Debt (Tables)

9 Months Ended

Sep. 30, 2017

The following presents condensed consolidating financial information of the issuer (Matador), the Non-Guarantor Subsidiaries, the Guarantor Subsidiaries and all entities on a consolidated basis (in thousands). Elimination entries are necessary to combine the entities. This financial information is presented in accordance with the requirements of Rule 3-10 of Regulation S-X. The following financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities.



Condensed Consolidating Balance Sheet September 30, 2017
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	392,082	$	—	$	2,028	$	(394,110	)	$	—
Third-party current assets	635		11,676		138,034		—			150,345
Net property and equipment	—		185,464		1,511,703		—			1,697,167
Investment in subsidiaries	1,107,280		—		90,993		(1,198,273		)	—
Third-party long-term assets	—		—		1,025		—			1,025
Total assets	$	1,499,997	$	197,140	$	1,743,783	$	(1,592,383	)	$	1,848,537
LIABILITIES AND EQUITY
Intercompany payable	$	1,314	$	714	$	392,082	$	(394,110	)	$	—
Third-party current liabilities	18,453		18,191		215,451		—			252,095
Senior unsecured notes payable	574,027		—		—		—			574,027
Other third-party long-term liabilities	—		648		28,970		—			29,618
Total equity attributable to Matador Resources Company	906,203		90,993		1,107,280		(1,198,273		)	906,203
Non-controlling interest in subsidiaries	—		86,594		—		—			86,594
Total liabilities and equity	$	1,499,997	$	197,140	$	1,743,783	$	(1,592,383	)	$	1,848,537



Condensed Consolidating Balance Sheet December 31, 2016
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	316,791	$	3,571	$	12,091	$	(332,453	)	$	—
Third-party current assets	101,102		4,242		173,838		—			279,182
Net property and equipment	33		113,107		1,071,385		—			1,184,525
Investment in subsidiaries	856,762		—		90,275		(947,037		)	—
Third-party long-term assets	—		—		958		—			958
Total assets	$	1,274,688	$	120,920	$	1,348,547	$	(1,279,490	)	$	1,464,665
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	12,091	$	320,362	$	(332,453	)	$	—
Third-party current liabilities	9,265		16,632		143,608		—			169,505
Senior unsecured notes payable	573,924		—		—		—			573,924
Other third-party long-term liabilities	1,374		602		27,815		—			29,791
Total equity attributable to Matador Resources Company	690,125		90,275		856,762		(947,037		)	690,125
Non-controlling interest in subsidiaries	—		1,320		—		—			1,320
Total liabilities and equity	$	1,274,688	$	120,920	$	1,348,547	$	(1,279,490	)	$	1,464,665

Condensed Income Statement



Condensed Consolidating Statement of Operations For the Three Months Ended September 30, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	11,242		$	122,675		$	(7,638	)	$	126,279
Total expenses	1,175			5,253			100,940			(7,638		)	99,730
Operating (loss) income	(1,175		)	5,989			21,735			—			26,549
Net gain on asset sales and inventory impairment	—			—			16			—			16
Interest expense	(8,550		)	—			—			—			(8,550		)
Other income	27			11			(74		)	—			(36		)
Earnings in subsidiaries	24,674			—			2,997			(27,671		)	—
Income before income taxes	14,976			6,000			24,674			(27,671		)	17,979
Total income tax (benefit) provision	(63		)	63			—			—			—
Net income attributable to non-controlling interest in subsidiaries	—			(2,940		)	—			—			(2,940		)
Net income attributable to Matador Resources Company shareholders	$	15,039		$	2,997		$	24,674		$	(27,671	)	$	15,039



Condensed Consolidating Statement of Operations For the Three Months Ended September 30, 2016
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	4,993		$	86,965		$	(3,225	)	$	88,733
Total expenses	1,018			2,043			72,043			(3,225		)	71,879
Operating (loss) income	(1,018		)	2,950			14,922			—			16,854
Net gain on asset sales and inventory impairment	—			—			1,073			—			1,073
Interest expense	(6,880		)	—			—			—			(6,880		)
Other expense	—			—			(141		)	—			(141		)
Income earnings in subsidiaries	19,800			—			2,805			(22,605		)	—
Income before income taxes	11,902			2,950			18,659			(22,605		)	10,906
Total income tax (benefit) provision	(29		)	29			(1,141		)	—			(1,141		)
Net income attributable to non-controlling interest in subsidiaries	—			(116		)	—			—			(116		)
Net income attributable to Matador Resources Company shareholders	$	11,931		$	2,805		$	19,800		$	(22,605	)	$	11,931



Condensed Consolidating Statement of Operations For the Nine Months Ended September 30, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminating Entries			Consolidated
Total revenues	$	—		$	32,179		$	382,520	$	(23,996	)	$	390,703
Total expenses	4,021			13,935			276,927		(23,996		)	270,887
Operating (loss) income	(4,021		)	18,244			105,593		—			119,816
Net gain on asset sales and inventory impairment	—			—			23		—			23
Interest expense	(26,229		)	—			—		—			(26,229		)
Other income	27			37			1,892		—			1,956
Earnings in subsidiaries	117,574			—			10,066		(127,640		)	—
Income before income taxes	87,351			18,281			117,574		(127,640		)	95,566
Total income tax (benefit) provision	(181		)	181			—		—			—
Net income attributable to non-controlling interest in subsidiaries	—			(8,034		)	—		—			(8,034		)
Net income attributable to Matador Resources Company shareholders	$	87,532		$	10,066		$	117,574	$	(127,640	)	$	87,532



Condensed Consolidating Statement of Operations For the Nine Months Ended September 30, 2016
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	9,520		$	175,789		$	(5,860	)	$	179,449
Total expenses	3,985			4,420			362,290			(5,860		)	364,835
Operating (loss) income	(3,985		)	5,100			(186,501		)	—			(185,386		)
Net gain on asset sales and inventory impairment	—			—			3,140			—			3,140
Interest expense	(20,244		)	—			—			—			(20,244		)
Other expense	—			—			(17		)	—			(17		)
(Loss) earnings in subsidiaries	(177,400		)	—			4,837			172,563			—
(Loss) income before income taxes	(201,629		)	5,100			(178,541		)	172,563			(202,507		)
Total income tax (benefit) provision	(54		)	54			(1,141		)	—			(1,141		)
Net income attributable to non-controlling interest in subsidiaries	—			(209		)	—			—			(209		)
Net (loss) income attributable to Matador Resources Company shareholders	$	(201,575	)	$	4,837		$	(177,400	)	$	172,563		$	(201,575	)

Condensed Cash Flow Statement



Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(99,546	)	$	24,075		$	297,987		$	—		$	222,516
Net cash provided by (used in) investing activities	33			(85,114		)	(387,378		)	(133,880		)	(606,339		)
Net cash provided by (used in) financing activities	—			58,732			(1,495		)	133,880			191,117
(Decrease) increase in cash	(99,513		)	(2,307		)	(90,886		)	—			(192,706		)
Cash at beginning of period	99,795			2,307			110,782			—			212,884
Cash at end of period	$	282		$	—		$	19,896		$	—		$	20,178



Condensed Consolidating Statement of Cash Flows For the Nine Months Ended September 30, 2016
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(28,752	)	$	(2,726	)	$	127,940		$	—		$	96,462
Net cash used in investing activities	(112,720		)	(51,904		)	(300,201		)	167,229			(297,596		)
Net cash provided by financing activities	141,520			54,510			176,167			(167,229		)	204,968
Increase (decrease) in cash	48			(120		)	3,906			—			3,834
Cash at beginning of period	80			186			16,466			—			16,732
Cash at end of period	$	128		$	66		$	20,372		$	—		$	20,566