Matador Resources (MTDR) 8-K Results of Operations and Financial Condition

Investor Presentation

May 2012

Exhibit 99.1

1

Forward-Looking Statements

This

presentation

and

statements

made

by

representatives

of

Matador

Resources

Company

(“Matador”

or

the

“Company”)

during

the

course

of

this

presentation

include

“forward-looking

statements”

within

the

meaning

of

Section

27A

of

the

Securities

Act

of

1933,

as

amended,

and

Section

21E

of

the

Securities

Exchange

Act

of

1934,

as

amended.

“Forward-looking

statements”

are

statements

related

to

future,

not

past,

events.

Forward-looking

statements

are

based

on

current

expectations

and

include

any

statement

that

does

not

directly

relate

to

a

current

or

historical

fact.

In

this

context,

forward-looking

statements

often

address

expected

future

business

and

financial

performance,

and

often

contain

words

such

as

“could,”

“believe,”

“would,”

“anticipate,”

“intend,”

“estimate,”

“expect,”

“may,”

“should,”

“continue,”

“plan,”

“predict,”

“potential,”

“project”

and

similar

expressions

that

are

intended

to

identify

forward-looking

statements,

although

not

all

forward-looking

statements

contain

such

identifying

words.

Actual

results

and

future

events

could

differ

materially

from

those

anticipated

in

such

statements.

These

forward-looking

statements

involve

certain

risks

and

uncertainties

and

ultimately

may

not

prove

to

be

accurate,

including,

but

not

limited

to,

the

following

risks

related

to

our

financial

and

operational

performance:

general

economic

conditions;

our

ability

for

Matador

to

execute

its

business

plan,

including

the

success

of

its

drilling

program;

changes

in

oil,

natural

gas

and

natural

gas

liquids

prices

and

the

demand

for

oil,

natural

gas

and

natural

gas

liquids;

our

ability

to

replace

reserves

and

efficiently

develop

our

current

reserves;

our

costs

of

operations,

delays

and

other

difficulties

related

to

producing

oil,

natural

gas

and

natural

gas

liquids;

our

ability

to

make

acquisitions

on

economically

acceptable

terms;

availability

of

sufficient

capital

to

Matador

to

execute

its

business

plan,

including

from

our

future

cash

flows,

increases

in

our

borrowing

base

and

otherwise;

weather

and

environmental

conditions;

and

other

important

factors

which

could

cause

actual

results

to

differ

materially

from

those

anticipated

or

implied

in

the

forward-looking

statements.

For

further

discussions

of

risks

and

uncertainties,

you

should

refer

to

Matador’s

SEC

filings,

including

the

“Risk

Factors”

section

of

Matador’s

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2011.

Matador

undertakes

no

obligation

and

does

not

intend

to

update

these

forward-looking

statements

to

reflect

events

or

circumstances

occurring

after

the

date

of

this

presentation,

except

as

required

by

law.

You

are

cautioned

not

to

place

undue

reliance

on

these

forward-looking

statements,

which

speak

only

as

of

the

date

of

this

presentation.

All

forward-looking

statements

are

qualified

in

their

entirety

by

this

cautionary

statement.

2

Company Overview

Completed IPO of 14,883,334 shares (12,209,167 primary) including overallotment at $12.00/share in March 2012

Exchange: Ticker

NYSE: MTDR

Shares Outstanding

55.51 million common shares

Share Price as of May 11, 2012

$10.62/share

Market Capitalization as of May 11, 2012

$589.5 million

2012 Guidance Summary

2012 Estimated Capital Spending

$313 million

2012 Estimated Total Oil Production

1.4 to 1.5 million barrels

2012 Estimated Exit Rate for Oil Production

5,000 to 5,500 barrels per day

2012 Estimated Total Natural Gas Production

12.5 to 13.5 billion cubic feet

Matador Oil Facts

3

94% of 2012E capital expenditure program focused on oil and

liquids exploration and development in south Texas

First quarter 2012 oil production of approximately 200,000 barrels is

more than all oil produced in 2011 and 2010 combined

Anticipate oil production to constitute 35% to 40% of total

production volume and oil revenues to constitute 75% to 80% of

total oil and natural gas revenues in 2012

Oil production has increased ten-fold year-over-year at March 31,

2012 and is expected to increase approximately ten-fold during 2012

Founded by Joe Foran in 1983

Foran Oil funded with $270,000 in

contributed capital from 17 friends and 

family members

Rolled into Matador Petroleum Corporation 

in 1988

Grown primarily through acquire and exploit

strategy

Delivered 21% average annual rate of

return over 15 years

Sold

to

Tom

Brown,

Inc.

(1)

in

June

2003

for

an enterprise value of $388 million in an all-

cash transaction

Foran Oil & Matador Petroleum

4

Matador History

Matador Resources Company

Founded by Joe Foran in 2003

Attracted start-up capital from long-time

shareholders; diverse and unique shareholder

group including over 400 friends and neighbors

Proven management, technical team and

Board of Directors

Grown entirely through drill bit, with focus on

unconventional reservoir plays

Chesapeake transaction and strong science

and technical teams enabled the strategic

transition to the Eagle Ford play

Strong growth since 2008 and 2009

Daily

production

has

increased

over

4x

(2)

Proved

reserves

have

increased

9x

(3)

Adjusted

EBITDA

(4)

has

more

than

tripled

(5)

Predecessor Entities

Matador Today

A Year of Growth

5

(1) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA to our net income (loss) and net cash provided by operating activities, see slide 19

6

Financial Performance: Proven Management Team

Oil and Natural Gas Revenues

($ in mm)

Total Realized Revenues

(2)

($ in mm)

Adjusted EBITDA

(1)

($ in mm)

Average Daily Production

(MMcfe/d)

20.5

37.8

48.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

1Q10

1Q11

1Q12

$9.5

$15.5

$32.2

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

1Q10

1Q11

1Q12

$9.2

$13.7

$29.2

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

1Q10

1Q11

1Q12

$6.1

$10.1

$21.3

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

1Q10

1Q11

1Q12

Liquids Focused CapEx in 2012E

Commentary

Oil Production Growth Over Time (Bbl/d)

7

Approximately 88% of 2012E

capital budget focused on

Eagle Ford (84%) and

Austin Chalk (4%)

Oil production up over ten-fold

year-over-year at March 31,

2012

Oil production expected to

increase nearly 10x in 2012

All 2012 Eagle Ford and

Austin Chalk drilling locations

targeting oil and liquids

Only 14% of our identified

Eagle Ford and 5% of our

identified Haynesville

locations expected to be

drilled in 2012

Q1 2012 oil production

approximately 200,000 barrels

Strong Growth Profile Focused on Liquids

91

422

2,200

0

500

1000

1500

2000

2500

2010

2011

1Q 2012

Leverage to Eagle Ford (Net Eagle Ford Acres / EV)

(Net Acres / $mm)

8

Leading Eagle Ford Exposure

Matador offers significant leverage

and focus to the Eagle Ford

Approximately 85% of Eagle Ford

acreage is in the prospective oil

and liquids window

All 2012E Eagle Ford drilling

focused in the prospective oil and

liquids window

84% of 2012 estimated CapEx

allocated to Eagle Ford

One rig running in the eastern and

one in the western portions of the

Eagle Ford play

Eagle Ford acreage well-

positioned throughout the play

9

Eagle Ford and Austin Chalk Properties

Note: All acreage values are as of December 31, 2011

22,179 gross / 4,372 net acres

EAGLE FORD EAST

8,891 gross / 8,891 net acres

13,329 gross / 10,465 net acres

Highlights

10

Eagle Ford Properties are in Good Neighborhoods:

MTDR acreage in counties

with robust transaction activity

–

“good neighborhoods”

Transaction values ranging

from $10,000 to $25,000 /

acre

Our Eagle Ford position has

grown to almost 30,000 net

acres

Acreage in both the eastern

and western areas of the play

Approximately 85% of

acreage in prospective oil and

liquids windows

Acreage offers potential for

Austin Chalk, Buda, Pearsall

and other formations

Note: Information for precedent transactions based on public filings

Good reputation with land and mineral owners

80% of Eagle Ford acreage HBP or not burdened with lease expirations before 2013

11

Emerging Multi-Pay Area in Eagle Ford Oil Fairway and MTDR

Acreage

12

South Texas Multi-Pay Petroleum Systems:

Petroleum Charge focus towards Glasscock Ranch

Note: Information for Pearsall Oil Field sourced from public information

13

Multi-Pay Fairway: Productive and Prospective Pay Zones

Historic Conventional Zones

Olmos-Navarro

–

Gas

and

oil

fields

in

shallow

section

Austin

–

Upper

Austin

horizontal

drilling

–

Fractured

reservoir

Buda

–

Primarily

productive

on

structure

–

Fractured

reservoir

Edwards

–

Productive

on

structure

“New”

Unconventional Zones

“Chalkleford”

(Eagle Ford / Austin Chalk transition zone)

–

Recent results in Pearsall Field from other operators are positive

Eagle Ford

–

Lower costs combined with better completion techniques have improved initial

results in northern oil window

Horizontal Buda Drilling

–

Exploratory play developing to exploit fracturing within the Buda both on and

off structure

Pearsall Shale

–

Exploratory play, initial test wells now being drilled

Austin Chalk

Eagle Ford

Buda

Georgetown

Del Rio

Edwards

Glen Rose

Rodessa

Pearsall

Sligo

Olmos

Navarro

ANCC

14

Hedging Profile

Oil Hedges

2012

2013

Total Volume Hedged by Ceiling (Bbl)

1,180,000

1,260,000

Weighted Average Price ($ / Bbl)

$109.84

$110.26

Total Volume Hedged by Floor (Bbl)

1,180,000

1,260,000

Weighted Average Price ($ / Bbl)

$90.51

$87.14

Natural Gas Hedges

2012

2013

Total Volume Hedged by Ceiling (Bcf)

7.20

1.05

Weighted Average Price ($ / MMBtu)

$5.78

$5.75

Total Volume Hedged by Floor (Bcf)

7.20

1.05

Weighted Average Price ($ / MMBtu)

$4.44

$4.50

15

Financial Flexibility

Plan to fund 2012 capital budget with a portion of IPO net proceeds, anticipated cash flows from

operations and available borrowings under credit facility

proved reserves during the year

-

Two redeterminations available in 2012

-

Have met with banks to discuss expanding the bank group and to confirm expectations on future

borrowing base increases

Borrowing base of $125 million, based on February 2012 redetermination

-

21%

of

current

market

capitalization

(1)

-

Oil production base expected to increase nearly ten-fold in 2012

$30 million in debt outstanding as of May 15, 2012

(1)

As

of

May

11,

2012

close

Intend to seek redeterminations of borrowing base as a result of any increases in oil and natural gas

Liquids Focused CapEx in 2012E

Commentary

Oil Production Growth Over Time (Bbl/d)

16

Approximately 88% of 2012E

capital budget focused on

Eagle Ford (84%) and

Austin Chalk (4%)

Oil production up over ten-fold

year-over-year at March 31,

2012

Oil production expected to

increase nearly 10x in 2012

All 2012 Eagle Ford and

Austin Chalk drilling locations

targeting oil and liquids

Only 14% of our identified

Eagle Ford and 5% of our

identified Haynesville

locations expected to be

drilled in 2012

Q1 2012 oil production

approximately 200,000 barrels

Strong Growth Profile Focused on Liquids

91

422

2,200

0

500

1000

1500

2000

2500

2010

2011

1Q 2012

17

Investment Highlights

Strong Growth Profile with Increasing Focus on Oil / Liquids

High Quality Asset Base in Attractive Areas

Significant Multi-year Drilling Inventory

Strong Financial Position and Long-Term Institutional, Industry and Individual

Shareholders

Proven Management and Technical Team and Active Board of Directors

Low Cost Operations

Active Exploration Effort Using Science and Technology

Appendix

19

Adjusted EBITDA Reconciliation

The following table presents our calculation of Adjusted EBITDA and reconciliation of Adjusted EBITDA to the GAAP financial measures of net income

(loss) and net cash provided by operating activities, respectively.

We believe Adjusted EBITDA helps us evaluate our operating performance and compare our results of operation from period to period without regard to our financing

methods or capital structure. We define Adjusted EBITDA as earnings before interest expense, income taxes, depletion, depreciation and amortization, accretion of asset

retirement obligations, property impairments, unrealized derivative gains and losses, non-recurring income and expenses and non-cash stock-based compensation expense,

including stock option and grant expense and restricted stock expense. Adjusted EBITDA is not a measure of net income (loss) or cash flows as determined by GAAP.

Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or cash flows from operating activities as determined in accordance with

GAAP or as an indicator of our operating performance or liquidity.

Year Ended December 31,

(In thousands)

2008

2009

2010

2011

2010

2011

2012

Unaudited Adjusted EBITDA reconciliation to Net Income (Loss):

Net income (loss)

$103,878

($14,425)

$6,377

($10,309)

$5,676

($27,596)

$3,801

Interest expense

-

-

3

683

-

106

308

Total income tax provision (benefit)

20,023

(9,925)

3,521

(5,521)

2,975

(6,906)

3,064

Depletion, depreciation and amortization

12,127

10,743

15,596

31,754

3,362

7,111

11,205

Accretion of asset retirement obligations

92

137

155

209

38

39

53

Full-cost ceiling impairment

22,195

25,244

-

35,673

-

35,673

-

Unrealized (gain) loss on derivatives

(3,592)

2,375

(3,139)

(5,138)

(6,093)

1,668

3,270

Stock option and grant expense

605

622

824

2,362

180

42

(374)

Restricted stock grants

60

34

74

44

6

11

11

Net (gain) loss on asset sales and inventory impairment

(136,977)

379

224

154

-

-

-

Adjusted EBITDA

$18,411

$15,184

$23,635

$49,911

$6,142

$10,148

$21,338

Year Ended December 31,

(In thousands)

2008

2009

2010

2011

2010

2011

2012

Unaudited Adjusted EBITDA reconciliation to Net Cash Provided

by Operating Activities:

Net cash provided by operating activities

$25,851

$1,791

$27,273

$61,868

$9,101

$12,732

$5,110

Net change in operating assets and liabilities

(17,888)

15,717

(2,230)

(12,594)

(2,959)

(2,690)

15,920

Interest expense

-

-

3

683

-

106

308

Current income tax provision (benefit)

10,448

(2,324)

(1,411)

(46)

-

-

-

Adjusted EBITDA

$18,411

$15,184

$23,635

$49,911

$6,142

$10,148

$21,338

Three Months Ended March 31,

Three Months Ended March 31,

Board of Directors and Special Board Advisors –

Expertise and Stewardship

20

Board Members

and Advisors

Professional Experience

Business Expertise

Charles L. Gummer

Director

-

Former Chairman, President and CEO, Comerica Bank –Texas

Banking

Dr. Stephen A. Holditch

Director

-

Professor and Former Head of the Department of Petroleum

Engineering, Texas A&M University

-

Founder / President S.A. Holditch & Associates

-

Past President of Society of Petroleum Engineers

Oil & Gas Operations

David M. Laney

Director

-

Past Chairman, Amtrak Board of Directors

-

Former Partner, Jackson Walker LLP

Law

Gregory E. Mitchell

Director

-

President / CEO, Toot’n Totum Food Stores

Petroleum Retailing

Dr. Steven W. Ohnimus

Director

-

Retired VP and General Manager, Unocal Indonesia

Oil & Gas Operations

Michael C. Ryan

Director

-

Partner, Berens Capital Management

International Business and

Finance

Margaret B. Shannon

Director

-

Retired VP and General Counsel, BJ Services Co.

-

Former Partner, Andrews Kurth LLP

Law and

Corporate Governance

Marlan W. Downey

Special Board Advisor

-

Retired President, ARCO International

-

Former President, Shell Pecten International

-

Past President of American Association of Petroleum Geologists

Oil & Gas Exploration

Edward R. Scott, Jr.

Special Board Advisor

-

Former Chairman, Amarillo Economic Development Corporation

-

Law Firm of Gibson, Ochsner & Adkins

Law, Accounting and Real

Estate Development

W.J. “Jack”

Sleeper, Jr.

Special Board Advisor

-

Retired President, DeGolyer and MacNaughton (Worldwide

Petroleum Consultants)

Oil & Gas Executive

Management

Proven Management Team –

Experienced Leadership

21

Management Team

Background and Prior Affiliations

Industry

Experience

Matador

Experience

Joseph Wm. Foran

Founder, Chairman and CEO

-

Matador Petroleum Corporation, Foran Oil Company,

J Cleo Thompson Jr. and Thompson Petroleum Corp.

31 years

Since Inception

David E. Lancaster

EVP, COO and CFO

-

Schlumberger, S.A. Holditch & Associates, Inc., Diamond

Shamrock

32 years

Since 2003

Matthew V. Hairford

EVP, Operations

-

Samson, Sonat, Conoco

27 years

Since 2004

Wade I. Massad

EVP, Capital Markets

-

Cleveland

Capital

Management,

LLC,

KeyBanc

Capital

Markets,

RBC

Capital

Markets

22 years

Since 2010

David F. Nicklin

Executive Director, Exploration

-

ARCO, Senior Geological Assignments in UK, Angola,

Norway and the Middle East

40 years

Since 2007

Scott E. King

Co-Founder, VP, Geophysics

and New Ventures

-

Matador Petroleum Corporation, Enserch, BP, Sohio

28 years

Since Inception

Bradley M. Robinson

VP, Reservoir Engineering

-

Schlumberger, S.A. Holditch & Associates, Inc.,

Marathon

34 years

Since Inception

Kathryn L. Wayne

Controller and Treasurer

-

Matador Petroleum Corporation, Mobil

27 years

Since Inception

22

Daily Production

(1)

48.1 MMcfe/d

Oil Production (% total)

2,200 Bbl/d (27%)

Proved Reserves @ 3/31/12

203.1 Bcfe

% Proved Developed

36%

% Oil

17% (and growing)

2012E CapEx

$313 million

% Eagle Ford

84%

% Oil and Liquids

94%

2012E Anticipated Drilling

29.5 net wells

Eagle Ford / Austin Chalk

27.6 net wells

Haynesville

1.5 net wells

Gross Acreage

(2)

234,720 acres

Net Acreage

(2)

196,532 acres

Identified Drilling Locations

(2)

793 gross / 308 net

Eagle Ford / Austin Chalk

(2)

209 gross / 169 net

Haynesville / Cotton Valley

(2)

584 gross / 139 net

(1)

Average daily production for the three months ended March 31, 2012

(2)

As of December 31, 2011

Matador Resources Snapshot

23

Eagle Ford and Austin Chalk Overview

Acreage positioned in some of the most

active counties for Eagle Ford and Austin

Chalk (including “Chalkleford”)

Two rigs running, primarily focused on oil

and liquids

94%

(5)

of 2012E capital expenditure

program focused on oil and liquids

exploration and development

Drilling locations are based on 120 acre

spacing

Anticipate oil production to constitute

approx. 35-40% of total production

volume and oil revenues to constitute

approx. 75-80% of total oil and natural

gas revenues in 2012

Proved Reserves @ 3/31/12

6.8 MMBoe

% Proved Developed

46.6%

% Oil / Liquids

81.9%

Daily Oil Production

(1)

2,129 Bbl/d

Gross Acres

(2)

50,739 acres

Net Acres

(2)

28,673 acres

Eagle Ford

(2)(3)

28,673 acres

Austin Chalk

(2)(3)

14,849 acres

Identified Drilling Locations

(2)

169.1 net

2012E Anticipated Drilling

27.6 net wells

2012E CapEx Budget

$268.5 million

% HBP or no short term expirations

(4)

80%

24

Northwest Louisiana / East Texas Properties Overview

Proved Reserves @ 3/31/12

161.4 Bcfe

% Proved Developed

36.4%

% Natural Gas

99.8%

Daily Production

(1)

32.6 MMcfe/d

Gross Acres

(2)

28,899 acres

Net Acres

(2)

25,339 acres

Haynesville

(2)(3)

14,527 acres

Cotton Valley

(2)(3)

23,054 acres

Identified

Drilling

Locations

(2)

138.9 net wells

2012E Anticipated Drilling

1.5 net wells

2012E CapEx Budget

$13.5 million

% HBP

Over 90%

Participated in 118 operated and non-operated

Haynesville wells at March 31, 2012

Haynesville proved reserves grew from zero at year

end 2008 to 148.2 Bcfe at March 31, 2012

LA Wildlife H#1 and Williams 17 H#1 operated wells

produced approximately 3.4 Bcfe (9.3 MMcfe/d) and

1.83 Bcfe (6.7 MMcfe/d) in their first 12 and 9

months, respectively

Highlights

25

Haynesville Positioning

Approximately 12,000 gross

and 5,500 net acres in

Haynesville Tier 1 core area

Almost all Tier 1 core acreage

is HBP, as is over 90% of all

prospective Haynesville

acreage –

provides “natural

gas bank”

for future

development

MTDR active as both operator

and non-operator in

Haynesville play

Approximately 1,700 net

acres with Bossier potential

Haynesville acreage also

prospective for shallower

targets –

Cotton Valley,

Hosston –

in many areas

Approximately

10,000

net

HBP

acres

prospective

for

Cotton

Valley

Horizontal

play

at

Elm

Grove

/

Caspiana

Business Strategy to Deliver Growth and Value

26

Exploration and Development

Dedicating

approximately

94%

(1)

of

2012E

CapEx

to

oil

and

liquids

opportunities

Approximately 80% of Eagle Ford and approximately 90% of Haynesville acreage either HBP or

not burdened by near-term lease expirations

Balanced Portfolio

Growing Eagle Ford contributes to a diversified portfolio mix between oil and natural gas

Active,

ongoing

exploration

effort

continues

to

identify

new

oil

prospects

and

opportunities

Pursue Opportunistic Acquisitions

Ability to identify high return, operated opportunities at attractive prices

History of significant acquisitions and joint ventures

Maintain Financial Discipline

Keep balance sheet strong and control expenses

Work with industry participants to control costs for non-operated properties

Leverage Industry Relationships

Leverage expertise of our industry partners, exchange data and information and build upon

existing relationships

Continue active participation in industry consortia and professional societies

Build

Upon

Director

and

Management

Team

Experience

and

Success

in

Unconventional

Plays

27

Matador Today

Gross

Acres

(1)(2)

144,368 acres

Net

Acres

(1)(2)

135,862 acres

2012E CapEx Budget

$2.5 million

Matador Today

Gross

Acres

(1)(3)

10,714 acres

Net

Acres

(1)(3)

6,658 acres

Wyoming, Utah and Idaho (Meade Peak Shale)

Option Value in Large Unevaluated Acreage Positions

Initial test well drilled and cored through the Meade Peak

shale

Detailed petrophysical and rock properties testing in

progress

Carried participation interest provided by an affiliate of

Alliance Bernstein

Foothold of existing production and reserves

Budgeted $20 million in 2012 to acquire acreage in oil-

focused opportunities

Southeast New Mexico / West Texas

(1)

As of December 31, 2011

(2)

While we and our partners continue to evaluate the results from the initial test well and plan for its completion and further testing, we expect a significant portion of our acreage will be allowed  to expire during 2012

(3)

We believe approximately 8,000 gross and 4,000 net acres are no longer prospective, and we plan to let them expire without drilling during 2012

28

Selected Historical Financials

(Revenues and Adjusted EBITDA in millions)

Year Ended December 31,

Three Months Ended March 31,

2009

2010

2011

2011

2012

Production Summary

Oil Production (MBbls)

30.0

33.0

154.0

19.0

200.0

Gas Production (Bcf)

4.8

8.4

14.5

3.3

3.2

Total Production (Bcfe)

5.0

8.6

15.4

3.4

4.4

Realized Prices (Including hedges)

Oil ($/ Bbl)

$57.72

$76.39

$93.80

$89.11

$107.57

Natural Gas ($/ Mcf)

$5.17

$4.38

$4.11

$4.22

$3.36

Revenues

Oil and Gas Production Revenues

$19.0

$34.0

$67.0

$13.7

$29.2

Realized Oil & Gas Hedging Gain / (Loss)

7.6

5.3

7.1

1.8

3.1

Unrealized Oil & Gas Hedging Gain / (Loss)

(2.4)

3.1

5.1

(1.7)

(3.3)

Total Revenues

$24.3

$42.5

$79.2

$13.9

$29.0

Operating Expenses ($/ Mcfe)

Lease Operating

$0.94

$0.61

$0.47

$0.47

$1.06

Production Taxes and Marketing

0.22

0.23

0.41

0.38

0.49

General and Administrative

1.42

1.13

0.87

0.77

0.87

Total Expenses

$2.58

$1.97

$1.75

$1.62

$2.42

Adjusted EBITDA

(1)

$15.2

$23.6

$49.9

$10.1

$21.3

29

Investment Highlights

Strong

Growth

Profile

with

Increasing

Focus

on

Oil

/

Liquids

Oil

production

up

almost

five-fold

in

2011

and

projected

to

increase

nearly

ten-fold

in

2012

94%

(1)

of

2012E

capital

expenditure

program

focused

on

oil

and

liquids

exploration

and

development

High

Quality

Asset

Base

in

Attractive

Areas

Eagle

Ford

provides

immediate

oil-weighted

value

and

upside

Other

key

assets

provide

long-term

option

value

on

natural

gas,

with

Haynesville,

Bossier

and

Cotton

Valley

assets

all

essentially

HBP

Significant

Multi-year

Drilling

Inventory

169

net

drilling

locations

identified

in

Eagle

Ford

(153)

and

Austin

Chalk

(16)

(2)

139

net

drilling

locations

identified

in

Haynesville

(103)

and

Cotton

Valley

(36)

(2)

Strong

Financial

Position

and

Long-Term

Institutional,

Industry

and

Individual

Shareholders

Proven

Management,

Technical

Team

and

Active

Board

of

Directors

Management

averaging

over

25

years

of

industry

experience

Board

with

extensive

industry

experience

and

expertise

as

well

as

significant

company

ownership

Strong

record

of

stewardship

for

over

28

years

Active

Exploration

Effort

Using

Science

and

Technology

Ongoing

pipeline

of

new

oil

and

natural

gas

opportunities,

with

strong

emphasis

on

science

and

technology

to

create

value

Diversified Investor Composition

30

Given management’s significant equity position, interests are well aligned with public shareholders

Unique and diverse investor base includes institutional and industry shareholders with significant

experience investing in the oil and gas sector

Most initial capital was provided by investor base of predecessor company, Matador Petroleum

Corporation

99.2% of shares outside the public float locked-up for 180 days following February 1, 2012

(1) Approximate ownership at the time of the IPO

(2) Public Float percentage also includes shares purchased by Management and Legacy Shareholders on or after the IPO

Matador Resources Company (“MTDR”)

31