14% above the midpoint of the Company’s original Adjusted EBITDA guidance established in February 2019 and 8% above the midpoint of its most recent guidance established in October 2019. |
• | Third-party midstream services revenues were $59.1 million for full year 2019, a record high for the Company and a 2.7-fold sequential increase from $21.9 million for full year 2018. |
• | San Mateo net income (GAAP basis) was $71.9 million for full year 2019, a record high for San Mateo and a 38% sequential increase from $52.2 million for full year 2018. |
• | San Mateo Adjusted EBITDA (a non-GAAP financial measure) was $96.3 million for full year 2019, a record high for San Mateo and a 55% sequential increase from $62.0 million for full year 2018. |
Year Ended | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||||
Net Production Volumes:(1) | |||||||||||||
Oil (MBbl)(2) | 13,984 | 11,141 | 7,851 | ||||||||||
Natural gas (Bcf)(3) | 61.1 | 47.3 | 38.2 | ||||||||||
Total oil equivalent (MBOE)(4) | 24,164 | 19,026 | 14,212 | ||||||||||
Average Daily Production Volumes:(1) | |||||||||||||
Oil (Bbl/d)(5) | 38,312 | 30,524 | 21,510 | ||||||||||
Natural gas (MMcf/d)(6) | 167.4 | 129.6 | 104.6 | ||||||||||
Total oil equivalent (BOE/d)(7) | 66,203 | 52,128 | 38,936 | ||||||||||
Average Sales Prices: | |||||||||||||
Oil, without realized derivatives (per Bbl) | $ | 54.34 | $ | 57.04 | $ | 49.28 | |||||||
Oil, with realized derivatives (per Bbl) | $ | 54.98 | $ | 57.38 | $ | 48.81 | |||||||
Natural gas, without realized derivatives (per Mcf)(8) | $ | 2.17 | $ | 3.49 | $ | 3.72 | |||||||
Natural gas, with realized derivatives (per Mcf) | $ | 2.18 | $ | 3.46 | $ | 3.70 | |||||||
Revenues (millions): | |||||||||||||
Oil and natural gas revenues | $ | 892.3 | $ | 800.7 | $ | 528.7 | |||||||
Third-party midstream services revenues | $ | 59.1 | $ | 21.9 | $ | 10.2 | |||||||
Realized gain (loss) on derivatives | $ | 9.5 | $ | 2.3 | $ | (4.3 | ) | ||||||
Operating Expenses (per BOE): | |||||||||||||
Production taxes, transportation and processing | $ | 3.82 | $ | 4.00 | $ | 4.10 | |||||||
Lease operating | $ | 4.85 | $ | 4.89 | $ | 4.74 | |||||||
Plant and other midstream services operating | $ | 1.52 | $ | 1.29 | $ | 0.92 | |||||||
Depletion, depreciation and amortization | $ | 14.51 | $ | 13.94 | $ | 12.49 | |||||||
General and administrative(9) | $ | 3.31 | $ | 3.64 | $ | 4.65 | |||||||
Total(10) | $ | 28.01 | $ | 27.76 | $ | 26.90 | |||||||
Other (millions): | |||||||||||||
Net sales of purchased natural gas(11) | $ | 5.4 | $ | 0.4 | $ | — | |||||||
Lease bonus - mineral acreage | $ | 1.7 | $ | 2.5 | $ | — | |||||||
Total | $ | 7.1 | $ | 2.9 | $ | — | |||||||
Net income (millions)(12) | $ | 87.8 | $ | 274.2 | $ | 125.9 | |||||||
Earnings per common share (diluted)(12) | $ | 0.75 | $ | 2.41 | $ | 1.23 | |||||||
Adjusted net income (millions)(12)(13) | $ | 140.6 | $ | 184.0 | $ | 73.4 | |||||||
Adjusted earnings per common share (diluted)(12)(14) | $ | 1.20 | $ | 1.62 | $ | 0.72 | |||||||
Adjusted EBITDA (millions)(12)(15) | $ | 610.8 | $ | 553.2 | $ | 336.1 | |||||||
San Mateo net income (millions) | $ | 71.9 | $ | 52.2 | $ | 26.4 | |||||||
San Mateo Adjusted EBITDA (millions)(15) | $ | 96.3 | $ | 62.0 | $ | 30.9 |
Q4 2019 Wells Turned to Sales | Full Year 2019 Wells Turned to Sales | |||||
Gross | Net | Gross | Net | |||
Operated | 16 | 12.4 | Operated | 84 | 69.3 | |
Non-Operated | 33 | 2.4 | Non-Operated | 88 | 6.0 | |
Total | 49 | 14.8 | Total | 172 | 75.3 |
Operated | Non-Operated | Total | Gross Operated | ||||||
Asset/Operating Area | Gross | Net | Gross | Net | Gross | Net | Well Completion Intervals | ||
Rustler Breaks | 6 | 3.4 | 14 | 1.9 | 20 | 5.3 | 1-1BS, 3-WC A, 2-WC B | ||
Arrowhead | 2 | 1.7 | - | - | 2 | 1.7 | 2-2BS | ||
Ranger | - | - | - | - | - | - | No operated wells turned to sales in Q4 2019 | ||
Wolf/Jackson Trust | 2 | 1.6 | 1 | 0.0 | 3 | 1.6 | 1-2BS, 1-WC A-XY | ||
Twin Lakes | 1 | 1.0 | - | - | 1 | 1.0 | 1-WC B-Carb | ||
Antelope Ridge | 5 | 4.7 | 13 | 0.5 | 18 | 5.2 | 2-1BS, 3-WC A | ||
Delaware Basin | 16 | 12.4 | 28 | 2.4 | 44 | 14.8 | |||
South Texas | - | - | - | - | - | - | No operated wells turned to sales in Q4 2019 | ||
Haynesville Shale | - | - | 5 | 0.0 | 5 | 0.0 | |||
Total | 16 | 12.4 | 33 | 2.4 | 49 | 14.8 |
Completion | 24-hr IP | BOE/d / | Oil | ||
Asset Area/Well Name | Interval | (BOE/d) | 1,000 ft.(1) | (%) | Comments |
Antelope Ridge, Lea County, NM | |||||
Brad Lummis Com #121H | Second Bone Spring | 2,374 | 497 | 83% | Excellent Second Bone Spring wells in the Antelope Ridge asset area. |
Brad Lummis Com #122H | Second Bone Spring | 1,850 | 392 | 80% | |
Biggers Fed Com #203H | Wolfcamp A-Lower | 2,707 | 580 | 76% | Biggers wells drilled and completed simultaneously. Strong results in the Wolfcamp A-XY and Wolfcamp A-Lower in the southeast portion of the Antelope Ridge asset area. |
Biggers Fed Com #214H | Wolfcamp A-XY | 2,799 | 607 | 75% | |
Biggers Fed Com #217H | Wolfcamp A-XY | 3,151 | 683 | 82% | |
Rustler Breaks, Eddy County, NM | |||||
Paul 25-24S-28E RB #111H | First Bone Spring | 1,793 | 371 | 81% | Second strong test demonstrating prospectivity of the First Bone Spring in Rustler Breaks asset area. |
Dr. Lana White Com #203H | Wolfcamp A-XY | 1,447 | 317 | 74% | Dr. Lana White wells drilled and completed simultaneously. Strong results in the Wolfcamp A-XY, Wolfcamp A-Lower and Wolfcamp B-Blair in the southeast portion of the Rustler Breaks asset area. |
Dr. Lana White Com #217H | Wolfcamp A-Lower | 2,202 | 481 | 73% | |
Dr. Lana White Com #223H | Wolfcamp B-Blair | 2,732 | 631 | 41% | |
Noel Hensley Fed Com #202H | Wolfcamp A-XY | 2,121 | 461 | 69% | Strong Wolfcamp A-XY result in the southwest portion of the Rustler Breaks asset area. |
Noel Hensley Fed Com #222H | Wolfcamp B-Blair | 3,359 | 749 | 33% | Excellent Wolfcamp B-Blair result in the southwest portion of the Rustler Breaks asset area. |
At December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Estimated proved reserves:(1)(2) | ||||||||||||
Oil (MBbl)(3) | 147,991 | 123,401 | 86,743 | |||||||||
Natural Gas (Bcf)(4) | 627.2 | 551.5 | 396.2 | |||||||||
Total (MBOE)(5) | 252,531 | 215,313 | 152,771 | |||||||||
Estimated proved developed reserves: | ||||||||||||
Oil (MBbl)(3) | 59,667 | 53,223 | 36,966 | |||||||||
Natural Gas (Bcf)(4) | 276.3 | 246.2 | 190.1 | |||||||||
Total (MBOE)(5) | 105,710 | 94,261 | 68,651 | |||||||||
Percent developed | 41.9 | % | 43.8 | % | 44.9 | % | ||||||
Estimated proved undeveloped reserves: | ||||||||||||
Oil (MBbl)(3) | 88,324 | 70,178 | 49,777 | |||||||||
Natural Gas (Bcf)(4) | 351.0 | 305.2 | 206.1 | |||||||||
Total (MBOE)(5) | 146,821 | 121,052 | 84,120 | |||||||||
Standardized Measure (in millions)(6) | $ | 2,034.0 | $ | 2,250.6 | $ | 1,258.6 | ||||||
PV-10 (in millions)(7) | $ | 2,248.2 | $ | 2,579.3 | $ | 1,333.4 | ||||||
Commodity prices:(2) | ||||||||||||
Oil (per Bbl) | $ | 52.19 | $ | 62.04 | $ | 47.79 | ||||||
Natural Gas (per MMBtu) | $ | 2.58 | $ | 3.10 | $ | 2.98 | ||||||
• | Matador’s total proved oil and natural gas reserves increased 17% year-over-year from 215.3 million BOE (57% oil, 44% proved developed, 89% Delaware Basin), consisting of 123.4 million barrels of oil and 551.5 billion cubic feet of natural gas, at December 31, 2018 to 252.5 million BOE (59% oil, 42% proved developed, 92% Delaware Basin), consisting of 148.0 million barrels of oil and 627.2 billion cubic feet of natural gas, at December 31, 2019. Oil, natural gas and total proved reserves at December 31, 2019 were each at all-time highs for Matador. Estimated total proved oil and natural gas reserves increased 65%, or 100 million BOE, over the last two years from 152.8 million BOE (57% oil, 45% proved developed, 84% Delaware Basin) at December 31, 2017. |
• | At December 31, 2019, the Standardized Measure and the PV-10, a non-GAAP financial measure, of Matador’s total proved oil and natural gas reserves decreased 10% and 13% to $2.03 billion and $2.25 billion from $2.25 billion and $2.58 billion, respectively, at December 31, 2018. The decrease in both Standardized Measure and PV-10 of Matador’s proved oil and natural gas reserves at December 31, 2019 resulted primarily from the decrease in both oil and natural gas prices used to estimate proved reserves at December 31, 2019, as compared to December 31, 2018. At December 31, 2019, the oil and natural gas prices used to estimate total proved reserves were $52.19 per barrel and $2.58 per MMBtu, respectively, as compared to $62.04 per barrel and $3.10 per MMBtu, respectively, at December 31, 2018. |
• | Accounting for Matador’s 2019 oil equivalent production of 24.2 million BOE and certain asset divestitures during 2019, Matador’s total proved oil and natural gas reserves increased 63.7 million BOE, or approximately 30% year-over-year. The overall increase in Matador’s proved reserves of 63.7 million BOE during 2019 included aggregate upward revisions to prior estimates of 5.1 million BOE, resulting primarily from better-than-expected well performance associated with a number of wells throughout the Delaware Basin, which offset downward revisions associated with the lower commodity prices used to evaluate proved reserves at December 31, 2019. |
• | Matador’s Delaware Basin total proved reserves increased 22% year-over-year from 191.5 million BOE (60% oil), consisting of 114.8 million barrels of oil and 460.0 billion cubic feet of natural gas, at December 31, 2018 to 232.8 million BOE (60% oil), consisting of 139.6 million barrels of oil and 559.2 billion cubic feet of natural gas, at December 31, 2019. At December 31, 2019, the Delaware Basin comprised 92% of the Company’s total proved oil and natural gas reserves, including 94% of its proved oil reserves and 89% of its proved natural gas reserves. |
• | Gathered an average of 262 million cubic feet of natural gas per day in the Wolf and Rustler Breaks asset areas and the Greater Stebbins Area, a 21% sequential increase, as compared to 216 million cubic feet per day in the third quarter of 2019, and a 76% year-over-year increase, as compared to 149 million cubic feet per day in the fourth quarter of 2018. |
• | Processed an average of 232 million cubic feet of natural gas per day at the Black River Processing Plant, a 23% sequential increase, as compared to 188 million cubic feet per day in the third quarter of 2019, and a 107% year-over-year increase, as compared to 112 million cubic feet per day in the fourth quarter of 2018. At certain times in the fourth quarter of 2019, as a result of increased throughput from existing natural gas processing customers, San Mateo was operating the Black River Processing Plant at greater than 95% of the current designed inlet capacity of 260 million cubic feet per day. |
• | Gathered an average of 199,000 barrels of salt water per day, primarily in the Wolf and Rustler Breaks asset areas, a 1% sequential increase, as compared to 197,000 barrels per day in the third quarter of 2019, and a 32% year-over-year increase, as compared to 151,000 barrels per day in the fourth quarter of 2018. |
• | Disposed of an average of 190,000 barrels of salt water per day, primarily in the Wolf and Rustler Breaks asset areas, which was flat as compared to the third quarter of 2019, and a 24% year-over-year increase, as compared to 153,000 barrels per day in the fourth quarter of 2018. |
• | Gathered and transported an average of 27,000 barrels of oil per day in the Wolf and Rustler Breaks asset areas, a 17% sequential increase, as compared to 23,000 barrels per day in the third quarter of 2019, and a 170% increase, as compared to 10,000 barrels per day in the fourth quarter of 2018. |
• | Net income (GAAP basis) of $19.6 million, a slight decrease sequentially from $20.0 million in the third quarter of 2019, and a 31% year-over-year increase from $15.1 million in the fourth quarter of 2018. |
• | Adjusted EBITDA (a non-GAAP financial measure) of $26.5 million, a slight increase sequentially from $26.3 million in the third quarter of 2019, and a 38% year-over-year increase from $19.1 million in the fourth quarter of 2018. |
Full Year 2020 | Full Year 2021 | Full Year 2022 | ||||
Oil Collars - West Texas Intermediate | ||||||
Costless Collars - Volumes Hedged (MBbl) | 7,200,000 | - | - | |||
Weighted-average Price Ceiling ($/Bbl) | $66.62 | - | - | |||
Weighted-average Price Floor ($/Bbl) | $47.69 | - | - | |||
Oil Basis Swaps - Midland-Cushing Differential | ||||||
Oil Basis Swaps - Volumes Hedged (MBbl) | 9,774,000 | 8,400,000 | 5,520,000 | |||
Weighted-average Price ($/Bbl) | +$0.61 | +$0.87 | +$0.95 |
• | Matador has made significant progress in reducing emissions since 2017, including reducing its greenhouse gas emissions by 6%, emission intensity rate by 33% and methane intensity rate by 33%; |
• | In 2019, Matador more than doubled the number of its production facilities operating on electrical grid power, lowering emissions by removing onsite generators; |
• | Matador expects to increase its water recycling volumes by 75% year-over-year in 2020; |
• | As of December 2019, 55% of Matador’s oil production and 78% of its water production in the Delaware Basin were transported via pipeline, leading to approximately 460,000 truckloads of produced fluids being taken off the roads each year, with expectations for further improvement in 2020; |
• | Over 1.4 million Matador employee man-hours have been logged with zero lost-time accidents since 2017, and no employee injuries have been recorded since 2014; and |
• | Matador’s corporate governance structure includes an engaged and diverse Board of Directors with a majority voting standard, robust director and officer stock ownership guidelines, annual “say on pay” voting and a formal shareholder nominating committee to review and recommend director nominees, among other attributes. |
(In thousands, except par value and share data) | December 31, | ||||||||
2019 | 2018 | ||||||||
ASSETS | |||||||||
Current assets | |||||||||
Cash | $ | 40,024 | $ | 64,545 | |||||
Restricted cash | 25,104 | 19,439 | |||||||
Accounts receivable | |||||||||
Oil and natural gas revenues | 95,228 | 68,161 | |||||||
Joint interest billings | 67,546 | 61,831 | |||||||
Other | 26,639 | 16,159 | |||||||
Derivative instruments | — | 49,929 | |||||||
Lease and well equipment inventory | 10,744 | 17,564 | |||||||
Prepaid expenses and other current assets | 13,207 | 8,057 | |||||||
Total current assets | 278,492 | 305,685 | |||||||
Property and equipment, at cost | |||||||||
Oil and natural gas properties, full-cost method | |||||||||
Evaluated | 4,557,265 | 3,780,236 | |||||||
Unproved and unevaluated | 1,126,992 | 1,199,511 | |||||||
Midstream properties | 643,903 | 428,025 | |||||||
Other property and equipment | 27,021 | 22,041 | |||||||
Less accumulated depletion, depreciation and amortization | (2,655,586 | ) | (2,306,949 | ) | |||||
Net property and equipment | 3,699,595 | 3,122,864 | |||||||
Other assets | |||||||||
Deferred income taxes | — | 20,457 | |||||||
Other long-term assets | 91,589 | 6,512 | |||||||
Total other assets | 91,589 | 26,969 | |||||||
Total assets | $ | 4,069,676 | $ | 3,455,518 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||
Current liabilities | |||||||||
Accounts payable | $ | 25,230 | $ | 66,970 | |||||
Accrued liabilities | 200,695 | 170,855 | |||||||
Royalties payable | 85,193 | 64,776 | |||||||
Amounts due to affiliates | 19,606 | 13,052 | |||||||
Derivative instruments | 1,897 | — | |||||||
Advances from joint interest owners | 14,837 | 10,968 | |||||||
Amounts due to joint ventures | 486 | 2,373 | |||||||
Other current liabilities | 51,828 | 1,028 | |||||||
Total current liabilities | 399,772 | 330,022 | |||||||
Long-term liabilities | |||||||||
Borrowings under Credit Agreement | 255,000 | 40,000 | |||||||
Borrowings under San Mateo Credit Facility | 288,000 | 220,000 | |||||||
Senior unsecured notes payable | 1,039,416 | 1,037,837 | |||||||
Asset retirement obligations | 35,592 | 29,736 | |||||||
Derivative instruments | 1,984 | 83 | |||||||
Deferred income taxes | 37,329 | 13,221 | |||||||
Other long-term liabilities | 43,131 | 4,962 | |||||||
Total long-term liabilities | 1,700,452 | 1,345,839 | |||||||
Shareholders’ equity | |||||||||
Common stock — $0.01 par value, 160,000,000 shares authorized; 116,644,246 and 116,374,503 shares issued; and 116,642,899 and 116,353,590 shares outstanding, respectively | 1,166 | 1,164 | |||||||
Additional paid-in capital | 1,981,014 | 1,924,408 | |||||||
Accumulated deficit | (148,500 | ) | (236,277 | ) | |||||
Treasury stock, at cost, 1,347 and 20,913 shares, respectively | (26 | ) | (415 | ) | |||||
Total Matador Resources Company shareholders’ equity | 1,833,654 | 1,688,880 | |||||||
Non-controlling interest in subsidiaries | 135,798 | 90,777 | |||||||
Total shareholders’ equity | 1,969,452 | 1,779,657 | |||||||
Total liabilities and shareholders’ equity | $ | 4,069,676 | $ | 3,455,518 |
(In thousands, except per share data) | Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | ||||||||||
Revenues | ||||||||||||
Oil and natural gas revenues | $ | 892,325 | $ | 800,700 | $ | 528,684 | ||||||
Third-party midstream services revenues | 59,110 | 21,920 | 10,198 | |||||||||
Sales of purchased natural gas | 74,769 | 7,071 | — | |||||||||
Lease bonus - mineral acreage | 1,711 | 2,489 | — | |||||||||
Realized gain (loss) on derivatives | 9,482 | 2,334 | (4,321 | ) | ||||||||
Unrealized (loss) gain on derivatives | (53,727 | ) | 65,085 | 9,715 | ||||||||
Total revenues | 983,670 | 899,599 | 544,276 | |||||||||
Expenses | ||||||||||||
Production taxes, transportation and processing | 92,273 | 76,138 | 58,275 | |||||||||
Lease operating | 117,305 | 92,966 | 67,313 | |||||||||
Plant and other midstream services operating | 36,798 | 24,609 | 13,039 | |||||||||
Purchased natural gas | 69,398 | 6,635 | — | |||||||||
Depletion, depreciation and amortization | 350,540 | 265,142 | 177,502 | |||||||||
Accretion of asset retirement obligations | 1,822 | 1,530 | 1,290 | |||||||||
General and administrative | 80,054 | 69,308 | 66,016 | |||||||||
Total expenses | 748,190 | 536,328 | 383,435 | |||||||||
Operating income | 235,480 | 363,271 | 160,841 | |||||||||
Other income (expense) | ||||||||||||
Net (loss) gain on asset sales and inventory impairment | (967 | ) | (196 | ) | 23 | |||||||
Interest expense | (73,873 | ) | (41,327 | ) | (34,565 | ) | ||||||
Prepayment premium on extinguishment of debt | — | (31,226 | ) | — | ||||||||
Other (expense) income | (2,126 | ) | 1,551 | 3,551 | ||||||||
Total other expense | (76,966 | ) | (71,198 | ) | (30,991 | ) | ||||||
Income before income taxes | 158,514 | 292,073 | 129,850 | |||||||||
Income tax provision (benefit) | ||||||||||||
Current | — | (455 | ) | (8,157 | ) | |||||||
Deferred | 35,532 | (7,236 | ) | — | ||||||||
Total income tax provision (benefit) | 35,532 | (7,691 | ) | (8,157 | ) | |||||||
Net income | 122,982 | 299,764 | 138,007 | |||||||||
Net income attributable to non-controlling interest in subsidiaries | (35,205 | ) | (25,557 | ) | (12,140 | ) | ||||||
Net income attributable to Matador Resources Company shareholders | $ | 87,777 | $ | 274,207 | $ | 125,867 | ||||||
Earnings per common share | ||||||||||||
Basic | $ | 0.75 | $ | 2.41 | $ | 1.23 | ||||||
Diluted | $ | 0.75 | $ | 2.41 | $ | 1.23 | ||||||
Weighted average common shares outstanding | ||||||||||||
Basic | 116,555 | 113,580 | 102,029 | |||||||||
Diluted | 117,063 | 113,691 | 102,543 | |||||||||
(In thousands) | Year Ended December 31, | |||||||||||||
2019 | 2018 | 2017 | ||||||||||||
Operating activities | ||||||||||||||
Net income | $ | 122,982 | $ | 299,764 | $ | 138,007 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||
Unrealized loss (gain) on derivatives | 53,727 | (65,085 | ) | (9,715 | ) | |||||||||
Depletion, depreciation and amortization | 350,540 | 265,142 | 177,502 | |||||||||||
Accretion of asset retirement obligations | 1,822 | 1,530 | 1,290 | |||||||||||
Stock-based compensation expense | 18,505 | 17,200 | 16,654 | |||||||||||
Prepayment premium on extinguishment of debt | — | 31,226 | — | |||||||||||
Deferred income tax provision (benefit) | 35,532 | (7,236 | ) | — | ||||||||||
Amortization of debt issuance cost | 2,484 | 1,357 | 468 | |||||||||||
Net loss (gain) on asset sales and inventory impairment | 967 | 196 | (23 | ) | ||||||||||
Changes in operating assets and liabilities | ||||||||||||||
Accounts receivable | (43,261 | ) | (4,934 | ) | (82,549 | ) | ||||||||
Lease and well equipment inventory | 4,777 | (12,176 | ) | (3,623 | ) | |||||||||
Prepaid expenses and other current assets | (4,844 | ) | (1,770 | ) | (2,960 | ) | ||||||||
Other long-term assets | 678 | 3,418 | (6,425 | ) | ||||||||||
Accounts payable, accrued liabilities and other current liabilities | (19,004 | ) | 68,647 | 33,559 | ||||||||||
Royalties payable | 20,417 | 3,418 | 37,370 | |||||||||||
Advances from joint interest owners | 3,869 | 8,179 | 1,089 | |||||||||||
Other long-term liabilities | 2,851 | (353 | ) | (1,519 | ) | |||||||||
Net cash provided by operating activities | 552,042 | 608,523 | 299,125 | |||||||||||
Investing activities | ||||||||||||||
Oil and natural gas properties capital expenditures | (730,161 | ) | (1,357,802 | ) | (699,445 | ) | ||||||||
Midstream capital expenditures | (192,035 | ) | (163,222 | ) | (115,128 | ) | ||||||||
Expenditures for other property and equipment | (3,701 | ) | (2,562 | ) | (5,688 | ) | ||||||||
Proceeds from sale of assets | 21,921 | 8,333 | 977 | |||||||||||
Net cash used in investing activities | (903,976 | ) | (1,515,253 | ) | (819,284 | ) | ||||||||
Financing activities | ||||||||||||||
Repayments of borrowings | (35,000 | ) | (370,000 | ) | — | |||||||||
Borrowings under Credit Agreement | 250,000 | 410,000 | — | |||||||||||
Borrowings under San Mateo Credit Facility | 68,000 | 220,000 | — | |||||||||||
Cost to enter into or amend credit facilities | (1,443 | ) | (3,077 | ) | — | |||||||||
Proceeds from issuance of senior unsecured notes | — | 1,051,500 | — | |||||||||||
Cost to issue senior unsecured notes | — | (14,098 | ) | — | ||||||||||
Purchase of senior unsecured notes | — | (605,780 | ) | — | ||||||||||
Proceeds from issuance of common stock | — | 226,612 | 208,720 | |||||||||||
Cost to issue equity | — | (204 | ) | (280 | ) | |||||||||
Proceeds from stock options exercised | 3,300 | 815 | 2,920 | |||||||||||
Contributions related to formation of San Mateo I | 14,700 | 14,700 | 171,500 | |||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 77,330 | 85,750 | 44,100 | |||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (39,200 | ) | (121,520 | ) | (10,045 | ) | ||||||||
Taxes paid related to net share settlement of stock-based compensation | (3,691 | ) | (6,466 | ) | (5,763 | ) | ||||||||
Purchase of non-controlling interest of less-than-wholly-owned subsidiary | — | — | (2,653 | ) | ||||||||||
Cash paid under financing lease obligations | (918 | ) | — | — | ||||||||||
Net cash provided by financing activities | 333,078 | 888,232 | 408,499 | |||||||||||
Decrease in cash and restricted cash | (18,856 | ) | (18,498 | ) | (111,660 | ) | ||||||||
Cash and restricted cash at beginning of year | 83,984 | 102,482 | 214,142 | |||||||||||
Cash and restricted cash at end of year | $ | 65,128 | $ | 83,984 | $ | 102,482 | ||||||||
Three Months Ended | Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | December 31, 2019 | September 30, 2019 | December 31, 2018 | 2019 | 2018 | 2017 | ||||||||||||||||||
Unaudited Adjusted EBITDA Reconciliation to Net Income: | ||||||||||||||||||||||||
Net income attributable to Matador Resources Company Shareholders | $ | 24,019 | $ | 43,953 | $ | 136,713 | $ | 87,777 | $ | 274,207 | $ | 125,867 | ||||||||||||
Net income attributable to non-controlling interest in subsidiaries | 9,623 | 9,800 | 7,375 | 35,205 | 25,557 | 12,140 | ||||||||||||||||||
Net income | 33,642 | 53,753 | 144,088 | 122,982 | 299,764 | 138,007 | ||||||||||||||||||
Interest expense | 19,701 | 18,175 | 14,492 | 73,873 | 41,327 | 34,565 | ||||||||||||||||||
Total income tax provision (benefit) | 10,197 | 13,490 | (7,691 | ) | 35,532 | (7,691 | ) | (8,157 | ) | |||||||||||||||
Depletion, depreciation and amortization | 101,043 | 92,498 | 72,478 | 350,540 | 265,142 | 177,502 | ||||||||||||||||||
Accretion of asset retirement obligations | 468 | 520 | 404 | 1,822 | 1,530 | 1,290 | ||||||||||||||||||
Unrealized loss (gain) on derivatives | 24,012 | (9,847 | ) | (74,577 | ) | 53,727 | (65,085 | ) | (9,715 | ) | ||||||||||||||
Stock-based compensation expense | 4,765 | 4,664 | 3,413 | 18,505 | 17,200 | 16,654 | ||||||||||||||||||
Net loss (gain) on asset sales and inventory impairment | 160 | 439 | — | 967 | 196 | (23 | ) | |||||||||||||||||
Prepayment premium on extinguishment of debt | — | — | — | — | 31,226 | — | ||||||||||||||||||
Consolidated Adjusted EBITDA | 193,988 | 173,692 | 152,607 | 657,948 | 583,609 | 350,123 | ||||||||||||||||||
Adjusted EBITDA attributable to non-controlling interest subsidiaries | (12,964 | ) | (12,903 | ) | (9,368 | ) | (47,192 | ) | (30,386 | ) | (14,060 | ) | ||||||||||||
Adjusted EBITDA attributable to Matador Resources Company shareholders | $ | 181,024 | $ | 160,789 | $ | 143,239 | $ | 610,756 | $ | 553,223 | $ | 336,063 | ||||||||||||
Three Months Ended | Year Ended December 31, | |||||||||||||||||||||||
(In thousands) | December 31, 2019 | September 30, 2019 | December 31, 2018 | 2019 | 2018 | 2017 | ||||||||||||||||||
Unaudited Adjusted EBITDA Reconciliation to Net Cash Provided by Operating Activities: | ||||||||||||||||||||||||
Net cash provided by operating activities | $ | 198,915 | $ | 158,630 | $ | 189,205 | $ | 552,042 | $ | 608,523 | $ | 299,125 | ||||||||||||
Net change in operating assets and liabilities | (23,958 | ) | (2,488 | ) | (50,129 | ) | 34,517 | (64,429 | ) | 25,058 | ||||||||||||||
Interest expense, net of non-cash portion | 19,031 | 17,550 | 13,986 | 71,389 | 39,970 | 34,097 | ||||||||||||||||||
Current income tax provision (benefit) | — | — | (455 | ) | — | (455 | ) | (8,157 | ) | |||||||||||||||
Adjusted EBITDA attributable to non-controlling interest subsidiaries | (12,964 | ) | (12,903 | ) | (9,368 | ) | (47,192 | ) | (30,386 | ) | (14,060 | ) | ||||||||||||
Adjusted EBITDA attributable to Matador Resources Company shareholders | $ | 181,024 | $ | 160,789 | $ | 143,239 | $ | 610,756 | $ | 553,223 | $ | 336,063 | ||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||
(In thousands) | December 31, 2019 | September 30, 2019 | December 31, 2018 | 2019 | 2018 | 2017 | |||||||||||||||||
Unaudited Adjusted EBITDA Reconciliation to Net Income: | |||||||||||||||||||||||
Net income | $ | 19,642 | $ | 20,000 | $ | 15,051 | $ | 71,850 | $ | 52,158 | $ | 26,391 | |||||||||||
Total income tax provision | — | — | — | — | — | 269 | |||||||||||||||||
Depletion, depreciation and amortization | 4,249 | 3,848 | 3,713 | 15,068 | 9,459 | 4,231 | |||||||||||||||||
Interest expense | 2,502 | 2,458 | 333 | 9,282 | 333 | — | |||||||||||||||||
Accretion of asset retirement obligations | 58 | 27 | 20 | 110 | 61 | 30 | |||||||||||||||||
Adjusted EBITDA | $ | 26,451 | $ | 26,333 | $ | 19,117 | $ | 96,310 | $ | 62,011 | $ | 30,921 | |||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||||
(In thousands) | December 31, 2019 | September 30, 2019 | December 31, 2018 | 2019 | 2018 | 2017 | |||||||||||||||||
Unaudited Adjusted EBITDA Reconciliation to Net Cash Provided by Operating Activities: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 23,834 | $ | 31,550 | $ | 23,070 | $ | 106,650 | $ | 35,702 | $ | 21,308 | |||||||||||
Net change in operating assets and liabilities | 199 | (7,468 | ) | (4,273 | ) | (19,137 | ) | 25,989 | 9,344 | ||||||||||||||
Interest expense, net of non-cash portion | 2,418 | 2,251 | 320 | 8,797 | 320 | — | |||||||||||||||||
Current income tax provision | — | — | — | — | — | 269 | |||||||||||||||||
Adjusted EBITDA | $ | 26,451 | $ | 26,333 | $ | 19,117 | $ | 96,310 | $ | 62,011 | $ | 30,921 | |||||||||||
Three Months Ended | Year Ended December 31, | |||||||||||||||||||||||
December 31, 2019 | September 30, 2019 | December 31, 2018 | 2019 | 2018 | 2017 | |||||||||||||||||||
(In thousands, except per share data) | ||||||||||||||||||||||||
Unaudited Adjusted Net Income and Adjusted Earnings Per Common Share Reconciliation to Net Income: | ||||||||||||||||||||||||
Net income attributable to Matador Resources Company shareholders | $ | 24,019 | $ | 43,953 | $ | 136,713 | $ | 87,777 | $ | 274,207 | $ | 125,867 | ||||||||||||
Total income tax provision (benefit) | 10,197 | 13,490 | (7,691 | ) | 35,532 | (7,691 | ) | (8,157 | ) | |||||||||||||||
Income attributable to Matador Resources shareholders before taxes (1) | 34,216 | 57,443 | 129,022 | 123,309 | 266,516 | 117,710 | ||||||||||||||||||
Less non-recurring and unrealized charges to income before taxes: | ||||||||||||||||||||||||
Unrealized loss (gain) on derivatives | 24,012 | (9,847 | ) | (74,577 | ) | 53,727 | (65,085 | ) | (9,715 | ) | ||||||||||||||
Net loss (gain) on asset sales and inventory impairment | 160 | 439 | — | 967 | 196 | (23 | ) | |||||||||||||||||
Non-recurring expenses related to stock-based compensation | — | — | — | — | — | 1,515 | ||||||||||||||||||
Non-recurring transaction costs associated with the formation of San Mateo | — | — | — | — | — | 3,458 | ||||||||||||||||||
Prepayment premium on extinguishment of debt | — | — | — | — | 31,226 | — | ||||||||||||||||||
Adjusted income attributable to Matador Resources shareholders before taxes | 58,388 | 48,035 | 54,445 | 178,003 | 232,853 | 112,945 | ||||||||||||||||||
Income tax expense(1) | 12,261 | 10,087 | 11,433 | 37,381 | 48,899 | 39,531 | ||||||||||||||||||
Adjusted net income attributable to Matador Resources Company shareholders (non-GAAP) | $ | 46,127 | $ | 37,948 | $ | 43,012 | $ | 140,622 | $ | 183,954 | $ | 73,414 | ||||||||||||
Weighted average shares outstanding, including participating securities - basic | 116,641 | 116,643 | 116,341 | 116,555 | 113,580 | 102,029 | ||||||||||||||||||
Dilutive effect of options and restricted stock units | 342 | 333 | 68 | 508 | 111 | 514 | ||||||||||||||||||
Weighted average common shares outstanding - diluted | 116,983 | 116,976 | 116,409 | 117,063 | 113,691 | 102,543 | ||||||||||||||||||
Adjusted earnings per share attributable to Matador Resources shareholders (non-GAAP) | ||||||||||||||||||||||||
Basic | $ | 0.40 | $ | 0.33 | $ | 0.37 | $ | 1.21 | $ | 1.62 | $ | 0.72 | ||||||||||||
Diluted | $ | 0.39 | $ | 0.32 | $ | 0.37 | $ | 1.20 | $ | 1.62 | $ | 0.72 | ||||||||||||
(1) | Estimated using federal statutory tax rate in effect for the period. |
(in millions) | At December 31, 2019 | At December 31, 2018 | At December 31, 2017 | |||||||||
Standardized Measure | $ | 2,034.0 | $ | 2,250.6 | $ | 1,258.6 | ||||||
Discounted future income taxes | 214.2 | 328.7 | 74.8 | |||||||||
PV-10 | $ | 2,248.2 | $ | 2,579.3 | $ | 1,333.4 | ||||||
Guidance Metric | Actual 2019 Results | 2020 Guidance | % YoY Change(1) |
Total Oil Production | 14.0 million Bbl | 16.0 to 16.5 million Bbl | +16% |
Total Natural Gas Production | 61.1 Bcf | 66.0 to 71.0 Bcf | +12% |
Total Oil Equivalent Production | 24.2 million BOE | 27.0 to 28.3 million BOE | +14% |
D/C/E CapEx(2) | $671 million | $690 to $750 million | +7% |
San Mateo Midstream CapEx(3)(4) | $77 million | $85 to $105 million | +23% |
• | Six drilling rigs operating in the Delaware Basin, including 69 gross (58.0 net) operated wells anticipated to be completed and turned to sales during 2020. Matador estimates that 58 wells, or 84%, will have lateral lengths greater than one mile, including 51 wells, or 74%, with lateral lengths of two miles. Matador estimates that it will have 101 gross (83.2 net) operated wells in progress at varying times during 2020, of which 77 are expected to have lateral lengths of two miles or greater. |
• | Matador’s participation in a significant number of non-operated well opportunities, including 76 gross (5.6 net) non-operated wells anticipated to be completed and turned to sales in the Delaware Basin during 2020. Matador estimates that 72 of these non-operated wells, or 95%, will have lateral lengths greater than one mile, including 58 wells, or 76%, expected to have lateral lengths of two miles or greater. |
• | Capital expenditures for drilling, completing and equipping wells (“D/C/E capital expenditures”) of $690 to $750 million, inclusive of an estimated $32 million of capitalized general and administrative and interest expenses. |
• | San Mateo Midstream capital expenditures of $85 to $105 million. This estimate reflects Matador’s proportionate share of San Mateo’s 2020 estimated capital expenditures of $190 to $235 million and also accounts for the remaining portions of the $50 million capital carry that an affiliate of Five Point is expected to provide to Matador as part of the San Mateo II expansion in Eddy County, New Mexico. |
Operated | Non-Operated | Total | Gross Operated | ||||||
Asset/Operating Area | Gross | Net | Gross | Net | Gross | Net | Well Completion Intervals | ||
Rustler Breaks | 11 | 5.9 | 32 | 2.5 | 43 | 8.4 | 6-WC A-XY, 2-WC A-Lower, 3-WC B | ||
Stateline | 13 | 13.0 | — | — | 13 | 13.0 | 1-AVLN, 2-2BS, 4-WC A-XY, 4-WC A-Lower, 2-WC B | ||
Arrowhead | 9 | 7.3 | 9 | 0.6 | 18 | 7.9 | 4-2BS, 2-3BS, 2-WC A-XY, 1-WC B | ||
Ranger | — | — | 9 | 0.9 | 9 | 0.9 | No Ranger completions in 2020 | ||
Wolf/Jackson Trust | 15 | 11.9 | — | — | 15 | 11.9 | 5-2BS, 1-3BS-Carb, 6-WC A-XY, 3-WC A-Lower | ||
Twin Lakes | — | — | — | — | — | — | No Twin Lakes completions in 2020 | ||
Western Antelope Ridge (R. Robinson) | 14 | 13.5 | — | — | 14 | 13.5 | 4-AVLN, 4-2BS, 2-3BS, 4-WC A-XY | ||
Antelope Ridge | 7 | 6.4 | 26 | 1.6 | 33 | 8.0 | 1-1BS, 2-2BS, 1-3BS, 1-WC A-XY, 1-WC A-Lower, 1-WC B | ||
Delaware Basin | 69 | 58.0 | 76 | 5.6 | 145 | 63.6 | |||
Eagle Ford Shale | — | — | — | — | — | — | |||
Haynesville Shale | — | — | 5 | 0.0 | 5 | 0.0 | |||
Total | 69 | 58.0 | 81 | 5.6 | 150 | 63.6 |
• | 84% of Matador’s gross operated horizontal wells completed and turned to sales in 2020 are expected to have lateral lengths greater than one mile, as compared to 29% in 2019 and 9% in 2018. Matador estimates 74% of |
Operated Wells Turned to Sales | Average Lateral Length (feet) | % of Laterals Greater Than One Mile | % of Two-Mile Laterals | ||
Asset/Operating Area | Gross | Net | |||
Rustler Breaks | 11 | 5.9 | 9,300 | 100% | 82% |
Stateline | 13 | 13.0 | 9,800 | 100% | 100% |
Arrowhead | 9 | 7.3 | 9,800 | 100% | 100% |
Wolf/Jackson Trust | 15 | 11.9 | 7,500 | 73% | 44% |
Western Antelope Ridge (R. Robinson) | 14 | 13.5 | 9,800 | 100% | 100% |
Antelope Ridge | 7 | 6.4 | 4,500 | 0% | 0% |
Delaware Basin | 69 | 58.0 | 8,700 | 84% | 74% |
• | Matador expects to complete and turn to sales 600,000 gross lateral feet in its operated horizontal wells in 2020, while keeping its rig count flat at six operated rigs, an increase of 32%, or 146,000 lateral feet, as compared to 454,000 gross lateral feet in 2019, and an increase of 57%, as compared to 381,000 gross lateral feet in 2018. These projected results reflect the significant improvements the Company continues to make in its operating efficiency and overall rig productivity. |
• | Matador anticipates continued improvement in its capital efficiency, with drilling and completion costs for operated horizontal wells turned to sales in 2020 estimated to average approximately $1,025 per lateral foot. This represents a 12% decline in average drilling and completion costs per lateral foot, as compared to $1,165 per lateral foot in 2019, and a decline of 33% from $1,528 per lateral foot in 2018. |
• | In addition to the capital efficiencies generated by the use of multi-well pads and other techniques, co-development of formations in Matador’s Stateline asset area and the Rodney Robinson tract in western Antelope Ridge should provide a further boost to the well economics in those areas, as this approach should minimize the impact of both drainage and shut-ins and downtime associated with hydraulic fracturing operations in future wells. |
• | The average working interest of operated wells expected to be completed and turned to sales in the Delaware Basin in 2020 is estimated to be 84%, as compared to 81% in 2019. |
• | Production growth and capital expenditures are expected to be more uneven or “lumpy” on a quarterly basis than Matador has experienced in recent years. Capital expenditures are expected to be weighted to the first half of 2020, while much of the Company’s anticipated production growth is expected to occur in the second half of |
• | Matador expects to have 32 gross (25.2 net) operated Delaware Basin wells in progress, but not yet turned to sales, at year-end 2020, as many of these wells are associated with larger, multi-well pads expected to be in progress at year-end 2020. Although these wells will not contribute to production growth in 2020, many of these wells should be completed and turned to sales late in the first quarter or early in the second quarter of 2021, which Matador anticipates will result in a significantly higher rate of production growth in 2021 as compared to 2020. |
Sequential Change by Quarter | |||
Period | Average Daily Total Production | Average Daily Oil Production | Average Daily Natural Gas Production |
Q1 2020 | -5% to -7% | -5% to -7% | -4% to -6% |
Q2 2020 | +3% to +5% | +7% to +9% | -2% to 0% |
Q3 2020 | +0% to +2% | +1% to +3% | -2% to 0% |
Q4 2020 | +18% to +20% | +17% to +19% | +20% to +22% |
Year Ended December 31, | ||
(In thousands) | 2019 | |
Unaudited Adjusted EBITDA Reconciliation to Net Income: | ||
Net income attributable to Matador Resources Company shareholders | $87,777 | |
Net income attributable to non-controlling interest in subsidiaries | 35,205 | |
Net income | 122,982 | |
Interest expense | 73,873 | |
Total income tax provision | 35,532 | |
Depletion, depreciation and amortization | 350,540 | |
Accretion of asset retirement obligations | 1,822 | |
Unrealized loss on derivatives | 53,727 | |
Stock-based compensation expense | 18,505 | |
Net loss on asset sales and inventory impairment | 967 | |
Consolidated Adjusted EBITDA | 657,948 | |
Adjusted EBITDA attributable to non-controlling interest in subsidiaries | (47,192) | |
Adjusted EBITDA attributable to Matador Resources Company shareholders | $610,756 | |
Year Ended December 31, | ||
(In thousands) | 2019 | |
Unaudited Adjusted EBITDA Reconciliation to | ||
Net Cash Provided by Operating Activities: | ||
Net cash provided by operating activities | $552,042 | |
Net change in operating assets and liabilities | 34,517 | |
Interest expense, net of non-cash portion | 71,389 | |
Adjusted EBITDA attributable to non-controlling interest in subsidiaries | (47,192) | |
Adjusted EBITDA attributable to Matador Resources Company shareholders | $610,756 |
DQ)SS \334 BF5Z0$@O,#U--0"*Y
M9CEMIQQ'"---82()9Q'3,APAS#F!@4C2&>U_F3C76PQ/G9J
M<3*N.;-MU5>D?(;JBVL['DW_P#4$L#!!0 ( 4[6E!$4B1/;0( &H&
M 4 >&PO
Cover Page Cover Page |
Feb. 25, 2020 |
---|---|
Cover page. | |
Document Type | 8-K |
Document Period End Date | Feb. 25, 2020 |
Entity Registrant Name | Matador Resources Company |
Entity Incorporation, State or Country Code | TX |
Entity File Number | 001-35410 |
Entity Tax Identification Number | 27-4662601 |
Entity Address, Address Line One | 5400 LBJ Freeway, |
Entity Address, Address Line Two | Suite 1500 |
Entity Address, City or Town | Dallas, |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 75240 |
City Area Code | 972 |
Local Phone Number | 371-5200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | MTDR |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001520006 |
Amendment Flag | false |
Z:?&8&J?.==S=-=Q<;B-0$!$K?5Q846J3P@ "4 '_C-&$2+'^W$HC.39K
ME(#ZY+%=._+C$>U@,$_YCGG]2!A-$4#C\@.U +_,!P9T1_5AR9#J>#YKH.",P:Q
ML.2\J#R@[P0NV$M_!]3UA3TFY-TPPH1(]9^;%RF=X@]-UZB ]PE6U<@T1%4A
M09'#+2PPRY@=H$@[-V?>2XLH,$>'HD( &01D&+S)*[>>'2L8A5(.WI\9P*.6
M3R845YJ\'[X AVLSCG'F%= X&KG=X@50C&TL*;3A!6'I;YNY%-@7(6@U/-%
MI:>6BJ:F% MZV :=XM &\X 0V7Q0(-Z<:5N\S H-, >_@C+BI0'&-#4]D)W
M!D6[[DZ= ;-AHB7CC2VL2P9 K5YHG !R_.'YQ_/;72M!N_*+;?+Y4W(L5
MX7]S\2:>$@:58%_YO57AFI2SIFY8( GS.X^OT_3W6=U,>-'4XFS&BB=ED60Y)\6=8B_.R89/":O'9%J5
MUUG*4S*Z)25Z,-&+@5X,['WL?>Q]['WT8#[FP?1U67?]K:@XE/%/T&'RLJ[)
M\5>6%=^3LB I7'\-"LVUDAIC0%?N->YZWY:B[]+004,1@>H*J./ IU:DDHKL
M82\ 6%6WE\A(>"M.Q"Y;B()XTP+>'ARN$KWZ6VATD-H31TQ_,!2[!=6#&0"$&?,=Q@N'P4
MZ]$4#Z9A@=*HW 3>D.
Y>2TN!!J4-9RLEFQ?=[!
MY=*>NV->()HE0+&8VE?ZK+6=LO; Y6>6_=D/?W18BB"6:Y;7\S6Y6@1SSDN_
MUC@3]@=?]6!(U\."'CGBQ/4'CY""(NO<@5T]3GO%DZ]]CIHPWJV
M:'.2L&DF"OI
ZC_<%:U()%SGG!AC1'7ID\$0SV]#VL"
M/9WS5Y';SXU^4V\R>?5;X7')$GC$\0?AU"AG-9A8]9:-_,]>J=\'@D\M;[\&
M6 N:VH$*2!''>K"@J\OZOBYA&Z;"<"D6 5=HL)"& =.P433LDEL(8>@O#"@'
MAMSU..IUZ/HG3):#D!%V98+L.>7 H6V3^PWW6\%FJ0RF6E]I^WQ_H:LIB3A!
MX(-