Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”), an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources, with an emphasis on oil and natural gas shale and other unconventional plays and with a current focus on its Eagle Ford operations in South Texas and its Permian Basin operations in Southeast New Mexico and West Texas, today provided an update on various aspects of its business.
Production and Operations
Matador is pleased to announce that its 2013 total oil production was approximately 2.1 million barrels and its 2013 total natural gas production was approximately 12.9 billion cubic feet. Both production totals were at the high end of the Company’s 2013 production guidance, as increased on November 6, 2013, of 2.0 to 2.1 million barrels for oil and 12.0 to 13.0 billion cubic feet for natural gas. Matador achieved the high end of its production guidance despite having 15 to 20% of its production capacity shut in at various times during the fourth quarter of 2013 as the Company continued its operational practices of pad and batch drilling in the Eagle Ford shale and shutting in producing wells while it conducts hydraulic fracturing operations on offsetting wells. Matador’s total oil production increased approximately 75% year-over-year, as compared to the approximately 1.2 million barrels of oil produced in 2012.
Matador achieved the high end of its production guidance as a result of better-than-anticipated initial performance from several of its recently completed wells, including the Ranger 33 State Com #1H well in Lea County, New Mexico, the Lewton #5H well in DeWitt County, Texas and the Danysh #3H and #7H wells in Karnes County, Texas. Of note, the Danysh #3H and #7H wells were drilled on 40-acre spacing and completed with a later generation fracture treatment using more fluid and more proppant and are initially outperforming older wells drilled on the same lease at 80-acre spacing but completed using an earlier generation fracture treatment. The Company also completed and placed on production four new Martin Ranch wells in La Salle County, Texas at the first of December, about two weeks earlier than originally planned due to time savings achieved on Matador’s first four-well, batch drilled pad using a recently contracted rig equipped with a “walking” package. The Company estimates that it also achieved savings of approximately $325,000 per well as a result of these batch drilling operations, as compared to recently drilled wells at Martin Ranch.