Form 8-K

MATADOR RESOURCES COMPANY

Date: March 8, 2012

/s/ David E. Lancaster

Name: David E. Lancaster

Title: Executive Vice President

0001193125-12-103946.txt : 20120308 0001193125-12-103946.hdr.sgml : 20120308 20120308163856 ACCESSION NUMBER: 0001193125-12-103946 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 29 CONFORMED PERIOD OF REPORT: 20120307 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120308 DATE AS OF CHANGE: 20120308 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Matador Resources Co CENTRAL INDEX KEY: 0001520006 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 274662601 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-35410 FILM NUMBER: 12677735 BUSINESS ADDRESS: STREET 1: 5400 LBJ FREEWAY STREET 2: STE. 1500 CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 972-371-5200 MAIL ADDRESS: STREET 1: 5400 LBJ FREEWAY STREET 2: STE. 1500 CITY: DALLAS STATE: TX ZIP: 75240 FORMER COMPANY: FORMER CONFORMED NAME: Matador Holdco, Inc. DATE OF NAME CHANGE: 20110505 8-K 1 d313051d8k.htm FORM 8-K Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported) March 7, 2012

Matador Resources Company

(Exact name of registrant as specified in its charter)

Texas

001-35410

27-4662601

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

5400 LBJ Freeway, Suite 1500,

Dallas, Texas

75240

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (972) 371-5200

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	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))

Item 2.02

Results of Operations and Financial Condition.

On March 7, 2012, Matador Resources Company (the “Company”) announced its 2012 capital budget and 2012 guidance. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), unless specifically identified therein as being incorporated therein by reference.

Item 7.01

Regulation FD Disclosure.

On March 7, 2012, the Company announced its 2012 capital budget and 2012 guidance. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.

The Company expects to make presentations concerning its business to potential investors. The materials to be utilized during the presentations are furnished as Exhibit 99.2 hereto.

The information furnished pursuant to this Item 7.01, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for the purposes of Section 18 of the Exchange Act and will not be incorporated by reference into any filing under the Securities Act unless specifically identified therein as being incorporated therein by reference.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits


Exhibit No.		Description of Exhibit

99.1		Press Release, dated March 7, 2012, announcing 2012 capital budget and 2012 guidance.

99.2		Presentation Materials.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit Index


Exhibit No.		Description of Exhibit

99.1		Press Release, dated March 7, 2012, announcing 2012 capital budget and 2012 guidance.

99.2		Presentation Materials.

EX-99.1 2 d313051dex991.htm PRESS RELEASE, DATED MARCH 7, 2012 Press Release, dated March 7, 2012

Exhibit 99.1

LOGO

NEWS RELEASE

MATADOR RESOURCES COMPANY ANNOUNCES

2012 CAPITAL BUDGET AND 2012 GUIDANCE

DALLAS, Texas, March 7, 2012 – Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced its capital budget and operating plans for 2012 as well as its initial guidance for selected 2012 operating metrics.

2012 Guidance

Capital Spending and Operating Plans

As set forth in its initial public offering prospectus dated February 1, 2012, Matador’s 2012 capital budget is estimated to be approximately $313 million. The Company plans to direct approximately 94% or $295 million of its 2012 capital budget to opportunities prospective for oil and liquids opportunities, including the allocation of approximately 84% or $264 million specifically to the exploration, development and acquisition of additional interests in the Eagle Ford shale play in South Texas. Matador is running two rigs in South Texas currently and expects to run two rigs in that area throughout 2012. The Company plans to allocate the remaining 6% or approximately $18 million of its 2012 budget to natural gas related activities, primarily in the Haynesville shale in North Louisiana. The Company does not plan to drill any operated Haynesville wells in 2012.

Production

The Company estimates that its 2012 total oil production will be between 1.4 and 1.5 million barrels as compared to total oil production of approximately 154,000 barrels in 2011 and approximately 33,000 barrels in 2010. Daily oil production at the end of 2012 is anticipated to be between 5,000 and 5,500 barrels per day of oil. Total natural gas production for 2012 is expected to decline to between 12.5 and 13.5 billion cubic feet as compared to approximately 14.5 billion cubic feet in 2011. Matador anticipates that some of the decline in the Company’s Haynesville dry gas production will be offset by natural gas production associated with its Eagle Ford drilling activities which should enjoy higher effective pricing as compared to the Haynesville dry gas production due to its natural gas liquids (“NGL”) content.

Metrics and Range

•

2012 Estimated Total Oil Production – 1.4 to 1.5 million barrels

•

2012 Estimated Exit Rate for Oil Production – 5,000 to 5,500 barrels per day

•

2012 Estimated Total Natural Gas Production – 12.5 to 13.5 billion cubic feet

-more-

Matador Resources Company Announces 2012

Capital Budget and 2012 Guidance

Page 2 of 3

Other Matters

Liquidity

The Company recently completed its initial public offering pursuant to which the Company received net proceeds of approximately $133.6 million, including the exercise of the underwriters’ over-allotment option. The Company used net proceeds to repay the $123.0 million outstanding under its revolving credit facility in full. On February 28, 2012, the Company’s borrowing base under its $400 million senior secured revolving credit facility was increased from $100 million to $125 million, and the Company currently has the entire $125 million in borrowing capacity available under the facility. Matador plans to fund its 2012 capital budget with the remaining net proceeds, anticipated cash flows from operations and available borrowings under its credit facility. During 2012, the Company intends to seek redeterminations of its borrowing base as a result of any increases in its oil and natural gas reserves during the year.

Hedging Positions

Matador has hedged 1.18 million barrels of its anticipated 2012 oil production using costless collars having a weighted average floor price of $90.51/bbl and a weighted average ceiling price of $109.84/bbl.

Matador has hedged 7.2 Bcf of its anticipated 2012 natural gas production using costless collars having a weighted average price floor of $4.44/MMBtu and a weighted average ceiling price of $5.78/MMBtu.

Management Comments

Mr. Joseph Wm. Foran, Matador’s Chairman and Chief Executive Officer, noted “Following the successful completion of Matador’s initial public offering, we expect another year of strong growth fueled by our ongoing drilling activities in the Eagle Ford shale play in South Texas. We will continue to execute upon our strategy to increase the oil component of our production and reserves and anticipate oil production to constitute approximately 35% to 40% of our total production volume and oil revenues to constitute approximately 75% to 80% of our total oil and natural gas revenues in 2012.”

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 a particular emphasis on oil and natural gas shale plays and other unconventional resource plays. Its current operations are located primarily in the Eagle Ford shale play in south Texas and the Haynesville shale play in northwest Louisiana and east Texas.

For more information visit Matador Resources Company on the Internet at www.matadorresources.com

Matador Resources Company Announces 2012

Capital Budget and 2012 Guidance

Page 3 of 3

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” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results and future events could differ materially from those anticipated in such statements. These forward-looking statements involve certain risks and uncertainties and ultimately may not prove to be accurate, including, but not limited to, the following risks related to our financial and operational performance: general economic conditions; our ability to execute our business plan, including the success of our drilling program; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; our ability to replace reserves and efficiently develop our current reserves; our costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; our ability to make acquisitions on economically acceptable terms; availability of sufficient capital to execute our business plan, including from our future cash flows, increases in our borrowing base and otherwise; weather and environmental concerns; 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 SEC filings, including the “Risk Factors” section of Matador’s Prospectus dated February 1, 2012. Matador undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release, except as required by law. 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.

Contact Information

Wade Massad

Executive Vice President – Capital Markets

972.371.5293

Email: wmassad@matadorresources.com

###

EX-99.2 3 d313051dex992.htm PRESENTATION MATERIALS Presentation Materials

Investor Presentation

March

2012

Exhibit 99.2

Forward-Looking Statements

This presentation and statements made by representatives of Matador Resources Company (“Matador” or the “Company”) during the course of

this presentation include “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” and

similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying

words. Actual results and future events could differ materially from those anticipated in such statements. These forward-looking statements involve

certain risks and uncertainties and ultimately may not prove to be accurate, including, but not limited to, the following risks related to our financial

and operational performance: general economic conditions; our ability to execute our business plan, including the success of our drilling program;

changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; our ability to replace reserves

and efficiently develop our current reserves; our costs of operations, delays and other difficulties related to producing oil, natural gas and natural

gas liquids; our ability to make acquisitions on economically acceptable terms; availability of sufficient capital to execute our business plan,

including from our future cash flows, increases in our 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 SEC filings, including the “Risk Factors” section of Matador’s Prospectus

dated February 1, 2012. 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 presentation, except as required by law. You are cautioned not to place undue reliance on these

forward-looking statements, which speak only as of the date of this presentation. All forward-looking statements are qualified in their entirety by

this cautionary statement.

Company Overview

Completed IPO of 14,883,334 shares (12,209,167 primary shares) including overallotment at $12.00 per

share in March 2012

Exchange: Ticker

NYSE: MTDR

Shares Outstanding

[1]

55.27 million common shares

Share Price

[1]

$11.14/share

Market Capitalization

[1]

$615.7 million

[1] As of March 7, 2012 close

Founded by Joe Foran in 1983

Foran Oil funded with $270,000 in

contributed capital from 17 friends and

family members

Rolled into Matador Petroleum Corporation

in 1988

Grown primarily through acquire and exploit

strategy

Delivered 21% average annual rate of

return over 15 years

Sold

Tom

Brown,

Inc.

(1)

June

2003

for

an enterprise value of $388 million in an all-

cash transaction

Foran Oil & Matador Petroleum

Matador History

Matador Resources Company

Predecessor Entities

Matador Today

Founded by Joe Foran in 2003

Attracted start-up capital from long-time

shareholders; diverse and unique shareholder

group including over 400 friends and

neighbors

Proven management, technical team and

Board of Directors

Grown entirely through drill bit, with focus on

unconventional reservoir plays

Strong growth since 2008

Early January 2012 production at 53.2

MMcfe/d

(2)

(20.3% oil versus 3.0% oil for

January 2011)

Daily

production

has

increased

over

Adjusted EBITDA

(4)

has more than

doubled

(3)

Proved

reserves

have

increased

(3)

(1) Tom Brown purchased by Encana in 2004

(2) Average daily production for first eleven days of January 2012

(3) As of September 30, 2011

(4) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see slide 23

2012 Guidance Summary

2012 Estimated Capital Spending

$313 million

2012 Estimated Total Oil Production

1.4 to 1.5 million barrels

2012 Estimated Exit Rate for Oil Production

5,000 to 5,500 barrels per day

2012 Estimated Total Natural Gas Production

12.5 to 13.5 billion cubic feet

Daily Production

(1)

53.2 MMcfe/d

% Oil

20%

Proved Reserves @ 9/30/11

161.8 Bcfe

% Proved Developed

35%

% Oil

4% (and growing)

2012E CapEx

$313 million

% Eagle Ford

84%

% Oil and Liquids

94%

2012E Anticipated Drilling

29.5 net wells

Eagle Ford / Austin Chalk

27.6 net wells

Haynesville

1.5 net wells

Gross Acreage

236,263 acres

Net Acreage

197,764 acres

Identified Drilling Locations

818 gross / 313 net

Eagle Ford / Austin Chalk

213 gross / 173 net

Haynesville/Cotton Valley

605 gross / 140 net

Matador Resources Snapshot

(1) Average

daily

production

for

first

eleven

days

January

2012.

Investment Highlights

Strong Growth Profile with Increasing Focus on Oil / Liquids

Total Production CAGR

(1)

of 75.9%

since 2008 and oil / liquids production CAGR of 113.4%

since Q1 ‘10

94%

(2)

of 2012E capital expenditure program focused on oil / liquids exploration and development

High Quality Asset Base in Attractive Areas

Eagle Ford provides immediate oil-weighted value and upside

Other key assets provide long-term option value on natural gas, with Haynesville, Bossier, Cotton Valley assets all

essentially HBP

Significant Multi-year Drilling Inventory

173 net drilling locations across 28,900 net acres in Eagle Ford

(157) and Austin Chalk (16)

140 net drilling locations across 25,500 net acres in Haynesville (104) and Cotton Valley (36)

Strong Financial Position and Long-Term Institutional, Industry and Individual Shareholders

Proven Management and Technical Team and Active Board of Directors

Management averaging over 25 years of industry experience

Board with extensive industry experience and expertise as well as significant company ownership

Strong record of stewardship for over 28 years

Low Cost Operations

LOE for nine months ended September 30, 2011 was $0.49 per Mcfe,

a 65% reduction since 2008

Active Exploration Effort Using Science and Technology

Ongoing pipeline of new oil and natural gas opportunities, with strong emphasis on science and technology to create

value

(1)

(2)

Compound annual growth rate. CAGR based on production through 9/30/2011.

Calculated as percent of anticipated CapEx focused on oil weighted Eagle Ford and Austin Chalk drilling and acreage and includes $20 million to acquire oil prospective acreage in New Mexico

and West Texas.

2012E Capex

% Eagle Ford

48.3

45.3

43.4

32.4

32.3

30.0

25.7

22.1

19.5

15.4

9.6

9.0

6.1

3.7

MTDR

SFY

NFX

FST

GDP

PVA

CRZO

ROSE

MHR

CHK

PXD

APA

PXP

APC

84%

48%

34%

N/A

78%

92%

N/A

62%

25%

73%

85%

5.2%

Leverage to Eagle Ford (Net Eagle Ford Acres / EV)

(Net Acres / $mm)

Leading Eagle Ford Exposure

Matador offers significant leverage

and focus to the Eagle Ford

Approximately 85% of Eagle Ford

acreage is in the prospective oil and

liquids window

All 2012E Eagle Ford drilling focused

in the prospective oil and liquids

window

84% of 2012E estimated CapEx

allocated to Eagle Ford

One rig running in the eastern and

one in the western portions of the

Eagle Ford play

Eagle Ford acreage well-positioned

throughout the play

Note: Reflects companies with greater than 50 Bcfe of proved reserves. Data sourced from public filings; stock price data as of 03/07/2012.

Highlights

Eagle Ford Properties are Well Positioned

MTDR acreage in counties with

robust transaction activity –

“good neighborhoods”

Transaction values ranging from

$10,000 to $25,000 / acre

Our Eagle Ford position has

grown to almost 30,000 net

acres

Acreage in both the eastern and

western areas of the play

Approximately 85% of acreage

in prospective oil and liquids

windows

Acreage offers potential for

Austin Chalk, Buda, Olmos,

Pearsall and other formations

Note: Information for precedent transactions based on public filings.

COMBO LIQUIDS /

GAS FAIRWAY

DRY GAS

FAIRWAY

OIL FAIRWAY

TALISMAN-STATOIL / SM ENERGY

June 2011

$14,610 / acre

SHELL / HARRISON RANCH

March 2010

$10,000 / acre

CNOOC / CHESAPEAKE

October 2010

$11,011 / acre

MARATHON / HILCORP

June 2011

$24,823 / acre

KKR / HILCORP

June 2010

$10,000 / acre

TALISMAN-STATOIL / ENDURING

October 2010

$13,660 / acre

RELIANT / PIONEER NEWPEK

June 2010

$11,070 / acre

PLAINS / HUGHES

October 2010

$9,633 / acre

TALISMAN / COMMON

March 2010

$9,730 / acre

HUNT / MARUBENI

January 2012

+$20,000 / acre

MITSUI / SM ENERGY

June 2011

$18,846 / acre

COMBO LIQUIDS /

GAS FAIRWAY

DRY GAS

FAIRWAY

OIL FAIRWAY

TALISMAN-STATOIL / SM ENERGY

June 2011

$14,610 / acre

SHELL / HARRISON RANCH

March 2010

$10,000 / acre

CNOOC / CHESAPEAKE

October 2010

$11,011 / acre

MARATHON / HILCORP

June 2011

$24,823 / acre

KKR / HILCORP

June 2010

$10,000 / acre

TALISMAN-STATOIL / ENDURING

October 2010

$13,660 / acre

RELIANT / PIONEER NEWPEK

June 2010

$11,070 / acre

PLAINS / HUGHES

October 2010

$9,633 / acre

TALISMAN / COMMON

March 2010

$9,730 / acre

HUNT / MARUBENI

January 2012

+$20,000 / acre

MITSUI / SM ENERGY

June 2011

$18,846 / acre

Good reputation with land and mineral owners

80% of Eagle Ford acreage HBP or not burdened with lease expirations before 2013

Highlights

Eagle Ford Well Performance

IP rates and early performance

strong in our acreage

Matador has drilled and

completed eleven operated

Eagle Ford wells

Recent wells have exceeded

initial well performance

expectations

Matador production:

Martin Ranch #1H –

700

Bbls/d and 350 Mcf/d

Martin Ranch #2H –

1,310

Bbls/d and 1.8 MMcf/d (IP)

Martin Ranch #3H –

620

Bbls/d and 0.5 MMcf/d (IP)

Martin Ranch #5H –

810

Bbls/d and 0.6 MMcf/d (IP)

Lewton #1H –

600 Bbls/d

(cond.) and 2.7 MMcf/d

COMBO LIQUIDS /

GAS FAIRWAY

DRY GAS FAIRWAY

OIL FAIRWAY

PETROHAWK –

ULRICH B 1H

OIL IP: 993 Bbls/d

GAS IP: 1,767 Mcf/d

BURLINGTON –

MARALDO A403 1H

OIL IP: 2,208 Bbls/d

GAS IP: 5,813 Mcf/d

HUNT OIL –

MOCZYGEMBA 1H

OIL IP: 199 Bbls/d

GAS IP: 104 Mcf/d

HUNT OIL –

WARNKEN 1H

OIL IP: 454 Bbls/d

GAS IP: 82 Mcf/d

FOREST OIL –

HAESE 1H

OIL IP: 745 Bbls/d

GAS IP: 435 Mcf/d

EOG –

BEYNON UNIT 2H

OIL IP: 1,079 Bbls/d

GAS IP: 1,023 Mcf/d

PIONEER –

STRAUBE 1H

OIL IP: 577 Bbls/d

GAS IP: 6,600 Mcf/d

CRIMSON –

LITTLEPAGE MCBRIDE 1H

OIL IP: 354 Bbls/d

GAS IP: 235 Mcf/d

CHESAPEAKE –

TRAYLOR NORTH 2H

OIL IP: 405 Bbls/d

GAS IP: 78 Mcf/d

CHESAPEAKE –

LAZY A COTULLA 1H

OIL IP: 619 Bbls/d

GAS IP: 339 Mcf/d

CARRIZO –

BEAR CLAUSE RANCH 10H

OIL IP: 742 Bbls/d

GAS IP: 330 Mcf/d

EL PASO –

HIXON 3H

OIL IP: 341 Bbls/d

GAS IP: 814 Mcf/d

PETROHAWK –

MARTIN DORA 1716 1H

OIL IP: 2 Bbls/d

GAS IP: 9,464 Mcf/d

ANADARKO –

BRISCOE COCHINA

RANCH 5H

OIL IP: 399 Bbls/d

GAS IP: 365 Mcf/d

COMBO LIQUIDS /

GAS FAIRWAY

DRY GAS FAIRWAY

OIL FAIRWAY

PETROHAWK –

ULRICH B 1H

OIL IP: 993 Bbls/d

GAS IP: 1,767 Mcf/d

BURLINGTON –

MARALDO A403 1H

OIL IP: 2,208 Bbls/d

GAS IP: 5,813 Mcf/d

HUNT OIL –

MOCZYGEMBA 1H

OIL IP: 199 Bbls/d

GAS IP: 104 Mcf/d

HUNT OIL –

WARNKEN 1H

OIL IP: 454 Bbls/d

GAS IP: 82 Mcf/d

FOREST OIL –

HAESE 1H

OIL IP: 745 Bbls/d

GAS IP: 435 Mcf/d

EOG –

BEYNON UNIT 2H

OIL IP: 1,079 Bbls/d

GAS IP: 1,023 Mcf/d

PIONEER –

STRAUBE 1H

OIL IP: 577 Bbls/d

GAS IP: 6,600 Mcf/d

CRIMSON –

LITTLEPAGE MCBRIDE 1H

OIL IP: 354 Bbls/d

GAS IP: 235 Mcf/d

CHESAPEAKE –

TRAYLOR NORTH 2H

OIL IP: 405 Bbls/d

GAS IP: 78 Mcf/d

CHESAPEAKE –

LAZY A COTULLA 1H

OIL IP: 619 Bbls/d

GAS IP: 339 Mcf/d

CARRIZO –

BEAR CLAUSE RANCH 10H

OIL IP: 742 Bbls/d

GAS IP: 330 Mcf/d

EL PASO –

HIXON 3H

OIL IP: 341 Bbls/d

GAS IP: 814 Mcf/d

PETROHAWK –

MARTIN DORA 1716 1H

OIL IP: 2 Bbls/d

GAS IP: 9,464 Mcf/d

ANADARKO –

BRISCOE COCHINA

RANCH 5H

OIL IP: 399 Bbls/d

GAS IP: 365 Mcf/d

24-hour IP rates at Martin Ranch #2H, #3H and #5H range from

700 Boe/d to 1,600 Boe/d (>80% oil)

Martin Ranch #1H produced 111,000 Bbls oil in first eight

months

Note: Initial production information on third party wells is based on publicly available information.

Eagle Ford and Austin Chalk Properties Overview

Acreage positioned in some of the most active

counties for Eagle Ford and Austin Chalk (including

“Chalkleford”)

Two rigs running, primarily focused on oil and

liquids

Eleven operated wells drilled, completed and

producing; Three additional operated wells in

completion phase

Approximately 3.5 MMBoe (2.8 MMBbls of oil and

4.2 Bcf of natural gas) added to Eagle Ford proved

reserves in Q4 2011

Proved Reserves @ 9/30/11

1.4 MMBoe

% Proved Developed

51.0%

% Oil / Liquids

64.7%

Daily Production

(1)

2,175 Boe/d

(78% Oil)

Gross Acres

52,053 acres

Net Acres

28,906 acres

Eagle Ford

(2)

28,906 acres

Austin Chalk

(2)

14,849 acres

Identified Drilling Locations

173.1 net

2012E Anticipated Drilling

27.6 net wells

2012E CapEx Budget

$268.5 million

% HBP

(3)

80%

COMBO LIQUIDS /

GAS FAIRWAY

DRY GAS FAIRWAY

OIL FAIRWAY

EOG OPERATED, MTDR WI = 21%

23,420 gross / 4,631 net acres

Lewton #1H

GLASSCOCK (WINN) RANCH

8,891 gross / 8,891 net acres

Martin Ranch #1H, #2H, #3H, #5H

EAGLE FORD WEST

13,472 gross / 10,510 net acres

EAGLE FORD EAST

6,270 gross / 4,874 net acres

EAGLE FORD ACREAGE TOTALS

52,053 gross / 28,906 net acres

Affleck #1H

JCM Jr. Minerals #1H

COMBO LIQUIDS /

GAS FAIRWAY

DRY GAS FAIRWAY

OIL FAIRWAY

EOG OPERATED, MTDR WI = 21%

23,420 gross / 4,631 net acres

Lewton #1H

GLASSCOCK (WINN) RANCH

8,891 gross / 8,891 net acres

Martin Ranch #1H, #2H, #3H, #5H

EAGLE FORD WEST

13,472 gross / 10,510 net acres

EAGLE FORD EAST

6,270 gross / 4,874 net acres

EAGLE FORD ACREAGE TOTALS

52,053 gross / 28,906 net acres

Affleck #1H

JCM Jr. Minerals #1H

Average daily production for first eleven days of January 2012.

Some of the same leases cover the net acres shown for Eagle Ford & Austin Chalk. Therefore, the sum for

both formations is not equal to the total net acreage.

80% of Eagle Ford acreage HBP or not burdened with lease expirations before 2013.

(1)

(2)

(3)

Northwest Louisiana / East Texas Properties Overview

Proved Reserves @ 9/30/11

152.7 Bcfe

% Proved Developed

33.3%

% Natural Gas

99.7%

Daily Production

(1)

39.1 MMcfe/d

Gross Acres

29,128 acres

Net Acres

25,477 acres

Haynesville

(2)

14,705 acres

Cotton Valley

(2)

23,236 acres

Identified Drilling Locations

139.9 net wells

2012E Anticipated Drilling

1.5 net wells

2012E CapEx Budget

$13.5 million

% HBP

Over 90%

(1)

Production data for the nine months ended September 30, 2011.

(2)

Some of the same leases cover the net acres shown for Haynesville & Cotton Valley. Therefore, the sum for both

formations is not equal to the total net acreage.

Haynesville, Cotton Valley and Other Plays

Participated in over 80 operated and non-operated

Haynesville wells at September 30, 2011

Haynesville proved reserves grew from zero at YE

2008 to 136.6 Bcfe at September 30, 2011

LA Wildlife H#1 and Williams 17 H#1 operated wells

produced approximately 10 MMcfe/d and 7 MMcfe/d

in their first 11 and 8 months, respectively

Note: Matador operates two sections, including the LA Wildlife and the BLM sections, in Tier 1; all other acreage in Tier 1 is non-operated.

Highlights

Haynesville Positioning

Approximately 12,000 gross and

5,500 net acres in Haynesville

Tier 1 core area

Almost all Tier 1 core acreage is

HBP, as is over 90% of all

prospective Haynesville acreage

–

provides “natural gas bank”

for

future development

MTDR active as both operator

and non-operator in Haynesville

play

Approximately 1,700 net acres

with Bossier potential

Haynesville acreage also

prospective for shallower targets

–

Cotton Valley, Hosston, in

many areas

Approximately 10,000 net HBP

acres prospective for Cotton

Valley Horizontal play at Elm

Grove / Caspiana

Tigner Walker H#1 Alt (CV)

LA Wildlife H#1 Alt. (HV)

Williams 17 H#1 (HV)

Tigner Walker H#1 Alt (CV)

LA Wildlife H#1 Alt. (HV)

Williams 17 H#1 (HV)

Note: Matador operates two sections, including the LA Wildlife and the BLM sections, in Tier 1; all other acreage in Tier 1 is non-operated.

Liquids Focused CapEx in 2012E ($mm)

Commentary

Oil Production Growth Over Time (Bbls/d)

Approximately 90% of 2012E

capital budget focused on

Eagle Ford (84%) and

Austin Chalk (6%)

All 2012 Eagle Ford and

Austin Chalk drilling locations

targeting oil and liquids

Only 14% of our identified

Eagle Ford and 5% of our

identified Haynesville locations

being drilled in 2012

Oil production up about five-

fold year-over-year at

September 30, 2011

Early January 2012 oil

production approximately

1,800 Bbls/d

Strong Growth Profile Focused on Liquids

415

1,800

500

1,000

1,500

2,000

2010

09/30/2011

Jan-12

(1) Average daily production for first eleven days of January 2012.

(1)

2012E Anticipated Drilling

2012E CapEx

Gross Wells

% Total

Net Wells

% Total

($ in mm)

% Total

South Texas

30.0

53.6%

27.6

93.6%

$268.5

85.8%

NW LA / E Texas

25.0

44.6%

1.5

5.1%

13.5

4.3%

SE WY, NE UT, SE ID

1.0

1.8%

0.4

1.3%

2.5

0.8%

Other

28.5

9.1%

Total

56.0

100.0%

29.5

100.0%

$313.0

100.0%

Diversified Investor Composition

Given management’s significant equity position, interests are well aligned with public shareholders

Unique and diverse investor base includes institutional and industry shareholders with significant

experience investing in the oil and gas sector

Most initial capital was provided by investor base of predecessor company, Matador Petroleum

Corporation

99.2%

outside

the

public

float

locked-up

for

180

days

following

February

2012

Note: As of March 7, 2012 close.

Management

12.6%

of shares

Legacy Shareholders

60.5%

of shares

Public Float

26.9%

of shares

Matador Resources Company -

Management

Management Team

Background and Prior Affiliations

Industry

Experience

Matador

Experience

Joseph Wm. Foran

Founder, Chairman and CEO

Matador Petroleum Corporation, Foran Oil Company,

J Cleo Thompson Jr. and Thompson Petroleum Corp.

31 years

Since Inception

David E. Lancaster

EVP, COO and CFO

Schlumberger, S.A. Holditch & Associates, Inc,

32 years

Since 2003

Matthew V. Hairford

EVP, Operations

Samson, Sonat, Conoco

27 years

Since 2004

Wade I. Massad

EVP, Capital Markets

Cleveland Capital Management, LLC, KeyBanc Capital

Markets, RBC Capital Markets

22 years

Since 2010

David F. Nicklin

Executive Director, Exploration

ARCO, Senior Geological Assignments in UK, Angola,

Norway and the Middle East

40 years

Since 2007

Scott E. King

Co-Founder, VP, Geophysics

and New Ventures

Matador Petroleum Corporation, Enserch, BP, Sohio

28 years

Since Inception

Bradley M. Robinson

VP, Reservoir Engineering

Schlumberger, S.A. Holditch & Associates, Inc,

Marathon

34 years

Since Inception

Kathryn L. Wayne

Controller and Treasurer

Matador Petroleum Corporation, Mobil

27 years

Since Inception

Diamond Shamrock

Board of Directors and Special Board Advisors

Board Members

and Advisors

Professional Experience

Business Expertise

Charles L. Gummer

Director

Former Chairman, President and CEO, Comerica Bank –Texas

Banking

Dr. Stephen A. Holditch

Director

Professor and Former Head of the Department of Petroleum

Engineering, Texas A&M University

Founder / President S.A. Holditch & Associates

Past President of Society of Petroleum Engineers

Oil & Gas Operations

David M. Laney

Director

Past Chairman, Amtrak Board of Directors

Former Partner, Jackson Walker LLP

Law

Gregory E. Mitchell

Director

President / CEO, Toot’n Totum Food Stores

Petroleum Retailing

Dr. Steven W. Ohnimus

Director

Retired VP and General Manager, Unocal Indonesia

Oil & Gas Operations

Michael C. Ryan

Director

Partner, Berens Capital Management

International Business and

Finance

Margaret B. Shannon

Director

Retired VP and General Counsel, BJ Services Co.

Former Partner, Andrews Kurth LLP

Law and

Corporate Governance

Marlan W. Downey

Special Board Advisor

Retired President, ARCO International

Former President, Shell Pecten International

Past President of American Association of Petroleum Geologists

Oil & Gas Exploration

Edward J. Scott

Special Board Advisor

Former Chairman, Amarillo Economic Development Corporation

Law Firm of Gibson, Ochsner & Adkins

Law, Accounting and Real

Estate Development

W.J. “Jack”

Sleeper

Special Board Advisor

Retired President, DeGolyer and MacNaughton (Worldwide

Petroleum Consultants)

Oil & Gas Executive

Management

Business Strategy to Deliver Growth and Value

Exploration and Development

Dedicating approximately 94%

(1)

of 2012E CapEx to oil and liquids opportunities

Approximately 80% of Eagle Ford and approximately 90% of Haynesville acreage either HBP or not

burdened by near-term lease expirations

Balanced Portfolio

Growing Eagle Ford contributes to a diversified portfolio mix between oil and natural gas

Active,

ongoing

exploration

effort

continues

identify

new

oil

prospects

and

opportunities

Pursue Opportunistic Acquisitions

Ability to identify high return, operated opportunities at attractive prices

History of significant acquisitions and joint ventures

Maintain Financial Discipline

Keep balance sheet strong and control expenses

Work with industry participants to control costs for non-operated properties

Leverage Industry Relationships

Leverage expertise of our industry partners, exchange data and information and build upon existing

relationships

Continue active participation in industry consortia and professional societies

Build Upon Director and Management Team Experience and Success in Unconventional Plays

(1)

Calculated as percent of anticipated capital expenditure focused on oil weighted Eagle Ford and Austin Chalk and includes $20 million to acquire acreage for oil opportunities in New Mexico and West Texas.

Matador Today

Gross Acres

144,368 acres

Net Acres

135,862 acres

2012E CapEx Budget

$2.5 million

Matador Today

Gross Acres

10,714 acres

Net Acres

7,519 acres

Wyoming, Utah and Idaho (Meade Peak Shale)

Option Value in Large Unevaluated Acreage Positions

Initial test well drilled to 8,200 feet and cored through the

Meade Peak shale

Detailed petrophysical and rock properties testing in

progress

Carried participation interest provided by an affiliate of

Alliance Bernstein

Foothold of existing production and reserves

Budgeted $20 million in 2012 to acquire acreage in oil-

focused opportunities

Southeast New Mexico / West Texas

Financial Performance

Note: CAGR stands for compounded annual growth rate.

Revenue

($ in mm)

$32.9

$24.3

$42.5

$34.0

$57.8

$0.0

$20.0

$40.0

$60.0

$80.0

FY 2008

FY 2009

FY 2010

09/30/10

09/30/11

CapEx

($ in mm)

$107.1

$54.6

$160.7

$87.0

$108.0

$0.0

$50.0

$100.0

$150.0

$200.0

FY 2008

FY 2009

FY 2010

09/30/10

09/30/11

Adjusted EBITDA

(1)

($ in mm)

$18.4

$15.2

$23.6

$17.1

$37.6

$0.0

$15.0

$30.0

$45.0

$60.0

FY 2008

FY 2009

FY 2010

09/30/10

09/30/11

Average Daily Production

(MMcfe/d)

9.0

13.7

23.6

22.0

42.5

0.0

12.5

25.0

37.5

50.0

FY 2008

FY 2009

FY 2010

09/30/10

09/30/11

CAGR: 75.9%

(1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see slide 23

Selected Historical Financials

($ in millions)

(1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income and net cash provided by operating activities, see slide 23

Year Ended December 31,

Nine Months Ended September 30,

2008

2009

2010

2011

Production Summary

Oil Production (MBbls)

37.0

30.0

33.0

24.0

113.0

Gas Production (Bcf)

3.1

4.8

8.4

5.9

10.9

Total Annual Production (Bcfe)

3.3

5.0

8.6

6.0

11.6

Realized Prices (Including hedges):

Oil ($/ Bbl)

$98.59

$57.72

$76.39

$74.59

$92.71

Natural Gas ($/ Mcf)

$8.32

$5.17

$4.38

$4.49

$4.19

Revenues:

Oil and Gas Production Revenues

$30.6

$19.0

$34.0

$25.2

$52.0

Realized Oil & Gas Hedging Gain / (Loss)

(1.3)

7.6

5.3

3.0

4.2

Unrealized Oil & Gas Hedging Gain / (Loss)

3.6

(2.4)

3.1

5.8

1.5

Total Revenues

$32.9

$24.3

$42.5

$34.0

$57.8

Operating Expenses ($ / Mcfe)

Lease Operating

$1.41

$0.94

$0.61

$0.63

$0.49

Production Taxes and Marketing

0.50

0.22

0.23

0.21

0.41

General and Administrative

2.50

1.42

1.13

0.81

Total Expenses

$4.41

$2.58

$1.97

$1.71

Adjusted EBITDA

(1)

$18.4

$15.2

$23.6

$17.1

$37.6

Hedging Profile

Oil Hedges

2012

2013

Total Volume Hedged by Ceiling (Bbl)

1,180,000

1,260,000

Weighted Average Price ($ / Bbl)

$109.84

$110.26

Total Volume Hedged by Floor (Bbl)

1,180,000

1,260,000

Weighted Average Price ($ / Bbl)

$90.51

$87.14

Natural Gas Hedges

2012

2013

Total Volume Hedged by Ceiling (Bcf)

7.20

1.05

Weighted Average Price ($ / MMBtu)

$5.78

$5.75

Total Volume Hedged by Floor (Bcf)

7.20

1.05

Weighted Average Price ($ / MMBtu)

$4.44

$4.50

Liquidity

No debt outstanding as of February 2012

IPO net proceeds used to repay $123.0 million outstanding under the Company’s revolving credit

facility

Borrowing base of $125 million, based on February 2012 redetermination

Plan to fund 2012 capital budget with remaining IPO net proceeds, anticipated cash flows from

operations and available borrowings under its credit facility

Intend

seek

redeterminations

borrowing

base

result

any

increases

oil

and

natural

gas

reserves during the year

Adjusted EBITDA Reconciliation

The following table presents our calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net income

(loss) and net cash provided by operating activities, respectively.

(In thousands)

2008

2009

2010

2011

Unaudited Adjusted EBITDA reconciliation to Net Income (Loss):

Net income (loss)

$103,878

($14,425)

$6,377

$7,373

($13,725)

Interest expense

461

Total income tax provision (benefit)

20,023

(9,925)

3,521

4,043

(6,952)

Depletion, depreciation and amortization

12,127

10,743

15,596

10,931

22,578

Accretion of asset retirement obligations

137

155

107

158

Full-cost ceiling impairment

22,195

25,244

35,673

Unrealized (gain) loss on derivatives

(3,592)

2,375

(3,139)

(5,812)

(1,534)

Stock option and grant expense

605

622

824

466

855

Restricted stock grants

Net (gain)/loss on asset sales and inventory impairment

(136,977)

379

224

Adjusted EBITDA

$18,411

$15,184

$23,635

$17,133

$37,550

(In thousands)

2008

2009

2010

2011

Unaudited Adjusted EBITDA reconciliation to Net Cash Provided

by Operating Activities:

Net cash provided by operating activities

$25,851

$1,791

$27,273

$21,390

$34,443

Net change in operating assets and liabilities

(17,888)

15,717

(2,230)

(2,846)

2,692

Interest expense

461

Current income tax (benefit) provision

10,448

(2,324)

(1,411)

(46)

Adjusted EBITDA

$18,411

$15,184

$23,635

$17,133

$37,550

Nine Months Ended September 30,

Year Ended December 31,

Nine Months Ended September 30,

We believe Adjusted EBITDA helps us evaluate our operating performance and compare our results of operation from period to period without regard to our financing methods or capital structure. We

define Adjusted EBITDA as earnings before interest expense, income taxes, depletion, depreciation and amortization, property impairments, unrealized derivative gains and losses, non-recurring

income and expenses and non-cash stock-based compensation expense, including stock option and grant expense and restricted stock grants. Adjusted EBITDA is not a measure of net income (loss)

or cash flows as determined by GAAP. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flows from operating activities as determined in

accordance with GAAP or as an indicator of our operating performance or liquidity.

Investment Highlights

Strong Growth Profile with Increasing Focus on Oil / Liquids

High Quality Asset Base in Attractive Areas

Significant Multi-year Drilling Inventory

Strong Financial Position and Long-Term Institutional, Industry and Individual

Shareholders

Proven Management and Technical Team and Active Board of Directors

Low Cost Operations

Active Exploration Effort Using Science and Technology