Subsidiary Guarantors

6 Months Ended

Jun. 30, 2019

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 June 30, 2019, 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 tables present condensed consolidating financial information of Matador (as issuer of the Notes), 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, 2019
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	1,582,828	$	12,535	$	—	$	(1,595,363	)	$	—
Current assets	3,967		44,100		225,317		—			273,384
Net property and equipment	—		438,681		2,944,662		—			3,383,343
Investment in subsidiaries	1,211,056		—		109,227		(1,320,283		)	—
Long-term assets	10,589		1,700		92,004		(9,569		)	94,724
Total assets	$	2,808,440	$	497,016	$	3,371,210	$	(2,925,215	)	$	3,751,451
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	—	$	1,595,363	$	(1,595,363	)	$	—
Current liabilities	18,493		33,080		286,004		(802		)	336,775
Senior unsecured notes payable	1,038,625		—		—		—			1,038,625
Other long-term liabilities	14,845		250,583		278,787		(8,767		)	535,448
Total equity attributable to Matador Resources Company	1,736,477		109,227		1,211,056		(1,320,283		)	1,736,477
Non-controlling interest in subsidiaries	—		104,126		—		—			104,126
Total liabilities and equity	$	2,808,440	$	497,016	$	3,371,210	$	(2,925,215	)	$	3,751,451



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 Statement of Operations For the Three Months Ended June 30, 2019
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	41,720		$	216,885		$	(16,901	)	$	241,704
Total expenses	901			22,564			158,351			(16,901		)	164,915
Operating (loss) income	(901		)	19,156			58,534			—			76,789
Inventory impairment	—			—			(368		)	—			(368		)
Interest expense	(15,888		)	(2,180		)	—			—			(18,068		)
Other income (expense)	—			3			(426		)	—			(423		)
Earnings in subsidiaries	66,399			—			8,659			(75,058		)	—
Income before income taxes	49,610			16,979			66,399			(75,058		)	57,930
Total income tax provision	12,858			—			—			—			12,858
Net income attributable to non-controlling interest in subsidiaries	—			(8,320		)	—			—			(8,320		)
Net income attributable to Matador Resources Company shareholders	$	36,752		$	8,659		$	66,399		$	(75,058	)	$	36,752



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 Six Months Ended June 30, 2019
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	84,596		$	366,133		$	(35,136	)	$	415,593
Total expenses	1,936			48,069			316,395			(35,136		)	331,264
Operating (loss) income	(1,936		)	36,527			49,738			—			84,329
Inventory impairment	—			—			(368		)	—			(368		)
Interest expense	(31,675		)	(4,322		)	—			—			(35,997		)
Other income (expense)	—			3			(535		)	—			(532		)
Earnings in subsidiaries	65,261			—			16,426			(81,687		)	—
Income before income taxes	31,650			32,208			65,261			(81,687		)	47,432
Total income tax provision	11,845			—			—			—			11,845
Net income attributable to non-controlling interest in subsidiaries	—			(15,782		)	—			—			(15,782		)
Net income attributable to Matador Resources Company shareholders	$	19,805		$	16,426		$	65,261		$	(81,687	)	$	19,805



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 Cash Flows For the Six Months Ended June 30, 2019
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(109	)	$	51,266		$	143,340		$	—		$	194,497
Net cash used in investing activities	—			(59,309		)	(327,195		)	(8,190		)	(394,694		)
Net cash provided by financing activities	—			13,584			179,201			8,190			200,975
(Decrease) increase in cash and restricted cash	(109		)	5,541			(4,654		)	—			778
Cash and restricted cash at beginning of period	456			18,841			64,687			—			83,984
Cash and restricted cash at end of period	$	347		$	24,382		$	60,033		$	—		$	84,762



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