EQUITY

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

EQUITY

EQUITY

Common Stock Dividend

The Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.025 per share of common stock in both the first and second quarters of 2021. The dividend, which totaled $2.9 million in each quarter, was paid on March 31, 2021 and June 3, 2021. In July 2021, the Board declared a quarterly cash dividend of $0.025 per share of common stock payable on September 3, 2021 to shareholders of record as of August 12, 2021.

San Mateo Distributions and Contributions

During the three months ended June 30, 2021 and 2020, San Mateo distributed $15.3 million and $11.0 million, respectively, to the Company and $14.7 million and $10.5 million, respectively, to a subsidiary of Five Point Energy LLC, the Company’s joint venture partner (“Five Point”). During the six months ended June 30, 2021 and 2020, San Mateo distributed $30.1 million and $23.0 million, respectively, to the Company and $28.9 million and $22.1 million, respectively, to Five Point.

During the three and six months ended June 30, 2021, there were no contributions to San Mateo by either the Company or Five Point. During the three months ended June 30, 2020, the Company contributed $15.4 million and Five Point contributed $17.2 million of cash to San Mateo, of which $2.5 million was paid to carry Matador’s proportionate interest in San Mateo. During the six months ended June 30, 2020, the Company contributed $22.9 million and Five Point contributed $67.2 million of cash to San Mateo, of which $23.1 million was paid to carry Matador’s proportionate interest in San Mateo. The portion of the amount contributed by Five Point to carry Matador’s proportionate interest was recorded in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheets for the three and six months ended June 30, 2020, net of the $0.5 million and $4.8 million, respectively, deferred tax impact to Matador related to this equity contribution.

Performance Incentives

Five Point paid to the Company $16.3 million in performance incentives during the three months ended June 30, 2021. No performance incentives were paid by Five Point to the Company during the three months ended June 30, 2020. Five Point paid to the Company $31.6 million and $14.7 million in performance incentives during the six months ended June 30, 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 and six months ended June 30, 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.