Energy Prospectus

Matador Resources (MTDR)

Reaffirmed its full-year 2014 guidance estimates as provided at its Analyst Day on December 12, 2013, including (1) capital expenditures of $440 million, (2) oil production of 2.8 to 3.1 million Bbl, (3) natural gas production of 13.5 to 15.0 Bcf, (4) oil and natural gas revenues of $325 to $355 million and (5) Adjusted EBITDA of $235 to $265 million. Oil and natural gas revenues and Adjusted EBITDA guidance are based on an estimated realized oil price of $95.00 per barrel and an estimated realized natural gas price of $4.25 per Mcf for 2014.

This means production will be up over 25% in 2014.

Q4 included some weather related issues and shut-ins so the could complete some wells on the same pad. Production will be up in Q1.

Buy the dip.

"Since the IPO, we have significantly increased our leasehold position in the Permian Basin, and today, we hold more than 77,800 gross (50,100 net) acres, primarily in Lea and Eddy Counties, New Mexico and Loving County, Texas, that we believe to be prospective for the Wolfcamp and Bone Spring plays, as well as other targets. We plan to run one contracted drilling rig in the Permian Basin in 2014, as we further evaluate and delineate our acreage position and methodically execute and improve our Permian drilling program. This program is off to a great start, and we have previously announced strong results from our first two horizontal wells in the Permian — the Ranger 33 State Com #1H, a Second Bone Spring completion in Lea County, New Mexico, and the Dorothy White #1H, a Wolfcamp “A” completion in Loving County, Texas, updated details of which are included in this press release. Today, we are pleased to announce that our Rustler Breaks 12-24-27 #1H well, a Wolfcamp “B” horizontal test in Eddy County, New Mexico, flowed 987 BOE per day (44% oil), including 436 Bbl of oil per day and 3.3 MMcf of natural gas per day at 3,000 psi on a 24/64th inch choke during a 24-hour initial potential test. As with the previous two Permian wells, this well's results have exceeded our initial expectations, and we are very encouraged by the continued strong performance of all three of these wells."

Matador Resources (MDTR): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

My Fair Value Estimate is now $27.00, compared to First Call's Price Target of $24.06.

In 2014, production should be up ~28%. Permian Basin results very promising, but most of the growth will come from the Eagle Ford this year.