0001520006-22-000065 | 10-K | XBRL Viewer

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 31, 2021	Dec. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Stockholders' Equity [Abstract]
Contribution related to formation of San Mateo, I, tax			$ 3,600	$ 3,100	$ 3,100
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, tax				$ 4,800	$ 5,900
Common stock, dividends (in usd per share)	$ 0.05	$ 0.025	$ 0.125
Dividends, common stock, cash			$ (14,581)

Equity (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 31, 2021	Dec. 31, 2021	Dec. 31, 2021
Stockholders' Equity Note [Abstract]
Common stock, dividends (in usd per share)	$ 0.05	$ 0.025	$ 0.125
Dividends paid			$ 14,581
Preferred shares authorized (in shares)		2,000,000	2,000,000

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating activities
Net income (loss)	$ 640,636	$ (553,560)	$ 122,982
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Unrealized (gain) loss on derivatives	(21,011)	32,008	53,727
Depletion, depreciation and amortization	344,905	361,831	350,540
Accretion of asset retirement obligations	2,068	1,948	1,822
Full-cost ceiling impairment	0	684,743	0
Stock-based compensation expense	9,039	13,625	18,505
Net deferred income tax provision (benefit)	74,710	(45,599)	35,532
Amortization of debt issuance cost	3,659	2,832	2,484
Net loss on asset sales and impairment	331	2,832	967
Changes in operating assets and liabilities
Accounts receivable	(98,456)	53,001	(43,261)
Lease and well equipment inventory	(1,537)	(655)	4,777
Prepaid expenses	(11,786)	(3,010)	(4,844)
Other assets	56	1,681	678
Accounts payable, accrued liabilities and other current liabilities	76,891	(43,844)	(19,004)
Royalties payable	28,310	(19,144)	20,417
Advances from joint interest owners	7,018	(10,646)	3,869
Other long-term liabilities	(1,478)	(461)	2,851
Net cash provided by operating activities	1,053,355	477,582	552,042
Investing activities
Drilling, completion and equipping capital expenditures	(431,136)	(471,087)	(679,395)
Acquisition of oil and natural gas properties	(238,609)	(72,809)	(50,766)
Midstream capital expenditures	(63,359)	(234,359)	(192,035)
Expenditures for other property and equipment	(376)	(2,200)	(3,701)
Proceeds from sale of assets	4,215	4,789	21,921
Net cash used in investing activities	(729,265)	(775,666)	(903,976)
Financing activities
Repayments of borrowings under Credit Agreement	(600,000)	(35,000)	(35,000)
Borrowings under Credit Agreement	260,000	220,000	250,000
Repayments of borrowings under San Mateo Credit Facility	(84,000)	0	0
Borrowings under San Mateo Credit Facility	135,000	46,000	68,000
Cost to enter into or amend credit facilities	(4,108)	(660)	(1,443)
Proceeds from stock options exercised	1,335	45	3,300
Dividends paid	(14,581)
Contributions related to formation of San Mateo	48,626	14,700	14,700
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries	0	119,700	77,330
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries	(61,985)	(45,570)	(39,200)
Taxes paid related to net share settlement of stock-based compensation	(8,211)	(1,556)	(3,691)
Other	(629)	6,680	(918)
Net cash (used in) provided by financing activities	(328,553)	324,339	333,078
(Decrease) increase in cash and restricted cash	(4,463)	26,255	(18,856)
Cash and restricted cash at beginning of period	91,383	65,128	83,984
Cash and restricted cash at end of period	$ 86,920	$ 91,383	$ 65,128

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Summary of the Company's property and equipment

The following table presents a summary of the Company’s property and equipment balances as of December 31, 2021 and 2020 (in thousands).


	December 31,
	2021		2020
Oil and natural gas properties
Evaluated (subject to amortization)	$	6,007,325	$	5,295,931
Unproved and unevaluated (not subject to amortization)	964,714		902,133
Total oil and natural gas properties	6,972,039		6,198,064
Accumulated depletion	(3,933,355)		(3,623,265)
Net oil and natural gas properties	3,038,684		2,574,799
Midstream properties
Midstream equipment and facilities	900,979		841,695
Accumulated depreciation	(92,574)		(61,113)
Net midstream properties	808,405		780,582
Other property and equipment
Furniture, fixtures and other equipment	10,923		10,591
Software	8,225		8,116
Leasehold improvements	10,975		10,854
Total other property and equipment	30,123		29,561
Accumulated depreciation	(20,527)		(17,173)
Net other property and equipment	9,596		12,388
Net property and equipment	$	3,856,685	$	3,367,769

Breakdown of the Company's unproved and unevaluated property costs not subject to amortization

The following table provides a breakdown of the Company’s unproved and unevaluated property costs not subject to amortization as of December 31, 2021 and the year in which these costs were incurred (in thousands).


Description	2021		2020		2019		2018		2017 and prior		Total
Costs incurred for
Property acquisition	$	111,120	$	40,355	$	40,140	$	417,114	$	287,666	$	896,395
Exploration wells	14,738		411		1,199		123		274		16,745
Development wells	46,232		2,027		3,245		60		10		51,574

Total	$	172,090	$	42,793	$	44,584	$	417,297	$	287,950	$	964,714

Asset Retirement Obligations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Changes in the Company's asset retirement obligations
Beginning asset retirement obligations	$ 38,542	$ 36,211
Liabilities incurred during period	2,294	2,548
Liabilities settled during period	(151)	(290)
Revisions in estimated cash flows	86	(1,875)
Divestitures during the period	(880)	0
Accretion expense	2,068	1,948
Ending asset retirement obligations	41,959	38,542
Less: current asset retirement obligations	(270)	(623)
Long-term asset retirement obligations	$ 41,689	$ 37,919

Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Offsetting Derivative Assets [Abstract]
Derivative liability		$ (35,889)
Total	$ (14,878)
Derivative Asset (Liability) Subject to Master Netting Arrangement	0
Derivative Asset (Liability), Net	(14,878)
Offsetting Derivative Liabilities [Abstract]
Derivative Asset		0
Current assets
Offsetting Derivative Assets [Abstract]
Gross amounts of recognized liabilities		382,328
Gross amounts netted in the consolidated balance sheet		375,601
Derivative liability		6,727
Offsetting Derivative Liabilities [Abstract]
Gross amounts of recognized assets	215,145
Gross amounts netted in the consolidated balance sheets	(213,174)
Derivative Asset	1,971
Other Assets
Offsetting Derivative Liabilities [Abstract]
Gross amounts of recognized assets		150,194
Gross amounts netted in the consolidated balance sheets		(147,624)
Derivative Asset		2,570
Long-term liabilities
Offsetting Derivative Assets [Abstract]
Gross amounts of recognized liabilities		(147,624)
Gross amounts netted in the consolidated balance sheet		(147,624)
Derivative liability		0
Current liabilities
Offsetting Derivative Assets [Abstract]
Gross amounts of recognized liabilities	(230,023)	(420,787)
Gross amounts netted in the consolidated balance sheet	(213,174)	(375,601)
Derivative liability	$ (16,849)	$ (45,186)

Business Combinations and Asset Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The preliminary allocation of the consideration given related to this business combination was as follows (in thousands). The Company anticipates that the allocation of the consideration given should be finalized during 2022 upon determination of the final customary purchase price adjustments.


Consideration given			Allocation
Cash			$161,680
Working capital adjustments to be paid in 2022			6,500
Fair value of contingent consideration at December 14, 2021			6,718
Total consideration given			$174,898

Allocation of purchase price
Oil and natural gas properties
Evaluated			$139,312
Unproved and unevaluated			43,204
Accrued liabilities			(360)
Advances from joint interest owners			(6,865)
Asset retirement obligations			(393)
Net assets acquired			$174,898

Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Oil and natural gas properties
Evaluated (subject to amortization)	$ 6,007,325	$ 5,295,931
Total unproved and unevaluated	964,714	902,133
Total oil and natural gas properties	6,972,039	6,198,064
Accumulated depletion	(3,933,355)	(3,623,265)
Net oil and natural gas properties	3,038,684	2,574,799
Midstream Properties [Abstract]
Midstream properties	900,979	841,695
Accumulated depreciation	4,046,456	3,701,551
Other property and equipment
Other property and equipment	30,123	29,561
Accumulated depreciation	(20,527)	(17,173)
Net other property and equipment	9,596	12,388
Net property and equipment	3,856,685	3,367,769
Midstream equipment and facilities
Midstream Properties [Abstract]
Midstream properties	900,979	841,695
Accumulated depreciation	92,574	61,113
Net midstream properties	808,405	780,582
Furniture, fixtures and other equipment
Other property and equipment
Other property and equipment	10,923	10,591
Software
Other property and equipment
Other property and equipment	8,225	8,116
Leasehold improvements
Other property and equipment
Other property and equipment	$ 10,975	$ 10,854

Employee Benefit Plans (Details) - USD ($)	12 Months Ended
Employee Benefit Plans (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Employee Benefit Plan (Textual) [Abstract]
Employees annual compensation	3.00%
Safe Harbor match	$ 1,600,000	$ 1,400,000	$ 1,400,000
Discretionary matching contributions	2,100,000	$ 1,800,000	$ 1,700,000
No additional discretionary contributions	$ 0

Supplemental Disclosures Supplemental Disclosures (Details 2) (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Supplemental Disclosures [Abstract]
Cash	$ 48,135	$ 57,916	$ 40,024
Restricted cash	38,785	33,467	25,104
Total cash and restricted cash	$ 86,920	$ 91,383	$ 65,128	$ 83,984

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation

The consolidated financial statements include the accounts of Matador and its wholly-owned and majority-owned subsidiaries. These consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). Accordingly, 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 (“ASC”), 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 balances and transactions have been eliminated in consolidation.

Use of Estimates

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 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, purchase price allocations 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. The Company’s oil and natural gas reserves estimates, which are inherently imprecise and based upon many factors that are beyond the Company’s control, including oil and natural gas prices, are prepared by the Company’s engineering staff in accordance with guidelines established by the Securities and Exchange Commission (“SEC”) and then audited for their reasonableness and conformance with SEC guidelines by Netherland, Sewell & Associates, Inc., independent reservoir engineers. 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.

Restricted Cash

Restricted cash represents a portion of the cash associated with the Company’s less-than-wholly-owned subsidiaries, primarily San Mateo. By contractual agreement, the cash in the accounts held by the Company’s less-than-wholly-owned subsidiaries is not to be commingled with other Company cash and is to be used only to fund the capital expenditures and operations of these less-than-wholly-owned subsidiaries.

Accounts Receivable

The Company sells its operated oil, natural gas and natural gas liquid (“NGL”) production to various purchasers (see “—Revenues” below). In addition, the Company may participate with industry partners in the drilling, completion and operation of oil and natural gas wells. Substantially all of the Company’s accounts receivable are due from purchasers of oil, natural gas and NGLs, participants in oil and natural gas wells for which the Company serves as the operator, San Mateo’s customers or the Company’s derivative counterparties. Accounts receivable are typically due within 30 to 60 days of the production date and 30 days of the billing date and are stated at amounts due from purchasers and industry partners. Amounts are considered past due if they have been outstanding for 60 days or more. No interest is typically charged on past due amounts.

The Company reviews its need for an allowance for doubtful accounts on a periodic basis and determines the allowance, if any, by considering the length of time past due, previous loss history, future net revenues associated with the debtor’s ownership interest in oil and natural gas properties operated by the Company and the debtor’s ability to pay its obligations, among other things.

Lease and Well Equipment Inventory

Lease and well equipment inventory is stated at the lower of cost or market and consists entirely of materials or equipment scheduled for use in future well or midstream operations.

Property and Equipment

Oil and Natural Gas Properties

The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated in a single cost center representing the Company’s activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, capitalized interest on qualifying projects and general and administrative expenses directly related to acquisition, exploration and development activities, but do not include any costs related to production, selling or general corporate administrative activities. The Company capitalized $38.4 million, $30.0 million and $31.1 million of its general and administrative costs into oil and natural gas properties in 2021, 2020 and 2019, respectively. The Company capitalized $4.8 million, $5.0 million and $7.6 million of its interest expense into oil and natural gas properties for the years ended December 31, 2021, 2020 and 2019, respectively.

Capitalized costs of oil and natural gas properties are amortized using the unit-of-production method based upon production and estimates of proved reserves quantities. For the years ended December 31, 2021, 2020 and 2019, the Company recorded depletion expense of $310.1 million, $334.8 million and $330.7 million, respectively. Unproved and unevaluated property costs are excluded from the amortization base used to determine depletion. Unproved and unevaluated properties are assessed for possible impairment on a periodic basis based upon changes in operating or economic conditions. This assessment includes consideration of the following factors, among others: the assignment of proved reserves, geological and geophysical evaluations, intent to drill, remaining lease term and drilling activity and results. Upon impairment, the costs of the unproved and unevaluated properties are immediately included in the amortization base. Exploratory dry holes are included in the amortization base immediately upon determination that the well is not productive.

Sales of oil and natural gas properties are accounted for as adjustments to net capitalized costs with no gain or loss recognized, unless such adjustments would significantly alter the relationship between net capitalized costs and proved reserves of oil and natural gas. All costs related to production activities and maintenance and repairs are expensed as incurred. Significant workovers that increase the properties’ reserves are capitalized.

Ceiling Test

The net capitalized costs of oil and natural gas properties are limited to the lower of unamortized costs less related deferred income taxes or the cost center “ceiling.” The cost center ceiling is defined as the sum of:

(a) the present value, discounted at 10%, of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus

(b) unproved and unevaluated property costs not being amortized, plus

(c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less

(d) any income tax effects related to the properties involved.

Any excess of the Company’s net capitalized costs above the cost center ceiling as described above is charged to operations as a full-cost ceiling impairment. The Company’s derivative instruments are not considered in the ceiling test computations as the Company does not designate these instruments as hedge instruments for accounting purposes.

The estimated present value of after-tax future net cash flows from proved oil and natural gas reserves is highly dependent upon the quantities of proved reserves, the estimation of which requires substantial judgment. The associated commodity prices and the applicable discount rate used in these estimates are in accordance with guidelines established by the SEC. Under these guidelines, oil and natural gas reserves are estimated using then-current operating and economic conditions, with no provision for price and cost changes in future periods except by contractual arrangements. Future net revenues are calculated using prices that represent the arithmetic averages of the first-day-of-the-month oil and natural gas prices for the previous 12-month period, and a 10% discount factor is used to determine the present value of future net revenues. For the period from January through December 2021, these average oil and natural gas prices were $63.04 per Bbl and $3.60 per MMBtu, respectively. For the period from January through December 2020, these average oil and natural gas prices were $36.04 per Bbl and $1.99 per MMBtu, respectively. For the period from January through December 2019, these average oil and natural gas prices were $52.19 per Bbl and $2.58 per MMBtu, respectively. In estimating the present value of after-tax future net cash flows from proved oil and natural gas reserves, the average oil prices were further adjusted by property for quality, transportation and marketing fees and regional price differentials, and the average natural gas prices were further adjusted by property for energy content, transportation and marketing fees and regional price differentials.

During the years ended December 31, 2021 and 2019, the Company’s full-cost ceiling exceeded the net capitalized costs less related deferred income taxes. As a result, the Company recorded no impairment to its net capitalized costs during the years ended December 31, 2021 and 2019.

For the year ended December 31, 2020, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling. As a result, the Company recorded an impairment charge of $684.7 million, exclusive of tax effect, to its consolidated statement of operations for the year ended December 31, 2020 with the related deferred income tax benefit recorded net of a valuation allowance (see Note 8).

As a non-cash item, the full-cost ceiling impairment impacts the accumulated depletion and the net carrying value of the Company’s assets on its consolidated balance sheets, as well as the corresponding shareholders’ equity, but it has no impact on the Company’s net cash flows as reported. Changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company’s actual ceiling test computation and impairment analyses in future periods.

Midstream Properties and Other Property and Equipment

Midstream properties and other property and equipment are recorded at historical cost and include midstream equipment and facilities, including the Company’s pipelines, processing facilities and produced water disposal systems, and corporate assets, including furniture, fixtures, equipment, land and leasehold improvements. Midstream equipment and facilities are depreciated over a 30-year useful life using the straight-line, mid-month convention method. Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Software, furniture, fixtures and other equipment are depreciated over their useful life (five to 30 years) using the straight-line method. The Company capitalized $1.3 million, $1.8 million and $1.8 million of general and administrative costs into midstream properties in 2021, 2020 and 2019, respectively. The Company did not capitalize any interest expense into midstream properties for the year ended December 31, 2021. The Company capitalized $0.5 million and $0.9 million of interest expense into midstream properties for the years ended December 31, 2020 and 2019. Maintenance and repair costs that do not extend the useful life of the property or equipment are expensed as incurred. See Note 3 for a detail of midstream properties and other property and equipment.

The Company evaluates midstream properties and other property and equipment for potential impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. The carrying amount of a long-lived asset is not recoverable when it exceeds the undiscounted sum of the future cash flows expected to result from the use and eventual disposition of the asset. Expected future cash flows represent management’s estimates based on reasonable and supportable assumptions.

Gains and losses associated with the disposition of midstream properties and other property and equipment are recognized as a component of other income (expense) in the consolidated statements of operations.

Asset Retirement Obligations

Asset Retirement ObligationsThe Company recognizes the fair value of an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is recorded as a liability at its estimated present value, with an offsetting increase recognized in oil and natural gas properties, midstream properties or other property and equipment on the consolidated balance sheets. Periodic accretion of the discounted value of the estimated liability is recorded as an expense in the consolidated statements of operations.

Derivative Financial Instruments

Derivative Financial InstrumentsFrom time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and NGL prices. The Company’s derivative financial instruments are recorded on the consolidated balance sheets as either an asset or a liability measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments, and as a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statements of operations. The fair value of the Company’s derivative financial instruments is determined using 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. Realized gains and losses from the settlement of derivative financial instruments and unrealized gains and unrealized losses from valuation changes in the remaining unsettled derivative financial instruments are reported as a component of revenues in the consolidated statements of operations. See Note 12 for additional information about the Company’s derivative instruments.

Revenues

The Company enters into contracts with customers to sell its oil and natural gas production. Revenue from these contracts is recognized when the Company’s performance obligations under these contracts are satisfied, which generally occurs with the transfer of control of the oil and natural gas to the purchaser. Control is generally considered transferred when the following criteria are met: (i) transfer of physical custody, (ii) transfer of title, (iii) transfer of risk of loss and (iv) relinquishment of any repurchase rights or other similar rights. Given the nature of the products sold, revenue is recognized at a point in time based on the amount of consideration the Company expects to receive in accordance with the price specified in the contract. Consideration under oil and natural gas marketing contracts is typically received from the purchaser one to two months after production.

The majority of the Company’s oil marketing contracts transfer physical custody and title at or near the wellhead or a central delivery point, which is generally when control of the oil has been transferred to the purchaser. The majority of the oil produced is sold under contracts using market-based pricing, which price is then adjusted for differentials based upon delivery location and oil quality. To the extent the differentials are incurred at or after the transfer of control of the oil, the differentials are included in oil revenues on the statements of operations, as they represent part of the transaction price of the contract. If the differentials, or other related costs, are incurred prior to the transfer of control of the oil, those costs are included in production taxes, transportation and processing expenses on the Company’s consolidated statements of operations, as they represent payment for services performed outside of the contract with the customer.

The Company’s natural gas is sold at the lease location, at the inlet or outlet of a natural gas processing plant or at an interconnect near a marketing hub following transportation from a processing plant. The majority of the Company’s natural gas is sold under fee-based contracts. When the natural gas is sold at the lease, the purchaser gathers the natural gas via pipeline to natural gas processing plants where, if necessary, NGLs are extracted. The NGLs and remaining residue gas are then sold by the purchaser, or if the Company elects to take in-kind the natural gas or the NGLs, the Company sells the natural gas or the NGLs to a third party. Under the fee-based contracts, the Company receives NGL and residue gas value, less the fee component, or is invoiced the fee component. To the extent control of the natural gas transfers upstream of the gathering and processing activities, revenue is recognized as the net amount received from the purchaser. To the extent that control transfers downstream of those services, revenue is recognized on a gross basis, and the related costs are included in production taxes, transportation and processing expenses on the Company’s consolidated statements of operations.

The Company recognizes midstream services revenues at the time services have been rendered and the price is fixed and determinable. Third-party midstream services revenues are those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues related to the Company’s

working interest are eliminated in consolidation. Since the Company has a right to payment from its customers in amounts that correspond directly to the value that the customer receives from the performance completed on each contract, the Company applies the practical expedient in Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASC 606”) that allows recognition of revenue in the amount for which there is a right to invoice the customer without estimating a transaction price for each contract and allocating that transaction price to the performance obligations within each contract.

The Company periodically enters into natural gas purchase transactions with third parties whereby the Company (i) purchases the third party’s natural gas and subsequently sells the natural gas to other purchasers or (ii) processes the third party’s natural gas at San Mateo’s Black River cryogenic natural gas processing plant in Eddy County, New Mexico (the “Black River Processing Plant”) and then purchases, and subsequently sells, the residue gas and NGLs to other purchasers. Revenues and expenses from these transactions are presented on a gross basis on the Company’s consolidated statements of operations as the Company acts as a principal in the transactions by assuming the risk and rewards of ownership, including credit risk, of the natural gas purchased and by assuming the responsibility to deliver and process the natural gas volumes to be sold.

From time to time, the Company, as an owner of mineral interests, may enter into or extend a lease to a third-party lessee to develop the oil and natural gas attributable to certain of its mineral interests in return for a specified payment or lease bonus. In those instances, revenue is recognized in the period when the lease is signed and the Company has no further obligation to the lessee. The Company records these payments as “Lease bonus - mineral acreage” revenues on its consolidated statements of operations.

The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the years ended December 31, 2021, 2020 and 2019 (in thousands).


	Year Ended December 31,
	2021		2020		2019
Revenues from contracts with customers	$	1,862,075	$	851,135	$	1,026,204
Lease bonus - mineral acreage	—		4,062		1,711
Realized (loss) gain on derivatives	(220,105)		38,937		9,482
Unrealized gain (loss) on derivatives	21,011		(32,008)		(53,727)
Total revenues	$	1,662,981	$	862,126	$	983,670


	Year Ended December 31,
	2021		2020		2019
Oil revenues	$	1,205,608	$	595,507	$	759,811
Natural gas revenues	494,934		148,954		132,514
Third-party midstream services revenues	75,499		64,932		59,110
Sales of purchased natural gas	86,034		41,742		74,769
Total revenues from contracts with customers	$	1,862,075	$	851,135	$	1,026,204

The Company does not disclose the value of unsatisfied performance obligations under its contracts with customers as it applies the practical expedient in accordance with ASC 606. The expedient, as described in ASC 606-10-50-14(a), applies to variable consideration that is recognized as control of the product is transferred to the customer. Since each unit of product represents a separate performance obligation, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.

Stock-Based Compensation

The Company may grant equity-based and liability-based common stock, stock options, restricted stock, restricted stock units, performance stock units and other awards permitted under any long-term incentive plan of the Company then in effect to members of its Board of Directors and certain employees, contractors and advisors. All equity-based awards are measured at

fair value on the date of grant and are recognized on a straight-line basis over the awards’ vesting periods as either a component of general and administrative expenses in the consolidated statements of operations or capitalized in accordance with the Company’s policy on capitalizing general and administrative expenses for employees involved in acquisition, exploration and development activities. Awards that are expected to be settled in cash are liability-based awards, which are measured at fair value at each reporting date and are recognized over the awards’ vesting periods either as a component of general and administrative expenses in the consolidated statements of operations or capitalized in accordance with the Company’s policy on capitalizing general and administrative expenses for employees involved in acquisition, exploration and development activities.The Company uses the Black Scholes Merton option pricing model to measure the fair value of stock options and the Monte Carlo simulation method to measure the fair value of performance units. The closing price of Matador’s common stock on the grant date is used to measure the fair value of restricted stock and restricted stock unit awards granted under the 2012 Long-Term Incentive Plan (as subsequently amended and restated, the “2012 Incentive Plan”), while the closing price of Matador’s common stock on the trading day prior to the grant date is used to measure the fair value of restricted stock and restricted stock unit awards granted under the 2019 Long-Term Incentive Plan (the “2019 Incentive Plan”).

Income Taxes

The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and records a valuation allowance for the portion of any deferred tax assets when it is more likely than not that the benefit from the deferred tax asset will not be realized.

The Company recognizes the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. At December 31, 2021, 2020 and 2019, the Company had not established any reserves for, nor recorded any unrecognized tax benefits related to, uncertain tax positions.

When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of operations. The Company did not record any interest or penalties related to income taxes for the years ended December 31, 2021, 2020 and 2019.

Earnings Per Common Share

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

The following are reconciliations of the numerators and denominators used to compute the Company’s basic and diluted earnings per common share as reported for the years ended December 31, 2021, 2020 and 2019 (in thousands, except per share data).


	Year Ended December 31,
	2021		2020		2019

Net income (loss) attributable to Matador Resources Company shareholders — numerator	$	584,968	$	(593,205)	$	87,777

Weighted average common shares outstanding — denominator
Basic	116,999		116,068		116,555
Dilutive effect of options and restricted stock units	2,164		—		508
Diluted weighted average common shares outstanding	119,163		116,068		117,063
Earnings (loss) per common share attributable to Matador Resources Company shareholders
Basic	$	5.00	$	(5.11)	$	0.75
Diluted	$	4.91	$	(5.11)	$	0.75

A total of 2.5 million and 2.6 million options to purchase shares of Matador’s common stock were excluded from the diluted weighted average common shares outstanding for the years ended December 31, 2020 and 2019, respectively, because their effects were anti-dilutive. Additionally, 0.7 million restricted shares, which are participating securities, were excluded from the calculations above for the year ended December 31, 2020 as the security holders do not have the obligation to share in the losses of the Company.

Credit Risk

The Company’s cash is held in financial institutions and at times these amounts exceed the insurance limits of the Federal Deposit Insurance Corporation. Management believes, however, that the Company’s counterparty risks are minimal based on the reputation and history of the institutions selected.

The Company uses derivative financial instruments to mitigate its exposure to oil, natural gas and NGL price volatility. These transactions expose the Company to potential credit risk from its counterparties. The Company manages counterparty credit risk through established internal derivatives policies that are reviewed on an ongoing basis. Additionally, the Company’s commodity derivative contracts at December 31, 2021 were with The Bank of Nova Scotia, BMO Harris Financing, Inc. (Bank of Montreal), PNC Bank and Royal Bank of Canada (or affiliates thereof), and all but BMO Harris Financing, Inc. (Bank of Montreal) were parties that are lenders (or affiliates thereof) under the Company’s reserves-based revolving credit agreement.

Accounts receivable constitute the principal component of additional credit risk to which the Company may be exposed. The Company attempts to minimize credit risk exposure to counterparties by monitoring the financial condition and payment history of its purchasers and joint interest partners.

Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Net income (loss) attributable to Matador Resources Company shareholders — numerator	$ 584,968	$ (593,205)	$ 87,777
Weighted average common shares outstanding — denominator
Basic (in shares)	116,999	116,068	116,555
Dilutive effect of options and restricted stock units (in shares)	2,164	0	508
Diluted weighted average common shares outstanding (in shares)	119,163	116,068	117,063
Earnings (loss) per common share attributable to Matador Resources Company shareholders
Basic (usd per share)	$ 5.00	$ (5.11)	$ 0.75
Diluted (usd per share)	$ 4.91	$ (5.11)	$ 0.75

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 31: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 32: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 33: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(A))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 34: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8906-108599

Reference 35: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

+ Details

Supplemental Disclosures (Tables)

12 Months Ended

Dec. 31, 2021

Supplemental Disclosures [Abstract]

Summary of current accrued liabilities

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


	December 31,
	2021		2020
Accrued evaluated and unproved and unevaluated property costs	$	128,598	$	44,012
Accrued midstream properties costs	7,799		12,776

Accrued lease operating expenses	32,182		24,276
Accrued interest on debt	18,232		18,315
Accrued asset retirement obligations	270		623
Accrued partners’ share of joint interest charges	17,460		7,407

Accrued payable related to purchased natural gas	11,284		418
Other	37,458		11,331
Total accrued liabilities	$	253,283	$	119,158

Supplemental disclosures of cash flow information

The following table provides supplemental disclosures of cash flow information for the years ended December 31, 2021, 2020 and 2019 (in thousands).


	Year Ended December 31,
	2021		2020		2019

Cash paid for interest expense, net of amounts capitalized	$	74,843	$	76,880	$	75,525
Increase (decrease) in asset retirement obligations related to mineral properties	$	1,091	$	(208)	$	2,912
Increase in asset retirement obligations related to midstream properties	$	257	$	690	$	1,204
Increase (decrease) in liabilities for drilling, completion and equipping capital expenditures	$	80,255	$	(26,126)	$	(13,310)
Increase (decrease) increase in liabilities for acquisition of oil and natural gas properties	$	2,981	$	(2,346)	$	(2,567)
(Decrease) increase in liabilities for midstream capital expenditures	$	(4,478)	$	(33,609)	$	30,374



Stock-based compensation expense recognized as liability	$	24,494	$	3,702	$	3,170


Transfer of inventory (to) from oil and natural gas properties	$	(398)	$	608	$	1,515

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


	Year Ended December 31,
	2021		2020		2019
Cash	$	48,135	$	57,916	$	40,024
Restricted cash	38,785		33,467		25,104
Total cash and restricted cash	$	86,920	$	91,383	$	65,128

Property and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

The following table presents a summary of the Company’s property and equipment balances as of December 31, 2021 and 2020 (in thousands).


	December 31,
	2021		2020
Oil and natural gas properties
Evaluated (subject to amortization)	$	6,007,325	$	5,295,931
Unproved and unevaluated (not subject to amortization)	964,714		902,133
Total oil and natural gas properties	6,972,039		6,198,064
Accumulated depletion	(3,933,355)		(3,623,265)
Net oil and natural gas properties	3,038,684		2,574,799
Midstream properties
Midstream equipment and facilities	900,979		841,695
Accumulated depreciation	(92,574)		(61,113)
Net midstream properties	808,405		780,582
Other property and equipment
Furniture, fixtures and other equipment	10,923		10,591
Software	8,225		8,116
Leasehold improvements	10,975		10,854
Total other property and equipment	30,123		29,561
Accumulated depreciation	(20,527)		(17,173)
Net other property and equipment	9,596		12,388
Net property and equipment	$	3,856,685	$	3,367,769


Description	2021		2020		2019		2018		2017 and prior		Total
Costs incurred for
Property acquisition	$	111,120	$	40,355	$	40,140	$	417,114	$	287,666	$	896,395
Exploration wells	14,738		411		1,199		123		274		16,745
Development wells	46,232		2,027		3,245		60		10		51,574

Total	$	172,090	$	42,793	$	44,584	$	417,297	$	287,950	$	964,714

Property acquisition costs are costs incurred to purchase, lease or otherwise acquire oil and natural gas properties, but may also include broker and legal expenses, geological and geophysical expenses and capitalized internal costs associated with developing oil and natural gas prospects on these properties. Property acquisition costs are transferred into the amortization base on an ongoing basis as these properties are evaluated and proved reserves are established or impairment is determined. Unproved and unevaluated properties are assessed for possible impairment on a periodic basis based upon changes in operating or economic conditions.

Property acquisition costs incurred that remain in unproved and unevaluated property at December 31, 2021 are related to the Company’s leasehold and mineral acquisitions in the Delaware Basin in Southeast New Mexico and West Texas. These costs are associated with acreage for which proved reserves have yet to be assigned. A significant portion of these costs are associated with properties that are held by production or have automatic lease renewal options. As the Company drills wells and assigns proved reserves to these properties or determines that certain portions of this acreage, if any, cannot be assigned proved reserves, portions of these costs are transferred to the amortization base.

Costs excluded from amortization also include those costs associated with exploration and development wells in progress or awaiting completion at year-end. These costs are transferred into the amortization base on an ongoing basis as these wells are completed and proved reserves are established or confirmed. These costs totaled $68.3 million at December 31, 2021. Of this total, $16.7 million was associated with exploration wells and $51.6 million was associated with development wells. The

Company anticipates that most of the $68.3 million associated with these wells in progress at December 31, 2021 will be transferred to the amortization base during 2022. Unproved and unevaluated property costs for exploration and development wells incurred in years prior to 2021 are costs related to the advanced preparation for wells that the Company intends to drill in the future.

Leases - Lease Terms (Details)	Dec. 31, 2021
Weighted-Average Remaining Lease Term
Operating leases	2 years 6 months
Financing leases	1 year 8 months 12 days

Consolidated Statements of Changes in Shareholders' Equity - USD ($)	Total	Common stock	Additional paid-in capital	Accumulated deficit	Treasury stock	Parent	Noncontrolling Interest	San Mateo I	San Mateo I Additional paid-in capital	San Mateo I Parent	San Mateo II	San Mateo II Additional paid-in capital	San Mateo II Parent	San Mateo II Noncontrolling Interest
Beginning Balance at Dec. 31, 2018	$ 1,779,657,000	$ 1,164,000	$ 1,924,408,000	$ (236,277,000)	$ (415,000)	$ 1,688,880,000	$ 90,777,000
Beginning Balance, shares (in shares) at Dec. 31, 2018		116,375,000			21,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock pursuant to employee stock compensation plan, shares		240,000
Issuance of common stock pursuant to employee stock compensation plan	0	$ 2,000	(2,000)			0
Issuance of Class A common stock to Board member and advisors, shares		50,000
Issuance of Class A common stock to Board member and advisors	0	$ 0	0			0
Stock options expense related to equity based awards	23,396,000		23,396,000			23,396,000
Stock options exercised, shares		220,000
Stock options exercised, net of options forfeited in net share settlements	3,300,000	$ 2,000	3,298,000			3,300,000
Liability-Based Stock Option Awards Settled, Shares		1,000
Liability-Based Stock Option Awards Settled	11,000		11,000			11,000
Restricted stock forfeited, shares					222,000
Restricted stock forfeited	(3,691,000)				$ (3,691,000)	(3,691,000)
Contributions related to formation of San Mateo I (see Note 6)								$ 11,613,000	$ 11,613,000	$ 11,613,000	$ 0	$ (506,000)	$ (506,000)	$ 506,000
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries	71,384,000		22,874,000			22,874,000	48,510,000
Distributions to non-controlling interest owners of less-than wholly-owned subsidiaries	(39,200,000)						(39,200,000)
Cancellation of treasury stock, shares		(242,000)			(242,000)
Cancellation of treasury stock	0	$ (2,000)	(4,078,000)		$ 4,080,000	0
Net (loss) income	122,982,000			87,777,000		87,777,000	35,205,000
Ending Balance, shares (in shares) at Dec. 31, 2019		116,644,000			1,000
Ending Balance at Dec. 31, 2019	1,969,452,000	$ 1,166,000	1,981,014,000	(148,500,000)	$ (26,000)	1,833,654,000	135,798,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contribution related to formation of San Mateo, I, tax	3,100,000
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, tax	5,900,000
Issuance of common stock pursuant to employee stock compensation plan, shares		244,000
Issuance of common stock pursuant to employee stock compensation plan	0	$ 2,000	(2,000)				0
Stock Issued During Period, Shares, Issued for Services		85,000
Stock Issued During Period, Value, Issued for Services	0	$ 1,000	(1,000)
Stock options expense related to equity based awards	17,452,000		17,452,000			17,452,000
Stock options exercised, shares		0
APIC, Share-based Payment Arrangement, Recognition and Exercise	(24,000)	$ 0	(24,000)			(24,000)
Liability-Based Stock Option Awards Settled, Shares		22,000
Liability-Based Stock Option Awards Settled	297,000
Restricted stock forfeited, shares					149,000
Restricted stock forfeited	(1,489,000)				$ (1,489,000)	(1,489,000)
Contributions related to formation of San Mateo I (see Note 6)								11,613,000	11,613,000	11,613,000
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries	114,854,000		18,232,000			18,232,000	96,622,000
Distributions to non-controlling interest owners of less-than wholly-owned subsidiaries	(45,570,000)						(45,570,000)
Cancellation of treasury stock, shares		(148,000)			(148,000)
Cancellation of treasury stock		$ 0	(1,512,000)		$ 1,512,000
Net (loss) income	$ (553,560,000)			(593,205,000)		(593,205,000)	39,645,000
Ending Balance, shares (in shares) at Dec. 31, 2020	116,844,768	116,847,000			2,000
Ending Balance at Dec. 31, 2020	$ 1,513,025,000	$ 1,169,000	2,027,069,000	(741,705,000)	$ (3,000)	1,286,530,000	226,495,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contribution related to formation of San Mateo, I, tax	3,100,000
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, tax	4,800,000
Dividends, common stock, cash	14,581,000			14,581,000		14,581,000
Issuance of common stock pursuant to employee stock compensation plan, shares		768,000
Issuance of common stock pursuant to employee stock compensation plan	0	$ 7,000	(7,000)
Issuance of Class A common stock to Board member and advisors, shares		81,000
Issuance of Class A common stock to Board member and advisors	0	$ 1,000	(1,000)
Stock options expense related to equity based awards	$ 12,113,000		12,113,000			12,113,000
Stock options exercised, shares	1,368,000	312,000
APIC, Share-based Payment Arrangement, Recognition and Exercise	$ (4,255,000)	$ 3,000	(4,258,000)			(4,255,000)
Restricted stock forfeited, shares					156,000
Restricted stock forfeited	(2,621,000)				$ (2,621,000)	(2,621,000)
Contributions related to formation of San Mateo I (see Note 6)								$ 45,056,000	$ 45,056,000	$ 45,056,000
Distributions to non-controlling interest owners of less-than wholly-owned subsidiaries	(61,985,000)						(61,985,000)
Cancellation of treasury stock, shares		(146,000)			(146,000)
Cancellation of treasury stock	0	$ 1,000	(2,380,000)		$ 2,381,000
Net (loss) income	$ 640,636,000			584,968,000		584,968,000	55,668,000
Ending Balance, shares (in shares) at Dec. 31, 2021	117,850,233	117,862,000			12,000
Ending Balance at Dec. 31, 2021	$ 2,127,388,000	$ 1,179,000	$ 2,077,592,000	$ (171,318,000)	$ (243,000)	$ 1,907,210,000	$ 220,178,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contribution related to formation of San Mateo, I, tax	$ 3,600,000

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

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

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 December 31, 2021 and 2020 (in thousands).


	Fair Value Measurements at December 31, 2021 using
Description
	Level 1		Level 2		Level 3		Total
Assets (Liabilities)
Oil derivatives and basis swaps	$	—	$	(14,727)	$	—	$	(14,727)
Natural gas derivatives	—		(151)		—		(151)
Contingent consideration related to business combination	—		—		(8,203)		(8,203)
Total	$	—	$	(14,878)	$	(8,203)	$	(23,081)


	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)

Debt Debt Redemption (Details) - Unsecured Debt - Senior Notes Due 2026	Oct. 04, 2018
2021
Debt Instrument [Line Items]
Redemption Price	104.406%
2022
Debt Instrument [Line Items]
Redemption Price	102.938%
2023
Debt Instrument [Line Items]
Redemption Price	101.469%
2024 and thereafter
Debt Instrument [Line Items]
Redemption Price	100.00%

Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lease, Cost

The following table presents supplemental consolidated statement of operations information related to lease expenses, on a gross basis, for the years ended December 31, 2021 and 2020, respectively (in thousands). Lease payments represent gross payments to vendors, which, for certain of the Company’s operating assets, are partially offset by amounts received from other working interest owners in the Company’s operated wells.


	Year Ended December 31,
	2021		2020
Operating leases
Lease operating	$	11,393	$	12,994
Plant and other midstream services	36		28
General and administrative	3,645		3,698
Total operating leases(1)	15,074		16,720
Short-term leases
Lease operating	11,234		12,890
Plant and other midstream services	4,037		5,689
General and administrative	37		47
Total short-term leases(2)(3)	15,308		18,626
Financing leases
Depreciation of assets	566		747
Interest on lease liabilities	138		123
Total financing leases	704		870
Total lease expense	$	31,086	$	36,216

_____________________

(1) Does not include gross payments related to drilling rig leases of $31.9 million and $33.6 million for the years ended December 31, 2021 and 2020, respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the consolidated balance sheets at December 31, 2021 and 2020, respectively.

(2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the consolidated balance sheets as they are short-term leases.

(3) Does not include gross payments related to short-term drilling rig leases and other equipment rentals of $61.7 million and $65.3 million for the years ended December 31, 2021 and 2020, respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the consolidated balance sheets at December 31, 2021 and 2020, respectively.

The following table presents supplemental consolidated cash flow information related to lease payments for the year ended December 31, 2021 and 2020, respectively (in thousands).


	Year Ended December 31,
	2021		2020
Cash paid related to lease liabilities
Operating cash payments for operating leases	$	14,430	$	15,664
Investing cash payments for operating leases	$	31,967	$	33,556
Financing cash payments for financing leases	$	629	$	790

Right of use assets obtained in exchange for lease obligations entered into during the period
Operating leases	$	18,454	$	12,474
Financing leases	$	2,241	$	996

Assets And Liabilities, Lessee

The following table presents supplemental consolidated balance sheet information related to leases as of December 31, 2021 and 2020, respectively (in thousands).


	December 31,
	2021		2020
Operating leases
Other long-term assets	$	29,519	$	51,528
Other current liabilities	$	(19,649)	$	(35,716)
Other long-term liabilities	(15,340)		(21,598)
Total operating lease liabilities	$	(34,989)	$	(57,314)

Financing leases
Other property and equipment, at cost	$	5,914	$	3,673
Accumulated depreciation	(3,485)		(2,134)
Net property and equipment	$	2,429	$	1,539
Other current liabilities	$	(378)	$	(621)
Other long-term liabilities	(45)		(256)
Total financing lease liabilities	$	(423)	$	(877)

Lessee, Lease Terms

The following table presents the maturities of lease liabilities at December 31, 2021 (in years).


Weighted-Average Remaining Lease Term						December 31, 2021
Operating leases						2.5
Financing leases						1.7

Finance Lease, Liability, Maturity

The following table presents a schedule of future minimum lease payments required under all lease agreements as of December 31, 2021 (in thousands).


	December 31, 2021
	Operating Leases		Financing Leases


2022	$	19,649	$	378
2023	6,830		180
2024	4,217		37
2025	4,287		—
2026	1,553		—
Thereafter	—		—
Total lease payments	36,536		595
Less imputed interest	(1,547)		(172)
Total lease obligations	34,989		423
Less current obligations	(19,649)		(378)
Long-term lease obligations	$	15,340	$	45

Lessee, Operating Lease, Liability, Maturity

The following table presents a schedule of future minimum lease payments required under all lease agreements as of December 31, 2021 (in thousands).


	December 31, 2021
	Operating Leases		Financing Leases


2022	$	19,649	$	378
2023	6,830		180
2024	4,217		37
2025	4,287		—
2026	1,553		—
Thereafter	—		—
Total lease payments	36,536		595
Less imputed interest	(1,547)		(172)
Total lease obligations	34,989		423
Less current obligations	(19,649)		(378)
Long-term lease obligations	$	15,340	$	45

Segment Reporting

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Segment Reporting

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 (see Note 6). San Mateo and its subsidiaries are not guarantors of the Notes or the Credit Agreement.

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
Year Ended December 31, 2021
Oil and natural gas revenues	$	1,695,032	$	5,510	$	—	$	—	$	1,700,542
Midstream services revenues	—		228,817		—		(153,318)		75,499
Sales of purchased natural gas	47,398		38,636		—		—		86,034

Realized loss on derivatives	(220,105)		—		—		—		(220,105)
Unrealized gain on derivatives	21,011		—		—		—		21,011
Expenses(1)	794,880		142,444		85,899		(153,318)		869,905
Operating income(2)	$	748,456	$	130,519	$	(85,899)	$	—	$	793,076






Total assets(3)	$	3,324,681	$	879,672	$	57,800	$	—	$	4,262,153
Capital expenditures(4)	$	778,191	$	59,361	$	376	$	—	$	837,928

_____________________

(1)Includes depletion, depreciation and amortization expenses of $310.9 million and $31.5 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $2.6 million.

(2)Includes $55.7 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Excludes intercompany receivables and investments in subsidiaries.

(4)Includes $263.5 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $28.5 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
Year Ended December 31, 2020
Oil and natural gas revenues	$	741,092	$	3,369	$	—	$	—	$	744,461
Midstream services revenues	—		166,194		—		(101,262)		64,932
Sales of purchased natural gas	20,736		21,006		—		—		41,742
Lease bonus - mineral acreage	4,062		—		—		—		4,062
Realized gain on derivatives	38,937		—		—		—		38,937
Unrealized loss on derivatives	(32,008)		—		—		—		(32,008)
Expenses(1)	1,334,378		97,599		52,910		(101,262)		1,383,625
Operating (loss) income(2)	$	(561,559)	$	92,970	$	(52,910)	$	—	$	(521,499)






Total assets(3)	$	2,782,819	$	836,509	$	67,952	$	—	$	3,687,280
Capital expenditures(4)	$	518,198	$	201,440	$	2,200	$	—	$	721,838

_____________________

(1)Includes depletion, depreciation and amortization expenses of $335.8 million and $23.3 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $684.7 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $2.7 million.

(2)Includes $39.6 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Excludes intercompany receivables and investments in subsidiaries.

(4)Includes $70.5 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $112.1 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
Year Ended December 31, 2019
Oil and natural gas revenues	$	886,127	$	6,198	$	—	$	—	$	892,325
Midstream services revenues	—		135,953		—		(76,843)		59,110
Sales of purchased natural gas	4,802		69,967		—		—		74,769
Lease bonus - mineral acreage	1,711		—		—		—		1,711
Realized gain on derivatives	9,482		—		—		—		9,482
Unrealized loss on derivatives	(53,727)		—		—		—		(53,727)
Expenses(1)	621,687		130,612		72,734		(76,843)		748,190
Operating income (loss)(2)	$	226,708	$	81,506	$	(72,734)	$	—	$	235,480






Total assets(3)	$	3,360,725	$	647,937	$	61,014	$	—	$	4,069,676
Capital expenditures(4)	$	718,712	$	223,612	$	3,701	$	—	$	946,025

_____________________

(1)Includes depletion, depreciation and amortization expenses of $331.7 million and $16.1 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $2.7 million.

(2)Includes $35.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Excludes intercompany receivables and investments in subsidiaries.

(4)Includes $48.3 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $145.4 million in capital expenditures 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Operating leases	$ 15,074	$ 16,720
Short-term leases	15,308	18,626
Financing leases
Depreciation of assets	566	747
Interest on lease liabilities	138	123
Total financing leases	704	870
Total lease expense	31,086	36,216
Lease operating
Lessee, Lease, Description [Line Items]
Operating leases	11,393	12,994
Short-term leases	11,234	12,890
Plant and other midstream services
Lessee, Lease, Description [Line Items]
Operating leases	36	28
Short-term leases	4,037	5,689
General and administrative
Lessee, Lease, Description [Line Items]
Operating leases	3,645	3,698
Short-term leases	37	47
Drilling Rig Leases
Financing leases
Gross payments	31,900	33,600
Drilling Rig Leases And Other Equipment Rentals
Financing leases
Gross payments	$ 61,700	$ 65,300

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) purchaser	Dec. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) $ / bbl	Dec. 31, 2021 USD ($) $ / MMBTU	Dec. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) shares	Dec. 31, 2020 USD ($) purchaser	Dec. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) $ / bbl	Dec. 31, 2020 USD ($) $ / MMBTU	Dec. 31, 2019 USD ($)	Dec. 31, 2019 shares	Dec. 31, 2019 purchaser	Dec. 31, 2019	Dec. 31, 2019 $ / bbl	Dec. 31, 2019 $ / MMBTU
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Billing date	30 days
Outstanding days of account receivable	60 days
Allowance for doubtful accounts	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Number of purchasers \| purchaser			3						2						2
Capitalized general and administrative costs		38,400,000					30,000,000						$ 31,100,000
Capitalized interest expense		4,800,000					5,000,000						7,600,000
Depletion		(310,100,000)					(334,800,000)						(330,700,000)
Previous period used for price calculation	12 months
Present value discounted percent of future net revenues of proved oil and natural gas reserves				10.00%
Average oil and natural gas prices					63.04	3.60					36.04	1.99					52.19	2.58
Impairment charge of net capitalized costs		0					684,743,000						0
Stock-based compensation (non-cash) expense		9,039,000					13,625,000						18,505,000
Common stock and restricted stock unit expense		900,000					1,000,000						1,400,000
Compensation expense, liability-based awards		20,400,000					4,000,000						3,200,000
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable due period	30 days
Contract term after production	1 month
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable due period	60 days
Contract term after production	2 months
Plains Marketing, L.P. \| Customer Concentration Risk \| Sales Revenue, Goods, Net
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk, percentage				29.00%						57.00%						53.00%
Plains Marketing, L.P. \| Customer Concentration Risk \| Accounts Receivable
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk, percentage				39.00%
BP America Production Company \| Customer Concentration Risk \| Sales Revenue, Goods, Net
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk, percentage										10.00%						14.00%
BP America Production Company \| Customer Concentration Risk \| Accounts Receivable
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk, percentage																31.00%
Exxon Mobil Corporate \| Customer Concentration Risk \| Sales Revenue, Goods, Net
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk, percentage				33.00%						8.00%
Exxon Mobil Corporate \| Customer Concentration Risk \| Accounts Receivable
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk, percentage										35.00%
Two Significant Customers \| Customer Concentration Risk \| Sales Revenue, Goods, Net
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk, percentage										65.00%						67.00%
Three Significant Customers \| Customer Concentration Risk \| Sales Revenue, Goods, Net
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk, percentage				72.00%
Machinery and Equipment
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Capitalized general and administrative costs		$ 1,300,000					1,800,000						1,800,000
Capitalized interest expense							$ 500,000						$ 900,000
Useful life using the straight-line	30 years
Machinery and Equipment \| Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Useful life	5 years
Machinery and Equipment \| Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Useful life	30 years
Employee Stock Options
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Antidilutive options excluded from calculation (in shares) \| shares								2,500,000						2,600,000
Restricted Stock
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Antidilutive options excluded from calculation (in shares) \| shares								700,000

Derivative Financial Instruments

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTSFrom time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and NGL prices. The Company records derivative financial instruments on its consolidated

balance sheets as either assets or liabilities measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments. As a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statements of operations as an unrealized gain or loss. The fair value of the Company’s derivative financial instruments is determined using 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. The Company has evaluated and considered the credit standings of its counterparties in determining the fair value of its derivative financial instruments.

At December 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 December 31, 2021, each contract was set to expire at varying times during 2022. The Company had no open contracts associated with NGL prices at December 31, 2021.

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


		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)

Commodity	Calculation Period
Oil	01/01/2022 - 12/31/2022	2,040,000	$	50.00	$	67.85	$	(16,652)
Natural Gas	01/01/2022 - 03/31/2022	8,250,000	$	2.70	$	6.33	(151)

Total open costless collar contracts							$	(16,803)

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


Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)


Oil Basis	01/01/2022 - 12/31/2022	5,520,000	$	0.95	1,925
Total open basis swap contracts					$	1,925

At December 31, 2021, the Company had an aggregate net liability value for open derivative financial instruments of $14.9 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 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 consolidated balance sheets as of December 31, 2021 and December 31, 2020 (in thousands).


Derivative Instruments	Gross amounts recognized		Gross amounts netted in the consolidated balance sheets		Net amounts presented in the consolidated balance sheets
December 31, 2021
Current assets	$	215,145	$	(213,174)	$	1,971

Current liabilities	(230,023)		213,174		(16,849)

Total	$	(14,878)	$	—	$	(14,878)
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 consolidated statements of operations for the periods presented (in thousands).


		Year Ended December 31,
Type of Instrument	Location in Statements of Operations	2021		2020		2019
Derivative Instrument
Oil	Revenues: Realized (loss) gain on derivatives	$	(194,058)	$	38,937	$	9,026
Natural Gas	Revenues: Realized (loss) gain on derivatives	(26,047)		—		456

Realized (loss) gain on derivatives		(220,105)		38,937		9,482
Oil	Revenues: Unrealized gain (loss) on derivatives	26,857		(37,703)		(53,443)
Natural Gas	Revenues: Unrealized (loss) gain on derivatives	(5,846)		5,695		(284)

Unrealized gain (loss) on derivatives		21,011		(32,008)		(53,727)
Total		$	(199,094)	$	6,929	$	(44,245)

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized stock-based compensation	$ 7.2	$ 3.6	$ 5.0
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan
Weighted average fair value of stock option awards granted during the year (in usd per share)		$ 5.04
2012 Incentive Plan
Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan
Stock option pricing model		Black Scholes Merton
Expected option life		4 years
Risk-free interest rate		1.46%
Volatility		48.52%
Dividend yield		0.00%
Estimated forfeiture rate		4.43%

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Use of Estimates

Restricted Cash

Accounts Receivable

For the year ended December 31, 2021, three significant purchasers accounted for 72% of the Company’s total oil, natural gas and NGL revenues: Plains Marketing, L.P. (29%), Exxon Mobil Corporation (33%) and BP America Production Company (10%). For the year ended December 31, 2020, two significant purchasers accounted for 65% of the Company’s total oil, natural gas and NGL revenues: Plains Marketing, L.P. (57%) and Exxon Mobil Corporation (8%). For the year ended December 31, 2019, two significant purchasers accounted for 67% of the Company’s total oil, natural gas and NGL revenues: Plains Marketing, L.P. (53%) and BP America Production Company (14%). If the Company lost one or more of these significant purchasers and were unable to sell its production to other purchasers on terms it considers acceptable, it could materially and adversely affect the Company’s business, financial condition, results of operations and cash flows. At December 31, 2021, 2020 and 2019, approximately 39%, 35% and 31%, respectively, of the Company’s accounts receivable, including joint interest billings, related to these purchasers.

Lease and Well Equipment Inventory

Lease and well equipment inventory is stated at the lower of cost or market and consists entirely of materials or equipment scheduled for use in future well or midstream operations.

Oil and Natural Gas Properties

Ceiling Test

(a) the present value, discounted at 10%, of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus

(b) unproved and unevaluated property costs not being amortized, plus

(c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less

(d) any income tax effects related to the properties involved.

Midstream Properties and Other Property and Equipment

Asset Retirement Obligations

The Company recognizes the fair value of an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The asset retirement obligation is recorded as a liability at its estimated present value, with an offsetting increase recognized in oil and natural gas properties, midstream properties or other property and equipment on the consolidated balance sheets. Periodic accretion of the discounted value of the estimated liability is recorded as an expense in the consolidated statements of operations.

Derivative Financial Instruments

From time to time, the Company uses derivative financial instruments to mitigate its exposure to commodity price risk associated with oil, natural gas and NGL prices. The Company’s derivative financial instruments are recorded on the consolidated balance sheets as either an asset or a liability measured at fair value. The Company has elected not to apply hedge accounting for its existing derivative financial instruments, and as a result, the Company recognizes the change in derivative fair value between reporting periods currently in its consolidated statements of operations. The fair value of the Company’s derivative financial instruments is determined using 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. Realized gains and losses from the settlement of derivative financial instruments and unrealized gains and unrealized losses from valuation changes in the remaining unsettled derivative financial instruments are reported as a component of revenues in the consolidated statements of operations. See Note 12 for additional information about the Company’s derivative instruments.

Revenues

The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the years ended December 31, 2021, 2020 and 2019 (in thousands).


	Year Ended December 31,
	2021		2020		2019
Revenues from contracts with customers	$	1,862,075	$	851,135	$	1,026,204
Lease bonus - mineral acreage	—		4,062		1,711
Realized (loss) gain on derivatives	(220,105)		38,937		9,482
Unrealized gain (loss) on derivatives	21,011		(32,008)		(53,727)
Total revenues	$	1,662,981	$	862,126	$	983,670


	Year Ended December 31,
	2021		2020		2019
Oil revenues	$	1,205,608	$	595,507	$	759,811
Natural gas revenues	494,934		148,954		132,514
Third-party midstream services revenues	75,499		64,932		59,110
Sales of purchased natural gas	86,034		41,742		74,769
Total revenues from contracts with customers	$	1,862,075	$	851,135	$	1,026,204

Stock-Based Compensation

The Company uses the Black Scholes Merton option pricing model to measure the fair value of stock options and the Monte Carlo simulation method to measure the fair value of performance units. The closing price of Matador’s common stock on the grant date is used to measure the fair value of restricted stock and restricted stock unit awards granted under the 2012 Long-Term Incentive Plan (as subsequently amended and restated, the “2012 Incentive Plan”), while the closing price of Matador’s common stock on the trading day prior to the grant date is used to measure the fair value of restricted stock and restricted stock unit awards granted under the 2019 Long-Term Incentive Plan (the “2019 Incentive Plan”).

The Company’s consolidated statements of operations for the years ended December 31, 2021, 2020 and 2019 include a stock-based compensation (non-cash) expense of $9.0 million, $13.6 million and $18.5 million, respectively. This stock-based compensation expense includes common stock issuances and restricted stock units expense totaling $0.9 million, $1.0 million and $1.4 million for the years ended December 31, 2021, 2020 and 2019, respectively, paid to independent members of the Board of Directors and advisors as compensation for their services to the Company. The Company’s consolidated statement of operations for the years ended December 31, 2021, 2020 and 2019 also includes $20.4 million, $4.0 million and $3.2 million, respectively, related to liability-based awards expected to be settled in cash.

Income Taxes

Allocation of Purchase Price in Business Combinations

As part of the Company’s business strategy, it periodically pursues the acquisition of oil and natural gas properties. The purchase price in a business combination is allocated to the assets acquired and liabilities assumed based on their fair values as of the acquisition date, which may occur many months after the announcement date. Therefore, while the consideration to be paid may be fixed, the fair value of the assets acquired and liabilities assumed is subject to change during the period between the announcement date and the acquisition date. The most significant estimates in the allocation typically relate to the value assigned to proved oil and natural gas reserves and unproved and unevaluated properties. As the allocation of the purchase price is subject to significant estimates and subjective judgments, the accuracy of this assessment is inherently uncertain.

Earnings Per Common Share


	Year Ended December 31,
	2021		2020		2019

Net income (loss) attributable to Matador Resources Company shareholders — numerator	$	584,968	$	(593,205)	$	87,777

Weighted average common shares outstanding — denominator
Basic	116,999		116,068		116,555
Dilutive effect of options and restricted stock units	2,164		—		508
Diluted weighted average common shares outstanding	119,163		116,068		117,063
Earnings (loss) per common share attributable to Matador Resources Company shareholders
Basic	$	5.00	$	(5.11)	$	0.75
Diluted	$	4.91	$	(5.11)	$	0.75

Credit Risk

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Disaggregation of Revenue


	Year Ended December 31,
	2021		2020		2019
Revenues from contracts with customers	$	1,862,075	$	851,135	$	1,026,204
Lease bonus - mineral acreage	—		4,062		1,711
Realized (loss) gain on derivatives	(220,105)		38,937		9,482
Unrealized gain (loss) on derivatives	21,011		(32,008)		(53,727)
Total revenues	$	1,662,981	$	862,126	$	983,670


	Year Ended December 31,
	2021		2020		2019
Oil revenues	$	1,205,608	$	595,507	$	759,811
Natural gas revenues	494,934		148,954		132,514
Third-party midstream services revenues	75,499		64,932		59,110
Sales of purchased natural gas	86,034		41,742		74,769
Total revenues from contracts with customers	$	1,862,075	$	851,135	$	1,026,204

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


	Year Ended December 31,
	2021		2020		2019

Net income (loss) attributable to Matador Resources Company shareholders — numerator	$	584,968	$	(593,205)	$	87,777

Weighted average common shares outstanding — denominator
Basic	116,999		116,068		116,555
Dilutive effect of options and restricted stock units	2,164		—		508
Diluted weighted average common shares outstanding	119,163		116,068		117,063
Earnings (loss) per common share attributable to Matador Resources Company shareholders
Basic	$	5.00	$	(5.11)	$	0.75
Diluted	$	4.91	$	(5.11)	$	0.75

Debt Credit Agreements (Details Textual) (Details) - USD ($)		2 Months Ended	12 Months Ended
	Dec. 19, 2018	Feb. 23, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Nov. 30, 2021	Nov. 18, 2021	Nov. 01, 2021	Jun. 30, 2021	Oct. 30, 2020	Oct. 31, 2019
Debt Instrument [Line Items]
Borrowings under credit agreement			$ 100,000,000	$ 440,000,000
Secured debt, percentage of mortgages used as security			85.00%
Repay deficit in agreement, period			6 months
Deferred loan costs			$ 3,900,000
Repayment of borrowings			$ 600,000,000	$ 35,000,000	$ 35,000,000
Repayments of borrowings		$ 25,000,000
Debt instrument, interest rate, increase (decrease)			0.50%
Third Amended Credit Agreement
Debt Instrument [Line Items]
Effective interest rate			1.85%
EBITDA ratio, debt outstanding, cash and cash equivalents limit			$ 75,000,000
Debt to EBITDA ratio covenant			3.50
Third Amended Credit Agreement \| Minimum
Debt Instrument [Line Items]
Commitment fee percentage			0.375%
Third Amended Credit Agreement \| Maximum
Debt Instrument [Line Items]
Commitment fee percentage			0.50%
San Mateo Credit Facility
Debt Instrument [Line Items]
Effective interest rate			2.11%
Eurodollar \| Third Amended Credit Agreement \| Minimum
Debt Instrument [Line Items]
Additional interest rate			1.75%
Eurodollar \| Third Amended Credit Agreement \| Maximum
Debt Instrument [Line Items]
Additional interest rate			2.75%
Federal Funds Effective Rate \| Third Amended Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Base Rate Loan \| Third Amended Credit Agreement \| Maximum
Debt Instrument [Line Items]
Additional interest rate			1.75%
Unsecured Debt \| SBA Loan, CARES Act [Member]
Debt Instrument [Line Items]
Long-term debt			$ 7,500,000
Revolving Credit Facility
Debt Instrument [Line Items]
Senior secured revolving credit maximum facility										$ 700,000,000
Revolving Credit Facility \| Third Amended Credit Agreement
Debt Instrument [Line Items]
Increase in borrowing capacity						$ 1,350,000,000		$ 900,000,000
Maximum borrowing capacity, amended										$ 1,500,000,000
Line of Credit \| Fourth Amended Credit Agreement
Debt Instrument [Line Items]
Long-term line of credit							$ 25,000,000
Line of Credit \| San Mateo Credit Facility
Debt Instrument [Line Items]
Outstanding letters of credit			9,000,000
Long-term line of credit			385,000,000
Senior secured revolving credit maximum facility	$ 250,000,000										$ 375,000,000
Repayment of borrowings		$ 30,000,000
Accordian feature, increase limit	$ 700,000,000								$ 450,000,000
Deferred loan costs			1,900,000
Line of Credit \| San Mateo Credit Facility \| Minimum
Debt Instrument [Line Items]
Commitment fee percentage	0.30%
Line of Credit \| San Mateo Credit Facility \| Maximum
Debt Instrument [Line Items]
Commitment fee percentage	0.50%
Letter of Credit \| Credit Agreement
Debt Instrument [Line Items]
Outstanding letters of credit			$ 45,800,000
Libor Rate \| Third Amended Credit Agreement
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%
Base Rate Loan \| Minimum
Debt Instrument [Line Items]
Additional interest rate			0.75%
Federal Funds Effective Rate \| Line of Credit \| San Mateo Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Adjusted LIBO Rate \| Line of Credit \| San Mateo Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
Adjusted LIBO Rate \| Line of Credit \| San Mateo Credit Facility \| Minimum
Debt Instrument [Line Items]
Additional interest rate	1.00%
Adjusted LIBO Rate \| Line of Credit \| San Mateo Credit Facility \| Maximum
Debt Instrument [Line Items]
Additional interest rate	2.00%
Statutory Reserve Rate \| Line of Credit \| San Mateo Credit Facility \| Minimum
Debt Instrument [Line Items]
Additional interest rate	2.00%
Statutory Reserve Rate \| Line of Credit \| San Mateo Credit Facility \| Maximum
Debt Instrument [Line Items]
Additional interest rate	3.00%
The Bank Of Nova Scotia \| San Mateo Credit Facility
Debt Instrument [Line Items]
Debt to EBITDA ratio covenant	5.00
Interest coverage ratio	2.50

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Summary of net deferred tax position

The Company’s net deferred tax position as of December 31, 2021 and 2020 is as follows (in thousands).


	December 31,
	2021		2020













Deferred tax assets

Net operating loss carryforwards	$	129,651	$	122,952
Unrealized loss on derivatives	3,729		8,997
Percentage depletion carryover	1,770		1,462
Compensation	9,838		10,405
Lease liabilities	4,866		9,380
Other	9,410		8,334
Total deferred tax assets	159,264		161,530
Valuation allowance on deferred tax assets	(10,599)		(110,681)
Total deferred tax assets, net of valuation allowance	148,665		50,849
Deferred tax liabilities

Property and equipment	(179,153)		(11,879)
Less than wholly-owned subsidiaries	(39,900)		(26,564)
Lease right of use assets	(4,866)		(9,380)
Other	(2,684)		(2,684)
Total deferred tax liabilities	(226,603)		(50,507)
Net deferred tax (liabilities) assets	$	(77,938)	$	342

Income tax expense reconciled to the tax computed at the statutory federal rate

The current income tax provision and the deferred income tax provision for the years ended December 31, 2021, 2020 and 2019 were comprised of the following (in thousands).


	Year Ended December 31,
	2021		2020		2019




Deferred income tax provision (benefit)
Federal income tax	$	44,883	$	(25,675)	$	29,171
State income tax	29,827		(19,924)		6,361
Net deferred income tax provision (benefit)	$	74,710	$	(45,599)	$	35,532

Reconciliations of the tax expense (benefit) computed at the statutory federal rate to the Company’s total income tax provision (benefit) for the years ended December 31, 2021, 2020 and 2019 is as follows (in thousands).


	Year Ended December 31,
	2021		2020		2019

Federal tax expense (benefit) at statutory rate(1)	$	150,223	$	(125,823)	$	33,441

State income tax	26,646		(20,607)		6,141


Permanent differences	(2,078)		(3,114)		(4,267)



Change in federal valuation allowance	(103,262)		103,262		—
Change in state valuation allowance	3,181		683		217
Net deferred income tax provision (benefit)	74,710		(45,599)		35,532

Total income tax provision (benefit)	$	74,710	$	(45,599)	$	35,532

__________________

(1)The statutory federal tax rate was 21% for the years ended December 31, 2021, 2020 and 2019.

Leases Leases - Maturities of Office Leases (Details) $ in Thousands	Dec. 31, 2021 USD ($)
Leases [Abstract]
2021	$ 19,649
2022	6,830
2022	4,217
2024	4,287
2025	1,553
Thereafter	0
Total lease payments	$ 36,536

Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

DEBT

At December 31, 2021, the Company had (i) $1.05 billion of outstanding senior notes due 2026, (ii) $100.0 million in borrowings outstanding under its reserves-based revolving credit facility, (iii) approximately $45.8 million in outstanding letters of credit issued pursuant to its revolving credit facility and (iv) $7.5 million outstanding under an unsecured U.S. Small Business Administration loan.

At December 31, 2021, San Mateo had $385.0 million in borrowings outstanding under its revolving credit facility and approximately $9.0 million in outstanding letters of credit issued pursuant to its revolving credit facility.

Credit Agreements

MRC Energy Company

On November 18, 2021, the Company entered into its Fourth Amended and Restated credit facility with the lenders party thereto, led by Royal Bank of Canada (“RBC”) as administrative agent (the “Credit Agreement”). MRC Energy Company (“MRC”), a subsidiary of Matador that directly or indirectly holds the ownership interests in the Company’s other operating subsidiaries, other than its less-than-wholly-owned subsidiaries, is the borrower under the Credit Agreement. Borrowings are secured by mortgages on at least 85% of MRC’s and the Restricted Subsidiaries’ (as defined in the Credit Agreement) proved oil and natural gas properties and by the equity interests of certain of MRC’s wholly-owned subsidiaries, which are also guarantors. San Mateo and its subsidiaries are not guarantors of the Credit Agreement. In addition, all obligations under the

Credit Agreement are guaranteed by Matador, the parent corporation. Various commodity hedging agreements with certain of the lenders under the Credit Agreement (or affiliates thereof) are also secured by the collateral of and guaranteed by certain eligible subsidiaries of MRC. The Credit Agreement matures on October 31, 2026 or, if earlier, the date that is 180 days prior to the earliest stated redemption date of any senior notes of the Company with an outstanding principal balance in excess of $25.0 million.

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 November 2021, the lenders completed their review of the Company’s proved oil and natural gas reserves, and, as a result, the borrowing base was increased from $900.0 million to $1.35 billion. The Company elected to keep the borrowing commitment at $700.0 million, and the maximum facility amount remained $1.5 billion. Borrowings under the Credit Agreement are limited to the lowest of the borrowing base, the maximum facility amount and the elected borrowing commitment (subject to compliance with the covenants noted below).

In the event of an increase in the elected commitment, the Company is required to pay a fee to the lenders equal to a percentage of the amount of the increase, which is determined based on market conditions at the time of the increase. If, upon a redetermination of the borrowing base, the borrowing base were to be less than the outstanding borrowings under the Credit Agreement at such time, the Company would be required to provide additional collateral satisfactory in nature and value to the lenders to increase the borrowing base to an amount sufficient to cover such excess or to repay the deficit in equal installments over a period of six months.

Total deferred loan costs were $3.9 million at December 31, 2021, and these costs are being amortized over the term of the Credit Agreement. The Company’s effective interest rate under the Credit Agreement was 1.85% at December 31, 2021. At December 31, 2021, the Company had $100.0 million in borrowings outstanding under the Credit Agreement and approximately $45.8 million in outstanding letters of credit issued pursuant to the Credit Agreement. Between December 31, 2021 and February 28, 2022, the Company repaid $25.0 million of borrowings outstanding under the Credit Agreement.

Borrowings under the Credit Agreement may be in the form of a base rate loan or a Eurodollar loan. If MRC borrows funds as a base rate loan, such borrowings will bear interest at a rate equal to the greatest of (i) the prime rate for such day, (ii) the Federal Funds Effective Rate (as defined in the Credit Agreement) on such day, plus 0.50%, and (iii) the daily adjusting LIBOR rate (as defined in the Credit Agreement) plus 1.0% plus, in each case, an amount ranging from 0.75% to 1.75% per annum depending on the level of borrowings under the Credit Agreement. If MRC borrows funds as a Eurodollar loan, such borrowings will bear interest at a rate equal to (x) the LIBOR Rate (as defined in the Credit Agreement) plus (y) an amount ranging from 1.75% to 2.75% per annum depending on the level of borrowings under the Credit Agreement. The interest period for Eurodollar borrowings may be one, three or six months as designated by MRC. If MRC has outstanding borrowings under the Credit Agreement and interest rates increase, so will MRC’s interest costs, which may have a material adverse effect on the Company’s results of operations and financial condition.

A commitment fee of 0.375% to 0.50% per annum, depending on the level of borrowings under the Credit Agreement, is also paid quarterly in arrears. The Company includes this commitment fee, any amortization of deferred financing costs (including origination, borrowing base increase and amendment fees) and annual agency fees, if any, as interest expense and in its interest rate calculations and related disclosures. The Credit Agreement requires the Company to maintain (i) a current ratio, which is defined as (x) total consolidated current assets plus the unused availability under the Credit Agreement divided by (y) total consolidated current liabilities less current maturities under the Credit Agreement, of not less than 1.0 to 1.0 at the end of each fiscal quarter and (ii) a debt to EBITDA ratio, which is defined as debt outstanding (net of up to $75 million of cash or cash equivalents) divided by a rolling four quarter EBITDA calculation, of 3.50 to 1.0 or less.

Subject to certain exceptions, the Credit Agreement contains various covenants that limit MRC’s and its Restricted Subsidiaries’ (as defined in the Credit Agreement) ability to take certain actions, including, but not limited to, the following:

•incur indebtedness or grant liens on any of its assets;

•enter into commodity hedging agreements or interest rate agreements;

•declare or pay dividends, distributions or redemptions;

•merge or consolidate;

•make any loans or investments;

•engage in transactions with affiliates;

•engage in certain asset dispositions, including a sale of all or substantially all of MRC’s assets; and

•take certain actions with respect to the Company’s senior unsecured notes.

If an event of default exists under the Credit Agreement, the lenders will be able to accelerate the maturity of the borrowings and exercise other rights and remedies. Events of default include, but are not limited to, the following events:

•failure to pay any principal on the outstanding borrowings when due or any interest on the outstanding borrowings, any reimbursement obligation under any letter of credit or any fees or other amounts within certain grace periods;

•failure to perform or otherwise comply with the covenants and obligations in the Credit Agreement or other loan documents, subject, in certain instances, to certain grace periods;

•bankruptcy or insolvency events involving the Company or any of the Restricted Subsidiaries; and

•a change of control, as defined in the Credit Agreement.

The Company believes that it was in compliance with the terms of the Credit Agreement at December 31, 2021.

San Mateo Midstream, LLC

On December 19, 2018, San Mateo entered into a $250.0 million credit facility with the lenders party thereto, currently led by Truist Bank as administrative agent (the “San Mateo Credit Facility”). The San Mateo Credit Facility matures December 19, 2023 and was amended in June 2021 to increase the lender commitments under the revolving credit facility from $375.0 million to $450.0 million (subject to San Mateo’s compliance with the covenants noted below) and to increase the borrowing rate for a base rate loan or a Eurodollar loan under such facility by 0.50%. The San Mateo Credit Facility includes an accordion feature, which, after the aforementioned amendment, provides for potential increases in lender commitments to up to $700.0 million. 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.

Total deferred loan costs were $1.9 million at December 31, 2021, and these costs are being amortized over the term of the San Mateo Credit Facility. San Mateo’s effective interest rate under the San Mateo Credit Facility was 2.11% at December 31, 2021. At December 31, 2021, San Mateo had $385.0 million in borrowings outstanding under the San Mateo Credit Facility and $9.0 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Between December 31, 2021 and February 22, 2022, San Mateo repaid $30.0 million of borrowings outstanding under the San Mateo Credit Facility.

Borrowings under the San Mateo Credit Facility may be in the form of a base rate loan or a Eurodollar loan. If San Mateo borrows funds as a base rate loan, such borrowings will bear interest at a rate equal to the greatest of (i) the prime rate for such day, (ii) the Federal Funds Effective Rate (as defined in the San Mateo Credit Facility) on such day, plus 0.50%, and (iii) the Adjusted LIBO Rate (as defined in the San Mateo Credit Facility) plus 1.0% plus, in each case, an amount ranging from 1.00% to 2.00% per annum depending on San Mateo’s Consolidated Total Leverage Ratio (as defined in the San Mateo Credit Facility). If San Mateo borrows funds as a Eurodollar loan, such borrowings will bear interest at a rate equal to (x) the Adjusted LIBO Rate for the chosen interest period plus (y) an amount ranging from 2.00% to 3.00% per annum depending on San Mateo’s Consolidated Total Leverage Ratio. If San Mateo has outstanding borrowings under the San Mateo Credit Facility and interest rates increase, so will San Mateo’s interest costs, which may have a material adverse effect on San Mateo’s results of operations and financial condition.

A commitment fee of 0.30% to 0.50% per annum, depending on the unused availability under the San Mateo Credit Facility, is also paid quarterly in arrears. The Company includes this commitment fee, any amortization of deferred financing costs (including origination and amendment fees) and annual agency fees, if any, as interest expense and in its interest rate calculations and related disclosures. 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.

Subject to certain exceptions, the San Mateo Credit Facility contains various covenants that limit San Mateo’s and its restricted subsidiaries’ ability to take certain actions, including, but not limited to, the following:

•incur indebtedness or grant liens on any of San Mateo’s assets;

•enter into hedging agreements;

•declare or pay dividends, distributions or redemptions;

•merge or consolidate;

•make any loans or investments;

•engage in transactions with affiliates;

•engage in certain asset dispositions, including a sale of all or substantially all of San Mateo’s assets; and

•issue equity interests in San Mateo or its subsidiaries.

If an event of default exists under the San Mateo Credit Facility, the lenders will be able to accelerate the maturity of the borrowings and exercise other rights and remedies. Events of default include, but are not limited to, the following events:

•failure to pay any principal or interest on the outstanding borrowings or any reimbursement obligation under any letter of credit when due or any fees or other amounts within certain grace periods;

•failure to perform or otherwise comply with the covenants and obligations in the San Mateo Credit Facility or other loan documents, subject, in certain instances, to certain grace periods;

•bankruptcy or insolvency events involving San Mateo or its subsidiaries; and

•a change of control, as defined in the San Mateo Credit Facility.

The Company believes that San Mateo was in compliance with the terms of the San Mateo Credit Facility at December 31, 2021.

Senior Unsecured Notes

At December 31, 2021, the Company had $1.05 billion of outstanding 5.875% senior notes due 2026 that were registered under the Securities Act and mature September 15, 2026 (the “Notes”). 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 (the “Guarantors”). San Mateo and its subsidiaries are not Restricted Subsidiaries (as defined in the Indenture) or Guarantors of the Notes.

The Company may redeem all or a part of the Notes at any time or from time to time at the following redemption prices (expressed as percentages of principal amount) plus accrued and unpaid interest, if any, to the applicable redemption date, if redeemed during the twelve-month period beginning on September 15 of the years indicated below:


Year						Redemption Price
2021						104.406%
2022						102.938%
2023						101.469%
2024 and thereafter						100.000%

Subject to certain exceptions, the Indenture contains various covenants that limit the Company’s ability to take certain actions, including, but not limited to, the following:

•incur additional indebtedness;

•sell assets;

•pay dividends or make certain investments;

•create liens that secure indebtedness;

•enter into transactions with affiliates; and

•merge or consolidate with another company.

In the case of an event of default arising from certain events of bankruptcy or insolvency with respect to Matador, any Restricted Subsidiary (as defined in the Indenture) that is a Significant Subsidiary (as defined in the Indenture) or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, all outstanding Notes will become due and payable immediately without further action or notice. If any other event of default occurs and is continuing, the trustee or the holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. Events of default include, but are not limited to, the following events:

•default for 30 days in the payment when due of interest on the Notes;

•default in the payment when due of the principal of, or premium, if any, on the Notes;

•failure by the Company to comply with its obligations to offer to purchase or purchase Notes pursuant to the change of control or asset sale covenants of the Indenture or to comply with the covenant relating to mergers;

•failure by the Company for 180 days after notice to comply with its reporting obligations under the Indenture;

•failure by the Company for 60 days after notice to comply with any of the other agreements in the Indenture;

•payment defaults and accelerations with respect to other indebtedness of the Company and its Restricted Subsidiaries in the aggregate principal amount of $50.0 million or more;

•failure by the Company or any Restricted Subsidiary to pay certain final judgments aggregating in excess of $50.0 million within 60 days;

•any subsidiary guarantee by a Guarantor ceases to be in full force and effect, is declared null and void in a judicial proceeding or is denied or disaffirmed by its maker; and

•certain events of bankruptcy or insolvency with respect to the Company or any Restricted Subsidiary that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary.

The outstanding borrowings of $100.0 million at December 31, 2021 under the Credit Agreement mature on October 31, 2026. The outstanding borrowings of $385.0 million at December 31, 2021 under the San Mateo Credit Facility mature on December 19, 2023. The $1.05 billion of outstanding Notes at December 31, 2021 mature on September 15, 2026.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
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-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1E
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2021
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS 401(k) Plan All full-time Company employees are eligible to join the Company’s defined contribution retirement plan the first day of the calendar month immediately following their date of employment. Each employee may contribute up to the maximum allowable under the Internal Revenue Code. Each year, the Company makes a contribution to the plan that equals 3% of the employee’s annual compensation, up to the maximum allowable under the Internal Revenue Code, referred to as the Employer’s Safe Harbor Non-Elective Contribution, which totaled $1.6 million, $1.4 million and $1.4 million in 2021, 2020 and 2019, respectively. In addition, each year, the Company may make a discretionary matching contribution, as well as additional contributions. The Company’s discretionary matching contributions totaled $2.1 million, $1.8 million and $1.7 million in 2021, 2020 and 2019, respectively. The Company made no additional contributions in any reporting period presented.

Asset Retirement Obligations (Tables)

12 Months Ended

Dec. 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 years ended December 31, 2021 and 2020 (in thousands).


	Year Ended December 31,
	2021		2020
Beginning asset retirement obligations	$	38,542	$	36,211
Liabilities incurred during period	2,294		2,548
Liabilities settled during period	(151)		(290)
Revisions in estimated cash flows	86		(1,875)
Divestitures during the period	(880)		—
Accretion expense	2,068		1,948
Ending asset retirement obligations	41,959		38,542
Less: current asset retirement obligations(1)	(270)		(623)
Long-term asset retirement obligations	$	41,689	$	37,919

__________________

(1)Included in “Accrued liabilities” in the Company’s consolidated balance sheets at December 31, 2021 and 2020.

Asset Retirement Obligations

12 Months Ended

Dec. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONS

The Company’s asset retirement obligations primarily relate to future costs associated with plugging and abandonment of its oil, natural gas and salt water disposal wells, removal of pipelines, equipment and facilities from leased acreage and returning such land to its original condition. The amounts recognized are based on numerous estimates and assumptions, including future retirement costs, future recoverable quantities of oil and natural gas, future inflation rates and the Company’s credit-adjusted risk-free interest rate. Revisions to the liability can occur due to changes in these estimates and assumptions or if federal or state regulators enact new plugging and abandonment requirements. At the time of the actual plugging and abandonment of its oil and natural gas wells, the Company includes any gain or loss associated with the operation in the amortization base to the extent the actual costs are different from the estimated liability.

The following table summarizes the changes in the Company’s asset retirement obligations for the years ended December 31, 2021 and 2020 (in thousands).


	Year Ended December 31,
	2021		2020
Beginning asset retirement obligations	$	38,542	$	36,211
Liabilities incurred during period	2,294		2,548
Liabilities settled during period	(151)		(290)
Revisions in estimated cash flows	86		(1,875)
Divestitures during the period	(880)		—
Accretion expense	2,068		1,948
Ending asset retirement obligations	41,959		38,542
Less: current asset retirement obligations(1)	(270)		(623)
Long-term asset retirement obligations	$	41,689	$	37,919

__________________

(1)Included in “Accrued liabilities” in the Company’s consolidated balance sheets at December 31, 2021 and 2020.

Business Combinations and Divestitures

12 Months Ended

Dec. 31, 2021

Business Combinations [Abstract]

BUSINESS COMBINATIONS AND DIVESTITURES

Business Combination

On December 14, 2021, the Company completed an acquisition of assets from a private operator. This acquisition was accounted for as a business combination in accordance with ASC Topic 805, which requires the assets acquired and liabilities assumed to be recorded at fair value as of the respective acquisition date. The Company obtained certain oil and natural gas producing properties and undeveloped acreage located in Lea and Eddy Counties, New Mexico, strategically located primarily within the Company’s existing acreage in its Ranger and Arrowhead asset areas.

As consideration for the business combination, the Company paid approximately $161.7 million in cash and will pay an additional $6.5 million, net of customary working capital adjustments, including adjusting for production, revenues, operating expenses and capital expenditures from August 1, 2021 to closing. In addition, the Company will increase the purchase price by $5.0 million for each quarter during 2022 in which the average oil price, as defined in the purchase and sale agreement, is greater than $75.00 per barrel. The Company recorded this contingent consideration at fair value on the date of the business combination and will record the change in the fair value in future periods as “Other income (expense)” in its consolidated statements of operations. The fair value of the contingent consideration increased between December 14, 2021 and December 31, 2021 by $1.5 million, which was recorded as “Other expense” for the year ended December 31, 2021. The Company used the Monte Carlo simulation method to measure the fair value of the contingent consideration, which has unobservable inputs and is thus classified at Level 3 in the fair value hierarchy (see Note 13 for discussion of the fair value hierarchy).

In addition, the Company acquired oil and natural gas production of approximately 3,500 BOE per day at the date of acquisition, which increased the Company’s revenues and net income for the period from December 15, 2021 through December 31, 2021 by $4.0 million and $3.2 million, respectively. The pro forma impact of this business combination to revenues and net income for the remainder of 2021 would not be material to the Company’s 2021 revenues and net income as reported.


Consideration given			Allocation
Cash			$161,680
Working capital adjustments to be paid in 2022			6,500
Fair value of contingent consideration at December 14, 2021			6,718
Total consideration given			$174,898

Allocation of purchase price
Oil and natural gas properties
Evaluated			$139,312
Unproved and unevaluated			43,204
Accrued liabilities			(360)
Advances from joint interest owners			(6,865)
Asset retirement obligations			(393)
Net assets acquired			$174,898

Joint Ventures

At December 31, 2021, the Company owned 51% of San Mateo, a midstream joint venture with a subsidiary of Five Point Energy LLC (“Five Point”) in portions of Eddy County, New Mexico and Loving County, Texas. At December 31, 2021, Five Point owned the remaining 49% of San Mateo. The midstream assets include (i) the Black River Processing Plant, (ii) 14 salt water disposal wells and associated commercial salt water disposal facilities and (iii) approximately 370 miles of oil gathering and transportation pipelines, natural gas gathering pipelines and produced water pipelines. The Company operates San Mateo, and San Mateo is consolidated in the Company’s financial statements, with Five Point’s interest being accounted for as a non-controlling interest.

As part of the joint venture agreement with Five Point, the Company had the potential to earn two different sets of performance incentives. These performance incentives are recorded as additional contributions related to the formation of San Mateo as they are received. Beginning in 2017, the Company had the potential to earn up to $73.5 million in performance incentives related to the Company’s performance in its Rustler Breaks asset area in Eddy County and its Wolf asset area in Loving County over a five-year period, which in October 2020 was extended by an additional year to January 31, 2023. At December 31, 2021, the Company had earned $58.8 million of the potential $73.5 million in performance incentives and Five Point had paid $14.7 million in performance incentives in each of the first quarters of 2018, 2019, 2020 and 2021. The Company may earn up to the remaining $14.7 million in performance incentives until January 31, 2023. Beginning in 2019, the Company had the potential to earn up to $150.0 million in additional deferred performance incentives in its Stebbins area and surrounding leaseholds in the southern portion of its Arrowhead asset area (the “Greater Stebbins Area”) and Stateline asset area over the next several years, plus additional performance incentives for securing volumes from third-party customers. During the year ended December 31, 2021, Five Point paid $33.9 million in these additional performance incentives.

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 Greater Stebbins Area and 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 (see Note 14).

During the years ended December 31, 2021 and 2020, San Mateo distributed $64.5 million and $47.4 million, respectively, to the Company and $62.0 million and $45.6 million, respectively, to Five Point. During the year ended December 31, 2021, neither the Company nor Five Point contributed cash to San Mateo. During the year ended December 31, 2020, the Company contributed $75.0 million and Five Point contributed $119.7 million of cash to San Mateo, of which $23.1 million was paid to carry Matador’s proportionate interest in San Mateo Midstream II, LLC (“San Mateo II”). Five Point agreed to carry a portion of Matador’s proportionate interest as part of the formation agreement for San Mateo II. The amount that Five Point paid to carry Matador’s proportionate interest in San Mateo was recorded in “Additional paid-in capital” in the Company’s consolidated balance sheets at December 31, 2020, net of the $4.8 million deferred tax impact to Matador related to this equity contribution. During the year ended December 31, 2019, the Company contributed $24.2 million and Five Point contributed $77.3 million of cash to San Mateo, of which $28.4 million was paid to carry Matador’s proportionate interest in San Mateo II and was recorded in “Additional paid-in capital” in the consolidated balance sheet, net of the $5.9 million deferred tax impact to Matador related to this equity contribution. In the first quarter of 2019, the Company also contributed $1.0 million of property to San Mateo II. San Mateo II was merged with and into San Mateo effective October 1, 2020.

Divestitures

During 2021 and 2020, the Company converted approximately $4.2 million and $4.8 million, respectively, of non-core assets to cash. These properties were primarily located in South Texas and Northwest Louisiana.

Supplemental Disclosures (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Summary of current accrued liabilities
Total accrued liabilities	$ 253,283	$ 119,158
Other	37,458	11,331
Accrued evaluated and unproved and unevaluated property costs
Summary of current accrued liabilities
Total accrued liabilities	128,598	44,012
Accrued midstream properties costs
Summary of current accrued liabilities
Total accrued liabilities	7,799	12,776
Accrued lease operating expenses
Summary of current accrued liabilities
Total accrued liabilities	32,182	24,276
Accrued interest on debt
Summary of current accrued liabilities
Total accrued liabilities	18,232	18,315
Accrued asset retirement obligations
Summary of current accrued liabilities
Total accrued liabilities	270	623
Accrued partners’ share of joint interest charges
Summary of current accrued liabilities
Total accrued liabilities	17,460	7,407
Accrued payable related to purchased natural gas
Summary of current accrued liabilities
Total accrued liabilities	$ 11,284	$ 418

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets
Cash	$ 48,135	$ 57,916
Restricted cash	38,785	33,467
Accounts receivable
Oil and natural gas revenues	164,242	85,098
Joint interest billings	48,366	34,823
Other	28,808	17,212
Derivative instruments	1,971	6,727
Lease and well equipment inventory	12,188	10,584
Prepaid expenses and other current assets	28,810	15,802
Total current assets	371,305	261,629
Oil and natural gas properties, full-cost method
Evaluated	6,007,325	5,295,931
Unproved and unevaluated	964,714	902,133
Midstream properties	900,979	841,695
Midstream properties	30,123	29,561
Less accumulated depletion, depreciation and amortization	(4,046,456)	(3,701,551)
Net property and equipment	3,856,685	3,367,769
Other assets
Derivative instruments	0	2,570
Other long-term assets	34,163	55,312
Total assets	4,262,153	3,687,280
Current liabilities
Accounts payable	26,256	13,982
Accrued liabilities	253,283	119,158
Royalties payable	94,359	66,049
Amounts due to affiliates	27,324	4,934
Derivative instruments	16,849	45,186
Advances from joint interest owners	18,074	4,191
Other current liabilities	28,692	37,436
Total current liabilities	464,837	290,936
Long-term liabilities
Borrowings under Credit Agreement	100,000	440,000
Borrowings under San Mateo Credit Facility	385,000	334,000
Senior unsecured notes payable	1,042,580	1,040,998
Asset retirement obligations	41,689	37,919
Deferred income taxes	77,938	0
Other long-term liabilities	22,721	30,402
Total long-term liabilities	1,669,928	1,883,319
Commitments and contingencies (Note 14)
Shareholders' equity
Common stock — $0.01 par value, 160,000,000 shares authorized; 117,861,923 and 116,847,003 shares issued; and 117,850,233 and 116,844,768 shares outstanding, respectively	1,179	1,169
Additional paid-in capital	2,077,592	2,027,069
Accumulated deficit	(171,318)	(741,705)
Treasury stock, at cost, 11,945 and 2,235 shares, respectively	(243)	(3)
Total shareholders' equity	1,907,210	1,286,530
Non-controlling interest in subsidiaries	220,178	226,495
Total shareholders’ equity	2,127,388	1,513,025
Total liabilities and shareholders’ equity	$ 4,262,153	$ 3,687,280

Supplemental Disclosures (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Supplemental disclosures of cash flow information
Cash paid for interest expense, net of amounts capitalized	$ 74,843	$ 76,880	$ 75,525
Increase (decrease) in asset retirement obligations related to mineral properties	1,091	(208)	2,912
Increase in asset retirement obligations related to midstream properties	257	690	1,204
Increase (decrease) in liabilities for drilling, completion and equipping capital expenditures	80,255	(26,126)	(13,310)
Increase (decrease) increase in liabilities for acquisition of oil and natural gas properties	2,981	(2,346)	(2,567)
(Decrease) increase in liabilities for midstream capital expenditures	(4,478)	(33,609)	30,374
Stock-based compensation expense recognized as liability	24,494	3,702	3,170
Transfer of inventory (to) from oil and natural gas properties	$ (398)	$ 608	$ 1,515

Business Combinations and Divestitures - Allocation Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 14, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Evaluated (subject to amortization)	$ 6,007,325		$ 5,295,931
Total unproved and unevaluated	964,714		902,133
Advances from joint interest owners	(18,074)		$ (4,191)
Properties in Lea and Eddy, NM
Business Acquisition [Line Items]
Cash		$ 161,680
Fair value of contingent consideration at December 14, 2021	$ 1,500	6,718
Total consideration given		174,898
Evaluated (subject to amortization)		139,312
Total unproved and unevaluated		43,204
Contingent consideration related to business combination		(360)
Advances from joint interest owners		(6,865)
Asset retirement obligations		$ (393)

Debt Senior Unsecured Notes (Details Textual) (Details) - USD ($)	Oct. 04, 2018	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Borrowings under Credit Agreement		$ 100,000,000	$ 440,000,000
Unsecured Debt \| Senior Notes
Debt Instrument [Line Items]
Long-term debt		$ 1,050,000,000.00
Unsecured Debt \| 2026 Notes Offering
Debt Instrument [Line Items]
Stated interest rate		5.875%
Unsecured Debt \| Additional 2026 Notes \| Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Threshold percentage of principle	25.00%
Default period	30 days
Period after notice to comply	180 days
Period after notice to comply with other agreements	60 days
Maximum aggregate payment defaults and accelerations	$ 50,000,000
Maximum outstanding judgments	$ 50,000,000
Maximum outstanding judgements, payment period	60 days
Unsecured Debt \| Senior Notes Due 2026
Debt Instrument [Line Items]
Long-term debt		$ 1,050,000,000.00
Unsecured Debt \| Senior Notes Due 2026 \| Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Debt redemption price, percentage	104.406%

Stock-Based Compensation (Details 1) shares in Thousands	12 Months Ended
Stock-Based Compensation (Details 1) shares in Thousands	Dec. 31, 2021 $ / shares shares
Number of options (in thousands)
Options outstanding at beginning of period (in shares) \| shares	2,473
Options granted (in shares) \| shares	0
Options exercised (in shares) \| shares	(1,368)
Options forfeited (in shares) \| shares	(37)
Options expired (in shares) \| shares	(465)
Options outstanding at end of period (in shares) \| shares	603
Weighted average exercise price
Weighted average exercise price, Options outstanding Beginning Balance (usd per share) \| $ / shares	$ 23.08
Weighted average exercise price, Options granted (usd per share) \| $ / shares	0
Weighted average exercise price, Options exercised (usd per share) \| $ / shares	25.37
Weighted average exercise price, Options forfeited (usd per share) \| $ / shares	18.72
Weighted average exercise price, Options expired (usd per share) \| $ / shares	16.90
Weighted average exercise price, Options outstanding Ending Balance (usd per share) \| $ / shares	$ 22.92

Stock Based Compensation (Details Textual) - USD ($)	12 Months Ended
Stock Based Compensation (Details Textual) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum vesting period 1	5 years
Maximum vesting period 2	6 years
Maximum vesting period 3	10 years
Fair value of stock option awards outstanding (in shares)	603,000	2,473,000
Aggregate intrinsic value	$ 4,900,000
Aggregate intrinsic value exercisable	$ 4,900,000
Weighted average contractual term	1 year 11 months 19 days
Total intrinsic value of options exercised	$ 15,800,000	$ 300,000	$ 800,000
Tax related benefits realized from the exercise of stock options	16,800,000	1,400,000	2,800,000
Unrecognized compensation expense related to unvested stock options	$ 500,000
Weighted average remaining requisite service period of unvested stock awards	7 months 28 days
Fair value of option shares vested	$ 3,000,000	6,700,000	9,700,000
Stock-based compensation expense	$ 9,039,000	13,625,000	18,505,000
Options granted (in shares)	0
Aggregate intrinsic value for the restricted stock and restricted stock units outstanding	$ 99,200,000
Aggregate intrinsic value expected to be settled in cash	40,700,000
Tax benefits recognized for stock based compensation	7,900,000	4,500,000	5,600,000
Capitalized stock-based compensation	7,200,000	3,600,000	5,000,000
Expensed stock-based compensation	30,000,000	17,600,000	21,600,000
Cash used to settle liability-based awards	$ 12,400,000	2,400,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	3 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	4 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining requisite service period of unvested stock awards	2 years
Unrecognized compensation expense related to unvested restricted stock and restricted stock units	$ 50,300,000
Unrecognized compensation expense related to unvested restricted stock expected to be settled in cash	24,000,000
Fair value of restricted stock and restricted stock units vested	51,900,000	8,400,000	13,600,000
Restricted stock or unit expenses	$ 36,300,000	17,700,000	20,200,000
Performance-Based Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period of shares	3 years
Performance-Based Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	0.00%
Performance-Based Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage	200.00%
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,000,000	$ 3,400,000	$ 6,400,000
Restricted Stock Service Based [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock grants (in shares)	283,000
Restricted stock vested (in shares)	334,000
Restricted Stock Liability Based
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock grants (in shares)	357,000
Restricted stock vested (in shares)	487,252	226,363
2012 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares of common stock provided (in shares)	8,700,000
2019 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum shares of common stock provided (in shares)	1,571,972

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	160,000,000	160,000,000
Common stock, shares issued (in shares)	117,861,923	116,847,003
Common stock, shares outstanding (in shares)	117,850,233	116,844,768
Treasury stock (in shares)	11,945	2,235

Fair Value Measurements (Details Textual) - USD ($)	12 Months Ended
Fair Value Measurements (Details Textual) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of notes payable	$ 1,080,000,000.00	$ 1,030,000,000.00
Pipe and other equipment
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impairment charge for equipments held in inventory	$ 0

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenues
Revenues	$ 1,862,075	$ 851,135	$ 1,026,204
Lease bonus - mineral acreage	0	4,062	1,711
Realized (loss) gain on derivatives	(220,105)	38,937	9,482
Unrealized gain (loss) on derivatives	21,011	(32,008)	(53,727)
Total revenues	1,662,981	862,126	983,670
Expenses
Production taxes, transportation and processing	178,987	93,338	92,273
Lease operating	108,964	104,953	117,305
Purchased natural gas	77,126	32,734	69,398
Depletion, depreciation and amortization	344,905	361,831	350,540
Accretion of asset retirement obligations	2,068	1,948	1,822
Full-cost ceiling impairment	0	684,743	0
General and administrative	96,396	62,578	80,054
Total expenses	869,905	1,383,625	748,190
Operating income (loss)	793,076	(521,499)	235,480
Other income (expense)
Net loss on asset sales and impairment	(331)	(2,832)	(967)
Interest expense	(74,687)	(76,692)	(73,873)
Other (expense) income	(2,712)	1,864	(2,126)
Total other expense	(77,730)	(77,660)	(76,966)
Income (loss) before income taxes	715,346	(599,159)	158,514
Income tax provision (benefit)
Deferred	74,710	(45,599)	35,532
Total income tax provision (benefit)	74,710	(45,599)	35,532
Net income (loss)	584,968	(593,205)	87,777
Net income attributable to non-controlling interest in subsidiaries	(55,668)	(39,645)	(35,205)
Net income (loss) attributable to Matador Resources Company shareholders	$ 640,636	$ (553,560)	$ 122,982
Earnings (loss) per common share attributable to Matador Resources Company shareholders
Basic (usd per share)	$ 5.00	$ (5.11)	$ 0.75
Diluted (usd per share)	$ 4.91	$ (5.11)	$ 0.75
Weighted average common shares outstanding
Basic (in shares)	116,999	116,068	116,555
Diluted (in shares)	119,163	116,068	117,063
Oil and natural gas revenues
Revenues
Revenues	$ 1,700,542	$ 744,461	$ 892,325
Third-party midstream services revenues
Revenues
Revenues	75,499	64,932	59,110
Expenses
Cost of Goods and Services Sold	61,459	41,500	36,798
Sales of purchased natural gas
Revenues
Revenues	$ 86,034	$ 41,742	$ 74,769

Equity	12 Months Ended
Equity	Dec. 31, 2021
Stockholders' Equity Note [Abstract]
EQUITY	EQUITY Common Stock Dividend The Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.025 per share of common stock in each of the first three quarters of 2021 and, in October 2021, the Board amended the Company’s dividend policy to increase the quarterly dividend and declared a quarterly cash dividend of $0.05 per share of common stock. Total cash dividends declared and paid totaled $14.6 million during the year ended December 31, 2021. There were no cash dividends declared or paid prior to 2021. Treasury Stock On October 21, 2021, October 22, 2020 and October 24, 2019, Matador’s Board of Directors canceled all of the shares of treasury stock outstanding as of September 30, 2021, 2020 and 2019, respectively. These shares were restored to the status of authorized but unissued shares of common stock of the Company. The shares of treasury stock outstanding at December 31, 2021, 2020 and 2019 represent forfeitures of non-vested restricted stock awards and forfeitures of fully vested restricted stock awards due to net share settlements with employees. Preferred Stock The Company’s Amended and Restated Certificate of Formation authorizes 2,000,000 shares of preferred stock. Before any such shares are issued, the Board of Directors shall fix and determine the designations, preferences, limitations and relative rights, including voting rights of the shares of each such series.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

Property and Equipment (Details Textual) $ in Thousands	Dec. 31, 2021 USD ($)
Property, Plant and Equipment [Line Items]
Anticipated amount for wells	$ 68,300
Projects Inception to Date
Property, Plant and Equipment [Line Items]
Exploration costs	16,745
Development wells	$ 51,574

Fair Value Measurements

12 Months Ended

Dec. 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.


	Fair Value Measurements at December 31, 2021 using
Description
	Level 1		Level 2		Level 3		Total
Assets (Liabilities)
Oil derivatives and basis swaps	$	—	$	(14,727)	$	—	$	(14,727)
Natural gas derivatives	—		(151)		—		(151)
Contingent consideration related to business combination	—		—		(8,203)		(8,203)
Total	$	—	$	(14,878)	$	(8,203)	$	(23,081)


	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 12.

Other Fair Value Measurements

At December 31, 2021 and 2020, the carrying values reported on the 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 December 31, 2021 and 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 December 31, 2021 and 2020, the fair value of the Notes was $1.08 billion and $1.03 billion, respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy.

Certain assets and liabilities are measured at fair value on a nonrecurring basis, including assets and liabilities acquired in a business combination, lease and well equipment inventory when the market value is determined to be lower than the cost of the inventory and other property and equipment that are reduced to fair value when they are impaired or held for sale. The Company recorded no impairment to its lease and well equipment inventory or other property and equipment in 2021 and 2020.

- 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

Derivative Financial Instruments (Tables)

12 Months Ended

Dec. 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 December 31, 2021.


		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)

Commodity	Calculation Period
Oil	01/01/2022 - 12/31/2022	2,040,000	$	50.00	$	67.85	$	(16,652)
Natural Gas	01/01/2022 - 03/31/2022	8,250,000	$	2.70	$	6.33	(151)

Total open costless collar contracts							$	(16,803)

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


Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)


Oil Basis	01/01/2022 - 12/31/2022	5,520,000	$	0.95	1,925
Total open basis swap contracts					$	1,925

Summary of offsetting assets


Derivative Instruments	Gross amounts recognized		Gross amounts netted in the consolidated balance sheets		Net amounts presented in the consolidated balance sheets
December 31, 2021
Current assets	$	215,145	$	(213,174)	$	1,971

Current liabilities	(230,023)		213,174		(16,849)

Total	$	(14,878)	$	—	$	(14,878)
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 offsetting liabilities


Derivative Instruments	Gross amounts recognized		Gross amounts netted in the consolidated balance sheets		Net amounts presented in the consolidated balance sheets
December 31, 2021
Current assets	$	215,145	$	(213,174)	$	1,971

Current liabilities	(230,023)		213,174		(16,849)

Total	$	(14,878)	$	—	$	(14,878)
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


		Year Ended December 31,
Type of Instrument	Location in Statements of Operations	2021		2020		2019
Derivative Instrument
Oil	Revenues: Realized (loss) gain on derivatives	$	(194,058)	$	38,937	$	9,026
Natural Gas	Revenues: Realized (loss) gain on derivatives	(26,047)		—		456

Realized (loss) gain on derivatives		(220,105)		38,937		9,482
Oil	Revenues: Unrealized gain (loss) on derivatives	26,857		(37,703)		(53,443)
Natural Gas	Revenues: Unrealized (loss) gain on derivatives	(5,846)		5,695		(284)

Unrealized gain (loss) on derivatives		21,011		(32,008)		(53,727)
Total		$	(199,094)	$	6,929	$	(44,245)

Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 1,862,075	$ 851,135	$ 1,026,204
Lease bonus - mineral acreage	0	4,062	1,711
Realized gain on derivatives	(220,105)	38,937	9,482
Unrealized gain on derivatives	21,011	(32,008)	(53,727)
Total revenues	1,662,981	862,126	983,670
Oil
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	1,205,608	595,507	759,811
Natural gas revenues
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	494,934	148,954	132,514
Third-party midstream services revenues
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	75,499	64,932	59,110
Sales of purchased natural gas
Disaggregation of Revenue [Line Items]
Revenue from contract with customer	$ 86,034	$ 41,742	$ 74,769

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets (Liabilities)
Oil derivatives and basis swaps		$ (35,889)
Natural gas derivatives		0
Total	$ (14,878)
Fair value on a recurring basis
Assets (Liabilities)
Oil derivatives and basis swaps	(14,727)	(41,584)
Natural gas derivatives	(151)	(5,695)
Contingent consideration related to business combination	(8,203)
Total	(23,081)	(35,889)
Fair value on a recurring basis \| Level 1
Assets (Liabilities)
Oil derivatives and basis swaps	0	0
Natural gas derivatives	0	0
Contingent consideration related to business combination	0
Total	0	0
Fair value on a recurring basis \| Level 2
Assets (Liabilities)
Oil derivatives and basis swaps	(14,727)	(41,584)
Natural gas derivatives	(151)	(5,695)
Contingent consideration related to business combination	0
Total	(14,878)	(35,889)
Fair value on a recurring basis \| Level 3
Assets (Liabilities)
Oil derivatives and basis swaps	0	0
Natural gas derivatives	0	0
Contingent consideration related to business combination	(8,203)
Total	$ (8,203)	$ 0

Segment Reporting (Details)	12 Months Ended
Segment Reporting (Details)	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Segment Reporting Information [Line Items]
Number of business segments \| segment	2
Revenues	$ 1,862,075,000	$ 851,135,000	$ 1,026,204,000
Lease bonus - mineral acreage	0	4,062,000	1,711,000
Realized gain on derivatives	(220,105,000)	38,937,000	9,482,000
Unrealized gain on derivatives	21,011,000	(32,008,000)	(53,727,000)
Expenses	869,905,000	1,383,625,000	748,190,000
Operating income (loss)	793,076,000	(521,499,000)	235,480,000
Assets	4,262,153,000	3,687,280,000	4,069,676,000
Capital expenditures	837,928,000	721,838,000	946,025,000
Depletion, depreciation and amortization	344,905,000	361,831,000	350,540,000
Impairment charge of net capitalized costs	0	684,743,000	0
Operating Segments \| Exploration and Production
Segment Reporting Information [Line Items]
Lease bonus - mineral acreage		4,062,000	1,711,000
Realized gain on derivatives	(220,105,000)	38,937,000	9,482,000
Unrealized gain on derivatives	21,011,000	(32,008,000)	(53,727,000)
Expenses	794,880,000	1,334,378,000	621,687,000
Operating income (loss)	748,456,000	(561,559,000)	226,708,000
Assets	3,324,681,000	2,782,819,000	3,360,725,000
Capital expenditures	778,191,000	518,198,000	718,712,000
Depletion, depreciation and amortization	310,900,000	335,800,000	331,700,000
Payments to acquire productive assets		70,500,000	48,300,000
Operating Segments \| Midstream
Segment Reporting Information [Line Items]
Lease bonus - mineral acreage		0	0
Realized gain on derivatives	0	0	0
Unrealized gain on derivatives	0	0	0
Expenses	142,444,000	97,599,000	130,612,000
Operating income (loss)	130,519,000	92,970,000	81,506,000
Assets	879,672,000	836,509,000	647,937,000
Capital expenditures	59,361,000	201,440,000	223,612,000
Depletion, depreciation and amortization	31,500,000	23,300,000	16,100,000
Income (loss) attributable to noncontrolling interest	55,700,000	39,600,000	35,200,000
Land and seismic acquisition expenditures	263,500,000
Payments to acquire productive assets	28,500,000	112,100,000	145,400,000
Corporate
Segment Reporting Information [Line Items]
Lease bonus - mineral acreage		0	0
Realized gain on derivatives	0	0	0
Unrealized gain on derivatives	0	0	0
Expenses	85,899,000	52,910,000	72,734,000
Operating income (loss)	(85,899,000)	(52,910,000)	(72,734,000)
Assets	57,800,000	67,952,000	61,014,000
Capital expenditures	376,000	2,200,000	3,701,000
Depletion, depreciation and amortization	2,600,000	2,700,000	2,700,000
Consolidations and Eliminations
Segment Reporting Information [Line Items]
Lease bonus - mineral acreage		0	0
Realized gain on derivatives	0	0	0
Unrealized gain on derivatives	0	0	0
Expenses	(153,318,000)	(101,262,000)	(76,843,000)
Operating income (loss)	0	0	0
Assets	0	0	0
Capital expenditures	0	0	0
Oil and natural gas revenues
Segment Reporting Information [Line Items]
Revenues	1,700,542,000	744,461,000	892,325,000
Oil and natural gas revenues \| Operating Segments \| Exploration and Production
Segment Reporting Information [Line Items]
Revenues	1,695,032,000	741,092,000	886,127,000
Oil and natural gas revenues \| Operating Segments \| Midstream
Segment Reporting Information [Line Items]
Revenues	5,510,000	3,369,000	6,198,000
Oil and natural gas revenues \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0	0
Oil and natural gas revenues \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0	0
Third-party midstream services revenues
Segment Reporting Information [Line Items]
Revenues	75,499,000	64,932,000	59,110,000
Third-party midstream services revenues \| Operating Segments \| Exploration and Production
Segment Reporting Information [Line Items]
Revenues	0	0	0
Third-party midstream services revenues \| Operating Segments \| Midstream
Segment Reporting Information [Line Items]
Revenues	228,817,000	166,194,000	135,953,000
Third-party midstream services revenues \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0	0
Third-party midstream services revenues \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	(153,318,000)	(101,262,000)	(76,843,000)
Sales of purchased natural gas
Segment Reporting Information [Line Items]
Revenues	86,034,000	41,742,000	74,769,000
Sales of purchased natural gas \| Operating Segments \| Exploration and Production
Segment Reporting Information [Line Items]
Revenues	47,398,000	20,736,000	4,802,000
Sales of purchased natural gas \| Operating Segments \| Midstream
Segment Reporting Information [Line Items]
Revenues	38,636,000	21,006,000	69,967,000
Sales of purchased natural gas \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0	0
Sales of purchased natural gas \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	$ 0	$ 0	$ 0

Leases - Narrative (Details)	Dec. 31, 2021
Leases [Abstract]
Incremental borrowing rate, operating leases	2.73%
Incremental borrowing rate, finance leases	1.99%

Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands		12 Months Ended
	Feb. 17, 2017	Dec. 31, 2021	Dec. 31, 2020
Delivery Of Natural Gas And Oil Production To Third Parties
Long-term Purchase Commitment [Line Items]
Payment for other commitment		$ 48,700	$ 46,000
Other commitment		597,300
Drilling Rig Commitments
Long-term Purchase Commitment [Line Items]
Maximum termination outstanding obligations of contracts		10,800
Minimum outstanding commitments		$ 65,400
Drilling Rig Commitments \| Minimum
Long-term Purchase Commitment [Line Items]
Purchase commitment period		3 years
Corporate Joint Venture \| San Mateo Midstream
Long-term Purchase Commitment [Line Items]
Contractual obligation		$ 390,300
2019 15-Year Fixed Fee Natural Gas Transportation Agreement \| San Mateo Midstream
Long-term Purchase Commitment [Line Items]
Supply agreement, term		15 years
Rustler Breaks Asset Area \| Corporate Joint Venture \| San Mateo Midstream
Long-term Purchase Commitment [Line Items]
Contractual obligation, term	15 years
Rustler Breaks and Wolf Asset Area \| Corporate Joint Venture \| San Mateo Midstream
Long-term Purchase Commitment [Line Items]
Contractual obligation, term	15 years

Leases - Lease Payment Maturity Schedule (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2021	$ 19,649
2022	6,830
2024	4,287
2025	1,553
Thereafter	0
Total lease payments	36,536
Less imputed interest	(1,547)
Lease liability	34,989	$ 57,314
Less current obligations	(19,649)	(35,716)
Long-term lease obligations	15,340	21,598
Financing Leases
2021	378
2022	180
2023	37
2024	0
2025	0
Thereafter	0
Total lease payments	595
Less imputed interest	(172)
Total lease obligations	423	877
Less current obligations	(378)	(621)
Long-term lease obligations	45	$ 256
2022	$ 4,217

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 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 gathering, transportation, processing, fractionation, sales and disposal. The Company paid approximately $48.7 million and $46.0 million for deliveries under these agreements during the years ended December 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 December 31, 2021, the total deficiencies required to be paid by the Company under these agreements would be approximately $597.3 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 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 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 December 31, 2021 was approximately $390.3 million. Other Commitments The Company does not own or operate its own drilling rigs, but instead enters into contracts with third parties for such drilling rigs. These contracts establish daily rates for the drilling rigs and the term of the Company’s commitment for the drilling services to be provided. The Company would incur a termination obligation if the Company elected to terminate a contract and if the drilling contractor were unable to secure replacement work for the contracted drilling rigs at the same daily rates being charged to the Company prior to the end of their respective contract terms. The Company’s undiscounted minimum outstanding aggregate termination obligations under its drilling rig contracts were approximately $10.8 million at December 31, 2021. At December 31, 2021, the Company had outstanding commitments to drill and complete and to participate in the drilling and completion of various operated and non-operated wells. If all of these wells are drilled and completed as proposed, the Company’s undiscounted minimum outstanding aggregate commitments for its participation in these operated and non-operated wells were approximately $65.4 million at December 31, 2021. The Company expects these costs to be incurred within the next three years. 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 to 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.

Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets
Net operating loss carryforwards	$ 129,651	$ 122,952
Unrealized loss on derivatives	3,729	8,997
Percentage depletion carryover	1,770	1,462
Compensation	9,838	10,405
Lease liabilities	4,866	9,380
Other	9,410	8,334
Deferred Tax Assets, Gross	159,264	161,530
Valuation allowance on deferred tax assets	(10,599)	(110,681)
Total deferred tax assets, net of valuation allowance	148,665	50,849
Deferred tax liabilities
Property and equipment	(179,153)	(11,879)
Less than wholly-owned subsidiaries	(39,900)	(26,564)
Lease right of use assets	(4,866)	(9,380)
Other	(2,684)	(2,684)
Total deferred tax liabilities	(226,603)	(50,507)
Net deferred tax (liabilities) assets	$ (77,938)	$ 342

Supplemental Disclosures

12 Months Ended

Dec. 31, 2021

Supplemental Disclosures [Abstract]

SUPPLEMENTAL DISCLOSURES

Accrued Liabilities

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


	December 31,
	2021		2020
Accrued evaluated and unproved and unevaluated property costs	$	128,598	$	44,012
Accrued midstream properties costs	7,799		12,776

Accrued lease operating expenses	32,182		24,276
Accrued interest on debt	18,232		18,315
Accrued asset retirement obligations	270		623
Accrued partners’ share of joint interest charges	17,460		7,407

Accrued payable related to purchased natural gas	11,284		418
Other	37,458		11,331
Total accrued liabilities	$	253,283	$	119,158

Supplemental Cash Flow Information

The following table provides supplemental disclosures of cash flow information for the years ended December 31, 2021, 2020 and 2019 (in thousands).


	Year Ended December 31,
	2021		2020		2019

Cash paid for interest expense, net of amounts capitalized	$	74,843	$	76,880	$	75,525
Increase (decrease) in asset retirement obligations related to mineral properties	$	1,091	$	(208)	$	2,912
Increase in asset retirement obligations related to midstream properties	$	257	$	690	$	1,204
Increase (decrease) in liabilities for drilling, completion and equipping capital expenditures	$	80,255	$	(26,126)	$	(13,310)
Increase (decrease) increase in liabilities for acquisition of oil and natural gas properties	$	2,981	$	(2,346)	$	(2,567)
(Decrease) increase in liabilities for midstream capital expenditures	$	(4,478)	$	(33,609)	$	30,374



Stock-based compensation expense recognized as liability	$	24,494	$	3,702	$	3,170


Transfer of inventory (to) from oil and natural gas properties	$	(398)	$	608	$	1,515


	Year Ended December 31,
	2021		2020		2019
Cash	$	48,135	$	57,916	$	40,024
Restricted cash	38,785		33,467		25,104
Total cash and restricted cash	$	86,920	$	91,383	$	65,128

Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Operating leases
Right-of-use asset	$ 29,519	$ 51,528
Other current liabilities	$ (19,649)	$ (35,716)
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current	Other Liabilities, Current
Other long-term liabilities	$ (15,340)	$ (21,598)
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Total operating lease liabilities	$ (34,989)	$ (57,314)
Financing leases
Other property and equipment, at cost	5,914	3,673
Accumulated depreciation	$ (3,485)	$ (2,134)
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Net property and equipment	$ 2,429	$ 1,539
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current	Other Liabilities, Current
Other current liabilities	$ (378)	$ (621)
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent	Other Liabilities, Noncurrent
Other long-term liabilities	$ (45)	$ (256)
Total financing lease liabilities	$ (423)	$ (877)
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent	Other Assets, Noncurrent

Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

Deferred tax assets and liabilities are the result of temporary differences between the financial statement carrying values and the tax bases of assets and liabilities. The Company’s net deferred tax position as of December 31, 2021 and 2020 is as follows (in thousands).


	December 31,
	2021		2020













Deferred tax assets

Net operating loss carryforwards	$	129,651	$	122,952
Unrealized loss on derivatives	3,729		8,997
Percentage depletion carryover	1,770		1,462
Compensation	9,838		10,405
Lease liabilities	4,866		9,380
Other	9,410		8,334
Total deferred tax assets	159,264		161,530
Valuation allowance on deferred tax assets	(10,599)		(110,681)
Total deferred tax assets, net of valuation allowance	148,665		50,849
Deferred tax liabilities

Property and equipment	(179,153)		(11,879)
Less than wholly-owned subsidiaries	(39,900)		(26,564)
Lease right of use assets	(4,866)		(9,380)
Other	(2,684)		(2,684)
Total deferred tax liabilities	(226,603)		(50,507)
Net deferred tax (liabilities) assets	$	(77,938)	$	342

At December 31, 2021, the Company had net operating loss carryforwards of $555.2 million for federal income tax purposes and $223.3 million for state income tax purposes available to offset future taxable income, as limited by the applicable provisions, and which expire at various dates beginning in 2027 for the federal net operating loss carryforwards. The state net operating loss carryforwards begin expiring at various dates beginning in 2024; however, the significant portion of the Company’s state net operating loss carryforwards expire beginning in 2027.

At December 31, 2020, the Company’s deferred tax assets exceeded its deferred tax liabilities due to the deferred tax assets generated by impairment charges recorded in 2020. As a result, the Company established a valuation allowance against most of the deferred tax assets beginning in the third quarter of 2020. The remaining net deferred tax asset at December 31, 2020 relates to state taxes, for which the deferred taxes were determined to be more likely than not to be utilized. Due to a variety of factors, including the Company’s significant net income in 2021, the Company’s federal valuation allowance was reversed as of September 30, 2021 as the deferred tax assets were determined to be more likely than not to be utilized. As a portion of the Company’s state net operating loss carryforwards are not expected to be utilized before expiration, a valuation allowance will continue to be recognized until the state deferred tax assets are more likely than not to be utilized.

The current income tax provision and the deferred income tax provision for the years ended December 31, 2021, 2020 and 2019 were comprised of the following (in thousands).


	Year Ended December 31,
	2021		2020		2019




Deferred income tax provision (benefit)
Federal income tax	$	44,883	$	(25,675)	$	29,171
State income tax	29,827		(19,924)		6,361
Net deferred income tax provision (benefit)	$	74,710	$	(45,599)	$	35,532


	Year Ended December 31,
	2021		2020		2019

Federal tax expense (benefit) at statutory rate(1)	$	150,223	$	(125,823)	$	33,441

State income tax	26,646		(20,607)		6,141


Permanent differences	(2,078)		(3,114)		(4,267)



Change in federal valuation allowance	(103,262)		103,262		—
Change in state valuation allowance	3,181		683		217
Net deferred income tax provision (benefit)	74,710		(45,599)		35,532

Total income tax provision (benefit)	$	74,710	$	(45,599)	$	35,532

__________________

(1)The statutory federal tax rate was 21% for the years ended December 31, 2021, 2020 and 2019.

The Company files a United States federal income tax return and several state tax returns, a number of which remain open for examination. The earliest tax year open for examination for the federal, the State of New Mexico and the State of Louisiana tax returns is 2018. The earliest tax year open for examination for the State of Texas tax return is 2017.

The Company has evaluated all tax positions for which the statute of limitations remains open and believes that the material positions taken would more likely than not be sustained by examination. Therefore, at December 31, 2021, the Company had not established any reserves for, nor recorded any unrecognized benefits related to, uncertain tax positions.

- 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

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Property and Equipment (Details 1) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Costs incurred for
Total unproved and unevaluated	$ 964,714	$ 902,133
2021
Costs incurred for
Property acquisition	111,120
Exploration wells	14,738
Development wells	46,232
Total unproved and unevaluated	172,090
2020
Costs incurred for
Property acquisition		40,355
Exploration wells		411
Development wells		2,027
Total unproved and unevaluated		$ 42,793
2019
Costs incurred for
Property acquisition			$ 40,140
Exploration wells			1,199
Development wells			3,245
Total unproved and unevaluated			44,584
2018
Costs incurred for
Property acquisition			417,114
Exploration wells			123
Development wells			60
Total unproved and unevaluated			$ 417,297
2017 and prior
Costs incurred for
Property acquisition				$ 287,666
Exploration wells				274
Development wells				10
Total unproved and unevaluated				$ 287,950
Total
Costs incurred for
Property acquisition	896,395
Exploration wells	16,745
Development wells	51,574
Total unproved and unevaluated	$ 964,714

Debt (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Debt Instrument Redemption


Year						Redemption Price
2021						104.406%
2022						102.938%
2023						101.469%
2024 and thereafter						100.000%

Stock-Based Compensation (Details 2) shares in Thousands	12 Months Ended
Stock-Based Compensation (Details 2) shares in Thousands	Dec. 31, 2021 $ / shares shares
$14.48 - $15.40
Summarized information about outstanding and exercisable stock option
Range of exercise prices, lower limit (in usd per share)	$ 14.48
Range of exercise prices, upper limit (in usd per share)	$ 15.40
Shares outstanding (in shares) \| shares	240
Weighted average remaining contractual price	3 years 7 months 28 days
Weighted average exercise price (usd per share)	$ 14.80
Shares exercisable \| shares	82
Weighted average exercise price (usd per share)	$ 14.80
$26.86 - $29.68
Summarized information about outstanding and exercisable stock option
Range of exercise prices, lower limit (in usd per share)	26.86
Range of exercise prices, upper limit (in usd per share)	$ 29.68
Shares outstanding (in shares) \| shares	363
Weighted average remaining contractual price	1 year 7 months 2 days
Weighted average exercise price (usd per share)	$ 28.28
Shares exercisable \| shares	363
Weighted average exercise price (usd per share)	$ 28.28

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Year Ended December 31, 2021
Oil and natural gas revenues	$	1,695,032	$	5,510	$	—	$	—	$	1,700,542
Midstream services revenues	—		228,817		—		(153,318)		75,499
Sales of purchased natural gas	47,398		38,636		—		—		86,034

Realized loss on derivatives	(220,105)		—		—		—		(220,105)
Unrealized gain on derivatives	21,011		—		—		—		21,011
Expenses(1)	794,880		142,444		85,899		(153,318)		869,905
Operating income(2)	$	748,456	$	130,519	$	(85,899)	$	—	$	793,076






Total assets(3)	$	3,324,681	$	879,672	$	57,800	$	—	$	4,262,153
Capital expenditures(4)	$	778,191	$	59,361	$	376	$	—	$	837,928

_____________________

(2)Includes $55.7 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Excludes intercompany receivables and investments in subsidiaries.


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Year Ended December 31, 2020
Oil and natural gas revenues	$	741,092	$	3,369	$	—	$	—	$	744,461
Midstream services revenues	—		166,194		—		(101,262)		64,932
Sales of purchased natural gas	20,736		21,006		—		—		41,742
Lease bonus - mineral acreage	4,062		—		—		—		4,062
Realized gain on derivatives	38,937		—		—		—		38,937
Unrealized loss on derivatives	(32,008)		—		—		—		(32,008)
Expenses(1)	1,334,378		97,599		52,910		(101,262)		1,383,625
Operating (loss) income(2)	$	(561,559)	$	92,970	$	(52,910)	$	—	$	(521,499)






Total assets(3)	$	2,782,819	$	836,509	$	67,952	$	—	$	3,687,280
Capital expenditures(4)	$	518,198	$	201,440	$	2,200	$	—	$	721,838

_____________________

(2)Includes $39.6 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Excludes intercompany receivables and investments in subsidiaries.


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Year Ended December 31, 2019
Oil and natural gas revenues	$	886,127	$	6,198	$	—	$	—	$	892,325
Midstream services revenues	—		135,953		—		(76,843)		59,110
Sales of purchased natural gas	4,802		69,967		—		—		74,769
Lease bonus - mineral acreage	1,711		—		—		—		1,711
Realized gain on derivatives	9,482		—		—		—		9,482
Unrealized loss on derivatives	(53,727)		—		—		—		(53,727)
Expenses(1)	621,687		130,612		72,734		(76,843)		748,190
Operating income (loss)(2)	$	226,708	$	81,506	$	(72,734)	$	—	$	235,480






Total assets(3)	$	3,360,725	$	647,937	$	61,014	$	—	$	4,069,676
Capital expenditures(4)	$	718,712	$	223,612	$	3,701	$	—	$	946,025

_____________________

(2)Includes $35.2 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Excludes intercompany receivables and investments in subsidiaries.

Stock Based Compensation (Details 4) - Restricted Stock Liability Based - shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-vested Shares, Beginning Balance (in shares)	1,319,000
Shares Granted (in shares)	357,000
Shares Vested (in shares)	(487,252)	(226,363)
Shares Forfeited (in shares)	(87,000)
Non-vested Shares, Ending Balance (in shares)	1,102,000	1,319,000

Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

LEASES

The Company determines if an arrangement is a lease at inception of the contract. If an arrangement is a lease, the present value of the related lease payments is recorded as a liability, and an equal amount is capitalized as a right of use asset on the Company’s consolidated balance sheets. The Company elected to include payments for non-lease components associated with certain leases when determining the present value of the lease payments. Right of use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s estimated incremental borrowing rate, determined at the lease commencement date using the Company’s average secured borrowing rate, is used to calculate present value. The weighted average estimated incremental borrowing rates used for the year ended December 31, 2021 were 2.73% and 1.99% for operating leases and financing leases, respectively. For these purposes, the lease term includes options to extend the lease when it is reasonably certain that the Company will exercise such option. Leases with terms of 12 months or less at inception are not recorded on the consolidated balance sheets unless there is a significant cost to terminate the lease, including the cost of removal of the leased asset. As the Company is the responsible party under these arrangements, the Company records the resulting assets and liabilities on a gross basis in its consolidated balance sheets.


	Year Ended December 31,
	2021		2020
Operating leases
Lease operating	$	11,393	$	12,994
Plant and other midstream services	36		28
General and administrative	3,645		3,698
Total operating leases(1)	15,074		16,720
Short-term leases
Lease operating	11,234		12,890
Plant and other midstream services	4,037		5,689
General and administrative	37		47
Total short-term leases(2)(3)	15,308		18,626
Financing leases
Depreciation of assets	566		747
Interest on lease liabilities	138		123
Total financing leases	704		870
Total lease expense	$	31,086	$	36,216

_____________________

(2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the consolidated balance sheets as they are short-term leases.

The following table presents supplemental consolidated balance sheet information related to leases as of December 31, 2021 and 2020, respectively (in thousands).


	December 31,
	2021		2020
Operating leases
Other long-term assets	$	29,519	$	51,528
Other current liabilities	$	(19,649)	$	(35,716)
Other long-term liabilities	(15,340)		(21,598)
Total operating lease liabilities	$	(34,989)	$	(57,314)

Financing leases
Other property and equipment, at cost	$	5,914	$	3,673
Accumulated depreciation	(3,485)		(2,134)
Net property and equipment	$	2,429	$	1,539
Other current liabilities	$	(378)	$	(621)
Other long-term liabilities	(45)		(256)
Total financing lease liabilities	$	(423)	$	(877)

The following table presents supplemental consolidated cash flow information related to lease payments for the year ended December 31, 2021 and 2020, respectively (in thousands).


	Year Ended December 31,
	2021		2020
Cash paid related to lease liabilities
Operating cash payments for operating leases	$	14,430	$	15,664
Investing cash payments for operating leases	$	31,967	$	33,556
Financing cash payments for financing leases	$	629	$	790

Right of use assets obtained in exchange for lease obligations entered into during the period
Operating leases	$	18,454	$	12,474
Financing leases	$	2,241	$	996

The following table presents the maturities of lease liabilities at December 31, 2021 (in years).


Weighted-Average Remaining Lease Term						December 31, 2021
Operating leases						2.5
Financing leases						1.7

The following table presents a schedule of future minimum lease payments required under all lease agreements as of December 31, 2021 (in thousands).


	December 31, 2021
	Operating Leases		Financing Leases


2022	$	19,649	$	378
2023	6,830		180
2024	4,217		37
2025	4,287		—
2026	1,553		—
Thereafter	—		—
Total lease payments	36,536		595
Less imputed interest	(1,547)		(172)
Total lease obligations	34,989		423
Less current obligations	(19,649)		(378)
Long-term lease obligations	$	15,340	$	45

Leases

LEASES


	Year Ended December 31,
	2021		2020
Operating leases
Lease operating	$	11,393	$	12,994
Plant and other midstream services	36		28
General and administrative	3,645		3,698
Total operating leases(1)	15,074		16,720
Short-term leases
Lease operating	11,234		12,890
Plant and other midstream services	4,037		5,689
General and administrative	37		47
Total short-term leases(2)(3)	15,308		18,626
Financing leases
Depreciation of assets	566		747
Interest on lease liabilities	138		123
Total financing leases	704		870
Total lease expense	$	31,086	$	36,216

_____________________

(2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the consolidated balance sheets as they are short-term leases.

The following table presents supplemental consolidated balance sheet information related to leases as of December 31, 2021 and 2020, respectively (in thousands).


	December 31,
	2021		2020
Operating leases
Other long-term assets	$	29,519	$	51,528
Other current liabilities	$	(19,649)	$	(35,716)
Other long-term liabilities	(15,340)		(21,598)
Total operating lease liabilities	$	(34,989)	$	(57,314)

Financing leases
Other property and equipment, at cost	$	5,914	$	3,673
Accumulated depreciation	(3,485)		(2,134)
Net property and equipment	$	2,429	$	1,539
Other current liabilities	$	(378)	$	(621)
Other long-term liabilities	(45)		(256)
Total financing lease liabilities	$	(423)	$	(877)

The following table presents supplemental consolidated cash flow information related to lease payments for the year ended December 31, 2021 and 2020, respectively (in thousands).


	Year Ended December 31,
	2021		2020
Cash paid related to lease liabilities
Operating cash payments for operating leases	$	14,430	$	15,664
Investing cash payments for operating leases	$	31,967	$	33,556
Financing cash payments for financing leases	$	629	$	790

Right of use assets obtained in exchange for lease obligations entered into during the period
Operating leases	$	18,454	$	12,474
Financing leases	$	2,241	$	996

The following table presents the maturities of lease liabilities at December 31, 2021 (in years).


Weighted-Average Remaining Lease Term						December 31, 2021
Operating leases						2.5
Financing leases						1.7

The following table presents a schedule of future minimum lease payments required under all lease agreements as of December 31, 2021 (in thousands).


	December 31, 2021
	Operating Leases		Financing Leases


2022	$	19,649	$	378
2023	6,830		180
2024	4,217		37
2025	4,287		—
2026	1,553		—
Thereafter	—		—
Total lease payments	36,536		595
Less imputed interest	(1,547)		(172)
Total lease obligations	34,989		423
Less current obligations	(19,649)		(378)
Long-term lease obligations	$	15,340	$	45

Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized (loss) gain on derivatives	$ (220,105)	$ 38,937	$ 9,482
Unrealized gain (loss) on derivatives	21,011	(32,008)	(53,727)
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	(220,105)	38,937	9,482
Unrealized gain (loss) on derivatives	21,011	(32,008)	(53,727)
Total	(199,094)	6,929	(44,245)
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	(194,058)	38,937	9,026
Unrealized gain (loss) on derivatives	26,857	(37,703)	(53,443)
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	(26,047)	0	456
Unrealized gain (loss) on derivatives	$ (5,846)	$ 5,695	$ (284)

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summarized information about stock options outstanding

Summarized information about stock options outstanding at December 31, 2021 under the 2012 Incentive Plan and the 2019 Incentive Plan (collectively, the “LTIPs”) is as follows.


	Number of options (in thousands)	Weighted average exercise price
Options outstanding at December 31, 2020	2,473	$	23.08
Options granted	—	$	—
Options exercised	(1,368)	$	25.37
Options forfeited	(37)	$	18.72
Options expired	(465)	$	16.90
Options outstanding at December 31, 2021	603	$	22.92

Summarized information about outstanding and exercisable stock option


	Options outstanding at December 31, 2021				Options exercisable at December 31, 2021
Range of exercise prices	Shares outstanding (in thousands)	Weighted average remaining contractual life	Weighted average exercise price		Shares exercisable (in thousands)	Weighted average exercise price
$14.48 - $15.40	240	3.66	$	14.80	82	$	14.80

$26.86 - $29.68	363	1.59	$	28.28	363	$	28.28

Summary of the non-vested restricted stock and restricted stock units

A summary of the non-vested equity-based restricted stock and restricted stock units as of December 31, 2021 is presented below (in thousands, except fair value).


	Restricted Stock			Restricted Stock Units

	Service Based				Service Based			Performance Based
Non-vested restricted stock and restricted stock units	Shares	Weighted average fair value			Shares	Weighted average fair value		Shares	Weighted average fair value
Non-vested at December 31, 2020	682	$	20.01		75	$	8.85	1,069	$	9.05
Granted	283	$	37.56		36	$	30.97	366	$	50.53
Vested(1)	(334)	$	27.14		(78)	$	9.02	(397)	$	20.00
Forfeited	(42)	$	17.35		—	$	—	(75)	$	9.33
Non-vested at December 31, 2021	589	$	24.59		33	$	33.39	963	$	20.26

__________________

(1)On December 31, 2021, 396,827 of the performance-based awards that were granted in 2019 vested. The vested units earned 200% for each vested award representing 793,654 aggregate shares of common stock, which were issued on December 31, 2021.

2012 Incentive Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Weighted average assumptions used to estimate fair value of stock options granted under the Stock and Incentive Plan

The weighted average grant date fair value for stock option awards granted under the 2019 Incentive Plan was estimated using the following weighted average assumptions during the year ended December 31, 2019. The Company did not grant stock option awards during the years ended December 31, 2021 and 2020.


												2019
Stock option pricing model												Black Scholes Merton
Expected option life												4.00 years
Risk-free interest rate												1.46%
Volatility												48.52%
Dividend yield												—%
Estimated forfeiture rate												4.43%
Weighted average fair value of stock option awards granted during the year												$5.04

Leases - Cash Flow Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash paid related to lease liabilities
Operating cash payments for operating leases	$ 14,430	$ 15,664
Investing cash payments for operating leases	31,967	33,556
Financing cash payments for financing leases	629	790
Right of use assets obtained in exchange for lease obligations entered into during the period
Operating leases	18,454	12,474
Financing leases	$ 2,241	$ 996

Business Combinations and Divestitures (Details) $ in Thousands						1 Months Ended	3 Months Ended	12 Months Ended									48 Months Ended
	Dec. 15, 2021 USD ($)	Dec. 14, 2021 USD ($) Boe $ / bbl	Feb. 23, 2021 USD ($)	Feb. 25, 2019 USD ($)	Feb. 17, 2017 USD ($) well	Dec. 31, 2021 USD ($)	Mar. 31, 2019 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) $ / bbl	Dec. 31, 2021 USD ($) $ / MMBTU	Dec. 31, 2020 USD ($)	Dec. 31, 2020 USD ($) $ / bbl	Dec. 31, 2020 USD ($) $ / MMBTU	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($) $ / bbl	Dec. 31, 2019 USD ($) $ / MMBTU	Feb. 23, 2021 USD ($)
Business Acquisition [Line Items]
Oil and Gas, average sale price									63.04	3.60		36.04	1.99		52.19	2.58
Proceeds from joint venture								$ 33,900
Distributions to noncontrolling interest holders								61,985			$ 45,570			$ 39,200
Additional paid-in capital						$ 2,077,592		2,077,592	$ 2,077,592	$ 2,077,592	2,027,069	$ 2,027,069	$ 2,027,069
Proceeds from divestiture of businesses								4,200			4,800
Proceeds from sale of assets								4,215			4,789			21,921
Noncontrolling Interest
Business Acquisition [Line Items]
Distributions to noncontrolling interest holders								61,985			45,570			39,200
Properties in Lea and Eddy, NM
Business Acquisition [Line Items]
Consideration transferred		$ 161,700
Business combination, working capital adjustment		6,500
Purchase price increase (decrease) due to average oil price		5,000
Fair value of contingent consideration at December 14, 2021		$ 6,718				1,500		1,500	$ 1,500	$ 1,500
Barrels of oil per day \| Boe		3,500
Properties in Lea and Eddy, NM \| Minimum
Business Acquisition [Line Items]
Oil and Gas, average sale price \| $ / bbl		75.00
Properties in Lea and Eddy, NM \| Pro Forma
Business Acquisition [Line Items]
Asset acquisition, pro forma revenue	$ 4,000					$ 3,200
San Mateo Midstream
Business Acquisition [Line Items]
Proceeds from joint venture								$ 64,500			47,400
Corporate Joint Venture \| San Mateo Midstream
Business Acquisition [Line Items]
Subsidiary ownership percentage					51.00%	49.00%		49.00%	49.00%	49.00%
Number of wells contributed to joint venture \| well					14
Deferred performance incentives				$ 150,000	$ 73,500
Deferred performance incentives, term					5 years
Amount earned from potential earnout			$ 58,800
Payments for deferred performance incentives																	$ 14,700
Remaining performance incentives available to be earned, up to					$ 14,700
Rustler Breaks and Wolf Asset Area \| Corporate Joint Venture \| San Mateo Midstream
Business Acquisition [Line Items]
Contractual obligation, term					15 years
Rustler Breaks Asset Area \| Corporate Joint Venture \| San Mateo Midstream
Business Acquisition [Line Items]
Contractual obligation, term					15 years
San Mateo Midstream \| Corporate Joint Venture
Business Acquisition [Line Items]
Contributions to joint venture											119,700			77,300
Additional paid-in capital											23,100	$ 23,100	$ 23,100	28,400	$ 28,400	$ 28,400
Tax impact of equity contribution											$ 4,800			$ 5,900
San Mateo Midstream \| Property Contribution [Member] \| Corporate Joint Venture
Business Acquisition [Line Items]
Contributions to joint venture							$ 1,000

Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details Textual) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Full-cost ceiling impairment	$ 0	$ 684,743	$ 0
Internal Revenue Service (IRS)
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	555,200
State and Local Jurisdiction
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 223,300

Stock-Based Compensation (Details 3) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 9,039	$ 13,625	$ 18,505
Employee Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,000	$ 3,400	$ 6,400
Restricted Stock Service Based
Summary of non-vested stock options
Non-vested Shares, Beginning Balance (in shares)	682,000
Shares Granted (in shares)	283,000
Shares Vested (in shares)	(334,000)
Shares Forfeited (in shares)	(42,000)
Non-vested Shares, Ending Balance (in shares)	589,000	682,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average fair value, Beginning Balance (usd per share)	$ 20.01
Weighted average fair value, Granted (usd per share)	37.56
Weighted average fair value, Vested (usd per share)	27.14
Weighted average fair value, Forfeited (usd per share)	17.35
Weighted average fair value, Ending Balance (usd per share)	$ 24.59	$ 20.01
Restricted Stock Units Service Based
Summary of non-vested stock options
Non-vested Shares, Beginning Balance (in shares)	75,000
Shares Granted (in shares)	36,000
Shares Vested (in shares)	(78,000)
Shares Forfeited (in shares)	0
Non-vested Shares, Ending Balance (in shares)	33,000	75,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average fair value, Beginning Balance (usd per share)	$ 8.85
Weighted average fair value, Granted (usd per share)	30.97
Weighted average fair value, Vested (usd per share)	9.02
Weighted average fair value, Forfeited (usd per share)	0
Weighted average fair value, Ending Balance (usd per share)	$ 33.39	$ 8.85
Restricted Stock Units Performance Based
Summary of non-vested stock options
Non-vested Shares, Beginning Balance (in shares)	1,069,000
Shares Granted (in shares)	366,000
Shares Vested (in shares)	(397,000)
Shares Forfeited (in shares)	(75,000)
Non-vested Shares, Ending Balance (in shares)	963,000	1,069,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Weighted average fair value, Beginning Balance (usd per share)	$ 9.05
Weighted average fair value, Granted (usd per share)	50.53
Weighted average fair value, Vested (usd per share)	20.00
Weighted average fair value, Forfeited (usd per share)	9.33
Weighted average fair value, Ending Balance (usd per share)	$ 20.26	$ 9.05
Restricted Stock Units Performance Based \| 2019 Incentive Plan
Summary of non-vested stock options
Non-vested Shares, Ending Balance (in shares)	396,827
Restricted Stock Units Performance Based \| 2019 Incentive Plan \| Maximum
Summary of non-vested stock options
Non-vested Shares, Ending Balance (in shares)	793,654

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred income tax provision (benefit)
Federal income tax	$ 44,883	$ (25,675)	$ 29,171
State income tax	29,827	(19,924)	6,361
Net deferred income tax provision (benefit)	74,710	(45,599)	35,532
Deferred income tax provision (benefit)
Federal tax (benefit) expense at statutory rate	150,223	(125,823)	33,441
State income tax	26,646	(20,607)	6,141
Permanent differences	(2,078)	(3,114)	(4,267)
Change in federal valuation allowance	(103,262)	103,262	0
Change in state valuation allowance	3,181	683	217
Net deferred income tax provision (benefit)	74,710	(45,599)	35,532
Total income tax provision (benefit)	$ 74,710	$ (45,599)	$ 35,532

Nature of Operations	12 Months Ended
Nature of Operations	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	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.

Derivative Financial Instruments (Details)	Dec. 31, 2021 USD ($) bbl $ / bbl
Derivative [Line Items]
Derivative Asset (Liability), Net	$ (14,878,000)
Open costless collar contracts
Summary of contracts for oil and natural gas
Fair Value of Asset (Liability)	$ (16,803,000)
Open costless collar contracts \| Oil
Summary of contracts for oil and natural gas
Notional Quantity (Bbl) \| bbl	2,040,000
Weighted Average Price Floor (usd per Bbl) \| $ / bbl	50.00
Weighted Average Price Ceiling (usd per Bbl) \| $ / bbl	67.85
Fair Value of Asset (Liability)	$ (16,652,000)
Open costless collar contracts \| Natural Gas \| 01/01/2021 - 12/31/2021
Summary of contracts for oil and natural gas
Notional Quantity (Bbl) \| bbl	8,250,000
Weighted Average Price Floor (usd per Bbl) \| $ / bbl	2.70
Weighted Average Price Ceiling (usd per Bbl) \| $ / bbl	6.33
Fair Value of Asset (Liability)	$ (151,000)
Open Basis Swap Contracts
Summary of contracts for oil and natural gas
Fair Value of Asset (Liability)	$ 1,925,000
Open Basis Swap Contracts \| Oil Basis Swaps \| 01/01/2022 - 12/31/2022
Summary of contracts for oil and natural gas
Notional Quantity (Bbl) \| bbl	5,520,000
Fixed price (usd per Bbl) \| $ / bbl	0.95
Fair Value of Asset (Liability)	$ 1,925,000

Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

Stock Options, Restricted Stock, Restricted Stock Units, Stock and Performance Awards

In 2012, the Company’s Board of Directors adopted and shareholders approved the 2012 Incentive Plan. The 2012 Incentive Plan provided for a maximum of 8,700,000 shares of common stock in the aggregate that could be issued pursuant to options, restricted stock, stock appreciation rights, restricted stock units or other performance award grants.

In 2019, the Company’s Board of Directors adopted and shareholders approved the 2019 Incentive Plan. As of December 31, 2021, the 2019 Incentive Plan provided for a maximum of 1,571,972 shares of common stock in the aggregate that may be issued pursuant to grants of options, restricted stock, stock appreciation rights, restricted stock units or other performance award grants. The persons eligible to receive awards under the 2019 Incentive Plan include employees, directors, contractors or advisors of the Company. The primary purpose of the 2019 Incentive Plan is to attract and retain key employees, directors, contractors or advisors of the Company. With the adoption of the 2019 Incentive Plan, the Company does not expect to make any future awards under the 2012 Incentive Plan, but the 2012 Incentive Plan will remain in place until all awards outstanding under that plan have been settled.

The 2012 Incentive Plan and the 2019 Incentive Plan are administered by the independent members of the Board of Directors, who, upon recommendation of the Strategic Planning and Compensation Committee of the Board of Directors, determine the number of options, restricted shares or other awards to be granted, the effective dates, the terms of the grants and the vesting periods. The Company typically uses newly issued shares of common stock to satisfy option exercises or restricted share grants.

During the years ended December 31, 2021, 2020 and 2019, the Company granted both equity-based and liability-based awards under the 2019 Incentive Plan. The fair value of equity-based awards is fixed at the grant date, while the fair value of liability-based awards is remeasured at each reporting period.

Stock Options

Under the 2012 Incentive Plan and the 2019 Incentive Plan, stock option awards have been granted and are outstanding to purchase the Company’s common stock at an exercise price equal to the fair market value on the date of grant, a typical vesting period of three or four years and a typical maximum term of five, six or 10 years. The 2012 Incentive Plan defines fair market value as the closing price of Matador’s common stock on the date of grant. Under the 2019 Incentive Plan, such fair market value of a stock option is determined using the closing price of Matador’s common stock on the trading day prior to the date of grant.


												2019
Stock option pricing model												Black Scholes Merton
Expected option life												4.00 years
Risk-free interest rate												1.46%
Volatility												48.52%
Dividend yield												—%
Estimated forfeiture rate												4.43%
Weighted average fair value of stock option awards granted during the year												$5.04

The Company estimated the future volatility of its common stock using the historical value of its stock for a period of time commensurate with the expected term of the stock option. The expected term was estimated using the simplified method outlined in Staff Accounting Bulletin Topic 14. The risk-free interest rate was the rate for constant yield U.S. Treasury securities with a term to maturity that was consistent with the expected term of the award.

Summarized information about stock options outstanding at December 31, 2021 under the 2012 Incentive Plan and the 2019 Incentive Plan (collectively, the “LTIPs”) is as follows.


	Number of options (in thousands)	Weighted average exercise price
Options outstanding at December 31, 2020	2,473	$	23.08
Options granted	—	$	—
Options exercised	(1,368)	$	25.37
Options forfeited	(37)	$	18.72
Options expired	(465)	$	16.90
Options outstanding at December 31, 2021	603	$	22.92


	Options outstanding at December 31, 2021				Options exercisable at December 31, 2021
Range of exercise prices	Shares outstanding (in thousands)	Weighted average remaining contractual life	Weighted average exercise price		Shares exercisable (in thousands)	Weighted average exercise price
$14.48 - $15.40	240	3.66	$	14.80	82	$	14.80

$26.86 - $29.68	363	1.59	$	28.28	363	$	28.28

At December 31, 2021, the aggregate intrinsic value for both outstanding and exercisable options was $4.9 million, based on the closing price of Matador’s common stock on the appropriate date under the LTIPs. The remaining weighted average contractual term of exercisable options at December 31, 2021 was 1.97 years.

The total intrinsic value of options exercised during the years ended December 31, 2021, 2020 and 2019 was $15.8 million, $0.3 million and $0.8 million, respectively. The tax related benefit realized from the exercise of stock options totaled $16.8 million, $1.4 million and $2.8 million for the years ended December 31, 2021, 2020 and 2019, respectively.

At December 31, 2021, the total remaining unrecognized compensation expense related to unvested stock options was approximately $0.5 million and the weighted average remaining requisite service period (vesting period) of all unvested stock options was 0.66 years.

The fair value of options vested during 2021, 2020 and 2019 was $3.0 million, $6.7 million and $9.7 million, respectively.

Service-Based Restricted Stock, Restricted Stock Units and Common Stock

The Company has granted stock, restricted stock and restricted stock unit awards to employees, consultants, outside directors and advisors of the Company under the LTIPs. The stock and restricted stock are issued upon grant, with the restrictions, if any, being removed upon vesting. The equity-based restricted stock units are issued upon vesting, unless the recipient makes an election to defer issuance for a set term after vesting. Liability-based restricted stock units are settled in cash upon vesting. Restricted stock and restricted stock units granted in 2021, 2020 and 2019 were service-based awards, which will settle in cash or equity, and vest over a one-year to three-year period. Performance-based restricted stock units granted in 2021 and 2020 vest in an amount between zero and 200% of the target units granted based on the Company’s relative total shareholder return over the three-year periods ending December 31, 2023 and 2022, respectively, as compared to a designated peer group, and will be settled in equity.

Equity-Based

A summary of the non-vested equity-based restricted stock and restricted stock units as of December 31, 2021 is presented below (in thousands, except fair value).


	Restricted Stock			Restricted Stock Units

	Service Based				Service Based			Performance Based
Non-vested restricted stock and restricted stock units	Shares	Weighted average fair value			Shares	Weighted average fair value		Shares	Weighted average fair value
Non-vested at December 31, 2020	682	$	20.01		75	$	8.85	1,069	$	9.05
Granted	283	$	37.56		36	$	30.97	366	$	50.53
Vested(1)	(334)	$	27.14		(78)	$	9.02	(397)	$	20.00
Forfeited	(42)	$	17.35		—	$	—	(75)	$	9.33
Non-vested at December 31, 2021	589	$	24.59		33	$	33.39	963	$	20.26

__________________

Liability-Based

A summary of the non-vested liability-based restricted stock units as of December 31, 2021 is presented below (in thousands).



Non-vested restricted stock units																														Shares
Non-vested at December 31, 2020																														1,319
Granted																														357
Vested																														(487)
Forfeited																														(87)
Non-vested at December 31, 2021																														1,102

The Company settled 487,252 liability-based awards for $12.4 million and 226,363 liability-based awards for $2.4 million in cash for the years ended December 31, 2021 and 2020, respectively. The Company did not settle any liability awards for the year ended December 31, 2019.

At December 31, 2021, the aggregate intrinsic value for the restricted stock and restricted stock units outstanding was $99.2 million, of which $40.7 million is expected to be settled in cash as calculated based on the maximum number of shares of restricted stock units vesting, based on the closing price of Matador’s common stock on the appropriate date under the LTIPs.

At December 31, 2021, the total remaining unrecognized compensation expense related to unvested restricted stock and restricted stock units was approximately $50.3 million, of which $24.0 million is expected to be settled in cash, based on the closing price of Matador’s common stock on the appropriate date under the LTIPs. The weighted average remaining requisite service period (vesting period) of all non-vested restricted stock and restricted stock units was 2.0 years.

The fair value of restricted stock and restricted stock units vested during 2021, 2020 and 2019 was $51.9 million, $8.4 million and $13.6 million, respectively.

Summary

During the years ended December 31, 2021, 2020 and 2019, the total expense attributable to stock options was $1.0 million, $3.4 million and $6.4 million, respectively. During the years ended December 31, 2021, 2020 and 2019, the total expense attributable to restricted stock and restricted stock units was $36.3 million, $17.7 million and $20.2 million, respectively. During the years ended December 31, 2021, 2020 and 2019, the Company capitalized $7.2 million, $3.6 million and $5.0 million, respectively, related to stock-based compensation and expensed the remaining $30.0 million, $17.6 million and $21.6 million, respectively.

The total tax benefit recognized for all stock-based compensation was $7.9 million, $4.5 million and $5.6 million for the years ended December 31, 2021, 2020 and 2019, respectively.