0001520006-22-000109 | 10-Q | XBRL Viewer

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DEBT - Credit Agreements (Details)	1 Months Ended	3 Months Ended
DEBT - Credit Agreements (Details)	Apr. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Third Amended Credit Agreement \| Subsequent Event \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Secured overnight financing rate, spread on variable rate	0.10%
Third Amended Credit Agreement \| Subsequent Event \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.75%
Third Amended Credit Agreement \| Subsequent Event \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate \| Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%
Third Amended Credit Agreement \| Subsequent Event \| Base Rate \| Minimum
Debt Instrument [Line Items]
Additional interest rate	1.75%
Third Amended Credit Agreement \| Subsequent Event \| Base Rate \| Maximum
Debt Instrument [Line Items]
Additional interest rate	2.75%
Revolving Credit Facility \| Third Amended Credit Agreement
Debt Instrument [Line Items]
Cash and cash equivalent limit		$ 75,000,000
EBITDA ratio		3.5
Revolving Credit Facility \| Third Amended Credit Agreement \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Maximum borrowing commitment			$ 50,000,000
Revolving Credit Facility \| Third Amended Credit Agreement \| Subsequent Event
Debt Instrument [Line Items]
Increase in borrowing base	$ 2,000,000,000
Maximum borrowing commitment	775,000,000
Maximum facility amount	1,500,000,000
Revolving Credit Facility \| Third Amended Credit Agreement \| Subsequent Event \| Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Maximum borrowing commitment	$ 100,000,000
Line of Credit \| San Mateo Credit Facility
Debt Instrument [Line Items]
Maximum borrowing commitment		$ 450,000,000
EBITDA ratio		5.0
Line of credit, accordian feature (up to)		$ 700,000,000
Consolidated interest expense, minimum		2.5
Liquidity restriction on cash distribution, percentage of lender commitments, less than		10.00%

ASSET RETIREMENT OBLIGATIONS

3 Months Ended

Mar. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONS

The following table summarizes the changes in the Company’s asset retirement obligations for the three months ended March 31, 2022 (in thousands).


Beginning asset retirement obligations	$	41,959
Liabilities incurred during period	817
Liabilities settled during period	(323)

Divestitures during period	(1,449)
Accretion expense	543
Ending asset retirement obligations	41,547
Less: current asset retirement obligations(1)	(282)
Long-term asset retirement obligations	$	41,265

_______________

(1)Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at March 31, 2022.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.05	$ 0.025
Contribution related to formation of San Mateo, net of tax	$ 4,800
Issuance of common stock pursuant to directors’ and advisors’ compensation plan		$ 0

SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Selected financial information for segments

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


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Three Months Ended March 31, 2022
Oil and natural gas revenues	$	624,793	$	1,722	$	—	$	—	$	626,515
Midstream services revenues	—		67,391		—		(50,085)		17,306
Sales of purchased natural gas	7,122		12,217		—		—		19,339

Realized loss on derivatives	(22,439)		—		—		—		(22,439)
Unrealized loss on derivatives	(75,029)		—		—		—		(75,029)
Expenses(1)	237,457		42,771		26,242		(50,085)		256,385
Operating income(2)	$	296,990	$	38,559	$	(26,242)	$	—	$	309,307






Total assets	$	3,596,773	$	894,560	$	75,995	$	—	$	4,567,328
Capital expenditures(3)	$	239,848	$	19,081	$	225	$	—	$	259,154

_____________________

(1)Includes depletion, depreciation and amortization expenses of $87.3 million and $8.0 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million.

(2)Includes $17.1 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.

(3)Includes $41.1 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $9.3 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment.


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

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






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

_____________________

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

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

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

EQUITY (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended
EQUITY (Details) $ / shares in Units, $ in Thousands	Dec. 14, 2021 $ / bbl	Apr. 30, 2022 $ / shares	Mar. 31, 2022 USD ($) $ / shares shares	Mar. 31, 2021 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared (in dollars per share) \| $ / shares			$ 0.05	$ 0.025
Cash dividend			$ 5,866	$ 2,913
Distributions			$ 18,375	14,210
Minimum \| Properties in Lea and Eddy, NM
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average oil and gas prices \| $ / bbl	75.00
Service-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares) \| shares			222,938
Performance-Based Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares) \| shares			230,251
Vesting period			3 years
Performance-Based Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting amount, percentage			0.00%
Performance-Based Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting amount, percentage			200.00%
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted in period (in shares) \| shares			205,156
Service-based Restricted Stock Units And Performance-Based Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of awards			$ 31,400
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared (in dollars per share) \| $ / shares		$ 0.05
San Mateo
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance incentives earned			22,800	15,400
Equity contribution, tax impact			4,800
Matador Resources Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Distributions			19,100	14,800
Five Point
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Distributions			$ 18,400	$ 14,200

NATURE OF OPERATIONS	3 Months Ended
NATURE OF OPERATIONS	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONSMatador 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.

BUSINESS COMBINATION (Details) - Properties in Lea and Eddy, NM $ in Thousands		3 Months Ended
	Dec. 14, 2021 USD ($) $ / bbl	Mar. 31, 2022 USD ($)
Asset Acquisition [Line Items]
Cash	$ 161,680
Working capital adjustments	(4,959)
Purchase price increase (decrease) due to average oil price	$ 5,000
Contingent consideration increase (decrease)		$ 7,800
Contingent consideration related to business combination		$ 16,000
Minimum
Asset Acquisition [Line Items]
Average oil and gas prices \| $ / bbl	75.00

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
INCOME TAXES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Current	$ 15,409	$ 0
Deferred	$ 53,119	$ 2,840
Effective tax rate	25.00%	4.00%

SUPPLEMENTAL DISCLOSURES - Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Disclosure Text Block Supplement [Abstract]
Cash	$ 63,001	$ 48,135	$ 17,924
Restricted cash	57,156	38,785	30,333
Total cash and restricted cash	$ 120,157	$ 86,920	$ 48,257	$ 91,383

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

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

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

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

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

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

The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of March 31, 2022 and December 31, 2021 (in thousands).


	Fair Value Measurements at March 31, 2022 using
Description	Level 1		Level 2		Level 3		Total
Assets (Liabilities)
Oil derivatives and basis swaps	$	—	$	(59,726)	$	—	$	(59,726)
Natural gas derivatives	—		(30,181)		—		(30,181)
Contingent consideration related to business combination	—		—		(16,029)		(16,029)
Total	$	—	$	(89,907)	$	(16,029)	$	(105,936)


	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)

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

Other Fair Value Measurements

At March 31, 2022 and December 31, 2021, the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses and other current assets, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners, income taxes payable and other current liabilities approximated their fair values due to their short-term maturities.

At March 31, 2022 and December 31, 2021, the carrying value of borrowings under the Credit Agreement and the San Mateo Credit Facility approximated their fair value as both are subject to short-term floating interest rates that reflect market rates available to the Company at the time and are classified at Level 2 in the fair value hierarchy.

At March 31, 2022 and December 31, 2021, the fair value of the Notes was $1.07 billion and $1.08 billion, respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy.

- Definition

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

+ References + Details

CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets
Cash	$ 63,001	$ 48,135
Restricted cash	57,156	38,785
Accounts receivable
Oil and natural gas revenues	269,499	164,242
Joint interest billings	79,056	48,366
Other	19,089	28,808
Derivative instruments	190	1,971
Lease and well equipment inventory	12,456	12,188
Prepaid expenses and other current assets	35,816	28,810
Total current assets	536,263	371,305
Oil and natural gas properties, full-cost method
Evaluated	6,208,109	6,007,325
Unproved and unevaluated	979,391	964,714
Midstream properties	919,948	900,979
Other property and equipment	30,502	30,123
Less accumulated depletion, depreciation and amortization	(4,142,309)	(4,046,456)
Net property and equipment	3,995,641	3,856,685
Other assets
Other long-term assets	35,424	34,163
Total assets	4,567,328	4,262,153
Current liabilities
Accounts payable	33,973	26,256
Accrued liabilities	221,840	253,283
Royalties payable	102,669	94,359
Amounts due to affiliates	20,497	27,324
Derivative instruments	90,097	16,849
Advances from joint interest owners	16,743	18,074
Income taxes payable	15,409	0
Other current liabilities	36,706	28,692
Total current liabilities	537,934	464,837
Long-term liabilities
Borrowings under Credit Agreement	50,000	100,000
Borrowings under San Mateo Credit Facility	405,000	385,000
Senior unsecured notes payable	1,042,975	1,042,580
Asset retirement obligations	41,265	41,689
Deferred income taxes	135,835	77,938
Other long-term liabilities	16,855	22,721
Total long-term liabilities	1,691,930	1,669,928
Commitments and contingencies
Shareholders’ equity
Common stock - $0.01 par value, 160,000,000 shares authorized; 118,090,652 and 117,861,923 shares issued; and 118,066,432 and 117,850,233 shares outstanding, respectively	1,181	1,179
Additional paid-in capital	2,087,788	2,077,592
Retained earnings (accumulated deficit)	29,940	(171,318)
Treasury stock, at cost, 24,220 and 11,945 shares, respectively	(309)	(243)
Total Matador Resources Company shareholders’ equity	2,118,600	1,907,210
Non-controlling interest in subsidiaries	218,864	220,178
Total shareholders’ equity	2,337,464	2,127,388
Total liabilities and shareholders’ equity	$ 4,567,328	$ 4,262,153

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2022

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


	Fair Value Measurements at March 31, 2022 using
Description	Level 1		Level 2		Level 3		Total
Assets (Liabilities)
Oil derivatives and basis swaps	$	—	$	(59,726)	$	—	$	(59,726)
Natural gas derivatives	—		(30,181)		—		(30,181)
Contingent consideration related to business combination	—		—		(16,029)		(16,029)
Total	$	—	$	(89,907)	$	(16,029)	$	(105,936)


	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)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Discount rate, present value of future revenue	10.00%
Full-cost ceiling impairment	$ 0
Deferred income tax benefit	(53,119)	$ (2,840)
Capitalized general and administrative costs	13,200	9,500
Interest costs capitalized	$ 3,500	$ 600
Options
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Antidilutive securities (in shares)		1,500,000

CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED (Parenthetical) - $ / shares	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	160,000,000	160,000,000
Common stock, shares issued (in shares)	118,090,652	117,861,923
Common stock, shares outstanding (in shares)	118,066,432	117,850,233
Treasury stock (in shares)	24,220	11,945

BUSINESS COMBINATION - Allocation Schedule (Details) - USD ($) $ in Thousands	Dec. 14, 2021	Mar. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Evaluated		$ 6,208,109	$ 6,007,325
Unproved and unevaluated		979,391	964,714
Advances from joint interest owners		$ (16,743)	$ (18,074)
Properties in Lea and Eddy, NM
Business Acquisition [Line Items]
Cash	$ 161,680
Working capital adjustments	(4,959)
Fair value of contingent consideration at December 14, 2021	6,718
Total consideration given	163,439
Evaluated	139,312
Unproved and unevaluated	31,745
Accrued liabilities	(360)
Advances from joint interest owners	(6,865)
Asset retirement obligations	(393)
Net assets acquired	$ 163,439

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues
Revenues	$ 663,160	$ 336,181
Realized loss on derivatives	(22,439)	(25,913)
Unrealized loss on derivatives	(75,029)	(43,423)
Total revenues	565,692	266,845
Expenses
Production taxes, transportation and processing	59,819	34,174
Lease operating	33,955	25,939
Purchased natural gas	17,021	2,855
Depletion, depreciation and amortization	95,853	74,863
Accretion of asset retirement obligations	543	500
General and administrative	29,733	22,188
Total expenses	256,385	174,182
Operating income	309,307	92,663
Other income (expense)
Net loss on asset sales and impairment	(198)	0
Interest expense	(16,252)	(19,650)
Other expense	(144)	(675)
Total other expense	(16,594)	(20,325)
Income before income taxes	292,713	72,338
Income tax provision
Current	15,409	0
Deferred	53,119	2,840
Total income tax provision	68,528	2,840
Net income	224,185	69,498
Net income attributable to non-controlling interest in subsidiaries	(17,061)	(8,853)
Net income attributable to Matador Resources Company shareholders	$ 207,124	$ 60,645
Earnings per common share
Basic (in dollars per share)	$ 1.76	$ 0.52
Diluted (in dollars per share)	$ 1.73	$ 0.51
Weighted average common shares outstanding
Basic (in shares)	117,951	116,807
Diluted (in shares)	119,814	118,669
Oil and natural gas revenues
Revenues
Revenues	$ 626,515	$ 316,233
Third-party midstream services revenues
Revenues
Revenues	17,306	15,438
Expenses
Plant and other midstream services operating	19,461	13,663
Sales of purchased natural gas
Revenues
Revenues	$ 19,339	$ 4,510

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

Disaggregation of revenue

The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three months ended March 31, 2022 and 2021 (in thousands).


	Three Months Ended March 31,
	2022		2021
Revenues from contracts with customers	$	663,160	$	336,181

Realized loss on derivatives	(22,439)		(25,913)
Unrealized loss on derivatives	(75,029)		(43,423)
Total revenues	$	565,692	$	266,845


	Three Months Ended March 31,
	2022		2021
Oil revenues	$	460,122	$	213,279
Natural gas revenues	166,393		102,954
Third-party midstream services revenues	17,306		15,438
Sales of purchased natural gas	19,339		4,510
Total revenues from contracts with customers	$	663,160	$	336,181

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

The following table sets forth the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2022 and 2021 (in thousands).


	Three Months Ended March 31,
	2022	2021
Weighted average common shares outstanding
Basic	117,951	116,807
Dilutive effect of options and restricted stock units	1,863	1,862
Diluted weighted average common shares outstanding	119,814	118,669

SEGMENT INFORMATION - Selected Financial Information for Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Segment Reporting Information [Line Items]
Revenues	$ 663,160	$ 336,181
Realized loss on derivatives	(22,439)	(25,913)
Unrealized loss on derivatives	(75,029)	(43,423)
Expenses	256,385	174,182
Operating (loss) income	309,307	92,663
Total assets	4,567,328	3,738,881	$ 4,262,153
Capital expenditures	259,154	144,771
Depletion, depreciation and amortization	95,853	74,863
Corporate
Segment Reporting Information [Line Items]
Realized loss on derivatives	0	0
Unrealized loss on derivatives	0	0
Expenses	26,242	19,962
Operating (loss) income	(26,242)	(19,962)
Total assets	75,995	26,400
Capital expenditures	225	133
Depletion, depreciation and amortization	600	700
Consolidations and Eliminations
Segment Reporting Information [Line Items]
Realized loss on derivatives	0	0
Unrealized loss on derivatives	0	0
Expenses	(50,085)	(28,471)
Operating (loss) income	0	0
Total assets	0	0
Capital expenditures	0	0
Exploration and Production \| Operating Segments
Segment Reporting Information [Line Items]
Realized loss on derivatives	(22,439)	(25,913)
Unrealized loss on derivatives	(75,029)	(43,423)
Expenses	237,457	156,444
Operating (loss) income	296,990	91,328
Total assets	3,596,773	2,881,242
Capital expenditures	239,848	134,865
Depletion, depreciation and amortization	87,300	66,400
Capital expenditures attributable to land and seismic acquisition expenditures	41,100	8,700
Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Realized loss on derivatives	0	0
Unrealized loss on derivatives	0	0
Expenses	42,771	26,247
Operating (loss) income	38,559	21,297
Total assets	894,560	831,239
Capital expenditures	19,081	9,773
Depletion, depreciation and amortization	8,000	7,800
Net income attributable to non-controlling interest in subsidiaries		(8,900)
Capital expenditures attributable to non-controlling interest	9,300	4,400
Operating Income (Loss) \| Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Net income attributable to non-controlling interest in subsidiaries	(17,100)
Oil and natural gas revenues
Segment Reporting Information [Line Items]
Revenues	626,515	316,233
Oil and natural gas revenues \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0
Oil and natural gas revenues \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0
Oil and natural gas revenues \| Exploration and Production \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	624,793	314,646
Oil and natural gas revenues \| Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	1,722	1,587
Midstream services revenues
Segment Reporting Information [Line Items]
Revenues	17,306	15,438
Midstream services revenues \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0
Midstream services revenues \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	(50,085)	(28,471)
Midstream services revenues \| Exploration and Production \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	0	0
Midstream services revenues \| Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	67,391	43,909
Sales of purchased natural gas
Segment Reporting Information [Line Items]
Revenues	19,339	4,510
Sales of purchased natural gas \| Corporate
Segment Reporting Information [Line Items]
Revenues	0	0
Sales of purchased natural gas \| Consolidations and Eliminations
Segment Reporting Information [Line Items]
Revenues	0	0
Sales of purchased natural gas \| Exploration and Production \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	7,122	2,462
Sales of purchased natural gas \| Midstream \| Operating Segments
Segment Reporting Information [Line Items]
Revenues	$ 12,217	$ 2,048

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Dec. 31, 2021
Senior Notes Due 2023 \| Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of notes	$ 1,070	$ 1,080

DEBT	3 Months Ended
DEBT	Mar. 31, 2022
Debt Disclosure [Abstract]
DEBT	DEBT At March 31, 2022, the Company had (i) $1.05 billion of outstanding senior notes due 2026 (the “Notes”), (ii) $50.0 million in borrowings outstanding under its reserves-based revolving credit facility (the “Credit Agreement”) and (iii) approximately $45.8 million in outstanding letters of credit issued pursuant to the Credit Agreement. Between March 31, 2022 and April 26, 2022, the Company repaid the remaining $50.0 million of borrowings under the Credit Agreement. During the first quarter of 2022, the $7.5 million unsecured U.S. Small Business Administration loan was forgiven under the terms of the loan agreement and recorded as a gain on the extinguishment of debt within “Other expense” on the unaudited condensed consolidated statement of operations. At March 31, 2022, San Mateo had $405.0 million in borrowings outstanding under its revolving credit facility (the “San Mateo Credit Facility”) and approximately $9.0 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Between March 31, 2022 and April 26, 2022, San Mateo repaid $30.0 million of borrowings under the San Mateo Credit Facility. Credit Agreements MRC Energy Company The borrowing base under the Credit Agreement is determined semi-annually as of May 1 and November 1 by the lenders based primarily on the estimated value of the Company’s proved oil and natural gas reserves at December 31 and June 30 of each year, respectively. The Company and the lenders may each request an unscheduled redetermination of the borrowing base once between scheduled redetermination dates. In April 2022, the lenders completed their review of the Company’s proved oil and natural gas reserves, and, as a result, the borrowing base was increased to $2.0 billion, the borrowing commitment was increased to $775.0 million and the maximum facility amount remained $1.5 billion. In addition, the terms of the Credit Agreement were amended to increase the sublimit for issuances of letters of credit under the Credit Agreement from $50 million to $100 million and replace the London Interbank Offered Rate (“LIBOR”) interest rate benchmark with an Adjusted Term SOFR (as defined in the Credit Agreement) interest rate benchmark. After giving effect to the amendment to the Credit Agreement, the applicable interest rate margin for borrowings under the Credit Agreement ranges from 1.75% to 2.75% per annum for borrowings bearing interest with reference to the Adjusted Term SOFR and from 0.75% to 1.75% per annum for borrowings bearing interest with reference to the Alternate Base Rate (as defined in the Credit Agreement), in each case depending on the level of borrowings under the Credit Agreement. In addition, the Adjusted Term SOFR includes a credit spread adjustment of 0.10% per annum for all interest periods. This April 2022 redetermination constituted the regularly scheduled May 1 redetermination. Borrowings under the Credit Agreement are limited to the lowest of the borrowing base, the maximum facility amount and the elected commitment (subject to compliance with the covenant noted below). The Credit Agreement matures October 31, 2026. 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 $75.0 million of cash or cash equivalents), divided by a rolling four quarter EBITDA calculation, of 3.5 to 1.0 or less. The Company believes that it was in compliance with the terms of the Credit Agreement at March 31, 2022. San Mateo Midstream, LLC The San Mateo Credit Facility is non-recourse with respect to Matador and its wholly-owned subsidiaries but is guaranteed by San Mateo’s subsidiaries and secured by substantially all of San Mateo’s assets, including real property. The San Mateo Credit Facility matures December 19, 2023 and lender commitments under the revolving credit facility were $450.0 million at March 31, 2022 (subject to San Mateo’s compliance with the covenants noted below). The San Mateo Credit Facility includes an accordion feature, which provides for potential increases in lender commitments to up to $700.0 million. 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 5.0 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 2.5 or more. The San Mateo Credit Facility also restricts the ability of San Mateo to distribute cash to its members if San Mateo’s liquidity is less than 10% of the lender commitments under the San Mateo Credit Facility. The Company believes that San Mateo was in compliance with the terms of the San Mateo Credit Facility at March 31, 2022. Senior Unsecured Notes At March 31, 2022, the Company had $1.05 billion of outstanding Notes, which have a 5.875% coupon rate. The Notes mature September 15, 2026, and interest is payable on the Notes semi-annually in arrears on each March 15 and September 15. The Notes are guaranteed on a senior unsecured basis by certain subsidiaries of the Company.

- 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
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-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
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-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
-Paragraph 1B
-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
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-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
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-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
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

SUPPLEMENTAL DISCLOSURES

3 Months Ended

Mar. 31, 2022

Disclosure Text Block Supplement [Abstract]

SUPPLEMENTAL DISCLOSURES

Accrued Liabilities

The following table summarizes the Company’s current accrued liabilities at March 31, 2022 and December 31, 2021 (in thousands).


	March 31, 2022		December 31, 2021
Accrued evaluated and unproved and unevaluated property costs	$	114,931	$	128,598
Accrued midstream properties costs	14,897		7,799


Accrued lease operating expenses	34,681		32,182
Accrued interest on debt	2,764		18,232
Accrued asset retirement obligations	282		270
Accrued partners’ share of joint interest charges	28,810		17,460

Accrued payable related to purchased natural gas	6,473		11,284
Other	19,002		37,458
Total accrued liabilities	$	221,840	$	253,283

Supplemental Cash Flow Information

The following table provides supplemental disclosures of cash flow information for the three months ended March 31, 2022 and 2021 (in thousands).


	Three Months Ended March 31,
	2022		2021

Cash paid for interest expense, net of amounts capitalized	$	31,650	$	35,085
(Decrease) increase in asset retirement obligations related to mineral properties	$	(955)	$	105

(Decrease) increase in liabilities for drilling, completion and equipping capital expenditures	$	(10,969)	$	40,067
(Decrease) increase in liabilities for acquisition of oil and natural gas properties	$	(2,689)	$	2,031
Increase (decrease) in liabilities for midstream properties capital expenditures	$	7,098	$	(6,691)



Stock-based compensation expense recognized as a liability	$	13,612	$	7,249


Transfer of inventory to oil and natural gas properties	$	(190)	$	(574)

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


	Three Months Ended March 31,
	2022		2021
Cash	$	63,001	$	17,924
Restricted cash	57,156		30,333
Total cash and restricted cash	$	120,157	$	48,257

SUPPLEMENTAL DISCLOSURES - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Condensed Cash Flow Statements, Captions [Line Items]
Cash paid for interest expense, net of amounts capitalized	$ 31,650	$ 35,085
(Decrease) increase in liabilities for drilling, completion and equipping capital expenditures	(10,969)	40,067
(Decrease) increase in liabilities for acquisition of oil and natural gas properties	(2,689)	2,031
Increase (decrease) in liabilities for midstream properties capital expenditures	7,098	(6,691)
Stock-based compensation expense recognized as a liability	13,612	7,249
Transfer of inventory to oil and natural gas properties	(190)	(574)
Mineral Properties
Condensed Cash Flow Statements, Captions [Line Items]
Increase in asset retirement obligations	$ (955)	$ 105

DEBT - Borrowings (Details) - USD ($) $ in Thousands	Apr. 26, 2022	Mar. 31, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Line of credit facility		$ 50,000	$ 100,000
Borrowings under San Mateo Credit Facility		405,000	$ 385,000
Credit Agreement
Line of Credit Facility [Line Items]
Line of credit facility		50,000
Unsecured Debt \| Senior Notes Due 2026
Line of Credit Facility [Line Items]
Long-term debt outstanding		1,050,000
Unsecured Debt \| SBA Loan, CARES Act
Line of Credit Facility [Line Items]
Long-term debt outstanding		7,500
Letter of Credit \| Credit Agreement
Line of Credit Facility [Line Items]
Outstanding letters of credit		45,800
Letter of Credit \| Credit Agreement \| Subsequent Event
Line of Credit Facility [Line Items]
Repayments of debt	$ 50,000
Line of Credit \| San Mateo Credit Facility
Line of Credit Facility [Line Items]
Borrowings under San Mateo Credit Facility		405,000
Outstanding letters of credit		$ 9,000
Line of Credit \| San Mateo Credit Facility \| Subsequent Event
Line of Credit Facility [Line Items]
Repayments of debt	$ 30,000

SUPPLEMENTAL DISCLOSURES (Tables)

3 Months Ended

Mar. 31, 2022

Disclosure Text Block Supplement [Abstract]

Summary of current accrued liabilities

The following table summarizes the Company’s current accrued liabilities at March 31, 2022 and December 31, 2021 (in thousands).


	March 31, 2022		December 31, 2021
Accrued evaluated and unproved and unevaluated property costs	$	114,931	$	128,598
Accrued midstream properties costs	14,897		7,799


Accrued lease operating expenses	34,681		32,182
Accrued interest on debt	2,764		18,232
Accrued asset retirement obligations	282		270
Accrued partners’ share of joint interest charges	28,810		17,460

Accrued payable related to purchased natural gas	6,473		11,284
Other	19,002		37,458
Total accrued liabilities	$	221,840	$	253,283

Supplemental disclosures of cash flow information

The following table provides supplemental disclosures of cash flow information for the three months ended March 31, 2022 and 2021 (in thousands).


	Three Months Ended March 31,
	2022		2021

Cash paid for interest expense, net of amounts capitalized	$	31,650	$	35,085
(Decrease) increase in asset retirement obligations related to mineral properties	$	(955)	$	105

(Decrease) increase in liabilities for drilling, completion and equipping capital expenditures	$	(10,969)	$	40,067
(Decrease) increase in liabilities for acquisition of oil and natural gas properties	$	(2,689)	$	2,031
Increase (decrease) in liabilities for midstream properties capital expenditures	$	7,098	$	(6,691)



Stock-based compensation expense recognized as a liability	$	13,612	$	7,249


Transfer of inventory to oil and natural gas properties	$	(190)	$	(574)


	Three Months Ended March 31,
	2022		2021
Cash	$	63,001	$	17,924
Restricted cash	57,156		30,333
Total cash and restricted cash	$	120,157	$	48,257

SUPPLEMENTAL DISCLOSURES - Summary of Current Accrued Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	$ 221,840	$ 253,283
Accrued evaluated and unproved and unevaluated property costs
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	114,931	128,598
Accrued midstream properties costs
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	14,897	7,799
Accrued lease operating expenses
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	34,681	32,182
Accrued interest on debt
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	2,764	18,232
Accrued asset retirement obligations
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	282	270
Accrued partners’ share of joint interest charges
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	28,810	17,460
Accrued payable related to purchased natural gas
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	6,473	11,284
Other
Condensed Balance Sheet Statements, Captions [Line Items]
Total accrued liabilities	$ 19,002	$ 37,458

SEGMENT INFORMATION - Narrative (Details)	3 Months Ended
SEGMENT INFORMATION - Narrative (Details)	Mar. 31, 2022 segment
Segment Reporting [Abstract]
Number of segments	2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliations of Basic and Diluted Distributed and Undistributed Earnings (Loss) Per Common Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Weighted average common shares outstanding
Basic (in shares)	117,951	116,807
Dilutive effect of options and restricted stock units (in shares)	1,863	1,862
Diluted weighted average common shares outstanding (in shares)	119,814	118,669

DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Location and Aggregate Fair Value of All Derivative Financial Instruments Recorded in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Derivative Instrument
Realized loss on derivatives	$ (22,439)	$ (25,913)
Unrealized loss on derivatives	(75,029)	(43,423)
Total	(97,468)	(69,336)
Revenues
Derivative Instrument
Realized loss on derivatives	(22,439)	(25,913)
Unrealized loss on derivatives	(75,029)	(43,423)
Oil \| Revenues
Derivative Instrument
Realized loss on derivatives	(18,166)	(26,075)
Unrealized loss on derivatives	(44,999)	(39,269)
Natural Gas \| Revenues
Derivative Instrument
Realized loss on derivatives	(4,273)	162
Unrealized loss on derivatives	$ (30,030)	$ (4,154)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED - USD ($) $ in Thousands	Total	Total shareholders’ equity attributable to Matador Resources Company	Common Stock	Additional paid-in capital	Retained earnings (accumulated deficit)	Treasury Stock	Non-controlling interest in subsidiaries
Balance at beginning of period (in shares) at Dec. 31, 2020			116,847,000			2,000
Balance at beginning of period at Dec. 31, 2020	$ 1,513,025	$ 1,286,530	$ 1,169	$ 2,027,069	$ (741,705)	$ (3)	$ 226,495
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(2,913)	(2,913)			(2,913)
Issuance of common stock pursuant to employee stock compensation plan (in shares)			3,000
Issuance of common stock pursuant to employee stock compensation plan	0
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares)			9,000
Issuance of common stock pursuant to directors’ and advisors’ compensation plan	0
Stock-based compensation expense related to equity-based awards including amounts capitalized	1,477	1,477		$ 1,477
Stock options exercised, net of options forfeited in net share settlements (in shares)			13,000
Stock options exercised, net of options forfeited in net share settlements	0
Restricted stock forfeited (in shares)				(219,000)		(90,000)
Restricted stock forfeited	(1,720)	(1,720)				$ (1,501)
Contribution related to formation of San Mateo	15,376	15,376		$ 15,376
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries	(14,210)						(14,210)
Current period net (loss) income	69,498	60,645			60,645		8,853
Balance at end of period (in shares) at Mar. 31, 2021			116,872,000			92,000
Balance at end of period at Mar. 31, 2021	$ 1,580,533	1,359,395	$ 1,169	2,043,703	(683,973)	$ (1,504)	221,138
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.025
Balance at beginning of period (in shares) at Dec. 31, 2021	117,850,233		117,862,000			12,000
Balance at beginning of period at Dec. 31, 2021	$ 2,127,388	1,907,210	$ 1,179	2,077,592	(171,318)	$ (243)	220,178
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(5,866)	(5,866)			(5,866)
Issuance of common stock pursuant to employee stock compensation plan (in shares)			205,000
Issuance of common stock pursuant to employee stock compensation plan		(11,534)	$ 2	(11,536)
Issuance of common stock pursuant to employee stock compensation plan	(11,534)
Stock-based compensation expense related to equity-based awards including amounts capitalized	4,344	4,344		4,344
Stock options exercised, net of options forfeited in net share settlements	(585)	(585)		(585)
Stock options exercised, net of options forfeited in net share settlements (in shares)			24,000
Restricted stock forfeited (in shares)						(12,000)
Restricted stock forfeited	(66)	(66)				$ (66)
Contribution related to formation of San Mateo, net of tax	4,800
Contribution related to formation of San Mateo	17,973	17,973		17,973
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries	(18,375)						(18,375)
Current period net (loss) income	$ 224,185	207,124			207,124		17,061
Balance at end of period (in shares) at Mar. 31, 2022	118,066,432		118,091,000			24,000
Balance at end of period at Mar. 31, 2022	$ 2,337,464	$ 2,118,600	$ 1,181	$ 2,087,788	$ 29,940	$ (309)	$ 218,864
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared (in dollars per share)	$ 0.05

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Processing, Transportation and Produced Water Disposal Commitments Firm Commitments From time to time, the Company enters into agreements with third parties whereby the Company commits to deliver anticipated natural gas and oil production and produced water from certain portions of its acreage for transportation, gathering, processing, fractionation, sales and disposal. The Company paid approximately $11.0 million and $12.6 million for deliveries under these agreements during the three months ended March 31, 2022 and 2021, respectively. Certain of these agreements contain minimum volume commitments. If the Company does not meet the minimum volume commitments under these agreements, it will be required to pay certain deficiency fees. If the Company ceased operations in the areas subject to these agreements at March 31, 2022, the total deficiencies required to be paid by the Company under these agreements would be approximately $552.1 million. San Mateo Commitments The Company dedicated to San Mateo its current and certain future leasehold interests in the Rustler Breaks and Wolf asset areas and acreage in the southern portion of the Arrowhead asset area (the “Greater Stebbins Area”) and the Stateline asset area pursuant to 15-year, fixed-fee oil transportation, oil, natural gas and produced water gathering and produced water disposal agreements. In addition, the Company dedicated to San Mateo its current and certain future leasehold interests in the Rustler Breaks asset area and acreage in the Greater Stebbins Area and Stateline asset area pursuant to 15-year, fixed-fee natural gas processing agreements (collectively with the transportation, gathering and produced water disposal agreements, the “Operational Agreements”). San Mateo provides the Company with firm service under each of the Operational Agreements in exchange for certain minimum volume commitments. The remaining minimum contractual obligation under the Operational Agreements at March 31, 2022 was approximately $351.7 million. Legal Proceedings The Company is a party to several legal proceedings encountered in the ordinary course of its business. While the ultimate outcome and impact on the Company cannot be predicted with certainty, in the opinion of management, it is remote that these legal proceedings will have a material adverse impact on the Company’s financial condition, results of operations or cash flows.

BUSINESS COMBINATION (Tables)

3 Months Ended

Mar. 31, 2022

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			(4,959)
Fair value of contingent consideration at December 14, 2021			6,718
Total consideration given			$163,439

Allocation of purchase price
Oil and natural gas properties
Evaluated			$139,312
Unproved and unevaluated			31,745
Accrued liabilities			(360)
Advances from joint interest owners			(6,865)
Asset retirement obligations			(393)
Net assets acquired			$163,439

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions		3 Months Ended
	Feb. 17, 2017	Mar. 31, 2022	Mar. 31, 2021
Delivery Of Natural Gas And Oil Production To Third Parties
Long-term Purchase Commitment [Line Items]
Payment for volume requirement agreement		$ 11.0	$ 12.6
Volume requirement commitment		552.1
Rustler Breaks and Wolf Asset Area \| Corporate Joint Venture \| San Mateo Midstream
Long-term Purchase Commitment [Line Items]
Term of contractual obligation	15 years
Rustler Breaks Asset Area \| Corporate Joint Venture \| San Mateo Midstream
Long-term Purchase Commitment [Line Items]
Term of contractual obligation	15 years
Operational Agreements \| San Mateo Midstream
Long-term Purchase Commitment [Line Items]
Contractual obligation		$ 351.7

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2022
Accounting Policies [Abstract]
Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates	Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification, Consolidation (Topic 810). The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of March 31, 2022. Amounts as of December 31, 2021 are derived from the Company’s audited consolidated financial statements included in the Annual Report. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates.
Property and Equipment	Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12-month period. For both the three months ended March 31, 2022 and 2021, the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary.
Earnings Per Common Share	Earnings Per Common Share The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive.
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.

DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Contracts for Oil and Natural Gas (Details) $ in Thousands	Mar. 31, 2022 USD ($) bbl $ / bbl
Open costless collar contracts
Summary of contracts for oil and natural gas
Fair Value of Asset (Liability) \| $	$ (89,933)
Open Basis Swap Contracts
Summary of contracts for oil and natural gas
Fair Value of Asset (Liability) \| $	$ 26
Derivative Contract, Calculation Period One \| Open costless collar contracts \| Oil
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	8,100,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) \| $ / bbl	65.22
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) \| $ / bbl	110.49
Fair Value of Asset (Liability) \| $	$ (59,752)
Derivative Contract, Calculation Period One \| Open costless collar contracts \| Natural Gas
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	42,000,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) \| $ / bbl	3.13
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) \| $ / bbl	5.73
Fair Value of Asset (Liability) \| $	$ (30,181)
Derivative Contract, Calculation Period One \| Open Basis Swap Contracts \| Oil Basis
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) \| bbl	4,140,000
Fair Value of Asset (Liability) \| $	$ 26
Fixed Price ($/Bbl) \| $ / bbl	0.95

INCOME TAXES	3 Months Ended
INCOME TAXES	Mar. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe Company recorded a current income tax provision of $15.4 million and a deferred income tax provision of $53.1 million for the three months ended March 31, 2022. The Company’s effective income tax rate of 25% for the three months ended March 31, 2022 differed from the U.S. federal statutory rate due primarily to permanent differences between book and tax income and state taxes, primarily in New Mexico.The Company recorded an income tax provision of $2.8 million for the three months ended March 31, 2021, which resulted in an effective tax rate of 4%. The effective tax rate differed from amounts computed by applying the U.S. federal statutory rate to the pre-tax income due primarily to recording a net deferred tax liability for state taxes, primarily in New Mexico, and continuing to recognize a valuation allowance against our U.S. federal net deferred tax assets. As a result of the full-cost ceiling impairments recorded in 2020, the Company recognized a valuation allowance against its net deferred tax assets for the year ended December 31, 2020. Due to a variety of factors, including the Company’s significant net income during 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.

- 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
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Gross Asset Balances of Derivative Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Liability Balances of Derivative Instruments
Total	$ (89,907)	$ (14,878)
Total, Gross amounts netted in the condensed consolidated balance sheets	0	0
Total, Net amounts presented in the condensed consolidated balance sheets	(89,907)	(14,878)
Current assets
Asset Balances of Derivative Insruments
Gross amounts recognized	245,400	215,145
Gross amounts netted in the condensed consolidated balance sheets	(245,210)	(213,174)
Net amounts presented in the condensed consolidated balance sheets	190	1,971
Current liabilities
Liability Balances of Derivative Instruments
Gross amounts recognized	(335,307)	(230,023)
Gross amounts netted in the condensed consolidated balance sheets	245,210	213,174
Net amounts presented in the condensed consolidated balance sheets	$ (90,097)	$ (16,849)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of contracts for oil and natural gas

The following is a summary of the Company’s open costless collar contracts for oil and natural gas at March 31, 2022.


Commodity	Calculation Period	Notional Quantity (Bbl or MMBtu)	Weighted Average Price Floor ($/Bbl or $/MMBtu)		Weighted Average Price Ceiling ($/Bbl or $/MMBtu)		Fair Value of Asset (Liability) (thousands)
Oil	04/01/2022 - 12/31/2022	8,100,000	$	65.22	$	110.49	$	(59,752)
Natural Gas	04/01/2022 - 12/31/2022	42,000,000	$	3.13	$	5.73	(30,181)


Total open costless collar contracts							$	(89,933)

The following is a summary of the Company’s open basis swap contracts for oil at March 31, 2022.


Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil Basis	04/01/2022 - 12/31/2022	4,140,000	$	0.95	$	26

Total open basis swap contracts					$	26

Summary of gross asset balances of derivative instruments

The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021 (in thousands).


Derivative Instruments	Gross amounts recognized		Gross amounts netted in the condensed consolidated balance sheets		Net amounts presented in the condensed consolidated balance sheets
March 31, 2022
Current assets	$	245,400	$	(245,210)	$	190

Current liabilities	(335,307)		245,210		(90,097)

Total	$	(89,907)	$	—	$	(89,907)
December 31, 2021
Current assets	$	215,145	$	(213,174)	$	1,971

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

Total	$	(14,878)	$	—	$	(14,878)

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

The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands).


		Three Months Ended March 31,
Type of Instrument	Location in Condensed Consolidated Statement of Operations	2022		2021
Derivative Instrument
Oil	Revenues: Realized loss on derivatives	$	(18,166)	$	(26,075)
Natural Gas	Revenues: Realized (loss) gain on derivatives	(4,273)		162

Realized loss on derivatives		(22,439)		(25,913)
Oil	Revenues: Unrealized loss on derivatives	(44,999)		(39,269)
Natural Gas	Revenues: Unrealized loss on derivatives	(30,030)		(4,154)

Unrealized loss on derivatives		(75,029)		(43,423)
Total		$	(97,468)	$	(69,336)

BUSINESS COMBINATION

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Delaware Basin Leasehold and Mineral Acres Acquisitions

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, subject to certain customary post-closing 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 expense” in its unaudited condensed consolidated statements of operations. The fair value of the contingent consideration increased $7.8 million between December 31, 2021 and March 31, 2022 to an estimated fair value of $16.0 million as of March 31, 2022. 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 8 for discussion of the fair value hierarchy).


Consideration given			Allocation
Cash			$161,680
Working capital adjustments			(4,959)
Fair value of contingent consideration at December 14, 2021			6,718
Total consideration given			$163,439

Allocation of purchase price
Oil and natural gas properties
Evaluated			$139,312
Unproved and unevaluated			31,745
Accrued liabilities			(360)
Advances from joint interest owners			(6,865)
Asset retirement obligations			(393)
Net assets acquired			$163,439

DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

At March 31, 2022, the Company had various costless collar and swap contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling for the collars and fixed price for the swaps. At March 31, 2022, each contract was set to expire at varying times during 2022. The Company had no open contracts associated with natural gas liquids (“NGL”) prices at March 31, 2022.

The following is a summary of the Company’s open costless collar contracts for oil and natural gas at March 31, 2022.


Commodity	Calculation Period	Notional Quantity (Bbl or MMBtu)	Weighted Average Price Floor ($/Bbl or $/MMBtu)		Weighted Average Price Ceiling ($/Bbl or $/MMBtu)		Fair Value of Asset (Liability) (thousands)
Oil	04/01/2022 - 12/31/2022	8,100,000	$	65.22	$	110.49	$	(59,752)
Natural Gas	04/01/2022 - 12/31/2022	42,000,000	$	3.13	$	5.73	(30,181)


Total open costless collar contracts							$	(89,933)

The following is a summary of the Company’s open basis swap contracts for oil at March 31, 2022.


Commodity	Calculation Period	Notional Quantity (Bbl)	Fixed Price ($/Bbl)		Fair Value of Asset (Liability) (thousands)
Oil Basis	04/01/2022 - 12/31/2022	4,140,000	$	0.95	$	26

Total open basis swap contracts					$	26

At March 31, 2022, the aggregate liability value for the Company’s open derivative financial instruments was $89.9 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 interim unaudited condensed consolidated balance sheets.


Derivative Instruments	Gross amounts recognized		Gross amounts netted in the condensed consolidated balance sheets		Net amounts presented in the condensed consolidated balance sheets
March 31, 2022
Current assets	$	245,400	$	(245,210)	$	190

Current liabilities	(335,307)		245,210		(90,097)

Total	$	(89,907)	$	—	$	(89,907)
December 31, 2021
Current assets	$	215,145	$	(213,174)	$	1,971

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

Total	$	(14,878)	$	—	$	(14,878)


		Three Months Ended March 31,
Type of Instrument	Location in Condensed Consolidated Statement of Operations	2022		2021
Derivative Instrument
Oil	Revenues: Realized loss on derivatives	$	(18,166)	$	(26,075)
Natural Gas	Revenues: Realized (loss) gain on derivatives	(4,273)		162

Realized loss on derivatives		(22,439)		(25,913)
Oil	Revenues: Unrealized loss on derivatives	(44,999)		(39,269)
Natural Gas	Revenues: Unrealized loss on derivatives	(30,030)		(4,154)

Unrealized loss on derivatives		(75,029)		(43,423)
Total		$	(97,468)	$	(69,336)

EQUITY	3 Months Ended
EQUITY	Mar. 31, 2022
Equity [Abstract]
EQUITY	EQUITY Stock-based Compensation During the three months ended March 31, 2022, the Company granted awards to certain of its employees of 222,938 service-based restricted stock units to be settled in cash, which are liability instruments, and 230,251 performance-based stock units and 205,156 service-based shares of restricted stock, which are equity instruments. The performance-based stock units 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 period ending December 31, 2024, as compared to a designated peer group. The service-based restricted stock and restricted stock units vest over a three-year period. The fair value of these awards was approximately $31.4 million on the grant date. Common Stock Dividend During the three months ended March 31, 2022, the Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.05 per share of common stock. The dividend, which totaled $5.9 million, was paid on March 14, 2022. In April 2022, the Board declared a quarterly cash dividend of $0.05 per share of common stock payable on June 3, 2022 to shareholders of record as of May 18, 2022. San Mateo Distributions and Contributions During the three months ended March 31, 2022 and 2021, San Mateo distributed $19.1 million and $14.8 million, respectively, to the Company and $18.4 million and $14.2 million, respectively, to a subsidiary of Five Point Energy LLC (“Five Point”), the Company’s joint venture partner in San Mateo. During the three months ended March 31, 2022 and 2021, there were no contributions to San Mateo by either the Company or Five Point. Performance Incentives Five Point paid to the Company $22.8 million and $15.4 million in performance incentives during the three months ended March 31, 2022 and 2021, respectively. These performance incentives are recorded when received, net of the $4.8 million deferred tax impact to Matador for the three months ended March 31, 2022, in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheets. These performance incentives for the three months ended March 31, 2022 and 2021 are also denoted as “Contributions related to formation of San Mateo” under “Financing activities” in the Company’s interim unaudited condensed consolidated statements of cash flows and changes in shareholders’ equity.

- 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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Operating activities
Net income	$ 224,185	$ 69,498
Adjustments to reconcile net income to net cash provided by operating activities
Unrealized loss on derivatives	75,029	43,423
Depletion, depreciation and amortization	95,853	74,863
Accretion of asset retirement obligations	543	500
Stock-based compensation expense	3,014	855
Deferred income tax provision	53,119	2,840
Amortization of debt issuance cost	943	724
Net loss on asset sales and impairment	198	0
Changes in operating assets and liabilities
Accounts receivable	(125,345)	(39,680)
Lease and well equipment inventory	(78)	112
Prepaid expenses and other current assets	(7,796)	(802)
Other long-term assets	97	19
Accounts payable, accrued liabilities and other current liabilities	(5,668)	8,560
Royalties payable	8,311	5,741
Advances from joint interest owners	(1,331)	2,809
Income taxes payable	15,409	0
Other long-term liabilities	(7,529)	(67)
Net cash provided by operating activities	328,954	169,395
Investing activities
Drilling, completion and equipping capital expenditures	(207,829)	(85,986)
Acquisition of oil and natural gas properties	(43,761)	(6,676)
Midstream capital expenditures	(11,992)	(16,380)
Expenditures for other property and equipment	(225)	(133)
Proceeds from sale of assets	11,911	280
Net cash used in investing activities	(251,896)	(108,895)
Financing activities
Repayments of borrowings under Credit Agreement	(210,000)	(100,000)
Borrowings under Credit Agreement	160,000	0
Repayments of borrowings under San Mateo Credit Facility	(30,000)	(11,000)
Borrowings under San Mateo Credit Facility	50,000	11,000
Dividends paid	(5,866)	(2,913)
Contributions related to formation of San Mateo	22,750	15,376
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries	(18,375)	(14,210)
Taxes paid related to net share settlement of stock-based compensation	(12,184)	(1,721)
Other	(146)	(158)
Net cash used in financing activities	(43,821)	(103,626)
Increase (decrease) in cash and restricted cash	33,237	(43,126)
Cash and restricted cash at beginning of period	86,920	91,383
Cash and restricted cash at end of period	$ 120,157	$ 48,257

ASSET RETIREMENT OBLIGATIONS (Tables)

3 Months Ended

Mar. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

Schedule of changes in Company's asset retirement obligations

The following table summarizes the changes in the Company’s asset retirement obligations for the three months ended March 31, 2022 (in thousands).


Beginning asset retirement obligations	$	41,959
Liabilities incurred during period	817
Liabilities settled during period	(323)

Divestitures during period	(1,449)
Accretion expense	543
Ending asset retirement obligations	41,547
Less: current asset retirement obligations(1)	(282)
Long-term asset retirement obligations	$	41,265

_______________

(1)Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at March 31, 2022.

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company operates in two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is currently focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. The midstream segment conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties. Substantially all of the Company’s midstream operations in the Rustler Breaks, Wolf and Stateline asset areas and the Greater Stebbins Area in the Delaware Basin, which comprise most of the Company’s midstream operations, are conducted through San Mateo. San Mateo and its subsidiaries are not guarantors of the Notes.


	Exploration and Production						Consolidations and Eliminations		Consolidated Company
			Midstream		Corporate
Three Months Ended March 31, 2022
Oil and natural gas revenues	$	624,793	$	1,722	$	—	$	—	$	626,515
Midstream services revenues	—		67,391		—		(50,085)		17,306
Sales of purchased natural gas	7,122		12,217		—		—		19,339

Realized loss on derivatives	(22,439)		—		—		—		(22,439)
Unrealized loss on derivatives	(75,029)		—		—		—		(75,029)
Expenses(1)	237,457		42,771		26,242		(50,085)		256,385
Operating income(2)	$	296,990	$	38,559	$	(26,242)	$	—	$	309,307






Total assets	$	3,596,773	$	894,560	$	75,995	$	—	$	4,567,328
Capital expenditures(3)	$	239,848	$	19,081	$	225	$	—	$	259,154

_____________________

(2)Includes $17.1 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment.


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

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






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

_____________________

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

- 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.

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+ Details

DEBT - Senior Unsecured Notes (Details) - Senior Notes $ in Millions	Mar. 31, 2022 USD ($)
Senior Notes Due 2026
Debt Instrument [Line Items]
Long-term debt outstanding	$ 1,050
2026 Notes Offering
Debt Instrument [Line Items]
Interest rate	5.875%

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 663,160	$ 336,181
Realized loss on derivatives	(22,439)	(25,913)
Unrealized loss on derivatives	(75,029)	(43,423)
Total revenues	565,692	266,845
Oil revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	460,122	213,279
Natural gas revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	166,393	102,954
Third-party midstream services revenues
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	17,306	15,438
Sales of purchased natural gas
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 19,339	$ 4,510

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

FAIR VALUE MEASUREMENTS - Summary of the Valuation of the Company's Financial Assets and Liabilities that were Accounted for at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets (Liabilities)
Total	$ (89,907)	$ (14,878)
Fair value on a recurring basis
Assets (Liabilities)
Contingent consideration related to business combination	(16,029)	(8,203)
Total	(105,936)	(23,081)
Fair value on a recurring basis \| Oil derivatives and basis swaps
Assets (Liabilities)
Derivative liability	(59,726)	(14,727)
Fair value on a recurring basis \| Natural gas derivatives
Assets (Liabilities)
Derivative liability	(30,181)	(151)
Fair value on a recurring basis \| Level 1
Assets (Liabilities)
Contingent consideration related to business combination	0	0
Total	0	0
Fair value on a recurring basis \| Level 1 \| Oil derivatives and basis swaps
Assets (Liabilities)
Derivative liability	0	0
Fair value on a recurring basis \| Level 1 \| Natural gas derivatives
Assets (Liabilities)
Derivative liability	0	0
Fair value on a recurring basis \| Level 2
Assets (Liabilities)
Contingent consideration related to business combination	0	0
Total	(89,907)	(14,878)
Fair value on a recurring basis \| Level 2 \| Oil derivatives and basis swaps
Assets (Liabilities)
Derivative liability	(59,726)	(14,727)
Fair value on a recurring basis \| Level 2 \| Natural gas derivatives
Assets (Liabilities)
Derivative liability	(30,181)	(151)
Fair value on a recurring basis \| Level 3
Assets (Liabilities)
Contingent consideration related to business combination	(16,029)	(8,203)
Total	(16,029)	(8,203)
Fair value on a recurring basis \| Level 3 \| Oil derivatives and basis swaps
Assets (Liabilities)
Derivative liability	0	0
Fair value on a recurring basis \| Level 3 \| Natural gas derivatives
Assets (Liabilities)
Derivative liability	$ 0	$ 0

ASSET RETIREMENT OBLIGATIONS (Details) - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2022

Mar. 31, 2021

Dec. 31, 2021

Changes in the Company's asset retirement obligations

Beginning asset retirement obligations

$ 41,959

Liabilities incurred during period

817

Liabilities settled during period

(323)

Divestitures during period

(1,449)

Accretion expense

543

$ 500

Ending asset retirement obligations

41,547

Less: current asset retirement obligations

^[1]

(282)

Long-term asset retirement obligations

$ 41,265

$ 41,689

[1]	Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at March 31, 2022.

DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative liability	$ 89,907	$ 14,878

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification, Consolidation (Topic 810). The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of March 31, 2022. Amounts as of December 31, 2021 are derived from the Company’s audited consolidated financial statements included in the Annual Report.

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

Revenues

The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three months ended March 31, 2022 and 2021 (in thousands).


	Three Months Ended March 31,
	2022		2021
Revenues from contracts with customers	$	663,160	$	336,181

Realized loss on derivatives	(22,439)		(25,913)
Unrealized loss on derivatives	(75,029)		(43,423)
Total revenues	$	565,692	$	266,845


	Three Months Ended March 31,
	2022		2021
Oil revenues	$	460,122	$	213,279
Natural gas revenues	166,393		102,954
Third-party midstream services revenues	17,306		15,438
Sales of purchased natural gas	19,339		4,510
Total revenues from contracts with customers	$	663,160	$	336,181

Property and Equipment

The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12-month period. For both the three months ended March 31, 2022 and 2021, the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary.

The Company capitalized approximately $13.2 million and $9.5 million of its general and administrative costs and approximately $3.5 million and $0.6 million of its interest expense for the three months ended March 31, 2022 and 2021, respectively.

Earnings Per Common Share

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

The following table sets forth the computation of diluted weighted average common shares outstanding for the three months ended March 31, 2022 and 2021 (in thousands).


	Three Months Ended March 31,
	2022	2021
Weighted average common shares outstanding
Basic	117,951	116,807
Dilutive effect of options and restricted stock units	1,863	1,862
Diluted weighted average common shares outstanding	119,814	118,669

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