Matador Resources's Business Segments

We are 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. Our 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. We also operate in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. Additionally, we conduct midstream operations primarily, as of February 17, 2017, through our midstream joint venture, San Mateo Midstream, LLC (“San Mateo” or the “Joint Venture”), in support of our exploration, development and production operations and provide natural gas processing, natural gas, oil and salt water gathering services and salt water disposal services to third parties on a limited basis.

Matador Resources Company Overview:

Matador Resources Company, a prominent player in the oil and natural gas industry, operates primarily in two main segments: Exploration and Production, and Midstream. The companys strategic focus has been directed towards unconventional plays, with significant investments in prolific areas known for their hydrocarbon potential.

Exploration and Production Segment

Matador Resources has built its foundation on the exploration and production of oil and natural gas, honing in on unconventional plays with substantial promise. Significant areas of operation include:

1. Wolfcamp and Bone Spring Plays: These plays are located within the Delaware Basin, primarily spanning Southeast New Mexico and West Texas. Matador has concentrated its drilling and completion activities in these regions, leveraging the geological advantages that these formations offer. The Wolfcamp formation, in particular, is noted for its multi-zone production capability, making it attractive for resource extraction.

2. Eagle Ford Shale: This formation in South Texas is another key focus area for Matador. The Eagle Ford shale is renowned for its rich hydrocarbons and has been a favorable environment for the companys exploration initiatives.

3. Haynesville Shale: Situated in Northwest Louisiana and East Texas, the Haynesville play is recognized for its natural gas production capabilities. Matador has engaged in exploration efforts here, diversifying its asset portfolio and tapping into the significant natural gas reserves.

The company’s strategic emphasis has been on established hydrocarbon-producing basins that provide opportunities for multi-zone completions, enhancing efficiency and production yields.

Midstream Segment

In conjunction with its upstream exploration and production activities, Matador Resources also manages a significant midstream segment, which plays a crucial role in the overall operational framework of the company:

1. Natural Gas Processing: Matador operates facilities that process natural gas, enhancing its quality and ensuring that it meets market specifications prior to distribution. This step in the production process is vital for maximizing the value of the resources extracted.

2. Gathering Services:
- Natural Gas Gathering: The company provides gathering services for natural gas, ensuring that the produced gas is collected and transported efficiently from well sites to processing plants.
- Oil and Salt Water Gathering: Matador also offers gathering services for oil and salt water, essential for managing byproducts of oil and gas extraction and maintaining the operational flow.

3. Salt Water Disposal Services: This service includes the disposal of salt water, a byproduct of oil and gas production. By managing salt water disposal effectively, Matador mitigates environmental impacts and complies with regulatory requirements.

4. Strategic Assets: Historically, Matador has maintained full ownership of its midstream operations, with the exception of a joint venture for salt water disposal assets in Loving County, Texas. In 2017, Matador strategically contributed its Delaware Midstream Assets to San Mateo, further aligning its resources and focus within the industry.

Conclusion

In sum, Matador Resources Company is deeply entrenched in the exploration and production of oil and natural gas, with a robust focus on unconventional resource plays, particularly in the Delaware Basin, Eagle Ford, and Haynesville regions. Complemented by a well-integrated midstream segment, the company enhances its operational efficiency, manages costs effectively, and maximizes the value derived from its production activities. This dual strategy places Matador in a strong position within the competitive oil and gas landscape.