 Investor Presentation
May 2012
Exhibit 99.1 |
 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
for
Matador
to
execute
its
business
plan,
including
the
success
of
its
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
Matador
to
execute
its
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
55.51 million common shares
Share Price as of May 11, 2012
$10.62/share
Market Capitalization as of May 11, 2012
$589.5 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 |
 Matador
Oil Facts 3
94% of 2012E capital expenditure program focused on oil and
liquids exploration and development in south Texas
First quarter 2012 oil production of approximately 200,000 barrels is
more than all oil produced in 2011 and 2010 combined
Anticipate oil production to constitute 35% to 40% of total
production volume and oil revenues to constitute 75% to 80% of
total oil and natural gas revenues in 2012
Oil production has increased ten-fold year-over-year at March 31,
2012 and is expected to increase approximately ten-fold during 2012
|
 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 $388 million in an all-
cash transaction
Foran Oil & Matador Petroleum
4
Matador History
Matador Resources Company
Founded by Joe Foran in 2003
Attracted start-up capital from long-time
shareholders; diverse and unique shareholder
group including over 400 friends and neighbors
Proven management, technical team and
Board of Directors
Grown entirely through drill bit, with focus on
unconventional reservoir plays
Chesapeake transaction and strong science
and technical teams enabled the strategic
transition to the Eagle Ford play
Strong growth since 2008 and 2009
Daily
production
has
increased
over
4x
(2)
Proved
reserves
have
increased
9x
(3)
Adjusted
EBITDA
(4)
has
more
than
tripled
(5)
Predecessor Entities
Matador Today |
 A Year
of Growth 5
(1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a
reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see slide 19 |
 6
Financial Performance: Proven Management Team
Oil and Natural Gas Revenues
($ in mm)
Total Realized Revenues
(2)
($ in mm)
Adjusted EBITDA
(1)
($ in mm)
Average Daily Production
(MMcfe/d)
20.5
37.8
48.1
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
1Q10
1Q11
1Q12
$9.5
$15.5
$32.2
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
1Q10
1Q11
1Q12
$9.2
$13.7
$29.2
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
1Q10
1Q11
1Q12
$6.1
$10.1
$21.3
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
1Q10
1Q11
1Q12 |
 Liquids Focused CapEx in 2012E
Commentary
Oil Production Growth Over Time (Bbl/d)
7
Approximately 88% of 2012E
capital budget focused on
Eagle Ford (84%) and
Austin Chalk (4%)
Oil production up over ten-fold
year-over-year at March 31,
2012
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
Strong Growth Profile Focused on Liquids
91
422
2,200
0
500
1000
1500
2000
2500
2010
2011
1Q 2012 |
 Leverage to Eagle Ford (Net Eagle Ford Acres / EV)
(Net Acres / $mm)
8
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 |
 9
Eagle Ford and Austin Chalk Properties
Note: All acreage values are as of December 31, 2011
22,179 gross / 4,372 net acres
EAGLE FORD EAST
8,891 gross / 8,891 net acres
13,329 gross / 10,465 net acres |
 Highlights
10
Eagle Ford Properties are in Good Neighborhoods:
MTDR acreage in counties
with robust transaction activity
–
“good neighborhoods”
Transaction values ranging
from $10,000 to $25,000 /
acre
Our Eagle Ford position has
grown to almost 30,000 net
acres
Acreage in both the eastern
and western areas of the play
Approximately 85% of
acreage in prospective oil and
liquids windows
Acreage offers potential for
Austin Chalk, Buda, Pearsall
and other formations
Note: Information for precedent transactions based on public filings
Good reputation with land and mineral owners
80% of Eagle Ford acreage HBP or not burdened with lease expirations before
2013 |
 11
Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR
Acreage |
 12
South Texas Multi-Pay Petroleum Systems:
Petroleum Charge focus towards Glasscock Ranch
Note: Information for Pearsall Oil Field sourced from public information
|
 13
Multi-Pay Fairway: Productive and Prospective Pay Zones
Historic Conventional Zones
Olmos-Navarro
–
Gas
and
oil
fields
in
shallow
section
Austin
–
Upper
Austin
horizontal
drilling
–
Fractured
reservoir
Buda
–
Primarily
productive
on
structure
–
Fractured
reservoir
Edwards
–
Productive
on
structure
“New”
Unconventional Zones
“Chalkleford”
(Eagle Ford / Austin Chalk transition zone)
–
Recent results in Pearsall Field from other operators are positive
Eagle Ford
–
Lower costs combined with better completion techniques have improved initial
results in northern oil window
Horizontal Buda Drilling
–
Exploratory play developing to exploit fracturing within the Buda both on and
off structure
Pearsall Shale
–
Exploratory play, initial test wells now being drilled
Austin Chalk
Eagle Ford
Buda
Georgetown
Del Rio
Edwards
Glen Rose
Rodessa
Pearsall
Sligo
Olmos
Navarro
ANCC |
 14
Hedging Profile
Oil Hedges
2012
2013
Total Volume Hedged by Ceiling (Bbl)
1,180,000
1,260,000
Weighted Average Price ($ / 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 |
 15
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 proved reserves during the year
-
Two redeterminations 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
-
21%
of
current
market
capitalization
(1)
-
Oil production base expected to increase nearly ten-fold in 2012
$30 million in debt outstanding as of May 15, 2012
(1)
As
of
May
11,
2012
close
Intend to seek redeterminations of borrowing base as a result of any increases in oil and natural gas |
 Liquids Focused CapEx in 2012E
Commentary
Oil Production Growth Over Time (Bbl/d)
16
Approximately 88% of 2012E
capital budget focused on
Eagle Ford (84%) and
Austin Chalk (4%)
Oil production up over ten-fold
year-over-year at March 31,
2012
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
Strong Growth Profile Focused on Liquids
91
422
2,200
0
500
1000
1500
2000
2500
2010
2011
1Q 2012 |
 17
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 |
 19
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 expense. 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
2010
2011
2012
Unaudited Adjusted EBITDA reconciliation to Net Income (Loss):
Net income (loss)
$103,878
($14,425)
$6,377
($10,309)
$5,676
($27,596)
$3,801
Interest expense
-
-
3
683
-
106
308
Total income tax provision (benefit)
20,023
(9,925)
3,521
(5,521)
2,975
(6,906)
3,064
Depletion, depreciation and amortization
12,127
10,743
15,596
31,754
3,362
7,111
11,205
Accretion of asset retirement obligations
92
137
155
209
38
39
53
Full-cost ceiling impairment
22,195
25,244
-
35,673
-
35,673
-
Unrealized (gain) loss on derivatives
(3,592)
2,375
(3,139)
(5,138)
(6,093)
1,668
3,270
Stock option and grant expense
605
622
824
2,362
180
42
(374)
Restricted stock grants
60
34
74
44
6
11
11
Net (gain) loss on asset sales and inventory impairment
(136,977)
379
224
154
-
-
-
Adjusted EBITDA
$18,411
$15,184
$23,635
$49,911
$6,142
$10,148
$21,338
Year Ended December 31,
(In thousands)
2008
2009
2010
2011
2010
2011
2012
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
$9,101
$12,732
$5,110
Net change in operating assets and liabilities
(17,888)
15,717
(2,230)
(12,594)
(2,959)
(2,690)
15,920
Interest expense
-
-
3
683
-
106
308
Current income tax provision (benefit)
10,448
(2,324)
(1,411)
(46)
-
-
-
Adjusted EBITDA
$18,411
$15,184
$23,635
$49,911
$6,142
$10,148
$21,338
Three Months Ended March 31,
Three Months Ended March 31, |
 Board
of Directors and Special Board Advisors – Expertise and Stewardship
20
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, Jr.
Special Board Advisor
-
Retired President, DeGolyer and MacNaughton (Worldwide
Petroleum Consultants)
Oil & Gas Executive
Management |
 Proven
Management Team – Experienced Leadership
21
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 |
 22
Daily Production
(1)
48.1 MMcfe/d
Oil Production (% total)
2,200 Bbl/d (27%)
Proved Reserves @ 3/31/12
203.1 Bcfe
% Proved Developed
36%
% Oil
17% (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)
Average daily production for the three months ended March 31, 2012
(2)
As of December 31, 2011
Matador Resources Snapshot |
 23
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 and 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 @ 3/31/12
6.8 MMBoe
% Proved Developed
46.6%
% Oil / Liquids
81.9%
Daily Oil Production
(1)
2,129 Bbl/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% |
 24
Northwest Louisiana / East Texas Properties Overview
Proved Reserves @ 3/31/12
161.4 Bcfe
% Proved Developed
36.4%
% Natural Gas
99.8%
Daily Production
(1)
32.6 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%
Participated in 118 operated and non-operated
Haynesville wells at March 31, 2012
Haynesville proved reserves grew from zero at year
end 2008 to 148.2 Bcfe at March 31, 2012
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 |
 Highlights
25
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 |
 Business Strategy to Deliver Growth and Value
26
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
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 |
 27
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 $20 million in 2012 to acquire acreage in oil-
focused opportunities
Southeast New Mexico / West Texas
(1)
As of December 31, 2011
(2)
While we and our partners continue to evaluate the results from the initial test
well and plan for its completion and further testing, we expect a significant portion of our acreage will be allowed to expire during 2012
(3)
We believe approximately 8,000 gross and 4,000 net acres are no longer prospective,
and we plan to let them expire without drilling during 2012 |
 28
Selected Historical Financials
(Revenues and Adjusted EBITDA in millions)
Year Ended December 31,
Three Months Ended March 31,
2009
2010
2011
2011
2012
Production Summary
Oil Production (MBbls)
30.0
33.0
154.0
19.0
200.0
Gas Production (Bcf)
4.8
8.4
14.5
3.3
3.2
Total Production (Bcfe)
5.0
8.6
15.4
3.4
4.4
Realized Prices (Including hedges)
Oil ($/ Bbl)
$57.72
$76.39
$93.80
$89.11
$107.57
Natural Gas ($/ Mcf)
$5.17
$4.38
$4.11
$4.22
$3.36
Revenues
Oil and Gas Production Revenues
$19.0
$34.0
$67.0
$13.7
$29.2
Realized Oil & Gas Hedging Gain / (Loss)
7.6
5.3
7.1
1.8
3.1
Unrealized Oil & Gas Hedging Gain / (Loss)
(2.4)
3.1
5.1
(1.7)
(3.3)
Total Revenues
$24.3
$42.5
$79.2
$13.9
$29.0
Operating Expenses ($/ Mcfe)
Lease Operating
$0.94
$0.61
$0.47
$0.47
$1.06
Production Taxes and Marketing
0.22
0.23
0.41
0.38
0.49
General and Administrative
1.42
1.13
0.87
0.77
0.87
Total Expenses
$2.58
$1.97
$1.75
$1.62
$2.42
Adjusted EBITDA
(1)
$15.2
$23.6
$49.9
$10.1
$21.3 |
 29
Investment Highlights
Strong
Growth
Profile
with
Increasing
Focus
on
Oil
/
Liquids
Oil
production
up
almost
five-fold
in
2011
and
projected
to
increase
nearly
ten-fold
in
2012
94%
(1)
of
2012E
capital
expenditure
program
focused
on
oil
and
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
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 |
 Diversified Investor Composition
30
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 (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 |
 Matador Resources Company (“MTDR”)
31 |