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 June 30, 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 June 30, 2018
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	811,982	$	8,235	$	—	$	(820,217	)	$	—
Third-party current assets	3,031		29,358		288,548		—			320,937
Net property and equipment	—		299,258		1,928,759		—			2,228,017
Investment in subsidiaries	1,285,896		—		162,418		(1,448,314		)	—
Third-party long-term assets	6,433		—		3,394		(2,934		)	6,893
Total assets	$	2,107,342	$	336,851	$	2,383,119	$	(2,271,465	)	$	2,555,847
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	—	$	820,217	$	(820,217	)	$	—
Third-party current liabilities	8,646		15,482		239,726		(256		)	263,598
Senior unsecured notes payable	574,164		—		—		—			574,164
Other third-party long-term liabilities	—		3,735		37,280		(2,678		)	38,337
Total equity attributable to Matador Resources Company	1,524,532		162,418		1,285,896		(1,448,314		)	1,524,532
Non-controlling interest in subsidiaries	—		155,216		—		—			155,216
Total liabilities and equity	$	2,107,342	$	336,851	$	2,383,119	$	(2,271,465	)	$	2,555,847



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 June 30, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	21,356		$	206,219		$	(16,208	)	$	211,367
Total expenses	1,178			9,466			142,938			(16,208		)	137,374
Operating (loss) income	(1,178		)	11,890			63,281			—			73,993
Interest expense	(8,004		)	—			—			—			(8,004		)
Other income (expense)	—			11			(363		)	—			(352		)
Earnings in subsidiaries	68,988			—			6,070			(75,058		)	—
Income before income taxes	59,806			11,901			68,988			(75,058		)	65,637
Net income attributable to non-controlling interest in subsidiaries	—			(5,831		)	—			—			(5,831		)
Net income attributable to Matador Resources Company shareholders	$	59,806		$	6,070		$	68,988		$	(75,058	)	$	59,806



Condensed Consolidating Statement of Operations For the Three Months Ended June 30, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminating Entries			Consolidated
Total revenues	$	—		$	11,274		$	127,198	$	(8,861	)	$	129,611
Total expenses	1,586			4,814			93,083		(8,861		)	90,622
Operating (loss) income	(1,586		)	6,460			34,115		—			38,989
Interest expense	(9,224		)	—			—		—			(9,224		)
Other (expense) income	(27		)	26			1,923		—			1,922
Earnings in subsidiaries	39,228			—			3,244		(42,472		)	—
Income before income taxes	28,391			6,486			39,282		(42,472		)	31,687
Total income tax (benefit) provision	(118		)	64			54		—			—
Net income attributable to non-controlling interest in subsidiaries	—			(3,178		)	—		—			(3,178		)
Net income attributable to Matador Resources Company shareholders	$	28,509		$	3,244		$	39,228	$	(42,472	)	$	28,509



Condensed Consolidating Statement of Operations For the Six Months Ended June 30, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	38,550		$	392,699		$	(28,702	)	$	402,547
Total expenses	2,412			16,394			265,088			(28,702		)	255,192
Operating (loss) income	(2,412		)	22,156			127,611			—			147,355
Interest expense	(16,495		)	—			—			—			(16,495		)
Other income (expense)	6			11			(316		)	—			(299		)
Earnings in subsidiaries	138,601			—			11,306			(149,907		)	—
Income before income taxes	119,700			22,167			138,601			(149,907		)	130,561
Net income attributable to non-controlling interest in subsidiaries	—			(10,861		)	—			—			(10,861		)
Net income attributable to Matador Resources Company shareholders	$	119,700		$	11,306		$	138,601		$	(149,907	)	$	119,700



Condensed Consolidating Statement of Operations For the Six Months Ended June 30, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminating Entries			Consolidated
Total revenues	$	—		$	20,937		$	259,846	$	(16,358	)	$	264,425
Total expenses	2,846			8,682			175,987		(16,358		)	171,157
Operating (loss) income	(2,846		)	12,255			83,859		—			93,268
Net gain on asset sales and inventory impairment	—			—			7		—			7
Interest expense	(17,679		)	—			—		—			(17,679		)
Other income	—			26			1,965		—			1,991
Earnings in subsidiaries	92,900			—			7,069		(99,969		)	—
Income before income taxes	72,375			12,281			92,900		(99,969		)	77,587
Total income tax (benefit) provision	(118		)	118			—		—			—
Net income attributable to non-controlling interest in subsidiaries	—			(5,094		)	—		—			(5,094		)
Net income attributable to Matador Resources Company shareholders	$	72,493		$	7,069		$	92,900	$	(99,969	)	$	72,493



Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(224,441	)	$	10,225		$	468,424		$	—		$	254,208
Net cash used in investing activities	—			(79,119		)	(454,478		)	40,035			(493,562		)
Net cash provided by financing activities	226,539			83,400			10,481			(40,035		)	280,385
Increase in cash and restricted cash	2,098			14,506			24,427			—			41,031
Cash and restricted cash at beginning of period	286			5,663			96,533			—			102,482
Cash and restricted cash at end of period	$	2,384		$	20,169		$	120,960		$	—		$	143,513



Condensed Consolidating Statement of Cash Flows For the Six Months Ended June 30, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(98,583	)	$	1,566		$	218,259		$	—		$	121,242
Net cash provided by (used in) investing activities	33			(38,362		)	(197,486		)	(133,880		)	(369,695		)
Net cash provided by (used in) financing activities	—			47,707			(769		)	133,880			180,818
(Decrease) increase in cash and restricted cash	(98,550		)	10,911			20,004			—			(67,635		)
Cash and restricted cash at beginning of period	99,795			2,900			111,447			—			214,142
Cash and restricted cash at end of period	$	1,245		$	13,811		$	131,451		$	—		$	146,507