Matador Resources (MTDR) Updates FY17 Guidance

Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”), today updated its full year 2017 guidance estimates in advance of its 2017 Analyst Day presentation in Dallas, Texas.

2017 Updated Guidance

Matador today announced an update to its full year 2017 guidance estimates, which were initially provided on February 22, 2017. These updated guidance estimates primarily reflect the Company’s decision to drill and complete a five-well operated program in the Eagle Ford shale in South Texas, with economic returns expected to be comparable to Matador’s Delaware Basin wells, in order to maintain the leasehold associated with this drilling program and to enhance the value of its Eagle Ford asset. Capital expenditures associated with this five-well operated program are anticipated to be approximately $30 million, or about 6% of the Company’s 2017 estimated capital expenditures. At March 23, 2017, Matador has begun drilling this five-well Eagle Ford program and anticipates that all five wells will be completed and placed on production late in the second quarter of 2017. In all other material respects, Matador’s 2017 capital investment plans remain the same as previously disclosed on February 22, 2017.

With the exception of drilling these five Eagle Ford wells, Matador’s updated guidance estimates include four drilling rigs operating in the Delaware Basin in the first quarter of 2017, with a fifth drilling rig added in the Delaware Basin in the second quarter of 2017. In 2017, Matador expects to direct 93% of its estimated capital expenditures to drilling and completion and midstream activities in the Delaware Basin.

Updated full year 2017 guidance estimates are as follows.

(1) Oil production of 6.9 to 7.2 million barrels, an increase of 38% at the midpoint of 2017 guidance, as compared to 5.1 million barrels produced in 2016;

(2) Natural gas production of 33.0 to 35.0 billion cubic feet, an increase of 11% at the midpoint of 2017 guidance, as compared to 30.5 billion cubic feet produced in 2016;

(3) Total oil equivalent production of 12.4 to 13.0 million BOE, an increase of 25% at the midpoint of 2017 guidance, as compared to 10.2 million BOE produced in 2016;

(4) Drilling and completions capital expenditures (including equipping wells for production) of $400 to $420 million, including estimated capital expenditures associated with non-operated well opportunities;

(5) Midstream capital expenditures of $56 to $64 million, which represents Matador’s 51% share of an estimated capital expenditure budget of $110 to $125 million for the recently announced San Mateo Midstream, LLC joint venture (“San Mateo”); and

(6) Adjusted EBITDA, a non-GAAP financial measure, of $255 to $275 million, an increase of 68% at the midpoint of 2017 guidance, as compared to 2016 Adjusted EBITDA. Adjusted EBITDA guidance is based on estimated average realized prices of $51.72 per barrel for oil (West Texas Intermediate average oil price of $54.22 per barrel for oil, less $2.50 per barrel of estimated price differentials, using the forward strip for oil prices as of late February 2017) and $3.11 per thousand cubic feet for natural gas (NYMEX Henry Hub average natural gas price using the forward strip for natural gas prices as of late February 2017 and assuming regional price differentials and uplifts from natural gas processing roughly offset). These 2017 estimates reflect Matador’s reduced ownership in its Delaware Basin midstream assets from 100% to 51% upon the formation of San Mateo, as announced on February 17, 2017. In addition, at these oil and natural gas prices, Matador estimates a realized loss on derivatives of about $11 million in 2017.

2017 Analyst Day Details

Management plans to provide its detailed 2017 operational plan, capital budget and forecasts, and to provide an update on its ongoing operations and continued improvements in drilling, completion and production techniques, primarily in the Delaware Basin, at the Company’s Analyst Day scheduled to be held on Thursday, March 23, 2017 beginning at 9:00 a.m. Central Daylight Time. The Analyst Day meeting will be held in the Pegasus I, II and III meeting rooms at the Tower Club, Dallas, located on the 48th floor of Thanksgiving Tower, 1601 Elm Street, Dallas, Texas 75201. The presentation will conclude with a question and answer session for those in attendance. Individuals who are unable to attend in person can participate in the live conference call or via virtual webcast. A continental breakfast will be provided beginning at 8:00 a.m. Central Daylight Time; following the presentation, lunch will be provided.

To access the Analyst Day conference call in a listen-only mode, domestic participants should dial (855) 875-8781 and international participants should dial (720) 634-2925. The participant passcode is 57940638. To access the virtual webcast, participants should use the following link: http://edge.media-server.com/m/p/endibbxh. All details can be accessed through the Company’s website at www.matadorresources.com on the Presentations & Webcasts page under the Investors tab.

A replay of the Analyst Day conference call will be made available through April 30, 2017 via webcast. A link to the replay webcast will be available through the Company’s website at www.matadorresources.com on the Presentations & Webcasts page under the Investors tab.

A copy of the Company’s Analyst Day presentation will be available prior to the event through the Company’s website at www.matadorresources.com on the Presentations & Webcasts page under the Investors tab.

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