Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35410 | |
Entity Registrant Name | Matador Resources Company | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 27-4662601 | |
Entity Address, Address Line One | 5400 LBJ Freeway, | |
Entity Address, Address Line Two | Suite 1500 | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75240 | |
City Area Code | 972 | |
Local Phone Number | 371-5200 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | MTDR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,646,526 | |
Entity Central Index Key | 0001520006 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash | $ 59,950 | $ 64,545 |
Restricted cash | 24,812 | 19,439 |
Accounts receivable | ||
Oil and natural gas revenues | 66,921 | 68,161 |
Joint interest billings | 61,872 | 61,831 |
Other | 18,386 | 16,159 |
Derivative instruments | 8,271 | 49,929 |
Lease and well equipment inventory | 20,281 | 17,564 |
Prepaid expenses and other assets | 12,891 | 8,057 |
Total current assets | 273,384 | 305,685 |
Oil and natural gas properties, full-cost method | ||
Evaluated | 4,094,417 | 3,780,236 |
Unproved and unevaluated | 1,234,176 | 1,199,511 |
Midstream properties | 492,420 | 428,025 |
Other property and equipment | 25,170 | 22,041 |
Less accumulated depletion, depreciation and amortization | (2,462,840) | (2,306,949) |
Net property and equipment | 3,383,343 | 3,122,864 |
Other assets | ||
Derivative instruments | 2,202 | 0 |
Deferred income taxes | 7,149 | 20,457 |
Other assets | 85,373 | 6,512 |
Total other assets | 94,724 | 26,969 |
Total assets | 3,751,451 | 3,455,518 |
Current liabilities | ||
Accounts payable | 19,821 | 66,970 |
Accrued liabilities | 191,608 | 170,855 |
Royalties payable | 66,130 | 64,776 |
Amounts due to affiliates | 10,200 | 13,052 |
Advances from joint interest owners | 4,725 | 10,968 |
Amounts due to joint ventures | 1,588 | 2,373 |
Other current liabilities | 42,703 | 1,028 |
Total current liabilities | 336,775 | 330,022 |
Long-term liabilities | ||
Borrowings under Credit Agreement | 205,000 | 40,000 |
Borrowings under San Mateo Credit Facility | 240,000 | 220,000 |
Senior unsecured notes payable | 1,038,625 | 1,037,837 |
Asset retirement obligations | 30,686 | 29,736 |
Derivative instruments | 189 | 83 |
Deferred income taxes | 14,845 | 13,221 |
Other long-term liabilities | 44,728 | 4,962 |
Total long-term liabilities | 1,574,073 | 1,345,839 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock - $0.01 par value, 160,000,000 shares authorized; 116,866,013 and 116,374,503 shares issued; and 116,647,704 and 116,353,590 shares outstanding, respectively | 1,169 | 1,164 |
Additional paid-in capital | 1,955,504 | 1,924,408 |
Accumulated deficit | (216,472) | (236,277) |
Treasury stock, at cost, 218,309 and 20,913 shares, respectively | (3,724) | (415) |
Total Matador Resources Company shareholders’ equity | 1,736,477 | 1,688,880 |
Non-controlling interest in subsidiaries | 104,126 | 90,777 |
Total shareholders’ equity | 1,840,603 | 1,779,657 |
Total liabilities and shareholders’ equity | $ 3,751,451 | $ 3,455,518 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - Unaudited - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 160,000,000 | 160,000,000 |
Common stock, shares issued | 116,866,013 | 116,374,503 |
Common stock, shares outstanding | 116,647,704 | 116,353,590 |
Treasury stock, shares | 218,309 | 20,913 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Revenues | $ 234,382 | $ 212,426 | $ 450,720 | $ 397,448 |
Realized gain (loss) on derivatives | 1,165 | (2,488) | 4,435 | (6,746) |
Unrealized gain (loss) on derivatives | 6,157 | 1,429 | (39,562) | 11,845 |
Total revenues | 241,704 | 211,367 | 415,593 | 402,547 |
Expenses | ||||
Production taxes, transportation and processing | 21,542 | 20,110 | 41,207 | 37,901 |
Lease operating | 26,351 | 25,006 | 57,514 | 47,154 |
Purchased natural gas | 8,172 | 0 | 18,806 | 0 |
Depletion, depreciation and amortization | 80,132 | 66,838 | 156,999 | 122,207 |
Accretion of asset retirement obligations | 420 | 375 | 834 | 739 |
General and administrative | 19,876 | 19,369 | 38,166 | 37,295 |
Total expenses | 164,915 | 137,374 | 331,264 | 255,192 |
Operating income | 76,789 | 73,993 | 84,329 | 147,355 |
Other income (expense) | ||||
Inventory impairment | (368) | 0 | (368) | 0 |
Interest expense | (18,068) | (8,004) | (35,997) | (16,495) |
Other expense | (423) | (352) | (532) | (299) |
Total other expense | (18,859) | (8,356) | (36,897) | (16,794) |
Income before income taxes | 57,930 | 65,637 | 47,432 | 130,561 |
Income tax provision | ||||
Deferred | 12,858 | 0 | 11,845 | 0 |
Total income tax provision | 12,858 | 0 | 11,845 | 0 |
Net income | 45,072 | 65,637 | 35,587 | 130,561 |
Net income attributable to non-controlling interest in subsidiaries | 8,320 | 5,831 | 15,782 | 10,861 |
Net income attributable to Matador Resources Company shareholders | $ 36,752 | $ 59,806 | $ 19,805 | $ 119,700 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.32 | $ 0.53 | $ 0.17 | $ 1.08 |
Diluted (in dollars per share) | $ 0.31 | $ 0.53 | $ 0.17 | $ 1.08 |
Weighted average common shares outstanding | ||||
Basic (shares) | 116,571 | 112,706 | 116,469 | 110,809 |
Diluted (shares) | 116,903 | 113,056 | 116,839 | 111,280 |
Oil and natural gas revenues | ||||
Revenues | ||||
Revenues | $ 211,060 | $ 209,019 | $ 404,329 | $ 390,973 |
Third-party midstream services revenues | ||||
Revenues | ||||
Revenues | 14,359 | 3,407 | 26,197 | 6,475 |
Expenses | ||||
Plant and other midstream services operating | 8,422 | 5,676 | 17,738 | 9,896 |
Sales of purchased natural gas | ||||
Revenues | ||||
Revenues | $ 8,963 | $ 0 | $ 20,194 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Accumulated deficit | Treasury Stock | Total shareholders’ equity attributable to Matador Resources Company | Non-controlling interest in subsidiaries | San Mateo | San MateoAdditional paid-in capital | San MateoTotal shareholders’ equity attributable to Matador Resources Company | San Mateo II | San Mateo IIAdditional paid-in capital | San Mateo IITotal shareholders’ equity attributable to Matador Resources Company | San Mateo IINon-controlling interest in subsidiaries | Convertible Preferred Stock [Member] | Convertible Preferred Stock [Member]Additional paid-in capital | Convertible Preferred Stock [Member]Total shareholders’ equity attributable to Matador Resources Company |
Beginning Balance, shares at Dec. 31, 2017 | 108,514,000 | 3,000 | |||||||||||||||
Beginning balance at Dec. 31, 2017 | $ 1,257,546 | $ 1,085 | $ 1,666,024 | $ (510,484) | $ (69) | $ 1,156,556 | $ 100,990 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 697,000 | ||||||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 7 | (7) | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 6,000 | ||||||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 1 | (1) | 0 | |||||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,390 | 5,390 | 5,390 | ||||||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 130,000 | ||||||||||||||||
Stock options exercised, net of options forfeited in net share settlements | (1,917) | $ 1 | (1,918) | (1,917) | |||||||||||||
Restricted stock forfeited (in shares) | 82,000 | ||||||||||||||||
Restricted stock forfeited | (2,377) | $ (2,377) | (2,377) | ||||||||||||||
Contribution related to formation of property | $ 14,700 | $ 14,700 | $ 14,700 | ||||||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 29,400 | 0 | 0 | 29,400 | |||||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (4,900) | (4,900) | |||||||||||||||
Current period net (loss) income | 64,924 | 59,894 | 59,894 | 5,030 | |||||||||||||
Ending Balance, shares at Mar. 31, 2018 | 109,347,000 | 85,000 | |||||||||||||||
Ending balance at Mar. 31, 2018 | 1,362,766 | $ 1,094 | 1,684,188 | (450,590) | $ (2,446) | 1,232,246 | 130,520 | ||||||||||
Beginning Balance, shares at Dec. 31, 2017 | 108,514,000 | 3,000 | |||||||||||||||
Beginning balance at Dec. 31, 2017 | 1,257,546 | $ 1,085 | 1,666,024 | (510,484) | $ (69) | 1,156,556 | 100,990 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Current period net (loss) income | 130,561 | ||||||||||||||||
Ending Balance, shares at Jun. 30, 2018 | 116,461,000 | 103,000 | |||||||||||||||
Ending balance at Jun. 30, 2018 | 1,679,748 | $ 1,165 | 1,916,821 | (390,784) | $ (2,670) | 1,524,532 | 155,216 | ||||||||||
Beginning Balance, shares at Mar. 31, 2018 | 109,347,000 | 85,000 | |||||||||||||||
Beginning balance at Mar. 31, 2018 | 1,362,766 | $ 1,094 | 1,684,188 | (450,590) | $ (2,446) | 1,232,246 | 130,520 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 20,000 | ||||||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 0 | 0 | ||||||||||||||
Issuance of common stock (in shares) | 7,000,000 | ||||||||||||||||
Issuance of common stock | $ 70 | $ 226,612 | $ 226,542 | $ 226,612 | |||||||||||||
Cost to issue equity | (146) | (146) | (146) | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 70,000 | ||||||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 0 | 0 | 0 | |||||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,937 | 5,937 | 5,937 | ||||||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 24,000 | ||||||||||||||||
Stock options exercised, net of options forfeited in net share settlements | 301 | $ 1 | 300 | 301 | |||||||||||||
Restricted stock forfeited (in shares) | 18,000 | ||||||||||||||||
Restricted stock forfeited | (224) | $ (224) | (224) | ||||||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 24,500 | 0 | 0 | 24,500 | |||||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (5,635) | (5,635) | |||||||||||||||
Current period net (loss) income | 65,637 | 59,806 | 59,806 | 5,831 | |||||||||||||
Ending Balance, shares at Jun. 30, 2018 | 116,461,000 | 103,000 | |||||||||||||||
Ending balance at Jun. 30, 2018 | $ 1,679,748 | $ 1,165 | 1,916,821 | (390,784) | $ (2,670) | 1,524,532 | 155,216 | ||||||||||
Beginning Balance, shares at Dec. 31, 2018 | 116,353,590 | 116,375,000 | 21,000 | ||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 1,779,657 | $ 1,164 | 1,924,408 | (236,277) | $ (415) | 1,688,880 | 90,777 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 6,000 | ||||||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 0 | 0 | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 3,000 | ||||||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 0 | 0 | 0 | |||||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,802 | 5,802 | 5,802 | ||||||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 210,000 | ||||||||||||||||
Stock options exercised, net of options forfeited in net share settlements | 3,111 | $ 2 | 3,109 | 3,111 | |||||||||||||
Restricted stock forfeited (in shares) | 184,000 | ||||||||||||||||
Restricted stock forfeited | (3,170) | $ (3,170) | (3,170) | ||||||||||||||
Contribution related to formation of property | $ 11,613 | $ 11,613 | $ 11,613 | $ 0 | $ (506) | $ (506) | $ 506 | ||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 12,331 | 2,040 | 2,040 | 10,291 | |||||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (8,330) | (8,330) | |||||||||||||||
Current period net (loss) income | (9,485) | (16,947) | (16,947) | 7,462 | |||||||||||||
Ending Balance, shares at Mar. 31, 2019 | 116,594,000 | 205,000 | |||||||||||||||
Ending balance at Mar. 31, 2019 | $ 1,791,529 | $ 1,166 | 1,946,466 | (253,224) | $ (3,585) | 1,690,823 | 100,706 | ||||||||||
Beginning Balance, shares at Dec. 31, 2018 | 116,353,590 | 116,375,000 | 21,000 | ||||||||||||||
Beginning balance at Dec. 31, 2018 | $ 1,779,657 | $ 1,164 | 1,924,408 | (236,277) | $ (415) | 1,688,880 | 90,777 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Current period net (loss) income | $ 35,587 | ||||||||||||||||
Ending Balance, shares at Jun. 30, 2019 | 116,647,704 | 116,866,000 | 218,000 | ||||||||||||||
Ending balance at Jun. 30, 2019 | $ 1,840,603 | $ 1,169 | 1,955,504 | (216,472) | $ (3,724) | 1,736,477 | 104,126 | ||||||||||
Beginning Balance, shares at Mar. 31, 2019 | 116,594,000 | 205,000 | |||||||||||||||
Beginning balance at Mar. 31, 2019 | 1,791,529 | $ 1,166 | 1,946,466 | (253,224) | $ (3,585) | 1,690,823 | 100,706 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 220,000 | ||||||||||||||||
Issuance of common stock pursuant to employee stock compensation plan | 0 | $ 2 | (2) | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 42,000 | ||||||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | 0 | $ 1 | (1) | 0 | |||||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 5,762 | 5,762 | 5,762 | ||||||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 10,000 | ||||||||||||||||
Stock options exercised, net of options forfeited in net share settlements | 189 | $ 0 | 189 | 189 | |||||||||||||
Restricted stock forfeited (in shares) | 13,000 | ||||||||||||||||
Restricted stock forfeited | (139) | $ (139) | (139) | ||||||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 7,500 | 3,090 | 3,090 | 4,410 | |||||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (9,310) | (9,310) | |||||||||||||||
Current period net (loss) income | $ 45,072 | 36,752 | 36,752 | 8,320 | |||||||||||||
Ending Balance, shares at Jun. 30, 2019 | 116,647,704 | 116,866,000 | 218,000 | ||||||||||||||
Ending balance at Jun. 30, 2019 | $ 1,840,603 | $ 1,169 | $ 1,955,504 | $ (216,472) | $ (3,724) | $ 1,736,477 | $ 104,126 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Contribution related to formation of San Mateo, tax | $ 3.1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Current period net (loss) income | $ 35,587 | $ 130,561 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Unrealized loss (gain) on derivatives | 39,562 | (11,845) |
Depletion, depreciation and amortization | 156,999 | 122,207 |
Accretion of asset retirement obligations | 834 | 739 |
Stock-based compensation expense | 9,076 | 8,945 |
Deferred income tax provision | 11,845 | 0 |
Amortization of debt issuance cost | 1,189 | 411 |
Inventory impairment | (368) | 0 |
Changes in operating assets and liabilities | ||
Accounts receivable | (378) | (9,321) |
Lease and well equipment inventory | (3,456) | (8,611) |
Prepaid expenses | (4,834) | (2,167) |
Other assets | (415) | (149) |
Accounts payable, accrued liabilities and other current liabilities | (48,746) | (883) |
Royalties payable | 1,353 | 8,393 |
Advances from joint interest owners | (6,243) | 16,025 |
Other long-term liabilities | 1,756 | (97) |
Net cash provided by operating activities | 194,497 | 254,208 |
Investing activities | ||
Oil and natural gas properties capital expenditures | (349,915) | (421,595) |
Midstream capital expenditures | 64,106 | 78,302 |
Midstream capital expenditures | (2,206) | (1,258) |
Proceeds from sale of assets | 21,533 | 7,593 |
Net cash used in investing activities | (394,694) | (493,562) |
Financing activities | ||
Repayments of borrowings | 0 | 45,000 |
Borrowings under Credit Agreement | 165,000 | 45,000 |
Borrowings under San Mateo Credit Facility | 20,000 | 0 |
Cost to amend credit facilities | (415) | 0 |
Proceeds from issuance of common stock | 0 | 226,612 |
Cost to issue equity | 0 | 73 |
Contributions related to formation of San Mateo I | 14,700 | 14,700 |
Proceeds from stock options exercised | 3,298 | 464 |
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 19,831 | 53,900 |
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (17,640) | (10,535) |
Taxes paid related to net share settlement of stock-based compensation | (3,309) | (4,683) |
Cash paid under financing lease obligations | (490) | 0 |
Net cash provided by financing activities | 200,975 | 280,385 |
Increase in cash and restricted cash | 778 | 41,031 |
Cash and restricted cash at beginning of period | 83,984 | 102,482 |
Cash and restricted cash at end of period | $ 84,762 | $ 143,513 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Matador Resources Company, a Texas corporation (“Matador” and, collectively with its subsidiaries, the “Company”), 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. The Company’s 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. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. Additionally, the Company conducts midstream operations, primarily through its midstream joint ventures, San Mateo Midstream, LLC (“San Mateo I”) and San Mateo Midstream II, LLC (“San Mateo II” and, together with San Mateo I, “San Mateo”), in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and salt water gathering services and salt water disposal services to third parties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification (“ASC”), Consolidation (Topic 810) . The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of June 30, 2019 . Amounts as of December 31, 2018 are derived from the Company’s audited consolidated financial statements included in the Annual Report. Certain reclassifications have been made to the December 31, 2018 financial statement amounts in order to conform them to the June 30, 2019 presentations. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates. Change in Accounting Principles Leases. During the first quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and the amendments provided for in ASU 2018-11, Leases (Topic 842) , which require the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that the Company chose to apply. These practical expedients relate to (i) the identification and classification of leases that commenced before the effective date, (ii) the treatment of initial direct costs for leases that commenced before the effective date, (iii) the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset and (iv) the ability to initially apply the new lease standard at the adoption date. During the first quarter of 2019, the Company also adopted ASU 2018-01, Leases (Topic 842) , which is a land easement practical expedient, and, as a result, the Company began evaluating land easements that are entered into or modified after December 31, 2018. See Note 3 for additional disclosures related to leases. The adoption of these ASUs resulted in the Company recording in the condensed consolidated balance sheet beginning January 1, 2019 certain of the Company’s compressor leases, drilling rig leases and office leases, which were previously considered operating leases and not reported on the Company’s condensed consolidated balance sheets. As such, upon adoption, the Company recorded (i) long-term right of use assets of $62.3 million , which are included in “Other assets” and “Other property and equipment,” and (ii) net right of use liabilities of $62.3 million , which are included in “Other current liabilities” and “Other long-term liabilities.” There was no cumulative-effect adjustment to the opening balance of accumulated deficit as a result of the adoption of these ASUs. Stock Compensation. During the first quarter of 2019, the Company also adopted ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which extends the scope of Topic 718 to include share-based payment transactions related to the acquisition of goods and services from nonemployees. Previously, the Company accounted for stock-based awards to special advisors and contractors under ASC 505-50 as liability instruments, and the fair value of the awards was recalculated each reporting period. Upon adoption, all such awards are now measured at fair value on the grant date and the resulting expense is recognized on a straight-line basis over the awards’ vesting periods. The transitional guidance requires entities to remeasure all unvested awards that are being accounted for under ASC 505-50 as liability instruments as of the beginning of the year in which this ASU is adopted. Adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. Revenues The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three and six months ended June 30, 2019 and 2018 (in thousands). Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenues from contracts with customers $ 234,382 $ 212,426 $ 450,720 $ 397,448 Realized gain (loss) on derivatives 1,165 (2,488 ) 4,435 (6,746 ) Unrealized gain (loss) on derivatives 6,157 1,429 (39,562 ) 11,845 Total revenues $ 241,704 $ 211,367 $ 415,593 $ 402,547 Three Months Ended Six Months Ended 2019 2018 2019 2018 Oil revenues $ 189,085 $ 166,271 $ 343,288 $ 314,430 Natural gas revenues 21,975 42,748 61,041 76,543 Third-party midstream services revenues 14,359 3,407 26,197 6,475 Sales of purchased natural gas 8,963 — 20,194 — Total revenues from contracts with customers $ 234,382 $ 212,426 $ 450,720 $ 397,448 Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12 -month period. For both the three and six months ended June 30, 2019 and 2018 , the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary. The Company capitalized approximately $8.4 million and $6.8 million of its general and administrative costs and approximately $2.6 million and $2.6 million of its interest expense for the three months ended June 30, 2019 and 2018 , respectively. The Company capitalized approximately $16.8 million and $14.1 million of its general and administrative costs and approximately $4.2 million and $4.5 million of its interest expense for the six months ended June 30, 2019 and 2018 , respectively. Earnings (Loss) Per Common Share The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. The following table sets forth the computation of diluted weighted average common shares outstanding for the three and six months ended June 30, 2019 and 2018 (in thousands). Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted average common shares outstanding Basic 116,571 112,706 116,469 110,809 Dilutive effect of options and restricted stock units 332 350 370 471 Diluted weighted average common shares outstanding 116,903 113,056 116,839 111,280 A total of 2.8 million options to purchase shares of Matador’s common stock were excluded from the diluted weighted average common shares outstanding for both the three and six months ended June 30, 2019 because their effects were anti-dilutive. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | The Company determines if an arrangement is a lease at inception of the contract. If an arrangement is a lease, the present value of the related lease payments is recorded as a liability and an equal amount is capitalized as a right of use asset on the Company’s interim unaudited condensed consolidated balance sheet. Right of use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s estimated incremental borrowing rate, determined at the lease commencement date using the Company’s average secured borrowing rate, is used to calculate present value. The weighted average estimated incremental borrowing rate used for the three months ended June 30, 2019 was 3.73% . For these purposes, the lease term includes options to extend the lease when it is reasonably certain that the Company will exercise such option. Leases with terms of 12 months or less at inception are not recorded on the interim unaudited condensed consolidated balance sheet unless there is a significant cost to terminate the lease, including the cost of removal of the leased asset. As the Company is the responsible party under these arrangements, the Company records the resulting assets and liabilities on a gross basis in its interim unaudited condensed consolidated balance sheets. The following table presents supplemental interim unaudited condensed consolidated statement of operations information related to lease expenses, on a gross basis, for the three and six months ended June 30, 2019 (in thousands). Lease payments represent gross payments to vendors, which, for certain of our operating assets, are partially offset by amounts received from other working interest owners in our operated wells. Three Months Ended Six Months Ended Operating leases Lease operating $ 2,965 $ 5,207 Plant and other midstream services 30 61 General and administrative 665 1,474 Total operating leases (1) 3,660 6,742 Short-term leases Lease operating 3,392 5,601 Plant and other midstream services 1,131 2,751 General and administrative 5 17 Total short-term leases (2)(3) 4,528 8,369 Financing leases Depreciation of assets 231 440 Interest on lease liabilities 33 64 Total financing leases 264 504 Total lease expense $ 8,452 $ 15,615 _____________________ (1) Does not include gross payments related to drilling rig leases of $8.2 million and $13.5 million for the three and six months ended June 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at June 30, 2019 . (2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the interim unaudited condensed consolidated balance sheet as they are short-term leases. (3) Does not include gross payments related to short-term drilling rig leases and other equipment rentals of $10.7 million and $37.2 million for the three and six months ended June 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at June 30, 2019 . The following table presents supplemental interim unaudited condensed consolidated balance sheet information related to leases as of June 30, 2019 (in thousands). June 30, 2019 Operating leases Other assets $ 78,845 Other current liabilities $ (40,870 ) Other long-term liabilities (43,012 ) Total operating lease liabilities $ (83,882 ) Financing leases Other property and equipment, at cost $ 2,846 Accumulated depreciation (865 ) Net property and equipment $ 1,981 Other current liabilities $ (1,108 ) Other long-term liabilities (1,146 ) Total financing lease liabilities $ (2,254 ) The following table presents supplemental interim unaudited condensed consolidated cash flow information related to lease payments for the six months ended June 30, 2019 (in thousands). Six Months Ended Cash paid related to lease liabilities Operating cash payments for operating leases $ 6,790 Investing cash payments for operating leases $ 13,509 Financing cash payments for financing leases $ 490 Right of use assets obtained in exchange for lease obligations entered into during the period Operating leases $ 28,884 Financing leases $ 471 The following table presents the maturities of lease liabilities at June 30, 2019 (in years). Weighted-Average Remaining Lease Term June 30, 2019 Operating leases 3.0 Financing leases 2.6 The following table presents a schedule of future minimum lease payments required under all lease agreements as of June 30, 2019 and December 31, 2018 , respectively (in thousands). June 30, 2019 Operating Leases Financing Leases 2019 $ 22,075 $ 493 2020 32,051 747 2021 19,981 581 2022 3,989 504 2023 3,234 — Thereafter 7,679 — Total lease payments 89,009 2,325 Less imputed interest (5,127 ) (71 ) Total lease obligations 83,882 2,254 Less current obligations (40,870 ) (1,108 ) Long-term lease obligations $ 43,012 $ 1,146 December 31, 2018 Operating Leases Financing Leases 2019 $ 39,457 $ 1,240 2020 12,009 913 2021 3,513 534 2022 3,209 455 2023 3,234 — Thereafter 7,680 — Total lease payments 69,102 3,142 Less imputed interest (4,300 ) (130 ) Total lease obligations 64,802 3,012 Less current obligations (39,457 ) (1,240 ) Long-term lease obligations $ 25,345 $ 1,772 |
Leases | The Company determines if an arrangement is a lease at inception of the contract. If an arrangement is a lease, the present value of the related lease payments is recorded as a liability and an equal amount is capitalized as a right of use asset on the Company’s interim unaudited condensed consolidated balance sheet. Right of use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The Company’s estimated incremental borrowing rate, determined at the lease commencement date using the Company’s average secured borrowing rate, is used to calculate present value. The weighted average estimated incremental borrowing rate used for the three months ended June 30, 2019 was 3.73% . For these purposes, the lease term includes options to extend the lease when it is reasonably certain that the Company will exercise such option. Leases with terms of 12 months or less at inception are not recorded on the interim unaudited condensed consolidated balance sheet unless there is a significant cost to terminate the lease, including the cost of removal of the leased asset. As the Company is the responsible party under these arrangements, the Company records the resulting assets and liabilities on a gross basis in its interim unaudited condensed consolidated balance sheets. The following table presents supplemental interim unaudited condensed consolidated statement of operations information related to lease expenses, on a gross basis, for the three and six months ended June 30, 2019 (in thousands). Lease payments represent gross payments to vendors, which, for certain of our operating assets, are partially offset by amounts received from other working interest owners in our operated wells. Three Months Ended Six Months Ended Operating leases Lease operating $ 2,965 $ 5,207 Plant and other midstream services 30 61 General and administrative 665 1,474 Total operating leases (1) 3,660 6,742 Short-term leases Lease operating 3,392 5,601 Plant and other midstream services 1,131 2,751 General and administrative 5 17 Total short-term leases (2)(3) 4,528 8,369 Financing leases Depreciation of assets 231 440 Interest on lease liabilities 33 64 Total financing leases 264 504 Total lease expense $ 8,452 $ 15,615 _____________________ (1) Does not include gross payments related to drilling rig leases of $8.2 million and $13.5 million for the three and six months ended June 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at June 30, 2019 . (2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the interim unaudited condensed consolidated balance sheet as they are short-term leases. (3) Does not include gross payments related to short-term drilling rig leases and other equipment rentals of $10.7 million and $37.2 million for the three and six months ended June 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at June 30, 2019 . The following table presents supplemental interim unaudited condensed consolidated balance sheet information related to leases as of June 30, 2019 (in thousands). June 30, 2019 Operating leases Other assets $ 78,845 Other current liabilities $ (40,870 ) Other long-term liabilities (43,012 ) Total operating lease liabilities $ (83,882 ) Financing leases Other property and equipment, at cost $ 2,846 Accumulated depreciation (865 ) Net property and equipment $ 1,981 Other current liabilities $ (1,108 ) Other long-term liabilities (1,146 ) Total financing lease liabilities $ (2,254 ) The following table presents supplemental interim unaudited condensed consolidated cash flow information related to lease payments for the six months ended June 30, 2019 (in thousands). Six Months Ended Cash paid related to lease liabilities Operating cash payments for operating leases $ 6,790 Investing cash payments for operating leases $ 13,509 Financing cash payments for financing leases $ 490 Right of use assets obtained in exchange for lease obligations entered into during the period Operating leases $ 28,884 Financing leases $ 471 The following table presents the maturities of lease liabilities at June 30, 2019 (in years). Weighted-Average Remaining Lease Term June 30, 2019 Operating leases 3.0 Financing leases 2.6 The following table presents a schedule of future minimum lease payments required under all lease agreements as of June 30, 2019 and December 31, 2018 , respectively (in thousands). June 30, 2019 Operating Leases Financing Leases 2019 $ 22,075 $ 493 2020 32,051 747 2021 19,981 581 2022 3,989 504 2023 3,234 — Thereafter 7,679 — Total lease payments 89,009 2,325 Less imputed interest (5,127 ) (71 ) Total lease obligations 83,882 2,254 Less current obligations (40,870 ) (1,108 ) Long-term lease obligations $ 43,012 $ 1,146 December 31, 2018 Operating Leases Financing Leases 2019 $ 39,457 $ 1,240 2020 12,009 913 2021 3,513 534 2022 3,209 455 2023 3,234 — Thereafter 7,680 — Total lease payments 69,102 3,142 Less imputed interest (4,300 ) (130 ) Total lease obligations 64,802 3,012 Less current obligations (39,457 ) (1,240 ) Long-term lease obligations $ 25,345 $ 1,772 |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | The following table summarizes the changes in the Company’s asset retirement obligations for the six months ended June 30, 2019 (in thousands). Beginning asset retirement obligations $ 31,086 Liabilities incurred during period 1,427 Liabilities settled during period (154 ) Divestitures during period (951 ) Accretion expense 834 Ending asset retirement obligations 32,242 Less: current asset retirement obligations (1) (1,556 ) Long-term asset retirement obligations $ 30,686 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2019 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | At June 30, 2019 and July 31, 2019, the Company had $1.05 billion of outstanding senior notes due 2026 (the “Notes”), $205.0 million in borrowings outstanding under its revolving credit facility (the “Credit Agreement”) and approximately $13.6 million in outstanding letters of credit issued pursuant to the Credit Agreement. At June 30, 2019 and July 31, 2019 , San Mateo I had $240.0 million in borrowings outstanding under its revolving credit facility (the “San Mateo Credit Facility”) and approximately $16.2 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. Credit Agreements MRC Energy Company The borrowing base under the Credit Agreement is determined semi-annually as of May 1 and November 1 by the lenders based primarily on the estimated value of the Company’s proved oil and natural gas reserves at December 31 and June 30 of each year, respectively. The Company and the lenders may each request an unscheduled redetermination of the borrowing base once between scheduled redetermination dates. In April 2019 , the lenders completed their review of the Company’s proved oil and natural gas reserves at December 31, 2018, and, as a result, the borrowing base was increased to $900.0 million . The Company elected to keep the borrowing commitment at $500.0 million , and the maximum facility amount remained $1.5 billion . This April 2019 redetermination constituted the regularly scheduled May 1 redetermination. Borrowings under the Credit Agreement are limited to the lowest of the borrowing base, the maximum facility amount and the elected commitment. The Credit Agreement matures on October 31, 2023. The Company believes that it was in compliance with the terms of the Credit Agreement at June 30, 2019 . San Mateo Midstream, LLC On December 19, 2018, San Mateo I entered into the $250.0 million San Mateo Credit Facility, which matures December 19, 2023. The San Mateo Credit Facility includes an accordion feature, which could increase the lender commitments to up to $400.0 million . The San Mateo Credit Facility is non-recourse with respect to Matador and its wholly-owned subsidiaries, as well as San Mateo II, but is guaranteed by San Mateo I’s subsidiaries and secured by substantially all of San Mateo I’s assets, including real property. On June 12, 2019, pursuant to the accordion feature, the lender commitments under the San Mateo Credit Facility were increased to $325.0 million . The Company believes that San Mateo I was in compliance with the terms of the San Mateo Credit Facility at June 30, 2019 . Senior Unsecured Notes In August and October 2018, the Company issued $750.0 million and $300.0 million , respectively, of Notes, which have a 5.875% coupon rate. The Notes will mature September 15, 2026, and interest is payable on the Notes semi-annually in arrears on each March 15 and September 15. The Notes are guaranteed on a senior unsecured basis by certain subsidiaries of the Company. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rate for the three and six months ended June 30, 2019 was 26% and 37% , respectively. The Company’s total income tax provision for the three and six months ended June 30, 2019 differed from amounts computed by applying the U.S. federal statutory tax rates to pre-tax income due primarily to the impact of permanent differences between book and tax income at June 30, 2019 . Due to a variety of factors, including the Company’s significant net income in 2017 and 2018, the Company’s federal valuation allowance and a portion of the Company’s state valuation allowance were reversed at December 31, 2018 as the deferred tax assets were determined to be more likely than not to be utilized. As a portion of the Company’s state net operating loss carryforwards are not expected to be utilized before expiration, a valuation allowance will continue to be recognized until the state deferred tax assets are more likely than not to be utilized. The Company’s deferred tax assets exceeded its deferred tax liabilities at June 30, 2018 due to the deferred tax assets generated by full-cost ceiling impairment charges in prior periods. The Company established a valuation allowance against most of the deferred tax assets beginning in the third quarter of 2015 and retained a full valuation allowance at June 30, 2018 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
EQUITY | 019, the Company granted awards to certain of its employees of 428,006 service-based restricted stock units to be settled in cash, which are liability instruments, and 428,006 performance-based stock units, which are equity instruments. The performance-based stock units vest in an amount between zero and 200% of the target units granted based on the Company’s relative total shareholder return over the three -year period ending December 31, 2021, as compared to a designated peer group. The service-based restricted stock units vest ratably over three years , and the performance-based stock units are eligible to vest after completion of the three -year performance period. The fair value of these awards was approximately $16.8 million on the grant date. In April 2019, the Company granted awards to certain of its employees of 259,038 service-based restricted stock units to be settled in cash, which are liability instruments, and 205,361 shares of service-based restricted stock, which are equity instruments. Both the liability instruments and the equity instruments vest ratably over three years . The fair value of these awards was approximately $9.2 million on the grant date. San Mateo II On February 25, 2019, the Company announced the formation of San Mateo II, a strategic joint venture with a subsidiary of Five Point Energy LLC (“Five Point”) designed to expand the Company’s midstream operations in the Delaware Basin, specifically in Eddy County, New Mexico. San Mateo II is owned 51 % by the Company and 49% by Five Point. In addition, Five Point has committed to pay $125 million of the first $150 million of capital expenditures incurred by San Mateo II to develop facilities in the Stebbins area and surrounding leaseholds in the southern portion of the Arrowhead asset area (the “Greater Stebbins Area”) and the Stateline asset area. The Company also has the ability to earn up to $150 million in deferred performance incentives over the next five years related to the formation of San Mateo II , plus additional performance incentives for securing volumes from third-party customers. During the first quarter of 2019, the Company contributed $1.0 million of property to San Mateo II. During the three and six months ended June 30, 2019 , the Company contributed $1.5 million and $1.5 million of cash and Five Point contributed $7.5 million and $11.5 million of cash to San Mateo II, respectively. Performance Incentives In connection with the formation of San Mateo I in 2017, the Company has the ability to earn a total of $73.5 million in performance incentives to be paid by Five Point over a five -year period. The Company earned, and Five Point paid to the Company, $14.7 million in performance incentives during each of the six months ended June 30, 2019 and 2018, and the Company may earn up to an additional $44.1 million in performance incentives over the next three years . These performance incentives are recorded as an increase to additional paid-in capital when received. These performance incentives for the six months ended June 30, 2019 and 2018 are also denoted as “Contributions related to formation of San Mateo I” under “Financing activities” in the Company’s interim unaudited condensed consolidated statements of cash flows and changes in shareholders’ equity. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS At June 30, 2019 , the Company had various costless collar, three-way costless collar and swap contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling and fixed price for the swaps. Each contract is set to expire at varying times during 2019 and 2020. The following is a summary of the Company’s open costless collar contracts for oil and natural gas at June 30, 2019 . Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (Liability) (thousands) Oil 07/01/2019 - 12/31/2019 3,900,000 $ 50.26 $ 70.94 $ 3,354 Oil 01/01/2020 - 12/31/2020 2,640,000 $ 48.50 $ 69.50 4,555 Natural Gas 07/01/2019 - 12/31/2019 1,200,000 $ 2.50 $ 3.80 272 Total open costless collar contracts $ 8,181 The following is a summary of the Company’s open three-way costless collar contracts for oil and natural gas at June 30, 2019 . Open three-way costless collars consist of a long put (the floor), a short call (the ceiling) and a long call that limits losses on the upside. Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or $/MMBtu) Weighted Average Price, Short Call ($/Bbl or $/MMBtu) Weighted Average Price, Long Call ($/Bbl or $/MMBtu) Fair Value of Asset (Liability) (thousands) Oil 07/01/2019 - 12/31/2019 660,000 $ 60.00 $ 75.00 $ 78.85 $ 2,829 Natural Gas 07/01/2019 - 12/31/2019 2,400,000 $ 2.50 $ 3.00 $ 3.24 528 Total open three-way costless collar contracts $ 3,357 The following is a summary of the Company’s open basis swap contracts for oil at June 30, 2019 . Commodity Calculation Period Notional Quantity (Bbl) Fixed Price ($/Bbl) Fair Value of Asset (Liability) (thousands) Oil Basis Swaps 08/1/2019 - 12/31/2019 1,377,000 $ 0.33 $ (39 ) Oil Basis Swaps 01/01/2020 - 12/31/2020 4,494,000 $ 0.42 (1,215 ) Total open swap contracts $ (1,254 ) At June 30, 2019 , the Company had an aggregate asset value for open derivative financial instruments of $10.3 million . The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its interim unaudited condensed consolidated balance sheets. The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed June 30, 2019 Current assets $ 12,671 $ (4,400 ) $ 8,271 Other assets 4,710 (2,508 ) 2,202 Current liabilities (4,400 ) 4,400 — Long-term liabilities (2,697 ) 2,508 (189 ) Total $ 10,284 $ — $ 10,284 December 31, 2018 Current assets $ 53,136 $ (3,207 ) $ 49,929 Current liabilities (3,207 ) 3,207 — Long-term liabilities (83 ) — (83 ) Total $ 49,846 $ — $ 49,846 The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Three Months Ended Six Months Ended Type of Instrument Location in Condensed Consolidated Statement of Operations 2019 2018 2019 2018 Derivative Instrument Oil Revenues: Realized gain (loss) on derivatives $ 1,165 $ (2,488 ) $ 4,531 $ (6,797 ) Natural Gas Revenues: Realized (loss) gain on derivatives — — (96 ) 51 Realized gain (loss) on derivatives 1,165 (2,488 ) 4,435 (6,746 ) Oil Revenues: Unrealized gain (loss) on derivatives 5,365 1,829 (40,078 ) 12,956 Natural Gas Revenues: Unrealized gain (loss) on derivatives 792 (400 ) 516 (1,111 ) Unrealized gain (loss) on derivatives 6,157 1,429 (39,562 ) 11,845 Total $ 7,322 $ (1,059 ) $ (35,127 ) $ 5,099 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | The Company measures and reports certain financial and non-financial assets and liabilities on a fair value basis. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Fair value measurements are classified and disclosed in one of the following categories. Level 1 Unadjusted quoted prices for identical, unrestricted assets or liabilities in active markets. Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. This category includes those derivative instruments that are valued with industry standard models that consider various inputs, including: (i) quoted forward prices for commodities, (ii) time value of money and (iii) current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the derivative instrument and can be derived from observable data or supported by observable levels at which transactions are executed in the marketplace. Level 3 Unobservable inputs that are not corroborated by market data that reflect a company’s own market assumptions. Financial and non-financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The assessment of the significance of a particular input to the fair value measurement requires judgment, which may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The following tables summarize the valuation of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis in accordance with the classifications provided above as of June 30, 2019 and December 31, 2018 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ 9,484 $ — $ 9,484 Natural gas derivatives — 800 — 800 Total $ — $ 10,284 $ — $ 10,284 Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ 49,562 $ — $ 49,562 Natural gas derivatives — 284 — 284 Total $ — $ 49,846 $ — $ 49,846 Additional disclosures related to derivative financial instruments are provided in Note 8. Other Fair Value Measurements At June 30, 2019 and December 31, 2018 , the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses and other assets, accounts payable, accrued liabilities, royalties payable, amounts due to affiliates, advances from joint interest owners, amounts due to joint ventures and other current liabilities approximated their fair values due to their short-term maturities. At June 30, 2019 , the carrying value of borrowings under the Credit Agreement and the San Mateo Credit Facility approximated their fair value as both are subject to short-term floating interest rates that reflect market rates available to the Company at the time and are classified at Level 2 in the fair value hierarchy. At June 30, 2019 and December 31, 2018 , the fair value of the Notes was $1.07 billion and $0.97 billion , respectively, based on quoted market prices, which represent Level 1 inputs in the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Processing, Transportation and Salt Water Disposal Commitments Firm Commitments From time to time, the Company enters into agreements with third parties whereby the Company commits to deliver anticipated natural gas and oil production and salt water from certain portions of its acreage for gathering, transportation, processing, fractionation, sales and, in the case of salt water, disposal. The Company paid approximately $6.1 million and $5.1 million for deliveries under these agreements during the three months ended June 30, 2019 and 2018, respectively, and $12.9 million and $9.1 million for deliveries under these agreements during the six months ended June 30, 2019 and 2018, respectively. Certain of these agreements contain minimum volume commitments. If the Company does not meet the minimum volume commitments under these agreements, it will be required to pay certain deficiency fees. If the Company ceased operations in the areas subject to these agreements at June 30, 2019 , the total deficiencies required to be paid by the Company under these agreements would be approximately $163.4 million , in addition to the commitments described below. Future Commitments In late 2017, the Company entered into a fixed-fee natural gas liquids (“NGL”) sales agreement whereby the Company committed to deliver its NGL production at the tailgate of the Black River cryogenic natural gas processing plant in Eddy County, New Mexico (the “Black River Processing Plant”) to a certain counterparty. The Company is committed to deliver a minimum amount of NGLs to the counterparty upon construction and completion of a pipeline extension and a fractionation facility by the counterparty, which is currently expected to be completed in 2020. The Company has no rights to compel the counterparty to construct this pipeline extension or fractionation facility. If the counterparty does not construct the pipeline extension and fractionation facility, then the Company does not have any minimum volume commitments under the agreement. If the counterparty constructs the pipeline extension and fractionation facility on or prior to February 28, 2021, then the Company will have a commitment to deliver a minimum amount of NGLs for seven years following the completion of the pipeline extension and fractionation facility. If the Company does not meet its NGL volume commitment in any quarter during the seven -year commitment period, it will be required to pay a deficiency fee per gallon of NGL deficiency. Should the pipeline extension and fractionation facility be completed on or prior to February 28, 2021, the minimum contractual obligation during the seven -year period would be approximately $132.3 million . In April 2018, the Company also entered into a 16 -year, fixed-fee natural gas transportation agreement that begins on October 1, 2019, whereby the Company committed to deliver a portion of the residue gas production at the tailgate of the Black River Processing Plant to transport through the counterparty’s pipeline. The Company will owe the fees to transport the committed volume whether or not the committed volume is transported through the counterparty’s pipeline. The minimum contractual obligation at June 30, 2019 was approximately $56.8 million . In May 2018, the Company also entered into a 10 -year, fixed-fee natural gas sales agreement whereby the Company committed to deliver residue gas through the counterparty’s pipeline to the Texas Gulf Coast beginning on the in-service date of such pipeline, which is expected to be operational in the fourth quarter of 2019. If the Company does not meet the volume commitment specified in the natural gas sales agreement, it may be required to pay a deficiency fee per MMBtu of natural gas deficiency. The minimum contractual obligation at June 30, 2019 was approximately $202.3 million . Delaware Basin — San Mateo In February 2017, the Company dedicated its current and future leasehold interests in the Rustler Breaks and Wolf asset areas pursuant to 15 -year, fixed-fee natural gas, oil and salt water gathering agreements and salt water disposal agreements with subsidiaries of San Mateo I. In addition, the Company dedicated its current and future leasehold interests in the Rustler Breaks asset area pursuant to a 15 -year, fixed-fee natural gas processing agreement (collectively with the gathering and salt water disposal agreements, the “Operational Agreements”). San Mateo I provides the Company with firm service under each of the Operational Agreements in exchange for certain minimum volume commitments. The minimum contractual obligation under the Operational Agreements at June 30, 2019 was approximately $183.8 million . In connection with the February 2019 formation of San Mateo II, the Company dedicated to San Mateo II acreage in the Greater Stebbins Area and the Stateline asset area pursuant to 15 -year, fixed-fee agreements for oil, natural gas and salt water gathering, natural gas processing and salt water disposal (collectively, the “San Mateo II Operational Agreements”). San Mateo II will provide the Company with firm service under each of the San Mateo II Operational Agreements in exchange for certain minimum volume commitments. The minimum contractual obligation under the San Mateo II Operational Agreements at inception was approximately $363.8 million and begins in 2020. In June 2019, a subsidiary of San Mateo II entered into an agreement with third parties for the engineering, procurement, construction and installation of an expansion of the Black River Processing Plant, including required compression. The expansion is expected to be placed in service in 2020. San Mateo II’s total commitments under this agreement are $80.1 million . San Mateo II paid approximately $8.3 million under this agreement during the three months ended June 30, 2019 . As of June 30, 2019 , the remaining obligations under this agreement were $71.8 million , which are expected to be paid within the next 12 months. Legal Proceedings The Company is a party to several legal proceedings encountered in the ordinary course of its business. While the ultimate outcome and impact on the Company cannot be predicted with certainty, in the opinion of management, it is remote that these legal proceedings will have a material adverse impact on the Company’s financial condition, results of operations or cash flows. |
Supplemental Disclosures
Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Disclosures [Abstract] | |
SUPPLEMENTAL DISCLOSURES | Accrued Liabilities The following table summarizes the Company’s current accrued liabilities at June 30, 2019 and December 31, 2018 (in thousands). June 30, December 31, Accrued evaluated and unproved and unevaluated property costs $ 100,014 $ 86,318 Accrued midstream property costs 21,840 16,808 Accrued lease operating expenses 20,812 12,705 Accrued interest on debt 18,599 22,448 Accrued asset retirement obligations 1,556 1,350 Accrued partners’ share of joint interest charges 17,165 17,037 Other 11,622 14,189 Total accrued liabilities $ 191,608 $ 170,855 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the six months ended June 30, 2019 and 2018 (in thousands). Six Months Ended 2019 2018 Cash paid for interest expense, net of amounts capitalized $ 37,632 $ 14,286 Increase in asset retirement obligations related to mineral properties $ 321 $ 834 Increase in asset retirement obligations related to midstream properties $ 283 $ 296 Increase (decrease) in liabilities for oil and natural gas properties capital expenditures $ 13,536 $ (26,389 ) Increase (decrease) in liabilities for midstream properties capital expenditures $ 5,854 $ (2,371 ) Decrease in liabilities for accrued cost to issue equity $ — $ 73 Transfer of inventory from oil and natural gas properties $ 370 $ 343 Transfer of inventory to midstream properties $ — $ (2,390 ) The following table provides a reconciliation of cash and restricted cash recorded in the interim unaudited condensed consolidated balance sheets to cash and restricted cash as presented on the interim unaudited condensed consolidated statements of cash flows (in thousands). Six Months Ended 2019 2018 Cash $ 59,950 $ 122,450 Restricted cash 24,812 21,063 Total cash and restricted cash $ 84,762 $ 143,513 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | The Company operates in two business segments: (i) exploration and production and (ii) midstream. The exploration and production segment is engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States and is currently 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. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. The midstream segment conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and salt water gathering services and salt water disposal services to third parties. Substantially all of the Company’s midstream operations in the Rustler Breaks and Wolf asset areas in the Delaware Basin are conducted through San Mateo. The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.” Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended June 30, 2019 Oil and natural gas revenues $ 209,563 $ 1,497 $ — $ — $ 211,060 Midstream services revenues — 32,166 — (17,807 ) 14,359 Sales of purchased natural gas — 8,963 — — 8,963 Realized gain on derivatives 1,165 — — — 1,165 Unrealized loss on derivatives 6,157 — — — 6,157 Expenses (1) 141,514 23,425 17,783 (17,807 ) 164,915 Operating income (loss) (2) $ 75,371 $ 19,201 $ (17,783 ) $ — $ 76,789 Total assets $ 3,155,577 $ 508,074 $ 87,800 $ — $ 3,751,451 Capital expenditures (3) $ 166,532 $ 41,707 $ 1,400 $ — $ 209,639 _____________________ (1) Includes depletion, depreciation and amortization expenses of $75.7 million and $3.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million . (2) Includes $8.3 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $8.2 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $24.2 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended June 30, 2018 Oil and natural gas revenues $ 207,229 $ 1,790 $ — $ — $ 209,019 Midstream services revenues — 19,896 — (16,489 ) 3,407 Realized loss on derivatives (2,488 ) — — — (2,488 ) Unrealized gain on derivatives 1,429 — — — 1,429 Expenses (1) 126,025 9,363 18,475 (16,489 ) 137,374 Operating income (loss) (2) $ 80,145 $ 12,323 $ (18,475 ) $ — $ 73,993 Total assets $ 2,058,447 $ 354,068 $ 143,332 $ — $ 2,555,847 Capital expenditures (3) $ 199,345 $ 32,900 $ 732 $ — $ 232,977 _____________________ (1) Includes depletion, depreciation and amortization expenses of $64.5 million and $2.3 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $25,000 . (2) Includes $5.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $16.1 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Six Months Ended June 30, 2019 Oil and natural gas revenues $ 401,226 $ 3,103 $ — $ — $ 404,329 Midstream services revenues — 62,420 — (36,223 ) 26,197 Sales of purchased natural gas — 20,194 — — 20,194 Realized gain on derivatives 4,435 — — — 4,435 Unrealized loss on derivatives (39,562 ) — — — (39,562 ) Expenses (1) 283,493 49,260 34,734 (36,223 ) 331,264 Operating income (loss) (2) $ 82,606 $ 36,457 $ (34,734 ) $ — $ 84,329 Total assets $ 3,155,577 $ 508,074 $ 87,800 $ — $ 3,751,451 Capital expenditures (3) $ 364,143 $ 71,139 $ 2,206 $ — $ 437,488 _____________________ (1) Includes depletion, depreciation and amortization expenses of $148.3 million and $7.5 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $1.2 million . (2) Includes $15.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $31.3 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $37.9 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Six Months Ended June 30, 2018 Oil and natural gas revenues $ 387,489 $ 3,484 $ — $ — $ 390,973 Midstream services revenues — 35,708 — (29,233 ) 6,475 Realized loss on derivatives (6,746 ) — — — (6,746 ) Unrealized gain on derivatives 11,845 — — — 11,845 Expenses (1) 232,180 16,561 35,684 (29,233 ) 255,192 Operating income (loss) (2) $ 160,408 $ 22,631 $ (35,684 ) $ — $ 147,355 Total assets $ 2,058,447 $ 354,068 $ 143,332 $ — $ 2,555,847 Capital expenditures (3) $ 388,790 $ 78,617 $ 1,258 $ — $ 468,665 _____________________ (1) Includes depletion, depreciation and amortization expenses of $117.8 million and $3.9 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million . (2) Includes $10.9 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $38.5 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. |
Subsidiary Guarantors
Subsidiary Guarantors | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
SUBSIDIARY GUARANTORS | The Notes are jointly and severally guaranteed by certain subsidiaries of Matador (the “Guarantor Subsidiaries”) on a full and unconditional basis (except for customary release provisions). At June 30, 2019 , the Guarantor Subsidiaries were 100% owned by Matador. Matador is a parent holding company and has no independent assets or operations, and there are no significant restrictions on the ability of Matador to obtain funds from the Guarantor Subsidiaries by dividend or loan. San Mateo and its subsidiaries (the “Non-Guarantor Subsidiaries”) are not guarantors of the Notes. The following tables present condensed consolidating financial information of Matador (as issuer of the Notes), the Non-Guarantor Subsidiaries, the Guarantor Subsidiaries and all entities on a consolidated basis (in thousands). Elimination entries are necessary to combine the entities. This financial information is presented in accordance with the requirements of Rule 3-10 of Regulation S-X. The following financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 1,582,828 $ 12,535 $ — $ (1,595,363 ) $ — Current assets 3,967 44,100 225,317 — 273,384 Net property and equipment — 438,681 2,944,662 — 3,383,343 Investment in subsidiaries 1,211,056 — 109,227 (1,320,283 ) — Long-term assets 10,589 1,700 92,004 (9,569 ) 94,724 Total assets $ 2,808,440 $ 497,016 $ 3,371,210 $ (2,925,215 ) $ 3,751,451 LIABILITIES AND EQUITY Intercompany payable $ — $ — $ 1,595,363 $ (1,595,363 ) $ — Current liabilities 18,493 33,080 286,004 (802 ) 336,775 Senior unsecured notes payable 1,038,625 — — — 1,038,625 Other long-term liabilities 14,845 250,583 278,787 (8,767 ) 535,448 Total equity attributable to Matador Resources Company 1,736,477 109,227 1,211,056 (1,320,283 ) 1,736,477 Non-controlling interest in subsidiaries — 104,126 — — 104,126 Total liabilities and equity $ 2,808,440 $ 497,016 $ 3,371,210 $ (2,925,215 ) $ 3,751,451 Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 1,244,405 $ 29,816 $ — $ (1,274,221 ) $ — Current assets 4,109 34,027 267,549 — 305,685 Net property and equipment — 379,052 2,743,812 — 3,122,864 Investment in subsidiaries 1,490,401 — 95,346 (1,585,747 ) — Long-term assets 23,897 1,479 11,095 (9,502 ) 26,969 Total assets $ 2,762,812 $ 444,374 $ 3,117,802 $ (2,869,470 ) $ 3,455,518 LIABILITIES AND EQUITY Intercompany payable $ — $ — $ 1,274,221 $ (1,274,221 ) $ — Current liabilities 22,874 27,988 279,884 (724 ) 330,022 Senior unsecured notes payable 1,037,837 — — — 1,037,837 Other long-term liabilities 13,221 230,263 73,296 (8,778 ) 308,002 Total equity attributable to Matador Resources Company 1,688,880 95,346 1,490,401 (1,585,747 ) 1,688,880 Non-controlling interest in subsidiaries — 90,777 — — 90,777 Total liabilities and equity $ 2,762,812 $ 444,374 $ 3,117,802 $ (2,869,470 ) $ 3,455,518 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 41,720 $ 216,885 $ (16,901 ) $ 241,704 Total expenses 901 22,564 158,351 (16,901 ) 164,915 Operating (loss) income (901 ) 19,156 58,534 — 76,789 Inventory impairment — — (368 ) — (368 ) Interest expense (15,888 ) (2,180 ) — — (18,068 ) Other income (expense) — 3 (426 ) — (423 ) Earnings in subsidiaries 66,399 — 8,659 (75,058 ) — Income before income taxes 49,610 16,979 66,399 (75,058 ) 57,930 Total income tax provision 12,858 — — — 12,858 Net income attributable to non-controlling interest in subsidiaries — (8,320 ) — — (8,320 ) Net income attributable to Matador Resources Company shareholders $ 36,752 $ 8,659 $ 66,399 $ (75,058 ) $ 36,752 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 21,356 $ 206,219 $ (16,208 ) $ 211,367 Total expenses 1,178 9,466 142,938 (16,208 ) 137,374 Operating (loss) income (1,178 ) 11,890 63,281 — 73,993 Interest expense (8,004 ) — — — (8,004 ) Other income (expense) — 11 (363 ) — (352 ) Earnings in subsidiaries 68,988 — 6,070 (75,058 ) — Income before income taxes 59,806 11,901 68,988 (75,058 ) 65,637 Net income attributable to non-controlling interest in subsidiaries — (5,831 ) — — (5,831 ) Net income attributable to Matador Resources Company shareholders $ 59,806 $ 6,070 $ 68,988 $ (75,058 ) $ 59,806 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 84,596 $ 366,133 $ (35,136 ) $ 415,593 Total expenses 1,936 48,069 316,395 (35,136 ) 331,264 Operating (loss) income (1,936 ) 36,527 49,738 — 84,329 Inventory impairment — — (368 ) — (368 ) Interest expense (31,675 ) (4,322 ) — — (35,997 ) Other income (expense) — 3 (535 ) — (532 ) Earnings in subsidiaries 65,261 — 16,426 (81,687 ) — Income before income taxes 31,650 32,208 65,261 (81,687 ) 47,432 Total income tax provision 11,845 — — — 11,845 Net income attributable to non-controlling interest in subsidiaries — (15,782 ) — — (15,782 ) Net income attributable to Matador Resources Company shareholders $ 19,805 $ 16,426 $ 65,261 $ (81,687 ) $ 19,805 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 38,550 $ 392,699 $ (28,702 ) $ 402,547 Total expenses 2,412 16,394 265,088 (28,702 ) 255,192 Operating (loss) income (2,412 ) 22,156 127,611 — 147,355 Interest expense (16,495 ) — — — (16,495 ) Other income (expense) 6 11 (316 ) — (299 ) Earnings in subsidiaries 138,601 — 11,306 (149,907 ) — Income before income taxes 119,700 22,167 138,601 (149,907 ) 130,561 Net income attributable to non-controlling interest in subsidiaries — (10,861 ) — — (10,861 ) Net income attributable to Matador Resources Company shareholders $ 119,700 $ 11,306 $ 138,601 $ (149,907 ) $ 119,700 Condensed Consolidating Statement of Cash Flows Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (109 ) $ 51,266 $ 143,340 $ — $ 194,497 Net cash used in investing activities — (59,309 ) (327,195 ) (8,190 ) (394,694 ) Net cash provided by financing activities — 13,584 179,201 8,190 200,975 (Decrease) increase in cash and restricted cash (109 ) 5,541 (4,654 ) — 778 Cash and restricted cash at beginning of period 456 18,841 64,687 — 83,984 Cash and restricted cash at end of period $ 347 $ 24,382 $ 60,033 $ — $ 84,762 Condensed Consolidating Statement of Cash Flows Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash (used in) provided by operating activities $ (224,441 ) $ 10,225 $ 468,424 $ — $ 254,208 Net cash used in investing activities — (79,119 ) (454,478 ) 40,035 (493,562 ) Net cash provided by financing activities 226,539 83,400 10,481 (40,035 ) 280,385 Increase in cash and restricted cash 2,098 14,506 24,427 — 41,031 Cash and restricted cash at beginning of period 286 5,663 96,533 — 102,482 Cash and restricted cash at end of period $ 2,384 $ 20,169 $ 120,960 $ — $ 143,513 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates | Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including San Mateo, and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification (“ASC”), Consolidation (Topic 810) . The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of June 30, 2019 . Amounts as of December 31, 2018 are derived from the Company’s audited consolidated financial statements included in the Annual Report. Certain reclassifications have been made to the December 31, 2018 financial statement amounts in order to conform them to the June 30, 2019 presentations. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates. |
Change in Accounting Principles and Recent Accounting Pronouncements | Change in Accounting Principles Leases. During the first quarter of 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) and the amendments provided for in ASU 2018-11, Leases (Topic 842) , which require the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that the Company chose to apply. These practical expedients relate to (i) the identification and classification of leases that commenced before the effective date, (ii) the treatment of initial direct costs for leases that commenced before the effective date, (iii) the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset and (iv) the ability to initially apply the new lease standard at the adoption date. During the first quarter of 2019, the Company also adopted ASU 2018-01, Leases (Topic 842) , which is a land easement practical expedient, and, as a result, the Company began evaluating land easements that are entered into or modified after December 31, 2018. See Note 3 for additional disclosures related to leases. The adoption of these ASUs resulted in the Company recording in the condensed consolidated balance sheet beginning January 1, 2019 certain of the Company’s compressor leases, drilling rig leases and office leases, which were previously considered operating leases and not reported on the Company’s condensed consolidated balance sheets. As such, upon adoption, the Company recorded (i) long-term right of use assets of $62.3 million , which are included in “Other assets” and “Other property and equipment,” and (ii) net right of use liabilities of $62.3 million , which are included in “Other current liabilities” and “Other long-term liabilities.” There was no cumulative-effect adjustment to the opening balance of accumulated deficit as a result of the adoption of these ASUs. Stock Compensation. During the first quarter of 2019, the Company also adopted ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting , which extends the scope of Topic 718 to include share-based payment transactions related to the acquisition of goods and services from nonemployees. Previously, the Company accounted for stock-based awards to special advisors and contractors under ASC 505-50 as liability instruments, and the fair value of the awards was recalculated each reporting period. Upon adoption, all such awards are now measured at fair value on the grant date and the resulting expense is recognized on a straight-line basis over the awards’ vesting periods. The transitional guidance requires entities to remeasure all unvested awards that are being accounted for under ASC 505-50 as liability instruments as of the beginning of the year in which this ASU is adopted. Adoption of this ASU did not have a material impact on the Company’s condensed consolidated financial statements. Revenues The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three and six months ended June 30, 2019 and 2018 (in thousands). |
Property and Equipment | Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12 -month period. For both the three and six months ended June 30, 2019 and 2018 , the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary. |
Earnings (Loss) Per Common Share | Earnings (Loss) Per Common Share The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Disaggregation of revenue | The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three and six months ended June 30, 2019 and 2018 (in thousands). Three Months Ended Six Months Ended 2019 2018 2019 2018 Revenues from contracts with customers $ 234,382 $ 212,426 $ 450,720 $ 397,448 Realized gain (loss) on derivatives 1,165 (2,488 ) 4,435 (6,746 ) Unrealized gain (loss) on derivatives 6,157 1,429 (39,562 ) 11,845 Total revenues $ 241,704 $ 211,367 $ 415,593 $ 402,547 Three Months Ended Six Months Ended 2019 2018 2019 2018 Oil revenues $ 189,085 $ 166,271 $ 343,288 $ 314,430 Natural gas revenues 21,975 42,748 61,041 76,543 Third-party midstream services revenues 14,359 3,407 26,197 6,475 Sales of purchased natural gas 8,963 — 20,194 — Total revenues from contracts with customers $ 234,382 $ 212,426 $ 450,720 $ 397,448 |
Reconciliations of basic and diluted distributed and undistributed earnings (loss) per common share | The following table sets forth the computation of diluted weighted average common shares outstanding for the three and six months ended June 30, 2019 and 2018 (in thousands). Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted average common shares outstanding Basic 116,571 112,706 116,469 110,809 Dilutive effect of options and restricted stock units 332 350 370 471 Diluted weighted average common shares outstanding 116,903 113,056 116,839 111,280 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table presents supplemental interim unaudited condensed consolidated cash flow information related to lease payments for the six months ended June 30, 2019 (in thousands). Six Months Ended Cash paid related to lease liabilities Operating cash payments for operating leases $ 6,790 Investing cash payments for operating leases $ 13,509 Financing cash payments for financing leases $ 490 Right of use assets obtained in exchange for lease obligations entered into during the period Operating leases $ 28,884 Financing leases $ 471 The following table presents supplemental interim unaudited condensed consolidated statement of operations information related to lease expenses, on a gross basis, for the three and six months ended June 30, 2019 (in thousands). Lease payments represent gross payments to vendors, which, for certain of our operating assets, are partially offset by amounts received from other working interest owners in our operated wells. Three Months Ended Six Months Ended Operating leases Lease operating $ 2,965 $ 5,207 Plant and other midstream services 30 61 General and administrative 665 1,474 Total operating leases (1) 3,660 6,742 Short-term leases Lease operating 3,392 5,601 Plant and other midstream services 1,131 2,751 General and administrative 5 17 Total short-term leases (2)(3) 4,528 8,369 Financing leases Depreciation of assets 231 440 Interest on lease liabilities 33 64 Total financing leases 264 504 Total lease expense $ 8,452 $ 15,615 _____________________ (1) Does not include gross payments related to drilling rig leases of $8.2 million and $13.5 million for the three and six months ended June 30, 2019 , respectively, that were capitalized and recorded in “Oil and natural gas properties, full-cost method” in the interim unaudited condensed consolidated balance sheet at June 30, 2019 . (2) These costs are related to leases that are not recorded as right of use assets or lease liabilities in the interim unaudited condensed consolidated balance sheet as they are short-term leases. (3) Does not include gross payments related to short-term drilling rig leases and other equipment rentals of $10.7 million and $37.2 million for the three and six months ended June 30, 2019 |
Assets And Liabilities, Lessee | The following table presents supplemental interim unaudited condensed consolidated balance sheet information related to leases as of June 30, 2019 (in thousands). June 30, 2019 Operating leases Other assets $ 78,845 Other current liabilities $ (40,870 ) Other long-term liabilities (43,012 ) Total operating lease liabilities $ (83,882 ) Financing leases Other property and equipment, at cost $ 2,846 Accumulated depreciation (865 ) Net property and equipment $ 1,981 Other current liabilities $ (1,108 ) Other long-term liabilities (1,146 ) Total financing lease liabilities $ (2,254 ) |
Lessee, Lease Terms | The following table presents the maturities of lease liabilities at June 30, 2019 (in years). Weighted-Average Remaining Lease Term June 30, 2019 Operating leases 3.0 Financing leases 2.6 |
Finance Lease, Liability, Maturity | The following table presents a schedule of future minimum lease payments required under all lease agreements as of June 30, 2019 and December 31, 2018 , respectively (in thousands). June 30, 2019 Operating Leases Financing Leases 2019 $ 22,075 $ 493 2020 32,051 747 2021 19,981 581 2022 3,989 504 2023 3,234 — Thereafter 7,679 — Total lease payments 89,009 2,325 Less imputed interest (5,127 ) (71 ) Total lease obligations 83,882 2,254 Less current obligations (40,870 ) (1,108 ) Long-term lease obligations $ 43,012 $ 1,146 |
Lessee, Operating Lease, Liability, Maturity | The following table presents a schedule of future minimum lease payments required under all lease agreements as of June 30, 2019 and December 31, 2018 , respectively (in thousands). June 30, 2019 Operating Leases Financing Leases 2019 $ 22,075 $ 493 2020 32,051 747 2021 19,981 581 2022 3,989 504 2023 3,234 — Thereafter 7,679 — Total lease payments 89,009 2,325 Less imputed interest (5,127 ) (71 ) Total lease obligations 83,882 2,254 Less current obligations (40,870 ) (1,108 ) Long-term lease obligations $ 43,012 $ 1,146 |
Schedule of Future Minimum Rental Payments for Operating Leases | December 31, 2018 Operating Leases Financing Leases 2019 $ 39,457 $ 1,240 2020 12,009 913 2021 3,513 534 2022 3,209 455 2023 3,234 — Thereafter 7,680 — Total lease payments 69,102 3,142 Less imputed interest (4,300 ) (130 ) Total lease obligations 64,802 3,012 Less current obligations (39,457 ) (1,240 ) Long-term lease obligations $ 25,345 $ 1,772 |
Schedule of Future Minimum Lease Payments for Capital Leases | December 31, 2018 Operating Leases Financing Leases 2019 $ 39,457 $ 1,240 2020 12,009 913 2021 3,513 534 2022 3,209 455 2023 3,234 — Thereafter 7,680 — Total lease payments 69,102 3,142 Less imputed interest (4,300 ) (130 ) Total lease obligations 64,802 3,012 Less current obligations (39,457 ) (1,240 ) Long-term lease obligations $ 25,345 $ 1,772 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in Company's asset retirement obligations | The following table summarizes the changes in the Company’s asset retirement obligations for the six months ended June 30, 2019 (in thousands). Beginning asset retirement obligations $ 31,086 Liabilities incurred during period 1,427 Liabilities settled during period (154 ) Divestitures during period (951 ) Accretion expense 834 Ending asset retirement obligations 32,242 Less: current asset retirement obligations (1) (1,556 ) Long-term asset retirement obligations $ 30,686 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2019 . |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Open Option Contracts Written [Line Items] | |
Summary of gross asset balances of derivative instruments | The following table presents the gross asset and liability fair values of the Company’s commodity price derivative financial instruments and the location of these balances in the interim unaudited condensed consolidated balance sheets as of June 30, 2019 and December 31, 2018 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed June 30, 2019 Current assets $ 12,671 $ (4,400 ) $ 8,271 Other assets 4,710 (2,508 ) 2,202 Current liabilities (4,400 ) 4,400 — Long-term liabilities (2,697 ) 2,508 (189 ) Total $ 10,284 $ — $ 10,284 December 31, 2018 Current assets $ 53,136 $ (3,207 ) $ 49,929 Current liabilities (3,207 ) 3,207 — Long-term liabilities (83 ) — (83 ) Total $ 49,846 $ — $ 49,846 |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | The following table summarizes the location and aggregate gain (loss) of all derivative financial instruments recorded in the interim unaudited condensed consolidated statements of operations for the periods presented (in thousands). These derivative financial instruments are not designated as hedging instruments. Three Months Ended Six Months Ended Type of Instrument Location in Condensed Consolidated Statement of Operations 2019 2018 2019 2018 Derivative Instrument Oil Revenues: Realized gain (loss) on derivatives $ 1,165 $ (2,488 ) $ 4,531 $ (6,797 ) Natural Gas Revenues: Realized (loss) gain on derivatives — — (96 ) 51 Realized gain (loss) on derivatives 1,165 (2,488 ) 4,435 (6,746 ) Oil Revenues: Unrealized gain (loss) on derivatives 5,365 1,829 (40,078 ) 12,956 Natural Gas Revenues: Unrealized gain (loss) on derivatives 792 (400 ) 516 (1,111 ) Unrealized gain (loss) on derivatives 6,157 1,429 (39,562 ) 11,845 Total $ 7,322 $ (1,059 ) $ (35,127 ) $ 5,099 |
Open costless collar contracts | |
Open Option Contracts Written [Line Items] | |
Summary of contracts for oil and natural gas | The following is a summary of the Company’s open costless collar contracts for oil and natural gas at June 30, 2019 . Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or Weighted Average Price Ceiling ($/Bbl or Fair Value of Asset (Liability) (thousands) Oil 07/01/2019 - 12/31/2019 3,900,000 $ 50.26 $ 70.94 $ 3,354 Oil 01/01/2020 - 12/31/2020 2,640,000 $ 48.50 $ 69.50 4,555 Natural Gas 07/01/2019 - 12/31/2019 1,200,000 $ 2.50 $ 3.80 272 Total open costless collar contracts $ 8,181 The following is a summary of the Company’s open three-way costless collar contracts for oil and natural gas at June 30, 2019 . Open three-way costless collars consist of a long put (the floor), a short call (the ceiling) and a long call that limits losses on the upside. Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or $/MMBtu) Weighted Average Price, Short Call ($/Bbl or $/MMBtu) Weighted Average Price, Long Call ($/Bbl or $/MMBtu) Fair Value of Asset (Liability) (thousands) Oil 07/01/2019 - 12/31/2019 660,000 $ 60.00 $ 75.00 $ 78.85 $ 2,829 Natural Gas 07/01/2019 - 12/31/2019 2,400,000 $ 2.50 $ 3.00 $ 3.24 528 Total open three-way costless collar contracts $ 3,357 The following is a summary of the Company’s open basis swap contracts for oil at June 30, 2019 . Commodity Calculation Period Notional Quantity (Bbl) Fixed Price ($/Bbl) Fair Value of Asset (Liability) (thousands) Oil Basis Swaps 08/1/2019 - 12/31/2019 1,377,000 $ 0.33 $ (39 ) Oil Basis Swaps 01/01/2020 - 12/31/2020 4,494,000 $ 0.42 (1,215 ) Total open swap contracts $ (1,254 ) At June 30, 2019 , the Company had an aggregate asset value for open derivative financial instruments of $10.3 million . The Company’s derivative financial instruments are subject to master netting arrangements, and the Company’s counterparties allow for cross-commodity master netting provided the settlement dates for the commodities are the same. The Company does not present different types of commodities with the same counterparty on a net basis in its interim unaudited condensed consolidated balance sheets. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of the valuation of the Company's financial assets and liabilities that were accounted for at fair value on a recurring basis | Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ 9,484 $ — $ 9,484 Natural gas derivatives — 800 — 800 Total $ — $ 10,284 $ — $ 10,284 Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ 49,562 $ — $ 49,562 Natural gas derivatives — 284 — 284 Total $ — $ 49,846 $ — $ 49,846 |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Disclosures [Abstract] | |
Summary of current accrued liabilities | The following table summarizes the Company’s current accrued liabilities at June 30, 2019 and December 31, 2018 (in thousands). June 30, December 31, Accrued evaluated and unproved and unevaluated property costs $ 100,014 $ 86,318 Accrued midstream property costs 21,840 16,808 Accrued lease operating expenses 20,812 12,705 Accrued interest on debt 18,599 22,448 Accrued asset retirement obligations 1,556 1,350 Accrued partners’ share of joint interest charges 17,165 17,037 Other 11,622 14,189 Total accrued liabilities $ 191,608 $ 170,855 |
Supplemental disclosures of cash flow information | The following table provides supplemental disclosures of cash flow information for the six months ended June 30, 2019 and 2018 (in thousands). Six Months Ended 2019 2018 Cash paid for interest expense, net of amounts capitalized $ 37,632 $ 14,286 Increase in asset retirement obligations related to mineral properties $ 321 $ 834 Increase in asset retirement obligations related to midstream properties $ 283 $ 296 Increase (decrease) in liabilities for oil and natural gas properties capital expenditures $ 13,536 $ (26,389 ) Increase (decrease) in liabilities for midstream properties capital expenditures $ 5,854 $ (2,371 ) Decrease in liabilities for accrued cost to issue equity $ — $ 73 Transfer of inventory from oil and natural gas properties $ 370 $ 343 Transfer of inventory to midstream properties $ — $ (2,390 ) The following table provides a reconciliation of cash and restricted cash recorded in the interim unaudited condensed consolidated balance sheets to cash and restricted cash as presented on the interim unaudited condensed consolidated statements of cash flows (in thousands). Six Months Ended 2019 2018 Cash $ 59,950 $ 122,450 Restricted cash 24,812 21,063 Total cash and restricted cash $ 84,762 $ 143,513 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Selected financial information for segments | The following tables present selected financial information for the periods presented regarding the Company’s business segments on a stand-alone basis, corporate expenses that are not allocated to a segment and the consolidation and elimination entries necessary to arrive at the financial information for the Company on a consolidated basis (in thousands). On a consolidated basis, midstream services revenues consist primarily of those revenues from midstream operations related to third parties, including working interest owners in the Company’s operated wells. All midstream services revenues associated with Company-owned production are eliminated in consolidation. In evaluating the operating results of the exploration and production and midstream segments, the Company does not allocate certain expenses to the individual segments, including general and administrative expenses. Such expenses are reflected in the column labeled “Corporate.” Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended June 30, 2019 Oil and natural gas revenues $ 209,563 $ 1,497 $ — $ — $ 211,060 Midstream services revenues — 32,166 — (17,807 ) 14,359 Sales of purchased natural gas — 8,963 — — 8,963 Realized gain on derivatives 1,165 — — — 1,165 Unrealized loss on derivatives 6,157 — — — 6,157 Expenses (1) 141,514 23,425 17,783 (17,807 ) 164,915 Operating income (loss) (2) $ 75,371 $ 19,201 $ (17,783 ) $ — $ 76,789 Total assets $ 3,155,577 $ 508,074 $ 87,800 $ — $ 3,751,451 Capital expenditures (3) $ 166,532 $ 41,707 $ 1,400 $ — $ 209,639 _____________________ (1) Includes depletion, depreciation and amortization expenses of $75.7 million and $3.8 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $0.6 million . (2) Includes $8.3 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $8.2 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $24.2 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. Exploration and Production Consolidations and Eliminations Consolidated Company Midstream Corporate Three Months Ended June 30, 2018 Oil and natural gas revenues $ 207,229 $ 1,790 $ — $ — $ 209,019 Midstream services revenues — 19,896 — (16,489 ) 3,407 Realized loss on derivatives (2,488 ) — — — (2,488 ) Unrealized gain on derivatives 1,429 — — — 1,429 Expenses (1) 126,025 9,363 18,475 (16,489 ) 137,374 Operating income (loss) (2) $ 80,145 $ 12,323 $ (18,475 ) $ — $ 73,993 Total assets $ 2,058,447 $ 354,068 $ 143,332 $ — $ 2,555,847 Capital expenditures (3) $ 199,345 $ 32,900 $ 732 $ — $ 232,977 _____________________ (1) Includes depletion, depreciation and amortization expenses of $64.5 million and $2.3 million for the exploration and production and midstream segments, respectively. Also includes corporate depletion, depreciation and amortization expenses of $25,000 . (2) Includes $5.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $16.1 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 234,382 | $ 212,426 | $ 450,720 | $ 397,448 |
Realized gain (loss) on derivatives | 1,165 | (2,488) | 4,435 | (6,746) |
Unrealized gain (loss) on derivatives | 6,157 | 1,429 | (39,562) | 11,845 |
Total revenue | 241,704 | 211,367 | 415,593 | 402,547 |
Oil revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 189,085 | 166,271 | 343,288 | 314,430 |
Natural gas revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 21,975 | 42,748 | 61,041 | 76,543 |
Third-party midstream services revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 14,359 | 3,407 | 26,197 | 6,475 |
Sales of purchased natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 8,963 | 0 | 20,194 | 0 |
Total revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 234,382 | $ 212,426 | $ 450,720 | $ 397,448 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | $ 78,845 | $ 78,845 | ||
Operating lease liability | 83,882 | $ 83,882 | ||
Discount rate, present value of future revenue | 10.00% | |||
Impairment charges | $ 0 | |||
Capitalized general and administrative costs | 8,400 | 6,800 | $ 16,800 | $ 14,100 |
Interest costs capitalized | $ 2,600 | $ 2,600 | $ 4,200 | $ 4,500 |
Restricted Stock | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Antidilutive securities (in shares) | 2.8 | 2.8 | ||
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | $ 62,300 | $ 62,300 | ||
Operating lease liability | $ 62,300 | $ 62,300 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Weighted average common shares outstanding for basic earnings (loss) per share | 116,571 | 112,706 | 116,469 | 110,809 |
Dilutive effect of options and restricted stock units | 332 | 350 | 370 | 471 |
Diluted weighted average common shares outstanding | 116,903 | 113,056 | 116,839 | 111,280 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Incremental borrowing rate | 3.73% |
Other assets | $ 78,845 |
Total lease obligations | $ 83,882 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating leases | $ 3,660 | $ 6,742 |
Short-term leases | 4,528 | 8,369 |
Financing leases | ||
Depreciation of assets | 231 | 440 |
Interest on lease liabilities | 33 | 64 |
Total financing leases | 264 | 504 |
Total lease expense | 8,452 | 15,615 |
Lease operating | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases | 2,965 | 5,207 |
Short-term leases | 3,392 | 5,601 |
Plant and other midstream services | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases | 30 | 61 |
Short-term leases | 1,131 | 2,751 |
General and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Operating leases | 665 | 1,474 |
Short-term leases | 5 | 17 |
Drilling Rig Leases | ||
Financing leases | ||
Gross payments | 8,200 | 13,500 |
Drilling Rig Leases And Other Equipment Rentals | ||
Financing leases | ||
Gross payments | $ 10,700 | $ 37,200 |
Leases - Balance Sheet Informat
Leases - Balance Sheet Information (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating leases | |
Other assets | $ 78,845 |
Other current liabilities | (40,870) |
Other long-term liabilities | (43,012) |
Total operating lease liabilities | (83,882) |
Financing leases | |
Other property and equipment, at cost | 2,846 |
Accumulated depreciation | (865) |
Net property and equipment | 1,981 |
Other current liabilities | (1,108) |
Other long-term liabilities | (1,146) |
Total financing lease liabilities | $ (2,254) |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash paid related to lease liabilities | ||
Operating cash payments for operating leases | $ 6,790 | |
Investing cash payments for operating leases | 13,509 | |
Financing cash payments for financing leases | 490 | $ 0 |
Right of use assets obtained in exchange for lease obligations entered into during the period | ||
Operating leases | 28,884 | |
Financing leases | $ 471 |
Leases - Lease Terms (Details)
Leases - Lease Terms (Details) | Jun. 30, 2019 |
Weighted-Average Remaining Lease Term | |
Operating leases | 3 years |
Financing leases | 2 years 7 months 6 days |
Leases - Lease Payment Maturity
Leases - Lease Payment Maturity Schedule (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
2019 | $ 22,075 |
2020 | 32,051 |
2021 | 19,981 |
2022 | 3,989 |
2023 | 3,234 |
Thereafter | 7,679 |
Total lease payments | 89,009 |
Less imputed interest | (5,127) |
Total lease obligations | 83,882 |
Less current obligations | (40,870) |
Long-term lease obligations | 43,012 |
Financing Leases | |
2019 | 493 |
2020 | 747 |
2021 | 581 |
2022 | 504 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 2,325 |
Less imputed interest | (71) |
Total lease obligations | 2,254 |
Less current obligations | (1,108) |
Long-term lease obligations | $ 1,146 |
Leases - Disclosure Under Topic
Leases - Disclosure Under Topic 840 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases | |
2019 | $ 39,457 |
2020 | 12,009 |
2021 | 3,513 |
2022 | 3,209 |
2023 | 3,234 |
Thereafter | 7,680 |
Total lease payments | 69,102 |
Less imputed interest | (4,300) |
Total lease obligations | 64,802 |
Less current obligations | (39,457) |
Long-term lease obligations | 25,345 |
Financing Leases | |
2019 | 1,240 |
2020 | 913 |
2021 | 534 |
2022 | 455 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 3,142 |
Less imputed interest | (130) |
Total lease obligations | 3,012 |
Less current obligations | (1,240) |
Long-term lease obligations | $ 1,772 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Changes in the Company's asset retirement obligations | ||||||
Beginning asset retirement obligations | $ 31,086 | |||||
Liabilities incurred during period | 1,427 | |||||
Liabilities settled during period | (154) | |||||
Divestitures during period | (951) | |||||
Accretion expense | $ 420 | $ 375 | 834 | $ 739 | ||
Ending asset retirement obligations | 32,242 | 32,242 | ||||
Less: current asset retirement obligations | [1] | (1,556) | (1,556) | |||
Long-term asset retirement obligations | $ 30,686 | $ 30,686 | $ 29,736 | |||
[1] | Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2019 . |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Jul. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Revolving Credit Agreement [Line Items] | |||
Line of credit facility | $ 205,000 | $ 40,000 | |
Borrowings under San Mateo Credit Facility | 240,000 | $ 220,000 | |
Senior Notes | Senior Notes Due 2026 | |||
Revolving Credit Agreement [Line Items] | |||
Long-term debt outstanding | 1,050,000 | ||
Letter of Credit | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 13,600 | ||
Line of Credit | San Mateo Credit Facility | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 16,200 | ||
Borrowings under San Mateo Credit Facility | $ 240,000 | ||
Subsequent Event | |||
Revolving Credit Agreement [Line Items] | |||
Line of credit facility | $ 205,000 | ||
Subsequent Event | Senior Notes | Senior Notes Due 2026 | |||
Revolving Credit Agreement [Line Items] | |||
Long-term debt outstanding | 1,050,000 | ||
Subsequent Event | Letter of Credit | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 13,600 | ||
Subsequent Event | Line of Credit | San Mateo Credit Facility | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 16,200 | ||
Borrowings under San Mateo Credit Facility | $ 240,000 |
Debt Credit Agreement (Details)
Debt Credit Agreement (Details) - USD ($) | Jun. 30, 2019 | Apr. 30, 2019 | Dec. 19, 2018 |
Revolving Credit Facility | Third Amended Credit Agreement | |||
Debt Instrument [Line Items] | |||
Increase in borrowing base | $ 900,000,000 | ||
Maximum borrowing commitment | $ 500,000,000 | ||
Maximum facility amount | 1,500,000,000 | ||
Line of Credit | San Mateo Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing commitment | $ 325,000,000 | $ 250,000,000 | |
Line of credit, accordian feature | $ 400,000,000 |
Debt Senior Unsecured Notes (De
Debt Senior Unsecured Notes (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Oct. 04, 2018 | Aug. 21, 2018 |
Debt Instrument [Line Items] | ||||
Debt issued | $ 1,038,625,000 | $ 1,037,837,000 | ||
Senior Notes | 2026 Notes Offering | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 750,000,000 | |||
Interest rate | 5.875% | |||
Senior Notes | Additional 2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Debt issued | $ 300,000,000 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 26.00% | 37.00% |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | Feb. 25, 2019 | Feb. 15, 2017 | Apr. 30, 2019 | Feb. 28, 2019 | Feb. 26, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted in period (in shares) | 428,006 | |||||||||
Fair value | $ 9.2 | $ 16.8 | ||||||||
Ownership percentage | 100.00% | 100.00% | ||||||||
Restricted Stock | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted in period (in shares) | 428,006 | |||||||||
Performance-Based Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period of shares | 3 years | |||||||||
Service-Based Restricted Stock Units To Be Settled In Cash | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares granted in period (in shares) | 259,038 | |||||||||
Service-Based Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Options granted in period (in shares) | 205,361 | |||||||||
Vesting period of shares | 3 years | 3 years | ||||||||
Corporate Joint Venture | San Mateo | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Deferred performance incentives | $ 44.1 | $ 73.5 | ||||||||
Deferred performance incentives term | 3 years | 5 years | ||||||||
Performance incentives earned | $ 14.7 | $ 14.7 | ||||||||
Corporate Joint Venture | San Mateo II | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Due to related party | $ 125 | |||||||||
Capital expenditures incurred | 150 | |||||||||
Deferred performance incentives | $ 150 | |||||||||
Deferred performance incentives term | 5 years | |||||||||
Five Point | San Mateo II | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Ownership percentage | 49.00% | |||||||||
Matador Resources Company | San Mateo II | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Ownership percentage | 51.00% | |||||||||
San Mateo II | Five Point | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Contributions to related party | $ 7.5 | $ 11.5 | ||||||||
San Mateo II | Matador Resources Company | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Contributions to related party | $ 1.5 | $ 1.5 | ||||||||
Minimum | Performance-Based Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 0.00% | |||||||||
Maximum | Performance-Based Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 200.00% | |||||||||
Property Contribution | San Mateo II | Matador Resources Company | Corporate Joint Venture | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Contributions to related party | $ 1 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) $ in Thousands | Jun. 30, 2019USD ($)bblMMBTU$ / bbl$ / MMBTU | Dec. 31, 2018USD ($) |
Derivative [Line Items] | ||
Derivative Asset (Liability), Net | $ | $ 10,284 | $ 49,846 |
Open costless collar contracts | ||
Summary of contracts for oil and natural gas | ||
Fair Value of Asset (Liability) | $ | 8,181 | |
Open Swap Collar Contracts | ||
Summary of contracts for oil and natural gas | ||
Fair Value of Asset (Liability) | $ | $ (1,254) | |
Derivative Contract, Calculation Period One | Open costless collar contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 3,900,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 50.26 | |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 70.94 | |
Fair Value of Asset (Liability) | $ | $ 3,354 | |
Derivative Contract, Calculation Period One | Open costless collar contracts | Natural Gas | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | MMBTU | 1,200,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | $ / MMBTU | 2.50 | |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | $ / MMBTU | 3.80 | |
Fair Value of Asset (Liability) | $ | $ 272 | |
Derivative Contract, Calculation Period One | Open Three-way Costless Collar Contracts | ||
Summary of contracts for oil and natural gas | ||
Fair Value of Asset (Liability) | $ | $ 3,357 | |
Derivative Contract, Calculation Period One | Open Three-way Costless Collar Contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 660,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 60 | |
Fair Value of Asset (Liability) | $ | $ 2,829 | |
Derivative Contract, Calculation Period One | Open Three-way Costless Collar Contracts | Natural Gas | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 2,400,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 2.50 | |
Fair Value of Asset (Liability) | $ | $ 528 | |
Derivative Contract, Calculation Period One | Open Swap Collar Contracts | Oil Basis Swaps | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 1,377,000 | |
Derivative, Swap Type, Average Fixed Price | 0.33 | |
Fair Value of Asset (Liability) | $ | $ (39) | |
Derivative Contract, Calculation Period One | Short Call | Open Three-way Costless Collar Contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 75 | |
Derivative Contract, Calculation Period One | Short Call | Open Three-way Costless Collar Contracts | Natural Gas | ||
Summary of contracts for oil and natural gas | ||
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 3 | |
Derivative Contract, Calculation Period One | Long Call | Open Three-way Costless Collar Contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 78.85 | |
Derivative Contract, Calculation Period One | Long Call | Open Three-way Costless Collar Contracts | Natural Gas | ||
Summary of contracts for oil and natural gas | ||
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 3.24 | |
Derivative Contract, Calculation Period Two | Open costless collar contracts | Oil - WTI | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 2,640,000 | |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 48.50 | |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 69.50 | |
Fair Value of Asset (Liability) | $ | $ 4,555 | |
Derivative Contract, Calculation Period Two | Open Swap Collar Contracts | Oil Basis Swaps | ||
Summary of contracts for oil and natural gas | ||
Notional Quantity (Bbl or MMBtu) | bbl | 4,494,000 | |
Derivative, Swap Type, Average Fixed Price | 0.42 | |
Fair Value of Asset (Liability) | $ | $ (1,215) |
Derivative Financial Instrume_4
Derivative Financial Instruments Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative liability | $ (10,284) | $ (49,846) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Summary of gross liability balances of derivative instruments | ||
Total | $ 10,284 | $ 49,846 |
Gross amounts netted in the condensed consolidated balance sheets | 0 | 0 |
Net amounts presented in the condensed consolidated balance sheets | 10,284 | 49,846 |
Current assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 12,671 | 53,136 |
Gross amounts netted in the condensed consolidated balance sheets | (4,400) | (3,207) |
Oil, natural gas and natural gas liquids (NGL) derivatives | 8,271 | 49,929 |
Other assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 4,710 | |
Gross amounts netted in the condensed consolidated balance sheets | (2,508) | |
Oil, natural gas and natural gas liquids (NGL) derivatives | 2,202 | |
Current liabilities | ||
Summary of gross liability balances of derivative instruments | ||
Gross amounts of recognized liabilities | (4,400) | (3,207) |
Gross amounts netted in the condensed consolidated balance sheet | 4,400 | 3,207 |
Oil, natural gas and natural gas liquids (NGL) derivatives | 0 | 0 |
Other liabilities | ||
Summary of gross liability balances of derivative instruments | ||
Gross amounts of recognized liabilities | (2,697) | (83) |
Gross amounts netted in the condensed consolidated balance sheet | 2,508 | 0 |
Oil, natural gas and natural gas liquids (NGL) derivatives | $ (189) | $ (83) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | $ 1,165 | $ (2,488) | $ 4,435 | $ (6,746) |
Unrealized gain (loss) on derivatives | 6,157 | 1,429 | (39,562) | 11,845 |
Total | 7,322 | (1,059) | (35,127) | 5,099 |
Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | 1,165 | (2,488) | 4,435 | (6,746) |
Unrealized gain (loss) on derivatives | 6,157 | 1,429 | (39,562) | 11,845 |
Oil | Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | 1,165 | (2,488) | 4,531 | (6,797) |
Unrealized gain (loss) on derivatives | 5,365 | 1,829 | (40,078) | 12,956 |
Natural Gas | Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain (loss) on derivatives | 0 | 0 | (96) | 51 |
Unrealized gain (loss) on derivatives | $ 792 | $ (400) | $ 516 | $ (1,111) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets (Liabilities) | ||
Total | $ 10,284 | $ 49,846 |
Fair value on a recurring basis | ||
Assets (Liabilities) | ||
Derivative Asset | 800 | 284 |
Derivative Liability | 9,484 | 49,562 |
Total | 10,284 | 49,846 |
Fair value on a recurring basis | Level 1 | ||
Assets (Liabilities) | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Total | 0 | 0 |
Fair value on a recurring basis | Level 2 | ||
Assets (Liabilities) | ||
Derivative Asset | 800 | 284 |
Derivative Liability | 9,484 | 49,562 |
Total | 10,284 | 49,846 |
Fair value on a recurring basis | Level 3 | ||
Assets (Liabilities) | ||
Derivative Asset | 0 | 0 |
Derivative Liability | 0 | 0 |
Total | $ 0 | $ 0 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Senior Notes Due 2023 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 1,070 | $ 970 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Feb. 25, 2019 | Feb. 17, 2017 | May 31, 2018 | Apr. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Delivery Of Natural Gas And Oil Production To Third Parties | ||||||||
Long-term Purchase Commitment [Line Items] | ||||||||
Volume requirement commitment | $ 163.4 | $ 163.4 | ||||||
Payment for volume requirement agreement | 6.1 | $ 5.1 | 12.9 | $ 9.1 | ||||
Corporate Joint Venture | San Mateo Midstream | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Contractual obligation | 183.8 | $ 183.8 | ||||||
Contract agreement term | 15 years | |||||||
Rustler Breaks and Wolf Asset Area | Corporate Joint Venture | San Mateo Midstream | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Term of contractual obligation | 15 years | |||||||
Rustler Breaks Asset Area | Corporate Joint Venture | San Mateo Midstream | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Term of contractual obligation | 15 years | |||||||
Natural Gas Transportation and Fractionation Agreement | Eddy County | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Agreement term | 7 years | |||||||
Contractual obligation | 132.3 | $ 132.3 | ||||||
16-Year Fixed Fee Natural Gas Transportation Agreement | Eddy County | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Agreement term | 16 years | |||||||
Contractual obligation | 56.8 | 56.8 | ||||||
2019 10-Year Fixed Fee Natural Gas Transportation Agreement | Eddy County | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Agreement term | 10 years | |||||||
Contractual obligation | 202.3 | 202.3 | ||||||
Operational Agreements | San Mateo Midstream | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Contractual obligation | $ 363.8 | |||||||
Engineering, Procurement, Construction And Installation Of Processing Plant | San Mateo Midstream | ||||||||
Commitments and Contingencies (Textual) [Abstract] | ||||||||
Contractual obligation | 80.1 | 80.1 | ||||||
Payments made under agreement | 8.3 | |||||||
Remaining obligation | $ 71.8 | $ 71.8 |
Supplemental Disclosures (Detai
Supplemental Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | $ 191,608 | $ 170,855 |
Accrued evaluated and unproved and unevaluated property costs | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 100,014 | 86,318 |
Accrued midstream property costs | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 21,840 | 16,808 |
Accrued lease operating expenses | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 20,812 | 12,705 |
Accrued interest on debt | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 18,599 | 22,448 |
Accrued asset retirement obligations | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 1,556 | 1,350 |
Accrued partners’ share of joint interest charges | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 17,165 | 17,037 |
Other | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | $ 11,622 | $ 14,189 |
Supplemental Disclosures (Det_2
Supplemental Disclosures (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash paid for interest expense, net of amounts capitalized | $ 37,632 | $ 14,286 |
Increase (decrease) in liabilities for oil and natural gas properties capital expenditures | 13,536 | (26,389) |
Increase (decrease) in liabilities for midstream properties capital expenditures | 5,854 | (2,371) |
Transfer of inventory from oil and natural gas properties | 370 | 343 |
Transfer of inventory to midstream properties | 0 | (2,390) |
Increase (Decrease) in Liabilities for Accrued Cost to Issue Equity | 0 | 73 |
Mineral Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase (decrease) in asset retirement obligations | 321 | 834 |
Midstream Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase (decrease) in asset retirement obligations | $ 283 | $ 296 |
Supplemental Disclosures Supple
Supplemental Disclosures Supplemental Disclosures - Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash | $ 59,950 | $ 64,545 | $ 122,450 | |
Restricted cash | 24,812 | 19,439 | 21,063 | |
Total cash and restricted cash | $ 84,762 | $ 83,984 | $ 143,513 | $ 102,482 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 234,382 | $ 212,426 | $ 450,720 | $ 397,448 | |
Number of segments | segment | 2 | ||||
Realized gain (loss) on derivatives | 1,165 | (2,488) | $ 4,435 | (6,746) | |
Unrealized gain (loss) on derivatives | 6,157 | 1,429 | (39,562) | 11,845 | |
Expenses | 164,915 | 137,374 | 331,264 | 255,192 | |
Operating (loss) income | 76,789 | 73,993 | 84,329 | 147,355 | |
Total assets | 3,751,451 | 2,555,847 | 3,751,451 | 2,555,847 | $ 3,455,518 |
Capital expenditures | 209,639 | 232,977 | 437,488 | 468,665 | |
Depletion, depreciation and amortization | 80,132 | 66,838 | 156,999 | 122,207 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Expenses | 17,783 | 18,475 | 34,734 | 35,684 | |
Operating (loss) income | (17,783) | (18,475) | (34,734) | (35,684) | |
Total assets | 87,800 | 143,332 | 87,800 | 143,332 | |
Capital expenditures | 1,400 | 732 | 2,206 | 1,258 | |
Depletion, depreciation and amortization | 600 | 25,000 | 1,200 | 600 | |
Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Expenses | (17,807) | (16,489) | (36,223) | (29,233) | |
Operating (loss) income | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain (loss) on derivatives | 1,165 | (2,488) | 4,435 | (6,746) | |
Unrealized gain (loss) on derivatives | 6,157 | 1,429 | (39,562) | 11,845 | |
Expenses | 141,514 | 126,025 | 283,493 | 232,180 | |
Operating (loss) income | 75,371 | 80,145 | 82,606 | 160,408 | |
Total assets | 3,155,577 | 2,058,447 | 3,155,577 | 2,058,447 | |
Capital expenditures | 166,532 | 199,345 | 364,143 | 388,790 | |
Depletion, depreciation and amortization | 75,700 | 64,500 | 148,300 | 117,800 | |
Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Unrealized gain (loss) on derivatives | 0 | 0 | 0 | 0 | |
Expenses | 23,425 | 9,363 | 49,260 | 16,561 | |
Operating (loss) income | 19,201 | 12,323 | 36,457 | 22,631 | |
Total assets | 508,074 | 354,068 | 508,074 | 354,068 | |
Capital expenditures | 41,707 | 32,900 | 71,139 | 78,617 | |
Depletion, depreciation and amortization | 3,800 | 2,300 | 7,500 | 3,900 | |
Net income attributable to non-controlling interest in subsidiaries | (5,800) | ||||
Capital expenditures attributable to non-controlling interest | 24,200 | 16,100 | 37,900 | ||
Capital expenditures attributable to land and seismic acquisition expenditures | 8,200 | 31,300 | 38,500 | ||
Operating Income (Loss) | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net income attributable to non-controlling interest in subsidiaries | (8,300) | (15,800) | (10,900) | ||
Oil and natural gas revenues | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 211,060 | 209,019 | 404,329 | 390,973 | |
Oil and natural gas revenues | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Oil and natural gas revenues | Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Oil and natural gas revenues | Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 209,563 | 207,229 | 401,226 | 387,489 | |
Oil and natural gas revenues | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,497 | 1,790 | 3,103 | 3,484 | |
Third-party midstream services revenues | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 14,359 | 3,407 | 26,197 | 6,475 | |
Third-party midstream services revenues | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Third-party midstream services revenues | Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (17,807) | (16,489) | (36,223) | (29,233) | |
Third-party midstream services revenues | Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Third-party midstream services revenues | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 32,166 | 19,896 | 62,420 | 35,708 | |
Sales of purchased natural gas | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 8,963 | $ 0 | 20,194 | $ 0 | |
Sales of purchased natural gas | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | |||
Sales of purchased natural gas | Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | |||
Sales of purchased natural gas | Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | |||
Sales of purchased natural gas | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 8,963 | $ 20,194 |
Subsidiary Guarantors Consolida
Subsidiary Guarantors Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100.00% | ||
Intercompany receivable | $ 0 | $ 0 | |
Current assets | 273,384 | 305,685 | |
Net property and equipment | 3,383,343 | 3,122,864 | |
Investment in subsidiaries | 0 | 0 | |
Long-term assets | 94,724 | 26,969 | |
Total assets | 3,751,451 | 3,455,518 | $ 2,555,847 |
Intercompany payable | 0 | 0 | |
Current liabilities | 336,775 | 330,022 | |
Senior unsecured notes payable | 1,038,625 | 1,037,837 | |
Other long-term liabilities | 535,448 | 308,002 | |
Total equity attributable to Matador Resources Company | 1,736,477 | 1,688,880 | |
Non-controlling interest in subsidiaries | 104,126 | 90,777 | |
Total liabilities and equity | 3,751,451 | 3,455,518 | |
Eliminating Entries | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | (1,595,363) | (1,274,221) | |
Current assets | 0 | 0 | |
Net property and equipment | 0 | 0 | |
Investment in subsidiaries | (1,320,283) | (1,585,747) | |
Long-term assets | (9,569) | (9,502) | |
Total assets | (2,925,215) | (2,869,470) | |
Intercompany payable | (1,595,363) | (1,274,221) | |
Current liabilities | (802) | (724) | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | (8,767) | (8,778) | |
Total equity attributable to Matador Resources Company | (1,320,283) | (1,585,747) | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | (2,925,215) | (2,869,470) | |
Matador | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 1,582,828 | 1,244,405 | |
Current assets | 3,967 | 4,109 | |
Net property and equipment | 0 | 0 | |
Investment in subsidiaries | 1,211,056 | 1,490,401 | |
Long-term assets | 10,589 | 23,897 | |
Total assets | 2,808,440 | 2,762,812 | |
Intercompany payable | 0 | 0 | |
Current liabilities | 18,493 | 22,874 | |
Senior unsecured notes payable | 1,038,625 | 1,037,837 | |
Other long-term liabilities | 14,845 | 13,221 | |
Total equity attributable to Matador Resources Company | 1,736,477 | 1,688,880 | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | 2,808,440 | 2,762,812 | |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 12,535 | 29,816 | |
Current assets | 44,100 | 34,027 | |
Net property and equipment | 438,681 | 379,052 | |
Investment in subsidiaries | 0 | 0 | |
Long-term assets | 1,700 | 1,479 | |
Total assets | 497,016 | 444,374 | |
Intercompany payable | 0 | 0 | |
Current liabilities | 33,080 | 27,988 | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | 250,583 | 230,263 | |
Total equity attributable to Matador Resources Company | 109,227 | 95,346 | |
Non-controlling interest in subsidiaries | 104,126 | 90,777 | |
Total liabilities and equity | 497,016 | 444,374 | |
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 0 | 0 | |
Current assets | 225,317 | 267,549 | |
Net property and equipment | 2,944,662 | 2,743,812 | |
Investment in subsidiaries | 109,227 | 95,346 | |
Long-term assets | 92,004 | 11,095 | |
Total assets | 3,371,210 | 3,117,802 | |
Intercompany payable | 1,595,363 | 1,274,221 | |
Current liabilities | 286,004 | 279,884 | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | 278,787 | 73,296 | |
Total equity attributable to Matador Resources Company | 1,211,056 | 1,490,401 | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | $ 3,371,210 | $ 3,117,802 |
Subsidiary Guarantors Consoli_2
Subsidiary Guarantors Consolidated Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | $ 241,704 | $ 211,367 | $ 415,593 | $ 402,547 |
Total expenses | 164,915 | 137,374 | 331,264 | 255,192 |
Operating (loss) income | 76,789 | 73,993 | 84,329 | 147,355 |
Interest expense | (18,068) | (8,004) | (35,997) | (16,495) |
Other (expense) income | (423) | (352) | (299) | |
Earnings in subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 57,930 | 65,637 | 47,432 | 130,561 |
Total income tax provision | 12,858 | 0 | 11,845 | 0 |
Net income attributable to non-controlling interest in subsidiaries | (8,320) | (5,831) | (15,782) | (10,861) |
Net income attributable to Matador Resources Company shareholders | 36,752 | 59,806 | 19,805 | 119,700 |
Inventory impairment | (368) | 0 | (368) | 0 |
Gain (Loss) On Extinguishment Of Debt, Premium On Debt Redemption | (532) | |||
Eliminating Entries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | (16,901) | (16,208) | (35,136) | (28,702) |
Total expenses | (16,901) | (16,208) | (35,136) | (28,702) |
Operating (loss) income | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other (expense) income | 0 | 0 | 0 | |
Earnings in subsidiaries | (75,058) | (75,058) | (81,687) | (149,907) |
Income before income taxes | (75,058) | (75,058) | (81,687) | (149,907) |
Total income tax provision | 0 | 0 | ||
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Matador Resources Company shareholders | (75,058) | (75,058) | (81,687) | (149,907) |
Inventory impairment | 0 | 0 | ||
Gain (Loss) On Extinguishment Of Debt, Premium On Debt Redemption | 0 | |||
Matador | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Total expenses | 901 | 1,178 | 1,936 | 2,412 |
Operating (loss) income | (901) | (1,178) | (1,936) | (2,412) |
Interest expense | (15,888) | (8,004) | (31,675) | (16,495) |
Other (expense) income | 0 | 0 | 6 | |
Earnings in subsidiaries | 66,399 | 68,988 | 65,261 | 138,601 |
Income before income taxes | 49,610 | 59,806 | 31,650 | 119,700 |
Total income tax provision | 12,858 | 11,845 | ||
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Matador Resources Company shareholders | 36,752 | 59,806 | 19,805 | 119,700 |
Inventory impairment | 0 | 0 | ||
Gain (Loss) On Extinguishment Of Debt, Premium On Debt Redemption | 0 | |||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 41,720 | 21,356 | 84,596 | 38,550 |
Total expenses | 22,564 | 9,466 | 48,069 | 16,394 |
Operating (loss) income | 19,156 | 11,890 | 36,527 | 22,156 |
Interest expense | (2,180) | 0 | (4,322) | 0 |
Other (expense) income | 3 | 11 | 11 | |
Earnings in subsidiaries | 0 | 0 | 0 | 0 |
Income before income taxes | 16,979 | 11,901 | 32,208 | 22,167 |
Total income tax provision | 0 | 0 | ||
Net income attributable to non-controlling interest in subsidiaries | (8,320) | (5,831) | (15,782) | (10,861) |
Net income attributable to Matador Resources Company shareholders | 8,659 | 6,070 | 16,426 | 11,306 |
Inventory impairment | 0 | 0 | ||
Gain (Loss) On Extinguishment Of Debt, Premium On Debt Redemption | 3 | |||
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 216,885 | 206,219 | 366,133 | 392,699 |
Total expenses | 158,351 | 142,938 | 316,395 | 265,088 |
Operating (loss) income | 58,534 | 63,281 | 49,738 | 127,611 |
Interest expense | 0 | 0 | 0 | 0 |
Other (expense) income | (426) | (363) | (316) | |
Earnings in subsidiaries | 8,659 | 6,070 | 16,426 | 11,306 |
Income before income taxes | 66,399 | 68,988 | 65,261 | 138,601 |
Total income tax provision | 0 | 0 | ||
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net income attributable to Matador Resources Company shareholders | 66,399 | $ 68,988 | 65,261 | $ 138,601 |
Inventory impairment | $ (368) | (368) | ||
Gain (Loss) On Extinguishment Of Debt, Premium On Debt Redemption | $ (535) |
Subsidiary Guarantors Consoli_3
Subsidiary Guarantors Consolidated Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | $ 194,497 | $ 254,208 |
Net cash used in investing activities | (394,694) | (493,562) |
Net cash provided by financing activities | 200,975 | 280,385 |
Increase in cash and restricted cash | 778 | 41,031 |
Cash and restricted cash at beginning of period | 83,984 | 102,482 |
Cash and restricted cash at end of period | 84,762 | 143,513 |
Eliminating Entries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 0 | 0 |
Net cash used in investing activities | (8,190) | 40,035 |
Net cash provided by financing activities | 8,190 | (40,035) |
Increase in cash and restricted cash | 0 | 0 |
Cash and restricted cash at beginning of period | 0 | 0 |
Cash and restricted cash at end of period | 0 | 0 |
Matador | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | (109) | (224,441) |
Net cash used in investing activities | 0 | 0 |
Net cash provided by financing activities | 0 | 226,539 |
Increase in cash and restricted cash | (109) | 2,098 |
Cash and restricted cash at beginning of period | 456 | 286 |
Cash and restricted cash at end of period | 347 | 2,384 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 51,266 | 10,225 |
Net cash used in investing activities | (59,309) | (79,119) |
Net cash provided by financing activities | 13,584 | 83,400 |
Increase in cash and restricted cash | 5,541 | 14,506 |
Cash and restricted cash at beginning of period | 18,841 | 5,663 |
Cash and restricted cash at end of period | 24,382 | 20,169 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash (used in) provided by operating activities | 143,340 | 468,424 |
Net cash used in investing activities | (327,195) | (454,478) |
Net cash provided by financing activities | 179,201 | 10,481 |
Increase in cash and restricted cash | (4,654) | 24,427 |
Cash and restricted cash at beginning of period | 64,687 | 96,533 |
Cash and restricted cash at end of period | $ 60,033 | $ 120,960 |