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 December 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 December 31, 2018
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	1,244,405	$	29,816	$	—	$	(1,274,221	)	$	—
Current assets	4,109		34,027		267,549		—			305,685
Net property and equipment	—		379,052		2,743,812		—			3,122,864
Investment in subsidiaries	1,490,401		—		95,346		(1,585,747		)	—
Long-term assets	23,897		1,479		11,095		(9,502		)	26,969
Total assets	$	2,762,812	$	444,374	$	3,117,802	$	(2,869,470	)	$	3,455,518
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	—	$	1,274,221	$	(1,274,221	)	$	—
Current liabilities	22,874		27,988		279,884		(724		)	330,022
Senior unsecured notes payable	1,037,837		—		—					1,037,837
Other long-term liabilities	13,221		230,263		73,296		(8,778		)	308,002
Total equity attributable to Matador Resources Company	1,688,880		95,346		1,490,401		(1,585,747		)	1,688,880
Non-controlling interest in subsidiaries	—		90,777		—		—			90,777
Total liabilities and equity	$	2,762,812	$	444,374	$	3,117,802	$	(2,869,470	)	$	3,455,518



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 Year Ended December 31, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	98,665		$	865,725		$	(64,791	)	$	899,599
Total expenses	4,935			46,236			549,948			(64,791		)	536,328
Operating (loss) income	(4,935		)	52,429			315,777			—			363,271
Net loss on asset sales and inventory impairment	—			—			(196		)	—			(196		)
Interest expense	(40,994		)	(333		)	—			—			(41,327		)
Prepayment penalty on extinguishment of debt	(31,226		)	—			—			—			(31,226		)
Other income	565			62			924			—			1,551
Earnings in subsidiaries	343,106			—			26,601			(369,707		)	—
Income before income taxes	266,516			52,158			343,106			(369,707		)	292,073
Total income tax benefit	(7,691		)	—			—			—			(7,691		)
Net income attributable to non-controlling interest in subsidiaries	—			(25,557		)	—			—			(25,557		)
Net income attributable to Matador Resources Company shareholders	$	274,207		$	26,601		$	343,106		$	(369,707	)	$	274,207



Condensed Consolidating Statement of Operations For the Year Ended December 31, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries		Eliminating Entries			Consolidated
Total revenues	$	—		$	47,883		$	531,508	$	(35,115	)	$	544,276
Total expenses	5,610			21,260			391,680		(35,115		)	383,435
Operating (loss) income	(5,610		)	26,623			139,828		—			160,841
Net gain on asset sales and inventory impairment	—			—			23		—			23
Interest expense	(34,565		)	—			—		—			(34,565		)
Other income	27			37			3,487		—			3,551
Earnings in subsidiaries	157,589			—			14,251		(171,840		)	—
Income before income taxes	117,441			26,660			157,589		(171,840		)	129,850
Total income tax (benefit) provision	(8,426		)	269			—		—			(8,157		)
Net income attributable to non-controlling interest in subsidiaries	—			(12,140		)	—		—			(12,140		)
Net income attributable to Matador Resources Company shareholders	$	125,867		$	14,251		$	157,589	$	(171,840	)	$	125,867



Condensed Consolidating Statement of Operations For the Year Ended December 31, 2016
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	17,302		$	257,828		$	(10,708	)	$	264,422
Total expenses	5,319			7,031			439,947			(10,708		)	441,589
Operating (loss) income	(5,319		)	10,271			(182,119		)	—			(177,167		)
Net gain on asset sales and inventory impairment	—			—			107,277			—			107,277
Interest expense	(28,199		)	—			—			—			(28,199		)
Other expense	—			—			(4		)	—			(4		)
(Loss) earnings in subsidiaries	(64,349		)	—			9,810			54,539			—
(Loss) income before income taxes	(97,867		)	10,271			(65,036		)	54,539			(98,093		)
Total income tax (benefit) provision	(446		)	97			(687		)	—			(1,036		)
Net income attributable to non-controlling interest in subsidiaries	—			(364		)	—			—			(364		)
Net (loss) income attributable to Matador Resources Company shareholders	$	(97,421	)	$	9,810		$	(64,349	)	$	54,539		$	(97,421	)



Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2018
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(657,860	)	$	35,119		$	1,231,264		$	—		$	608,523
Net cash used in investing activities	—			(162,147		)	(1,310,776		)	(42,330		)	(1,515,253		)
Net cash provided by financing activities	658,030			140,205			47,667			42,330			888,232
Increase (decrease) in cash and restricted cash	170			13,177			(31,845		)	—			(18,498		)
Cash and restricted cash at beginning of year	286			5,663			96,533			—			102,482
Cash and restricted cash at end of year	$	456		$	18,840		$	64,688		$	—		$	83,984



Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2017
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(307,982	)	$	21,308		$	585,799		$	—		$	299,125
Net cash provided by (used in) investing activities	33			(114,852		)	(597,870		)	(106,595		)	(819,284		)
Net cash provided by (used in) financing activities	208,440			96,307			(2,843		)	106,595			408,499
Decrease in cash and restricted cash	(99,509		)	2,763			(14,914		)	—			(111,660		)
Cash and restricted cash at beginning of year	99,795			2,900			111,447			—			214,142
Cash and restricted cash at end of year	$	286		$	5,663		$	96,533		$	—		$	102,482



Condensed Consolidating Statement of Cash Flows For the Year Ended December 31, 2016
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(45,215	)	$	6,694		$	172,607		$	—		$	134,086
Net cash used in investing activities	(324,724		)	(64,999		)	(443,817		)	384,801			(448,739		)
Net cash provided by financing activities	469,654			60,110			322,743			(384,801		)	467,706
Increase in cash and restricted cash	99,715			1,805			51,533			—			153,053
Cash and restricted cash at beginning of year	80			1,095			59,914			—			61,089
Cash and restricted cash at end of year	$	99,795		$	2,900		$	111,447		$	—		$	214,142