For the past three years, Matador Resources has seen a huge shift in production from its Eagle Ford Shale operations to its assets in the Delaware Basin.
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Matador Resources announced its financial and operating results for the third quarter and full year 2016, which included a net loss of $97.4 million for the full year. Company executives anticipate oil production for 2017 at 6.7 to 7.0 million barrels, a 34% increase over 2016.
Production from matador's eagle Ford operations has decreased over the past three years, while the percentage from the Delaware Basin has increased.
EFS
- 2014: 22.3 MMBOE, 32%
- 2015: 19.0 MMBOE, 22%
- 2016: 13.3 MMBOE, 13%
DELAWARE
- 2014: 13.0 MMBOE, 19%
- 2015: 47.1 MMBOE, 56%
- 2016: 79.4 MMBOE, 75%
2017
The majority of Matador's $370 to $390 million for 2017 capital spending will go to the Delaware Basin, with plans to drill and place on production 91 gross (56.2 net) wells. The company will limit spending in the Eagle Ford, with most of the region's budget focused on maintaining and extending leases.
“There’s a lot of potential still left in the Eagle Ford. We’ve only completed in the lower Eagle Ford. It’s becoming apparent that there are further opportunities in the upper Eagle Ford or in the Austin Chalk, upper and lower Austin Chalk.”
Fourth Quarter 2016 Highlights
- Decreased salt water disposal and chemical costs associated with its Eagle Ford operations
- Net income of $104.2 million
- Adjusted net income, a non-GAAP financial measure, of $7.2 million
- Record average daily oil production of approximately 15,700 barrels of oil per day- a 5% increase over Q3 and an increase of 36% year-over-year
- Natural gas production of approximately 85.5 million cubic feet per day-a 1% decrease of 1% from Q3 and an increase of 19% year-over-year