Matador Resources (MTDR) Update - Feb 18
Posted: Fri Feb 18, 2022 9:57 am
Matador is now expected to release Q4 financial results on February 22. Note below that the PV10 value of proved oil reserves are calculated based on SEC oil pricing guidelines (looking backwards) that require using a price of $63.04/bbl. Also note that Matador reports natural gas and NGLs on a combined basis, which is why the natural gas prices used in the calculation of $3.60/MMBtu may seem high.
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DALLAS, February 17, 2022--(BUSINESS WIRE)--Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company") today reported its estimated proved oil and natural gas reserves at December 31, 2021, which showed a 20% year-over-year increase in total proved reserves, including a 56% year-over-year increase in proved developed reserves, each as compared to the Company’s proved oil and natural gas reserves at December 31, 2020.
Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, "Matador is pleased today to report a 20% year-over-year increase in our total proved reserves from 270.3 million BOE at December 31, 2020 to 323.4 million BOE at December 31, 2021, an all-time high for Matador. This reserves increase reflects the strong well results we continue to deliver across our various asset areas in the Delaware Basin and the significant improvement in the capital efficiency of our drilling and completions program in recent years. For the full year 2021, Matador’s drilling and completion costs for all operated horizontal wells turned to sales averaged approximately $670 per completed lateral foot, a year-over-year decrease of 21% and an all-time low for Matador on an annual basis. Matador clearly delivered ‘better wells for less money’ in 2021.
"The Standardized Measure and PV-10 of our proved reserves at December 31, 2021 both increased significantly from a year ago. The Standardized Measure increased 2.8-fold from $1.58 billion at December 31, 2020 to $4.38 billion at December 31, 2021, and the PV-10 increased 3.2-fold from $1.66 billion at December 31, 2020 to $5.35 billion at December 31, 2021. At December 31, 2021, our proved oil and natural gas reserves were valued using an oil price of $63.04 per barrel and a natural gas price of $3.60 per MMBtu, an increase of 75% and 81%, respectively, as compared to $36.04 per barrel and $1.99 per MMBtu at December 31, 2020. Matador’s proved oil and natural gas reserves at December 31, 2021 were also impacted positively by the increase in commodity prices used to estimate proved reserves at December 31, 2021, and particularly the 29% increase in our proved natural gas reserves, where the improved natural gas pricing contributed to longer economic well lives and increased reserves volumes.
"Importantly, Matador’s year-end 2021 proved reserves also reflect a 56% year-over-year increase in our proved developed reserves from 123.5 million BOE at December 31, 2020 to 193.3 million BOE at December 31, 2021. Matador’s proved developed reserves now represent 60% of our total proved reserves at December 31, 2021, as compared to 46% at December 31, 2020. This notable increase in proved developed reserves is attributable to the quality of new wells we completed and turned to sales and the increase in commodity prices, but also due to the development and conversion of a significant portion of our proved undeveloped reserves to proved developed reserves during 2021, resulting largely from Matador’s drilling and completions activities in the Stateline asset area and the Rodney Robinson leasehold in the western portion of the Antelope Ridge asset area. This increase in proved developed reserves during 2021 was instrumental to the 50% increase in the borrowing base under our reserves-based credit facility from $900 million to $1.35 billion we achieved in November 2021 and should contribute to potential future increases in our borrowing base going forward.
"Matador believes it is well positioned for additional growth in its proved reserves volumes, Standardized Measure and PV-10 in 2022, given the strong well results we continue to achieve throughout our Delaware Basin acreage position and should commodity prices remain at or near their current levels."
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DALLAS, February 17, 2022--(BUSINESS WIRE)--Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company") today reported its estimated proved oil and natural gas reserves at December 31, 2021, which showed a 20% year-over-year increase in total proved reserves, including a 56% year-over-year increase in proved developed reserves, each as compared to the Company’s proved oil and natural gas reserves at December 31, 2020.
Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, "Matador is pleased today to report a 20% year-over-year increase in our total proved reserves from 270.3 million BOE at December 31, 2020 to 323.4 million BOE at December 31, 2021, an all-time high for Matador. This reserves increase reflects the strong well results we continue to deliver across our various asset areas in the Delaware Basin and the significant improvement in the capital efficiency of our drilling and completions program in recent years. For the full year 2021, Matador’s drilling and completion costs for all operated horizontal wells turned to sales averaged approximately $670 per completed lateral foot, a year-over-year decrease of 21% and an all-time low for Matador on an annual basis. Matador clearly delivered ‘better wells for less money’ in 2021.
"The Standardized Measure and PV-10 of our proved reserves at December 31, 2021 both increased significantly from a year ago. The Standardized Measure increased 2.8-fold from $1.58 billion at December 31, 2020 to $4.38 billion at December 31, 2021, and the PV-10 increased 3.2-fold from $1.66 billion at December 31, 2020 to $5.35 billion at December 31, 2021. At December 31, 2021, our proved oil and natural gas reserves were valued using an oil price of $63.04 per barrel and a natural gas price of $3.60 per MMBtu, an increase of 75% and 81%, respectively, as compared to $36.04 per barrel and $1.99 per MMBtu at December 31, 2020. Matador’s proved oil and natural gas reserves at December 31, 2021 were also impacted positively by the increase in commodity prices used to estimate proved reserves at December 31, 2021, and particularly the 29% increase in our proved natural gas reserves, where the improved natural gas pricing contributed to longer economic well lives and increased reserves volumes.
"Importantly, Matador’s year-end 2021 proved reserves also reflect a 56% year-over-year increase in our proved developed reserves from 123.5 million BOE at December 31, 2020 to 193.3 million BOE at December 31, 2021. Matador’s proved developed reserves now represent 60% of our total proved reserves at December 31, 2021, as compared to 46% at December 31, 2020. This notable increase in proved developed reserves is attributable to the quality of new wells we completed and turned to sales and the increase in commodity prices, but also due to the development and conversion of a significant portion of our proved undeveloped reserves to proved developed reserves during 2021, resulting largely from Matador’s drilling and completions activities in the Stateline asset area and the Rodney Robinson leasehold in the western portion of the Antelope Ridge asset area. This increase in proved developed reserves during 2021 was instrumental to the 50% increase in the borrowing base under our reserves-based credit facility from $900 million to $1.35 billion we achieved in November 2021 and should contribute to potential future increases in our borrowing base going forward.
"Matador believes it is well positioned for additional growth in its proved reserves volumes, Standardized Measure and PV-10 in 2022, given the strong well results we continue to achieve throughout our Delaware Basin acreage position and should commodity prices remain at or near their current levels."