Subsidiary Guarantors

12 Months Ended

Dec. 31, 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 December 31, 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 December 31, 2019
	Matador		Non-Guarantor Subsidiaries		Guarantor Subsidiaries		Eliminating Entries			Consolidated
ASSETS
Intercompany receivable	$	1,578,133	$	29,217	$	—	$	(1,607,350	)	$	—
Current assets	29		37,933		240,530		—			278,492
Net property and equipment	—		583,899		3,115,696		—			3,699,595
Investment in subsidiaries	1,332,237		—		144,697		(1,476,934		)	—
Long-term assets	—		3,072		99,049		(10,532		)	91,589
Total assets	$	2,910,399	$	654,121	$	3,599,972	$	(3,094,816	)	$	4,069,676
LIABILITIES AND EQUITY
Intercompany payable	$	—	$	—	$	1,607,350	$	(1,607,350	)	$	—
Current liabilities	—		73,086		327,595		(909		)	399,772
Senior unsecured notes payable	1,039,416		—		—		—			1,039,416
Other long-term liabilities	37,329		300,540		332,790		(9,623		)	661,036
Total equity attributable to Matador Resources Company	1,833,654		144,697		1,332,237		(1,476,934		)	1,833,654
Non-controlling interest in subsidiaries	—		135,798		—		—			135,798
Total liabilities and equity	$	2,910,399	$	654,121	$	3,599,972	$	(3,094,816	)	$	4,069,676



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 Year Ended December 31, 2019
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Total revenues	$	—		$	209,887		$	848,502		$	(74,719	)	$	983,670
Total expenses	(1,458		)	128,758			695,609			(74,719		)	748,190
Operating (loss) income	1,458			81,129			152,893			—			235,480
Net loss on asset sales and inventory impairment	—			—			(967		)	—			(967		)
Interest expense	(64,591		)	(9,282		)	—			—			(73,873		)
Other income (expense)	—			3			(2,129		)	—			(2,126		)
Earnings in subsidiaries	186,442			—			36,645			(223,087		)	—
Income before income taxes	123,309			71,850			186,442			(223,087		)	158,514
Total income tax provision	35,532			—			—			—			35,532
Net income attributable to non-controlling interest in subsidiaries	—			(35,205		)	—			—			(35,205		)
Net income attributable to Matador Resources Company shareholders	$	87,777		$	36,645		$	186,442		$	(223,087	)	$	87,777



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 Cash Flows For the Year Ended December 31, 2019
	Matador			Non-Guarantor Subsidiaries			Guarantor Subsidiaries			Eliminating Entries			Consolidated
Net cash (used in) provided by operating activities	$	(427	)	$	106,650		$	445,819		$	—		$	552,042
Net cash used in investing activities	—			(188,893		)	(698,455		)	(16,628		)	(903,976		)
Net cash provided by financing activities	—			88,059			228,391			16,628			333,078
(Decrease) increase in cash and restricted cash	(427		)	5,816			(24,245		)	—			(18,856		)
Cash and restricted cash at beginning of year	456			18,840			64,688			—			83,984
Cash and restricted cash at end of year	$	29		$	24,656		$	40,443		$	—		$	65,128



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 (increase) 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