Matador Announces Record Eagle Ford Production

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.

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.
— Joseph Foran, Matador's Chairman and Chief Executive Officer

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