Investor Presentaiton
9,000
A Step Change in Capital Efficiency: Updated 2020 Expectations (1)
Average Lateral Length and % of Longer Laterals
CapEx per Foot(2) and Lateral Footage Turned to Sales
8,000
Average Lateral Length
% of Laterals > 1-mile
% of 2-mile Laterals
7,000
Average Lateral Length, ft
6,000
5,000
4,700
9%
100%
600,000
83%
8,800
74%
75%
50%
5,700
25%
% of Lateral Type Turned to Sales
Lateral Footage Turned to Sales, ft
Lateral Feet Turned to Sales
(2)
Average D&C CapEx/ft
500,000
$1,700
$1,600
465,000
454,000
$1,500
400,000
381,000
300,000
-24%
Decline in
CapEx/ft
$1,400
$1,300
$1,200
-26%
200,000
$1,100
Decline in
CapEx/ft
$1,000
100,000
$900
4,000
0%
0
$800
2018
2019
2020E
2018
2019
2020E
Period Turned to Sales
Period Turned to Sales
By combining longer laterals with increased pad development, Matador has significantly reduced development costs per foot
between 2018 and 2020
83% of laterals expected to be greater than one mile in 2020, as compared to 29% in 2019 and 9% in 2018
In 2019, Matador's drilling and completion costs for all horizontal wells turned to sales averaged approximately $1,165/ft,
decrease of -24% from an average of $1,528/ft achieved in full year 2018, saving ~$160 million in gross D&C CapEx as compared
to 2018 costs
- In Q3 2020, Matador's drilling and completion costs for all horizontal wells turned to sales averaged $790/ft, a decrease of -32%
from full year 2019 and a decrease of ~48% from full year 2018, saving ~$142 million in gross D&C CapEx as compared to 2018
costs
Note: All footage and percentage of lateral types shown are based on gross operated horizontal wells.
(1) As of and as updated on October 27, 2020.
(2) Cost per foot metric shown represents the drilling and completion (D&C) portion of well costs only. Excludes costs to equip wells, midstream capital expenditures, capitalized G&A or interest expenses and
certain other capital expenditures.
Matador 20
RESOURCES COMPANY
Average Drilling & Completions CapEx/foot, $/ft(¹)View entire presentation