Matador Resources Company (NYSE: MTDR) (“Matador” or the
“Company”) today reported record financial and operating results
for the second quarter of 2024. A short slide presentation
summarizing the highlights of Matador’s second quarter 2024
earnings release is also included on the Company’s website at
www.matadorresources.com on the Events and Presentations page under
the Investor Relations tab.
Full-Year 2024 Guidance Update
Effective July 23, 2024, Matador increased its full-year 2024
guidance range for total oil and natural gas equivalent production,
oil production and natural gas production as set forth in the table
below. This increased production guidance does not yet include any
expected production from Matador’s anticipated acquisition of a
subsidiary of Ameredev II Parent, LLC (“Ameredev”). The Ameredev
acquisition is expected to close late in the third quarter of 2024,
subject to customary closing conditions, including regulatory
approval.
Production
Prior Full-Year 2024
Guidance Range
New Full-Year 2024
Guidance Range(1)
Difference(2)
Total, BOE per day
153,000 to 159,000
158,500 to 163,500
+3.2%
Oil, Bbl per day
91,000 to 95,000
93,500 to 96,500
+2.2%
Natural Gas, MMcf per day
370.0 to 386.0
390.0 to 402.0
+4.8%
(1)
Does not include any production associated
with the pending Ameredev acquisition that is expected to close
late in the third quarter of 2024, subject to customary closing
conditions, including regulatory approval.
(2)
The midpoint of guidance provided on July
23, 2024 as compared to the midpoint of guidance provided on
February 20, 2024.
For highlights of Matador’s second quarter 2024 operational and
financial results, please see “Second Quarter 2024 Matador
Operational and Financial Highlights” on page 4 of this earnings
release. For comparisons of our second quarter 2024 operational and
financial results to prior periods, please see “Operational and
Financial Update” beginning on page 4 of this earnings release. For
a description of certain selected financial and operating items,
please see “Selected Financial and Operating Items” on page 9 of
this earnings release.
Management Commentary
Joseph Wm. Foran, Matador’s Founder, Chairman and CEO,
commented, “Matador’s second quarter of 2024 was one of the most
important quarters in the company’s history. Matador not only
achieved record production results and substantial cost savings but
also entered into an agreement to complete our largest acquisition
to date – the acquisition of Ameredev for $1.905 billion (subject
to customary closing adjustments), which is expected to close late
in the third quarter of 2024. When added to our usual
brick-by-brick acquisition efforts, the Ameredev acquisition is
expected to increase Matador’s acreage position in the core of the
northern Delaware Basin to 191,900 net acres (see Slide A).
We also anticipate that the Ameredev acquisition (once closed) will
have the effect of adding significantly to our currently existing
10 to 15 years or more of high-quality inventory (see Slide
B), continue our history of profitable and consistent growth at
a measured pace (see Slide C) and increase our total proved
reserves to over 600 million barrels of oil and natural gas
equivalent (‘BOE’) (see Slide D). We are further encouraged
that Matador’s stock has been the top performer among our peer
group for the last month-and-a-half following the announcement of
the proposed Ameredev acquisition (see Slide E). Given these
developments, our Board, executive team and staff are increasingly
excited about the outlook for the remainder of 2024 and beyond, as
we continue to work together to build the value of Matador for our
shareholders, staff, vendors, stakeholders and other friends from
its original capitalization of $270,000 to its present market
capitalization of approximately $8 billion.
Pending Ameredev
Acquisition
“We believe Matador’s recent acquisitions of various oil and
natural gas properties are unique and value-creating opportunities
as Matador continues to build its asset base in the northern
Delaware Basin. Ameredev, for example, comes with 33,500 net acres
of high-quality rock, strong existing production expected to
average 25,500 BOE per day in the third quarter of 2024, over 117
million BOE of reserves, high-quality inventory with 371 net
locations and a complimentary investment in a midstream business
with an approximate 19% equity interest in Piñon Midstream (see
Slide F). The equity and debt securities offerings we
completed earlier this year, together with the exceptional support
of our bank group led by PNC Bank, have provided us with the
financial flexibility and strength to acquire these and other
high-quality assets. In fact, our careful management of the balance
sheet has allowed us to end the second quarter of 2024 with only
$95 million outstanding on our current $1.5 billion revolving
credit agreement. We fully repaid the remaining outstanding balance
in July 2024, and as of July 23, 2024 have no debt outstanding
under our revolving credit agreement with our bank group.
“Matador expects Ameredev to continue operating its one drilling
rig on its acreage prior to closing. Matador added a ninth drilling
rig late in the second quarter of 2024 in order to help facilitate
a smooth transition upon closing of the Ameredev acquisition. Until
then, Matador’s ninth drilling rig will work on other Matador
properties, and we will rely on Ameredev to operate its current
drilling rig to drill its planned wells until closing. We are
pleased that even though Matador added a ninth drilling rig late in
the second quarter of 2024, we still expect Matador’s full-year
2024 drilling, completing and equipping (‘D/C/E’) capital
expenditures to be between the midpoint and high end of our
previously expected and announced range of $1.10 to $1.30
billion.
“Similar to the acquisition of Advance in 2023, our operations
team expects to implement operational efficiencies such as
‘simul-frac’ and ‘trimul-frac’ completion operations, dual fuel
technologies and other operational efficiencies on the Ameredev
properties after closing. We anticipate providing additional detail
regarding our expectations and plans for the remainder of 2024 on a
combined basis with the Ameredev properties after the acquisition
has closed. To this point, we have greatly appreciated the
professional and continuous work of the Ameredev staff in
administering and operating these properties until the anticipated
closing of the acquisition, which is expected to occur late in the
third quarter of 2024, subject to customary closing conditions,
including regulatory approval.
Record Production and Wells Turned to
Sales
“During the second quarter of 2024, Matador achieved record
average total production of 160,305 BOE per day, which was 2%
better than our expectation of an average of 157,250 BOE per day
for the quarter. Matador’s record average oil production of 95,488
barrels of oil per day during the second quarter of 2024 was 3%
better than our expected average of 93,000 barrels of oil per day
for the quarter. The record production in the second quarter of
2024 does not include any production associated with the proposed
Ameredev acquisition, as no production from Ameredev will be
included in Matador’s results until after the expected closing of
the acquisition late in the third quarter of 2024, subject to
customary closing conditions, including regulatory approval.
Matador’s record production in the second quarter of 2024 was due
in part to the record 47 gross (38.6 net) operated horizontal wells
turned to sales during the second quarter of 2024, which was the
most in Matador’s history. We successfully delivered strong well
results throughout our asset areas in the northern Delaware Basin,
including the 21 gross (19 net) Dagger Lake South wells in our
Antelope Ridge asset area that were acquired as part of the Advance
acquisition last year (see Slide G). These wells have
exceeded our expectations with 24-hour initial production test
results averaging 1,728 BOE per day (83% oil). We are pleased with
the teamwork of our production and midstream teams that worked
together to provide flow assurance by using the Pronto-to-San Mateo
natural gas connector pipeline installed in the first quarter of
this year. This connector allowed the Dagger Lake South wells and
Margarita wells acquired in the Advance acquisition to produce
without any constraints during the second quarter of 2024.
Continued Operational Efficiencies and
Teamwork
“In addition to record production performance, Matador also
achieved lower-than-expected costs during the second quarter of
2024. D/C/E capital expenditures during the second quarter of 2024
were $314.5 million, which was $25.5 million, or 8%, better than
our expectation of $340 million for the quarter. Approximately $10
million of this capital expenditure savings represent operational
efficiencies and cost savings while the remaining decrease is due
to timing of operations. In addition, our operations team set 20
drilling records during the second quarter of 2024 that saved an
estimated $6 million. We are pleased with the continued excellent
execution by the operations team that has now set a total of almost
300 drilling records with an estimated savings of approximately $50
million since the inception of our 24-hour MaxCom Operations Center
in 2018 (see Slide H).
“One example of the innovation and operational efficiencies by
Matador’s teams is the drilling of U-Turn wells. We drilled our
first two U-Turn wells in 2023 in our Wolf asset area. These two
wells continue to exceed our expectations and are producing similar
to traditional two-mile lateral wells but with better per-foot
costs than typical one-mile wells. We expect to turn to sales five
additional U-Turn wells during the second half of 2024 with
drilling savings exceeding $3 million per U-Turn well, or $15
million in the aggregate, as compared to drilling ten one-mile
lateral length wells (see Slide I). During the second
quarter of 2024, we drilled and cased the first and second of these
five additional U-Turn wells. Two additional U-Turn wells were
being drilled as of June 30, 2024 and our fifth U-Turn well for
2024 was spud in early July. We are excited to continue drilling
and completing U-Turn wells throughout our northern Delaware
position as appropriate opportunities present themselves.
“Matador also successfully performed its first ‘trimul-frac’
completion during the second quarter of 2024. We estimate that
‘trimul-frac’ completions save approximately $350,000 per well as
compared to conventional ‘zipper-frac’ operations. For the
remainder of 2024, Matador expects to complete its second
‘trimul-frac’ completion next month and has identified its first
‘remote trimul-frac’ test later in the third quarter of 2024.
Matador’s improved operational efficiencies, together with our
expectation of an increasingly competitive oilfield services market
in the second half of 2024, have enabled us to revise our full-year
2024 expected drilling and completion costs down to $960 per
completed lateral foot, which is an 11% decrease as compared to
full-year 2023 drilling and completion costs of $1,075 per
completed lateral foot.
40th Annual Meeting and Looking
Ahead
“Matador held its 40th Annual Meeting of Shareholders on June
13, 2024. We were pleased to see so many of you there and
appreciate your support as each of the proposals passed with nearly
90% support or better. Even though we are one of the top 10 oil and
natural gas producers in New Mexico with a current market
capitalization of approximately $8 billion, we still remember our
humble beginnings over 40 years ago when Matador was founded with
$270,000 from family and friends. Many of these original
shareholders or their families remain shareholders today. We are
grateful for their continued support as well as the support and
friendship of all of our shareholders over these many years. The
Board, management team and I would also like to especially thank
our staff, shareholders, banks, bondholders and other friends,
including our long-time vendors, that have helped us develop
Matador into its present size and competence. We anticipate a
strong finish to 2024 as we look forward to the various drilling
and acquisition opportunities in front of us in 2025. Going forward
under these circumstances, we like our chances to meet these
targets.”
Second Quarter 2024 Matador Operational and Financial
Highlights (for comparisons to prior periods, please see the
remainder of this press release)
- Average production of 160,305 BOE per day (95,488 barrels of
oil per day)
- Net cash provided by operating activities of $592.9
million
- Adjusted free cash flow of $167.0 million
- Net income of $228.8 million, or $1.83 per diluted common
share
- Adjusted net income of $255.9 million, or adjusted earnings of
$2.05 per diluted common share
- Adjusted EBITDA of $578.1 million
- San Mateo net income of $38.3 million
- San Mateo Adjusted EBITDA of $58.0 million
- D/C/E capital expenditures of $314.5 million
- Midstream capital expenditures of $45.3 million
All references to Matador’s net income, adjusted net income,
Adjusted EBITDA and adjusted free cash flow reported throughout
this earnings release are those values attributable to Matador
Resources Company shareholders after giving effect to any net
income, adjusted net income, Adjusted EBITDA or adjusted free cash
flow, respectively, attributable to third-party non-controlling
interests, including in San Mateo Midstream, LLC (“San Mateo”).
Matador owns 51% of San Mateo. For a definition of adjusted net
income, adjusted earnings per diluted common share, Adjusted EBITDA
and adjusted free cash flow and reconciliations of such non-GAAP
financial metrics to their comparable GAAP metrics, please see
“Supplemental Non-GAAP Financial Measures” below.
Operational and Financial Update
Second Quarter 2024
Record Oil, Natural Gas and Total Oil and
Natural Gas Equivalent Production
Matador’s total oil and natural gas production averaged 160,305
BOE per day in the second quarter of 2024, which was a 7%
sequential production increase from an average of 149,760 BOE per
day in the first quarter of 2024 and a 23% year-over-year increase
from an average of 130,683 BOE per day in the second quarter of
2023. Matador’s year-over-year increase in total average production
is due not only to the Advance acquisition that closed in April
2023 but also to increased production from new wells drilled by
Matador on its existing assets and undeveloped acreage. In fact,
Matador’s total oil and natural gas production during the second
quarter of 2024 exceeded Matador’s guidance expectations by 2% and
grew sequentially by 7%. On a year-to-year basis, Matador grew its
total oil and natural gas production by 23% as summarized in the
table below.
Production
Q2 2024
Average Daily
Volume
Q2 2024
Guidance
Range(1)
Difference(2)
Sequential(3)
YoY(4)
Total, BOE per day
160,305
156,500 to 158,000
+2% Better than Guidance
+7%
+23%
Oil, Bbl per day
95,488
92,500 to 93,500
+3% Better than Guidance
+13%
+25%
Natural Gas, MMcf per day
388.9
384.0 to 387.0
+1% Better than Guidance
Flat
+19%
(1)
Production range previously projected, as
provided on April 23, 2024.
(2)
As compared to midpoint of guidance
provided on April 23, 2024.
(3)
Represents sequential percentage change
from the first quarter of 2024.
(4)
Represents year-over-year percentage
change from the second quarter of 2023.
Second Quarter 2024 Realized Commodity
Prices
The following table summarizes Matador’s realized commodity
prices during the second quarter of 2024, as compared to the first
quarter of 2024 and the second quarter of 2023.
Sequential (Q2 2024 vs. Q1
2024)
YoY (Q2 2024 vs. Q2 2023)
Realized Commodity Prices
Q2 2024
Q1 2024
Sequential
Change(1)
Q2 2024
Q2 2023
YoY
Change(2)
Oil Prices, per Bbl
$81.20
$77.58
+5%
$81.20
$73.46
+11%
Natural Gas Prices, per Mcf
$2.00
$2.96
-32%
$2.00
$2.61
-23%
(1)
Second quarter 2024 as compared to first
quarter 2024.
(2)
Second quarter 2024 as compared to second
quarter 2023.
Second Quarter 2024 Operating
Expenses
Matador’s lease operating expenses (“LOE”) decreased 3%
sequentially from $5.60 per BOE in the first quarter of 2024 to
$5.42 per BOE in the second quarter of 2024. This decrease is due
in part to increased production volumes in the second quarter of
2024, partially offset by increased compression and equipment
rental expenses. The second quarter 2024 LOE of $5.42 per BOE was
consistent with Matador’s expected full-year 2024 LOE range of
$5.25 to $5.75 per BOE.
Matador’s general and administrative (“G&A”) expenses
decreased 12% sequentially from $2.18 per BOE in the first quarter
of 2024 to $1.91 per BOE in the second quarter of 2024, which was a
record low for Matador. This decrease is due in part to increased
production volumes and a decrease in the value of certain employee
stock awards that are settled in cash, which are measured at each
quarterly reporting period. The value of these cash-settled stock
awards decreased due to the 11% decrease in Matador’s share price
from $66.77 at the end of the first quarter of 2024 to $59.60 at
the end of the second quarter of 2024. Matador expects full-year
2024 G&A expenses to be between the midpoint and the low end of
its previous expected and announced range of $2.00 to $2.50 per
BOE.
Second Quarter 2024 Capital
Expenditures
Matador’s D/C/E capital expenditures of $314.5 million for the
second quarter of 2024 were approximately $25 million lower than
expected, of which approximately $10 million represents realized
D/C/E capital expenditure cost savings. Midstream capital
expenditures of $45.3 million for the second quarter of 2024 were
below Matador’s expectations of $60 million in total midstream
capital expenditures for the quarter, as approximately $15 million
in capital expenditures was deferred due to the timing of Pronto’s
midstream projects.
Q2 2024 Capital Expenditures
($ millions)
Actual
Guidance(1)
Difference vs. Guidance(2)
D/C/E
$314.5
$340.0
-8%
Midstream
$45.3
$60.0
-25%
(1)
Midpoint of guidance as provided on April
23, 2024.
(2)
As compared to the midpoint of guidance
provided on April 23, 2024.
Midstream Update
San Mateo’s operations in the second quarter of 2024 were
highlighted by better-than-expected operating and financial
results. These strong results primarily reflect
better-than-expected volumes delivered by third party customers
into the San Mateo system. San Mateo’s net income of $38.3 million
and Adjusted EBITDA of $58.0 million were each better than
expected.
The table below sets forth San Mateo’s throughput volumes, as
compared to the first quarter of 2024 and the second quarter of
2023.
Sequential (Q2 2024 vs. Q1
2024)
YoY (Q2 2024 vs. Q2 2023)
San Mateo Throughput Volumes
Q2 2024
Q1 2024
Change(1)
Q2 2024
Q2 2023
Change(2)
Natural gas gathering, MMcf per day
393
425
-8%
393
331
+19%
Natural gas processing, MMcf per day
355
399
-11%
355
373
-5%
Oil gathering and transportation, Bbl per
day
46,300
48,800
-5%
46,300
41,400
+12%
Produced water handling, Bbl per day
429,800
435,800
-1%
429,800
335,000
+28%
(1)
Second quarter 2024 as compared to first
quarter 2024.
(2)
Second quarter 2024 as compared to second
quarter 2023.
Third Quarter 2024 Estimates
Third Quarter 2024
Estimated Oil, Natural Gas and Total Oil
Equivalent Production Growth
As noted in the table below, Matador anticipates its average
daily oil equivalent production of 160,305 BOE per day in the
second quarter of 2024 to grow by 2% to a midpoint of approximately
164,000 BOE per day in the third quarter of 2024.
Q2 and Q3 2024 Production
Comparison
Period
Average Daily
Total Production,
BOE per day
Average Daily
Oil Production,
Bbl per day
Average Daily
Natural Gas Production,
MMcf per day
% Oil
Q2 2024
160,305
95,488
388.9
60%
Q3 2024E
163,000 to 165,000
96,500 to 97,500
399.0 to 405.0
59%
Third Quarter 2024 Estimated Wells
Turned to Sales
At July 23, 2024, Matador expects to turn to sales 32 gross
(26.5 net) operated horizontal wells in the Delaware Basin during
the third quarter of 2024, consisting of seven gross (7.0 net)
wells in the Antelope Ridge asset area, ten gross (8.0 net) wells
in the Arrowhead asset area, four gross (4.0 net) wells in the
Ranger asset area and 11 gross (7.5 net) wells in the Rustler
Breaks asset area.
Third Quarter 2024 Estimated Capital
Expenditures
Matador is currently operating nine drilling rigs in the
Delaware Basin and expects to operate nine drilling rigs for the
remainder of 2024. Matador expects that this ninth drilling rig
will add an incremental four gross (3.9 net) operated wells turned
to sales in late December 2024, which is expected to add
approximately 40,000 BOE to 2024 forecasted production. At July 23,
2024, Matador expects D/C/E capital expenditures for the third
quarter of 2024 will be approximately $330 to $370 million, which
is an 11% increase as compared to $314.5 million for the second
quarter of 2024. Matador expects full-year 2024 D/C/E capital
expenditures to be between the midpoint and the high end of its
previous expected range of $1.10 to $1.30 billion. Matador
estimates its proportionate share of midstream capital expenditures
to be approximately $45 to $65 million in the third quarter of
2024, which is a 21% increase as compared to $45.3 million in the
second quarter of 2024, primarily due to the timing of Pronto’s
2024 midstream projects. These capital expenditure estimates for
the third quarter of 2024 do not include capital expenditures
associated with the Ameredev properties.
Third Quarter 2024 Estimated Cash
Taxes
Matador continues to expect to make cash tax payments of
approximately 5 to 10% of pre-tax book net income for the year
ended December 31, 2024. The Company’s cash tax payments will be
dependent upon a variety of factors that will impact taxable income
that cannot be calculated at this time, including commodity prices,
weather, allowable tax deductions and any state or federal
legislative changes thereon, the Ameredev transaction and other
acquisitions, activity of offset operators and pipeline
restrictions as well as any deductions or tax credits generated and
earned that would offset tax liabilities in 2024.
Conference Call Information
The Company will host a live conference call on Wednesday, July
24, 2024, at 10:00 a.m. Central Time to review its second quarter
2024 operational and financial results. To access the live
conference call by phone, you can use the following link
https://register.vevent.com/register/BI99e8d92f0e8649da9231bc26e8812ede
and you will be provided with dial in details. To avoid delays, it
is recommended that participants dial into the conference call 15
minutes ahead of the scheduled start time.
The live conference call will also be available through the
Company’s website at www.matadorresources.com on the Events and
Presentations page under the Investor Relations tab. The replay for
the event will be available on the Company’s website at
www.matadorresources.com on the Events and Presentations page under
the Investor Relations tab for one year.
About Matador Resources Company
Matador is an independent energy company engaged in the
exploration, development, production and acquisition of oil and
natural gas resources in the United States, with an emphasis on oil
and natural gas shale and other unconventional plays. Its current
operations are focused primarily on the oil and liquids-rich
portion of the Wolfcamp and Bone Spring plays in the Delaware Basin
in Southeast New Mexico and West Texas. Matador also operates in
the Eagle Ford shale play in South Texas and the Haynesville shale
and Cotton Valley plays in Northwest Louisiana. Additionally,
Matador conducts midstream operations in support of its
exploration, development and production operations and provides
natural gas processing, oil transportation services, natural gas,
oil and produced water gathering services and produced water
disposal services to third parties.
For more information, visit Matador Resources Company at
www.matadorresources.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. “Forward-looking statements” are statements related to
future, not past, events. Forward-looking statements are based on
current expectations and include any statement that does not
directly relate to a current or historical fact. In this context,
forward-looking statements often address expected future business
and financial performance, and often contain words such as “could,”
“believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,”
“may,” “should,” “continue,” “plan,” “predict,” “potential,”
“project,” “hypothetical,” “forecasted” and similar expressions
that are intended to identify forward-looking statements, although
not all forward-looking statements contain such identifying words.
Such forward-looking statements include, but are not limited to,
statements about the consummation and timing of the Ameredev
acquisition, the anticipated benefits, opportunities and results
with respect to the acquisition, including any expected value
creation, reserves additions, midstream opportunities and other
anticipated impacts from the Ameredev acquisition, as well as other
aspects of the transaction, guidance, projected or forecasted
financial and operating results, future liquidity, the payment of
dividends, results in certain basins, objectives, project timing,
expectations and intentions, regulatory and governmental actions
and other statements that are not historical facts. Actual results
and future events could differ materially from those anticipated in
such statements, and such forward-looking statements may not prove
to be accurate. These forward-looking statements involve certain
risks and uncertainties, including, but not limited to, the ability
of the parties to consummate the Ameredev acquisition in the
anticipated timeframe or at all; risks related to the satisfaction
or waiver of the conditions to closing the Ameredev acquisition in
the anticipated timeframe or at all; risks related to obtaining the
requisite regulatory approvals for the Ameredev acquisition;
disruption from the Company’s acquisitions, including the Ameredev
acquisition, making it more difficult to maintain business and
operational relationships; significant transaction costs associated
with the Company’s acquisitions, including the Ameredev
acquisition; the risk of litigation and/or regulatory actions
related to the Company’s acquisitions, including the Ameredev
acquisition, as well as the following risks related to financial
and operational performance: general economic conditions; the
Company’s ability to execute its business plan, including whether
its drilling program is successful; changes in oil, natural gas and
natural gas liquids prices and the demand for oil, natural gas and
natural gas liquids; its ability to replace reserves and
efficiently develop current reserves; the operating results of the
Company’s midstream oil, natural gas and water gathering and
transportation systems, pipelines and facilities, the acquiring of
third-party business and the drilling of any additional salt water
disposal wells; costs of operations; delays and other difficulties
related to producing oil, natural gas and natural gas liquids;
delays and other difficulties related to regulatory and
governmental approvals and restrictions; impact on the Company’s
operations due to seismic events; its ability to make acquisitions
on economically acceptable terms; its ability to integrate
acquisitions, including the Ameredev acquisition; availability of
sufficient capital to execute its business plan, including from
future cash flows, available borrowing capacity under its revolving
credit facilities and otherwise; the operating results of and the
availability of any potential distributions from our joint
ventures; weather and environmental conditions; and the other
factors that could cause actual results to differ materially from
those anticipated or implied in the forward-looking statements. For
further discussions of risks and uncertainties, you should refer to
Matador’s filings with the Securities and Exchange Commission
(“SEC”), including the “Risk Factors” section of Matador’s most
recent Annual Report on Form 10-K and any subsequent Quarterly
Reports on Form 10-Q. Matador undertakes no obligation to update
these forward-looking statements to reflect events or circumstances
occurring after the date of this press release, except as required
by law, including the securities laws of the United States and the
rules and regulations of the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary
statement.
Selected Financial and Operating
Items
Sequential and year-over-year quarterly
comparisons of selected financial and operating items are shown in
the following table:
Three Months Ended
June 30,
2024
March 31,
2024
June 30,
2023
Net Production Volumes:(1)
Oil (MBbl)(2)
8,689
7,715
6,947
Natural gas (Bcf)(3)
35.4
35.5
29.7
Total oil equivalent (MBOE)(4)
14,588
13,628
11,892
Average Daily Production Volumes:(1)
Oil (Bbl/d)(5)
95,488
84,777
76,345
Natural gas (MMcf/d)(6)
388.9
389.9
326.0
Total oil equivalent (BOE/d)(7)
160,305
149,760
130,683
Average Sales Prices:
Oil, without realized derivatives (per
Bbl)
$
81.20
$
77.58
$
73.46
Oil, with realized derivatives (per
Bbl)
$
81.20
$
77.58
$
73.46
Natural gas, without realized derivatives
(per Mcf)(8)
$
2.00
$
2.96
$
2.61
Natural gas, with realized derivatives
(per Mcf)
$
2.11
$
2.97
$
2.51
Revenues (millions):
Oil and natural gas revenues
$
776.3
$
703.5
$
587.9
Third-party midstream services
revenues
$
32.7
$
32.4
$
30.1
Realized gain (loss) on derivatives
$
3.8
$
0.3
$
(3.1
)
Operating Expenses (per BOE):
Production taxes, transportation and
processing
$
5.27
$
5.15
$
5.21
Lease operating
$
5.42
$
5.60
$
5.13
Plant and other midstream services
operating
$
2.55
$
2.91
$
2.58
Depletion, depreciation and
amortization
$
15.49
$
15.58
$
14.93
General and administrative(9)
$
1.91
$
2.18
$
2.25
Total(10)
$
30.64
$
31.42
$
30.10
Other (millions):
Net sales of purchased natural gas(11)
$
11.0
$
10.0
$
4.8
Net income (millions)(12)
$
228.8
$
193.7
$
164.7
Earnings per common share
(diluted)(12)
$
1.83
$
1.61
$
1.37
Adjusted net income (millions)(12)(13)
$
255.9
$
206.2
$
170.1
Adjusted earnings per common share
(diluted)(12)(14)
$
2.05
$
1.71
$
1.42
Adjusted EBITDA (millions)(12)(15)
$
578.1
$
505.4
$
423.3
Net cash provided by operating activities
(millions)(16)
$
592.9
$
468.6
$
449.0
Adjusted free cash flow
(millions)(12)(17)
$
167.0
$
28.6
$
77.7
San Mateo net income (millions)(18)
$
38.3
$
39.7
$
25.4
San Mateo Adjusted EBITDA
(millions)(15)(18)
$
58.0
$
58.2
$
42.7
San Mateo net cash provided by operating
activities (millions)(18)
$
48.1
$
54.0
$
17.3
San Mateo adjusted free cash flow
(millions)(16)(17)(18)
$
35.2
$
34.7
$
20.6
D/C/E capital expenditures (millions)
$
314.5
$
350.7
$
309.6
Midstream capital expenditures
(millions)(19)
$
45.3
$
79.3
$
11.7
(1)
Production volumes reported in two
streams: oil and natural gas, including both dry and liquids-rich
natural gas.
(2)
One thousand barrels of oil.
(3)
One billion cubic feet of natural gas.
(4)
One thousand barrels of oil equivalent,
estimated using a conversion ratio of one barrel of oil per six
thousand cubic feet of natural gas.
(5)
Barrels of oil per day.
(6)
Millions of cubic feet of natural gas per
day.
(7)
Barrels of oil equivalent per day,
estimated using a conversion ratio of one barrel of oil per six
thousand cubic feet of natural gas.
(8)
Per thousand cubic feet of natural
gas.
(9)
Includes approximately $0.40, $0.21 and
$0.33 per BOE of non-cash, stock-based compensation expense in the
second quarter of 2024, the first quarter of 2023 and the second
quarter of 2023, respectively.
(10)
Total does not include the impact of
purchased natural gas or immaterial accretion expenses.
(11)
Net sales of purchased natural gas reflect
those natural gas purchase transactions that the Company
periodically enters into with third parties whereby the Company
purchases natural gas and (i) subsequently sells the natural gas to
other purchasers or (ii) processes the natural gas at either the
San Mateo or Pronto cryogenic natural gas processing plants and
subsequently sells the residue natural gas and natural gas liquids
to other purchasers. Such amounts reflect revenues from sales of
purchased natural gas of $46.3 million, $49.4 million and $31.9
million less expenses of $35.2 million, $39.4 million and $27.1
million in the second quarter of 2024, the first quarter of 2023
and the second quarter of 2023, respectively.
(12)
Attributable to Matador Resources Company
shareholders.
(13)
Adjusted net income is a non-GAAP
financial measure. For a definition of adjusted net income and a
reconciliation of adjusted net income (non-GAAP) to net income
(GAAP), please see “Supplemental Non-GAAP Financial Measures.”
(14)
Adjusted earnings per diluted common share
is a non-GAAP financial measure. For a definition of adjusted
earnings per diluted common share and a reconciliation of adjusted
earnings per diluted common share (non-GAAP) to earnings per
diluted common share (GAAP), please see “Supplemental Non-GAAP
Financial Measures.”
(15)
Adjusted EBITDA is a non-GAAP financial
measure. For a definition of Adjusted EBITDA and a reconciliation
of Adjusted EBITDA (non-GAAP) to net income (GAAP) and net cash
provided by operating activities (GAAP), please see “Supplemental
Non-GAAP Financial Measures.”
(16)
As reported for each period on a
consolidated basis, including 100% of San Mateo’s net cash provided
by operating activities.
(17)
Adjusted free cash flow is a non-GAAP
financial measure. For a definition of adjusted free cash flow and
a reconciliation of adjusted free cash flow (non-GAAP) to net cash
provided by operating activities (GAAP), please see “Supplemental
Non-GAAP Financial Measures.”
(18)
Represents 100% of San Mateo’s net income,
Adjusted EBITDA, net cash provided by operating activities or
adjusted free cash flow for each period reported.
(19)
Includes Matador’s share of estimated
capital expenditures for San Mateo and other wholly-owned midstream
projects, including projects completed by Pronto.
Matador Resources Company and
Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS -
UNAUDITED
(In thousands, except par value and share
data)
June 30,
2024
December 31,
2023
ASSETS
Current assets
Cash
$
15,242
$
52,662
Restricted cash
48,661
53,636
Accounts receivable
Oil and natural gas revenues
294,019
274,192
Joint interest billings
204,931
163,660
Other
29,090
35,102
Derivative instruments
5,590
2,112
Lease and well equipment inventory
38,046
41,808
Prepaid expenses and other current
assets
102,861
92,700
Total current assets
738,440
715,872
Property and equipment, at cost
Oil and natural gas properties, full-cost
method
Evaluated
10,376,411
9,633,757
Unproved and unevaluated
1,478,247
1,193,257
Midstream properties
1,448,343
1,318,015
Other property and equipment
41,995
40,375
Less accumulated depletion, depreciation
and amortization
(5,667,208
)
(5,228,963
)
Net property and equipment
7,677,788
6,956,441
Other assets
Derivative instruments
2,030
558
Other long-term assets
100,133
54,125
Total other assets
102,163
54,683
Total assets
$
8,518,391
$
7,726,996
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable
$
96,241
$
68,185
Accrued liabilities
388,353
365,848
Royalties payable
195,795
161,983
Amounts due to affiliates
19,576
28,688
Derivative instruments
14,704
—
Advances from joint interest owners
56,439
19,954
Other current liabilities
85,433
40,617
Total current liabilities
856,541
685,275
Long-term liabilities
Borrowings under Credit Agreement
95,000
500,000
Borrowings under San Mateo Credit
Facility
512,000
522,000
Senior unsecured notes payable
1,374,596
1,184,627
Asset retirement obligations
93,952
87,485
Deferred income taxes
673,955
581,439
Other long-term liabilities
56,742
38,482
Total long-term liabilities
2,806,245
2,914,033
Shareholders’ equity
Common stock - $0.01 par value,
160,000,000 shares authorized; 124,885,730 and 119,478,282 shares
issued; and 124,811,349 and 119,458,674 shares outstanding,
respectively
1,249
1,194
Additional paid-in capital
2,483,075
2,133,172
Retained earnings
2,150,292
1,776,541
Treasury stock, at cost, 74,381 and 19,608
shares, respectively
(2,990
)
(45
)
Total Matador Resources Company
shareholders’ equity
4,631,626
3,910,862
Non-controlling interest in
subsidiaries
223,979
216,826
Total shareholders’ equity
4,855,605
4,127,688
Total liabilities and shareholders’
equity
$
8,518,391
$
7,726,996
Matador Resources Company and
Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME - UNAUDITED
(In thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Revenues
Oil and natural gas revenues
$
776,279
$
587,917
$
1,479,819
$
1,090,826
Third-party midstream services
revenues
32,651
30,075
65,008
56,586
Sales of purchased natural gas
46,265
31,898
95,711
66,152
Realized gain (loss) on derivatives
3,770
(3,148
)
4,045
521
Unrealized loss on derivatives
(11,829
)
(8,659
)
(9,754
)
(15,726
)
Total revenues
847,136
638,083
1,634,829
1,198,359
Expenses
Production taxes, transportation and
processing
76,812
61,991
146,965
117,477
Lease operating
79,030
61,043
155,325
105,450
Plant and other midstream services
operating
37,258
30,657
76,881
61,702
Purchased natural gas
35,240
27,103
74,672
55,551
Depletion, depreciation and
amortization
225,934
177,514
438,245
303,839
Accretion of asset retirement
obligations
1,329
792
2,602
1,491
General and administrative
27,913
26,715
57,566
49,148
Total expenses
483,516
385,815
952,256
694,658
Operating income
363,620
252,268
682,573
503,701
Other income (expense)
Net loss on impairment
—
(202
)
—
(202
)
Interest expense
(35,986
)
(34,229
)
(75,548
)
(50,405
)
Other (expense) income
(2,121
)
16,564
(1,544
)
16,903
Total other expense
(38,107
)
(17,867
)
(77,092
)
(33,704
)
Income before income taxes
325,513
234,401
605,481
469,997
Income tax provision (benefit)
Current
30,104
(4,929
)
47,376
—
Deferred
47,882
62,235
97,388
113,978
Total income tax provision
77,986
57,306
144,764
113,978
Net income
247,527
177,095
460,717
356,019
Net income attributable to non-controlling
interest in subsidiaries
(18,758
)
(12,429
)
(38,219
)
(28,223
)
Net income attributable to Matador
Resources Company shareholders
$
228,769
$
164,666
$
422,498
$
327,796
Earnings per common share
Basic
$
1.83
$
1.38
$
3.46
$
2.75
Diluted
$
1.83
$
1.37
$
3.45
$
2.73
Weighted average common shares
outstanding
Basic
124,786
119,183
122,253
119,109
Diluted
124,896
119,842
122,438
119,856
Matador Resources Company and
Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS - UNAUDITED
(In thousands)
Three Months Ended
June 30,
Six Months Ended
June 30,
2024
2023
2024
2023
Operating activities
Net income
$
247,527
$
177,095
$
460,717
$
356,019
Adjustments to reconcile net income to net
cash provided by operating activities
Unrealized loss on derivatives
11,829
8,659
9,754
15,726
Depletion, depreciation and
amortization
225,934
177,514
438,245
303,839
Accretion of asset retirement
obligations
1,329
792
2,602
1,491
Stock-based compensation expense
2,974
3,931
5,812
6,221
Deferred income tax provision
47,882
62,235
97,388
113,978
Amortization of debt issuance cost and
other debt-related costs
4,942
2,057
9,586
2,895
Other non-cash changes
(331
)
(15,682
)
(664
)
(15,682
)
Changes in operating assets and
liabilities
Accounts receivable
433
15,501
(55,086
)
56,407
Lease and well equipment inventory
(5,336
)
(2,814
)
(7,380
)
(7,237
)
Prepaid expenses and other current
assets
1,794
(7,607
)
320
(24,124
)
Other long-term assets
(410
)
2,037
(156
)
2,072
Accounts payable, accrued liabilities and
other current liabilities
19,646
11,639
14,832
(28,232
)
Royalties payable
17,289
9,709
33,811
10,085
Advances from joint interest owners
18,714
4,826
36,485
(4,979
)
Income taxes payable
(2,179
)
(2,400
)
13,846
(1,677
)
Other long-term liabilities
890
1,519
1,377
1,709
Net cash provided by operating
activities
592,927
449,011
1,061,489
788,511
Investing activities
Drilling, completion and equipping capital
expenditures
(375,076
)
(315,367
)
(611,715
)
(539,511
)
Acquisition of Advance
—
(1,528,427
)
—
(1,608,427
)
Acquisition of Ameredev
(95,250
)
—
(95,250
)
—
Acquisition of oil and natural gas
properties
(53,846
)
(32,034
)
(256,110
)
(55,897
)
Midstream capital expenditures
(52,115
)
(18,730
)
(157,201
)
(32,871
)
Expenditures for other property and
equipment
(545
)
(709
)
(771
)
(2,478
)
Proceeds from sale of assets
—
—
900
451
Net cash used in investing activities
(576,832
)
(1,895,267
)
(1,120,147
)
(2,238,733
)
Financing activities
Repayments of borrowings under Credit
Agreement
(790,000
)
(2,190,000
)
(1,720,000
)
(2,190,000
)
Borrowings under Credit Agreement
625,000
2,750,000
1,315,000
2,750,000
Repayments of borrowings under San Mateo
Credit Facility
(71,000
)
(53,000
)
(136,000
)
(108,000
)
Borrowings under San Mateo Credit
Facility
57,000
38,000
126,000
103,000
Cost to amend credit facilities
(132
)
—
(11,424
)
(8,645
)
Proceeds from issuance of senior unsecured
notes
900,000
494,800
900,000
494,800
Cost to issue senior unsecured notes
(15,621
)
(8,255
)
(15,621
)
(8,255
)
Purchase of senior unsecured notes
(699,191
)
—
(699,191
)
—
Proceeds from issuance of common stock
—
—
344,663
—
Cost to issue equity
(2,513
)
—
(2,566
)
—
Dividends paid
(24,889
)
(17,917
)
(48,747
)
(35,685
)
Contributions related to formation of San
Mateo
8,750
—
10,250
14,700
Contributions from non-controlling
interest owners of less-than-wholly-owned subsidiaries
11,760
24,500
19,110
24,500
Distributions to non-controlling interest
owners of less-than-wholly-owned subsidiaries
(24,451
)
(25,333
)
(50,176
)
(44,443
)
Taxes paid related to net share settlement
of stock-based compensation
(925
)
(3,881
)
(14,440
)
(22,790
)
Other
(306
)
(248
)
(595
)
(452
)
Net cash (used in) provided by financing
activities
(26,518
)
1,008,666
16,263
968,730
Change in cash and restricted cash
(10,423
)
(437,590
)
(42,395
)
(481,492
)
Cash and restricted cash at beginning of
period
74,326
503,428
106,298
547,330
Cash and restricted cash at end of
period
$
63,903
$
65,838
$
63,903
$
65,838
Supplemental Non-GAAP Financial Measures
Adjusted EBITDA
This press release includes the non-GAAP financial measure of
Adjusted EBITDA. Adjusted EBITDA is a supplemental non-GAAP
financial measure that is used by management and external users of
the Company’s consolidated financial statements, such as securities
analysts, investors, lenders and rating agencies. “GAAP” means
Generally Accepted Accounting Principles in the United States of
America. The Company believes Adjusted EBITDA helps it evaluate its
operating performance and compare its results of operations from
period to period without regard to its financing methods or capital
structure. The Company defines, on a consolidated basis and for San
Mateo, Adjusted EBITDA as earnings before interest expense, income
taxes, depletion, depreciation and amortization, accretion of asset
retirement obligations, property impairments, unrealized derivative
gains and losses, non-recurring transaction costs for certain
acquisitions, certain other non-cash items and non-cash stock-based
compensation expense and net gain or loss on asset sales and
impairment. Adjusted EBITDA is not a measure of net income or net
cash provided by operating activities as determined by GAAP. All
references to Matador’s Adjusted EBITDA are those values
attributable to Matador Resources Company shareholders after giving
effect to Adjusted EBITDA attributable to third-party
non-controlling interests, including in San Mateo.
Adjusted EBITDA should not be considered an alternative to, or
more meaningful than, net income or net cash provided by operating
activities as determined in accordance with GAAP or as an indicator
of the Company’s operating performance or liquidity. Certain items
excluded from Adjusted EBITDA are significant components of
understanding and assessing a company’s financial performance, such
as a company’s cost of capital and tax structure. Adjusted EBITDA
may not be comparable to similarly titled measures of another
company because all companies may not calculate Adjusted EBITDA in
the same manner. The following table presents the calculation of
Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the
GAAP financial measures of net income and net cash provided by
operating activities, respectively, that are of a historical
nature. Where references are pro forma, forward-looking,
preliminary or prospective in nature, and not based on historical
fact, the table does not provide a reconciliation. The Company
could not provide such reconciliation without undue hardship
because such Adjusted EBITDA numbers are estimations,
approximations and/or ranges. In addition, it would be difficult
for the Company to present a detailed reconciliation on account of
many unknown variables for the reconciling items, including future
income taxes, full-cost ceiling impairments, unrealized gains or
losses on derivatives and gains or losses on asset sales and
impairment. For the same reasons, the Company is unable to address
the probable significance of the unavailable information, which
could be material to future results.
Adjusted EBITDA – Matador Resources
Company
Three Months Ended
June 30,
March 31,
June 30,
(In thousands)
2024
2024
2023
Unaudited Adjusted EBITDA
Reconciliation to Net Income:
Net income attributable to Matador
Resources Company shareholders
$
228,769
$
193,729
$
164,666
Net income attributable to non-controlling
interest in subsidiaries
18,758
19,461
12,429
Net income
247,527
213,190
177,095
Interest expense
35,986
39,562
34,229
Total income tax provision
77,986
66,778
57,306
Depletion, depreciation and
amortization
225,934
212,311
177,514
Accretion of asset retirement
obligations
1,329
1,273
792
Unrealized loss (gain) on derivatives
11,829
(2,075
)
8,659
Non-cash stock-based compensation
expense
2,974
2,838
3,931
Net loss on impairment
—
—
202
Expense (income) related to contingent
consideration and other
2,933
—
(15,577
)
Consolidated Adjusted EBITDA
606,498
533,877
444,151
Adjusted EBITDA attributable to
non-controlling interest in subsidiaries
(28,425
)
(28,507
)
(20,900
)
Adjusted EBITDA attributable to Matador
Resources Company shareholders
$
578,073
$
505,370
$
423,251
Three Months Ended
June 30,
March 31,
June 30,
(In thousands)
2024
2024
2023
Unaudited Adjusted EBITDA
Reconciliation to Net Cash Provided by Operating
Activities:
Net cash provided by operating
activities
$
592,927
$
468,562
$
449,011
Net change in operating assets and
liabilities
(50,841
)
12,792
(32,410
)
Interest expense, net of non-cash
portion
31,044
34,918
32,172
Current income tax provision (benefit)
30,104
17,272
(4,929
)
Other non-cash and non-recurring
expense
3,264
333
307
Adjusted EBITDA attributable to
non-controlling interest in subsidiaries
(28,425
)
(28,507
)
(20,900
)
Adjusted EBITDA attributable to Matador
Resources Company shareholders
$
578,073
$
505,370
$
423,251
Adjusted EBITDA – San Mateo (100%)
Three Months Ended
June 30,
March 31,
June 30,
(In thousands)
2024
2024
2023
Unaudited Adjusted EBITDA
Reconciliation to Net Income:
Net income
$
38,285
$
39,718
$
25,365
Depletion, depreciation and
amortization
9,237
9,170
8,675
Interest expense
9,189
9,193
8,533
Accretion of asset retirement
obligations
99
97
80
Non-recurring expense
1,200
—
—
Adjusted EBITDA
$
58,010
$
58,178
$
42,653
Three Months Ended
June 30,
March 31,
June 30,
(In thousands)
2024
2024
2023
Unaudited Adjusted EBITDA
Reconciliation to Net Cash Provided by Operating
Activities:
Net cash provided by operating
activities
$
48,052
$
54,005
$
17,326
Net change in operating assets and
liabilities
(154
)
(4,746
)
17,043
Interest expense, net of non-cash
portion
8,912
8,919
8,284
Non-recurring expense
1,200
—
—
Adjusted EBITDA
$
58,010
$
58,178
$
42,653
Adjusted Net Income and Adjusted Earnings
Per Diluted Common Share
This press release includes the non-GAAP financial measures of
adjusted net income and adjusted earnings per diluted common share.
These non-GAAP items are measured as net income attributable to
Matador Resources Company shareholders, adjusted for dollar and per
share impact of certain items, including unrealized gains or losses
on derivatives, the impact of full cost-ceiling impairment charges,
if any, and non-recurring transaction costs for certain
acquisitions or other non-recurring income or expense items, along
with the related tax effect for all periods. This non-GAAP
financial information is provided as additional information for
investors and is not in accordance with, or an alternative to, GAAP
financial measures. Additionally, these non-GAAP financial measures
may be different than similar measures used by other companies. The
Company believes the presentation of adjusted net income and
adjusted earnings per diluted common share provides useful
information to investors, as it provides them an additional
relevant comparison of the Company’s performance across periods and
to the performance of the Company’s peers. In addition, these
non-GAAP financial measures reflect adjustments for items of income
and expense that are often excluded by securities analysts and
other users of the Company’s financial statements in evaluating the
Company’s performance. The table below reconciles adjusted net
income and adjusted earnings per diluted common share to their most
directly comparable GAAP measure of net income attributable to
Matador Resources Company shareholders.
Three Months Ended
June 30,
March 31,
June 30,
2024
2024
2023
(In thousands, except per share data)
Unaudited Adjusted Net Income and
Adjusted Earnings Per Share Reconciliation to Net
Income:
Net income attributable to Matador
Resources Company shareholders
$
228,769
$
193,729
$
164,666
Total income tax provision
77,986
66,778
57,306
Income attributable to Matador Resources
Company shareholders before taxes
306,755
260,507
221,972
Less non-recurring and unrealized charges
to income before taxes:
Unrealized loss (gain) on derivatives
11,829
(2,075
)
8,659
Net loss on impairment
—
—
202
Expense (income) related to contingent
consideration and other
5,359
2,580
(15,577
)
Adjusted income attributable to Matador
Resources Company shareholders before taxes
323,943
261,012
215,256
Income tax expense(1)
68,028
54,813
45,204
Adjusted net income attributable to
Matador Resources Company shareholders (non-GAAP)
$
255,915
$
206,199
$
170,052
Weighted average shares outstanding -
basic
124,786
119,721
119,183
Dilutive effect of options and restricted
stock units
110
532
659
Weighted average common shares outstanding
- diluted
124,896
120,253
119,842
Adjusted earnings per share attributable
to Matador Resources Company shareholders (non-GAAP)
Basic
$
2.05
$
1.72
$
1.43
Diluted
$
2.05
$
1.71
$
1.42
(1) Estimated using federal statutory tax
rate in effect for the period.
Adjusted Free Cash Flow
This press release includes the non-GAAP financial measure of
adjusted free cash flow. This non-GAAP item is measured, on a
consolidated basis for the Company and for San Mateo, as net cash
provided by operating activities, adjusted for changes in working
capital and cash performance incentives that are not included as
operating cash flows, less cash flows used for capital
expenditures, adjusted for changes in capital accruals. On a
consolidated basis, these numbers are also adjusted for the cash
flows related to non-controlling interest in subsidiaries that
represent cash flows not attributable to Matador shareholders.
Adjusted free cash flow should not be considered an alternative to,
or more meaningful than, net cash provided by operating activities
as determined in accordance with GAAP or an indicator of the
Company’s liquidity. Adjusted free cash flow is used by the
Company, securities analysts and investors as an indicator of the
Company’s ability to manage its operating cash flow, internally
fund its D/C/E capital expenditures, pay dividends and service or
incur additional debt, without regard to the timing of settlement
of either operating assets and liabilities or accounts payable
related to capital expenditures. Additionally, this non-GAAP
financial measure may be different than similar measures used by
other companies. The Company believes the presentation of adjusted
free cash flow provides useful information to investors, as it
provides them an additional relevant comparison of the Company’s
performance, sources and uses of capital associated with its
operations across periods and to the performance of the Company’s
peers. In addition, this non-GAAP financial measure reflects
adjustments for items of cash flows that are often excluded by
securities analysts and other users of the Company’s financial
statements in evaluating the Company’s cash spend.
The table below reconciles adjusted free cash flow to its most
directly comparable GAAP measure of net cash provided by operating
activities. All references to Matador’s adjusted free cash flow are
those values attributable to Matador shareholders after giving
effect to adjusted free cash flow attributable to third-party
non-controlling interests, including in San Mateo.
Adjusted Free Cash Flow - Matador
Resources Company
Three Months Ended
June 30,
March 31,
June 30,
(In thousands)
2024
2024
2023
Net cash provided by operating
activities
$
592,927
$
468,562
$
449,011
Net change in operating assets and
liabilities
(50,841
)
12,792
(32,410
)
San Mateo discretionary cash flow
attributable to non-controlling interest in subsidiaries(1)
(23,470
)
(24,137
)
(16,841
)
Performance incentives received from Five
Point
8,750
1,500
—
Total discretionary cash flow
527,366
458,717
399,760
Drilling, completion and equipping capital
expenditures
375,076
236,639
315,367
Midstream capital expenditures
52,115
105,086
18,730
Expenditures for other property and
equipment
545
226
709
Net change in capital accruals
(61,168
)
95,342
(5,985
)
San Mateo accrual-based capital
expenditures related to non-controlling interest in
subsidiaries(2)
(6,220
)
(7,138
)
(6,752
)
Total accrual-based capital
expenditures(3)
360,348
430,155
322,069
Adjusted free cash flow
$
167,018
$
28,562
$
77,691
(1)
Represents Five Point Energy LLC’s (“Five
Point”) 49% interest in San Mateo discretionary cash flow, as
computed below.
(2)
Represents Five Point’s 49% interest in
accrual-based San Mateo capital expenditures, as computed
below.
(3)
Represents drilling, completion and
equipping costs, Matador’s share of San Mateo capital expenditures
plus 100% of other midstream capital expenditures not associated
with San Mateo.
Adjusted Free Cash Flow - San Mateo
(100%)
Three Months Ended
June 30,
March 31,
June 30,
(In thousands)
2024
2024
2023
Net cash provided by San Mateo operating
activities
$
48,052
$
54,005
$
17,326
Net change in San Mateo operating assets
and liabilities
(154
)
(4,746
)
17,043
Total San Mateo discretionary cash
flow
47,898
49,259
34,369
San Mateo capital expenditures
11,215
23,211
12,006
Net change in San Mateo capital
accruals
1,479
(8,644
)
1,774
San Mateo accrual-based capital
expenditures
12,694
14,567
13,780
San Mateo adjusted free cash flow
$
35,204
$
34,692
$
20,589
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723803037/en/
Mac Schmitz Senior Vice President - Investor Relations (972)
371-5225 investors@matadorresources.com
Grafico Azioni Matador Resources (NYSE:MTDR)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Matador Resources (NYSE:MTDR)
Storico
Da Gen 2024 a Gen 2025
