Subsidiary Guarantors

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

SUBSIDIARY GUARANTORS

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, 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 September 30, 2019
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	1,563,060	$	20,658	$	—	$	(1,583,718	)	$	—
Current assets	3,762		39,545		226,009		—			269,316
Net property and equipment	—		502,082		3,058,043		—			3,560,125
Investment in subsidiaries	1,285,250		—		122,743		(1,407,993		)	—
Long-term assets	3,440		1,605		111,519		(9,366		)	107,198
Total assets	$	2,855,512	$	563,890	$	3,518,314	$	(3,001,077	)	$	3,936,639
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	—	$	1,583,718	$	(1,583,718	)	$	—
Current liabilities	—		53,627		350,532		(802		)	403,357
Senior unsecured notes payable	1,039,020		—		—		—			1,039,020
Other long-term liabilities	21,185		270,409		298,814		(8,564		)	581,844
Total equity attributable to Matador Resources Company	1,795,307		122,743		1,285,250		(1,407,993		)	1,795,307
Non-controlling interest in subsidiaries	—		117,111		—		—			117,111
Total liabilities and equity	$	2,855,512	$	563,890	$	3,518,314	$	(3,001,077	)	$	3,936,639

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 September 30, 2019
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	52,776		$	246,235		$	(19,609	)	$	279,402
Total expenses	1,034			30,317			181,558			(19,609		)	193,300
Operating (loss) income	(1,034		)	22,459			64,677			—			86,102
Net loss on asset sales and inventory impairment	—			—			(439		)	—			(439		)
Interest expense	(15,716		)	(2,459		)	—			—			(18,175		)
Other expense	—			—			(245		)	—			(245		)
Earnings in subsidiaries	74,193			—			10,200			(84,393		)	—
Income before income taxes	57,443			20,000			74,193			(84,393		)	67,243
Total income tax provision	13,490			—			—			—			13,490
Net income attributable to non-controlling interest in subsidiaries	—			(9,800		)	—			—			(9,800		)
Net income attributable to Matador Resources Company shareholders	$	43,953		$	10,200		$	74,193		$	(84,393	)	$	43,953

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		)
Other (expense) income	(31,232		)	8			(978		)	—			(32,202		)
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 Nine Months Ended September 30, 2019
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	137,372		$	612,368		$	(54,745	)	$	694,995
Total expenses	2,970			78,386			497,953			(54,745		)	524,564
Operating (loss) income	(2,970		)	58,986			114,415			—			170,431
Net loss on asset sales and inventory impairment	—			—			(807		)	—			(807		)
Interest expense	(47,391		)	(6,781		)	—			—			(54,172		)
Other income (expense)	—			3			(780		)	—			(777		)
Earnings in subsidiaries	139,454			—			26,626			(166,080		)	—
Income before income taxes	89,093			52,208			139,454			(166,080		)	114,675
Total income tax provision	25,335			—			—			—			25,335
Net income attributable to non-controlling interest in subsidiaries	—			(25,582		)	—			—			(25,582		)
Net income attributable to Matador Resources Company shareholders	$	63,758		$	26,626		$	139,454		$	(166,080	)	$	63,758

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	(31,226		)	19			(1,294		)	—			(32,501		)
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 Cash Flows For the Nine Months Ended September 30, 2019
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(423	)	$	82,812		$	270,738		$	—		$	353,127
Net cash used in investing activities	—			(116,967		)	(507,938		)	(14,144		)	(639,049		)
Net cash provided by financing activities	—			39,888			188,712			14,144			242,744
(Decrease) increase in cash and restricted cash	(423		)	5,733			(48,488		)	—			(43,178		)
Cash and restricted cash at beginning of period	456			18,841			64,687			—			83,984
Cash and restricted cash at end of period	$	33		$	24,574		$	16,199		$	—		$	40,806

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