The 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 September 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 September 30, 2018
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	939,294	$	26,382	$	—	$	(965,676	)	$	—
Third-party current assets	827		23,159		201,446		—			225,432
Net property and equipment	—		343,371		2,578,603		—			2,921,974
Investment in subsidiaries	1,346,446		—		183,297		(1,529,743		)	—
Third-party long-term assets	6,425		—		3,305		(2,934		)	6,796
Total assets	$	2,292,992	$	392,912	$	2,966,651	$	(2,498,353	)	$	3,154,202
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	—	$	965,676	$	(965,676	)	$	—
Third-party current liabilities	5,763		30,335		290,909		(256		)	326,751
Senior unsecured notes payable	740,063		—		—		—			740,063
Other third-party long-term liabilities	—		4,003		363,620		(2,678		)	364,945
Total equity attributable to Matador Resources Company	1,547,166		183,297		1,346,446		(1,529,743		)	1,547,166
Non-controlling interest in subsidiaries	—		175,277		—		—			175,277
Total liabilities and equity	$	2,292,992	$	392,912	$	2,966,651	$	(2,498,353	)	$	3,154,202



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 September 30, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	25,640		$	199,386		$	(17,848	)	$	207,178
Total expenses	1,184			10,708			145,281			(17,848		)	139,325
Operating (loss) income	(1,184		)	14,932			54,105			—			67,853
Net loss on asset sales and inventory impairment	—			—			(196		)	—			(196		)
Interest expense	(10,340		)	—			—			—			(10,340		)
Prepayment premium on extinguishment of debt	(31,226		)	—			—			—			(31,226		)
Other (expense) income	(6		)	8			(978		)	—			(976		)
Earnings in subsidiaries	60,550			—			7,619			(68,169		)	—
Income before income taxes	17,794			14,940			60,550			(68,169		)	25,115
Net income attributable to non-controlling interest in subsidiaries	—			(7,321		)	—			—			(7,321		)
Net income attributable to Matador Resources Company shareholders	$	17,794		$	7,619		$	60,550		$	(68,169	)	$	17,794



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 Nine Months Ended September 30, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	64,190		$	592,085		$	(46,550	)	$	609,725
Total expenses	3,596			27,102			410,369			(46,550		)	394,517
Operating (loss) income	(3,596		)	37,088			181,716			—			215,208
Net loss on asset sales and inventory impairment	—			—			(196		)	—			(196		)
Interest expense	(26,835		)	—			—			—			(26,835		)
Other (expense) income	—			19			(1,294		)	—			(1,275		)
Prepayment premium on extinguishment of debt	(31,226		)	—			—			—			(31,226		)
Earnings in subsidiaries	199,151			—			18,925			(218,076		)	—
Income before income taxes	137,494			37,107			199,151			(218,076		)	155,676
Net income attributable to non-controlling interest in subsidiaries	—			(18,182		)	—			—			(18,182		)
Net income attributable to Matador Resources Company shareholders	$	137,494		$	18,925		$	199,151		$	(218,076	)	$	137,494



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 Cash Flows For the Nine Months Ended September 30, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(361,016	)	$	12,318		$	768,016		$	—		$	419,318
Net cash used in investing activities	—			(120,836		)	(1,152,987		)	53,295			(1,220,528		)
Net cash provided by financing activities	361,155			109,400			334,476			(53,295		)	751,736
Increase (decrease) in cash and restricted cash	139			882			(50,495		)	—			(49,474		)
Cash and restricted cash at beginning of period	286			5,663			96,533			—			102,482
Cash and restricted cash at end of period	$	425		$	6,545		$	46,038		$	—		$	53,008



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			(75,749		)	(387,257		)	(133,880		)	(596,853		)
Net cash provided by (used in) financing activities	—			58,732			(1,495		)	133,880			191,117
(Decrease) increase in cash and restricted cash	(99,513		)	7,058			(90,765		)	—			(183,220		)
Cash and restricted cash at beginning of period	99,795			2,900			111,447			—			214,142
Cash and restricted cash at end of period	$	282		$	9,958		$	20,682		$	—		$	30,922