Matador Resources (MTDR) 29 Apr 212021 Q1 Earnings call transcript

Company Profile

Participants

Mac Schmitz	Capital Markets Coordinator
Joe Foran	Chairman and Chief Executive Officer
David Lancaster	Chief Financial Officer
Matt Hairford	President
Matt Spicer	General Manager-Midstream
Scott Hanold	RBC Capital Markets
Neal Dingmann	Truist Securities
John Freeman	Raymond James
Gabe Daoud	Cowen
Gail Nicholson	Stephens

Call transcript

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Operator

Good morning, ladies and gentlemen and welcome to the First Quarter 2021 Matador Resources Company Earnings Conference Call. My name is Sarah, and I’ll be serving as the operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes, and the replay will be available on the company’s website through May 31, 2021, as discussed in the company’s earnings press release issued yesterday. I would now turn the call over to Mr. Mac Schmitz, Capital Markets Coordinator for Matador. Mr. proceed. may you Schmitz,

Mac Schmitz

Good Matador’s and conference first Sarah. joining call. you us for quarter morning, you, thank everyone, for Thank XXXX earnings

measures release. financial performance. at the Reconciliations Some certain such are non-GAAP Resources today contained presenters with of in measuring regularly the company’s accordance measures financial GAAP comparable in financial of of Matador calculated used earnings the company’s will the end financial press by measures the non-GAAP reference with

this in forecasts morning’s may a based reminder, future included As differ from company’s now or statements and events forward-looking expectations on is materially the and those of presentation reflect Actual that certain be events results anticipated available. could statements. the in current information future such

factors materially could to report earnings that the company’s on results actual is and in concerning its recently differ release cause Form Additional most quarterly contained information XX-Q.

slide remind website. the call Chairman like Joe? you the Mr. in now can release, to I release corporate earnings tab Finally, would Investor to turn a like our in would over earnings Joe press under Relations to and on everyone that addition Foran, quarter XXXX presentation our to I CEO. connection our find the first with

Joe Foran

going make moment everyone. in I first, a turn Mac, appreciate operator earnings I’m your for conference Matador the to you, your in the And call. call take points. to a time good Thank to few morning participating questions. and much. wanted to very We you back thank in today’s to and quick But interest

quarter, were X.X. and leverage we’re today of good noticed about progress First, end X.X to our we continued and fourth the At all make as you the borrowings. ratio that we’ve at on

tax. well, time as not fracking are is greatly way much hitting we but us. revenue, and have on left sales they’ve But them owner efficiency we of the and dramatically. from all royalty like But work reduced severance up on costs down come efficient want to our share, takes reduced we of our even dollar about each cost and their to with dollar. more you Second saved down to use extra you’re the process, vendors side, goes so get dollar every know, government on his the our bottom importantly, we And more with these the costs and generally worked the when make and beating we’ve them, And every to tax, substantially and and with takes for which revenues and cooperated commodity have the we keep. operations thank as effectiveness, the appreciate we our vendors our line obviously XX%

of difference. that’s So a the part big

Matt it field, in a pandemic, I and past been weather, to in through our the all you’re like contributed on. that the bedroll slept at way to when main that will at schedule has and our up we’ve great. has to When the coming it’s them. the keep basing been groceries a new up keeps were are speak here went in zones. truck Ford different threw of just and work the on a loaded Same my it Delaware XX up the plan the over on area, San there to was be there drilling from Finally, for of group through on probably tops zones. with to the to by and prices and we question zones a year year, with production we to from Mateo XX effort. waiting with across understanding ready we’ll spectrum made with together the in worked geology the our the so a trucks on the the guys end the Everybody years teams and challenges three Matador and total sometime were we producing their way lot have turn team stress the Eagle here likely and costs Today, in a hear think And that ago together they’d lot few wells, production out working on been and is,

as truck on all water, to or the top, having for were which our weren’t the the we oil line. was bottom gas it, including ESG So out well of as good the

let So operator the for with may any that the to me back that, have. call questions turn you

Operator

Markets. is first Capital Scott from with Instructions] RBC [Operator question Hanold Our

is line now Your open.

Scott Hanold

and longer quarter. wells. give on you in then on Are in what management? some from wells and expectations you. than or Can a obviously some us reduction performance well have can holding those pretty on color are what cost give dramatic that things? on Boros for And are little teams the with Is expected. that because holding is there cost to along longer these pretty that quicker the these on laterals. like I plan and on know first of the question and Can the on My you sense us to It’s leverage tried some cost replicate future a forward. you of expect see bit good the color simul I side, maybe they came well of performance recent replicate know seen all wells, to some wells Thank the the lateral the the strong like going federal better based have Congratulations drilling? you in Voni plan something fracs some good. reduction coming some

David Lancaster

Matt exceptional think of I about performance little But some wells. step side. we’ve question is been extremely side I’ll that over frankly – Stateline then to And I’ll Yes. and pleased at production This Scott. we’re and those in and take Good the Rodney Look, all the the with talk ask the fracs. the have I drilled the mean, wells basin. the Robinson a in David. well costs morning, bit

Boros in past this very The – a continued Boros was continued million year I to that others of just be attributable of had about to have to correct. as and reserves are BOE and wells Rodney’s the recall to as wells our lot We have revisions that due well do X upward about strong. as You some increase well.

first I million think, production. those X.X of we made shareholder months letter out, already something about quarter, wells talked like in when the put how the had of the little we a first the six BOE XX

very they’re hanging So there well.

off pleased the are think very to I a those. Voni very with start, so wells good very,

better anticipating be wells. than So will actually those probably Boros wells a we’re the that even little

the on don’t kick back EURs see going be the excellent, from would are although wells. forward. those my prediction that we – see laterals in proportionate wells – you always longer piece get think that we’ll we’ll And history these the I as increase more see the little the

now. So, all good right

cost? you about the talk Matt, to So want

Matt Hairford

Yes. Scott. Good morning.

really costs drilling and excited We’re related about and the both. probably excited most completion efficiency about to the

little So this, kind laterals. over drilled X of just now these mile XX on we’ve a of background

completed on last of to So, foot better we we’re year, back were getting look drilled of per in summer These about of to Voni And XX. first like the the kind that. we just at as wells what wells lateral spent we that $XXX Boros round point we if Scott, go. I’d

thing quality don’t on one most doing cost. And And I us the will that. any XX% sacrifice to say just so, important that that’s XX%, is we in better

right the Our Billy to up before They’re out hit of just records. MAXCOM XXX it me morning, the this team earlier call, it thought tells to continues And was park. I and – XXX. it’s drill

MAXCOM and to Scott XX% or so tells it’s wells, we that point before first call, related And calculate right records. zone the they’re of well Boros it They’re we the over in wells And a $XX was XXX. probably morning, that’s just well and thought time. of I’ll cost a XXX it’s just not one Voni million And this just staying the Billy – well, the finished the I just me savings up to it’s Boros to XX%, later drill

later finished, well XX.X. savings staying about The first previous that XX%, in it’s Scott zone days $XX it’s And well, and on XX% And was – Wolfcamp well. so to the the cost we to they’re calculate just million of about just time. point it not or Boros probably related Boros it’s that I’ll B wells record XX a we the over MAXCOM of in a wells, did just the Voni and one guys Boros the the

said $XXX,XXX per that’s So the about they if $X.X savings. contemplate day, XX.X And days being past, that that’s million as saved. you in that we in

XXX park to feet couple efficiency a they there, the averaging day. per it feet we improved So were out And the side, completing say we’re XXXX, let’s And per feet there. or side. on We average finished we knock Stebbins up Ted of day. about our we’ve on X,XXX continue day. year, per the completion And X,XXX just wells this wells of drilling

that from So, of different to a the ways. going service pump realizes they’re helps more day. company that to one, stages us get Number per frac couple

into adjust trailer rental all were their for they and the that costs that supervision, there. And less so out we equipment, items they paying daily wellhead have

we’re modified So back team procedure dollars. thousand in equipment their saving, and Glenn flow using they’ve come hundred where several and his less

So just them anticipate team And and keep all, better. we’ll a great we in them just faster all that drilling it’s just effort. completing

Scott Hanold

going went color frac. it’s little and a that on simul applicable that give you forward? can Matt, Yes. on the doing if How

Matt Hairford

It’s be for well the Yes. pads Sure, pad. for full have good remaining a year, really probably it pad, the four well which Scott. XX% a tool of we will

about we’re $XXX,XXX. we about $XXX,XXX that Our first actually that saving well, save experience we we would calculate anticipated per

to feet simul off day we’re a around per We averaged with frac. So good start. X,XXX

as I a looking XXX stages. and home crack Voni’s of we forward. Voni’s for work. so it’s on we’ll hitch out first to the improve Boros a the X,XXX the there that That’s box, between run without it’s there frac a and think go stages of be lot And

Scott Hanold

targeting we economic. obviously, some my to what’s see up you forward, and to pretty impressive. And better it that be once go first? you really comes think into Like feels like, strategy a kind That’s zones hear start most me XXXX And we how forward? guess, potential XX, are of of let finding follow-up my into refining, zones question year. think going and should about development that like zones, of you question But as do from about Joe, Or I guys, about how this a the maybe as and strongly of strategically Matt. looking you you start going we kind should are to you that can XX is Yes.

Joe Foran

Yes. still while And pace. that – there’s let Matt from specific. one went we plenty But public this first say zones XX guidance time more put of the the going our first cap. abundance a after key proper Matador’s an Scott, approximately overall XXX and to go measured get at by rigs, market of bottom really I’m companies EMP part to is then growth there, we of the went is, down largest of

leads them ideas to so that testing to the those managers, your many geological worked just give to up well to of the coming that liked pace pretty Matt And out as zones tortoise we’re have with we a Matt. thanks drill and thanks we’ve and ahead, team more And these credit test wells coming enough up Many asset staying to build It’s kind has being you than of Go the to Matt of confident hare, multitude ideas. at been the profitable. that and and measured fresh ideas. for and a stay affirming but able asset keep a to enormous and we we for losing in teams group helped out. good Matt squeeze

Matt Spicer

really the together and of working then lot in effort land But And mean, Joe. team team to these it group a and a ways GSI here. getting full the put it with the to focusing what legal started together those targets. Wolf we’ve the identify those Trent you, starts then kind of with into really Thank those team lot Breaks how units is this the I done and hats and engineers out of his the to great push and we and and pushing is on has area for x with y assets, off sands, a and worked Stebbins our success. asset early up in Goodwin Rustler

what and The that the First kind push kind us. to of there’s it’s basin. a really of we flying been we a of has speak us And really Bone. Rustler one well, continue mind zone cast think now. look been letting in is winning you’ll lot themselves a and now that left radar right things keeping But and a well open do approach the the and for around So for the under zones at to the an rocks like basin, right Breaks see just I that’s this great but basin, ray around the we to how

see us keep So you’ll that. doing

Scott Hanold

color. good That’s it. Appreciate

Joe Foran

Thank you, Scott.

Operator

is question Dingmann of Truist next Neal Our from Securities.

open. is line Your

Neal Dingmann

if you Good doing Thanks the time. share? even of more morning, for Joe, your to you point, of a great and lot even probably continue y’all wondering, wondering I’m is growth? as by or the let’s at what for pay possible job I hit maybe of job consider Or this are likely a way. maybe now. external, goals, with David, the you X – of all. to that you plans first think would And debt just that, lion year guys prefer you think shareholder I question I maybe do obviously schedule? a ahead ahead hitting that of Just Nice the very my wondering Would which what target you I’m would down sort were us y’all say think robust that return. consider once perhaps get on times, consider internal leverage thinking

Joe Foran

look the Yes. them three meet we in-person one three that’s consider our what of where at that get to Neal, road they can of of parts hear And as or by of alternatives. doing the and all and consider thoughts, COVID analysts to with are on of those, well and they the back in we’re and that so come we’re get three some those the And from meet as going itself things hear can will your think. all of shareholders together companies and few what ease with discuss may want other those. candidly, hoping we all

on might So not have one. you concentration

and our dividend. some You reduction paid look, raising we first the But here. of dividend debt may have some just of

little So was give us a break. just XX That days ago.

Neal Dingmann

Joe. the next, I was waiting for

Joe Foran

have make to and reduce far we’ve work be it’s – it tried not anything, That’s to we’re rigs to So time profitable around And quality they Cliff And had to three, that here where look they to turn growth. lot the raise three it’s wells. it’s say, And advantages add cash in San Rodney an the us? the Boros at sense. as sense, a or guys still growth on. take its part three value wells high that for to been I when our any for rush of targeted on have really have Mateo And was growth’s Robinson can not not ready I any to or sake, don’t always those why to do problem, the were Chris responsive. going of put they’ve So midstream the those does really the If any operational to does but outside out company, flow add contributed a because I or big only it is, Matador. – value? continuing and and San EBITDA, and that’s got we when as the we’ve of efforts to a left flexibility Mateo, completed they’re of not this the might class to us had want nice it’s waiting the them but

and us the they’ve ahead James. Greg Spicer So Matt joined midstream Hairford and and really Matt we’re and joined that glad us really pushed

all lost it’s so has really And hand integral helped other. the one and

Matt Hairford

to want just Joe, add to that.

for was to the and there that onto EEE area runs Black We with lot Specifically happened the fee of to They get to had done process it permits Rustler Mateo been got and there of lot to we’d if with it got Otherwise, is was sitting and and two climb of which produce. and work, was approve folks it come have. well lot COVID in people River a people drilled and Stateline. we and the we permitting think San mountains line put wouldn’t state, and it gas and not waiting a done I and call time. got have the and BOM, to to beyond. the which what it above went when weeks, trunk plant on They a people and pipeline, work from completed and coming just work that that quit crews almost lot to Breaks a done months, certain of

it So, was [indiscernible]

Neal Dingmann

X love are undrilled given Thank That’s big in Rustler Stateline, opinion, others. Matt. hear you in guys three. to all to you, Breaks hear Really question like areas great, and on broader key think is perspective just Yes. And on guys terms, Tier about Joe, And such holders. my inventory locations how last your you interesting guys. left your

Joe Foran

group and we from up. executive whole important also influence stock big made David ownership. the And and say, owners culture. that that’s and definite the up a lot do When We true part it’s our Neal, we compensation. more we us are stock of our the a and from salary with then Matt going has $X.XX that bought going especially I Billy, and our stock

We other And year to interested when you’re the that. stock going pandemic and to the of our were the stock being worst we’re expect price in staff and be more, last the was and buying part out again, think war challenged pleased, it the there we in times interested. had And and I of then interest tell so – got that over XXX And time. of this year. the second during pay buy is that off me staff get stock I the be

David Lancaster

inventory. The

Joe Foran

and David’s to for [indiscernible]. us Congratulation re-innovation. is the inventory Yes. The talk

we $XX kind And, barrel. we’ve plenty Dave that drill but And above talked that’s more those was lot got we of the come XX% give all last it’s mean, that. X-plus a XX, to, different rate dated of the locations about. it’s is semi a but Well, I now, But We one looks locations. you businesses good. numbers would define these really added when it, is, that at but locations. And thing down hadn’t on is a locations. we return or believe we’re to of zones XX that of thousand we inventory what are have those a redundant So really X-plus helped year wells.

we our right and XX. locations So it emphasize and those inventory got. We a our we’ve today’s it X-plus in out you of he on ahead, put finger you That’s meetings. world, to let’s why still his if but locations, in to for liked one on going shareholders have we any And XX-year call getting of talking sometimes. years got really him think you’re struggle at X-plus that plenty say don’t

lock trying of that we’re wood. curve building right but we’re that to working that now our chances. we’re So and of drilling on that Thanks, And keep the that we to Joe. answer, Great It’s ahead going. confident stay guys. and touch depth staff

Joe Foran

Thanks, Neal.

Operator

you. Thank

of comes next Freeman from Raymond line the Our question of John James.

now Your open. line is

John Freeman

expectations. Good question. another bit on Congrats came of of below this in the I But I a cost Scott’s Obviously, all you so all’s on are morning guys. far loaded here. following-up earlier the little ahead a it questions CapEx great the on looks just side, is XX% guess game like, you quarter. just

the This quarter, been wells you’ve for XX% year turned to your sale that foot. that have a $XXX already had of

all of the all original have for And like be about the basis. looks realize in XX% half the wells foot those foot expecting had per you’d And them inflation year, that of for service you year the year. be XX% I cost look a $XXX of kind so it on at the I you some to guidance when back on up remaining

about you just goes Stebbins just phenomenal a it’s just but explained terms all want front, that online. another. a was it And CapEx we that wells that Greater on you summer efficiency just please? maybe should looks point where come those this wait to it, that on else think are to as just of anything in what initial on So like all into assumptions, simple anything if you as There there’s costs the are trends, for but some of job side. you And then evaluate at maybe doing for

Matt Hairford

Yes, have I’ll I’m the Matt. Dave John, sure, is comments this your some question. will answer too. part of

would do the and to count we’ve think biggest mines little You’re seen that talk of one assume down job, pretty I a be demand. mines sand, their we’re to increase there’s And and We XX% cost supply right. kind a Number in in components is, two went the saying bit buying the the we’re starting of good price from The XX% sand. of there see regional thing just and costs then up of Probably that. that the the And kind to about in that. rig to of reduced production. the Texas.

to had that the the capability to in and cost up. that some So Consequently, the get some directly with other point fuel they is I probably prices. sand is And will, there. is think they price increase time, to at which probably help related of the crude location,

thing And is that’s a necessarily us. so bad and diesel not up, for

also that horsepower We folks pressure of to looking sort in just going on future. that are the be things side some increase pumping for think of probably the the

that of to those point those or wells and there. will aquifer in we’ve Ranger, up areas, Area the Arrowhead into extra a due up built so kind string And the – lot the casing require too, about but Stebbins to of your an wells

budgeted. So ones those we the little inherently wells are under to that have more drilled far expensive we’ve what drill been a actually so

but well the that account So there, doing we’re would for you’re the at. some of in that cost discrepancy looking

David Lancaster

Yes.

is number this new of those wells David, a are too. John, pads think, I

slower predicted the of Not will in into first because quarter. some probably have quarter the year bit but going too. just even the we with so costs are a the push I little than the some Very issues in but came was think did early there. there some jump be on their a So first to side, the much out we non-op how – to and of timing little second higher little it’s happy do that we we a in do stuff costs quarter, our

we looked So it. we just, at

But that we’ve any very the need well kind of where are for look now. We’re are think right it good. And got things changes. we before pleased looking at pretty being we another and making also consider quarter range to probably

Matt Hairford

I in cost And things that XX% on clarify, that X% John, profit X% completion there. up increase this of just thing X% the ends costs is being Matt I of want or again. AFE know, up cost. said the one to or I the with X% don’t about

So it’s terribly not impactful.

John Freeman

front, really of seen planned maybe part then little you’re That’s upward bit possibly in you be price budget, a we’ve that net bias in If get no-op the maybe was the of would mentioned out on an ask And given wells the seeing wells anything just that, the the the sort in how That from activity they side, the were upside of was cost if seven the started going helpful. the on if that think of maybe my follow-up, there coming slower. sort seeing commodity, budget. on kind if or original was were some on of I might that the David, on will just that you non-op costs other non-op trending either you about, side? to all had side, planned non-op anything

David Lancaster

we’re think for the don’t of additional I know going non-op lot a year. have we now, to that Right John,

the completed. so that the turned know sales, quarter I completed on. just thought and in there. for quite get to or We are were there reason, didn’t think first or get few know just partner, four that five being going those So we were But they’re come would to – there we a some wells

too of a think amount so about so of think of where the good terms we say, maybe a like But pretty uptake, It’s seeing tiny just few right but activity, not is. of I slid. And total them I kind number just now feel in I much. that

coming still half still but I we in to You anticipating, were expect slid in first a the seem cost costs the a on bit back And are so know little think too we better think I quarter. than little that. to see helps that be that the bit, what side,

John Freeman

I Thanks guys. appreciate it.

Operator

comes Instructions] line Gabe [Operator from next of you. Thank with the Our Cowen. question Daoud

open. is line now Your

Gabe Daoud

obviously, bit with last at another the just or business like relatively received a permitting Maybe just the the if if it’s usual? update. process, since Could the It you nine it’s as on if moratorium. still how starting some you color maybe resumed it’s processes all, looks since set elongated changed

David Lancaster

David. we reported, the Yes, local office now, lifted has rights to in this about month the Carlsbad Gabe. since in lake. pause It’s approve away sundries Well, returned us as the permits a the was case, the and ago to authority for in

a we drilling. to pleased through line gotten we’re staff’s so to the very get And that we’ve the through system sundries go were see that of cooperative over and to that the wells new permits the number been of kind and needed we ongoing support

forward. things opening going them, nine I we’re – how think across. and I that see to friction continue the bit. we’re to still optimistic to back more sort news see, of do little think we’ll forward encouraging going little and permits And be optimistic it’s in that up to pleased a a we’re to see but think I there’s cautious. cautious So get it going system But things may was new come impact we’re still certainly, if

We’re still hopefully, to but say see, is know in is move don’t the returned direction. yet, that normal it’ll we can fully I process watching to that

Gabe Daoud

help inventory. know Could through drilling David, portion moving fourth correct interest us you’ll guess about I pace then the you. And March. even the rig you. Thanks, moving just significant of be Matador throughout forward. you the just levels activity for in David. you, hitting XXXX, Obviously, Got higher or I think XXXX? into Joe, And working maybe just added Got on follow-up,

guys. of working to So sense to kind high additional those an you trying interest to just if rig Thanks a need backfill of loss locations? would the add get of,

Joe Foran

try, But do and David, plans happy claim Gabe, add we another immediate is that. so. to when then Well, multivariable to no there back a I’ll you rig, that’s question might about tough

come to watch in. We’re how going costs

in. come going the We’re revenues to watch how

how And the sundries permits opportunities to watch we we’re and how pace and XX just adds those come on the rig days federal’s the of go the And to like. going all got their approves that. in. We’re into in going things And watch ago. there’s

So we already loans reason But pleased. how might got why our through on we to see were our committees been We’ve one that’s out. bank loan. work that

So approved no a that in right of flow we real group I’m but and cash we changes. then advantage our now, having have member have the unanimously that’s pleased And loan XX credit plenty of banks were, credit. it our of as line

full we we’ve got time more We plan But debt a But right and to pace making get we as And right before right by little keep their it It’s change. want plan it time down. to now. the go we up. also that ramp could the confidence. have let the so now,

is the have that’s we’re gone great is, first We So priority. then And one the third growth. got opportunity our and second set. paying dividend the

Most we our So federal acreage be afford patient. HBP. couldn’t of now to is

I think something like XX%.

for to So as eight rest optional the that overwhelmingly run. years federal acreage of part most that and becomes after the the

have to at lot we David? So and of But strategies. option play. that’s good a time cards different can look we think we

David Lancaster

go, changes, perhaps is we’ve locations Stateline the interest how add, probably it would year that get those as end I be there’ll good drilling wells been the we’ve about question on Robinson, drilling – up it only still that got of ways we’re some closer next working before the just we to certainly I Gabe, of true think currently. to the – finishing are the that year. be But clarify, late in the a your higher the to many Joe, Rodney working making would thing drilling or or interest,

us take it’s go back – going we and through to decided move to other off a areas. of on So those and locations while work to should say even just to we some some those

I capital think before talking the ways a that from kicks even maintaining in, about, – of kind level, in same efficiency, you’re happening. still that terms we’re what of the

Gabe Daoud

and that Thanks a guys, quarter. for that. Understood good clarifying

Operator

Thank you.

Nicholson Stephens. Gail Our last question is from of

is Your line now open.

Gail Nicholson

the in quarter what impact storm? quarter? despite from morning. first the February. LOE the What the on to for lead want LOE, talk about set record this Can quarter storm drove was a the Good performance you in the LOE I

Matt Hairford

is to This is I the Gail. answer Matt. your question And efforts. Sure, think

San summer, that side, that’s the the water of every oil, on started start preparing weird and do transportation salt but also salt when piece for that’s processing and guys, gas exposal only ready August, yes, water Our Mateo but and gathering. getting not kind XXX gathering degrees we getting July it’s for in sounds you we Matador and which in the winter, and

early. it starts So

that I that costs is helps his And but Glenn They on and team, the just we of the XX% water little produce on so produce of they’ve XX% a that got bit, get oil spot. we spot. down, think driving is

I I’ll making trucks, thing before one So different they work. don’t the whole that getting Then approach. trucks. folks. there gotten a perspective, all their were slept a helps out said, said to their of bunch they this I this and And from the and in went and they’d took They Winter Joe. front just they out And working and of a communication constant guys lot, think were operators of him, a with things think our lot the disagree Uri, Mateo things a they in grocery they did he with cost but Storm and we in other store San slept Joe groceries packed

this Dallas, the we – gas marketing the that places team our They’re markets We’re gas markets. doing found then sure they’ve in the run. out making point here sell to manipulated And didn’t to found manipulate home, same the and a thing. make

Joe Foran

That that, you, may was of – kick Gail the sound Dave.

Matt Hairford

to nominations, got right. our make were our product And the watch that They then sold. we got markets. sure They able

the So we’ve the been ever had. worst quarter ever what we’ve conditions first with had for best the weather saying, Gail, team, kudos I’ve

team. think I entire to off hats So the

Gail Nicholson

future Great. And And XXXX. Can Mateo’s then repayment the for what on generating are its the San flow, San San you we XXXX what Mateo talk of just cash Mateo San plan facility? Mateo credit should growth forward? about in drivers the throughout regarding the then is growth see EBITDA side, free

David Lancaster

specific next Well, to San add years And Matador certainly I Mateo. at higher XXXX. to the ones. think Area is be couple I’d are in significant XXXX drivers drive for Mateo. two growth have over well. and third-party Mateo will growth to a say Stateline in the the of expected San Number one going key volumes cash both the Stebbins forward, the continue for And as and that effort volumes that I a also volumes San and flows and increase higher And we revenues ongoing and expect we will continuing third-parties

the drivers. would are I say those primary So two

a free have of those the I’d San in costs guys flow San last Mateo. throw I also better the I done, from over several also And nice cash also Mateo just think job that’s team, reducing the contributed that very think to operating quarters. fact

since I the regard good. So With we credit in repay to Mateo $XX all million did think April X. facility, that’s San

the paid don’t as rapidly the debt facility credit a moment I there. we’re repaying down that where at bit. with concerned think So little

the San focused is into San I we’re X on of merger think X additional Mateo Mateo what more the collateral. and and given

have take maybe something here Gail. to looking that event the credit size of commitment to that terms just in electric in look forward. facility the and sort the commitment as we better that are improve going of expand on the pretty and objective facility We little we’ll And of need quickly, a probably that’s the bit a

Gail Nicholson

so quarter, Great. Great much. you guys. Thank

Operator

ends to management to this gentlemen, the portion and this over like Q&A ladies of call. the conference closing you, any turn morning’s for Thank remarks. I’d call

Joe Foran

on way. innovations the ones the didn’t we the whole optimistic, nature We the liked we your Sarah. very the bottom and and in a we And good you, staff are to Thank questions the appreciate to feel Really, us. top questions, material that, thought appreciate get substantive to effort glad we and innovation. into I the on And but of shouted following see the a the Billy his rig substance of fourth rig there good to up that, were I’d paid by done was some were, is came And art and technical designed off. already there’ve start. of a real state rigs side. the group – is with off that other that The some way and been note that on contributing

worked the up the techniques And So well. well. fracking the that and guys on the same are thing come plants running fracking, has with

everything challenges So been feel the is but much it’s work year to fallen when these stock some working. staff challenges. great I’d sure a will kept groups. and is and we through the this our the And come it’s XX standing spring. XX because a afternoon, had And as different that last despaired, went committees happen that it stronger no we’ve they in this this by just did one. they through And was as then changes, we And down reservoir it they out exactly that effort of get than say to ago And approval. rallied. and and bank appreciate them renewed with lot again about that We year Nobody time a nobody three the credit it’s moving quit. us it, different almost

everybody, we think how So just strong, us. we want very generate to outlook and I And know shareholder everybody more it. much that’ll we group, say just the for appreciate is opportunities

by have again. again, we’ll and staff love and to So come We’d us visit. of to a meet the our sign-off. come And as invite up have you longer of you once more see opens nation any

David Lancaster

guess, June is. And on X, particularly meeting shareholder the I annual

Joe Foran

report we’re again. the under having get me out – normal with and on annual X. sent annual and the really yes, that back you’ll kicking we’ll for we come David, the We’ve June meeting to table you, Thank hope

thanks see lot. Come So a us.

Operator

program. gentlemen, This and you thank Ladies today. the for concludes your participation

now You disconnect. may

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