Matador Resources Company (NYSE:MTDR) Q4 2023 Earnings Call Transcript February 21, 2024 11:00 AM ET Company Participants Mac Schmitz - Vice President of Investor Relations Joe Foran - Founder, Chairman of the Board, CEO & Secretary Glenn Stetson - Executive Vice President of Production Tom Elsener - Executive Vice President of Reservoir Engineering & Senior Asset Manager Christopher Calvert - Executive VP & Co-Chief Operating Officer Rob Macalik - Executive VP & Chief Accounting Officer Van Singleton - Pre ...

Exhibit 99.1 MATADOR RESOURCES COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS AND PROVIDES OPERATIONAL UPDATE, 2024 OPERATING PLAN AND MARKET GUIDANCE DALLAS, Texas, February 20, 2024 -- Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company") today reported financial and operating results for the fourth quarter and full year 2023. A slide presentation summarizing the highlights of Matador's fourth quarter and full year 2023 earnings release and 2024 operating plan is also in ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ (State or other jurisdiction of incorporation or organization) FORM 10-Q _________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition ...

Matador Resources Company (NYSE:MTDR) Q3 2023 Earnings Conference Call October 25, 2023 11:00 AM ET Company Participants Mac Schmitz - Vice President, Investor Relations Joe Foran - Founder, Chairman & Chief Executive Officer Gregg Krug - Executive Vice President, Marketing & Midstream Strategy Tom Elsener - Executive Vice President, Reservoir Engineering & Senior Asset Manager Glenn Stetson - Executive Vice President-Production Chris Calvert - Executive Vice President & Co-Chief Operating Officer Rob Maca ...

Third Quarter 2023 Earnings Release October 24, 2023 2 Mac Schmitz Vice President – Investor Relations Phone: (972) 371-5225 E-mail: investors@matadorresources.com Definitions – Proved oil and natural gas reserves are the estimated quantities of oil and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Matador's production and proved reserves are reported in two stre ...

Production and Operations - For Q2 2023, Matador reported total oil equivalent production of 11.9 million BOE, with an average daily production of 130,683 BOE per day, of which 58% was oil and 42% was natural gas [114]. - Average daily oil production increased by 19% year-over-year to 76,345 Bbl per day, while average daily natural gas production rose by 17% to 326.0 MMcf per day [115]. - The company turned to sales a total of 55 gross (22.8 net) horizontal wells in Q2 2023, including 27 gross (20.6 net) operated wells [121]. - Average daily oil equivalent production in the Delaware Basin for Q2 2023 was 125,000 BOE per day, a 19% increase from 105,200 BOE per day in Q2 2022 [122]. - Matador operated seven drilling rigs in the Delaware Basin for the remainder of 2023, maintaining flexibility to adjust operations based on commodity prices [120]. - The company plans to operate seven drilling rigs in the Delaware Basin for the remainder of 2023, focusing on longer horizontal wells with 96% expected completed lateral lengths greater than one mile [170]. Financial Performance - Net income attributable to Matador shareholders for Q2 2023 was $164.7 million, or $1.37 per diluted share, down from $415.7 million, or $3.47 per diluted share, in Q2 2022 [116]. - Adjusted EBITDA for Q2 2023 was $423.3 million, compared to $663.8 million in Q2 2022 [116]. - Total oil and natural gas revenues decreased by $304.9 million, or 34%, to $587.9 million for Q2 2023 compared to Q2 2022 [134]. - Oil revenues decreased by $139.9 million, or 22%, to $510.4 million for Q2 2023, attributed to a 34% decrease in the weighted average oil price to $73.46 per Bbl [134]. - Natural gas revenues decreased by $165.0 million, or 68%, to $77.6 million for Q2 2023, due to a 73% decrease in the weighted average natural gas price to $2.61 per Mcf [134]. - For the six months ended June 30, 2023, net income attributable to Matador shareholders decreased by $295.1 million to $327.8 million, compared to $622.8 million for the same period in 2022 [189]. - Adjusted EBITDA decreased by $337.2 million to $788.5 million for the six months ended June 30, 2023, compared to $1.13 billion for the same period in 2022 [191]. Capital Expenditures and Investments - The 2023 estimated capital expenditure budget was decreased to $1.10 to $1.22 billion, reflecting increased operational efficiencies and adjustments to the operating plan [125]. - The anticipated capital expenditure budget for drilling, completion, and equipment (D/C/E) was adjusted to $1.10 to $1.22 billion for 2023, down from $1.18 to $1.32 billion [170]. - Net cash used in investing activities increased by $1.72 billion to $2.24 billion for the six months ended June 30, 2023, compared to $521.0 million for the same period in 2022 [176]. Debt and Financing - As of June 30, 2023, the company had $560.0 million in borrowings outstanding under its Credit Agreement and $500.0 million of outstanding 2028 Notes [129]. - Long-term debt as of June 30, 2023, was reported at $1.74 billion [182]. - The company closed the Advance Acquisition in April 2023, funded through cash and borrowings, and issued $500.0 million in 2028 Notes, using net proceeds to partially repay borrowings [162]. - Total interest expense for the six months ended June 30, 2023, was approximately $59.1 million, up from $39.1 million in the same period of 2022, due to borrowings related to the Advance Acquisition [160]. Operational Costs and Expenses - Total operating expenses increased by $86.3 million, or 14%, to $694.7 million for the six months ended June 30, 2023, compared to $605.3 million for the same period in 2022 [145]. - Lease operating expenses rose by $31.6 million, or 43%, to $105.5 million for the six months ended June 30, 2023, attributed to an increased number of wells operated and inflation in operating costs [155]. - Plant and other midstream services operating expenses increased by $20.2 million, or 49%, to $61.7 million for the six months ended June 30, 2023, driven by increased throughput volumes [156]. - Production taxes, transportation, and processing expenses decreased by $28.0 million, or 19%, to $117.5 million for the six months ended June 30, 2023, primarily due to a decrease in oil and natural gas revenues [154]. Market Conditions and Pricing - For Q2 2023, the average oil price was $73.56 per Bbl, down from $108.52 per Bbl in Q2 2022, with realized average oil price at $73.46 per Bbl compared to $111.06 per Bbl in Q2 2022 [197]. - Natural gas prices averaged $2.33 per MMBtu in Q2 2023, significantly lower than $7.50 per MMBtu in Q2 2022, with realized average natural gas price at $2.61 per Mcf compared to $9.57 per Mcf in Q2 2022 [198][199]. Regulatory and Environmental Factors - The company is subject to extensive federal, state, and local regulations, which increase operational costs and affect profitability [208]. - Approximately 31% of the company's leasehold and mineral acres in the Delaware Basin are located on federal lands, which may face administrative permitting requirements and potential restrictions [209]. - The New Mexico Oil Conservation Division requires a 98% natural gas capture rate by the end of 2026, impacting operational strategies [208]. - Recent regulatory changes in New Mexico and Texas may impose additional requirements on saltwater disposal wells, potentially increasing operational costs [210]. Risk Management - The company has entered into derivative financial instruments to manage market risks related to oil, natural gas, and NGL price fluctuations [216]. - The company utilizes costless collars and swap contracts to provide downside price protection against market volatility [217]. - The company has experienced inflation in oilfield service costs and supply chain disruptions, which may impact future operational costs [205]. Shareholder Returns - The company declared a quarterly cash dividend of $0.15 per share, totaling $17.8 million for Q1 2023 and $17.9 million for Q2 2023 [126]. - A quarterly cash dividend of $0.15 per share was declared for the first and second quarters of 2023, totaling $17.8 million and $17.9 million, respectively [169].

Financial Data and Key Metrics Changes - The company expects a 40% growth in production through 2023, increasing from 101,000 barrels of oil equivalent per day to over 140,000 barrels per day by year-end [8][10] - Debt has been reduced by $140 million, and operating expenses have decreased, with drilling costs appearing to have peaked [11][29] - Full-year production growth from 2022 to 2023 is projected at 21%, with oil growth at 24% [12] Business Line Data and Key Metrics Changes - The company is consolidating facilities to improve efficiency, reducing the number of operational facilities from 19 to 6, which will lower supervision costs and operating expenses [16] - The production from the Advance properties has exceeded expectations, contributing significantly to overall production growth [27][127] Market Data and Key Metrics Changes - The company is experiencing a competitive service cost environment, which is expected to lead to further cost reductions in the second half of the year [86][103] - The exit rate for production is projected to be around 143,000 barrels of oil equivalent per day, despite some temporary shut-ins affecting production [90][91] Company Strategy and Development Direction - The strategic plan focuses on increasing production, reducing debt, and lowering drilling and operational costs [29][134] - The company aims to maintain a leverage ratio of 1 times or less while pursuing growth opportunities through selective acquisitions and operational efficiencies [30][75] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in achieving the production target of 150,000 barrels of oil equivalent per day in 2024, supported by operational efficiencies and a favorable market environment [10][30] - The company emphasizes a focus on quality over quantity in growth strategies, aiming for sustainable and profitable growth [21][63] Other Important Information - The company has successfully integrated the Advance assets and is seeing positive results from this acquisition [27][73] - There are plans to expand midstream operations, with a new gas plant in the planning phases to meet increasing production needs [56][68] Q&A Session Summary Question: What is the expected cadence for bringing on new wells? - The company plans to commission a well every few days as part of a batch of 21 wells, with operations running through the end of September [15][35] Question: How will the company achieve its production goals with fewer rigs? - The company believes it can achieve its production goals with seven rigs due to improved efficiencies and reduced service costs [18][38] Question: What is the long-term capital allocation strategy? - The company aims to balance growth, debt repayment, and shareholder returns, with a focus on being nimble and opportunistic in capital allocation [73][75] Question: What are the expectations for CapEx and DNC costs? - The company has reduced its DNC cost guidance to $1,100 per foot, down from $1,124, reflecting a competitive service cost environment [85][102] Question: How will temporary shut-ins affect production guidance? - Temporary shut-ins are expected to impact production rates, but management remains confident in achieving the exit rate despite these challenges [90][91]

Production and Operations - For Q1 2023, Matador reported total oil equivalent production of 9.6 million BOE, with average daily production of 106,654 BOE per day, comprising 55% oil and 45% natural gas[93]. - Average daily oil production increased by 10% year-over-year to 58,941 Bbl per day, while average daily natural gas production rose by 18% to 286.3 MMcf per day[93][94]. - Average daily production increased by 13% to 106,654 BOE/d for the three months ended March 31, 2023, compared to 93,969 BOE/d for the same period in 2022[107]. - Average daily oil equivalent production in the Delaware Basin for Q1 2023 was 101,100 BOE per day, a 13% increase from 89,400 BOE per day in Q1 2022[99]. - In Q1 2023, Matador turned to sales a total of 54 gross (19.0 net) horizontal wells in the Delaware Basin[98]. - As of April 25, 2023, Matador operated eight contracted drilling rigs in the Delaware Basin, following the Advance Acquisition[97]. - The company plans to focus on the development of its Delaware Basin assets for the remainder of 2023, operating eight contracted drilling rigs as of April 25, 2023[131]. Financial Performance - Net income attributable to Matador shareholders for Q1 2023 was $163.1 million, or $1.36 per diluted share, down from $207.1 million, or $1.73 per diluted share, in Q1 2022[95]. - Adjusted EBITDA for Q1 2023 was $365.2 million, compared to $461.8 million in Q1 2022[95]. - Total revenues for the three months ended March 31, 2023, were $560.3 million, a slight decrease of 1% from $565.7 million in the same period of 2022[107]. - Oil and natural gas revenues decreased by $123.6 million, or 20%, to $502.9 million for the three months ended March 31, 2023, compared to $626.5 million for the same period in 2022[109]. - Revenues for the three months ended March 31, 2023, were $503.1 million, while expenses were $287.0 million, resulting in an operating income of $216.1 million[144]. - Net income attributable to shareholders decreased to $163.1 million for the three months ended March 31, 2023, down from $207.1 million in the same period of 2022[114]. - Adjusted EBITDA decreased by $96.6 million to $365.2 million for the three months ended March 31, 2023, compared to $461.8 million for the same period in 2022[150]. Expenses and Costs - Production taxes, transportation, and processing expenses decreased by $4.3 million, or 7%, to $55.5 million for the three months ended March 31, 2023[115]. - Lease operating expenses increased by $10.5 million, or 31%, to $44.4 million for the three months ended March 31, 2023, compared to $34.0 million in the same period of 2022[116]. - Depletion, depreciation, and amortization expenses increased by $30.5 million, or 32%, to $126.3 million for the three months ended March 31, 2023[119]. - General and administrative expenses decreased by $7.3 million, or 25%, to $22.4 million for the three months ended March 31, 2023, compared to $29.7 million for the same period in 2022[120]. - Interest expense for the three months ended March 31, 2023, was $19.6 million, a slight decrease from $19.8 million in the same period of 2022[121]. Cash Flow and Capital Expenditures - Net cash provided by operating activities increased by $10.5 million to $339.5 million for the three months ended March 31, 2023, compared to $328.9 million for the same period in 2022[136]. - Net cash used in investing activities increased by $91.6 million to $343.5 million for the three months ended March 31, 2023, primarily due to increased capital expenditures and an $80 million deposit for the Advance Acquisition[138]. - The company expects to fund 2023 capital expenditures through cash on hand, operating cash flows, and performance incentives, with potential borrowings if expenditures exceed cash flows[123]. - The 2023 estimated capital expenditure budget is between $1.18 billion and $1.32 billion for drilling, completing, and equipping activities, plus $150 million to $200 million for midstream capital expenditures[131]. - Net cash used in financing activities decreased by $3.9 million to $39.9 million for the three months ended March 31, 2023, compared to $43.8 million for the same period in 2022[139]. Debt and Obligations - As of March 31, 2023, Matador had no borrowings under its Credit Agreement and $699.2 million in outstanding senior notes due 2026[103]. - The company completed the sale of $500.0 million in senior notes due 2028, receiving net proceeds of approximately $487.6 million after expenses[104]. - Long-term debt stood at $695.5 million as of March 31, 2023[144]. - The company had total contractual cash obligations of $2.16 billion as of March 31, 2023[157]. - The company expects interest expense on the $699.2 million of outstanding 2026 Notes to be approximately $41.1 million each year until maturity[153]. Market Conditions and Pricing - For Q1 2023, oil prices averaged $75.99 per Bbl, down from $95.01 per Bbl in Q1 2022, reflecting a decrease of approximately 20%[161]. - The company realized a weighted average oil price of $75.74 per Bbl in Q1 2023, compared to $95.45 per Bbl in Q1 2022, indicating a decline of about 21%[161]. - Natural gas prices averaged $2.74 per MMBtu in Q1 2023, down from $4.59 per MMBtu in Q1 2022, representing a decrease of approximately 40%[162]. - The company realized a weighted average natural gas price of $3.93 per Mcf in Q1 2023, compared to $7.63 per Mcf in Q1 2022, a decline of about 48%[162]. - The Midland-Cushing oil price differential was approximately +$0.70 per Bbl as of April 25, 2023, highlighting market fluctuations[164]. - As of April 25, 2023, the Waha basis differential for natural gas was approximately ($1.20) per MMBtu, indicating significant volatility in pricing[165]. Risk Factors - The ongoing military conflict between Russia and Ukraine, along with political instability in various regions, continues to impact commodity price volatility, which is a significant risk to the company's financial results[159]. - The company is subject to extensive regulatory requirements that may impact operational costs and profitability, particularly in relation to environmental regulations[171]. Derivative Instruments and Hedging - The company utilizes costless collars, three-way collars, and swap contracts to manage risks related to oil, natural gas, and NGL price fluctuations[180]. - The company reported a realized gain on derivatives of $3.7 million for the three months ended March 31, 2023, compared to a loss of $22.4 million in the same period of 2022[112]. - The company reported an unrealized loss on derivatives of $7.1 million for the three months ended March 31, 2023, compared to a loss of $75.0 million for the same period in 2022[150]. - As of March 31, 2023, all derivative financial instruments are recorded at fair value, with PNC Bank as the counterparty for all instruments[181]. Internal Controls and Compliance - The company's disclosure controls and procedures were evaluated as effective as of March 31, 2023, ensuring timely reporting and decision-making[183]. - There were no changes in internal controls over financial reporting during the three months ended March 31, 2023, that materially affected the reporting[184].

(Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K Commission File Number 001-35410 Matador Resources Company (Exact name of registrant as specified in its charter) Texas 27-4662601 (State or o ...

Financial Performance - Net income attributable to Matador shareholders for Q2 2022 was $415.7 million, or $3.47 per diluted share, compared to $105.9 million, or $0.89 per diluted share, in Q2 2021 [111]. - Adjusted EBITDA for Q2 2022 was $663.8 million, up from $261.0 million in Q2 2021 [112]. - For the first half of 2022, net income attributable to Matador shareholders was $622.8 million, or $5.20 per diluted share, compared to $166.6 million, or $1.40 per diluted share, in the same period of 2021 [113]. - Revenues for the six months ended June 30, 2022, were $1.44 billion, with operating income of $822.9 million [177]. - Adjusted EBITDA increased by $666.6 million to $1.13 billion for the six months ended June 30, 2022, compared to $459.1 million for the same period in 2021, driven by higher oil and natural gas production and prices [185]. Production and Operations - For Q2 2022, Matador reported total oil equivalent production of 10.1 million BOE, with an average daily production of 110,750 BOE per day, comprising 58% oil and 42% natural gas [110]. - The company operated six drilling rigs in the Delaware Basin throughout Q2 2022 and plans to increase to seven rigs by September 2022 [115]. - In Q2 2022, Matador turned to sales a total of 29 gross (7.7 net) horizontal wells in the Delaware Basin [116]. - Average daily oil equivalent production in the Delaware Basin for Q2 2022 was 105,200 BOE per day, a 20% increase from 87,500 BOE per day in Q2 2021 [117]. - The company expects to focus on the development of its Delaware Basin assets for the remainder of 2022, with an emphasis on longer horizontal wells [165]. Revenue and Pricing - Oil and natural gas revenues increased by $480.7 million, or 117%, to $892.8 million for the three months ended June 30, 2022, compared to $412.1 million for the same period in 2021 [127]. - Oil revenues rose by $335.1 million, or 106%, to $650.2 million for the three months ended June 30, 2022, driven by a 71% increase in the average oil price to $111.06 per Bbl [127]. - Natural gas revenues increased by $145.6 million, or 150%, to $242.5 million for the three months ended June 30, 2022, due to a 115% rise in the average natural gas price to $9.57 per Mcf [127]. - For the six months ended June 30, 2022, oil and natural gas revenues increased by $791.0 million, or 109%, to $1.5 billion compared to $728.3 million for the same period in 2021 [132]. Expenses and Costs - Total operating expenses for the three months ended June 30, 2022, increased by 64% to $348.9 million, compared to $212.3 million for the same period in 2021 [138]. - Production taxes, transportation, and processing expenses rose by 95% to $85.7 million for the three months ended June 30, 2022, from $43.8 million in the same period of 2021 [139]. - Lease operating expenses increased by 39% to $39.9 million for the three months ended June 30, 2022, compared to $28.8 million for the same period in 2021 [140]. - Depletion, depreciation, and amortization expenses increased by 31% to $120.0 million for the three months ended June 30, 2022, from $91.4 million in the same period of 2021 [143]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended June 30, 2022, was $975.3 million, compared to $427.6 million for the same period in 2021 [170]. - Net cash used in investing activities rose by $269.9 million to $521.0 million for the six months ended June 30, 2022, primarily due to increased capital expenditures and acquisitions [172]. - Net cash used in financing activities increased by $70.2 million to $258.9 million for the six months ended June 30, 2022, with significant cash used for repurchasing Notes and repaying borrowings [173]. Taxation - The effective tax rate for the three months ended June 30, 2022, was 25%, differing from the U.S. federal statutory rate due to permanent differences and state taxes [146]. - Total income tax provision for the six months ended June 30, 2022, was $204.5 million, compared to $8.2 million for the same period in 2021 [138]. - The company recorded an income tax provision of $51.7 million and a deferred income tax provision of $152.8 million for the six months ended June 30, 2022, resulting in an effective tax rate of 25% [154]. Derivatives and Risk Management - Realized net loss on derivatives was $61.2 million for the three months ended June 30, 2022, compared to a loss of $42.6 million for the same period in 2021 [130]. - Unrealized gain on derivatives amounted to $30.4 million for the three months ended June 30, 2022, compared to an unrealized loss of $42.8 million for the same period in 2021 [131]. - The company utilizes derivative financial instruments to manage commodity price exposure, aiming to cover a significant portion of anticipated future production [213]. Regulatory and Market Conditions - Commodity price volatility remains a significant risk, influenced by factors such as geopolitical events and market supply and demand dynamics [192]. - New Mexico aims for a 45% reduction in greenhouse gas emissions by 2030 compared to 2005 levels, impacting the oil and natural gas industry [205]. - The New Mexico Oil Conservation Division requires a 98% natural gas capture rate by the end of 2026, which could affect production operations [205]. - Federal actions and lawsuits may delay lease sales and drilling permits, potentially impacting production volumes and revenues [206]. - Stricter regulations on produced water disposal due to induced seismicity concerns could increase operational costs and restrict drilling activities [207].