Matador Resources Company Provides Operational Update
Matador released today a summary of the 24-hour Initial Potential (IP)
test results for wells it has drilled and completed in 2012, including
the eleven most recent Eagle Ford wells it has completed and placed on
production since its operational update providing similar information on
As noted in the
IP data points should not be used alone to make an investment decision, but these points are provided in an effort to show the overall results of the Company’s Eagle Ford drilling program in 2012. As to future releases, Matador does not expect to release IP data as each well is drilled but rather once or twice a year in an effort to provide more comprehensive information and perspective about its overall drilling program.
The Company is also pleased to announce that its average production rate
during the month of
As discussed in its
Finally, the Company announced an increase in its borrowing base to
There are no other changes to the Company’s guidance for its 2012 or
2013 results. Please click the link below for Exhibit B, which shows oil
and natural gas revenues and Adjusted EBITDA for the years ended 2007
through 2011 and estimated oil and natural gas revenues and Adjusted
EBITDA for the years ended 2012 and 2013 announced at the Company’s
Analyst Day on
Click here for Exhibit A and Exhibit B.
Matador Operated Eagle Ford Completion Results | |||||||||||||||||||||
24 Hour IP Tests | |||||||||||||||||||||
Well Name | County | Completion Date | Perforated Length(1) | Top Perf(2) | Frac Stages | Oil IP(3)(4) | Gas IP(3)(4) | Oil Equiv IP(5) | Choke | Pressure | |||||||||||
Total (ft.) | (ft.) | (Bbl/day) | (Mcf/day) | (BOE/day) | (inch) | (psi) | |||||||||||||||
2012 Wells | |||||||||||||||||||||
Martin Ranch A 8H | La Salle | 1/28/2012 | 6,092 | 9,559 | 21 | 1,089 | 831 | 1,228 | 26/64 | 1,750 | |||||||||||
Martin Ranch A 6H | La Salle | 2/8/2012 | 6,509 | 9,550 | 22 | 689 | 1,714 | 975 | 26/64 | 1,650 | |||||||||||
Martin Ranch A 7H | La Salle | 2/12/2012 | 4,902 | 9,502 | 17 | 609 | 481 | 689 | 26/64 | 1,040 | |||||||||||
Martin Ranch B 4H | La Salle | 2/18/2012 | 3,801 | 9,701 | 13 | 595 | 968 | 756 | 26/64 | 1,320 | |||||||||||
Matador Sickenius Orca 1H | Karnes | 3/16/2012 | 5,712 | 10,897 | 19 | 785 | 540 | 875 | 26/64 | 820 | |||||||||||
Northcut A 1H | La Salle | 3/23/2012 | 4,446 | 9,209 | 15 | 583 | 592 | 682 | 26/64 | 1,000 | |||||||||||
Matador Danysh Orca 1H | Karnes | 4/1/2012 | 4,962 | 11,537 | 17 | 1,012 | 1,126 | 1,200 | 26/64 | 1,175 | |||||||||||
Northcut A 2H | La Salle | 5/1/2012 | 4,503 | 9,273 | 15 | 758 | 761 | 885 | 24/64 | 950 | |||||||||||
Matador Pawelek Orca 1H | Karnes | 6/5/2012 | 6,103 | 11,231 | 20 | 670 | 739 | 793 | 16/64 | 2,510 | |||||||||||
Matador Pawelek Orca 2H | Karnes | 6/7/2012 | 6,202 | 11,240 | 28 | 861 | 755 | 987 | 16/64 | 2,460 | |||||||||||
Matador Danysh Orca 2H | Karnes | 6/10/2012 | 5,115 | 11,331 | 17 | 750 | 746 | 874 | 16/64 | 2,675 | |||||||||||
Glasscock Ranch 1H | Zavala | 6/27/2012 | 5,352 | 7,166 | 18 | 307 | 0 | 307 | pump | 140 | |||||||||||
Matador K. Love Orca 1H | DeWitt | 8/10/2012 | 5,077 | 13,048 | 17 | 1,793 | 2,171 | 2,155 | 16/64 | 5,280 | |||||||||||
Matador K. Love Orca 2H | DeWitt | 8/11/2012 | 4,871 | 12,830 | 17 | 1,757 | 2,126 | 2,111 | 16/64 | 5,900 | |||||||||||
Northcut B 2H |
La Salle |
9/6/2012 | 4,777 | 9,131 | 16 | 410 | 315 | 463 | 16/64 | 1,175 | |||||||||||
Northcut B 1H |
La Salle |
9/12/2012 | 4,798 | 9,085 | 16 | 423 | 169 | 451 | 16/64 | 1,500 | |||||||||||
Matador Sickenius Orca 2H | Karnes | 9/16/2012 | 5,982 | 10,829 | 25 | 851 | 556 | 944 | 16/64 | 2,000 | |||||||||||
Martin Ranch A 12H |
La Salle |
10/4/2012 | 4,897 | 9,507 | 21 | 640 | 1,955 | 966 | 16/64 | 1,680 | |||||||||||
Matador K. Love Orca 4H | DeWitt | 11/4/2012 | 4,012 | 12,611 | 14 | 1,509 | 841 | 1,649 | 16/64 | 4,900 | |||||||||||
Matador K. Love Orca 3H | DeWitt | 11/6/2012 | 4,777 | 12,787 | 16 | 1,456 | 1,585 | 1,720 | 16/64 | 4,775 | |||||||||||
Martin Ranch B 13H |
La Salle |
11/22/2012 | 5,364 | 9,476 | 23 | 519 | 162 | 546 | 14/64 | 2,125 | |||||||||||
Martin Ranch B 9RH |
La Salle |
11/25/2012 | 5,364 | 9,428 | 23 | 482 | 240 | 522 | 14/64 | 2,000 | |||||||||||
Frances Lewton 2H | DeWitt | 12/5/2012 | 6,277 | 13,072 | 21 | 1,178 | 4,203 | 1,879 | 14/64 | 6,150 | |||||||||||
Matador Cowey Orca 1H | DeWitt | 12/9/2012 | 3,332 | 13,593 | 13 | 580 | 3,325 | 1,134 | 12/64 | 8,000 | |||||||||||
Northcut A 4H |
La Salle |
12/18/2012 | 4,592 | 9,069 | 16 | 395 | 139 | 418 | 14/64 | 1,580 | |||||||||||
Average | 5,113 | 18.4 | 828 Bbl/day | 1,082 Mcf/day | 1,008 BOE/day | ||||||||||||||||
1) Total length of perforated lateral from the first perforation to the last perforation | |||||||||||||||||||||
2) Top perf is measured depth | |||||||||||||||||||||
3) Rates as reported to the Texas Railroad Commission via W-2 or G-1 form | |||||||||||||||||||||
4) Rates are based on actual, stabilized, 24 hour production on a constant choke size | |||||||||||||||||||||
5) Oil equivalent rates are based on a 6:1 ratio of six Mcf gas per one Bbl oil | |||||||||||||||||||||
PV-10 Reconciliation
PV-10 is a non-GAAP financial measure and generally differs from
Standardized Measure, the most directly comparable GAAP financial
measure, because it does not include the effects of income taxes on
future net revenues. PV-10 is not an estimate of the fair market value
of our properties. Matador and others in the industry use PV-10 as a
measure to compare the relative size and value of proved reserves held
by companies and of the potential return on investment related to the
companies’ properties without regard to the specific tax characteristics
of such entities. The PV-10 at
Adjusted EBITDA Reconciliation
This press release includes the non-GAAP financial measure of Adjusted EBITDA. We believe Adjusted EBITDA helps us evaluate our operating performance and compare our results of operation from period to period without regard to our financing methods or capital structure. We define 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, certain other non-cash items and non-cash stock-based compensation expense, including stock option and grant expense and restricted stock and restricted stock units expense, and net gain or loss on asset sales and inventory impairment. Adjusted EBITDA is not a measure of net (loss) income or cash flows as determined by GAAP. Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flows from operating activities as determined in accordance with GAAP or as an indicator of our operating performance or liquidity.
The following table presents our calculation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the GAAP financial measures of net income (loss) and net cash provided by operating activities, respectively, that are of a historical nature. Where references are forward-looking or prospective in nature, and not based on historical fact, the table does not provide a reconciliation. We could not provide such reconciliations without undue hardship because the Adjusted EBITDA numbers included in this press release are estimations, approximations and/or ranges. In addition, it would be difficult for us to present a detailed reconciliation on account of many unknown variables for the reconciling items.
Year Ended December 31, | |||||||||||||||||||||
(In thousands) | 2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||
Unaudited Adjusted EBITDA reconciliation to Net Income (Loss): | |||||||||||||||||||||
Net (loss) income | ($300 | ) | $ | 103,878 | ($14,425 | ) | $ | 6,377 | ($10,309 | ) | |||||||||||
Interest expense | - | - | - | 3 | 683 | ||||||||||||||||
Total income tax provision (benefit) | - | 20,023 | (9,925 | ) | 3,521 | (5,521 | ) | ||||||||||||||
Depletion, depreciation and amortization | 7,889 | 12,127 | 10,743 | 15,596 | 31,754 | ||||||||||||||||
Accretion of asset retirement obligations | 70 | 92 | 137 | 155 | 209 | ||||||||||||||||
Full-cost ceiling impairment | - | 22,195 | 25,244 | - | 35,673 | ||||||||||||||||
Unrealized loss (gain) on derivatives | 211 | (3,592 | ) | 2,375 | (3,139 | ) | (5,138 | ) | |||||||||||||
Stock option and grant expense | 205 | 605 | 622 | 824 | 2,362 | ||||||||||||||||
Restricted stock grants | 15 | 60 | 34 | 74 | 44 | ||||||||||||||||
Net loss (gain) on asset sales and inventory impairment | - | (136,977 | ) | 379 | 224 | 154 | |||||||||||||||
Adjusted EBITDA | $ | 8,090 | $ | 18,411 | $ | 15,184 | $ | 23,635 | $ | 49,911 | |||||||||||
Year Ended December 31, | |||||||||||||||||||||
(In thousands) | 2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||
Unaudited Adjusted EBITDA reconciliation to Net Cash Provided by Operating Activities: |
|||||||||||||||||||||
Net cash provided by operating activities | $ | 7,881 | $ | 25,851 | $ | 1,791 | $ | 27,273 | $ | 61,868 | |||||||||||
Net change in operating assets and liabilities | 209 | (17,888 | ) | 15,717 | (2,230 | ) | (12,594 | ) | |||||||||||||
Interest expense | - | - | - | 3 | 683 | ||||||||||||||||
Current income tax provision (benefit) | - | 10,448 | (2,324 | ) | (1,411 | ) | (46 | ) | |||||||||||||
Adjusted EBITDA | $ | 8,090 | $ | 18,411 | $ | 15,184 | $ | 23,635 | $ | 49,911 | |||||||||||
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" and similar expressions that are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. 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 following risks
related to financial and operational performance: general economic
conditions; our ability to execute our business plan, including whether
our 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; ability to replace reserves and efficiently develop
current reserves; costs of operations; delays and other difficulties
related to producing oil, natural gas and natural gas liquids; ability
to make acquisitions on economically acceptable terms; availability of
sufficient capital to execute our business plan, including from future
cash flows, increases in borrowing base and otherwise; weather and
environmental concerns; and other important factors which 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
About
Matador is an independent energy company engaged in the exploration,
development, production and acquisition of oil and natural gas resources
in
For more information visit
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130107005425/en/
Source:
Matador Resources Company
Mac Schmitz, 972-371-5225
Investor
Relations
mschmitz@matadorresources.com