Matador’s Notes are jointly and severally guaranteed by certain subsidiaries of Matador (the “Guarantor Subsidiaries”) on a full and unconditional basis (except for customary release provisions). At March 31, 2018, the Guarantor Subsidiaries were 100% owned by Matador. Matador is a parent holding company and has no independent assets or operations, and there are no significant restrictions on the ability of Matador to obtain funds from the Guarantor Subsidiaries by dividend or loan. San Mateo and its subsidiaries (the “Non-Guarantor Subsidiaries”) are not guarantors of the Notes.

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 March 31, 2018
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	601,346	$	487	$	—	$	(601,833	)	$	—
Third-party current assets	292		30,637		176,049		—			206,978
Net property and equipment	—		267,651		1,794,083		—			2,061,734
Investment in subsidiaries	1,216,908		—		136,713		(1,353,621		)	—
Third-party long-term assets	6,444		—		3,504		(2,955		)	6,993
Total assets	$	1,824,990	$	298,775	$	2,110,349	$	(1,958,409	)	$	2,275,705
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	—	$	601,833	$	(601,833	)	$	—
Third-party current liabilities	18,626		28,113		260,027		(274		)	306,492
Senior unsecured notes payable	574,118		—		—		—			574,118
Other third-party long-term liabilities	—		3,429		31,581		(2,681		)	32,329
Total equity attributable to Matador Resources Company	1,232,246		136,713		1,216,908		(1,353,621		)	1,232,246
Non-controlling interest in subsidiaries	—		130,520		—		—			130,520
Total liabilities and equity	$	1,824,990	$	298,775	$	2,110,349	$	(1,958,409	)	$	2,275,705



Condensed Consolidating Balance Sheet December 31, 2017
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	585,109	$	2,912	$	—	$	(588,021	)	$	—
Third-party current assets	2,240		9,334		245,596		—			257,170
Net property and equipment	—		223,178		1,658,278		—			1,881,456
Investment in subsidiaries	1,147,295		—		111,077		(1,258,372		)	—
Third-party long-term assets	6,425		—		3,642		(3,003		)	7,064
Total assets	$	1,741,069	$	235,424	$	2,018,593	$	(1,849,396	)	$	2,145,690
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	—	$	588,021	$	(588,021	)	$	—
Third-party current liabilities	8,847		19,891		254,142		(274		)	282,606
Senior unsecured notes payable	574,073		—		—		—			574,073
Other third-party long-term liabilities	1,593		3,466		29,135		(2,729		)	31,465
Total equity attributable to Matador Resources Company	1,156,556		111,077		1,147,295		(1,258,372		)	1,156,556
Non-controlling interest in subsidiaries	—		100,990		—		—			100,990
Total liabilities and equity	$	1,741,069	$	235,424	$	2,018,593	$	(1,849,396	)	$	2,145,690



Condensed Consolidating Statement of Operations For the Three Months Ended March 31, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminating Entries			Consolidated
Total revenues	$	—		$	17,194		$	186,480	$	(12,494	)	$	191,180
Total expenses	1,234			6,928			122,150		(12,494		)	117,818
Operating (loss) income	(1,234		)	10,266			64,330		—			73,362
Interest expense	(8,491		)	—			—		—			(8,491		)
Other income	6			—			47		—			53
Earnings in subsidiaries	69,613			—			5,236		(74,849		)	—
Income before income taxes	59,894			10,266			69,613		(74,849		)	64,924
Net income attributable to non-controlling interest in subsidiaries	—			(5,030		)	—		—			(5,030		)
Net income attributable to Matador Resources Company shareholders	$	59,894		$	5,236		$	69,613	$	(74,849	)	$	59,894



Condensed Consolidating Statement of Operations For the Three Months Ended March 31, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	9,663		$	132,648		$	(7,497	)	$	134,814
Total expenses	1,260			3,868			82,905			(7,497		)	80,536
Operating (loss) income	(1,260		)	5,795			49,743			—			54,278
Net gain on asset sales and inventory impairment	—			—			7			—			7
Interest expense	(8,455		)	—			—			—			(8,455		)
Other income	27			—			43			—			70
Earnings in subsidiaries	53,672			—			3,825			(57,497		)	—
Income before income taxes	43,984			5,795			53,618			(57,497		)	45,900
Total income tax provision (benefit)	—			54			(54		)	—			—
Net income attributable to non-controlling interest in subsidiaries	—			(1,916		)	—			—			(1,916		)
Net income attributable to Matador Resources Company shareholders	$	43,984		$	3,825		$	53,672		$	(57,497	)	$	43,984



Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(144	)	$	10,385		$	125,908		$	—		$	136,149
Net cash used in investing activities	—			(36,831		)	(204,323		)	20,400			(220,754		)
Net cash provided by financing activities	—			44,900			10,406			(20,400		)	34,906
(Decrease) increase in cash and restricted cash	(144		)	18,454			(68,009		)	—			(49,699		)
Cash and restricted cash at beginning of period	286			5,663			96,533			—			102,482
Cash and restricted cash at end of period	$	142		$	24,117		$	28,524		$	—		$	52,783



Condensed Consolidating Statement of Cash Flows For the Three Months Ended March 31, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(99,235	)	$	(1,064	)	$	161,608		$	—		$	61,309
Net cash provided by (used in) investing activities	29			(19,147		)	(63,816		)	(142,040		)	(224,974		)
Net cash provided by financing activities	—			31,707			85			142,040			173,832
(Decrease) increase in cash and restricted cash	(99,206		)	11,496			97,877			—			10,167
Cash and restricted cash at beginning of period	99,795			2,900			111,447			—			214,142
Cash and restricted cash at end of period	$	589		$	14,396		$	209,324		$	—		$	224,309