Equity

3 Months Ended

Mar. 31, 2021

Equity [Abstract]

EQUITY

Common Stock Dividend

During the three months ended March 31, 2021, the Company’s Board of Directors (the “Board”) adopted a dividend policy and declared the Company’s first quarterly cash dividend of $0.025 per share of common stock. The dividend, which totaled $2.9 million, was paid on March 31, 2021. In April 2021, the Board declared the Company’s second quarterly cash dividend of $0.025 per share of common stock payable on June 3, 2021 to shareholders of record as of May 13, 2021.

San Mateo Distributions and Contributions

During the three months ended March 31, 2021 and 2020, San Mateo distributed $14.8 million and $12.0 million, respectively, to the Company and $14.2 million and $11.5 million, respectively, to a subsidiary of Five Point Energy LLC, the Company’s joint venture partner (“Five Point”). During the three months ended March 31, 2020, the Company contributed $7.5 million and Five Point contributed $50.0 million of cash to San Mateo, of which $20.6 million was paid to carry Matador’s proportionate interest in San Mateo and was therefore recorded in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheet, net of the $4.3 million deferred tax impact to Matador related to this equity contribution. During the three months ended March 31, 2021, there were no contributions to San Mateo by either the Company or Five Point.

Performance Incentives

Five Point paid to the Company $15.4 million and $14.7 million in performance incentives during the three months ended March 31, 2021 and 2020, respectively. These performance incentives are recorded when received, net of the $3.1 million deferred tax impact to Matador during the three months ended March 31, 2020, in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheets. These performance incentives for the three months ended March 31, 2021 and 2020 are also denoted as “Contributions related to formation of San Mateo” under “Financing activities” in the Company’s interim unaudited condensed consolidated statements of cash flows and changes in shareholders’ equity.