Matador Resources : Shareholder Letter – August 2022 Slides

SLIDE A

Q2 2022 Highlights

• Doubled the Dividend
• • Now $0.40 per share on an annualized basis
• Reduced Debt
• • No outstanding borrowings on revolving credit facility bank debt
  • Repurchased $158 million in public bonds in the open market(1)
• Increased Production
• • Record 110,750 BOE per day in Q2 2022
• Record Financial Results
• • Oil and natural gas revenues ($893 million), net income ($416 million), Adjusted EBITDA(2) ($664 million)
• Generating Adj. Free Cash Flow(1)
• • Record $454 million in Q2 - Almost as much as all of 2021 ($487 million)!
• Acquired Pronto Midstream
• • Includes 60 MMcf/d cryogenic processing plant and 45 miles of natural gas gathering pipelines

(1)	Through July 25, 2022.	1
(2)	Adjusted EBITDA and adjusted free cash flow are non-GAAP financial measures. For a definition and reconciliation to the comparable GAAP measures, see Appendix.

Revolver Borrowings Outstanding - Quarterly Results	SLIDE B
No RBL Borrowings Outstanding!

($ in millions)

$2,000

$1,500

$1,000

$800

$600

$400

$200

$15

$0

Q2 2012

Borrowing Base

	$520		$486
		$45
						$46		$386
										$46		$286
	$475		$440						$46
			$340
									$240
		Q3 2020			Q4 2020			Q1 2021		Q2 2021

$166

$46

$120

Q3 2021

Letters of Credit

Revolver Borrowings Outstanding

Lowest leverage since IPO!

$146	$96
$46		$46
$46
$100
$50
	$46
Q4 2021	Q1 2022	Q2 2022

			2021 Free Cash Flow(1): $487			$246
Leverage Ratio(2):	0.2x	2.8x	2.9x	2.5x	1.8x	1.3x	1.1x	0.8x
Realized Oil
Price(3) ($/Bbl):	$107.57	$38.67	$40.99	$57.05	$64.90	$69.73	$76.82	$95.45
Realized Gas
Price(3) ($/Mcf):	$2.40	$2.27	$2.97	$5.88	$4.46	$6.27	$7.68	$7.63

Note: Adjusted free cash flow(1) for the second quarter of 2022 nearly exceeds the adjusted free cash flow generated in full-year 2021.

1. Adjusted free cash flow is a non-GAAP financial measure. For definitions and reconciliations to the comparable GAAP measures, see Appendix.
2. Defined as Net Debt / LTM Adjusted EBITDA as calculated under the Credit Agreement. For purposes of the Credit Agreement, Net Debt at June 30, 2022 is calculated as (i) $906 million in senior notes outstanding, plus (ii) $46 million in outstanding letters of credit under the Credit Agreement, less (iii) $75 million in available cash. Adjusted EBITDA is a non-GAAP financial measure. For a definition and reconciliation to the comparable GAAP measures, see Appendix.
3. Without realized derivatives.

$454 (Q2 2022 Free Cash Flow(1))

0.5x

$111.06

$9.57

2

SLIDE C

Growing Production while Decreasing Costs!

Daily Oil and Natural Gas Production

BOE/day

							Q2 2022 production
							at all-time high!		110,750
BOE/dProduction,Daily	120,000			Oil		Natural Gas			93,969
100,000	52,937 54,625	55,536 59,941 61,290 69,645 73,749 71,161 73,302 72,989 83,183 73,983 93,210 90,033 87,288
	80,000
	60,000

40,000

20,000

0

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 '18 '18 '18 '19 '19 '19 '19 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22

Period Turned to Sales

Drilling & Completion CapEx

$/foot

	$1,750			$1,520	$1,558
	$1,427
	$1,500
								Q2 2022 D&C/ft
D&CCapEx/ft					$1,222	$1,132	$1,178	$1,109	$1,009	$878			near all-time lows!
				$786	$625 $783 $614 $652 $738 $752	$772
(1)
	$1,250
	$1,000
	$750

$500

$250

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 '18 '18 '18 '19 '19 '19 '19 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22

Period Turned to Sales

(1) Cost per completed lateral foot metric shown represents the drilling and completion ("D&C") portion of operated horizontal well costs only. Excludes costs to equip wells, midstream capital	3
expenditures, capitalized general and administrative ("G&A") or interest expenses and certain other capital expenditures.

SLIDE D

MTDR Performance vs. Board Peers (YTD 2022)

Since January 1, 2022 through August 12, 2022 close

MTDR #1 PERFORMER

MTDR +65%

CTRA +53%

OVV +51%

MRO +47%

XOP +46%

SM +43%

PDCE +30%

MGY +25%

FANG +23%

CDEV +22%

LPI +14%

0%

CPE (-13%)

4

Source: Bloomberg LP

Appendix