 Investor
Presentation Exhibit 99.1
April 2012 |
 1
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
Annual Report on Form 10-K for the year ended December 31, 2011. 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. |
 2
Company Overview
Completed IPO of 14,883,334 shares (12,209,167 primary) including overallotment at
$12.00/share in March 2012 Exchange: Ticker
NYSE: MTDR
Shares Outstanding
55.27 million common shares
Share Price as of April 10, 2012
$11.10/share
Market Capitalization as of April 10, 2012
$613.5 million
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 |
 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
to
Tom
Brown,
Inc.
(1)
in
June
2003
for an
enterprise value of $388 million in an all-cash
transaction
Foran Oil & Matador Petroleum
3
Matador History
Matador Resources Company
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
Chesapeake transaction and strong science and
technical teams enabled the strategic transition to
the Eagle Ford play
Strong growth since 2008 and 2009
Daily
production
has
increased
over
4x
(2)
Proved
reserves
have
increased
9x
(3)
Adjusted
EBITDA
(4)
has
more
than
tripled
(5)
Predecessor Entities
Matador Today
(1) Tom Brown purchased by Encana in 2004
(2) Year ended December 31, 2011 compared to year
ended December 31, 2008 (3)
At December 31, 2011 as compared to
at December 31, 2008 (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 25
(5) Year ended December 31, 2011 compared to year
ended December 31, 2009 |
 4
Daily Production
(1)
54 MMcfe/d
Oil Production (% total)
3,400 Bbl/d (38%)
Proved Reserves @ 12/31/11
193.2 Bcfe
% Proved Developed
33.7%
% Oil
12% (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
(2)
234,720 acres
Net Acreage
(2)
196,532 acres
Identified Drilling
Locations
(2)
793 gross / 308 net
Eagle Ford / Austin Chalk
(2)
209 gross / 169 net
Haynesville / Cotton Valley
(2)
584 gross / 139 net
(1)
Estimated average daily production for the month of March 2012
(2)
As of December 31, 2011
Matador Resources Snapshot |
 5
Investment Highlights
Strong Growth Profile with Increasing Focus on Oil / Liquids
Oil production up almost five-fold in 2011 and projected to increase nearly 10x
in 2012 94%
(1)
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 and Cotton Valley assets all essentially HBP
Significant Multi-year Drilling Inventory
169
net
drilling
locations
identified
in
Eagle
Ford
(153)
and
Austin
Chalk
(16)
(2)
139
net
drilling
locations
identified
in
Haynesville
(103)
and
Cotton
Valley
(36)
(2)
Strong Financial Position and Long-Term Institutional, Industry and Individual
Shareholders Proven Management, 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 year ended December 31, 2011 was $0.47 per Mcfe, a 23% reduction since year
end 2010 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
(2)
As of December 31, 2011
(1)
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
|
 Leverage to Eagle Ford (Net Eagle Ford Acres / EV)
(Net Acres / $mm)
6
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 2012 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
2012E Capex
% Eagle Ford
48.8
48.8
44.8
37.9
33.8
31.0
26.5
26.2
23.6
19.5
16.7
9.9
9.6
6.3
3.8
MTDR
SFY
NFX
SM
FST
GDP
PVA
CRZO
ROSE
MHR
CHK
APA
PXD
PXP
APC
84%
48%
34%
N/A
N/A
N/A
78%
92%
N/A
N/A
62%
25%
73%
85%
5.2%
Reflects companies with greater than 50 Bcfe of proved reserves. Data sourced from public filings;
stock price data as of 04/10/2012 Note: |
 Highlights
7
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
Good reputation with land and mineral owners
80% of Eagle Ford acreage HBP or not burdened with lease expirations before
2013 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 |
 8
Eagle Ford and Austin Chalk Properties
Note: All acreage values are as of December 31, 2011
COMBO LIQUIDS /
GAS FAIRWAY
OIL FAIRWAY
EOG OPERATED, MTDR WI = 21%
GLASSCOCK (WINN) RANCH
8,891 gross / 8,891 net acres
EAGLE FORD WEST
13,329 gross / 10,465 net acres
EAGLE FORD EAST
EAGLE FORD ACREAGE TOTALS
Affleck #1H
JCM Jr. Minerals #1H
COMBO LIQUIDS /
GAS FAIRWAY
DRY GAS FAIRWAY
OIL FAIRWAY
Lewton #1H
Northcut #1H
Danysh #1H
Sickenius #1H
Matador Resources Acreage
Matador Producing Well
50,739 gross / 28,673 net acres
22,179 gross / 4,372 net acres
6,340 gross / 4,945 net acres
Martin Ranch #1H, #2H, #3H, #4H
#5H, #6H, #7H, #8H |
 9
Eagle Ford and Austin Chalk 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
94%
(5)
of 2012E capital expenditure
program focused on oil / liquids exploration
and development
Drilling locations are based on 120 acre
spacing
Anticipate oil production to constitute
approx. 35-40% of total production volume
and oil revenues to constitute approx. 75-
80% of total oil and natural gas revenues in
2012
Proved Reserves
@
12/31/11
4.7 MMBoe
% Proved Developed
37.9%
% Oil / Liquids
78.1%
Daily Oil Production
(1)
3,300+ Bbls/d
Gross Acres
(2)
50,739 acres
Net Acres
(2)
28,673 acres
Eagle Ford
(2)(3)
28,673 acres
Austin Chalk
(2)(3)
14,849 acres
Identified Drilling Locations
(2)
169.1 net
2012E Anticipated Drilling
27.6 net wells
2012E CapEx Budget
$268.5 million
% HBP or no short term expirations
(4)
80%
(1)
Estimated average production for the month of March 2012
(2)
As of December 31, 2011
(3)
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
(4)
80% of Eagle Ford acreage HBP or not burdened with lease expirations before 2013
(5)
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 |
 10
Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR
Acreage
OIL FAIRWAY
OIL FAIRWAY
DRY GAS FAIRWAY
DRY GAS FAIRWAY
San Antonio
Multi-Pay Fairway |
 11
Multi-Pay Fairway: Productive and Prospective Pay Zones
Historic Conventional Zones
Olmos-Navarro
Gas and oil fields in shallow section
Austin
Upper Austin horizontal drilling
Fractured reservoir
Buda
Primarily productive on structure
Fractured reservoir
Edwards
Productive on structure
“New”
Unconventional Zones
“Chalkleford”
(Eagle Ford / Austin Chalk transition zone)
Recent results in Pearsall Field from other operators are positive
Eagle Ford
Lower costs combined with better completion techniques have improved initial
results in northern oil window
Horizontal Buda Drilling
Exploratory play developing to exploit fracturing within the Buda both on and
off structure
Pearsall Shale
Exploratory play, initial test wells now being drilled
Austin Chalk
Eagle Ford
Del Rio
Edwards
Glen Rose
Rodessa
Pearsall
Sligo
Olmos
Navarro
ANCC
Georgetown
Buda |
 12
South Texas Multi-Pay Petroleum Systems:
Petroleum Charge focus towards Glasscock Ranch
Note: Information for Pearsall Oil Field sourced from public information
Redhawk
Area |
 13
Northwest Louisiana / East Texas Properties Overview
Proved Reserves @ 12/31/11
164.6 Bcfe
% Proved Developed
32.7%
% Natural Gas
99.8%
Daily Production
(1)
30.8 MMcfe/d
Gross Acres
(2)
28,899 acres
Net Acres
(2)
25,339 acres
Haynesville
(2)(3)
14,527 acres
Cotton Valley
(2)(3)
23,054 acres
Identified
Drilling
Locations
(2)
138.9 net wells
2012E Anticipated Drilling
1.5 net wells
2012E CapEx Budget
$13.5 million
% HBP
Over 90%
(1)
Estimated average daily production for the month of March 2012
(2)
As of December 31, 2011
(3) Some of the same leases cover the net acres shown for
Haynesville and Cotton Valley. Therefore, the sum for both formations is not
equal to the total net acreage Participated in 106 operated and
non-operated Haynesville wells at December 31, 2011
Haynesville proved reserves grew from zero at year
end 2008 to 164.6 Bcfe at December 31, 2011
LA Wildlife H#1 and Williams 17 H#1 operated wells
produced approximately 3.4 Bcfe (9.3 MMcfe/d) and
1.83 Bcfe (6.7 MMcfe/d) in their first 12 and 9
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 LA
Wildlife
H#1
Alt.
(HV)
Williams
17
H#1
(HV)
Tigner
Walker
H#1
Alt
(CV) |
 Highlights
14
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
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. Tigner Walker H#1
Alt (CV) LA Wildlife H#1 Alt. (HV)
Williams 17 H#1 (HV) |
 Liquids Focused CapEx in 2012E
Commentary
Oil Production Growth Over Time (Bbls/d)
15
Approximately 88% of 2012E capital
budget focused on Eagle Ford (84%)
and
Austin Chalk (4%)
Oil production up about five-fold
year-over-year at December 31,
2011
Oil production expected to increase
nearly 10x in 2012
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 expected to be
drilled in 2012
Q1 2012 oil production
approximately 200,000 barrels
From April 1, 2012 through April 10,
2012, oil production in excess of
4,000 bbls per day
Strong Growth Profile Focused on Liquids
(1) First quarter 2012, estimated oil production was approximately 2,200 bbls per
day (2) From April 1, 2012 through April 10, 2012, estimated oil production in
excess of 4,000 bbls per day +
2012 Anticipated Drilling
2012E CapEx
Gross Wells
Net Wells
(in millions)
Total
Total
%
Total
%
South Texas
Eagle Ford
28.0
25.6
86.8%
$257.2
82.2%
Austin Chalk
2.0
2.0
6.8%
$11.3
3.6%
Area Total
30.0
27.6
93.6%
$268.5
85.8%
NW LA / E Texas
Haynesville
25.0
1.5
5.1%
$13.5
4.3%
Cotton Valley
-
-
-
-
-
Area Total
25.0
1.5
5.1%
$13.5
4.3%
SW WY, NE UT, SE ID
1.0
0.4
1.3%
$2.5
0.8%
Other
-
-
-
$28.5
9.1%
Total
56.0
29.5
100.0%
$313.0
100.0%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2010
2011
Q1 2012
April 2012
91
422
2,200
4,000
(2)
(1) |
 Diversified Investor Composition
16
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% of shares outside the public float locked-up for 180 days following
February 1, 2012 Management
13%
of shares
(1)
Public Float
27%
of shares
(2)
Legacy Shareholders
60%
of shares
(1)
(1) Approximate ownership at the time of the IPO
(2) Public Float percentage also includes shares purchased by Management and Legacy
Shareholders on or after the IPO |
 Exploration and Development
Dedicating
approximately
94%
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
to
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 Business Strategy to Deliver Growth and Value
17
(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
|
 18
Matador Today
Gross
Acres
(1)(2)
144,368 acres
Net
Acres
(1)(2)
135,862 acres
2012E CapEx Budget
$2.5 million
Matador Today
Gross Acres
(1)(3)
10,714 acres
Net Acres
(1)(3)
6,658 acres
Wyoming, Utah and Idaho (Meade Peak Shale)
Option Value in Large Unevaluated Acreage Positions
Initial test well drilled 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 $20 million in 2012 to acquire acreage in oil-
focused opportunities
Southeast New Mexico / West Texas
(1)
As of December 31, 2011
(2)
While we and our partners continue to evaluate the results from the initial test
well and plan for its completion and further testing, we expect a significant portion of our acreage will be allowed to expire during 2012
(3)
We believe approximately 8,000 gross and 4,000 net acres are no longer prospective,
and we plan to let them expire without drilling during 2012 |
 19
Financial Performance: Proven Management Team
Note: CAGR stands for compounded annual growth rate
(2) Includes realized gain on derivatives
Oil and Natural Gas Revenues
($ in mm)
Total
Realized
Revenues
(2)
($ in mm)
Adjusted
EBITDA
(1)
($ in mm)
Average Daily Production
(MMcfe/d)
CAGR: 75.7%
CAGR: 87.8%
CAGR: 66.6%
CAGR: 81.2%
(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 25
13.7
23.6
42.3
0.0
10.0
20.0
30.0
40.0
50.0
2009
2010
2011
$19.0
$34.0
$67.0
$0.0
$40.0
$80.0
2009
2010
2011
$15.2
$23.6
$49.9
$0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
2009
2010
2011
$26.7
$39.3
$74.1
$0.0
$20.0
$40.0
$60.0
$80.0
2009
2010
2011 |
 20
Selected Historical Financials
(Revenues and Adjusted EBITDA in millions)
Year Ended December 31,
2009
2010
2011
Production Summary
Oil Production (MBbls)
30.0
33.0
154.0
Gas Production (Bcf)
4.8
8.4
14.5
Total Annual Production (Bcfe)
5.0
8.6
15.4
Realized Prices (Including hedges)
Oil ($/ Bbl)
$57.72
$76.39
$93.80
Natural Gas ($/ Mcf)
$5.17
$4.38
$4.11
Revenues
Oil and Gas Production Revenues
$19.0
$34.0
$67.0
Realized Oil & Gas Hedging Gain / (Loss)
7.6
5.3
7.1
Unrealized Oil & Gas Hedging Gain / (Loss)
(2.4)
3.1
5.1
Total Revenues
$24.3
$42.5
$79.2
Operating Expenses ($/ Mcfe)
Lease Operating
$0.94
$0.61
$0.47
Production Taxes and Marketing
0.22
0.23
0.41
General and Administrative
1.42
1.13
0.87
Total Expenses
$2.58
$1.97
$1.75
Adjusted EBITDA
(1)
$15.2
$23.6
$49.9
(1)
Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and
a reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see slide 25 |
 21
Hedging Profile
Oil Hedges
2012
2013
Total Volume Hedged by Ceiling (Bbl)
1,180,000
1,260,000
Weighted Average Price ($ / 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 |
 22
Financial Flexibility
Plan to fund 2012 capital budget with a portion of IPO net proceeds, anticipated
cash flows from operations and available borrowings under credit
facility Intend
to
seek
redeterminations of borrowing base as a result of any increases in oil and natural
gas proved reserves during the year
May, November and one additional redetermination available in 2012
Have met with banks to discuss expanding the bank group and to confirm expectations
on future borrowing base increases
Borrowing base of $125 million, based on February 2012 redetermination
20% of current market capitalization
Oil production base expected to increase 10x in 2012
$30 million in debt outstanding as of April 12, 2012
(1) As of April 10, 2012 close
(1) |
 23
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
|
 Appendix |
 25
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. 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, accretion of asset
retirement obligations, 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.
Year Ended December 31,
(In thousands)
2008
2009
2010
2011
Unaudited Adjusted EBITDA reconciliation to Net Income (Loss):
Net income (loss)
$103,878
($14,425)
$6,377
($10,309)
Interest expense
-
-
3
683
Total income tax provision (benefit)
20,023
(9,925)
3,521
(5,521)
Depletion, depreciation and amortization
12,127
10,743
15,596
31,754
Accretion of asset retirement obligations
92
137
155
209
Full-cost ceiling impairment
22,195
25,244
-
35,673
Unrealized (gain) loss on derivatives
(3,592)
2,375
(3,139)
(5,138)
Stock option and grant expense
605
622
824
2,362
Restricted stock grants
60
34
74
44
Net (gain)/loss on asset sales and inventory impairment
(136,977)
379
224
154
Adjusted EBITDA
$18,411
$15,184
$23,635
$49,911
Year Ended December 31,
(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
$61,868
Net change in operating assets and liabilities
(17,888)
15,717
(2,230)
(12,594)
Interest expense
-
-
3
683
Current income tax provision (benefit)
10,448
(2,324)
(1,411)
(46)
Adjusted EBITDA
$18,411
$15,184
$23,635
$49,911 |
 Board
of
Directors
and
Special
Board
Advisors
–
Expertise
and
Stewardship
26
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 R. Scott, Jr.
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 |
 Proven
Management Team – Experienced Leadership
27
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., Diamond
Shamrock
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 |