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EX - 99.1 2 a20210630mtdr8ker - ex991.htm EX - 99.1 Exhibit 99.1 MATADOR RESOURCES COMPANY REPORTS RECORD SECOND QUARTER 2021 OPERATING AND FINANCIAL RESULTS AND ANNOUNCES AN ADDITIONAL $ 100 MILLION IN BORROWINGS REPAID DALLAS , Texas , July 27 , 2021 -- Matador Resources Company ( NYSE : MTDR ) ( “ Matador ” or the “ Company ” ) today reported financial and operating results for the second quarter of 2021. A short slide presentation summarizing the highlights of Matador's second quarter 2021 earnings release is also included on the Company's website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab . Second Quarter 2021 Management Summary Comments Joseph Wm . Foran , Matador's Chairman and CEO , commented , " On both our website and the webcast planned for tomorrow's earnings conference call is a set of six slides identified as ‘ Chairman's Remarks ' ( Slides A through F ) to add color and detail to my remarks . We invite you to review these slides in conjunction with my comments below , which are intended to provide context for the second quarter of 2021 compared to Matador's goals for the year . Record Results in Second Quarter 2021 " The second quarter of 2021 was an outstanding quarter for Matador highlighted by record operational and financial achievements ( see Slide A ) , including a significant increase in net income and all - time quarterly highs for oil and natural gas production , oil and natural gas revenues , Adjusted EBITDA and adjusted free cash flow . San Mateo also delivered record results in the second quarter highlighted by all - time quarterly highs for third - party midstream revenues , net income , Adjusted EBITDA and adjusted free cash flow ( see Slide B ) . The Board and I would like to acknowledge and express our sincere appreciation to both the Matador and San Mateo teams for their strong execution once again in the second quarter . " Net cash provided by operating activities in the second quarter was $ 258.2 million , a 52 % sequential increase , leading to second quarter 2021 adjusted free cash flow of $ 156.3 million , a sequential increase of 145 % and an all - time quarterly high . This adjusted free cash flow included $ 16.3 million in performance incentives received by Matador from our midstream joint venture partner Five Point associated with turning the first 13 Voni wells to sales in the Stateline asset area in the second quarter . Given this strong free cash flow , Matador repaid $ 100 million in borrowings outstanding in the second quarter of 2021. Matador has now reduced the borrowings outstanding under its reserves - based revolving credit facility by $ 235 million , or essentially half of the prior borrowings outstanding , during the past three quarters . As a result , Matador's leverage ratio under the reserves - based credit facility has now declined to 1.8x ( see Slide C ) , which marks the lowest leverage ratio in two years , dating back to the second quarter of 2019. Matador expects to use a significant portion of its free cash flow in future periods to continue reducing the borrowings outstanding under its reserves - based credit facility and paying quarterly dividends to shareholders . Operations Tracking Key 2021 Milestones , Including Strong Well Results and Improved Capital Efficiency . " Matador's 2021 priorities and milestones are shown in Slide D , and we continue to be on schedule , or even slightly ahead , of this operating and capital efficiency plan for 2021. During the second quarter of 2021 , we achieved our second key operational milestone when we turned to sales in April the first 13 Voni wells in the Stateline asset area . Just recently , we achieved our third key operational milestone when we turned to sales four wells , all two - mile , Second Bone Spring completions , in the Greater Stebbins Area . We remain very pleased with the continued better - than - expected well performance being achieved all across our acreage position in the Delaware Basin , but we are particularly excited by the better - than- expected well performance we continue to achieve in the Stateline asset area and in the Rodney Robinson wells in the western portion of the Antelope Ridge asset area . In fact , the first six Rodney Robinson wells turned to sales in late March 2020 , in aggregate , achieved payout in approximately one year , and the first 13 Boros wells turned to sales in September 2020 , in aggregate , achieved payout in approximately nine months , all despite being turned to sales in 2020 during periods of significantly lower oil and natural gas prices 1