Matador Resources (MTDR) 10-Q 5 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 03, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Matador Resources Co
Entity Central Index Key	1,520,006
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		93,307,151

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash	$ 40,873	$ 16,732
Restricted cash	460	44,357
Accounts receivable
Oil and natural gas revenues	25,382	16,616
Joint interest billings	16,641	16,999
Other	5,137	10,794
Derivative instruments	117	16,284
Lease and well equipment inventory	3,002	2,022
Prepaid expenses	3,017	3,203
Total current assets	94,629	127,007
Oil and natural gas properties, full-cost method
Evaluated	2,272,738	2,122,174
Unproved and unevaluated	397,883	387,504
Other property and equipment	122,374	86,387
Less accumulated depletion, depreciation and amortization	(1,802,464)	(1,583,659)
Net property and equipment	990,531	1,012,406
Other assets	928	1,448
Total assets	1,086,088	1,140,861
Current liabilities
Accounts payable	9,468	10,966
Accrued liabilities	80,754	92,369
Royalties payable	16,646	16,493
Amounts due to affiliates	4,032	5,670
Derivative instruments	9,760	0
Advances from joint interest owners	5,783	700
Deferred gain on plant sale	5,903	4,830
Amounts due to joint ventures	3,522	2,793
Income taxes payable	0	2,848
Other current liabilities	210	161
Total current liabilities	136,078	136,830
Long-term liabilities
Senior unsecured notes payable	391,845	391,254
Asset retirement obligations	18,498	15,166
Amounts due to joint ventures	3,228	3,956
Derivative instruments	7,538	0
Deferred gain on plant sale	99,286	102,506
Other long-term liabilities	7,086	2,190
Total long-term liabilities	527,481	515,072
Commitments and contingencies
Shareholders’ equity
Common stock - $0.01 par value, 120,000,000 shares authorized; 93,374,455 and 85,567,021 shares issued; and 93,290,199 and 85,564,435 shares outstanding, respectively	934	856
Additional paid-in capital	1,172,983	1,026,077
Retained deficit	(752,437)	(538,930)
Total Matador Resources Company shareholders’ equity	421,480	488,003
Non-controlling interest in subsidiaries	1,049	956
Total shareholders’ equity	422,529	488,959
Total liabilities and shareholders’ equity	$ 1,086,088	$ 1,140,861

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - Unaudited - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	120,000,000	120,000,000
Common stock, shares issued	93,374,455	85,567,021
Common stock, shares outstanding	93,290,199	85,564,435

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - Unaudited - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues
Oil and natural gas revenues	$ 69,336	$ 87,848	$ 113,262	$ 150,314
Realized gain on derivatives	2,465	13,780	9,528	32,285
Unrealized loss on derivatives	(26,625)	(23,532)	(33,464)	(32,090)
Total revenues	45,176	78,096	89,326	150,509
Expenses
Production taxes and marketing	10,556	10,258	18,459	17,308
Lease operating	13,174	14,950	28,664	27,996
Depletion, depreciation and amortization	31,248	51,768	60,170	98,239
Accretion of asset retirement obligations	289	132	552	244
Full-cost ceiling impairment	78,171	229,026	158,633	296,153
General and administrative	13,197	12,961	26,360	26,372
Total expenses	146,635	319,095	292,838	466,312
Operating loss	(101,459)	(240,999)	(203,512)	(315,803)
Other income (expense)
Net gain (loss) on asset sales and inventory impairment	1,002	0	2,067	(97)
Interest expense	(6,167)	(5,869)	(13,365)	(7,939)
Interest and other income	877	502	1,396	886
Total other expense	(4,288)	(5,367)	(9,902)	(7,150)
Loss before income taxes	(105,747)	(246,366)	(213,414)	(322,953)
Income tax provision (benefit)
Deferred	0	(89,350)		(115,740)
Total income tax benefit		(89,350)		(115,740)
Net loss	(105,747)	(157,016)	(213,414)	(207,213)
Net income attributable to non-controlling interest in subsidiaries	(106)	(75)	(93)	(111)
Net loss attributable to Matador Resources Company shareholders	$ (105,853)	$ (157,091)	$ (213,507)	$ (207,324)
Earnings (loss) per common share
Basic (in dollars per share)	$ (1.15)	$ (1.89)	$ (2.40)	$ (2.65)
Diluted (in dollars per share)	$ (1.15)	$ (1.89)	$ (2.40)	$ (2.65)
Weighted average common shares outstanding
Basic (shares)	92,346	82,938	88,826	78,379
Diluted (shares)	92,346	82,938	88,826	78,379

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited - 6 months ended Jun. 30, 2016 - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Retained deficit	Treasury Stock	Total shareholders’ equity attributable to Matador Resources Company	Non-controlling interest in subsidiary
Beginning Balance, shares at Dec. 31, 2015	85,564,435	85,567,000			2,000
Balance at January 1, 2015 at Dec. 31, 2015	$ 488,959	$ 856	$ 1,026,077	$ (538,930)	$ 0	$ 488,003	$ 956
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, shares		7,500,000
Issuance of common stock	142,350	$ 75	142,275			142,350
Cost to issue equity	(830)		(830)			(830)
Stock-based compensation expense related to equity-based awards	5,464		5,464			5,464
Stock options exercised, shares		(11,000)
Stock options exercised			0			0
Stock options exercised	0
Restricted stock issued, shares		273,000
Restricted stock issued		$ 3	(3)
Restricted stock forfeited, shares					82,000
Vesting of restricted stock units	0	$ 24	0			0
Current period net loss	$ (213,414)			(213,507)		(213,507)	93
Ending Balance, shares at Jun. 30, 2016	93,290,199	93,375,000			84,000
Balance at June 30, 2016 at Jun. 30, 2016	$ 422,529	$ 934	$ 1,172,983	$ (752,437)	$ 0	$ 421,480	$ 1,049

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating activities
Net loss	$ (213,414)	$ (207,213)
Adjustments to reconcile net loss to net cash provided by operating activities
Unrealized loss on derivatives	33,464	32,090
Depletion, depreciation and amortization	60,170	98,239
Accretion of asset retirement obligations	552	244
Full-cost ceiling impairment	158,633	296,153
Stock-based compensation expense	5,553	5,131
Deferred income tax benefit		(115,740)
Amortization of debt issuance cost	592	0
Net (gain) loss on asset sales and inventory impairment	(2,067)	97
Changes in operating assets and liabilities
Accounts receivable	(2,751)	(12,161)
Lease and well equipment inventory	(514)	(269)
Prepaid expenses	186	(1,143)
Other assets	520	446
Accounts payable, accrued liabilities and other current liabilities	2,451	13,316
Royalties payable	153	4,253
Advances from joint interest owners	5,083	447
Income taxes payable	(2,848)	(444)
Other long-term liabilities	3,837	(56)
Net cash provided by operating activities	49,600	113,390
Investing activities
Oil and natural gas properties capital expenditures	(162,381)	(237,027)
Expenditures for other property and equipment	(47,548)	(32,885)
Business combination, net of cash acquired	0	(23,671)
Restricted cash	43,437	0
Restricted cash in less-than-wholly-owned subsidiaries	460	(413)
Net cash used in investing activities	(166,032)	(293,996)
Financing activities
Repayments of borrowings	0	(476,982)
Borrowings under Credit Agreement	0	125,000
Proceeds from issuance of senior unsecured notes	0	400,000
Cost to issue senior unsecured notes	0	(8,789)
Proceeds from issuance of common stock	142,350	188,720
Cost to issue equity	(768)	(1,172)
Proceeds from stock options exercised	0	10
Capital contribution from non-controlling interest owners in less-than-wholly-owned subsidiaries	0	600
Taxes paid related to net share settlement of stock-based compensation	(1,009)	(1,565)
Net cash provided by financing activities	140,573	225,822
Increase in cash	24,141	45,216
Cash at beginning of period	16,732	8,407
Cash at end of period	$ 40,873	$ 53,623

Nature of Operations

Nature of Operations	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NATURE OF OPERATIONS Matador 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 and East Texas.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of Matador and its subsidiaries 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, 2015 (the “Annual Report”) filed with the SEC. The Company proportionately consolidates certain subsidiaries that are less-than-wholly-owned 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 (“ASC”) 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 adjustments, consisting only of normal, recurring adjustments, which are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of June 30, 2016 . Amounts as of December 31, 2015 are derived from the Company’s audited consolidated financial statements 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 accruals for oil and natural gas revenues, accrued assets and liabilities primarily related to oil and natural gas operations, stock-based compensation, valuation of derivative instruments 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. Change in Accounting Principle During the second quarter of 2016, the Company adopted Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718) , which simplifies several aspects of the accounting for employee share-based payment transactions, including accounting for income tax, forfeitures, statutory tax withholding requirements, classifications of awards as either equity or liability and classification of taxes in the statement of cash flows, requiring either retrospective, modified retrospective or prospective transition. The amended guidance also requires an entity to record excess tax benefits and deficiencies in the income statement. The adoption of this ASU had no impact on any period presented for (i) the Company’s financial position or statements of operations, as the Company currently has a valuation allowance against its net deferred tax assets, or (ii) the Company’s statements of cash flows, as the Company has historically accounted for taxes paid for net share settlement as a financing activity as required under this ASU. In addition, the Company uses historical forfeiture rates to estimate future forfeitures attributable to the service-based vesting requirements not being met and will continue to do so upon adoption of this ASU. 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 which 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. Due primarily to declines in oil and natural gas prices, the capitalized costs of oil and natural gas properties exceeded the cost center ceiling, and as a result, the Company recorded impairment charges to its net capitalized costs in its unaudited condensed consolidated statements of operations of $78.2 million and $229.0 million for the three months ended June 30, 2016 and 2015 , respectively, and $158.6 million and $296.2 million for the six months ended June 30, 2016 and 2015 , respectively. As a non-cash item, the full-cost ceiling impairment impacts the accumulated depletion and the net carrying value of the Company’s assets on its consolidated balance sheet, as well as the corresponding consolidated shareholders’ equity, but it has no impact on the Company’s consolidated net cash flows as reported. Changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company’s actual ceiling test computation and impairment analyses in future periods. The Company capitalized approximately $4.0 million and $1.9 million of its general and administrative costs for the three months ended June 30, 2016 and 2015 , respectively, and approximately $1.7 million and $1.3 million of its interest expense for the three months ended June 30, 2016 and 2015 , respectively. The Company capitalized approximately $6.0 million and $3.5 million of its general and administrative costs for the six months ended June 30, 2016 and 2015 , respectively, and approximately $2.2 million and $2.3 million of its interest expense for the six months ended June 30, 2016 and 2015 , respectively. Earnings (Loss) Per Common Share The Company reports basic earnings (loss) per common share, which excludes the effect of potentially dilutive securities, and diluted earnings (loss) 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 and six months ended June 30, 2016 and 2015 (in thousands). Three Months Ended Six Months Ended 2016 2015 2016 2015 Weighted average common shares outstanding Basic 92,346 82,938 88,826 78,379 Dilutive effect of options, restricted stock units and preferred shares — — — — Diluted weighted average common shares outstanding 92,346 82,938 88,826 78,379 A total of 2.9 million options to purchase shares of the Company’s common stock and 0.1 million restricted stock units were excluded from the diluted weighted average common shares outstanding for both the three and six months ended June 30, 2016 , respectively, because their effects were anti-dilutive. Additionally, 0.9 million restricted shares, which are participating securities, were excluded from the calculations above for both the three and six months ended June 30, 2016 , respectively, as the security holders do not have the obligation to share in the losses of the Company. A total of 2.5 million options to purchase shares of the Company’s common stock and 0.1 million restricted stock units were excluded from the diluted weighted average common shares outstanding for both the three and six months ended June 30, 2015 , respectively, and zero and 1.5 million preferred shares were excluded from the calculations above for both the three and six months ended June 30, 2015 , respectively, because their effects were anti-dilutive. Additionally, 0.7 million restricted shares, which are participating securities, were excluded from the calculations above for both the three and six months ended June 30, 2015 , respectively, as the security holders do not have the obligation to share in the losses of the Company. Recent Accounting Pronouncements Revenue from Contracts with Customers . In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which specifies how and when to recognize revenue. In addition, this standard requires expanded disclosures surrounding revenue recognition and is intended to improve, and converge with international standards, the financial reporting requirements for revenue from contracts with customers. This ASU will become effective for fiscal years beginning after December 15, 2017 with early adoption permitted for periods beginning after December 15, 2016. Entities can transition to the standard either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact, if any, of the adoption of this ASU on its consolidated financial statements. Leases . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. This ASU will become effective for fiscal years beginning after December 15, 2018 with early adoption permitted. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements.

Equity

Equity	6 Months Ended
	Jun. 30, 2016
Equity [Abstract]
EQUITY	h 11, 2016, the Company completed a public offering of 7,500,000 shares of its common stock. After deducting offering costs totaling approximately $0.8 million , the Company received net proceeds of approximately $141.5 million , which are being used for general corporate purposes, including to fund a portion of the Company’s current and future capital expenditures.

Asset Retirement Obligations

Asset Retirement Obligations	6 Months Ended
	Jun. 30, 2016
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATIONS	ASSET RETIREMENT OBLIGATIONS The following table summarizes the changes in the Company’s asset retirement obligations for the six months ended June 30, 2016 (in thousands). Beginning asset retirement obligations $ 15,420 Liabilities incurred during period 1,044 Liabilities settled during period (119 ) Revisions in estimated cash flows 1,662 Accretion expense 552 Ending asset retirement obligations 18,559 Less: current asset retirement obligations (1) (61 ) Long-term asset retirement obligations $ 18,498 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2016 .

Debt

Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
DEBT	DEBT At June 30, 2016 and August 3, 2016 , the Company had $400 million of outstanding 6.875% senior notes due 2023 (the “Notes”), no borrowings outstanding under the Company’s revolving credit agreement (the “Credit Agreement”) and approximately $0.6 million and $0.8 million in outstanding letters of credit issued pursuant to the Credit Agreement, respectively. 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. Both the Company and the lenders may request an unscheduled redetermination of the borrowing base once each between scheduled redetermination dates. On May 3, 2016, the borrowing base under the Credit Agreement was reduced to $300.0 million from $375.0 million based on the lenders’ review of the Company’s proved oil and natural gas reserves at December 31, 2015. At June 30, 2016 , the borrowing base available under the Credit Agreement remained $300.0 million . In the event of a borrowing base increase, the Company is required to pay a fee to the lenders equal to a percentage of the amount of the increase, which is determined based on market conditions at the time of the borrowing base increase. If, upon a redetermination of the borrowing base, the borrowing base were to be less than the outstanding borrowings under the Credit Agreement at any time, the Company would be required to provide additional collateral satisfactory in nature and value to the lenders to increase the borrowing base to an amount sufficient to cover such excess or to repay the deficit in equal installments over a period of six months. The Company believes that it was in compliance with the terms of its Credit Agreement at June 30, 2016 . On April 14, 2015, the Company issued the Notes, which are jointly and severally guaranteed by certain subsidiaries of Matador (the “Guarantor Subsidiaries”) on a full and unconditional basis (except for customary release provisions). At June 30, 2016 , all of the Guarantor Subsidiaries are 100% owned by Matador, and any subsidiaries of Matador other than the Guarantor Subsidiaries are minor. Matador is a parent holding company and has no independent assets or operations, and there are no significant restrictions on the ability of Matador to obtain funds from the Guarantor Subsidiaries by dividend or loan.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s deferred tax assets exceed its deferred tax liabilities due to the deferred tax assets generated by the full-cost ceiling impairment charges recorded; as a result, the Company established a valuation allowance against most of the deferred tax assets beginning in the third quarter of 2015. The Company retains a full valuation allowance at June 30, 2016 due to uncertainties regarding the future realization of its deferred tax assets. The valuation allowance will continue to be recognized until the realization of future deferred tax benefits are more likely than not to be utilized. The total income tax benefit for the three and six months ended June 30, 2015 differed from amounts computed by applying the U.S. federal statutory tax rate to loss before income taxes due primarily to state tax apportionments and nondeductible expenses.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION In February 2016, the Company granted awards of 243,428 shares of restricted stock and options to purchase 608,287 shares of the Company’s common stock at an exercise price of $15.00 per share to certain of its employees. The fair value of these awards was approximately $7.0 million. All of these awards vest on the three -year anniversary of the grant date of these awards.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	At June 30, 2016 , the Company had various costless collar 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. Each contract is set to expire at varying times during 2016 and 2017. The following is a summary of the Company’s open costless collar contracts for oil and natural gas at June 30, 2016 . Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (Liability) (thousands) Oil 07/01/2016 - 12/31/2016 1,380,000 $ 42.48 $ 61.16 $ (2,091 ) Oil 01/01/2017 - 12/31/2017 1,560,000 $ 38.62 $ 47.62 (11,801 ) Natural Gas 07/01/2016 - 12/31/2016 7,200,000 $ 2.63 $ 3.61 (228 ) Natural Gas 01/01/2017 - 12/31/2017 14,580,000 $ 2.38 $ 3.48 (3,061 ) Total open derivative financial instruments $ (17,181 ) These derivative financial instruments are subject to master netting arrangements; all but one counterparty 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. 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 June 30, 2016 and December 31, 2015 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed June 30, 2016 Current assets $ 4,316 $ (4,199 ) $ 117 Other assets 2,421 (2,421 ) — Current liabilities (13,959 ) 4,199 (9,760 ) Other liabilities (9,959 ) 2,421 (7,538 ) Total $ (17,181 ) $ — $ (17,181 ) December 31, 2015 Current assets $ 16,767 $ (483 ) $ 16,284 Current liabilities (483 ) 483 — Total $ 16,284 $ — $ 16,284 The following table summarizes the location and aggregate fair value of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Three Months Ended Six Months Ended Type of Instrument Location in Condensed Consolidated Statement of Operations 2016 2015 2016 2015 Derivative Instrument Oil Revenues: Realized gain on derivatives $ 561 $ 10,524 $ 6,024 $ 24,957 Natural Gas Revenues: Realized gain on derivatives 1,904 2,716 3,504 6,315 Natural Gas Liquids Revenues: Realized gain on derivatives — 540 — 1,013 Realized gain on derivatives 2,465 13,780 9,528 32,285 Oil Revenues: Unrealized loss on derivatives (19,319 ) (19,880 ) (26,974 ) (26,345 ) Natural Gas Revenues: Unrealized loss on derivatives (7,306 ) (3,281 ) (6,490 ) (4,843 ) Natural Gas Liquids Revenues: Unrealized loss on derivatives — (371 ) — (902 ) Unrealized loss on derivatives (26,625 ) (23,532 ) (33,464 ) (32,090 ) Total $ (24,160 ) $ (9,752 ) $ (23,936 ) $ 195

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	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 in the fair value hierarchy: 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 which 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 which 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 June 30, 2016 and December 31, 2015 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Liabilities Oil and natural gas derivatives $ — $ (17,181 ) $ — $ (17,181 ) Total $ — $ (17,181 ) $ — $ (17,181 ) Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets Oil and natural gas derivatives $ — $ 16,284 $ — $ 16,284 Total $ — $ 16,284 $ — $ 16,284 Additional disclosures related to derivative financial instruments are provided in Note 8. Other Fair Value Measurements At June 30, 2016 and December 31, 2015 , the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners, amounts due to joint ventures, income taxes payable and other current liabilities approximated their fair values due to their short-term maturities. At June 30, 2016 and December 31, 2015 , the fair value of the Notes was $412.0 million and $381.0 million , respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Natural Gas and NGL Processing and Transportation Commitments Effective September 1, 2012, the Company entered into a firm five -year natural gas processing and transportation agreement whereby the Company committed to transport the anticipated natural gas production from a significant portion of its Eagle Ford acreage in South Texas through the counterparty’s system for processing at the counterparty’s facilities. The agreement also includes firm transportation of the natural gas liquids extracted at the counterparty’s processing plant downstream for fractionation. After processing, the residue natural gas is purchased by the counterparty at the tailgate of its processing plant and further transported under its natural gas transportation agreements. The arrangement contains fixed processing and liquids transportation and fractionation fees payable by the Company, and the revenue the Company receives for the residue natural gas varies with the quality of natural gas transported to the processing facilities and the contract period. Under this agreement, if the Company does not meet 80% of the maximum thermal quantity transportation and processing commitments in a contract year, it will be required to pay a deficiency fee per MMBtu of natural gas deficiency. Any quantity in excess of the maximum MMBtu delivered in a contract year can be carried over to the next contract year for purposes of calculating the natural gas deficiency. During certain prior periods, the Company had an immaterial natural gas deficiency, and the counterparty to this agreement waived the deficiency fee. The Company’s remaining aggregate undiscounted minimum commitments under this agreement are $2.1 million at June 30, 2016 . The Company paid $0.8 million and $1.4 million in processing and transportation fees under this agreement during the three months ended June 30, 2016 and 2015 , respectively, and $1.7 million and $2.7 million in processing and transportation fees under this agreement during the six months ended June 30, 2016 and 2015, respectively. In late 2015, the Company entered into a 15-year fixed-fee natural gas gathering and processing agreement whereby the Company committed to deliver the anticipated natural gas production from a significant portion of its Loving County, Texas acreage through the counterparty’s gathering system for processing at the counterparty’s facility. Under this agreement, if the Company does not meet the volume commitment for gathering and processing at the facility in a contract year, it will be required to pay a deficiency fee per MMBtu of natural gas deficiency. At the end of each year of the agreement, the Company can elect to have the previous year’s actual gathering and processing volumes be the new minimum commitment for each of the remaining years of the contract. As such, the Company has the ability to unilaterally reduce the gathering and processing commitment if the Company’s production in the Loving County area is less than the Company’s currently projected production. If the Company ceased operations in this area at June 30, 2016 , the total deficiency fee required to be paid would be approximately $8.5 million . In addition, if the Company elects to reduce the gathering and processing commitment in any year, the Company has the ability to elect to increase the committed volumes in any future year to the originally agreed gathering and processing commitment. Any quantity in excess of the volume commitment delivered in a contract year can be carried over to the next contract year for purposes of calculating the natural gas deficiency. The Company paid approximately $2.8 million in processing and gathering fees under this agreement during the three months ended June 30, 2016 and $4.7 million during the six months ended June 30, 2016 . The Company can elect to either sell the residue gas to the counterparty at the tailgate of its processing plant or have the counterparty deliver to the Company the residue gas in-kind to be sold to third parties downstream of the plant. Other Commitments The Company does not own or operate its own drilling rigs, but instead enters into contracts with third parties for such rigs. These contracts establish daily rates for the drilling rigs and the term of the Company’s commitment for the drilling services to be provided, which have typically been for one year or less, although the Company has entered into longer-term contracts in order to secure new drilling rigs equipped with the latest technology in plays that were until recently experiencing heavy demand for drilling rigs. The Company would incur a termination obligation if the Company elected to terminate a contract and the drilling contractor were unable to secure work for the contracted drilling rigs or if the drilling contractor were unable to secure replacement work for the contracted drilling rigs at the same daily rates being charged to the Company prior to the end of their respective contract terms. The Company’s undiscounted minimum outstanding aggregate termination obligations under its drilling rig contracts were approximately $43.0 million at June 30, 2016 . The Company entered into an agreement in late 2015 with a third party for the engineering, procurement, construction and installation of a natural gas processing plant in the Rustler Breaks prospect area in Eddy County, New Mexico. The plant is expected to process a portion of the Company’s natural gas produced from certain of its wells in the Delaware Basin, as well as third-party natural gas once the plant is completed and placed in service, which is scheduled to occur later in August 2016. At June 30, 2016 , total remaining commitments under this contract were $4.6 million , and the Company made payments totaling $4.3 million during the three months ended June 30, 2016 and $17.8 million during the six months ended June 30, 2016 . At June 30, 2016 , the Company had agreed to participate in the drilling and completion of various non-operated wells. If all of these wells are drilled and completed, the Company will have undiscounted minimum outstanding aggregate commitments for its participation in these wells of approximately $4.2 million at June 30, 2016 , which the Company expects to incur within the next few months. Legal Proceedings The Company is a party to several lawsuits encountered in the ordinary course of its business. While the ultimate outcome and impact to the Company cannot be predicted with certainty, in the opinion of management, it is remote that these lawsuits will have a material adverse impact on the Company’s financial condition, results of operations or cash flows.

Supplemental Disclosures

Supplemental Disclosures	6 Months Ended
	Jun. 30, 2016
Supplemental Disclosures [Abstract]
SUPPLEMENTAL DISCLOSURES	SUPPLEMENTAL DISCLOSURES Accrued Liabilities The following table summarizes the Company’s current accrued liabilities at June 30, 2016 and December 31, 2015 (in thousands). June 30, December 31, 2015 Accrued evaluated and unproved and unevaluated property costs $ 51,692 $ 54,586 Accrued support equipment and facilities costs 4,307 17,393 Accrued lease operating expenses 10,842 7,743 Accrued interest on debt 5,805 5,806 Accrued asset retirement obligations 61 254 Accrued partners’ share of joint interest charges 3,936 4,565 Other 4,111 2,022 Total accrued liabilities $ 80,754 $ 92,369 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the six months ended June 30, 2016 and 2015 (in thousands). Six Months Ended 2016 2015 Cash paid for interest expense, net of amounts capitalized $ 12,226 $ 2,263 Asset retirement obligations related to mineral properties $ 2,511 $ 1,212 Asset retirement obligations related to support equipment and facilities $ 75 $ 41 Decrease in liabilities for oil and natural gas properties capital expenditures $ (3,476 ) $ (9,909 ) (Decrease) increase in liabilities for support equipment and facilities $ (11,565 ) $ 3,859 Increase in liabilities for accrued cost to issue equity $ 62 $ — Stock-based compensation expense recognized as liability $ 88 $ 583 Transfer of inventory from oil and natural gas properties $ 474 $ 456

Subsidiary Guarantors

Subsidiary Guarantors	6 Months Ended
	Jun. 30, 2016
Subsidiary Guarantors [Abstract]
SUBSIDIARY GUARANTORS	Matador filed a registration statement on Form S-3 with the SEC in 2013, which became effective on May 9, 2013, and a registration statement on Form S-3 with the SEC in 2014, which became effective upon filing on May 22, 2014, registering, in each case, among other securities, senior and subordinated debt securities and guarantees of debt securities by certain subsidiaries of Matador (the “Shelf Guarantor Subsidiaries”). On April 14, 2015, the Company issued the Original Notes (see Note 5), which are jointly and severally guaranteed by certain subsidiaries of Matador (the “Notes Guarantor Subsidiaries” and, together with the Shelf Guarantor Subsidiaries, the “Guarantor Subsidiaries”) on a full and unconditional basis (except for customary release provisions). On June 1, 2015, Matador filed a registration statement on Form S-4 with the SEC in connection with the exchange of the Original Notes for the Registered Notes, including guarantees by each of the Notes Guarantor Subsidiaries. The Form S-4 was declared effective by the SEC on September 16, 2015. The Company completed the exchange of all the Original Notes for Registered Notes on October 21, 2015. At June 30, 2016 , the Guarantor Subsidiaries are 100% owned by Matador, and any subsidiaries of Matador other than the Guarantor Subsidiaries are minor. Matador is a parent holding company and has no independent assets or operations, and there are no significant restrictions on the ability of Matador to obtain funds from the Guarantor Subsidiaries by dividend or loan.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS In June 2015, the Company entered into two joint ventures to develop certain leasehold interests held by certain affiliates (the “HEYCO Affiliates”) of HEYCO Energy Group, Inc., the former parent company of HEYCO. The HEYCO Affiliates are owned by George M. Yates, who is a member of the Company’s Board of Directors, and certain of his affiliates. Pursuant to the terms of the transaction, the HEYCO Affiliates contributed an aggregate of approximately 1,900 net acres, primarily in the same properties previously held by HEYCO, to the two newly-formed entities in exchange for a 50% interest in each entity. The Company has agreed to contribute an aggregate of $14.2 million in exchange for the other 50% interest in both entities. As of June 30, 2016 , the Company had contributed an aggregate of approximately $0.7 million to the two entities. The Company’s contributions will be used to fund future capital expenditures associated with the interests being acquired as well as to fund acquisitions of other non-operated acreage opportunities. Additionally, substantially all of the oil production from the wells acquired in the HEYCO Merger is subject to pre-existing sales contracts with an entity owned by affiliates of HEYCO Energy Group, Inc. The Company recorded revenue of $1.1 million for oil sold pursuant to such contracts for the three months ended June 30, 2016 . Such contracts were terminated in the third quarter of 2015.

Subsequent Events (Notes)

Subsequent Events (Notes)	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On October 1, 2015 , the Company completed the sale of its wholly-owned subsidiary that owned the Loving County System to EnLink. The Loving County System includes the Processing Plant and approximately six miles of high-pressure gathering pipeline which connects the Company’s gathering system to the Processing Plant. Pursuant to the terms of the transaction, EnLink paid the Company approximately $143 million , excluding customary purchase price adjustments. In conjunction with the sale of the Loving County System, the Company dedicated its leasehold interests in Loving County as of the closing date pursuant to a 15 -year, fixed-fee gathering and processing agreement and provided a volume commitment in exchange for priority one service. The Company can, at its option, dedicate any future leasehold acquisitions in Loving County to EnLink. In addition, the Company retained its natural gas gathering system up to a central delivery point and its other midstream assets in the area, including oil and water gathering systems and salt water disposal wells.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
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 Matador and its subsidiaries 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, 2015 (the “Annual Report”) filed with the SEC. The Company proportionately consolidates certain subsidiaries that are less-than-wholly-owned 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 (“ASC”) 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 adjustments, consisting only of normal, recurring adjustments, which are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of June 30, 2016 . Amounts as of December 31, 2015 are derived from the Company’s audited consolidated financial statements 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 accruals for oil and natural gas revenues, accrued assets and liabilities primarily related to oil and natural gas operations, stock-based compensation, valuation of derivative instruments 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 which 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. Due primarily to declines in oil and natural gas prices, the capitalized costs of oil and natural gas properties exceeded the cost center ceiling, and as a result, the Company recorded impairment charges to its net capitalized costs in its unaudited condensed consolidated statements of operations of $78.2 million and $229.0 million for the three months ended June 30, 2016 and 2015 , respectively, and $158.6 million and $296.2 million for the six months ended June 30, 2016 and 2015 , respectively. As a non-cash item, the full-cost ceiling impairment impacts the accumulated depletion and the net carrying value of the Company’s assets on its consolidated balance sheet, as well as the corresponding consolidated shareholders’ equity, but it has no impact on the Company’s consolidated net cash flows as reported. Changes in oil and natural gas production rates, oil and natural gas prices, reserves estimates, future development costs and other factors will determine the Company’s actual ceiling test computation and impairment analyses in future periods.
Earnings (Loss) Per Common Share	Earnings (Loss) Per Common Share The Company reports basic earnings (loss) per common share, which excludes the effect of potentially dilutive securities, and diluted earnings (loss) per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Revenue from Contracts with Customers . In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which specifies how and when to recognize revenue. In addition, this standard requires expanded disclosures surrounding revenue recognition and is intended to improve, and converge with international standards, the financial reporting requirements for revenue from contracts with customers. This ASU will become effective for fiscal years beginning after December 15, 2017 with early adoption permitted for periods beginning after December 15, 2016. Entities can transition to the standard either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact, if any, of the adoption of this ASU on its consolidated financial statements. Leases . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. This ASU will become effective for fiscal years beginning after December 15, 2018 with early adoption permitted. Entities are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. The Company is currently evaluating the impact of the adoption of this ASU on its consolidated financial statements.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
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 and six months ended June 30, 2016 and 2015 (in thousands). Three Months Ended Six Months Ended 2016 2015 2016 2015 Weighted average common shares outstanding Basic 92,346 82,938 88,826 78,379 Dilutive effect of options, restricted stock units and preferred shares — — — — Diluted weighted average common shares outstanding 92,346 82,938 88,826 78,379

Asset Retirement Obligations (T

Asset Retirement Obligations (Tables)	6 Months Ended
	Jun. 30, 2016
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 six months ended June 30, 2016 (in thousands). Beginning asset retirement obligations $ 15,420 Liabilities incurred during period 1,044 Liabilities settled during period (119 ) Revisions in estimated cash flows 1,662 Accretion expense 552 Ending asset retirement obligations 18,559 Less: current asset retirement obligations (1) (61 ) Long-term asset retirement obligations $ 18,498 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2016

Derivative Financial Instrume24

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2016
Open Option Contracts Written [Line Items]
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 June 30, 2016 and December 31, 2015 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed June 30, 2016 Current assets $ 4,316 $ (4,199 ) $ 117 Other assets 2,421 (2,421 ) — Current liabilities (13,959 ) 4,199 (9,760 ) Other liabilities (9,959 ) 2,421 (7,538 ) Total $ (17,181 ) $ — $ (17,181 ) December 31, 2015 Current assets $ 16,767 $ (483 ) $ 16,284 Current liabilities (483 ) 483 — Total $ 16,284 $ — $ 16,284
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 fair value of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Three Months Ended Six Months Ended Type of Instrument Location in Condensed Consolidated Statement of Operations 2016 2015 2016 2015 Derivative Instrument Oil Revenues: Realized gain on derivatives $ 561 $ 10,524 $ 6,024 $ 24,957 Natural Gas Revenues: Realized gain on derivatives 1,904 2,716 3,504 6,315 Natural Gas Liquids Revenues: Realized gain on derivatives — 540 — 1,013 Realized gain on derivatives 2,465 13,780 9,528 32,285 Oil Revenues: Unrealized loss on derivatives (19,319 ) (19,880 ) (26,974 ) (26,345 ) Natural Gas Revenues: Unrealized loss on derivatives (7,306 ) (3,281 ) (6,490 ) (4,843 ) Natural Gas Liquids Revenues: Unrealized loss on derivatives — (371 ) — (902 ) Unrealized loss on derivatives (26,625 ) (23,532 ) (33,464 ) (32,090 ) Total $ (24,160 ) $ (9,752 ) $ (23,936 ) $ 195
Open costless collar contracts
Open Option Contracts Written [Line Items]
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 June 30, 2016 . Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (Liability) (thousands) Oil 07/01/2016 - 12/31/2016 1,380,000 $ 42.48 $ 61.16 $ (2,091 ) Oil 01/01/2017 - 12/31/2017 1,560,000 $ 38.62 $ 47.62 (11,801 ) Natural Gas 07/01/2016 - 12/31/2016 7,200,000 $ 2.63 $ 3.61 (228 ) Natural Gas 01/01/2017 - 12/31/2017 14,580,000 $ 2.38 $ 3.48 (3,061 ) Total open derivative financial instruments $ (17,181 )

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
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	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 June 30, 2016 and December 31, 2015 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Liabilities Oil and natural gas derivatives $ — $ (17,181 ) $ — $ (17,181 ) Total $ — $ (17,181 ) $ — $ (17,181 ) Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets Oil and natural gas derivatives $ — $ 16,284 $ — $ 16,284 Total $ — $ 16,284 $ — $ 16,284

Supplemental Disclosures (Table

Supplemental Disclosures (Tables)	6 Months Ended
	Jun. 30, 2016
Supplemental Disclosures [Abstract]
Summary of current accrued liabilities	The following table summarizes the Company’s current accrued liabilities at June 30, 2016 and December 31, 2015 (in thousands). June 30, December 31, 2015 Accrued evaluated and unproved and unevaluated property costs $ 51,692 $ 54,586 Accrued support equipment and facilities costs 4,307 17,393 Accrued lease operating expenses 10,842 7,743 Accrued interest on debt 5,805 5,806 Accrued asset retirement obligations 61 254 Accrued partners’ share of joint interest charges 3,936 4,565 Other 4,111 2,022 Total accrued liabilities $ 80,754 $ 92,369
Supplemental disclosures of cash flow information	The following table provides supplemental disclosures of cash flow information for the six months ended June 30, 2016 and 2015 (in thousands). Six Months Ended 2016 2015 Cash paid for interest expense, net of amounts capitalized $ 12,226 $ 2,263 Asset retirement obligations related to mineral properties $ 2,511 $ 1,212 Asset retirement obligations related to support equipment and facilities $ 75 $ 41 Decrease in liabilities for oil and natural gas properties capital expenditures $ (3,476 ) $ (9,909 ) (Decrease) increase in liabilities for support equipment and facilities $ (11,565 ) $ 3,859 Increase in liabilities for accrued cost to issue equity $ 62 $ — Stock-based compensation expense recognized as liability $ 88 $ 583 Transfer of inventory from oil and natural gas properties $ 474 $ 456

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Weighted average common shares outstanding for basic earnings (loss) per share	92,346	82,938	88,826	78,379
Dilutive effect of options, restricted stock units and preferred shares	0	0	0	0
Diluted weighted average common shares outstanding	92,346	82,938	88,826	78,379

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Discount rate present value of future revenue from proved oil and gas reserves			10.00%
Full-cost ceiling impairment	$ 78,171	$ 229,026	$ 158,633	$ 296,153
Capitalized general and administrative costs	4,000	1,900	6,000	3,500
Capitalized interest expense	$ 1,700	$ 1,300	$ 2,200	$ 2,300
Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from earnings per share calculations because their effects would be anti-dilutive	2,900,000	2,500,000	2,900,000	2,500,000
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from earnings per share calculations because their effects would be anti-dilutive	100,000	100,000	100,000	100,000
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from earnings per share calculations because their effects would be anti-dilutive	900,000	700,000	900,000	700,000
Preferred Shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from earnings per share calculations because their effects would be anti-dilutive		0		1,500,000

Equity (Detail)

Equity (Detail) - USD ($) $ in Thousands	Mar. 11, 2016	Jun. 30, 2016
Subsidiary, Sale of Stock [Line Items]
Direct offering costs		$ 830
FOLLOW-ON PUBLIC OFFERING
Subsidiary, Sale of Stock [Line Items]
Direct offering costs	$ 800
Net proceeds received	$ 141,500
Common Stock | FOLLOW-ON PUBLIC OFFERING
Subsidiary, Sale of Stock [Line Items]
Shares of common stock included in offering	7,500,000

Asset Retirement Obligations (D

Asset Retirement Obligations (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Changes in the Company's asset retirement obligations
Beginning asset retirement obligations				$ 15,420
Liabilities incurred during period				1,044
Liabilities settled during period				(119)
Revisions in estimated cash flows				1,662
Accretion expense		$ 289	$ 132	552	$ 244
Ending asset retirement obligations		18,559		18,559
Less: current asset retirement obligations	[1]	(61)		(61)
Long-term asset retirement obligations		$ 18,498		$ 18,498		$ 15,166
[1]	Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2016.

Debt (Details)

Debt (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Aug. 03, 2016	May 03, 2016	May 02, 2016	Dec. 31, 2015
Revolving Credit Agreement (Textual) [Abstract]
Senior unsecured notes	$ 391,845,000				$ 391,254,000
Repay deficit in agreement period	6 months
Ownership percentage by parent	100.00%
Third Amended Credit Agreement
Revolving Credit Agreement (Textual) [Abstract]
Borrowings under Credit Agreement	$ 0
Outstanding letters of credit	600,000
Amount of conforming borrowing base	300,000,000		$ 300,000,000	$ 375,000,000
Senior Notes | Senior Notes Due 2023
Revolving Credit Agreement (Textual) [Abstract]
Senior unsecured notes	$ 400,000,000
Interest rate	6.875%
Subsequent Event | Third Amended Credit Agreement
Revolving Credit Agreement (Textual) [Abstract]
Borrowings under Credit Agreement		$ 0
Outstanding letters of credit		800,000
Subsequent Event | Senior Notes | Senior Notes Due 2023
Revolving Credit Agreement (Textual) [Abstract]
Senior unsecured notes		$ 400,000,000
Interest rate		6.875%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	6 Months Ended
	Feb. 29, 2016	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Shares of restricted stock granted	243,428
Options granted	608,287
Exercise price (in dollars per share)	$ 15
Grant date fair value of option grants during period	$ 7
Vesting period of shares		3 years

Derivative Financial Instrume33

Derivative Financial Instruments (Details) - Open costless collar contracts $ in Thousands	Jun. 30, 2016USD ($)MMBTU$ / MMBTU$ / bblbbl
Summary of contracts for oil and natural gas
Fair Value of Asset (Liability)	$ (17,181)
Oil, Calculation Period 04/01/2016 - 12/31/2016
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) | bbl	1,380,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / bbl	42.48
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / bbl	61.16
Fair Value of Asset (Liability)	$ (2,091)
Oil, Calculation Period 01/01/2017 - 12/31/2017
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) | bbl	1,560,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / bbl	38.62
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / bbl	47.62
Fair Value of Asset (Liability)	$ (11,801)
Natural Gas, Calculation Period 04/01/2016 - 12/31/2016
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) | MMBTU	7,200,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / MMBTU	2.63
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / MMBTU	3.61
Fair Value of Asset (Liability)	$ (228)
Natural Gas, Calculation Period 01/01/2017 - 12/31/2017
Summary of contracts for oil and natural gas
Notional Quantity (Bbl or MMBtu) | MMBTU	14,580,000
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / MMBTU	2.38
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / MMBTU	3.48
Fair Value of Asset (Liability)	$ (3,061)

Derivative Financial Instrume34

Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Oil, natural gas and natural gas liquids (NGL) derivatives	$ 0	$ 16,284
Summary of gross liability balances of derivative instruments
Oil, natural gas and natural gas liquids (NGL) derivatives	(17,181)	0
Current assets
Derivative [Line Items]
Gross amounts of recognized assets	4,316	16,767
Gross amounts netted in the condensed consolidated balance sheets	(4,199)	(483)
Oil, natural gas and natural gas liquids (NGL) derivatives	117	16,284
Other assets
Derivative [Line Items]
Gross amounts of recognized assets	2,421
Gross amounts netted in the condensed consolidated balance sheets	(2,421)
Oil, natural gas and natural gas liquids (NGL) derivatives	0
Current liabilities
Summary of gross liability balances of derivative instruments
Gross amounts of recognized liabilities	(13,959)	(483)
Gross amounts netted in the condensed consolidated balance sheet	4,199	483
Oil, natural gas and natural gas liquids (NGL) derivatives	(9,760)	$ 0
Other liabilities
Summary of gross liability balances of derivative instruments
Gross amounts of recognized liabilities	(9,959)
Gross amounts netted in the condensed consolidated balance sheet	2,421
Oil, natural gas and natural gas liquids (NGL) derivatives	$ (7,538)

Derivative Financial Instrume35

Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized gain on derivatives	$ 2,465	$ 13,780	$ 9,528	$ 32,285
Unrealized loss on derivatives	(26,625)	(23,532)	(33,464)	(32,090)
Total	(24,160)	(9,752)	(23,936)	195
Revenues
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized gain on derivatives	2,465	13,780	9,528	32,285
Unrealized loss on derivatives	(26,625)	(23,532)	(33,464)	(32,090)
Oil | Revenues
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized gain on derivatives	561	10,524	6,024	24,957
Unrealized loss on derivatives	(19,319)	(19,880)	(26,974)	(26,345)
Natural Gas | Revenues
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized gain on derivatives	1,904	2,716	3,504	6,315
Unrealized loss on derivatives	(7,306)	(3,281)	(6,490)	(4,843)
Natural Gas Liquids | Revenues
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations
Realized gain on derivatives	0	540	0	1,013
Unrealized loss on derivatives	$ 0	$ (371)	$ 0	$ (902)

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets (Liabilities)
Derivative Liability	$ (17,181)	$ 0
Derivative Asset	0	16,284
Fair value on a recurring basis
Assets (Liabilities)
Derivative Liability	(17,181)
Derivative Asset		16,284
Total	(17,181)	16,284
Fair value on a recurring basis | Level 1
Assets (Liabilities)
Derivative Liability	0
Derivative Asset		0
Fair value on a recurring basis | Level 2
Assets (Liabilities)
Derivative Liability	(17,181)
Derivative Asset		16,284
Total	(17,181)	16,284
Fair value on a recurring basis | Level 3
Assets (Liabilities)
Derivative Liability	$ 0
Derivative Asset		$ 0

Fair Value Measurements (Deta37

Fair Value Measurements (Details 1) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Senior Notes Due 2023 | Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of notes	$ 412	$ 381

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Oct. 01, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments and Contingencies (Textual) [Abstract]
Natural gas processing and transportation agreement	15 years			5 years
Minimum delivery commitment to avoid paying gas deficiency fee				80.00%
Undiscounted minimum commitments		$ 2.1		$ 2.1
Transportation and processing fee under the agreement		0.8	$ 1.4	1.7	$ 2.7
Drilling Rig Commitments
Commitments and Contingencies (Textual) [Abstract]
Maximum termination outstanding obligations of contracts		43		43
Construction Contracts
Commitments and Contingencies (Textual) [Abstract]
Maximum termination outstanding obligations of contracts		4.6		4.6
Payments made under contract		4.3		17.8
Outside Operated Drilling Commitments
Commitments and Contingencies (Textual) [Abstract]
Minimum outstanding commitments		4.2		4.2
Loving County System Agreement
Commitments and Contingencies (Textual) [Abstract]
Deficiency fee required to be paid				8.5
Transportation and processing fee under the agreement		$ 2.8		$ 4.7
Term Of Old Contract Drilling Rig
Commitments and Contingencies (Textual) [Abstract]
Purchase Commitment, Description				1 year

Supplemental Disclosures (Detai

Supplemental Disclosures (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Summary of current accrued liabilities
Total accrued liabilities	$ 80,754	$ 92,369
Accrued evaluated and unproved and unevaluated property costs
Summary of current accrued liabilities
Total accrued liabilities	51,692	54,586
Accrued support equipment and facilities costs
Summary of current accrued liabilities
Total accrued liabilities	4,307	17,393
Accrued lease operating expenses
Summary of current accrued liabilities
Total accrued liabilities	10,842	7,743
Accrued interest on debt
Summary of current accrued liabilities
Total accrued liabilities	5,805	5,806
Accrued asset retirement obligations
Summary of current accrued liabilities
Total accrued liabilities	61	254
Accrued partners’ share of joint interest charges
Summary of current accrued liabilities
Total accrued liabilities	3,936	4,565
Other
Summary of current accrued liabilities
Total accrued liabilities	$ 4,111	$ 2,022

Supplemental Disclosures (Det40

Supplemental Disclosures (Details 1) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental disclosures of cash flow information
Cash paid for interest expense, net of amounts capitalized	$ 12,226	$ 2,263
Asset retirement obligations related to mineral properties	2,511	1,212
Asset retirement obligations related to support equipment and facilities	75	41
(Decrease) increase in liabilities for oil and natural gas properties capital expenditures	(3,476)	(9,909)
(Decrease) increase in liabilities for support equipment and facilities	(11,565)	3,859
Increase in liabilities for accrued cost to issue equity	62	0
Stock-based compensation expense recognized as liability	88	583
Transfer of inventory from oil and natural gas properties	$ 474	$ 456

Subsidiary Guarantors (Details)

Subsidiary Guarantors (Details)	Jun. 30, 2016
Subsidiary Guarantors [Abstract]
Ownership Percentage by Parent	100.00%

Related Party Transactions (Det

Related Party Transactions (Details) $ in Millions	1 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)ajoint_venture	Jun. 30, 2016USD ($)
Corporate Joint Venture
Related Party Transaction [Line Items]
Number of Joint Ventures With Affiliates | joint_venture	2
Acreage Contributed By Joint Venture Partner | a	1,900
Percentage of Corporate Joint Ventures Owned BY Joint Venture Partners		50.00%
Capital Commitment To Corporate Joint Ventures	$ 14.2
Percentage of Corporate Joint Ventures Owned By Matador		50.00%
Capital Contributed to Corporate Joint Ventures		$ 0.7
HEYCO Affiliates [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Amounts of Transaction		$ 1.1

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Millions	Oct. 01, 2015	Jun. 30, 2016
Subsequent Event [Line Items]
Proceeds from Divestiture of Interest in Consolidated Subsidiaries	$ 143
Natural gas processing and transportation agreement	15 years	5 years