Matador Resources Company Reports Unaudited Consolidated Earnings and Production Results for the Second Quarter and Six Months Ended June 30, 2014; Reaffirms Earnings Guidance for the Full Year of 2014
Aug 6 14
Matador Resources Company reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported total revenues of $90,907,000 against $65,959,000 a year ago. Operating income was $30,067,000 against $26,905,000 a year ago. Income before income taxes was $28,860,000 against $25,151,000 a year ago. Net income was $18,226,000 or $0.26 per diluted share against $25,119,000 or $0.45 per diluted share a year ago. Adjusted EBITDA was $69,464,000 against $40,772,000 a year ago.
For the six months, the company reported total revenues of $164,888,000 against $120,845,000 a year ago. Operating income was $57,324,000 against $12,650,000 a year ago. Income before income taxes was $54,759,000 against $9,693,000 a year ago. Net income was $34,589,000 or $0.51 per diluted share against $9,615,000 or $0.17 per diluted share a year ago. Net cash provided by operating activities was $113,475,000 against $83,912,000 a year ago. Oil and natural gas properties capital expenditures were $234,335,000 against $173,989,000 a year ago. Expenditures for other property and equipment were $1,884,000 against $2,081,000 a year ago. Adjusted EBITDA was $125,810,000 against $81,444,000 a year ago.
For the quarter, the company reported net oil production was $802 MBbl against $447 MBbl a year ago. Natural gas was 3.6 Bcf against 3.1 Bcf a year ago. Average daily production was 15,424 BOE per day against 10,582 BOE per day a year ago.
For the six months, the company reported net oil production was $1,463 MBbl against $908 MBbl a year ago. Natural gas was 6.1 Bcf against 6.2 Bcf a year ago. Average daily production was 13,673 BOE per day against 10,739 BOE per day a year ago.
For the full year of 2014, the company reaffirms guidance as revised upwards on May 6, 2014 and May 22, 2014 for estimated capital expenditures of $570 million. Estimated total natural gas production of 16.0 to 17.5 Bcf. Estimated total oil and natural gas revenues of $380 to $400 million and estimated Adjusted EBITDA of $270 to $290 million. Further, the company reaffirms its guidance to the high end of its 2014 estimated oil production range of 2.8 to 3.1 million Bbl.
Matador Resources Company Provides Permian Basin Operational Update
Jul 30 14
Matador Resources Company announced the 24-hour initial potential test results of two of its most recent wells completed in the Permian Basin, the Norton Schaub #1H well and the Pickard State 20-18-34 #1H well, each of which has been producing less than 30 days. The company also provided an update on its growing leasehold position in the Permian Basin. In the Wolf prospect area of Loving County, Texas, the Norton Schaub #1H well flowed 1,026 BOE per day, including 706 Bbl of oil per day and 1,922 Mcf of natural gas per day (69% oil), at 3,000 pounds per square inch ("psi") surface pressure on a 22/64th inch choke during its 24-hour initial potential test in mid-July 2014. This well was completed in the upper portion of the Wolfcamp formation, the Wolfcamp "A," at approximately 10,800 feet vertical depth. Matador drilled a 4,700-ft horizontal lateral in the Norton Schaub #1H and completed this well with 20 frac stages, including approximately 200,000 Bbl of fluid and 9.8 million pounds of sand. This well is the Company's second successful test of the Wolfcamp "A" formation in its Wolf prospect. The Norton Schaub #1H was drilled near and to the northwest of Matador's original well on the Wolf prospect, the Dorothy White #1H, which has produced 175,000 BOE, including 115,000 Bbl of oil (66% oil), in about seven months on production. Based on the success of these two wells, Matador intends to keep one of its two Permian Basin drilling rigs operating full-time in the Loving County area. In the Ranger prospect area in Lea County, New Mexico, the Pickard State 20-18-34 #1H well flowed 592 BOE per day, including 535 Bbl of oil per day and 340 Mcf of natural gas per day (90% oil), at 750 psi surface pressure on a 22/64th inch choke during its 24-hour initial potential test in late July 2014. This well was completed in the Second Bone Spring sand at approximately 9,900 feet vertical depth. Matador drilled a 4,100-ft horizontal lateral in the Pickard State 20-18-34 #1H and completed this well with 17 frac stages, including approximately 167,000 Bbl of fluid and 7.3 million pounds of sand. This well is the Company's second positive test of the Second Bone Spring sand in the Ranger prospect area, and early indications are that this well may be comparable to or better than Matador's initial Second Bone Spring well, the Ranger 33 State Com #1H, which has produced 123,000 BOE, including 113,000 Bbl of oil (91% oil), in about nine months on production. The Pickard State 20-18-34 #1H well flowed oil at higher rates and at higher flowing pressures much earlier on comparable chokes, as compared to the Ranger 33 State Com #1H. At July 30, 2014, Matador's total acreage position in the Ranger prospect area was approximately 14,600 gross (10,200 net) acres. At July 30, 2014, Matador had two drilling rigs operating in the Permian Basin - one drilling the Johnson 44-02S-B53 WF #204H well, a Wolfcamp "A" test in the Wolf prospect area in Loving County, Texas, and one drilling the Jim Rolfe 22-18S-34E RN #231H, the company's first Third Bone Spring sand test in the Ranger prospect area in Lea County, New Mexico. Matador has just begun flowing back its Pickard State 20-18-34 #2H well, a Wolfcamp "D" test in the Ranger prospect area. In addition, the Arno #1H well, a Wolfcamp "A" test in the Wolf prospect area, has been drilled and completion operations on that well should begin in mid-August. Matador plans to provide updates on both the Pickard State 20-18-34 #2H and Arno #1H wells later in the third quarter as well as an update on its other operations and well results in the area.