DALLAS, March 7, 2012 /PRNewswire/ -- Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company") today announced its capital budget and operating plans for 2012 as well as its initial guidance for selected 2012 operating metrics.
Capital Spending and Operating Plans
As set forth in its initial public offering prospectus dated February 1, 2012, Matador's 2012 capital budget is estimated to be approximately $313 million. The Company plans to direct approximately 94% or $295 million of its 2012 capital budget to opportunities prospective for oil and liquids opportunities, including the allocation of approximately 84% or $264 million specifically to the exploration, development and acquisition of additional interests in the Eagle Ford shale play in South Texas. Matador is running two rigs in South Texas currently and expects to run two rigs in that area throughout 2012. The Company plans to allocate the remaining 6% or approximately $18 million of its 2012 budget to natural gas related activities, primarily in the Haynesville shale in North Louisiana. The Company does not plan to drill any operated Haynesville wells in 2012.Production The Company estimates that its 2012 total oil production will be between 1.4 and 1.5 million barrels as compared to total oil production of approximately 154,000 barrels in 2011 and approximately 33,000 barrels in 2010. Daily oil production at the end of 2012 is anticipated to be between 5,000 and 5,500 barrels per day of oil. Total natural gas production for 2012 is expected to decline to between 12.5 and 13.5 billion cubic feet as compared to approximately 14.5 billion cubic feet in 2011. Matador anticipates that some of the decline in the Company's Haynesville dry gas production will be offset by natural gas production associated with its Eagle Ford drilling activities which should enjoy higher effective pricing as compared to the Haynesville dry gas production due to its natural gas liquids ("NGL") content. Metrics and Range
- 2012 Estimated Total Oil Production – 1.4 to 1.5 million barrels
- 2012 Estimated Exit Rate for Oil Production – 5,000 to 5,500 barrels per day
- 2012 Estimated Total Natural Gas Production – 12.5 to 13.5 billion cubic feet
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