DALLAS--(BUSINESS WIRE)--Oct. 17, 2019-- Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today provided an update regarding its federal leasehold position in the Delaware Basin. This update is intended to provide additional information and clarity regarding the Company’s future oil and natural gas development on federal lands.

At June 30, 2019, Matador held approximately 132,700 net leasehold and mineral acres in the Delaware Basin in Eddy and Lea Counties, New Mexico and in Loving County, Texas, of which approximately 34,700 net acres, or about one-quarter, were on federal lands. Approximately 98,000 net acres, or about three-quarters, of the Company’s Delaware Basin leasehold and mineral position is comprised of private (fee) and state leasehold.

A more detailed breakdown of Matador’s federal leasehold position by asset area in the Delaware Basin is provided in the table below.

As noted in the table above, of the 26% of the Company’s Delaware Basin leasehold located on federal lands, 16% is associated with the Arrowhead and Ranger asset areas, a significant portion of which was acquired as part of Matador’s merger with Harvey E. Yates Company in 2015, and much of which is already held by existing production. Of Matador’s remaining Delaware Basin leasehold located on federal lands, 2%, 2% and 6% are associated with Matador’s Rustler Breaks, Stateline and Antelope Ridge asset areas, respectively. Most of the federal leasehold in the Antelope Ridge asset area and all of the federal leasehold in the Stateline and Twin Lakes asset areas were part of the approximately 8,400 net acres Matador acquired in the September 2018 Bureau of Land Management (“BLM”) Oil and Gas Lease Sale. The Company has no federal leasehold in its Wolf and Jackson Trust asset areas in Loving County, Texas.

As to federal lands, Matador has always found the BLM staff to be professional, diligent and reasonable in their requirements for obtaining the necessary drilling permits, and the Company fully expects these policies and practices to continue. Matador also notes that approximately 74% of its total Delaware Basin leasehold position is located outside of federal lands. As a result, the Company has many additional options for oil and natural gas development across its acreage position and many years of additional drilling inventory located outside of its federal leasehold.

Furthermore, as noted in its September 23, 2019 press release, Matador recently obtained its initial drilling permits from the BLM on its 1,200 net acre Rodney Robinson tract in western Antelope Ridge. Matador is currently operating two drilling rigs on the Rodney Robinson tract and anticipates drilling six initial wells on this tract, all two-mile laterals, from two separate three-well pads. These wells are currently scheduled to be completed and turned to sales in the first quarter of 2020. Matador has submitted 29 applications for permits to drill wells on the Rodney Robinson tract to the BLM, all of which are two-mile laterals. Eight of these permits, including those permits on the six wells currently being drilled, have already been received, and the remainder are in various stages of review with the BLM.

Pending approval and receipt of additional drilling permits from the BLM, Matador also believes it is on track to begin operating two drilling rigs on its 2,800 net acre Stateline asset area in early 2020. Matador has submitted 88 applications for permits to drill wells in the Stateline asset area to the BLM, all of which are either two-mile or 2.5-mile laterals. These requests for drilling permits are currently in various stages of review with the BLM.

Federal leases offer a number of attractive features as compared to fee and state leases. Most importantly, federal leases provide an 87.5% net revenue interest (“NRI”) as compared to approximately 75% NRI on most fee leases. As a result, Matador retains an additional 17% of the net production from each well drilled and completed on federal leasehold as compared to a 75% NRI lease, which should significantly improve the economics of wells drilled on federal leasehold. In addition, federal leases have an initial primary term of 10 years, meaning that an operator has 10 years from the date of the federal lease to establish production from the acreage, as compared to a typical three-year primary term on a fee lease. Furthermore, federal leases also offer favorable terms with regard to holding the acreage by production. A single producing well drilled on a federal tract will hold all rights and all depths to that leasehold, as compared to fee leases, in which portions of the leasehold may be surrendered if certain areas or depths are not drilled and completed within prescribed time periods.

Matador intends to continue providing regular updates regarding the status of its federal leasehold position as it has done in the past, either through its regular quarterly earnings releases or through occasional press releases, as needed.

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 and East Texas. Additionally, Matador conducts midstream operations, primarily through its midstream joint venture, San Mateo, in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and salt water gathering services and salt 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 guidance, projected or forecasted financial and operating results, 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 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; 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; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; availability of sufficient capital to execute its business plan, including from future cash flows, increases in its borrowing base and otherwise; weather and environmental conditions; the operating results of the Company’s midstream joint venture’s expansion of the Black River cryogenic processing plant, including the timing of the further expansion of such plant; the timing and operating results of the buildout by the Company’s midstream joint venture of oil, natural gas and water gathering and transportation systems and the drilling of any additional salt water disposal wells, including in conjunction with the expansion of the midstream joint venture’s services and assets into new areas in Eddy County, New Mexico; 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 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.

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Source: Matador Resources Company

Mac Schmitz
Capital Markets Coordinator
(972) 371-5225
investors@matadorresources.com