Matador Resources Company Announces Initial Ray State Well Results and Provides Update on Rodney Robinson Wells, Ongoing Operations and Upcoming 2020 Milestones

Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced the results from the first five wells completed and turned to sales on the Ray State tract in the Rustler Breaks asset area and provided updates on the Rodney Robinson wells in the Antelope Ridge asset area and upcoming milestones for the remainder of 2020.

Key Highlights

Key production highlights of this press release include the following:

• The five Ray State wells in the eastern portion of the Rustler Breaks asset area, all two-mile laterals, were completed and turned to sales in May and early June as planned with 24-hour initial potential (“IP”) aggregate test results of approximately 12,500 barrels of oil equivalent (“BOE”) per day, including 7,600 barrels (“Bbl”) of oil per day and 29.5 million cubic feet (“MMcf”) of natural gas per day.

• The six Rodney Robinson wells, all two-mile laterals, recently completed and turned to sales in the western portion of the Antelope Ridge asset area continue to perform better than expected despite most of these wells being produced at restricted flow rates during the second quarter of 2020. Matador estimates these six wells should produce, in aggregate, over one million BOE, including approximately 750,000 Bbl of oil, before the end of the second quarter of 2020.

• Matador is concluding completion operations on its five Leatherneck wells, all two-mile laterals, in the southern portion of the Arrowhead asset area and has also initiated completion operations on the initial 13 Boros wells drilled in the Stateline asset area. The Leatherneck wells should be turned to sales in August 2020, with the Boros wells being turned to sales beginning in September 2020.

Management Comments

Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “We are very pleased today to report the results from our five Ray State wells, which represent the second of four key production markers we have outlined for monitoring and evaluating our progress in 2020. The five Ray State wells are just a few of the almost 800 gross A+ locations that we have recently identified across our Delaware Basin asset portfolio, and we are excited to see these two-mile laterals get off to a strong start. In addition, we continue to be excited by the early performance of our first six Rodney Robinson wells, also all two-mile laterals, which we now expect to produce more than one million BOE, in aggregate, in just their first three months of production.

“In the second half of 2020 as we approach free cash flow, we look forward to three more important milestones being achieved – first, the completion and initial production from the five Leatherneck wells in the Greater Stebbins Area, second, the completion of the San Mateo II expansion project in Eddy County, New Mexico, and third, the completion and initial production from the first 13 Boros wells in the Stateline asset area beginning in September. We continue to be pleased with the progress we are making this year to improve our capital efficiency and to reduce both capital and operating expenses as we work to achieve our production, operational and financial targets for 2020, which include being free cash flow positive by the end of the year. To this end, Matador expects 83% of the wells Matador will drill this year will have lateral lengths longer than a mile with corresponding capital spending efficiency.

“Matador hosted almost 300 participants for our first ‘virtual’ Annual Meeting of Shareholders on June 5, 2020. In that meeting, we discussed Matador’s progress to date in 2020 addressing commodity prices, Coronavirus issues and the normal drilling, completion and production matters. Our lead director, Tim Parker, also gave a report on Matador’s governance, asset quality and his reasons for joining our board. Our President and CFO also gave presentations, as I did, on our various operating results to date and our operational plans going forward for the rest of the year. Should you wish to review the presentation or listen to the webcast from the Annual Meeting, please visit our website at www.matadorresources.com. We wish to express our sincere thanks to all shareholders, bondholders and guests who joined us for the Annual Meeting and encourage you to contact us with any follow-up questions or thoughts you may have.”

Ray State Well Results

Matador is pleased today to announce the results from the first five wells completed and turned to sales on the Ray State tract in the eastern portion of its Rustler Breaks asset area in Eddy County, New Mexico, all of which are two-mile laterals.

The following table highlights the 24-hour IP test results from each of these five “Ray State” wells.

Matador is very pleased with these IP test results from these five Ray State wells, which totaled 12,507 BOE per day, including 7,599 barrels of oil per day and 29.5 million cubic feet of natural gas per day. In addition, Matador is pleased to report that the costs to drill and complete the Ray State wells averaged just over $800 per completed lateral foot, almost 10% less than originally anticipated. As with the recent Rodney Robinson wells, these costs are among the lowest drilling and completion costs per lateral foot that Matador has achieved to date in the Delaware Basin.

Matador has an approximate 50% working interest in each of the Ray State wells. The Company is currently producing these wells into its operated facilities at restricted flow rates. Oil, natural gas and salt water production from these wells is being gathered and transported by pipeline by San Mateo, our 51% owned midstream joint venture.

With the completion of the Ray State wells, Matador has completed and turned to sales 11 gross operated wells amounting to approximately 16.2 miles of horizontal production in the Delaware Basin in the second quarter of 2020 as anticipated. Of these 11 gross operated wells, the five Ray State wells were turned to sales in the Rustler Breaks asset area, five wells were turned to sales in the Wolf asset area, and one well was turned to sales in the Antelope Ridge asset area. The next wells Matador expects to complete and turn to sales are the five Leatherneck wells in August 2020 in the Stebbins area of the Delaware Basin.

Rodney Robinson Wells Update

In its April 13, 2020 press release, Matador announced the results from the first six wells completed and turned to sales on the Rodney Robinson tract in the western portion of its Antelope Ridge asset area in Lea County, New Mexico, all of which are two-mile laterals. The IP test results from these six Rodney Robinson wells totaled 15,100 Bbl of oil per day and 24.8 million cubic feet of natural gas per day. These results were the best IP test results Matador had achieved to date for wells completed and turned to sales in the Avalon, Second Bone Spring and Wolfcamp A-XY formations throughout the Delaware Basin.

Following these IP tests, these six Rodney Robinson wells were turned into Matador’s operated facilities. The two Second Bone Spring and two Wolfcamp A-XY wells have been produced at restricted flow rates for the last two months. Based on observations of early performance from other Avalon wells in the area, however, the two Avalon wells were purposely produced at higher flow rates to determine if these wells would continue to clean up and improve with time, and, in fact, both wells did improve with time. The Rodney Robinson Federal #101H, a Lower Avalon completion, improved to 2,087 BOE per day (a 37% improvement), as compared to the originally reported IP rate of 1,525 BOE per day, and the Rodney Robinson Federal #102H, an Upper Avalon completion, improved to 3,521 BOE per day (a 30% improvement), as compared to the originally reported IP rate of 2,706 BOE per day.

In aggregate, Matador expects these six wells to produce in excess of one million BOE in the second quarter of 2020, their first full quarter of production, including approximately 750,000 Bbl of oil and 1.5 billion cubic feet of natural gas. Matador has a 100% working interest and an 87.5% net revenue interest in each of these six wells. This “higher than normal” net revenue interest should substantially increase the economic returns from these wells. Matador plans to drill four additional Rodney Robinson wells starting in the fall of 2020, and these four wells are expected to be completed and turned to sales early in the second quarter of 2021.

Upcoming 2020 Milestones and Operational Update

Completing and turning to sales the five Ray State wells in the Rustler Breaks asset area marks the second of four key production catalysts (following the Rodney Robinson wells) Matador had outlined in prior updates as important milestones for its 2020 operational plan. At June 18, 2020, Matador is operating four drilling rigs in the Delaware Basin but will reduce its operated drilling program to three rigs by the end of this month as previously indicated. Matador currently plans to continue operating three rigs in the Delaware Basin for the remainder of this year. The next milestone for 2020 should be reached in August when Matador expects to turn to sales five two-mile laterals – the Leatherneck wells – in the southern portion of the Arrowhead asset area, also known as the Greater Stebbins Area.

In the third quarter of 2020, San Mateo Midstream II, LLC (together with San Mateo Midstream, LLC, “San Mateo”) is expected to complete and place in service its main midstream project for the year, a gas processing expansion of its present Black River plant. At that point in time, San Mateo, the Company’s 51% owned midstream joint venture expects to finish its 200 million cubic feet per day expansion of the Black River cryogenic natural gas processing plant (the “Black River Processing Plant”) and to extend San Mateo’s total processing capacity to 460 million cubic feet of natural gas per day. Once finished, Matador’s associated oil and natural gas trunk lines will stretch for 43 miles across the Delaware Basin from the Stateline asset area to the Greater Stebbins Area in Eddy County, New Mexico. This expansion project continues to be on time and on budget. Meanwhile, San Mateo’s salt water disposal capacity has increased to 335,000 barrels of water, 98% of which is on pipe.

Soon after the Black River Processing Plant expansion is completed, beginning in September 2020, the fourth and most significant production milestone should be reached, when Matador anticipates it will begin production from the first 13 wells being drilled in the eastern portion of the Stateline asset area (the “Boros” wells). Matador has a 100% working interest and an 87.5% net revenue interest in each of these wells, which are all two-mile laterals. All 13 Boros wells have been drilled, and completion activities are currently underway on these wells. Drilling times and drilling costs for the first 13 Boros wells were, in aggregate, better than the Company’s expectations.

Two of Matador’s operated drilling rigs have recently initiated drilling operations on a 12-well batch anticipated to be drilled and completed in the western portion of the Stateline asset area (the “Voni” wells). Each of these 12 wells is planned to have a completed lateral length of approximately 2.3 miles, which should become the longest horizontal laterals that Matador has drilled and completed in the Delaware Basin. The initial Voni wells are expected to be completed in three distinct intervals, including four Second Bone Spring completions, four Wolfcamp A-XY completions and four Wolfcamp A-Lower completions. The Voni wells are expected to be turned to sales in the second quarter of 2021.

About Matador Resources Company

Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, Matador conducts midstream operations, primarily through its midstream joint venture, San Mateo, in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and salt water gathering services and salt water disposal services to third parties.

For more information, visit Matador Resources Company at www.matadorresources.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. “Forward-looking statements” are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,” “project,” “hypothetical,” “forecasted” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, the following risks related to financial and operational performance: general economic conditions; the Company’s ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; availability of sufficient capital to execute its business plan, including from future cash flows, increases in its borrowing base and otherwise; weather and environmental conditions; the impact of the novel coronavirus, or COVID-19, pandemic on oil and natural gas demand, oil and natural gas prices and our business; the operating results of the Company’s midstream joint venture’s expansion of the Black River cryogenic processing plant, including the timing of the further expansion of such plant; the timing and operating results of the buildout by the Company’s midstream joint venture of oil, natural gas and water gathering and transportation systems and the drilling of any additional salt water disposal wells, including in conjunction with the expansion of the midstream joint venture’s services and assets into new areas in Eddy County, New Mexico; and other important factors which could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador’s filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of Matador’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

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