Matador Announces Record Eagle Ford Production

CEO: Q2 Full of Milestones
Matador Q2 Report

Matador Q2 Report

Matador Resources released 2015 second quarter results that were “full of milestones’.

Related: Matador Still Keen on the Eagle Ford

In a conference call last week, Matador announced that even in the midst of low crude prices, the company was able to achieve record production while reducing costs and obtaining a 30% to 50% rates of return on drilling in the Eagle Ford.

Joseph Foran, Matador’s Chairman and Chief Executive Officer, commented that ”We are pleased with our achievements this past three months. First, production is growing. It’s been record production, and that not only were these the highest production numbers, but the 1.26 million barrels we produced for the past three months, it’s exceeding our entire oil production for all of 2012, three years ago, the year we went public.”

Eagle Ford Operations

Second quarter production for Matador’s Eagle Ford operations increased to its all-time high of 11,942 BOE per day, consisting of 9,358 barrels of oil per day and 15.5 million cubic feet of natural gas per day. Foran attributed the increase to the initial performance of eight wells in Karnes County, Texas that were put into production late in the first quarter.

Matador completed and began producing oil and natural gas from four Eagle Ford wells during the second quarter. The company says it has now completed its planned operated Eagle Ford drilling and completion operations for 2015.

Other Second Quarter highlights:

  • Record oil production resulting in a 57% year-over-year increase to 1.26 million barrels compared to 802,000 barrels for Q2 2014
  • Record natural gas production resulting in a 93% year-over-year increase to 7.0 billion cubic feet compared to 3.6 billion cubic feet produced in Q2 2014
  • Record average daily oil equivalent production resulting in a 73% year-over-year increase to 26,601 barrels of oil equivalent (“BOE”) per day compared to 15,424 BOE per day for Q2 2014
  • An 11% year-over-year decrease in oil and natural gas revenues from $99.1 million for Q2 2014 to $87.8 million for Q2 2015
  • A sequential increase in revenues of 41% from $62.5 million reported in the first quarter of 2015
  • Cash operating expenses per BOE declined 25%, or $4.83per BOE
  • A 4% year-over-year decrease in Adjusted EBITDA


Matador Still Keen on the Eagle Ford

Company Hopes to Resume Activity in 2016
Matador Released 2015 Q1

Matador Released 2015 Q1

Matador Resources announced first quarter earnings and set hopes for further Eagle Ford activity.

Related: Matador Reduces Eagle Ford Rigs in 2015

In an earnings call on May 7th, Matador executives discussed the company’s $50.2 million loss for the first quarter of 2015, a drastic change from the $16.4 million profit reported one year ago.

Low oil prices have taken a toll on the company’s earnings and caused them to temporarily suspend operations in the Eagle Ford Shale.

Responding to questions about Matador’s intentions for the Eagle Ford, Joe Foran – CEO responded that “we are looking, hopefully that circumstances will suggest to be acting again in the Eagle Ford in 2016. We are very open to acquiring and are in the process of acquiring some additional acreage there (EFS) to build up our inventory. We feel we’ve got 250 or so wells to drill over there with welcome deals if some people have expiring acreage that they would like for us to be interested in. We’ve got a lot of good locations left there and we are really high on the Eagle Ford still.”

Q1 Highlights:

  • Company growth: Up from 400 barrels of oil per day to over 11,000 barrels a day
  • Reduced operating costs 30% to 40%  through vendor adjustments and reducing number of days on wells and complete them better and then our gas lift system on production.
  • Production continues to meet  & exceed our expectations and for the first time in our history, we produce more than 2 million BOEs in a single quarter, recording production of 2.1
  • Completed the merger with HEYCO that included 29 new employees in Roswell, New Mexico.


Matador’s Eagle Ford Production Breaks Record in Q2 2014

30% Increase in Portfolio-Wide Production - 15,424 boe/d
Matador Eagle Ford Acreage

Matador Eagle Ford Acreage | Click to Enlarge

Dallas, Texas-based Matador Resources hit record production levels portfolio-wide in the second-quarter of 2014, thanks mostly to its Eagle Ford Shale production. The company recorded a 30% quarter-on-quarter production increase to 15,424 boe/d, and a 46% increase year-over-year.

During the quarter, approximately 54% of the company’s natural gas production was liquids-rich natural gas, primarily from the Eagle Ford Shale. That’s  a jump compared to the year ago quarter when Matador’s liquids-rich natural gas cut for its natural gas production was around 33%.

Matador’s Permian Assets Help Boost Company Production

Matador’s most significant oil producing assets are in the Eagle Ford Shale, but the company is also active in the Permian Basin, in West Texas and Southeastern New Mexico. During the quarter, the oil-rich Permian helped Matador achieve record oil production, representing an increase of 21% quarter-on-quarter to ~8,900 b/d.

Read more: Matador Resources Oil Production Up 76% Company-Wide Due to Eagle Ford

Matador’s CEO Joseph Foran, said, “these record production results are directly attributable not only to the continued execution of our Eagle Ford development program but also to the positive, better-than-expected results from our initial wells in thePermian Basin. Notably, these results were achieved despite having as much as 10 to 15% of our total production capacity shut in or restricted at various times during the second quarter while offsetting wells were drilled and completed and pipeline connections were being made.”

Matador Eagle Ford Position Growing Larger in 2014

Since the beginning of the year, Matador has acquired approximately 3,100 gross (2,900 net) acres in South Texas prospective for the Eagle Ford Shale in La Salle, Karnes and southern Atascosa Counties. According to company officials, the acreage has the potential to add up to 75 additional gross drilling locations to the company’s South Texas development program.

Matador Eagle Ford Q2 2014 Operations Update

Matador had two drilling rigs operating in South Texas during the second quarter of 2014. During the quarter, the company completed and began producing from nine gross (6.2 net) Eagle Ford wells, including six gross (5.4 net) operated and three gross (0.8 net) non-operated Eagle Ford wells. Matador completed three operated Eagle Ford wells on its Northcut lease and two wells on its Martin Ranch lease in La Salle County and one well on its Lyssy lease in southern Wilson County. The three non-operated wells were completed on its Troutt lease in La Salle County.

As of August 6, 2014, Matador had two drilling rigs operating in the Eagle Ford. One of the rigs is on the company’s Lyssy lease in southernWilson County and one is on its Pawelek lease in Karnes County. 


Matador Resources Oil Production Up 76% Company-Wide Due to Eagle Ford

Look for Matador Resources to Acquire Eagle Ford Acreage in 2014
Matador Drilling Graph

Matador’s Eagle Ford Drilling Costs | Click to Enlarge

Matador Resources had a 76% increase in oil production across its portfolio in 2013 from 3,317 b/d  – 5,843 b/d. The increase was a direct result of the company’s drilling operations in the Eagle Ford Shale. In 2013, Eagle Ford production also contributed ~14.9 mmcf/d, which was ~42% of the company’s total natural gas production.

Matador continues to have solid results in the Eagle Ford. Look for the company to make some acreage deals in the play this year.

Matador’s Eagle Ford budget for 2014 is $318 million.

Read more: Matador Eagle Ford Capital Budget – $318 Million in 2014

[Read more…]

Matador Resources Issues Stock To Fund Eagle Ford Acquisitions & Capital Budget

78% of Matador's 2013 Budget Fund Eagle Ford Activity
Matador Resources Eagle Ford Map | Click to Enlarge

Matador Resources Eagle Ford Map | Click to Enlarge

Matador Resources priced a public offering of 8.5 million shares at $15.25/share or for total proceeds of near $130 million on September 4, 2013. The capital raised will be used to fund the company’s capital budget and acreage acquisitions in its core operating areas.

Approximately 78% of Matador’s 2013 capital budget is allocated to the Eagle Ford. Two rigs will run in the region throughout 2013 and one rig will be added in the Permian Basin of West Texas. [Read more…]

Well Results from Matador Resources Eagle Ford Operations

Matador's average well has produced more than 1,100 boe/d since 2011
Matador Resources Eagle Ford Shale Map

Matador Resources Eagle Ford Shale Map | Click to Enlarge

Well results from Matador Resources’ operations in La Salle, Dimmit, DeWitt, and Karnes counties were release earlier in the week. The company’s average well has a perforated well length of 5,090 ft, was completed with 18 frac stages, and produced 1,103 boe/d initially (859 b/d and 1.5 mmcfd).

One well completed in Zavala County was placed on pump immediately and produced 307 b/d of crude oil. [Read more…]