0001520006-21-000086 | 10-Q | XBRL Viewer

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2021

Summary of the valuation of the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis


	Fair Value Measurements at March 31, 2021 using
Description	Level 1		Level 2		Level 3		Total
Assets (Liabilities)
Oil derivatives and basis swaps	$	—	$	(80,852)	$	—	$	(80,852)
Natural gas derivatives	—		1,540		—		1,540
Total	$	—	$	(79,312)	$	—	$	(79,312)


	Fair Value Measurements at December 31, 2020 using
Description	Level 1		Level 2		Level 3		Total
Assets (Liabilities)
Oil derivatives and basis swaps	$	—	$	(41,584)	$	—	$	(41,584)
Natural gas derivatives	—		5,695		—		5,695
Total	$	—	$	(35,889)	$	—	$	(35,889)

Supplemental Disclosures (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Condensed Cash Flow Statements, Captions [Line Items]
Cash paid for interest expense, net of amounts capitalized	$ 35,085	$ 35,461
Increase in liabilities for drilling, completion and equipping capital expenditures	40,067	35,714
Decrease in liabilities for midstream properties capital expenditures	(6,691)	(5,579)
Stock-based compensation expense (benefit) recognized as liability	7,249	(1,411)
Transfer of inventory (to) from oil and natural gas properties	(574)	401
Increase (Decrease) In Liabilities For Acquisition Of Oil And Natural Gas Properties	2,031	(1,112)
Mineral Properties
Condensed Cash Flow Statements, Captions [Line Items]
Increase (decrease) in asset retirement obligations	105	738
Midstream Properties
Condensed Cash Flow Statements, Captions [Line Items]
Increase (decrease) in asset retirement obligations	$ 0	$ 213

Asset Retirement Obligations (Tables)

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

Schedule of changes in Company's asset retirement obligations

The following table summarizes the changes in the Company’s asset retirement obligations for the three months ended March 31, 2021 (in thousands).


Beginning asset retirement obligations	$	38,542
Liabilities incurred during period	166
Liabilities settled during period	(79)


Accretion expense	500
Ending asset retirement obligations	39,129
Less: current asset retirement obligations(1)	(409)
Long-term asset retirement obligations	$	38,720

_______________

(1)Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at March 31, 2021.

Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Summary of gross liability balances of derivative instruments
Total	$ (79,312)	$ (35,889)
Gross amounts netted in the condensed consolidated balance sheets	0	0
Net amounts presented in the condensed consolidated balance sheets	(79,312)	(35,889)
Current assets
Derivative [Line Items]
Gross amounts of recognized assets	377,949	382,328
Gross amounts netted in the condensed consolidated balance sheets	(373,878)	(375,601)
Oil, natural gas and natural gas liquids (NGL) derivatives	4,071	6,727
Other assets
Derivative [Line Items]
Gross amounts of recognized assets	128,755	150,194
Gross amounts netted in the condensed consolidated balance sheets	(128,333)	(147,624)
Oil, natural gas and natural gas liquids (NGL) derivatives	422	2,570
Current liabilities
Summary of gross liability balances of derivative instruments
Gross amounts of recognized liabilities	(457,683)	(420,787)
Gross amounts netted in the condensed consolidated balance sheet	373,878	375,601
Oil, natural gas and natural gas liquids (NGL) derivatives	(83,805)	(45,186)
Other liabilities
Summary of gross liability balances of derivative instruments
Gross amounts of recognized liabilities	(128,333)	(147,624)
Gross amounts netted in the condensed consolidated balance sheet	128,333	147,624
Oil, natural gas and natural gas liquids (NGL) derivatives	$ 0	$ 0

Supplemental Disclosures

3 Months Ended

Mar. 31, 2021

Supplemental Disclosures [Abstract]

SUPPLEMENTAL DISCLOSURES

Accrued Liabilities

The following table summarizes the Company’s current accrued liabilities at March 31, 2021 and December 31, 2020 (in thousands).


	March 31, 2021		December 31, 2020
Accrued evaluated and unproved and unevaluated property costs	$	87,125	$	44,012
Accrued midstream properties costs	5,587		12,776


Accrued lease operating expenses	23,192		24,276
Accrued interest on debt	2,825		18,315
Accrued asset retirement obligations	409		623
Accrued partners’ share of joint interest charges	9,073		7,407

Accrued payable related to purchased natural gas	199		418
Other	14,664		11,331
Total accrued liabilities	$	143,074	$	119,158

Supplemental Cash Flow Information

The following table provides supplemental disclosures of cash flow information for the three months ended March 31, 2021 and 2020 (in thousands).


	Three Months Ended March 31,
	2021		2020

Cash paid for interest expense, net of amounts capitalized	$	35,085	$	35,461
Increase in asset retirement obligations related to mineral properties	$	105	$	738
Increase in asset retirement obligations related to midstream properties	$	—	$	213
Increase in liabilities for drilling, completion and equipping capital expenditures	$	40,067	$	35,714
Increase (decrease) in liabilities for acquisition of oil and natural gas properties	$	2,031	$	(1,112)
Decrease in liabilities for midstream properties capital expenditures	$	(6,691)	$	(5,579)



Stock-based compensation expense (benefit) recognized as liability	$	7,249	$	(1,411)


Transfer of inventory (to) from oil and natural gas properties	$	(574)	$	401

The following table provides a reconciliation of cash and restricted cash recorded in the interim unaudited condensed consolidated balance sheets to cash and restricted cash as presented on the interim unaudited condensed consolidated statements of cash flows (in thousands).


	Three Months Ended March 31,
	2021		2020
Cash	$	17,924	$	27,063
Restricted cash	30,333		29,732
Total cash and restricted cash	$	48,257	$	56,795

Derivative Financial Instruments (Details)	Mar. 31, 2021 USD ($) bbl $ / bbl
Open costless collar contracts
Summary of contracts for oil and natural gas
Fair Value of Asset (Liability) \| $	$ (46,427,000)
Open Swap Contracts
Summary of contracts for oil and natural gas
Fair Value of Asset (Liability) \| $	(34,697,000)
Open Basis Swap Contracts
Summary of contracts for oil and natural gas
Fair Value of Asset (Liability) \| $	$ 1,812,000
Derivative Contract, Calculation Period One \| Open costless collar contracts \| Oil
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	7,110,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) \| $ / bbl	42.06
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) \| $ / bbl	55.15
Fair Value of Asset (Liability) \| $	$ (47,967,000)
Derivative Contract, Calculation Period One \| Open costless collar contracts \| Natural Gas
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	32,000,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) \| $ / bbl	2.45
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) \| $ / bbl	3.65
Fair Value of Asset (Liability) \| $	$ 1,399,000
Derivative Contract, Calculation Period One \| Open Swap Contracts \| Oil
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	1,530,000
Fair Value of Asset (Liability) \| $	$ (34,697,000)
Derivative, Swap Type, Average Fixed Price \| $ / bbl	35.26
Derivative Contract, Calculation Period One \| Open Basis Swap Contracts \| Oil Basis
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	6,300,000
Fair Value of Asset (Liability) \| $	$ 1,249,000
Derivative, Swap Type, Average Fixed Price \| $ / bbl	0.87
Derivative Contract, Calculation Period Two \| Open costless collar contracts \| Natural Gas
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	3,000,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) \| $ / bbl	2.60
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) \| $ / bbl	4.22
Fair Value of Asset (Liability) \| $	$ 141,000
Derivative Contract, Calculation Period Three \| Open Basis Swap Contracts \| Oil Basis
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	5,520,000
Fair Value of Asset (Liability) \| $	$ 563,000
Derivative, Swap Type, Average Fixed Price \| $ / bbl	0.95

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

At March 31, 2021, the Company had various costless collar and swap contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling for the collars and fixed price for the swaps. At March 31, 2021, each contract was set to expire at

varying times during 2021 and 2022. The Company had no open contracts associated with natural gas liquids (“NGL”) prices at March 31, 2021.

The following is a summary of the Company’s open costless collar contracts for oil and natural gas at March 31, 2021.


Commodity	Calculation Period	Notional Quantity (Bbl or MMBtu)	Weighted Average Price Floor ($/Bbl or $/MMBtu)		Weighted Average Price Ceiling ($/Bbl or $/MMBtu)		Fair Value of Asset (Liability) (thousands)
Oil	04/01/2021 - 12/31/2021	7,110,000	$	42.06	$	55.15	(47,967)
Natural Gas	04/01/2021 - 12/31/2021	32,000,000	$	2.45	$	3.65	1,399
Natural Gas	01/01/2022 - 03/31/2022	3,000,000	$	2.60	$	4.22	141
Total open costless collar contracts							$	(46,427)

The following is a summary of the Company’s open swap contracts for oil at March 31, 2021.


Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil	04/01/2021 - 12/31/2021	1,530,000	$	35.26	(34,697)
Total open swap contracts					$	(34,697)

The following is a summary of the Company’s open basis swap contracts for oil at March 31, 2021.


Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil Basis	04/01/2021 - 12/31/2021	6,300,000	$	0.87	1,249
Oil Basis	01/01/2022 - 12/31/2022	5,520,000	$	0.95	563
Total open basis swap contracts					$	1,812

At March 31, 2021, the aggregate liability value for the Company’s open derivative financial instruments was $79.3 million.

The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its interim unaudited condensed consolidated balance sheets.

The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (in thousands).


Derivative Instruments	Gross amounts recognized		Gross amounts netted in the condensed consolidated balance sheets		Net amounts presented in the condensed consolidated balance sheets
March 31, 2021
Current assets	$	377,949	$	(373,878)	$	4,071
Other assets	128,755		(128,333)		422
Current liabilities	(457,683)		373,878		(83,805)
Long-term liabilities	(128,333)		128,333		—
Total	$	(79,312)	$	—	$	(79,312)
December 31, 2020
Current assets	$	382,328	$	(375,601)	$	6,727
Other assets	150,194		(147,624)		2,570
Current liabilities	(420,787)		375,601		(45,186)
Long-term liabilities	(147,624)		147,624		—
Total	$	(35,889)	$	—	$	(35,889)

The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments.


		Three Months Ended March 31,
Type of Instrument	Location in Condensed Consolidated Statement of Operations	2021		2020
Derivative Instrument
Oil	Revenues: Realized (loss) gain on derivatives	$	(26,075)	$	10,867
Natural Gas	Revenues: Realized gain on derivatives	162		—

Realized (loss) gain on derivatives		(25,913)		10,867
Oil	Revenues: Unrealized (loss) gain on derivatives	(39,269)		136,430
Natural Gas	Revenues: Unrealized loss on derivatives	(4,154)		—

Unrealized (loss) gain on derivatives		(43,423)		136,430
Total		$	(69,336)	$	147,297

Asset Retirement Obligations (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2021

Mar. 31, 2020

Dec. 31, 2020

Changes in the Company's asset retirement obligations

Beginning asset retirement obligations

$ 38,542

Liabilities incurred during period

166

Liabilities settled during period

(79)

Accretion expense

500

$ 476

Ending asset retirement obligations

39,129

Less: current asset retirement obligations

^[1]

(409)

Long-term asset retirement obligations

$ 38,720

$ 37,919

[1]	Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at March 31, 2021.

Debt	3 Months Ended
Debt	Mar. 31, 2021
Debt Disclosure [Abstract]
DEBT	At March 31, 2021, the Company had (i) $1.05 billion of outstanding senior notes due 2026 (the “Notes”), (ii) $340.0 million in borrowings outstanding under its reserves-based revolving credit facility (the “Credit Agreement”), (iii) approximately $45.8 million in outstanding letters of credit issued pursuant to the Credit Agreement and (iv) $7.5 million outstanding under an unsecured U.S. Small Business Administration loan. At March 31, 2021, San Mateo had $334.0 million in borrowings outstanding under its revolving credit facility (the “San Mateo Credit Facility”) and approximately $9.0 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Between March 31, 2021 and April 28, 2021, San Mateo repaid $19.0 million of borrowings under the San Mateo Credit Facility. Credit Agreements MRC Energy Company The borrowing base under the Credit Agreement is determined semi-annually as of May 1 and November 1 by the lenders based primarily on the estimated value of the Company’s proved oil and natural gas reserves at December 31 and June 30 of each year, respectively. The Company and the lenders may each request an unscheduled redetermination of the borrowing base once between scheduled redetermination dates. In April 2021, the lenders completed their review of the Company’s proved oil and natural gas reserves, and, as a result, the borrowing base was reaffirmed at $900.0 million. The Company elected to keep the borrowing commitment at $700.0 million, the maximum facility amount remained $1.5 billion and no material changes were made to the terms of the Credit Agreement. This April 2021 redetermination constituted the regularly scheduled May 1 redetermination. Borrowings under the Credit Agreement are limited to the lowest of the borrowing base, the maximum facility amount and the elected commitment (subject to compliance with the covenant noted below). The Credit Agreement matures October 31, 2023. The Credit Agreement requires the Company to maintain a debt to EBITDA ratio, which is defined as debt outstanding (net of up to $50.0 million of cash or cash equivalents), divided by a rolling four quarter EBITDA calculation, of 4.00 or less. The Company believes that it was in compliance with the terms of the Credit Agreement at March 31, 2021. San Mateo Midstream, LLC The San Mateo Credit Facility is non-recourse with respect to Matador and its wholly-owned subsidiaries but is guaranteed by San Mateo’s subsidiaries and secured by substantially all of San Mateo’s assets, including real property. The San Mateo Credit Facility includes an accordion feature, which provides for potential increases to up to $400.0 million, and matures December 19, 2023. At March 31, 2021, the lender commitments under the San Mateo Credit Facility were $375.0 million (subject to San Mateo’s compliance with the covenants noted below). The San Mateo Credit Facility requires San Mateo to maintain a debt to EBITDA ratio, which is defined as total consolidated funded indebtedness outstanding (as defined in the San Mateo Credit Facility) divided by a rolling four quarter EBITDA calculation, of 5.00 or less, subject to certain exceptions. The San Mateo Credit Facility also requires San Mateo to maintain an interest coverage ratio, which is defined as a rolling four quarter EBITDA calculation divided by San Mateo’s consolidated interest expense, of 2.50 or more. The San Mateo Credit Facility also restricts the ability of San Mateo to distribute cash to its members if San Mateo’s liquidity is less than 10% of the lender commitments under the San Mateo Credit Facility. The Company believes that San Mateo was in compliance with the terms of the San Mateo Credit Facility at March 31, 2021. Senior Unsecured Notes At March 31, 2021, the Company had $1.05 billion of outstanding Notes, which have a 5.875% coupon rate. The Notes mature September 15, 2026, and interest is payable on the Notes semi-annually in arrears on each March 15 and September 15. The Notes are guaranteed on a senior unsecured basis by certain subsidiaries of the Company.

Debt Credit Agreement (Details)	3 Months Ended
Debt Credit Agreement (Details)	Mar. 31, 2021 USD ($)	Apr. 30, 2021 USD ($)
Revolving Credit Facility \| Third Amended Credit Agreement
Debt Instrument [Line Items]
Cash and cash equivalent limit	$ 50,000,000.0
EBITDA ratio	4.00
Line of Credit \| San Mateo Credit Facility
Debt Instrument [Line Items]
Maximum borrowing commitment	$ 375,000,000.0
Line of credit, accordian feature	$ 400,000,000.0
EBITDA ratio	5.00
Consolidated interest expense minimum	2.50
Liquidity restriction on cash distribution, percentage of lender commitments, less than	10.00%
Subsequent Event \| Revolving Credit Facility \| Third Amended Credit Agreement
Debt Instrument [Line Items]
Increase in borrowing base		$ 900,000,000.0
Maximum borrowing commitment		700,000,000.0
Maximum facility amount		$ 1,500,000,000

Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Apr. 30, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly cash dividend declared (in dollars per share)		$ 0.025
Cash dividend		$ 2,913
Distributions		14,210	$ 11,515
Additional paid-in capital		2,043,703		$ 2,027,069
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Quarterly cash dividend declared (in dollars per share)	$ 0.025
San Mateo
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity contribution, tax impact			3,100
Performance incentives earned		15,400	14,700
Matador Resources Company \| San Mateo
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Distributions		14,800	12,000
Five Point \| San Mateo
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Distributions		$ 14,200	11,500
San Mateo II \| Matador Resources Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contributions to related party			7,500
San Mateo II \| Five Point
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Contributions to related party			50,000
Additional paid-in capital			20,600
Equity contribution, tax impact			$ 4,300

Summary of Significant Accounting Policies (Details Textual) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Discount rate, present value of future revenue	10.00%
Capitalized general and administrative costs	$ 9.5	$ 8.2
Interest costs capitalized	$ 0.6	$ 1.4
Options
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Antidilutive securities (in shares)	1.5	2.7

Asset Retirement Obligations

3 Months Ended

Mar. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONS

The following table summarizes the changes in the Company’s asset retirement obligations for the three months ended March 31, 2021 (in thousands).


Beginning asset retirement obligations	$	38,542
Liabilities incurred during period	166
Liabilities settled during period	(79)


Accretion expense	500
Ending asset retirement obligations	39,129
Less: current asset retirement obligations(1)	(409)
Long-term asset retirement obligations	$	38,720

_______________

(1)Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at March 31, 2021.

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of contracts for oil and natural gas

The following is a summary of the Company’s open costless collar contracts for oil and natural gas at March 31, 2021.


Commodity	Calculation Period	Notional Quantity (Bbl or MMBtu)	Weighted Average Price Floor ($/Bbl or $/MMBtu)		Weighted Average Price Ceiling ($/Bbl or $/MMBtu)		Fair Value of Asset (Liability) (thousands)
Oil	04/01/2021 - 12/31/2021	7,110,000	$	42.06	$	55.15	(47,967)
Natural Gas	04/01/2021 - 12/31/2021	32,000,000	$	2.45	$	3.65	1,399
Natural Gas	01/01/2022 - 03/31/2022	3,000,000	$	2.60	$	4.22	141
Total open costless collar contracts							$	(46,427)

The following is a summary of the Company’s open swap contracts for oil at March 31, 2021.


Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil	04/01/2021 - 12/31/2021	1,530,000	$	35.26	(34,697)
Total open swap contracts					$	(34,697)

The following is a summary of the Company’s open basis swap contracts for oil at March 31, 2021.


Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil Basis	04/01/2021 - 12/31/2021	6,300,000	$	0.87	1,249
Oil Basis	01/01/2022 - 12/31/2022	5,520,000	$	0.95	563
Total open basis swap contracts					$	1,812

Summary of gross asset balances of derivative instruments


Derivative Instruments	Gross amounts recognized		Gross amounts netted in the condensed consolidated balance sheets		Net amounts presented in the condensed consolidated balance sheets
March 31, 2021
Current assets	$	377,949	$	(373,878)	$	4,071
Other assets	128,755		(128,333)		422
Current liabilities	(457,683)		373,878		(83,805)
Long-term liabilities	(128,333)		128,333		—
Total	$	(79,312)	$	—	$	(79,312)
December 31, 2020
Current assets	$	382,328	$	(375,601)	$	6,727
Other assets	150,194		(147,624)		2,570
Current liabilities	(420,787)		375,601		(45,186)
Long-term liabilities	(147,624)		147,624		—
Total	$	(35,889)	$	—	$	(35,889)

Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations


		Three Months Ended March 31,
Type of Instrument	Location in Condensed Consolidated Statement of Operations	2021		2020
Derivative Instrument
Oil	Revenues: Realized (loss) gain on derivatives	$	(26,075)	$	10,867
Natural Gas	Revenues: Realized gain on derivatives	162		—

Realized (loss) gain on derivatives		(25,913)		10,867
Oil	Revenues: Unrealized (loss) gain on derivatives	(39,269)		136,430
Natural Gas	Revenues: Unrealized loss on derivatives	(4,154)		—

Unrealized (loss) gain on derivatives		(43,423)		136,430
Total		$	(69,336)	$	147,297

Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized (loss) gain on derivatives	$ (25,913)	$ 10,867
Unrealized (loss) gain on derivatives	(43,423)	136,430
Total	(69,336)	147,297
Revenues
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized (loss) gain on derivatives	(25,913)	10,867
Unrealized (loss) gain on derivatives	(43,423)	136,430
Oil \| Revenues
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized (loss) gain on derivatives	(26,075)	10,867
Unrealized (loss) gain on derivatives	(39,269)	136,430
Natural Gas \| Revenues
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized (loss) gain on derivatives	162	0
Unrealized (loss) gain on derivatives	$ (4,154)	$ 0

Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current assets
Cash	$ 17,924	$ 57,916
Restricted cash	30,333	33,467
Accounts receivable
Oil and natural gas revenues	121,825	85,098
Joint interest billings	43,331	34,823
Other	11,658	17,212
Derivative instruments	4,071	6,727
Lease and well equipment inventory	11,045	10,584
Prepaid expenses and other current assets	16,677	15,802
Total current assets	256,864	261,629
Oil and natural gas properties, full-cost method
Evaluated	5,407,305	5,295,931
Unproved and unevaluated	925,259	902,133
Midstream properties	851,412	841,695
Other property and equipment	29,802	29,561
Less accumulated depletion, depreciation and amortization	(3,776,414)	(3,701,551)
Net property and equipment	3,437,364	3,367,769
Other assets
Derivative instruments	422	2,570
Other long-term assets	44,231	55,312
Total assets	3,738,881	3,687,280
Current liabilities
Accounts payable	30,198	13,982
Accrued liabilities	143,074	119,158
Royalties payable	71,790	66,049
Amounts due to affiliates	8,533	4,934
Derivative instruments	83,805	45,186
Advances from joint interest owners	7,000	4,191
Other current liabilities	32,012	37,436
Total current liabilities	376,412	290,936
Long-term liabilities
Borrowings under Credit Agreement	340,000	440,000
Borrowings under San Mateo Credit Facility	334,000	334,000
Senior unsecured notes payable	1,041,393	1,040,998
Asset retirement obligations	38,720	37,919
Deferred income taxes	2,499	0
Other long-term liabilities	25,324	30,402
Total long-term liabilities	1,781,936	1,883,319
Commitments and contingencies
Shareholders’ equity
Common stock - $0.01 par value, 160,000,000 shares authorized; 116,871,689 and 116,847,003 shares issued; and 116,779,751 and 116,844,768 shares outstanding, respectively	1,169	1,169
Additional paid-in capital	2,043,703	2,027,069
Accumulated deficit	(683,973)	(741,705)
Treasury stock, at cost, 91,938 and 2,235 shares, respectively	(1,504)	(3)
Total Matador Resources Company shareholders’ equity	1,359,395	1,286,530
Non-controlling interest in subsidiaries	221,138	226,495
Total shareholders’ equity	1,580,533	1,513,025
Total liabilities and shareholders’ equity	$ 3,738,881	$ 3,687,280

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Assets (Liabilities)
Total	$ (79,312)	$ (35,889)
Fair value on a recurring basis
Assets (Liabilities)
Derivative Liability	(80,852)	(41,584)
Derivative Asset	1,540	5,695
Total	(79,312)	(35,889)
Fair value on a recurring basis \| Level 1
Assets (Liabilities)
Derivative Liability	0	0
Derivative Asset	0	0
Total	0	0
Fair value on a recurring basis \| Level 2
Assets (Liabilities)
Derivative Liability	(80,852)	(41,584)
Derivative Asset	1,540	5,695
Total	(79,312)	(35,889)
Fair value on a recurring basis \| Level 3
Assets (Liabilities)
Derivative Liability	0	0
Derivative Asset	0	0
Total	$ 0	$ 0

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income tax provision	$ 2,840	$ 39,957
Effective tax rate	4.00%	24.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

Disaggregation of revenue

The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three months ended March 31, 2021 and 2020 (in thousands).


	Three Months Ended March 31,
	2021		2020
Revenues from contracts with customers	$	336,181	$	224,288

Realized (loss) gain on derivatives	(25,913)		10,867
Unrealized (loss) gain on derivatives	(43,423)		136,430
Total revenues	$	266,845	$	371,585


	Three Months Ended March 31,
	2021		2020
Oil revenues	$	213,279	$	169,585
Natural gas revenues	102,954		28,329
Third-party midstream services revenues	15,438		15,830
Sales of purchased natural gas	4,510		10,544
Total revenues from contracts with customers	$	336,181	$	224,288

Reconciliations of basic and diluted distributed and undistributed earnings (loss) per common share

The following table sets forth the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2021 and 2020 (in thousands).


	Three Months Ended March 31,
	2021	2020
Weighted average common shares outstanding
Basic	116,807	116,607
Dilutive effect of options and restricted stock units	1,862	77
Diluted weighted average common shares outstanding	118,669	116,684

Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited - USD ($) $ in Thousands	Total	Total shareholders’ equity attributable to Matador Resources Company	Common Stock	Additional paid-in capital	Accumulated deficit	Treasury Stock	Non-controlling interest in subsidiaries
Beginning Balance, shares at Dec. 31, 2019			116,644,000			1,000
Beginning balance at Dec. 31, 2019	$ 1,969,452	$ 1,833,654	$ 1,166	$ 1,981,014	$ (148,500)	$ (26)	$ 135,798
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares)			3,000
Issuance of common stock pursuant to employee stock compensation plan	0
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares)			2,000
Issuance of common stock pursuant to directors’ and advisors’ compensation plan	0
Stock-based compensation expense related to equity-based awards including amounts capitalized	5,066	5,066		5,066
Stock options exercised, net of options forfeited in net share settlements	(24)	(24)		(24)
Liability-based stock option awards settled in equity (in shares)			22,000
Liability-based stock option awards settled in equity	298	298	$ 1	297
Restricted stock forfeited (in shares)						(106,000)
Restricted stock forfeited	(1,267)	(1,267)				$ (1,267)
Contribution related to formation of property	11,613	11,613		11,613
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, net of tax	45,674	16,280		16,280			29,394
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries	(11,515)						(11,515)
Current period net income	135,083	125,729			125,729		9,354
Ending Balance, shares at Mar. 31, 2020			116,671,000			107,000
Ending balance at Mar. 31, 2020	$ 2,154,380	1,991,349	$ 1,167	2,014,246	(22,771)	$ (1,293)	163,031
Beginning Balance, shares at Dec. 31, 2020	116,844,768		116,847,000			2,000
Beginning balance at Dec. 31, 2020	$ 1,513,025	1,286,530	$ 1,169	2,027,069	(741,705)	$ (3)	226,495
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared ($0.025 per share)	(2,913)	(2,913)			(2,913)
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares)			3,000
Issuance of common stock pursuant to employee stock compensation plan	0
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares)			9,000
Issuance of common stock pursuant to directors’ and advisors’ compensation plan	0
Stock-based compensation expense related to equity-based awards including amounts capitalized	1,477	1,477		$ 1,477
Stock options exercised, net of options forfeited in net share settlements (in shares)			13,000
Stock options exercised, net of options forfeited in net share settlements	0
Restricted stock forfeited (in shares)				(219,000)		(90,000)
Restricted stock forfeited	(1,720)	(1,720)				$ (1,501)
Contribution related to formation of property	15,376	15,376		$ 15,376
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries	(14,210)						(14,210)
Current period net income	$ 69,498	60,645			60,645		8,853
Ending Balance, shares at Mar. 31, 2021	116,779,751		116,872,000			92,000
Ending balance at Mar. 31, 2021	$ 1,580,533	$ 1,359,395	$ 1,169	$ 2,043,703	$ (683,973)	$ (1,504)	$ 221,138

Supplemental Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Supplemental Disclosures [Line Items]
Total accrued liabilities	$ 143,074	$ 119,158
Accrued evaluated and unproved and unevaluated property costs
Supplemental Disclosures [Line Items]
Total accrued liabilities	87,125	44,012
Accrued midstream properties costs
Supplemental Disclosures [Line Items]
Total accrued liabilities	5,587	12,776
Accrued lease operating expenses
Supplemental Disclosures [Line Items]
Total accrued liabilities	23,192	24,276
Accrued interest on debt
Supplemental Disclosures [Line Items]
Total accrued liabilities	2,825	18,315
Accrued asset retirement obligations
Supplemental Disclosures [Line Items]
Total accrued liabilities	409	623
Accrued partners’ share of joint interest charges
Supplemental Disclosures [Line Items]
Total accrued liabilities	9,073	7,407
Accrued payable related to purchased natural gas
Supplemental Disclosures [Line Items]
Total accrued liabilities	199	418
Other
Supplemental Disclosures [Line Items]
Total accrued liabilities	$ 14,664	$ 11,331

Condensed Consolidated Balance Sheets (Parenthetical) - Unaudited - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	160,000,000	160,000,000
Common stock, shares issued (in shares)	116,871,689	116,847,003
Common stock, shares outstanding (in shares)	116,779,751	116,844,768
Treasury stock (in shares)	91,938	2,235

Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2021	Apr. 28, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	001-35410
Entity Registrant Name	Matador Resources Company
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	27-4662601
Entity Address, Address Line One	5400 LBJ Freeway,
Entity Address, Address Line Two	Suite 1500
Entity Address, City or Town	Dallas,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75240
City Area Code	972
Local Phone Number	371-5200
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	MTDR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		116,781,983
Entity Central Index Key	0001520006
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31

Equity	3 Months Ended
Equity	Mar. 31, 2021
Equity [Abstract]
EQUITY	Common Stock Dividend During the three months ended March 31, 2021, the Company’s Board of Directors (the “Board”) adopted a dividend policy and declared the Company’s first quarterly cash dividend of $0.025 per share of common stock. The dividend, which totaled $2.9 million, was paid on March 31, 2021. In April 2021, the Board declared the Company’s second quarterly cash dividend of $0.025 per share of common stock payable on June 3, 2021 to shareholders of record as of May 13, 2021. San Mateo Distributions and Contributions During the three months ended March 31, 2021 and 2020, San Mateo distributed $14.8 million and $12.0 million, respectively, to the Company and $14.2 million and $11.5 million, respectively, to a subsidiary of Five Point Energy LLC, the Company’s joint venture partner (“Five Point”). During the three months ended March 31, 2020, the Company contributed $7.5 million and Five Point contributed $50.0 million of cash to San Mateo, of which $20.6 million was paid to carry Matador’s proportionate interest in San Mateo and was therefore recorded in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheet, net of the $4.3 million deferred tax impact to Matador related to this equity contribution. During the three months ended March 31, 2021, there were no contributions to San Mateo by either the Company or Five Point. Performance Incentives Five Point paid to the Company $15.4 million and $14.7 million in performance incentives during the three months ended March 31, 2021 and 2020, respectively. These performance incentives are recorded when received, net of the $3.1 million deferred tax impact to Matador during the three months ended March 31, 2020, in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheets. These performance incentives for the three months ended March 31, 2021 and 2020 are also denoted as “Contributions related to formation of San Mateo” under “Financing activities” in the Company’s interim unaudited condensed consolidated statements of cash flows and changes in shareholders’ equity.

Debt (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
Debt (Details) - USD ($) $ in Thousands	Apr. 28, 2021	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020	Oct. 27, 2020
Revolving Credit Agreement [Line Items]
Line of credit facility		$ 340,000		$ 440,000
Borrowings under San Mateo Credit Facility		334,000		$ 334,000
Repayments of borrowings		11,000	$ 0
Unsecured Debt \| Senior Notes Due 2026
Revolving Credit Agreement [Line Items]
Long-term debt outstanding		1,050,000
Unsecured Debt \| SBA Loan, CARES Act
Revolving Credit Agreement [Line Items]
Long-term debt outstanding		7,500
Letter of Credit
Revolving Credit Agreement [Line Items]
Outstanding letters of credit		45,800
Line of Credit \| San Mateo Credit Facility
Revolving Credit Agreement [Line Items]
Outstanding letters of credit		9,000			$ 9,000
Borrowings under San Mateo Credit Facility		$ 334,000
Subsequent Event \| Line of Credit \| San Mateo Credit Facility
Revolving Credit Agreement [Line Items]
Repayments of borrowings	$ 19,000

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Processing, Transportation and Produced Water Disposal Commitments Firm Commitments From time to time, the Company enters into agreements with third parties whereby the Company commits to deliver anticipated natural gas and oil production and produced water from certain portions of its acreage for transportation, gathering, processing, fractionation, sales and disposal. The Company paid approximately $12.6 million and $11.0 million for deliveries under these agreements during the three months ended March 31, 2021 and 2020, respectively. Certain of these agreements contain minimum volume commitments. If the Company does not meet the minimum volume commitments under these agreements, it will be required to pay certain deficiency fees. If the Company ceased operations in the areas subject to these agreements at March 31, 2021, the total deficiencies required to be paid by the Company under these agreements would be approximately $615.2 million. San Mateo Commitments The Company dedicated to San Mateo its current and certain future leasehold interests in the Rustler Breaks and Wolf asset areas and acreage in the southern portion of the Arrowhead asset area (the “Greater Stebbins Area”) and the Stateline asset area pursuant to 15-year, fixed-fee oil transportation, oil, natural gas and produced water gathering and produced water disposal agreements. In addition, the Company dedicated to San Mateo its current and certain future leasehold interests in the Rustler Breaks asset area and acreage in the Greater Stebbins Area and the Stateline asset area pursuant to 15-year, fixed-fee natural gas processing agreements (collectively with the transportation, gathering and produced water disposal agreements, the “Operational Agreements”). San Mateo provides the Company with firm service under each of the Operational Agreements in exchange for certain minimum volume commitments. The remaining minimum contractual obligation under the Operational Agreements at March 31, 2021 was approximately $470.1 million. Legal Proceedings The Company is a party to several legal proceedings encountered in the ordinary course of its business. While the ultimate outcome and impact on the Company cannot be predicted with certainty, in the opinion of management, it is remote that these legal proceedings will have a material adverse impact on the Company’s financial condition, results of operations or cash flows.

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 336,181	$ 224,288
Realized (loss) gain on derivatives	(25,913)	10,867
Unrealized (loss) gain on derivatives	(43,423)	136,430
Total revenue	266,845	371,585
Oil revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	213,279	169,585
Natural gas revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	102,954	28,329
Third-party midstream services revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	15,438	15,830
Sales of purchased natural gas
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	4,510	10,544
Total revenues from contracts with customers
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 336,181	$ 224,288

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Mar. 31, 2021
Accounting Policies [Abstract]
Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates	Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 26, 2021 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification, Consolidation (Topic 810). The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of March 31, 2021. Amounts as of December 31, 2020 are derived from the Company’s audited consolidated financial statements included in the Annual Report. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates.
Property and Equipment	Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12-month period. For each of the three months ended March 31, 2021 and 2020, the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary.
Earnings (Loss) Per Common Share	Earnings Per Common Share The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive.

Segment Information (Tables)

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Selected financial information for segments

The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.”


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Three Months Ended March 31, 2021
Oil and natural gas revenues	$	314,646	$	1,587	$	—	$	—	$	316,233
Midstream services revenues	—		43,909		—		(28,471)		15,438
Sales of purchased natural gas	2,462		2,048		—		—		4,510

Realized loss on derivatives	(25,913)		—		—		—		(25,913)
Unrealized loss on derivatives	(43,423)		—		—		—		(43,423)
Expenses(1)	156,444		26,247		19,962		(28,471)		174,182
Operating income (loss)(2)	$	91,328	$	21,297	$	(19,962)	$	—	$	92,663






Total assets	$	2,881,242	$	831,239	$	26,400	$	—	$	3,738,881
Capital expenditures(3)	$	134,865	$	9,773	$	133	$	—	$	144,771

_____________________

(1)Includes depletion, depreciation and amortization expenses of $66.4 million and $7.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million.

(2)Includes $8.9 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Includes $8.7 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $4.4 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Three Months Ended March 31, 2020
Oil and natural gas revenues	$	196,795	$	1,119	$	—	$	—	$	197,914
Midstream services revenues	—		37,749		—		(21,919)		15,830
Sales of purchased natural gas	3,595		6,949		—		—		10,544

Realized gain on derivatives	10,867		—		—		—		10,867
Unrealized gain on derivatives	136,430		—		—		—		136,430
Expenses(1)	161,325		24,330		14,317		(21,919)		178,053
Operating income (loss)(2)	$	186,362	$	21,487	$	(14,317)	$	—	$	193,532






Total assets	$	3,571,257	$	715,413	$	47,001	$	—	$	4,333,671
Capital expenditures(3)	$	209,735	$	68,073	$	787	$	—	$	278,595

_____________________

(1)Includes depletion, depreciation and amortization expenses of $85.2 million and $4.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million.

(2)Includes $9.4 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Includes $39.7 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $47.6 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.

Condensed Consolidated Statements of Operations - Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Revenues	$ 336,181	$ 224,288
Realized (loss) gain on derivatives	(25,913)	10,867
Unrealized (loss) gain on derivatives	(43,423)	136,430
Total revenues	266,845	371,585
Expenses
Production taxes, transportation and processing	34,174	21,716
Lease operating	25,939	30,910
Purchased natural gas	2,855	8,058
Depletion, depreciation and amortization	74,863	90,707
Accretion of asset retirement obligations	500	476
General and administrative	22,188	16,222
Total expenses	174,182	178,053
Operating income	92,663	193,532
Other income (expense)
Interest expense	(19,650)	(19,812)
Other (expense) income	(675)	1,320
Total other expense	(20,325)	(18,492)
Income before income taxes	72,338	175,040
Income tax provision (benefit)
Deferred	2,840	39,957
Income tax provision	2,840	39,957
Net income	69,498	135,083
Net income attributable to non-controlling interest in subsidiaries	(8,853)	(9,354)
Net income attributable to Matador Resources Company shareholders	$ 60,645	$ 125,729
Earnings per common share
Basic (in dollars per share)	$ 0.52	$ 1.08
Diluted (in dollars per share)	$ 0.51	$ 1.08
Weighted average common shares outstanding
Basic (shares)	116,807	116,607
Diluted (shares)	118,669	116,684
Oil and natural gas revenues
Revenues
Revenues	$ 316,233	$ 197,914
Third-party midstream services revenues
Revenues
Revenues	15,438	15,830
Expenses
Plant and other midstream services operating	13,663	9,964
Sales of purchased natural gas
Revenues
Revenues	$ 4,510	$ 10,544

Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Cash Flows [Abstract]
Net income	$ 69,498	$ 135,083
Adjustments to reconcile net income to net cash provided by operating activities
Unrealized loss (gain) on derivatives	43,423	(136,430)
Depletion, depreciation and amortization	74,863	90,707
Accretion of asset retirement obligations	500	476
Stock-based compensation expense	855	3,794
Deferred income tax provision	2,840	39,957
Amortization of debt issuance cost	724	684
Changes in operating assets and liabilities
Accounts receivable	(39,680)	36,342
Lease and well equipment inventory	112	(1,296)
Prepaid expenses and other current assets	(802)	174
Other long-term assets	19	1,749
Accounts payable, accrued liabilities and other current liabilities	8,560	(58,562)
Royalties payable	5,741	384
Advances from joint interest owners	2,809	(3,598)
Other long-term liabilities	(67)	(92)
Net cash provided by operating activities	169,395	109,372
Investing activities
Drilling, completion and equipping capital expenditures	(85,986)	(133,170)
Acquisition of oil and natural gas properties	(6,676)	(40,824)
Midstream capital expenditures	(16,380)	(73,439)
Expenditures for other property and equipment	(133)	(787)
Proceeds from sale of assets	280	0
Net cash used in investing activities	(108,895)	(248,220)
Financing activities
Repayments of borrowings under Credit Agreement	(100,000)	0
Proceeds from Lines of Credit	0	60,000
Repayments of borrowings under San Mateo Credit Facility	(11,000)	0
Borrowings under San Mateo Credit Facility	11,000	19,500
Cost to amend credit facilities	0	(660)
Dividends paid	(2,913)	0
Contributions related to formation of San Mateo	15,376	14,700
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries	0	50,000
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries	(14,210)	(11,515)
Taxes paid related to net share settlement of stock-based compensation	(1,721)	(1,336)
Other	(158)	(174)
Net cash (used in) provided by financing activities	(103,626)	130,515
Decrease in cash and restricted cash	(43,126)	(8,333)
Cash and restricted cash at beginning of period	91,383	65,128
Cash and restricted cash at end of period	$ 48,257	$ 56,795

Commitments and Contingencies (Details) - USD ($) $ in Millions		3 Months Ended
	Feb. 17, 2017	Mar. 31, 2021	Mar. 31, 2020
Delivery Of Natural Gas And Oil Production To Third Parties
Long-term Purchase Commitment [Line Items]
Payment for volume requirement agreement		$ 12.6	$ 11.0
Volume requirement commitment		615.2
Rustler Breaks and Wolf Asset Area \| Corporate Joint Venture \| San Mateo Midstream
Commitments and Contingencies (Textual) [Abstract]
Term of contractual obligation	15 years
Rustler Breaks Asset Area \| Corporate Joint Venture \| San Mateo Midstream
Commitments and Contingencies (Textual) [Abstract]
Term of contractual obligation	15 years
Operational Agreements \| San Mateo Midstream
Commitments and Contingencies (Textual) [Abstract]
Contractual obligation		$ 470.1

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	The Company recorded an income tax provision of $2.8 million for the three months ended March 31, 2021, which resulted in an effective tax rate of 4%. The effective tax rate differed from amounts computed by applying the U.S. federal statutory rate to the pre-tax income due primarily to recording a net deferred tax liability for state taxes, primarily in New Mexico, and continuing to recognize a valuation allowance against our U.S. federal net deferred tax assets. As a result of the full-cost ceiling impairments recorded in 2020, the Company recognized a valuation allowance against its net deferred tax assets for the year ended December 31, 2020. The valuation allowance will continue to be recognized until the future deferred tax benefits are more likely than not to become utilized. The Company’s effective tax rate for the three months ended March 31, 2020 was 24%. The Company’s total income tax provision for the three months ended March 31, 2020 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income due to the impact of permanent differences between book and tax income, as well as state taxes, primarily in New Mexico.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Nature of Operations	3 Months Ended
Nature of Operations	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	Matador Resources Company, a Texas corporation (“Matador” and, collectively with its subsidiaries, the “Company”), 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. The Company’s 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. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, the Company conducts midstream operations, primarily through its midstream joint venture, San Mateo Midstream, LLC (collectively with its subsidiaries, “San Mateo”), in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties.

Fair Value Measurements

3 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements are classified and disclosed in one of the following categories.

Level 1 Unadjusted quoted prices for identical, unrestricted assets or liabilities in active markets.

Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that are valued with industry standard models that consider various inputs, including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace.

Level 3 Unobservable inputs that are not corroborated by market data that reflect a company’s own market assumptions.

Financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels.

The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of March 31, 2021 and December 31, 2020 (in thousands).


	Fair Value Measurements at March 31, 2021 using
Description	Level 1		Level 2		Level 3		Total
Assets (Liabilities)
Oil derivatives and basis swaps	$	—	$	(80,852)	$	—	$	(80,852)
Natural gas derivatives	—		1,540		—		1,540
Total	$	—	$	(79,312)	$	—	$	(79,312)


	Fair Value Measurements at December 31, 2020 using
Description	Level 1		Level 2		Level 3		Total
Assets (Liabilities)
Oil derivatives and basis swaps	$	—	$	(41,584)	$	—	$	(41,584)
Natural gas derivatives	—		5,695		—		5,695
Total	$	—	$	(35,889)	$	—	$	(35,889)

Additional disclosures related to derivative financial instruments are provided in Note 7.

Other Fair Value Measurements

At March 31, 2021 and December 31, 2020, the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners and other current liabilities approximated their fair values due to their short-term maturities.

At March 31, 2021 and December 31, 2020, the carrying value of borrowings under the Credit Agreement and the San Mateo Credit Facility approximated their fair value as both are subject to short-term floating interest rates that reflect market rates available to the Company at the time and are classified at Level 2 in the fair value hierarchy.

At March 31, 2021 and December 31, 2020, the fair value of the Notes was $1.02 billion and $1.03 billion, respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2021

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates

The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 26, 2021 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification, Consolidation (Topic 810). The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of March 31, 2021. Amounts as of December 31, 2020 are derived from the Company’s audited consolidated financial statements included in the Annual Report.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates.

Revenues

The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three months ended March 31, 2021 and 2020 (in thousands).


	Three Months Ended March 31,
	2021		2020
Revenues from contracts with customers	$	336,181	$	224,288

Realized (loss) gain on derivatives	(25,913)		10,867
Unrealized (loss) gain on derivatives	(43,423)		136,430
Total revenues	$	266,845	$	371,585


	Three Months Ended March 31,
	2021		2020
Oil revenues	$	213,279	$	169,585
Natural gas revenues	102,954		28,329
Third-party midstream services revenues	15,438		15,830
Sales of purchased natural gas	4,510		10,544
Total revenues from contracts with customers	$	336,181	$	224,288

Property and Equipment

The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12-month period. For each of the three months ended March 31, 2021 and 2020, the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary.

The Company capitalized approximately $9.5 million and $8.2 million of its general and administrative costs and approximately $0.6 million and $1.4 million of its interest expense for the three months ended March 31, 2021 and 2020, respectively.

Earnings Per Common Share

The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive.

The following table sets forth the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2021 and 2020 (in thousands).


	Three Months Ended March 31,
	2021	2020
Weighted average common shares outstanding
Basic	116,807	116,607
Dilutive effect of options and restricted stock units	1,862	77
Diluted weighted average common shares outstanding	118,669	116,684

A total of 1.5 million and 2.7 million options to purchase shares of Matador’s common stock were excluded from the diluted weighted average common shares outstanding for the three months ended March 31, 2021 and 2020, respectively, because their effects were anti-dilutive.

Fair Value Measurements (Details 1) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Senior Notes Due 2023 \| Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of notes	$ 1,020.0	$ 1,030.0

Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited (Parenthetical) $ in Millions	3 Months Ended
	Mar. 31, 2020 USD ($)
Statement of Stockholders' Equity [Abstract]
Contribution related to formation of San Mateo, tax	$ 3.1
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, tax	$ 4.3

Summary of Significant Accounting Policies (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Accounting Policies [Abstract]
Weighted average common shares outstanding for basic earnings (loss) per share	116,807	116,607
Dilutive effect of options and restricted stock units	1,862	77
Diluted weighted average common shares outstanding	118,669	116,684
Options
Disaggregation of Revenue [Line Items]
Antidilutive securities (in shares)	1,500	2,700

Supplemental Disclosures (Tables)

3 Months Ended

Mar. 31, 2021

Supplemental Disclosures [Abstract]

Summary of current accrued liabilities

The following table summarizes the Company’s current accrued liabilities at March 31, 2021 and December 31, 2020 (in thousands).


	March 31, 2021		December 31, 2020
Accrued evaluated and unproved and unevaluated property costs	$	87,125	$	44,012
Accrued midstream properties costs	5,587		12,776


Accrued lease operating expenses	23,192		24,276
Accrued interest on debt	2,825		18,315
Accrued asset retirement obligations	409		623
Accrued partners’ share of joint interest charges	9,073		7,407

Accrued payable related to purchased natural gas	199		418
Other	14,664		11,331
Total accrued liabilities	$	143,074	$	119,158

Supplemental disclosures of cash flow information

The following table provides supplemental disclosures of cash flow information for the three months ended March 31, 2021 and 2020 (in thousands).


	Three Months Ended March 31,
	2021		2020

Cash paid for interest expense, net of amounts capitalized	$	35,085	$	35,461
Increase in asset retirement obligations related to mineral properties	$	105	$	738
Increase in asset retirement obligations related to midstream properties	$	—	$	213
Increase in liabilities for drilling, completion and equipping capital expenditures	$	40,067	$	35,714
Increase (decrease) in liabilities for acquisition of oil and natural gas properties	$	2,031	$	(1,112)
Decrease in liabilities for midstream properties capital expenditures	$	(6,691)	$	(5,579)



Stock-based compensation expense (benefit) recognized as liability	$	7,249	$	(1,411)


Transfer of inventory (to) from oil and natural gas properties	$	(574)	$	401


	Three Months Ended March 31,
	2021		2020
Cash	$	17,924	$	27,063
Restricted cash	30,333		29,732
Total cash and restricted cash	$	48,257	$	56,795

Supplemental Disclosures Supplemental Disclosures - Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Supplemental Cash Flow Elements [Abstract]
Cash	$ 17,924	$ 57,916	$ 27,063
Restricted cash	30,333	33,467	29,732
Total cash and restricted cash	$ 48,257	$ 91,383	$ 56,795	$ 65,128

Segment Information (Details) $ in Thousands	3 Months Ended
Segment Information (Details) $ in Thousands	Mar. 31, 2021 USD ($) segment	Mar. 31, 2020 USD ($)	Dec. 31, 2020 USD ($)
Segment Reporting Information [Line Items]
Revenues	$ 336,181	$ 224,288
Number of segments \| segment	2
Realized (loss) gain on derivatives	$ (25,913)	10,867
Unrealized (loss) gain on derivatives	(43,423)	136,430
Expenses	174,182	178,053
Operating (loss) income	92,663	193,532
Total assets	3,738,881	4,333,671	$ 3,687,280
Capital expenditures	144,771	278,595
Depletion, depreciation and amortization	74,863	90,707
Corporate
Segment Reporting Information [Line Items]
Realized (loss) gain on derivatives	0	0
Unrealized (loss) gain on derivatives	0	0
Expenses	19,962	14,317
Operating (loss) income	(19,962)	(14,317)
Total assets	26,400	47,001
Capital expenditures	133	787
Depletion, depreciation and amortization	700	700
Consolidations and Eliminations
Segment Reporting Information [Line Items]
Realized (loss) gain on derivatives	0	0
Unrealized (loss) gain on derivatives	0	0
Expenses	(28,471)	(21,919)
Operating (loss) income	0	0
Total assets	0	0
Capital expenditures	0	0
Exploration and Production \| Operating Segments
Segment Reporting Information [Line Items]
Realized (loss) gain on derivatives	(25,913)	10,867
Unrealized (loss) gain on derivatives	(43,423)	136,430
Expenses	156,444	161,325
Operating (loss) income	91,328	186,362
Total assets	2,881,242	3,571,257
Capital expenditures	134,865	209,735
Depletion, depreciation and amortization	66,400	85,200
Capital expenditures attributable to land and seismic acquisition expenditures	8,700	39,700
Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Realized (loss) gain on derivatives	0	0
Unrealized (loss) gain on derivatives	0	0
Expenses	26,247	24,330
Operating (loss) income	21,297	21,487
Total assets	831,239	715,413
Capital expenditures	9,773	68,073
Depletion, depreciation and amortization	7,800	4,800
Net income attributable to non-controlling interest in subsidiaries		(9,400)
Capital expenditures attributable to non-controlling interest	4,400	47,600
Operating Income (Loss) \| Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Net income attributable to non-controlling interest in subsidiaries	(8,900)
Oil and natural gas revenues
Segment Reporting Information [Line Items]
Revenues	316,233	197,914
Oil and natural gas revenues \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0
Oil and natural gas revenues \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0
Oil and natural gas revenues \| Exploration and Production \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	314,646	196,795
Oil and natural gas revenues \| Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	1,587	1,119
Third-party midstream services revenues
Segment Reporting Information [Line Items]
Revenues	15,438	15,830
Third-party midstream services revenues \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0
Third-party midstream services revenues \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	(28,471)	(21,919)
Third-party midstream services revenues \| Exploration and Production \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	0	0
Third-party midstream services revenues \| Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	43,909	37,749
Sales of purchased natural gas
Segment Reporting Information [Line Items]
Revenues	4,510	10,544
Sales of purchased natural gas \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0
Sales of purchased natural gas \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0
Sales of purchased natural gas \| Exploration and Production \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	2,462	3,595
Sales of purchased natural gas \| Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	$ 2,048	$ 6,949

Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company operates in two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is currently 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. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The midstream segment conducts

midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties. Substantially all of the Company’s midstream operations in the Rustler Breaks, Wolf and Stateline asset areas and the Greater Stebbins Area in the Delaware Basin, which comprise most of the Company’s midstream operations, are conducted through San Mateo. San Mateo and its subsidiaries are not guarantors of the Notes.


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Three Months Ended March 31, 2021
Oil and natural gas revenues	$	314,646	$	1,587	$	—	$	—	$	316,233
Midstream services revenues	—		43,909		—		(28,471)		15,438
Sales of purchased natural gas	2,462		2,048		—		—		4,510

Realized loss on derivatives	(25,913)		—		—		—		(25,913)
Unrealized loss on derivatives	(43,423)		—		—		—		(43,423)
Expenses(1)	156,444		26,247		19,962		(28,471)		174,182
Operating income (loss)(2)	$	91,328	$	21,297	$	(19,962)	$	—	$	92,663






Total assets	$	2,881,242	$	831,239	$	26,400	$	—	$	3,738,881
Capital expenditures(3)	$	134,865	$	9,773	$	133	$	—	$	144,771

_____________________

(2)Includes $8.9 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Three Months Ended March 31, 2020
Oil and natural gas revenues	$	196,795	$	1,119	$	—	$	—	$	197,914
Midstream services revenues	—		37,749		—		(21,919)		15,830
Sales of purchased natural gas	3,595		6,949		—		—		10,544

Realized gain on derivatives	10,867		—		—		—		10,867
Unrealized gain on derivatives	136,430		—		—		—		136,430
Expenses(1)	161,325		24,330		14,317		(21,919)		178,053
Operating income (loss)(2)	$	186,362	$	21,487	$	(14,317)	$	—	$	193,532






Total assets	$	3,571,257	$	715,413	$	47,001	$	—	$	4,333,671
Capital expenditures(3)	$	209,735	$	68,073	$	787	$	—	$	278,595

_____________________

(2)Includes $9.4 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Debt Senior Unsecured Notes (Details) - Senior Notes $ in Millions	Mar. 31, 2021 USD ($)
Senior Notes Due 2026
Debt Instrument [Line Items]
Long-term debt outstanding	$ 1,050
2026 Notes Offering
Debt Instrument [Line Items]
Interest rate	5.875%

Derivative Financial Instruments Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liability	$ 79,312	$ 35,889