Equity

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

EQUITY

EQUITY

Common Stock Dividend

The Board declared quarterly cash dividends of $0.15 per share of common stock in each of the first, second and third quarters of 2023. The first quarter dividend, which totaled $17.8 million was paid on March 9, 2023 to shareholders of record as of February 27, 2023. The second quarter dividend, which totaled $17.9 million, was paid on June 1, 2023 to shareholders of record as of May 11, 2023. The third quarter dividend, which totaled $17.8 million, was paid on September 1, 2023 to shareholders of record as of August 11, 2023. In October 2023, the Board amended the Company’s dividend policy to increase the quarterly dividend to $0.20 per share of common stock and also declared a quarterly cash dividend of $0.20 per share of common stock. The fourth quarter dividend, which totaled $23.7 million, was paid on December 1, 2023 to shareholders of record as of November 10, 2023.

The Board declared a quarterly cash dividend of $0.05 per share of common stock in each of the first two quarters of 2022 and the Board declared a quarterly cash dividend of $0.10 per share of common stock for the last two quarters of 2022. Total cash dividends declared and paid totaled $77.2 million and $35.2 million, respectively, during the years ended December 31, 2023 and 2022.

On February 13, 2024, the Board declared a quarterly cash dividend of $0.20 per share of common stock payable on March 13, 2024 to shareholders of record as of February 23, 2024.

Treasury Stock

On October 19, 2023, October 20, 2022 and October 21, 2021, Matador’s Board canceled all of the shares of treasury stock outstanding as of September 30, 2023, 2022 and 2021, respectively. These shares were restored to the status of authorized but unissued shares of common stock of the Company.

The shares of treasury stock outstanding at December 31, 2023, 2022 and 2021 represent forfeitures of non-vested restricted stock awards and forfeitures of fully vested restricted stock awards due to net share settlements with employees.

Preferred Stock

The Company’s Amended and Restated Certificate of Formation authorizes 2,000,000 shares of preferred stock. Before any such shares are issued, the Board shall fix and determine the designations, preferences, limitations and relative rights, including voting rights of the shares of each such series.

San Mateo Distributions and Contributions

During the years ended December 31, 2023, 2022 and 2021, San Mateo distributed $81.4 million, $89.5 million and $64.5 million, respectively, to the Company and $78.3 million, $86.0 million and $62.0 million, respectively, to Five Point Energy, LLC (“Five Point”), the Company’s joint venture partner in San Mateo. During the year ended December 31, 2023, the Company contributed $25.5 million and Five Point contributed $24.5 million of cash to San Mateo. During the years ended December 31, 2022 and 2021, neither the Company nor Five Point contributed cash to San Mateo.

Performance Incentives

As part of the joint venture agreements with Five Point, the Company had the potential to earn two different sets of performance incentives. These performance incentives are recorded as additional contributions related to the formation of San Mateo as they are received. Beginning in 2017, the Company had the potential to earn up to $73.5 million in performance incentives related to the Company’s performance in its Rustler Breaks asset area in Eddy County and the Wolf portion of its West Texas asset area in Loving County over a five-year period, which in October 2020 was extended by an additional year to January 31, 2023. Through January 31, 2023, the Company had earned all of the potential $73.5 million in performance incentives. Five Point paid $14.7 million in performance incentives in each of the first quarters of 2018, 2019, 2020, 2021 and 2023. Beginning in 2019, the Company had the potential to earn up to $150.0 million in additional deferred performance incentives in its Stebbins area and surrounding leaseholds in the southern portion of its Arrowhead asset area (the “Greater Stebbins Area”) and Stateline asset area through mid-2024, of which the Company had earned $85.7 million through February 20, 2024, plus additional performance incentives for securing volumes from third-party customers. During the years ended December 31, 2023 and 2022, Five Point paid $23.5 million and $28.3 million, respectively, in these additional performance incentives. Both of these performance incentives are recorded when received, net of the $8.0 million and $5.9 million deferred tax impact to Matador for the years ended December 31, 2023 and 2022, respectively, in “Additional paid-in-capital” in the Company’s consolidated balance sheets.