Energy Prospectus

MTDR was added to our Sweet 16 Growth Portfolio on 1-1-2014

Matador Resources Company (MTDR) (“Matador” or the “Company”), an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources, with an emphasis on oil and natural gas shale and other unconventional plays and with a current focus on its Eagle Ford operations in South Texas and its Permian Basin operations in Southeast New Mexico and West Texas, today provided an update on various aspects of its business.

Production and Operations

Matador is pleased to announce that its 2013 total oil production was approximately 2.1 million barrels and its 2013 total natural gas production was approximately 12.9 billion cubic feet. Both production totals were at the high end of the Company’s 2013 production guidance, as increased on November 6, 2013, of 2.0 to 2.1 million barrels for oil and 12.0 to 13.0 billion cubic feet for natural gas. Matador achieved the high end of its production guidance despite having 15 to 20% of its production capacity shut in at various times during the fourth quarter of 2013 as the Company continued its operational practices of pad and batch drilling in the Eagle Ford shale and shutting in producing wells while it conducts hydraulic fracturing operations on offsetting wells. Matador’s total oil production increased approximately 75% year-over-year, as compared to the approximately 1.2 million barrels of oil produced in 2012.

Full press release:
http://finance.yahoo.com/news/matador-r ... 00951.html

Matador currently plans to operate three contracted drilling rigs throughout 2014 – two in the Eagle Ford shale in South Texas and one in the Permian Basin in Southeast New Mexico and West Texas. Of the estimated $440 million in capital expenditures planned for 2014, 97% is expected to be directed towards oil and liquids-rich opportunities. The Company estimates that approximately $318 million or 72% of its estimated 2014 capital expenditures will be directed to the Eagle Ford shale in South Texas, $109 million or approximately 25% will be allocated to its Permian program and the remaining $13 million or approximately 3% will be directed to participation in non-operated Haynesville shale wells in Northwest Louisiana. Development of its Eagle Ford assets is expected to be the primary driver of Matador’s growth in 2014, and the Company anticipates drilling and/or completing 49 gross (46.0 net) Eagle Ford wells and one gross (one net) Buda test, with 43 gross (40.0 net) of these wells turned to sales in 2014. Matador’s 2014 Permian drilling program is designed to further evaluate its acreage position and define an expanded development plan for 2015 and beyond. The Company anticipates drilling 12 gross (9.8 net) wells in 2014 with 10 gross (8.3 net) wells turned to sales

An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab. I have increased my Fair Value Estimate $0.30/share to $27.10.