Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 28, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
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 $0.01 per share | |
Trading Symbol | MTDR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 116,840,409 | |
Entity Central Index Key | 0001520006 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - Unaudited - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash | $ 20,573 | $ 40,024 |
Restricted cash | 22,935 | 25,104 |
Accounts receivable | ||
Oil and natural gas revenues | 57,854 | 95,228 |
Joint interest billings | 64,037 | 67,546 |
Other | 21,623 | 26,639 |
Derivative instruments | 13,304 | 0 |
Lease and well equipment inventory | 11,940 | 10,744 |
Prepaid expenses and other current assets | 15,017 | 13,207 |
Total current assets | 227,283 | 278,492 |
Oil and natural gas properties, full-cost method | ||
Evaluated | 5,041,026 | 4,557,265 |
Unproved and unevaluated | 983,391 | 1,126,992 |
Midstream properties | 773,314 | 643,903 |
Other property and equipment | 28,233 | 27,021 |
Less accumulated depletion, depreciation and amortization | (3,163,037) | (2,655,586) |
Net property and equipment | 3,662,927 | 3,699,595 |
Other assets | ||
Derivative instruments | 6,634 | 0 |
Deferred income taxes | 35,694 | 0 |
Other long-term assets | 68,595 | 91,589 |
Total assets | 4,001,133 | 4,069,676 |
Current liabilities | ||
Accounts payable | 15,747 | 25,230 |
Accrued liabilities | 189,115 | 200,695 |
Royalties payable | 60,995 | 85,193 |
Amounts due to affiliates | 862 | 19,606 |
Derivative instruments | 14,073 | 1,897 |
Advances from joint interest owners | 19,931 | 14,837 |
Amounts due to joint ventures | 0 | 486 |
Other current liabilities | 44,046 | 51,828 |
Total current liabilities | 344,769 | 399,772 |
Long-term liabilities | ||
Borrowings under Credit Agreement | 385,000 | 255,000 |
Borrowings under San Mateo Credit Facility | 320,000 | 288,000 |
Senior unsecured notes payable | 1,040,207 | 1,039,416 |
Asset retirement obligations | 37,997 | 35,592 |
Derivative instruments | 5,984 | 1,984 |
Deferred income taxes | 11,090 | 37,329 |
Other long-term liabilities | 37,585 | 43,131 |
Total long-term liabilities | 1,837,863 | 1,700,452 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock - $0.01 par value, 160,000,000 shares authorized; 116,983,790 and 116,644,246 shares issued; and 116,843,587 and 116,642,899 shares outstanding, respectively | 1,170 | 1,166 |
Additional paid-in capital | 2,020,298 | 1,981,014 |
Accumulated deficit | (376,187) | (148,500) |
Treasury stock, at cost, 140,203 and 1,347 shares, respectively | (1,449) | (26) |
Total Matador Resources Company shareholders’ equity | 1,643,832 | 1,833,654 |
Non-controlling interest in subsidiaries | 174,669 | 135,798 |
Total shareholders’ equity | 1,818,501 | 1,969,452 |
Total liabilities and shareholders’ equity | $ 4,001,133 | $ 4,069,676 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - Unaudited - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 116,983,790 | 116,644,246 |
Common stock, shares outstanding (in shares) | 116,843,587 | 116,642,899 |
Treasury stock (in shares) | 140,203 | 1,347 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Revenues | $ 147,416 | $ 234,382 | $ 371,704 | $ 450,720 |
Lease bonus - mineral acreage | 4,062 | 0 | 4,062 | 0 |
Realized gain on derivatives | 44,110 | 1,165 | 54,977 | 4,435 |
Unrealized (loss) gain on derivatives | (132,668) | 6,157 | 3,762 | (39,562) |
Total revenues | 62,920 | 241,704 | 434,505 | 415,593 |
Expenses | ||||
Production taxes, transportation and processing | 18,797 | 21,542 | 40,513 | 41,207 |
Lease operating | 26,162 | 26,351 | 57,072 | 57,514 |
Purchased natural gas | 10,922 | 8,172 | 18,980 | 18,806 |
Depletion, depreciation and amortization | 93,350 | 80,132 | 184,057 | 156,999 |
Accretion of asset retirement obligations | 495 | 420 | 971 | 834 |
Full-cost ceiling impairment | 324,001 | 0 | 324,001 | 0 |
General and administrative | 14,723 | 19,876 | 30,945 | 38,166 |
Total expenses | 498,230 | 164,915 | 676,283 | 331,264 |
Operating (loss) income | (435,310) | 76,789 | (241,778) | 84,329 |
Net loss on asset sales and impairment | (2,632) | (368) | (2,632) | (368) |
Other income (expense) | ||||
Interest expense | (18,297) | (18,068) | (38,109) | (35,997) |
Other income (expense) | 473 | (423) | 1,793 | (532) |
Total other expense | (20,456) | (18,859) | (38,948) | (36,897) |
(Loss) income before income taxes | (455,766) | 57,930 | (280,726) | 47,432 |
Income tax (benefit) provision | ||||
Deferred | (109,823) | 12,858 | (69,866) | 11,845 |
Total income tax (benefit) provision | (109,823) | 12,858 | (69,866) | 11,845 |
Net (loss) income | (345,943) | 45,072 | (210,860) | 35,587 |
Net income attributable to non-controlling interest in subsidiaries | (7,473) | (8,320) | (16,827) | (15,782) |
Net (loss) income attributable to Matador Resources Company shareholders | $ (353,416) | $ 36,752 | $ (227,687) | $ 19,805 |
(Loss) earnings per common share | ||||
Basic (in dollars per share) | $ (3.04) | $ 0.32 | $ (1.96) | $ 0.17 |
Diluted (in dollars per share) | $ (3.04) | $ 0.31 | $ (1.96) | $ 0.17 |
Weighted average common shares outstanding | ||||
Basic (shares) | 116,071 | 116,571 | 115,977 | 116,469 |
Diluted (shares) | 116,071 | 116,903 | 115,977 | 116,839 |
Oil and natural gas revenues | ||||
Revenues | ||||
Revenues | $ 118,767 | $ 211,060 | $ 316,681 | $ 404,329 |
Third-party midstream services revenues | ||||
Revenues | ||||
Revenues | 14,668 | 14,359 | 30,498 | 26,197 |
Expenses | ||||
Plant and other midstream services operating | 9,780 | 8,422 | 19,744 | 17,738 |
Sales of purchased natural gas | ||||
Revenues | ||||
Revenues | $ 13,981 | $ 8,963 | $ 24,525 | $ 20,194 |
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 I | San Mateo IAdditional paid-in capital | San Mateo ITotal 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 |
Beginning Balance, shares at Dec. 31, 2018 | 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, net of tax | 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 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 | 116,375,000 | 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 income | 35,587 | |||||||||||||
Ending Balance, shares at Jun. 30, 2019 | 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, net of tax | 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 income | 45,072 | 36,752 | 36,752 | 8,320 | ||||||||||
Ending Balance, shares at Jun. 30, 2019 | 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 Dec. 31, 2019 | 116,642,899 | 116,644,000 | 1,000 | |||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,969,452 | $ 1,166 | 1,981,014 | (148,500) | $ (26) | 1,833,654 | 135,798 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 3,000 | |||||||||||||
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) | 2,000 | |||||||||||||
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 | 5,066 | 5,066 | 5,066 | |||||||||||
Stock options exercised, net of options forfeited in net share settlements (in shares) | 0 | |||||||||||||
Stock options exercised, net of options forfeited in net share settlements | (24) | $ 0 | (24) | (24) | ||||||||||
Liability-based stock option awards settled in equity (in shares) | 22,000 | |||||||||||||
Liability-based stock option awards settled in equity | 298 | $ 1 | 297 | 298 | ||||||||||
Restricted stock forfeited (in shares) | 106,000 | |||||||||||||
Restricted stock forfeited | (1,267) | $ (1,267) | (1,267) | |||||||||||
Contribution related to formation of property | $ 11,613 | $ 11,613 | $ 11,613 | |||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, net of tax | 45,674 | 16,280 | 16,280 | 29,394 | ||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (11,515) | (11,515) | ||||||||||||
Current period net income | 135,083 | 125,729 | 125,729 | 9,354 | ||||||||||
Ending Balance, shares at Mar. 31, 2020 | 116,671,000 | 107,000 | ||||||||||||
Ending balance at Mar. 31, 2020 | $ 2,154,380 | $ 1,167 | 2,014,246 | (22,771) | $ (1,293) | 1,991,349 | 163,031 | |||||||
Beginning Balance, shares at Dec. 31, 2019 | 116,642,899 | 116,644,000 | 1,000 | |||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,969,452 | $ 1,166 | 1,981,014 | (148,500) | $ (26) | 1,833,654 | 135,798 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Current period net income | $ (210,860) | |||||||||||||
Ending Balance, shares at Jun. 30, 2020 | 116,843,587 | 116,984,000 | 140,000 | |||||||||||
Ending balance at Jun. 30, 2020 | $ 1,818,501 | $ 1,170 | 2,020,298 | (376,187) | $ (1,449) | 1,643,832 | 174,669 | |||||||
Beginning Balance, shares at Mar. 31, 2020 | 116,671,000 | 107,000 | ||||||||||||
Beginning balance at Mar. 31, 2020 | 2,154,380 | $ 1,167 | 2,014,246 | (22,771) | $ (1,293) | 1,991,349 | 163,031 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Issuance of common stock pursuant to directors' and advisors' compensation plan (in shares) | 230,000 | |||||||||||||
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) | 83,000 | |||||||||||||
Issuance of common stock pursuant to directors’ and advisors’ compensation plan | $ 1 | (1) | ||||||||||||
Stock-based compensation expense related to equity-based awards including amounts capitalized | 4,103 | 4,103 | 4,103 | |||||||||||
Restricted stock forfeited (in shares) | 33,000 | |||||||||||||
Restricted stock forfeited | (156) | $ (156) | (156) | |||||||||||
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, net of tax | 16,652 | 1,952 | 1,952 | 14,700 | ||||||||||
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (10,535) | (10,535) | ||||||||||||
Current period net income | $ (345,943) | (353,416) | (353,416) | 7,473 | ||||||||||
Ending Balance, shares at Jun. 30, 2020 | 116,843,587 | 116,984,000 | 140,000 | |||||||||||
Ending balance at Jun. 30, 2020 | $ 1,818,501 | $ 1,170 | $ 2,020,298 | $ (376,187) | $ (1,449) | $ 1,643,832 | $ 174,669 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Shareholders' Equity - Unaudited (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Contribution related to formation of San Mateo, tax | $ 3.1 | $ 3.1 | |
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, tax | $ 0.5 | $ 4.3 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Cash Flows [Abstract] | ||
Net (loss) income | $ (210,860) | $ 35,587 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ||
Unrealized (gain) loss on derivatives | (3,762) | 39,562 |
Depletion, depreciation and amortization | 184,057 | 156,999 |
Accretion of asset retirement obligations | 971 | 834 |
Full-cost ceiling impairment | 324,001 | 0 |
Stock-based compensation expense | 7,080 | 9,076 |
Deferred income tax (benefit) provision | (69,866) | 11,845 |
Amortization of debt issuance cost | 1,399 | 1,189 |
Net loss on asset sales and impairment | 2,632 | 368 |
Changes in operating assets and liabilities | ||
Accounts receivable | 46,628 | (378) |
Lease and well equipment inventory | (868) | (3,456) |
Prepaid expenses and other current assets | (1,610) | (4,834) |
Other long-term assets | 1,806 | (415) |
Accounts payable, accrued liabilities and other current liabilities | (52,351) | (48,746) |
Royalties payable | (24,198) | 1,353 |
Advances from joint interest owners | 5,094 | (6,243) |
Other long-term liabilities | 232 | 1,756 |
Net cash provided by operating activities | 210,385 | 194,497 |
Investing activities | ||
Oil and natural gas properties capital expenditures | (335,098) | (349,915) |
Midstream capital expenditures | (123,338) | (64,106) |
Expenditures for other property and equipment | (1,381) | (2,206) |
Proceeds from sale of assets | 1,056 | 21,533 |
Net cash used in investing activities | (458,761) | (394,694) |
Financing activities | ||
Borrowings under Credit Agreement | 130,000 | 165,000 |
Borrowings under San Mateo Credit Facility | 32,000 | 20,000 |
Cost to amend Credit Agreement | (660) | (415) |
Proceeds from stock options exercised | 45 | 3,298 |
Contributions related to formation of San Mateo I | 14,700 | 14,700 |
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries | 67,172 | 19,831 |
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries | (22,050) | (17,640) |
Taxes paid related to net share settlement of stock-based compensation | (1,493) | (3,309) |
Other | 7,042 | (490) |
Net cash provided by financing activities | 226,756 | 200,975 |
(Decrease) increase in cash and restricted cash | (21,620) | 778 |
Cash and restricted cash at beginning of period | 65,128 | 83,984 |
Cash and restricted cash at end of period | $ 43,508 | $ 84,762 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONSMatador 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. 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, 2020 | |
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, 2019 filed with the SEC on March 2, 2020 (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, 2020. Amounts as of December 31, 2019 are derived from the Company’s audited consolidated financial statements included in the Annual Report. 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. 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, 2020 and 2019 (in thousands). Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenues from contracts with customers $ 147,416 $ 234,382 $ 371,704 $ 450,720 Lease bonus - mineral acreage 4,062 — 4,062 — Realized gain on derivatives 44,110 1,165 54,977 4,435 Unrealized (loss) gain on derivatives (132,668) 6,157 3,762 (39,562) Total revenues $ 62,920 $ 241,704 $ 434,505 $ 415,593 Three Months Ended Six Months Ended 2020 2019 2020 2019 Oil revenues $ 94,174 $ 189,085 $ 263,759 $ 343,288 Natural gas revenues 24,593 21,975 52,922 61,041 Third-party midstream services revenues 14,668 14,359 30,498 26,197 Sales of purchased natural gas 13,981 8,963 24,525 20,194 Total revenues from contracts with customers $ 147,416 $ 234,382 $ 371,704 $ 450,720 Property and Equipment The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated into a single cost center representing the Company’s activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, capitalized interest on qualifying projects and certain general and administrative expenses directly related to acquisition, exploration and development activities, but do not include any costs related to production, selling or general corporate administrative activities. The Company capitalized approximately $8.1 million and $8.4 million of its general and administrative costs and approximately $1.8 million and $2.6 million of its interest expense for the three months ended June 30, 2020 and 2019, respectively. The Company capitalized approximately $16.3 million and $16.8 million of its general and administrative costs and approximately $3.2 million and $4.2 million of its interest expense for the six months ended June 30, 2020 and 2019, respectively. The net capitalized costs of oil and natural gas properties are limited to the lower of amortized costs less related deferred income taxes or the cost center “ceiling.” The cost center ceiling is defined as the sum of: (a) the present value, discounted at 10%, of future net revenues of proved oil and natural gas reserves, reduced by the estimated costs of developing these reserves, plus (b) unproved and unevaluated property costs not being amortized, plus (c) the lower of cost or estimated fair value of unproved and unevaluated properties included in the costs being amortized, if any, less (d) income tax effects related to the properties involved. Any excess of the Company’s net capitalized costs above the cost center ceiling as described above is charged to operations as a full-cost ceiling impairment. The need for a full-cost ceiling impairment is required to be assessed on a quarterly basis. The fair value of the Company’s derivative instruments is not included in the ceiling test computation as the Company does not designate these instruments as hedge instruments for accounting purposes. The estimated present value of after-tax future net cash flows from proved oil and natural gas reserves is highly dependent upon the quantities of proved reserves, the estimation of which requires substantial judgment. The Company’s oil and natural gas reserves estimates are prepared by the Company’s engineering staff in accordance with guidelines established by the SEC. Under these guidelines, oil and natural gas reserves are estimated using then-current operating and economic conditions, with no provision for price and cost escalations in future periods except by contractual agreements. Future net revenues are calculated using prices that represent the arithmetic averages of first-day-of-the-month oil and natural gas prices for the previous 12-month period, and the guidelines further dictate that a 10% discount factor be used to determine the present value of future revenues. For the period from July 2019 to June 2020, the average oil and natural gas prices were $43.60 per barrel and $2.07 per MMBtu, respectively. In estimating the present value of after-tax future net cash flows from proved oil and natural gas reserves, the average oil and natural gas prices were adjusted by property for quality, energy content, transportation and marketing fees and regional price differentials. Using average commodity prices, as adjusted, to determine the Company’s estimated proved oil and natural gas reserves at June 30, 2020, the Company’s net capitalized costs less related deferred income taxes exceeded the full-cost ceiling by $243.9 million. As a result, the Company recorded an impairment charge of $324.0 million to its net capitalized costs and a deferred income tax benefit of $80.1 million at June 30, 2020. These charges are reflected in the Company’s interim unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2020. For the three and six months ended June 30, 2019, the Company’s net capitalized costs less related deferred income taxes did not exceed the full-cost ceiling. As a result, the Company recorded no impairment to its net capitalized costs for the three and six months ended June 30, 2019. 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, 2020 and 2019 (in thousands). Three Months Ended Six Months Ended 2020 2019 2020 2019 Weighted average common shares outstanding Basic 116,071 116,571 115,977 116,469 Dilutive effect of options and restricted stock units — 332 — 370 Diluted weighted average common shares outstanding 116,071 116,903 115,977 116,839 |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The following table summarizes the changes in the Company’s asset retirement obligations for the six months ended June 30, 2020 (in thousands). Beginning asset retirement obligations $ 36,211 Liabilities incurred during period 1,463 Liabilities settled during period (109) Accretion expense 971 Ending asset retirement obligations 38,536 Less: current asset retirement obligations (1) (539) Long-term asset retirement obligations $ 37,997 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2020. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT At June 30, 2020, the Company had $1.05 billion of outstanding senior notes due 2026 (the “Notes”), $385.0 million in borrowings outstanding under its reserves-based revolving credit facility (the “Credit Agreement”), approximately $45.1 million in outstanding letters of credit issued pursuant to the Credit Agreement and $7.5 million outstanding under an unsecured U.S. Small Business Administration (“SBA”) loan. At July 28, 2020, the Company had $1.05 billion of outstanding Notes, $404.0 million in borrowings outstanding under the Credit Agreement, approximately $45.1 million in outstanding letters of credit issued pursuant to the Credit Agreement and $7.5 million outstanding under an unsecured SBA loan. At June 30, 2020 and July 28, 2020, San Mateo I had $320.0 million in borrowings outstanding under its revolving credit facility (the “San Mateo Credit Facility”) and approximately $9.0 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 February 2020, the lenders completed their review of the Company’s proved oil and natural gas reserves at December 31, 2019, and, as a result, the borrowing base was affirmed at $900.0 million. The Company elected to increase the borrowing commitment from $500.0 million to $700.0 million, and the maximum facility amount remained $1.5 billion. This February 2020 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 (subject to compliance with the covenant noted below). The Credit Agreement matures October 31, 2023. The Credit Agreement requires the Company to maintain a debt to EBITDA ratio, which is defined as debt outstanding (net of up to $50.0 million of cash or cash equivalents), divided by a rolling four quarter EBITDA calculation, of 4.00 or less. The Company believes that it was in compliance with the terms of the Credit Agreement at June 30, 2020. San Mateo Midstream, LLC The San Mateo Credit Facility is non-recourse with respect to Matador and its wholly-owned subsidiaries, as well as San Mateo II and its subsidiaries, but is guaranteed by San Mateo I’s subsidiaries and secured by substantially all of San Mateo I’s assets, including real property. The San Mateo Credit Facility includes an accordion feature, which provides for potential increases to up to $400.0 million, and matures December 19, 2023. At June 30, 2020, the lender commitments under the San Mateo Credit Facility were $375.0 million (subject to San Mateo I’s compliance with the covenants noted below). The San Mateo Credit Facility requires San Mateo I to maintain a debt to EBITDA ratio, which is defined as total consolidated funded indebtedness outstanding (as defined in the San Mateo Credit Facility) divided by a rolling four quarter EBITDA calculation, of 5.00 or less, subject to certain exceptions. The San Mateo Credit Facility also requires San Mateo I to maintain an interest coverage ratio, which is defined as a rolling four quarter EBITDA calculation divided by San Mateo I’s consolidated interest expense, of 2.50 or more. The Company believes that San Mateo I was in compliance with the terms of the San Mateo Credit Facility at June 30, 2020. Senior Unsecured Notes At June 30, 2020, the Company had $1.05 billion of outstanding 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, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company’s effective tax rates for the three and six months ended June 30, 2020 were 24% and 23%, respectively. The Company’s effective tax rates for the three and six months ended June 30, 2019 were 26% and 37%, respectively. The Company’s total income tax provision for the three and six months ended June 30, 2020 and 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, as well as state taxes, primarily in New Mexico. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
EQUITY | EQUITY Stock-based Compensation During the six months ended June 30, 2020, the Company granted awards to certain of its employees of 868,710 service-based restricted stock units to be settled in cash, which are liability instruments, and 641,210 performance-based stock units and 227,500 shares of restricted stock, 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 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 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. As of June 30, 2020, the $150 million threshold for capital expenditures had been reached, and future capital expenditures are the responsibility of Matador and Five Point based on each company’s proportionate interest in San Mateo II. During the three months ended June 30, 2020, the Company contributed $15.4 million and Five Point contributed $17.2 million of cash, of which $2.5 million was paid to carry Matador’s proportionate interest in San Mateo II. During the six months ended June 30, 2020, the Company contributed $22.9 million and Five Point contributed $67.2 million of cash, of which $23.1 million was paid to carry Matador’s proportionate interest in San Mateo II. The portion of the amount contributed by Five Point to carry Matador’s proportionate interest was recorded in “Additional paid-in capital” in the Company’s interim unaudited condensed consolidated balance sheets for the three and six months ended June 30, 2020, net of the $0.5 million and $4.8 million, respectively, deferred tax impact to Matador related to this equity contribution. 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, respectively, in addition to the $1.0 million of property the Company contributed during the first quarter of 2019 related to the formation of San Mateo II. The Company also has the ability to earn up to $150.0 million in deferred performance incentives over the next several years , plus additional performance incentives for securing volumes from third-party customers. Performance Incentives In connection with the formation of San Mateo I in 2017, the Company has the ability to earn a total of $73.5 million in performance incentives to be paid by Five Point over a five |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS At June 30, 2020, the Company had various costless collar and swap contracts open and in place to mitigate its exposure to oil and natural gas price volatility, each with a specific term (calculation period), notional quantity (volume hedged) and price floor and ceiling for the collars and fixed price for the swaps. At June 30, 2020, each contract was set to expire at varying times during 2020, 2021 and 2022. The Company had no open contracts associated with natural gas liquids (“NGL”) prices at June 30, 2020. The following is a summary of the Company’s open costless collar contracts for oil and natural gas at June 30, 2020. Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or $/MMBtu) Weighted Average Price Ceiling ($/Bbl or $/MMBtu) Fair Value of Oil 07/01/2020 - 12/31/2020 1,758,000 $ 48.03 $ 66.05 $ 16,271 Oil 01/01/2021 - 12/31/2021 2,400,000 $ 35.00 $ 45.71 179 Natural Gas 11/01/2020 - 12/31/2020 5,200,000 $ 2.51 $ 3.82 1,354 Natural Gas 01/01/2021 - 03/31/2021 7,800,000 $ 2.51 $ 3.82 545 Total open costless collar contracts $ 18,349 The following is a summary of the Company’s open swap contracts for oil at June 30, 2020. Commodity Calculation Period Notional Quantity (Bbl) Fixed Price Fair Value of Oil 07/01/2020 - 12/31/2020 4,320,000 $ 35.00 $ (19,652) Oil 01/01/2021 - 12/31/2021 2,040,000 $ 35.26 (10,526) Total open swap contracts $ (30,178) The following is a summary of the Company’s open basis swap contracts for oil at June 30, 2020. Commodity Calculation Period Notional Quantity (Bbl) Fixed Price Fair Value of Oil Basis 07/01/2020 - 12/31/2020 4,896,000 $ 0.61 $ 2,318 Oil Basis 01/01/2021 - 12/31/2021 8,400,000 $ 0.87 5,414 Oil Basis 01/01/2022 - 12/31/2022 5,520,000 $ 0.95 3,978 Total open basis swap contracts $ 11,710 At June 30, 2020, the Company had an aggregate liability value for open derivative financial instruments of $0.1 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, 2020 and December 31, 2019 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed June 30, 2020 Current assets $ 331,474 $ (318,170) $ 13,304 Other assets 298,934 (292,300) 6,634 Current liabilities (332,243) 318,170 (14,073) Long-term liabilities (298,284) 292,300 (5,984) Total $ (119) $ — $ (119) December 31, 2019 Current assets $ 442,291 $ (442,291) $ — Other assets 280,397 (280,397) — Current liabilities (444,188) 442,291 (1,897) Long-term liabilities (282,381) 280,397 (1,984) Total $ (3,881) $ — $ (3,881) 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 2020 2019 2020 2019 Derivative Instrument Oil Revenues: Realized gain on derivatives $ 44,110 $ 1,165 $ 54,977 $ 4,531 Natural Gas Revenues: Realized loss on derivatives — — — (96) Realized gain on derivatives 44,110 1,165 54,977 4,435 Oil Revenues: Unrealized (loss) gain on derivatives (134,567) 5,365 1,863 (40,078) Natural Gas Revenues: Unrealized gain on derivatives 1,899 792 1,899 516 Unrealized (loss) gain on derivatives (132,668) 6,157 3,762 (39,562) Total $ (88,558) $ 7,322 $ 58,739 $ (35,127) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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, 2020 and December 31, 2019 (in thousands). Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ (2,018) $ — $ (2,018) Natural gas derivatives — 1,899 — 1,899 Total $ — $ (119) $ — $ (119) Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ (3,881) $ — $ (3,881) Total $ — $ (3,881) $ — $ (3,881) Additional disclosures related to derivative financial instruments are provided in Note 7. Other Fair Value Measurements At June 30, 2020 and December 31, 2019, the carrying values reported on the interim unaudited condensed consolidated balance sheets for accounts receivable, prepaid expenses and other current 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, 2020 and December 31, 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 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 $11.4 million and $6.1 million for deliveries under these agreements during the three months ended June 30, 2020 and 2019, respectively, and $22.4 million and $12.9 million for deliveries under these agreements during the six months ended June 30, 2020 and 2019, 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, 2020, the total deficiencies required to be paid by the Company under these agreements would be approximately $387.9 million, in addition to the commitments described below. Future Commitments In late 2017, the Company entered into a fixed-fee 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 for seven years following the completion of the counterparty’s pipeline extension and fractionation facility, which was completed on July 1, 2020. If the Company does not meet its NGL volume commitment in any quarter during the seven seven In October 2019, the Company entered into a 15-year, fixed-fee natural gas transportation agreement 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 agreement begins when the counterparty’s pipeline is placed in service, which is anticipated to be in the second half of 2020. Should the pipeline be placed in service, the Company would owe the fees to transport the committed volume whether or not the committed volume is transported through the counterparty’s pipeline, and the minimum contractual obligation would be approximately $106.9 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 remaining minimum contractual obligation under the Operational Agreements at June 30, 2020 was approximately $150.7 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 remaining minimum contractual obligation under the San Mateo II Operational Agreements at June 30, 2020 was approximately $360.2 million. 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 $81.0 million. San Mateo II paid approximately $12.6 million and $33.7 million under this agreement during the three and six months ended June 30, 2020, respectively. As of June 30, 2020, the remaining obligations of San Mateo II under this agreement were $7.2 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, 2020 | |
Supplemental Disclosures [Abstract] | |
SUPPLEMENTAL DISCLOSURES | SUPPLEMENTAL DISCLOSURES Accrued Liabilities The following table summarizes the Company’s current accrued liabilities at June 30, 2020 and December 31, 2019 (in thousands). June 30, December 31, Accrued evaluated and unproved and unevaluated property costs $ 77,015 $ 72,376 Accrued midstream properties costs 55,457 46,402 Accrued lease operating expenses 22,026 18,223 Accrued interest on debt 18,282 18,569 Accrued asset retirement obligations 539 619 Accrued partners’ share of joint interest charges 4,541 14,322 Accrued payable related to purchased natural gas 2,318 17,806 Other 8,937 12,378 Total accrued liabilities $ 189,115 $ 200,695 Supplemental Cash Flow Information The following table provides supplemental disclosures of cash flow information for the six months ended June 30, 2020 and 2019 (in thousands). Six Months Ended 2020 2019 Cash paid for interest expense, net of amounts capitalized $ 38,387 $ 37,632 Increase in asset retirement obligations related to mineral properties $ 1,393 $ 321 Increase in asset retirement obligations related to midstream properties $ 26 $ 283 Increase in liabilities for oil and natural gas properties capital expenditures $ 4,469 $ 13,536 Increase in liabilities for midstream properties capital expenditures $ 9,203 $ 5,854 Stock-based compensation expense recognized as liability $ 1,188 $ 1,010 Transfer of inventory (to) from oil and natural gas properties $ (335) $ 370 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 2020 2019 Cash $ 20,573 $ 59,950 Restricted cash 22,935 24,812 Total cash and restricted cash $ 43,508 $ 84,762 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 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. 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, Wolf and Stateline asset areas and the Greater Stebbins Area 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, 2020 Oil and natural gas revenues $ 118,258 $ 509 $ — $ — $ 118,767 Midstream services revenues — 36,234 — (21,566) 14,668 Sales of purchased natural gas 8,327 5,654 — — 13,981 Lease bonus - mineral acreage 4,062 — — — 4,062 Realized gain on derivatives 44,110 — — — 44,110 Unrealized loss on derivatives (132,668) — — — (132,668) Expenses (1) 483,812 23,575 12,409 (21,566) 498,230 Operating (loss) income (2) $ (441,723) $ 18,822 $ (12,409) $ — $ (435,310) Total assets $ 3,159,528 $ 765,034 $ 76,571 $ — $ 4,001,133 Capital expenditures (3) $ 130,709 $ 64,656 $ 594 $ — $ 195,959 _____________________ (1) Includes depletion, depreciation and amortization expenses of $87.8 million and $5.0 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $324.0 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million. (2) Includes $7.5 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $9.6 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $31.9 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 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 gain 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 Six Months Ended June 30, 2020 Oil and natural gas revenues $ 315,053 $ 1,628 $ — $ — $ 316,681 Midstream services revenues — 73,983 — (43,485) 30,498 Sales of purchased natural gas 11,922 12,603 — — 24,525 Lease bonus - mineral acreage 4,062 — — — 4,062 Realized gain on derivatives 54,977 — — — 54,977 Unrealized gain on derivatives 3,762 — — — 3,762 Expenses (1) 645,137 47,905 26,726 (43,485) 676,283 Operating income (loss) (2) $ (255,361) $ 40,309 $ (26,726) $ — $ (241,778) Total assets $ 3,159,528 $ 765,034 $ 76,571 $ — $ 4,001,133 Capital expenditures (3) $ 340,444 $ 132,729 $ 1,381 $ — $ 474,554 _____________________ (1) Includes depletion, depreciation and amortization expenses of $172.9 million and $9.8 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $324.0 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $1.4 million. (2) Includes $16.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $49.3 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $79.4 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. |
Subsidiary Guarantors
Subsidiary Guarantors | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
SUBSIDIARY GUARANTORS | 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, 2020, 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 $ 1,600,300 $ 15,508 $ — $ (1,615,808) $ — Current assets 6,917 34,186 186,180 — 227,283 Net property and equipment — 707,472 2,955,455 — 3,662,927 Investment in subsidiaries 1,070,647 — 185,216 (1,255,863) — Long-term assets 35,694 2,626 83,628 (11,025) 110,923 Total assets $ 2,713,558 $ 759,792 $ 3,410,479 $ (2,882,696) $ 4,001,133 LIABILITIES AND EQUITY Intercompany payable $ — $ — $ 1,615,808 $ (1,615,808) $ — Current liabilities 18,429 66,591 260,682 (933) 344,769 Senior unsecured notes payable 1,040,207 — — — 1,040,207 Other long-term liabilities 11,090 333,316 463,342 (10,092) 797,656 Total equity attributable to Matador Resources Company 1,643,832 185,216 1,070,647 (1,255,863) 1,643,832 Non-controlling interest in subsidiaries — 174,669 — — 174,669 Total liabilities and equity $ 2,713,558 $ 759,792 $ 3,410,479 $ (2,882,696) $ 4,001,133 Condensed Consolidating Balance Sheet Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated ASSETS Intercompany receivable $ 1,578,133 $ 29,217 $ — $ (1,607,350) $ — Current assets 29 37,933 240,530 — 278,492 Net property and equipment — 583,899 3,115,696 — 3,699,595 Investment in subsidiaries 1,332,237 — 144,697 (1,476,934) — Long-term assets — 3,072 99,049 (10,532) 91,589 Total assets $ 2,910,399 $ 654,121 $ 3,599,972 $ (3,094,816) $ 4,069,676 LIABILITIES AND EQUITY Intercompany payable $ — $ — $ 1,607,350 $ (1,607,350) $ — Current liabilities — 73,086 327,595 (909) 399,772 Senior unsecured notes payable 1,039,416 — — — 1,039,416 Other long-term liabilities 37,329 300,540 332,790 (9,623) 661,036 Total equity attributable to Matador Resources Company 1,833,654 144,697 1,332,237 (1,476,934) 1,833,654 Non-controlling interest in subsidiaries — 135,798 — — 135,798 Total liabilities and equity $ 2,910,399 $ 654,121 $ 3,599,972 $ (3,094,816) $ 4,069,676 Condensed Consolidating Statement of Operations Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Total revenues $ — $ 41,544 $ 42,089 $ (20,713) $ 62,920 Total expenses 1,224 23,190 494,529 (20,713) 498,230 Operating (loss) income (1,224) 18,354 (452,440) — (435,310) Net loss on asset sales and impairment — (1,261) (1,371) — (2,632) Interest expense (16,443) (1,854) — — (18,297) Other income — 13 460 — 473 (Loss) earnings in subsidiaries (445,572) — 7,779 437,793 — (Loss) income before income taxes (463,239) 15,252 (445,572) 437,793 (455,766) Total income tax benefit (109,823) — — — (109,823) Net income attributable to non-controlling interest in subsidiaries — (7,473) — — (7,473) Net (loss) income attributable to Matador Resources Company shareholders $ (353,416) $ 7,779 $ (445,572) $ 437,793 $ (353,416) 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 Net loss on asset sales and 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 $ — $ 86,863 $ 389,776 $ (42,134) $ 434,505 Total expenses 2,145 46,984 669,288 (42,134) 676,283 Operating (loss) income (2,145) 39,879 (279,512) — (241,778) Net loss on asset sales and impairment — (1,261) (1,371) — (2,632) Interest expense (33,818) (4,291) — — (38,109) Other income — 13 1,780 — 1,793 (Loss) earnings in subsidiaries (261,590) — 17,513 244,077 — (Loss) income before income taxes (297,553) 34,340 (261,590) 244,077 (280,726) Total income tax benefit (69,866) — — — (69,866) Net income attributable to non-controlling interest in subsidiaries — (16,827) — — (16,827) Net (loss) income attributable to Matador Resources Company shareholders $ (227,687) $ 17,513 $ (261,590) $ 244,077 $ (227,687) 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 Net loss on asset sales and 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 Cash Flows Matador Non-Guarantor Subsidiaries Guarantor Subsidiaries Eliminating Entries Consolidated Net cash provided by operating activities $ 3 $ 45,408 $ 164,974 $ — $ 210,385 Net cash used in investing activities — (124,180) (334,509) (72) (458,761) Net cash provided by financing activities — 77,050 149,634 72 226,756 Increase (decrease) in cash and restricted cash 3 (1,722) (19,901) — (21,620) Cash and restricted cash at beginning of period 29 24,656 40,443 — 65,128 Cash and restricted cash at end of period $ 32 $ 22,934 $ 20,542 $ — $ 43,508 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 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019 filed with the SEC on March 2, 2020 (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, 2020. Amounts as of December 31, 2019 are derived from the Company’s audited consolidated financial statements included in the Annual Report. 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. |
Property and Equipment | Property and EquipmentThe Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, all costs associated with the acquisition, exploration and development of oil and natural gas properties and reserves, including unproved and unevaluated property costs, are capitalized as incurred and accumulated into a single cost center representing the Company’s activities, which are undertaken exclusively in the United States. Such costs include lease acquisition costs, geological and geophysical expenditures, lease rentals on undeveloped properties, costs of drilling both productive and non-productive wells, capitalized interest on qualifying projects and certain general and administrative expenses directly related to acquisition, exploration and development activities, but do not include any costs related to production, selling or general corporate administrative activities. |
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, 2020 | |
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, 2020 and 2019 (in thousands). Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenues from contracts with customers $ 147,416 $ 234,382 $ 371,704 $ 450,720 Lease bonus - mineral acreage 4,062 — 4,062 — Realized gain on derivatives 44,110 1,165 54,977 4,435 Unrealized (loss) gain on derivatives (132,668) 6,157 3,762 (39,562) Total revenues $ 62,920 $ 241,704 $ 434,505 $ 415,593 Three Months Ended Six Months Ended 2020 2019 2020 2019 Oil revenues $ 94,174 $ 189,085 $ 263,759 $ 343,288 Natural gas revenues 24,593 21,975 52,922 61,041 Third-party midstream services revenues 14,668 14,359 30,498 26,197 Sales of purchased natural gas 13,981 8,963 24,525 20,194 Total revenues from contracts with customers $ 147,416 $ 234,382 $ 371,704 $ 450,720 |
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, 2020 and 2019 (in thousands). Three Months Ended Six Months Ended 2020 2019 2020 2019 Weighted average common shares outstanding Basic 116,071 116,571 115,977 116,469 Dilutive effect of options and restricted stock units — 332 — 370 Diluted weighted average common shares outstanding 116,071 116,903 115,977 116,839 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 (in thousands). Beginning asset retirement obligations $ 36,211 Liabilities incurred during period 1,463 Liabilities settled during period (109) Accretion expense 971 Ending asset retirement obligations 38,536 Less: current asset retirement obligations (1) (539) Long-term asset retirement obligations $ 37,997 _______________ (1) Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2020. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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, 2020. Commodity Calculation Period Notional Quantity (Bbl or MMBtu) Weighted Average Price Floor ($/Bbl or $/MMBtu) Weighted Average Price Ceiling ($/Bbl or $/MMBtu) Fair Value of Oil 07/01/2020 - 12/31/2020 1,758,000 $ 48.03 $ 66.05 $ 16,271 Oil 01/01/2021 - 12/31/2021 2,400,000 $ 35.00 $ 45.71 179 Natural Gas 11/01/2020 - 12/31/2020 5,200,000 $ 2.51 $ 3.82 1,354 Natural Gas 01/01/2021 - 03/31/2021 7,800,000 $ 2.51 $ 3.82 545 Total open costless collar contracts $ 18,349 The following is a summary of the Company’s open swap contracts for oil at June 30, 2020. Commodity Calculation Period Notional Quantity (Bbl) Fixed Price Fair Value of Oil 07/01/2020 - 12/31/2020 4,320,000 $ 35.00 $ (19,652) Oil 01/01/2021 - 12/31/2021 2,040,000 $ 35.26 (10,526) Total open swap contracts $ (30,178) The following is a summary of the Company’s open basis swap contracts for oil at June 30, 2020. Commodity Calculation Period Notional Quantity (Bbl) Fixed Price Fair Value of Oil Basis 07/01/2020 - 12/31/2020 4,896,000 $ 0.61 $ 2,318 Oil Basis 01/01/2021 - 12/31/2021 8,400,000 $ 0.87 5,414 Oil Basis 01/01/2022 - 12/31/2022 5,520,000 $ 0.95 3,978 Total open basis swap contracts $ 11,710 |
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, 2020 and December 31, 2019 (in thousands). Derivative Instruments Gross Gross amounts Net amounts presented in the condensed June 30, 2020 Current assets $ 331,474 $ (318,170) $ 13,304 Other assets 298,934 (292,300) 6,634 Current liabilities (332,243) 318,170 (14,073) Long-term liabilities (298,284) 292,300 (5,984) Total $ (119) $ — $ (119) December 31, 2019 Current assets $ 442,291 $ (442,291) $ — Other assets 280,397 (280,397) — Current liabilities (444,188) 442,291 (1,897) Long-term liabilities (282,381) 280,397 (1,984) Total $ (3,881) $ — $ (3,881) |
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 2020 2019 2020 2019 Derivative Instrument Oil Revenues: Realized gain on derivatives $ 44,110 $ 1,165 $ 54,977 $ 4,531 Natural Gas Revenues: Realized loss on derivatives — — — (96) Realized gain on derivatives 44,110 1,165 54,977 4,435 Oil Revenues: Unrealized (loss) gain on derivatives (134,567) 5,365 1,863 (40,078) Natural Gas Revenues: Unrealized gain on derivatives 1,899 792 1,899 516 Unrealized (loss) gain on derivatives (132,668) 6,157 3,762 (39,562) Total $ (88,558) $ 7,322 $ 58,739 $ (35,127) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 $ — $ (2,018) $ — $ (2,018) Natural gas derivatives — 1,899 — 1,899 Total $ — $ (119) $ — $ (119) Fair Value Measurements at Description Level 1 Level 2 Level 3 Total Assets (Liabilities) Oil derivatives and basis swaps $ — $ (3,881) $ — $ (3,881) Total $ — $ (3,881) $ — $ (3,881) |
Supplemental Disclosures (Table
Supplemental Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Supplemental Disclosures [Abstract] | |
Summary of current accrued liabilities | The following table summarizes the Company’s current accrued liabilities at June 30, 2020 and December 31, 2019 (in thousands). June 30, December 31, Accrued evaluated and unproved and unevaluated property costs $ 77,015 $ 72,376 Accrued midstream properties costs 55,457 46,402 Accrued lease operating expenses 22,026 18,223 Accrued interest on debt 18,282 18,569 Accrued asset retirement obligations 539 619 Accrued partners’ share of joint interest charges 4,541 14,322 Accrued payable related to purchased natural gas 2,318 17,806 Other 8,937 12,378 Total accrued liabilities $ 189,115 $ 200,695 |
Supplemental disclosures of cash flow information | The following table provides supplemental disclosures of cash flow information for the six months ended June 30, 2020 and 2019 (in thousands). Six Months Ended 2020 2019 Cash paid for interest expense, net of amounts capitalized $ 38,387 $ 37,632 Increase in asset retirement obligations related to mineral properties $ 1,393 $ 321 Increase in asset retirement obligations related to midstream properties $ 26 $ 283 Increase in liabilities for oil and natural gas properties capital expenditures $ 4,469 $ 13,536 Increase in liabilities for midstream properties capital expenditures $ 9,203 $ 5,854 Stock-based compensation expense recognized as liability $ 1,188 $ 1,010 Transfer of inventory (to) from oil and natural gas properties $ (335) $ 370 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 2020 2019 Cash $ 20,573 $ 59,950 Restricted cash 22,935 24,812 Total cash and restricted cash $ 43,508 $ 84,762 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 Oil and natural gas revenues $ 118,258 $ 509 $ — $ — $ 118,767 Midstream services revenues — 36,234 — (21,566) 14,668 Sales of purchased natural gas 8,327 5,654 — — 13,981 Lease bonus - mineral acreage 4,062 — — — 4,062 Realized gain on derivatives 44,110 — — — 44,110 Unrealized loss on derivatives (132,668) — — — (132,668) Expenses (1) 483,812 23,575 12,409 (21,566) 498,230 Operating (loss) income (2) $ (441,723) $ 18,822 $ (12,409) $ — $ (435,310) Total assets $ 3,159,528 $ 765,034 $ 76,571 $ — $ 4,001,133 Capital expenditures (3) $ 130,709 $ 64,656 $ 594 $ — $ 195,959 _____________________ (1) Includes depletion, depreciation and amortization expenses of $87.8 million and $5.0 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $324.0 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $0.7 million. (2) Includes $7.5 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $9.6 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $31.9 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 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 gain 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 Six Months Ended June 30, 2020 Oil and natural gas revenues $ 315,053 $ 1,628 $ — $ — $ 316,681 Midstream services revenues — 73,983 — (43,485) 30,498 Sales of purchased natural gas 11,922 12,603 — — 24,525 Lease bonus - mineral acreage 4,062 — — — 4,062 Realized gain on derivatives 54,977 — — — 54,977 Unrealized gain on derivatives 3,762 — — — 3,762 Expenses (1) 645,137 47,905 26,726 (43,485) 676,283 Operating income (loss) (2) $ (255,361) $ 40,309 $ (26,726) $ — $ (241,778) Total assets $ 3,159,528 $ 765,034 $ 76,571 $ — $ 4,001,133 Capital expenditures (3) $ 340,444 $ 132,729 $ 1,381 $ — $ 474,554 _____________________ (1) Includes depletion, depreciation and amortization expenses of $172.9 million and $9.8 million for the exploration and production and midstream segments, respectively. Includes full-cost ceiling impairment of $324.0 million for the exploration and production segment. Also includes corporate depletion, depreciation and amortization expenses of $1.4 million. (2) Includes $16.8 million in net income attributable to non-controlling interest in subsidiaries related to the midstream segment. (3) Includes $49.3 million attributable to land and seismic acquisition expenditures related to the exploration and production segment and $79.4 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 $37.9 million in capital expenditures attributable to non-controlling interest in subsidiaries related to the midstream segment. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 147,416 | $ 234,382 | $ 371,704 | $ 450,720 |
Lease bonus - mineral acreage | 4,062 | 0 | 4,062 | 0 |
Realized gain on derivatives | 44,110 | 1,165 | 54,977 | 4,435 |
Unrealized (loss) gain on derivatives | (132,668) | 6,157 | 3,762 | (39,562) |
Total revenue | 62,920 | 241,704 | 434,505 | 415,593 |
Oil revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 94,174 | 189,085 | 263,759 | 343,288 |
Natural gas revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 24,593 | 21,975 | 52,922 | 61,041 |
Third-party midstream services revenues | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 14,668 | 14,359 | 30,498 | 26,197 |
Sales of purchased natural gas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 13,981 | 8,963 | 24,525 | 20,194 |
Total revenues from contracts with customers | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 147,416 | $ 234,382 | $ 371,704 | $ 450,720 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Textual) shares in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2020$ / bbl | Jun. 30, 2020$ / MMBTU | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Capitalized general and administrative costs | $ 8,100,000 | $ 8,400,000 | $ 16,300,000 | $ 16,800,000 | ||
Interest costs capitalized | 1,800,000 | 2,600,000 | $ 3,200,000 | 4,200,000 | ||
Discount rate, present value of future revenue | 10.00% | |||||
Average oil and gas prices | 43.60 | 2.07 | ||||
Full-cost ceiling impairment | 0 | $ 243,900,000 | 0 | |||
Full-cost ceiling impairment | $ 324,001,000 | $ 0 | 324,001,000 | $ 0 | ||
Deferred income tax benefit related to impairment charge | $ 80,100,000 | |||||
Options | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Antidilutive securities (in shares) | shares | 2.5 | 2.8 | 2.6 | 2.8 | ||
Restricted Stock | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Antidilutive securities (in shares) | shares | 0.5 | 0.6 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accounting Policies [Abstract] | ||||
Weighted average common shares outstanding for basic earnings (loss) per share | 116,071 | 116,571 | 115,977 | 116,469 |
Dilutive effect of options and restricted stock units | 0 | 332 | 0 | 370 |
Diluted weighted average common shares outstanding | 116,071 | 116,903 | 115,977 | 116,839 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||
Changes in the Company's asset retirement obligations | ||||||
Beginning asset retirement obligations | $ 36,211 | |||||
Liabilities incurred during period | 1,463 | |||||
Liabilities settled during period | (109) | |||||
Accretion expense | $ 495 | $ 420 | 971 | $ 834 | ||
Ending asset retirement obligations | 38,536 | 38,536 | ||||
Less: current asset retirement obligations | [1] | (539) | (539) | |||
Long-term asset retirement obligations | $ 37,997 | $ 37,997 | $ 35,592 | |||
[1] | Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2020. |
Debt (Details)
Debt (Details) - USD ($) | Jul. 28, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Revolving Credit Agreement [Line Items] | |||
Line of credit facility | $ 385,000,000 | $ 255,000,000 | |
Unsecured SBA loan | 1,040,207,000 | 1,039,416,000 | |
Borrowings under San Mateo Credit Facility | 320,000,000 | $ 288,000,000 | |
Unsecured Debt | Senior Notes Due 2026 | |||
Revolving Credit Agreement [Line Items] | |||
Long-term debt outstanding | 1,050,000,000 | ||
Unsecured Debt | SBA Loan, CARES Act | |||
Revolving Credit Agreement [Line Items] | |||
Long-term debt outstanding | 7,500,000 | ||
Letter of Credit | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 45,100,000 | ||
Line of Credit | San Mateo Credit Facility | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 9,000,000 | ||
Borrowings under San Mateo Credit Facility | $ 320,000,000 | ||
Subsequent Event | |||
Revolving Credit Agreement [Line Items] | |||
Line of credit facility | $ 404,000,000 | ||
Subsequent Event | Unsecured Debt | Senior Notes Due 2026 | |||
Revolving Credit Agreement [Line Items] | |||
Long-term debt outstanding | 1,050,000,000 | ||
Subsequent Event | Unsecured Debt | SBA Loan, CARES Act | |||
Revolving Credit Agreement [Line Items] | |||
Unsecured SBA loan | 7,500,000 | ||
Subsequent Event | Letter of Credit | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 45,100,000 | ||
Subsequent Event | Line of Credit | San Mateo Credit Facility | |||
Revolving Credit Agreement [Line Items] | |||
Outstanding letters of credit | 9,000,000 | ||
Borrowings under San Mateo Credit Facility | $ 320,000,000 |
Debt Credit Agreement (Details)
Debt Credit Agreement (Details) | 1 Months Ended | 6 Months Ended | |
Feb. 29, 2020USD ($) | Jun. 30, 2020USD ($) | Dec. 19, 2018USD ($) | |
Debt Instrument [Line Items] | |||
Maximum borrowing commitment | $ 700,000,000 | ||
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 | ||
Cash and cash equivalent limit | $ 50,000,000 | ||
EBITDA ratio | 4 | ||
Line of Credit | San Mateo Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing commitment | $ 375,000,000 | ||
EBITDA ratio | 5 | ||
Consolidated interest expense minimum | 2.50 | ||
Line of credit, accordian feature | $ 400,000,000 |
Debt Senior Unsecured Notes (De
Debt Senior Unsecured Notes (Details) - Senior Notes $ in Millions | Jun. 30, 2020USD ($) |
Senior Notes Due 2026 | |
Debt Instrument [Line Items] | |
Long-term debt outstanding | $ 1,050 |
2026 Notes Offering | |
Debt Instrument [Line Items] | |
Interest rate | 5.875% |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 24.00% | 26.00% | 23.00% | 37.00% |
Equity (Details)
Equity (Details) - USD ($) $ in Thousands, $ / shares in Millions | Feb. 25, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Ownership percentage | 100.00% | 100.00% | |||||||
Additional paid-in capital | $ 2,020,298 | $ 2,020,298 | $ 1,981,014 | ||||||
Service-Based Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period (in shares) | 868,710 | ||||||||
Vesting period of shares | 3 years | ||||||||
Performance-Based Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period (in shares) | 641,210 | ||||||||
Vesting period of shares | 3 years | ||||||||
Service-based Restricted Stock Units And Performance-Based Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value | $ 7.7 | ||||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted in period (in shares) | 227,500 | ||||||||
Corporate Joint Venture | San Mateo | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Deferred performance incentives | $ 29,400 | $ 73,500 | |||||||
Deferred performance incentives term | 2 years | 5 years | |||||||
Equity contribution, tax impact | $ 3,100 | ||||||||
Performance incentives earned | 14,700 | $ 14,700 | $ 14,700 | ||||||
Corporate Joint Venture | San Mateo II | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Due to related party | $ 125,000 | ||||||||
Capital expenditures incurred | 150,000 | 150,000 | |||||||
Deferred performance incentives | $ 150,000 | ||||||||
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 | 17,200 | $ 7,500 | 67,200 | 11,500 | |||||
Equity contribution, tax impact | 500 | 4,800 | |||||||
San Mateo II | Five Point | Corporate Joint Venture | Additional paid-in capital | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contributions to related party | 2,500 | 23,100 | |||||||
San Mateo II | Matador Resources Company | Corporate Joint Venture | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Contributions to related party | $ 15,400 | $ 1,500 | $ 22,900 | $ 1,500 | |||||
Minimum | Performance-Based Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting amount, percentage | 0.00% | ||||||||
Maximum | Performance-Based Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting amount, percentage | 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 | $ 1,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) | Jun. 30, 2020USD ($)bbl$ / bbl |
Open costless collar contracts | |
Summary of contracts for oil and natural gas | |
Fair Value of Asset (Liability) | $ | $ 18,349,000 |
Open Swap Contracts | |
Summary of contracts for oil and natural gas | |
Fair Value of Asset (Liability) | $ | (30,178,000) |
Open Basis Swap Contracts | |
Summary of contracts for oil and natural gas | |
Fair Value of Asset (Liability) | $ | $ 11,710,000 |
Derivative Contract, Calculation Period One | Open costless collar contracts | Oil | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 1,758,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 48.03 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 66.05 |
Fair Value of Asset (Liability) | $ | $ 16,271,000 |
Derivative Contract, Calculation Period One | Open Swap Contracts | Oil | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 4,320,000 |
Fair Value of Asset (Liability) | $ | $ (19,652,000) |
Derivative, Swap Type, Average Fixed Price | 35 |
Derivative Contract, Calculation Period One | Open Basis Swap Contracts | Oil Basis | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 4,896,000 |
Fair Value of Asset (Liability) | $ | $ 2,318,000 |
Derivative, Swap Type, Average Fixed Price | 0.61 |
Derivative Contract, Calculation Period Two | Open costless collar contracts | Natural Gas | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 5,200,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 2.51 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 3.82 |
Fair Value of Asset (Liability) | $ | $ 1,354,000 |
Derivative Contract, Calculation Period Three | Open costless collar contracts | Natural Gas | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 7,800,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 2.51 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 3.82 |
Fair Value of Asset (Liability) | $ | $ 545,000 |
Derivative Contract, Calculation Period Four | Open costless collar contracts | Oil | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 2,400,000 |
Weighted Average Price Floor ($/Bbl or $/MMBtu) | 35 |
Weighted Average Price Ceiling ($/Bbl or $/MMBtu) | 45.71 |
Fair Value of Asset (Liability) | $ | $ 179,000 |
Derivative Contract, Calculation Period Four | Open Swap Contracts | Oil | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 2,040,000 |
Fair Value of Asset (Liability) | $ | $ (10,526,000) |
Derivative, Swap Type, Average Fixed Price | 35.26 |
Derivative Contract, Calculation Period Four | Open Basis Swap Contracts | Oil Basis | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 8,400,000 |
Fair Value of Asset (Liability) | $ | $ 5,414,000 |
Derivative, Swap Type, Average Fixed Price | 0.87 |
Derivative Contract, Calculation Period Five | Open Basis Swap Contracts | Oil Basis | |
Summary of contracts for oil and natural gas | |
Notional Quantity (Bbl or MMBtu) | bbl | 5,520,000 |
Fair Value of Asset (Liability) | $ | $ 3,978,000 |
Derivative, Swap Type, Average Fixed Price | 0.95 |
Derivative Financial Instrume_4
Derivative Financial Instruments Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative liability | $ 119 | $ 3,881 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Summary of gross liability balances of derivative instruments | ||
Total | $ (119) | $ (3,881) |
Gross amounts netted in the condensed consolidated balance sheets | 0 | 0 |
Net amounts presented in the condensed consolidated balance sheets | (119) | (3,881) |
Current assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 331,474 | 442,291 |
Gross amounts netted in the condensed consolidated balance sheets | (318,170) | (442,291) |
Oil, natural gas and natural gas liquids (NGL) derivatives | 13,304 | 0 |
Other assets | ||
Derivative [Line Items] | ||
Gross amounts of recognized assets | 298,934 | 280,397 |
Gross amounts netted in the condensed consolidated balance sheets | (292,300) | (280,397) |
Oil, natural gas and natural gas liquids (NGL) derivatives | 6,634 | 0 |
Current liabilities | ||
Summary of gross liability balances of derivative instruments | ||
Gross amounts of recognized liabilities | (332,243) | (444,188) |
Gross amounts netted in the condensed consolidated balance sheet | 318,170 | 442,291 |
Oil, natural gas and natural gas liquids (NGL) derivatives | (14,073) | (1,897) |
Other liabilities | ||
Summary of gross liability balances of derivative instruments | ||
Gross amounts of recognized liabilities | (298,284) | (282,381) |
Gross amounts netted in the condensed consolidated balance sheet | 292,300 | 280,397 |
Oil, natural gas and natural gas liquids (NGL) derivatives | $ (5,984) | $ (1,984) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain on derivatives | $ 44,110 | $ 1,165 | $ 54,977 | $ 4,435 |
Unrealized (loss) gain on derivatives | (132,668) | 6,157 | 3,762 | (39,562) |
Total | (88,558) | 7,322 | 58,739 | (35,127) |
Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain on derivatives | 44,110 | 1,165 | 54,977 | 4,435 |
Unrealized (loss) gain on derivatives | (132,668) | 6,157 | 3,762 | (39,562) |
Oil | Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain on derivatives | 44,110 | 1,165 | 54,977 | 4,531 |
Unrealized (loss) gain on derivatives | (134,567) | 5,365 | 1,863 | (40,078) |
Natural Gas | Revenues | ||||
Summary of location and aggregate fair value of all derivative financial instruments recorded in the consolidated statements of operations | ||||
Realized gain on derivatives | 0 | 0 | 0 | (96) |
Unrealized (loss) gain on derivatives | $ 1,899 | $ 792 | $ 1,899 | $ 516 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets (Liabilities) | ||
Total | $ (119) | $ (3,881) |
Fair value on a recurring basis | ||
Assets (Liabilities) | ||
Derivative Liability | (2,018) | (3,881) |
Derivative Asset | 1,899 | |
Total | (119) | (3,881) |
Fair value on a recurring basis | Level 1 | ||
Assets (Liabilities) | ||
Derivative Liability | 0 | 0 |
Derivative Asset | 0 | |
Total | 0 | 0 |
Fair value on a recurring basis | Level 2 | ||
Assets (Liabilities) | ||
Derivative Liability | (2,018) | (3,881) |
Derivative Asset | 1,899 | |
Total | (119) | (3,881) |
Fair value on a recurring basis | Level 3 | ||
Assets (Liabilities) | ||
Derivative Liability | 0 | 0 |
Derivative Asset | 0 | |
Total | $ 0 | $ 0 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Senior Notes Due 2023 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 781.6 | $ 1,060 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Feb. 25, 2019 | Feb. 17, 2017 | Oct. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Delivery Of Natural Gas And Oil Production To Third Parties | |||||||
Long-term Purchase Commitment [Line Items] | |||||||
Volume requirement commitment | $ 387.9 | $ 387.9 | |||||
Payment for volume requirement agreement | 11.4 | $ 6.1 | 22.4 | $ 12.9 | |||
Corporate Joint Venture | San Mateo Midstream | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Contractual obligation | 150.7 | $ 150.7 | |||||
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 | 130.6 | $ 130.6 | |||||
2019 15-Year Fixed Fee Natural Gas Transportation Agreement | Eddy County | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Agreement term | 15 years | ||||||
Contractual obligation | $ 106.9 | ||||||
Operational Agreements | San Mateo Midstream | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Contractual obligation | 360.2 | 360.2 | |||||
Engineering, Procurement, Construction And Installation Of Processing Plant | San Mateo Midstream | |||||||
Commitments and Contingencies (Textual) [Abstract] | |||||||
Contractual obligation | 81 | 81 | |||||
Payments made under agreement | 12.6 | 33.7 | |||||
Remaining obligation | $ 7.2 | $ 7.2 |
Supplemental Disclosures (Detai
Supplemental Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | $ 189,115 | $ 200,695 |
Accrued evaluated and unproved and unevaluated property costs | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 77,015 | 72,376 |
Accrued midstream properties costs | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 55,457 | 46,402 |
Accrued lease operating expenses | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 22,026 | 18,223 |
Accrued interest on debt | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 18,282 | 18,569 |
Accrued asset retirement obligations | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 539 | 619 |
Accrued partners’ share of joint interest charges | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 4,541 | 14,322 |
Accrued payable related to purchased natural gas | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | 2,318 | 17,806 |
Other | ||
Supplemental Disclosures [Line Items] | ||
Total accrued liabilities | $ 8,937 | $ 12,378 |
Supplemental Disclosures (Det_2
Supplemental Disclosures (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Cash paid for interest expense, net of amounts capitalized | $ 38,387 | $ 37,632 |
Increase in liabilities for oil and natural gas properties capital expenditures | 4,469 | 13,536 |
Increase in liabilities for midstream properties capital expenditures | 9,203 | 5,854 |
Stock-based compensation expense recognized as liability | 1,188 | 1,010 |
Transfer of inventory (to) from oil and natural gas properties | (335) | 370 |
Mineral Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase (decrease) in asset retirement obligations | 1,393 | 321 |
Midstream Properties | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Increase (decrease) in asset retirement obligations | $ 26 | $ 283 |
Supplemental Disclosures Supple
Supplemental Disclosures Supplemental Disclosures - Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Supplemental Cash Flow Elements [Abstract] | ||||
Cash | $ 20,573 | $ 40,024 | $ 59,950 | |
Restricted cash | 22,935 | 25,104 | 24,812 | |
Total cash and restricted cash | $ 43,508 | $ 65,128 | $ 84,762 | $ 83,984 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 147,416 | $ 234,382 | $ 371,704 | $ 450,720 | |
Number of segments | segment | 2 | ||||
Realized gain on derivatives | 44,110 | 1,165 | $ 54,977 | 4,435 | |
Unrealized (loss) gain on derivatives | (132,668) | 6,157 | 3,762 | (39,562) | |
Expenses | 498,230 | 164,915 | 676,283 | 331,264 | |
Operating (loss) income | (435,310) | 76,789 | (241,778) | 84,329 | |
Total assets | 4,001,133 | 3,751,451 | 4,001,133 | 3,751,451 | $ 4,069,676 |
Capital expenditures | 195,959 | 209,639 | 474,554 | 437,488 | |
Depletion, depreciation and amortization | 93,350 | 80,132 | 184,057 | 156,999 | |
Full-cost ceiling impairment | 324,001 | 0 | 324,001 | 0 | |
Lease bonus - mineral acreage | 4,062 | 0 | 4,062 | 0 | |
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain on derivatives | 0 | 0 | 0 | 0 | |
Unrealized (loss) gain on derivatives | 0 | 0 | 0 | 0 | |
Expenses | 12,409 | 17,783 | 26,726 | 34,734 | |
Operating (loss) income | (12,409) | (17,783) | (26,726) | (34,734) | |
Total assets | 76,571 | 87,800 | 76,571 | 87,800 | |
Capital expenditures | 594 | 1,400 | 1,381 | 2,206 | |
Depletion, depreciation and amortization | 700 | 600 | 1,400 | 1,200 | |
Lease bonus - mineral acreage | 0 | 0 | |||
Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain on derivatives | 0 | 0 | 0 | 0 | |
Unrealized (loss) gain on derivatives | 0 | 0 | 0 | 0 | |
Expenses | (21,566) | (17,807) | (43,485) | (36,223) | |
Operating (loss) income | 0 | 0 | 0 | 0 | |
Total assets | 0 | 0 | 0 | 0 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Lease bonus - mineral acreage | 0 | 0 | |||
Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain on derivatives | 44,110 | 1,165 | 54,977 | 4,435 | |
Unrealized (loss) gain on derivatives | (132,668) | 6,157 | 3,762 | (39,562) | |
Expenses | 483,812 | 141,514 | 645,137 | 283,493 | |
Operating (loss) income | (441,723) | 75,371 | (255,361) | 82,606 | |
Total assets | 3,159,528 | 3,155,577 | 3,159,528 | 3,155,577 | |
Capital expenditures | 130,709 | 166,532 | 340,444 | 364,143 | |
Depletion, depreciation and amortization | 87,800 | 75,700 | 172,900 | 148,300 | |
Capital expenditures attributable to land and seismic acquisition expenditures | 9,600 | 8,200 | 49,300 | 31,300 | |
Full-cost ceiling impairment | 324,000 | ||||
Lease bonus - mineral acreage | 4,062 | 4,062 | |||
Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Realized gain on derivatives | 0 | 0 | 0 | 0 | |
Unrealized (loss) gain on derivatives | 0 | 0 | 0 | 0 | |
Expenses | 23,575 | 23,425 | 47,905 | 49,260 | |
Operating (loss) income | 18,822 | 19,201 | 40,309 | 36,457 | |
Total assets | 765,034 | 508,074 | 765,034 | 508,074 | |
Capital expenditures | 64,656 | 41,707 | 132,729 | 71,139 | |
Depletion, depreciation and amortization | 5,000 | 3,800 | 9,800 | 7,500 | |
Net income attributable to non-controlling interest in subsidiaries | (8,300) | (16,800) | (15,800) | ||
Capital expenditures attributable to non-controlling interest | 31,900 | 24,200 | 79,400 | 37,900 | |
Lease bonus - mineral acreage | 0 | 0 | |||
Operating Income (Loss) | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net income attributable to non-controlling interest in subsidiaries | (7,500) | ||||
Oil and natural gas revenues | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 118,767 | 211,060 | 316,681 | 404,329 | |
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 | 118,258 | 209,563 | 315,053 | 401,226 | |
Oil and natural gas revenues | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 509 | 1,497 | 1,628 | 3,103 | |
Third-party midstream services revenues | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 14,668 | 14,359 | 30,498 | 26,197 | |
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 | (21,566) | (17,807) | (43,485) | (36,223) | |
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 | 36,234 | 32,166 | 73,983 | 62,420 | |
Sales of purchased natural gas | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 13,981 | 8,963 | 24,525 | 20,194 | |
Sales of purchased natural gas | Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Sales of purchased natural gas | Consolidations and Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Sales of purchased natural gas | Exploration and Production | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 8,327 | 0 | 11,922 | 0 | |
Sales of purchased natural gas | Midstream | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 5,654 | $ 8,963 | $ 12,603 | $ 20,194 |
Subsidiary Guarantors Consolida
Subsidiary Guarantors Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Ownership percentage | 100.00% | ||
Intercompany receivable | $ 0 | $ 0 | |
Current assets | 227,283 | 278,492 | |
Net property and equipment | 3,662,927 | 3,699,595 | |
Investment in subsidiaries | 0 | 0 | |
Long-term assets | 110,923 | 91,589 | |
Total assets | 4,001,133 | 4,069,676 | $ 3,751,451 |
Intercompany payable | 0 | 0 | |
Current liabilities | 344,769 | 399,772 | |
Senior unsecured notes payable | 1,040,207 | 1,039,416 | |
Other long-term liabilities | 797,656 | 661,036 | |
Total equity attributable to Matador Resources Company | 1,643,832 | 1,833,654 | |
Non-controlling interest in subsidiaries | 174,669 | 135,798 | |
Total liabilities and equity | 4,001,133 | 4,069,676 | |
Eliminating Entries | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | (1,615,808) | (1,607,350) | |
Current assets | 0 | 0 | |
Net property and equipment | 0 | 0 | |
Investment in subsidiaries | (1,255,863) | (1,476,934) | |
Long-term assets | (11,025) | (10,532) | |
Total assets | (2,882,696) | (3,094,816) | |
Intercompany payable | (1,615,808) | (1,607,350) | |
Current liabilities | (933) | (909) | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | (10,092) | (9,623) | |
Total equity attributable to Matador Resources Company | (1,255,863) | (1,476,934) | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | (2,882,696) | (3,094,816) | |
Matador | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 1,600,300 | 1,578,133 | |
Current assets | 6,917 | 29 | |
Net property and equipment | 0 | 0 | |
Investment in subsidiaries | 1,070,647 | 1,332,237 | |
Long-term assets | 35,694 | 0 | |
Total assets | 2,713,558 | 2,910,399 | |
Intercompany payable | 0 | 0 | |
Current liabilities | 18,429 | 0 | |
Senior unsecured notes payable | 1,040,207 | 1,039,416 | |
Other long-term liabilities | 11,090 | 37,329 | |
Total equity attributable to Matador Resources Company | 1,643,832 | 1,833,654 | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | 2,713,558 | 2,910,399 | |
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 15,508 | 29,217 | |
Current assets | 34,186 | 37,933 | |
Net property and equipment | 707,472 | 583,899 | |
Investment in subsidiaries | 0 | 0 | |
Long-term assets | 2,626 | 3,072 | |
Total assets | 759,792 | 654,121 | |
Intercompany payable | 0 | 0 | |
Current liabilities | 66,591 | 73,086 | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | 333,316 | 300,540 | |
Total equity attributable to Matador Resources Company | 185,216 | 144,697 | |
Non-controlling interest in subsidiaries | 174,669 | 135,798 | |
Total liabilities and equity | 759,792 | 654,121 | |
Guarantor Subsidiaries | Reportable Legal Entities | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Intercompany receivable | 0 | 0 | |
Current assets | 186,180 | 240,530 | |
Net property and equipment | 2,955,455 | 3,115,696 | |
Investment in subsidiaries | 185,216 | 144,697 | |
Long-term assets | 83,628 | 99,049 | |
Total assets | 3,410,479 | 3,599,972 | |
Intercompany payable | 1,615,808 | 1,607,350 | |
Current liabilities | 260,682 | 327,595 | |
Senior unsecured notes payable | 0 | 0 | |
Other long-term liabilities | 463,342 | 332,790 | |
Total equity attributable to Matador Resources Company | 1,070,647 | 1,332,237 | |
Non-controlling interest in subsidiaries | 0 | 0 | |
Total liabilities and equity | $ 3,410,479 | $ 3,599,972 |
Subsidiary Guarantors Consoli_2
Subsidiary Guarantors Consolidated Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | $ 62,920 | $ 241,704 | $ 434,505 | $ 415,593 |
Total expenses | 498,230 | 164,915 | 676,283 | 331,264 |
Operating (loss) income | (435,310) | 76,789 | (241,778) | 84,329 |
Net loss on asset sales and impairment | (2,632) | (368) | (2,632) | (368) |
Interest expense | (18,297) | (18,068) | (38,109) | (35,997) |
Other (expense) income | 473 | (423) | 1,793 | (532) |
Earnings in subsidiaries | 0 | 0 | 0 | 0 |
(Loss) income before income taxes | (455,766) | 57,930 | (280,726) | 47,432 |
Total income tax (benefit) provision | (109,823) | 12,858 | (69,866) | 11,845 |
Net income attributable to non-controlling interest in subsidiaries | (7,473) | (8,320) | (16,827) | (15,782) |
Net (loss) income attributable to Matador Resources Company shareholders | (353,416) | 36,752 | (227,687) | 19,805 |
Eliminating Entries | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | (20,713) | (16,901) | (42,134) | (35,136) |
Total expenses | (20,713) | (16,901) | (42,134) | (35,136) |
Operating (loss) income | 0 | 0 | 0 | 0 |
Net loss on asset sales and impairment | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Other (expense) income | 0 | 0 | 0 | 0 |
Earnings in subsidiaries | 437,793 | (75,058) | 244,077 | (81,687) |
(Loss) income before income taxes | 437,793 | (75,058) | 244,077 | (81,687) |
Total income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net (loss) income attributable to Matador Resources Company shareholders | 437,793 | (75,058) | 244,077 | (81,687) |
Matador | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 0 | 0 | 0 | 0 |
Total expenses | 1,224 | 901 | 2,145 | 1,936 |
Operating (loss) income | (1,224) | (901) | (2,145) | (1,936) |
Net loss on asset sales and impairment | 0 | 0 | 0 | 0 |
Interest expense | (16,443) | (15,888) | (33,818) | (31,675) |
Other (expense) income | 0 | 0 | 0 | 0 |
Earnings in subsidiaries | (445,572) | 66,399 | (261,590) | 65,261 |
(Loss) income before income taxes | (463,239) | 49,610 | (297,553) | 31,650 |
Total income tax (benefit) provision | (109,823) | 12,858 | (69,866) | 11,845 |
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net (loss) income attributable to Matador Resources Company shareholders | (353,416) | 36,752 | (227,687) | 19,805 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 41,544 | 41,720 | 86,863 | 84,596 |
Total expenses | 23,190 | 22,564 | 46,984 | 48,069 |
Operating (loss) income | 18,354 | 19,156 | 39,879 | 36,527 |
Net loss on asset sales and impairment | (1,261) | 0 | (1,261) | 0 |
Interest expense | (1,854) | (2,180) | (4,291) | (4,322) |
Other (expense) income | 13 | 3 | 13 | 3 |
Earnings in subsidiaries | 0 | 0 | 0 | 0 |
(Loss) income before income taxes | 15,252 | 16,979 | 34,340 | 32,208 |
Total income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income attributable to non-controlling interest in subsidiaries | (7,473) | (8,320) | (16,827) | (15,782) |
Net (loss) income attributable to Matador Resources Company shareholders | 7,779 | 8,659 | 17,513 | 16,426 |
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Total revenues | 42,089 | 216,885 | 389,776 | 366,133 |
Total expenses | 494,529 | 158,351 | 669,288 | 316,395 |
Operating (loss) income | (452,440) | 58,534 | (279,512) | 49,738 |
Net loss on asset sales and impairment | (1,371) | (368) | (1,371) | (368) |
Interest expense | 0 | 0 | 0 | 0 |
Other (expense) income | 460 | (426) | 1,780 | (535) |
Earnings in subsidiaries | 7,779 | 8,659 | 17,513 | 16,426 |
(Loss) income before income taxes | (445,572) | 66,399 | (261,590) | 65,261 |
Total income tax (benefit) provision | 0 | 0 | 0 | 0 |
Net income attributable to non-controlling interest in subsidiaries | 0 | 0 | 0 | 0 |
Net (loss) income attributable to Matador Resources Company shareholders | $ (445,572) | $ 66,399 | $ (261,590) | $ 65,261 |
Subsidiary Guarantors Consoli_3
Subsidiary Guarantors Consolidated Cash Flow (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 210,385 | $ 194,497 |
Net cash used in investing activities | (458,761) | (394,694) |
Net cash provided by financing activities | 226,756 | 200,975 |
(Decrease) increase in cash and restricted cash | (21,620) | 778 |
Cash and restricted cash at beginning of period | 65,128 | 83,984 |
Cash and restricted cash at end of period | 43,508 | 84,762 |
Eliminating Entries | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 0 | 0 |
Net cash used in investing activities | (72) | (8,190) |
Net cash provided by financing activities | 72 | 8,190 |
(Decrease) 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 provided by operating activities | 3 | (109) |
Net cash used in investing activities | 0 | 0 |
Net cash provided by financing activities | 0 | 0 |
(Decrease) increase in cash and restricted cash | 3 | (109) |
Cash and restricted cash at beginning of period | 29 | 456 |
Cash and restricted cash at end of period | 32 | 347 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 45,408 | 51,266 |
Net cash used in investing activities | (124,180) | (59,309) |
Net cash provided by financing activities | 77,050 | 13,584 |
(Decrease) increase in cash and restricted cash | (1,722) | 5,541 |
Cash and restricted cash at beginning of period | 24,656 | 18,841 |
Cash and restricted cash at end of period | 22,934 | 24,382 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 164,974 | 143,340 |
Net cash used in investing activities | (334,509) | (327,195) |
Net cash provided by financing activities | 149,634 | 179,201 |
(Decrease) increase in cash and restricted cash | (19,901) | (4,654) |
Cash and restricted cash at beginning of period | 40,443 | 64,687 |
Cash and restricted cash at end of period | $ 20,542 | $ 60,033 |