Matador Resources Company Reports Third Quarter 2022 Results and Raises Full Year 2022 Guidance
Matador Resources Company (NYSE: MTDR) reported strong Q3 2022 results, exceeding production expectations with over 105,000 BOE per day, a 50% increase from Q3 2020. The company has halved its debt to $750 million, resulting in upgraded credit ratings across agencies. The quarterly dividend has doubled to $0.40 per share for shareholders of record by November 10, 2022. However, net income fell 19% sequentially to $337.6 million due to lower commodity prices, despite a significant year-over-year increase of 66%. The Q3 adjusted EBITDA also saw a 19% decrease sequentially.
- Production surpassed expectations at over 105,000 BOE per day, up 50% YoY.
- Debt reduced by $775 million, with current outstanding debt at $750 million.
- Credit ratings upgraded from 'single B' to 'double B' across major agencies.
- Quarterly dividend doubled to $0.40 per share, enhancing shareholder returns.
- Adjusted EBITDA increased 84% YoY despite a sequential decrease.
- Net income dropped 19% sequentially to $337.6 million, impacted by lower commodity prices.
- Realized oil price fell 15% sequentially to $94.36 per barrel.
- Adjusted net income decreased 23% sequentially to $321.7 million.
Management Summary Comments
Third Quarter 2022 Results Above Expectations
“The third quarter of 2022 was another outstanding quarter for Matador highlighted by production and operating results above our expectations (see Slide A). We are on path to achieve our primary aims for the year to increase shareholder value by the following efforts:
- Growing the fixed dividend and returns to shareholders;
- Reducing debt; and
- Increasing production, reserves and midstream assets.
“Notably, Matador’s growing midstream business, including our
Debt Reduced, Credit Ratings Upgraded and Quarterly Dividend Doubled
“In the last two years, Matador has reduced its outstanding debt by
“In September and October, we were also pleased to announce that all three of Matador’s credit rating agencies—Moody’s, S&P and Fitch—upgraded Matador’s corporate credit rating (see Slide D). Matador has now transitioned from being a ‘single B’ company to a ‘double B’ company across the board. These upgrades reflect our commitment to repaying debt, improving capital efficiency, adding to our production profile and increasing Matador’s cash returns to our shareholders. The rating agencies specifically noted the increasing strength of our balance sheet and our strong operational execution in their decisions to upgrade Matador’s credit rating.
“As a result of our confidence in Matador’s growing operational and financial strength and our execution this year, we were very pleased to announce at our Annual Meeting of Shareholders in June the doubling of our fixed cash dividend from
Stronger than Expected Production Results in Third Quarter 2022
“During the third quarter of 2022, Matador achieved better than expected average oil and natural gas equivalent production of over 105,000 barrels of oil and natural gas equivalent (“BOE”) per day (see Slide E), which was
Seventh Drilling Rig Added in Third Quarter 2022
“During the third quarter of 2022, Matador added a seventh drilling rig, which allowed us to drill the Jim Pat SWD well before the injection permit authorizing the disposal of produced water into this well expired. As a result, Matador was able to boost San Mateo’s salt water disposal capacity and accelerate the timing of the next phase of drilling on its
“Matador is pleased with the early performance of the seventh rig, which has enhanced technical specifications highly sought after by the industry. This rig’s increased set-back capabilities, for example, allow for an approximate
Looking Ahead and Increasing Full Year 2022 Guidance
“Due to the better-than-expected well performance across our
“The midpoint of our 2022 capital expenditures guidance for drilling, completing and equipping wells remains unchanged at
Third Quarter 2022 Financial and Operational Highlights
Net Cash Provided by Operating Activities and Adjusted Free Cash Flow
-
Third quarter 2022 net cash provided by operating activities was
$557.0 million $269.1 million
Net Income, Earnings Per Share and Adjusted EBITDA
-
Third quarter 2022 net income (GAAP basis) was
$337.6 million $2.82 19% sequential decrease from net income of$415.7 million 66% year-over-year increase from net income of$203.6 million $94.36 15% sequential decrease as compared to$111.06 -
Third quarter 2022 adjusted net income (a non-GAAP financial measure) was
$321.7 million $2.68 23% sequential decrease from adjusted net income of$415.6 million 116% year-over-year increase from adjusted net income of$148.6 million -
Third quarter 2022 adjusted earnings before interest expense, income taxes, depletion, depreciation and amortization and certain other items (“Adjusted EBITDA,” a non-GAAP financial measure) were
$539.7 million 19% sequential decrease from$663.8 million 84% year-over-year increase from$293.8 million
Oil, Natural Gas and Total Production Above Expectations
-
As summarized in the table below, Matador’s third quarter 2022 average daily oil, natural gas and total production were all above the Company’s expectations. The primary driver behind this outperformance was better-than-expected production from the 15 most recent Stateline and nine most recent
Rodney Robinson wells turned to sales this year and increased working interests from several trades completed earlier than anticipated during the third quarter. In addition, several anticipated incremental shut-ins in the Stateline asset area due to offset operator completions were deferred from the third quarter to the fourth quarter of 2022.
|
Q3 2022 Average Daily Volume |
|
Production Change (%) |
|||
Production |
Actual |
Guidance(1) |
|
Sequential(2) |
YoY(3) |
Difference vs. Guidance(4) |
Total, BOE per day |
105,214 |
100,000 to 102,000 |
|
(5)% |
|
|
Oil, Bbl per day |
60,163 |
58,000 to 59,000 |
|
(6)% |
|
|
Natural Gas, MMcf per day |
270.3 |
254.0 to 258.0 |
|
(3)% |
|
|
(1) As provided on |
(2) As compared to the second quarter of 2022. |
(3) Represents year-over-year percentage change from the third quarter of 2021. |
(4) As compared to midpoint of guidance provided on |
Capital Expenditures Below Expectations
Q3 2022 Capital Expenditures ($ millions) |
Actual |
Guidance(1) |
Difference vs. Guidance(2) |
||
Drilling, completing and equipping (“D/C/E”) |
241.8 |
260.0 |
(7)% |
||
Midstream |
14.7 |
24.0 |
(39)% |
(1) As provided on |
(2) As compared to guidance provided on |
-
Drilling and completion costs for the 20 gross (18.5 net) operated horizontal wells turned to sales in the third quarter of 2022 averaged
$948 $820 $890
Note: All references to Matador’s net income, adjusted net income, Adjusted EBITDA and adjusted free cash flow reported throughout this earnings release are those values attributable to
Sequential and year-over-year quarterly comparisons of selected financial and operating items are shown in the following table:
|
Three Months Ended |
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Net Production Volumes:(1) |
|
|
|
|
|
|
||||||
Oil (MBbl)(2) |
|
5,535 |
|
|
|
5,855 |
|
|
|
4,669 |
|
|
Natural gas (Bcf)(3) |
|
24.9 |
|
|
|
25.3 |
|
|
|
21.7 |
|
|
Total oil equivalent (MBOE)(4) |
|
9,680 |
|
|
|
10,078 |
|
|
|
8,283 |
|
|
Average Daily Production Volumes:(1) |
|
|
|
|
|
|
||||||
Oil (Bbl/d)(5) |
|
60,163 |
|
|
|
64,339 |
|
|
|
50,747 |
|
|
Natural gas (MMcf/d)(6) |
|
270.3 |
|
|
|
278.5 |
|
|
|
235.7 |
|
|
Total oil equivalent (BOE/d)(7) |
|
105,214 |
|
|
|
110,750 |
|
|
|
90,033 |
|
|
Average Sales Prices: |
|
|
|
|
|
|
||||||
Oil, without realized derivatives (per Bbl) |
$ |
94.36 |
|
|
$ |
111.06 |
|
|
$ |
69.73 |
|
|
Oil, with realized derivatives (per Bbl) |
$ |
91.69 |
|
|
$ |
105.21 |
|
|
$ |
58.43 |
|
|
Natural gas, without realized derivatives (per Mcf)(8) |
$ |
9.22 |
|
|
$ |
9.57 |
|
|
$ |
6.27 |
|
|
Natural gas, with realized derivatives (per Mcf) |
$ |
7.55 |
|
|
$ |
8.51 |
|
|
$ |
6.05 |
|
|
Revenues (millions): |
|
|
|
|
|
|
||||||
Oil and natural gas revenues |
$ |
751.4 |
|
|
$ |
892.8 |
|
|
$ |
461.5 |
|
|
Third-party midstream services revenues |
$ |
24.7 |
|
|
$ |
21.9 |
|
|
$ |
20.5 |
|
|
Realized loss on derivatives |
$ |
(56.3 |
) |
|
$ |
(61.2 |
) |
|
$ |
(57.4 |
) |
|
Operating Expenses (per BOE): |
|
|
|
|
|
|
||||||
Production taxes, transportation and processing |
$ |
7.64 |
|
|
$ |
8.50 |
|
|
$ |
5.90 |
|
|
Lease operating |
$ |
4.38 |
|
|
$ |
3.95 |
|
|
$ |
3.31 |
|
|
Plant and other midstream services operating |
$ |
2.56 |
|
|
$ |
2.18 |
|
|
$ |
2.06 |
|
|
Depletion, depreciation and amortization |
$ |
12.28 |
|
|
$ |
11.91 |
|
|
$ |
10.75 |
|
|
General and administrative(9) |
$ |
2.85 |
|
|
$ |
2.42 |
|
|
$ |
2.97 |
|
|
Total(10) |
$ |
29.71 |
|
|
$ |
28.96 |
|
|
$ |
24.99 |
|
|
Other (millions): |
|
|
|
|
|
|
||||||
Net sales of purchased natural gas(11) |
$ |
8.5 |
|
|
$ |
3.6 |
|
|
$ |
4.2 |
|
|
|
|
|
|
|
|
|
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Net income (millions)(12) |
$ |
337.6 |
|
|
$ |
415.7 |
|
|
$ |
203.6 |
|
|
Earnings per common share (diluted)(12) |
$ |
2.82 |
|
|
$ |
3.47 |
|
|
$ |
1.71 |
|
|
Adjusted net income (millions)(12)(13) |
$ |
321.7 |
|
|
$ |
415.6 |
|
|
$ |
148.6 |
|
|
Adjusted earnings per common share (diluted)(12)(14) |
$ |
2.68 |
|
|
$ |
3.47 |
|
|
$ |
1.25 |
|
|
Adjusted EBITDA (millions)(12)(15) |
$ |
539.7 |
|
|
$ |
663.8 |
|
|
$ |
293.8 |
|
|
Net cash provided by operating activities (millions)(16) |
$ |
557.0 |
|
|
$ |
646.3 |
|
|
$ |
291.2 |
|
|
Adjusted free cash flow (millions)(12)(17) |
$ |
269.1 |
|
|
$ |
453.8 |
|
|
$ |
147.5 |
|
|
|
|
|
|
|
|
|
||||||
San Mateo net income (millions)(18) |
$ |
33.6 |
|
|
$ |
41.8 |
|
|
$ |
29.5 |
|
|
San Mateo Adjusted EBITDA (millions)(15)(18) |
$ |
47.6 |
|
|
$ |
52.9 |
|
|
$ |
40.8 |
|
|
San Mateo net cash provided by operating activities (millions)(18) |
$ |
38.3 |
|
|
$ |
49.9 |
|
|
$ |
44.2 |
|
|
San Mateo adjusted free cash flow (millions)(16)(17)(18) |
$ |
16.4 |
|
|
$ |
33.4 |
|
|
$ |
8.4 |
|
|
|
|
|
|
|
|
|
||||||
|
$ |
241.8 |
|
|
$ |
143.0 |
|
|
$ |
121.1 |
|
|
Midstream capital expenditures (millions)(19) |
$ |
14.7 |
|
|
$ |
8.9 |
|
|
$ |
14.7 |
|
|
(1) Production volumes reported in two streams: oil and natural gas, including both dry and liquids-rich natural gas. |
(2) One thousand barrels of oil. |
(3) One billion cubic feet of natural gas. |
(4) One thousand barrels of oil equivalent, estimated using a conversion ratio of one barrel of oil per six thousand cubic feet of natural gas. |
(5) Barrels of oil per day. |
(6) Millions of cubic feet of natural gas per day. |
(7) Barrels of oil equivalent per day, estimated using a conversion ratio of one barrel of oil per six thousand cubic feet of natural gas. |
(8) Per thousand cubic feet of natural gas. |
(9) Includes approximately |
(10) Total does not include the impact of purchased natural gas or immaterial accretion expenses. |
(11) Net sales of purchased natural gas reflect those natural gas purchase transactions that the Company periodically enters into with third parties whereby the Company purchases natural gas and (i) subsequently sells the natural gas to other purchasers or (ii) processes the natural gas at either the San Mateo or Pronto cryogenic natural gas processing plants and subsequently sells the residue natural gas and natural gas liquids (“NGL”) to other purchasers. Such amounts reflect revenues from sales of purchased natural gas of |
(12) Attributable to |
(13) Adjusted net income is a non-GAAP financial measure. For a definition of adjusted net income and a reconciliation of adjusted net income (non-GAAP) to net income (GAAP), please see “Supplemental Non-GAAP Financial Measures.” |
(14) Adjusted earnings per diluted common share is a non-GAAP financial measure. For a definition of adjusted earnings per diluted common share and a reconciliation of adjusted earnings per diluted common share (non-GAAP) to earnings per diluted common share (GAAP), please see “Supplemental Non-GAAP Financial Measures.” |
(15) Adjusted EBITDA is a non-GAAP financial measure. For a definition of Adjusted EBITDA and a reconciliation of Adjusted EBITDA (non-GAAP) to net income (GAAP) and net cash provided by operating activities (GAAP), please see “Supplemental Non-GAAP Financial Measures.” |
(16) As reported for each period on a consolidated basis, including |
(17) Adjusted free cash flow is a non-GAAP financial measure. For a definition of adjusted free cash flow and a reconciliation of adjusted free cash flow (non-GAAP) to net cash provided by operating activities (GAAP), please see “Supplemental Non-GAAP Financial Measures.” |
(18) Represents |
(19) Includes Matador’s |
Full-Year 2022 Guidance Update
As shown in the table below, effective
|
2022 Guidance Estimates |
||||
Guidance Metric |
Actual 2021 Results |
2022(1) |
% YoY Change(2) |
2022(3) |
% YoY Change(2) |
Total Oil Production, million Bbl |
17.8 |
21.4 to 22.0 |
+ |
21.7 to 22.0 |
+ |
Total Natural Gas Production, Bcf |
81.7 |
93.0 to 98.0 |
+ |
96.0 to 98.0 |
+ |
Total Oil Equivalent Production, million BOE |
31.5 |
36.9 to 38.3 |
+ |
37.7 to 38.3 |
+ |
D/C/E CapEx(4), millions |
|
|
+ |
|
+ |
Midstream CapEx(5), millions |
|
|
+ |
|
+ |
Total |
|
|
+ |
|
+ |
(1) As of and as affirmed or updated on |
(2) Represents percentage change from 2021 actual results to the midpoint of 2022 guidance, as affirmed or updated on |
(3) As of and as affirmed or updated on |
(4) Capital expenditures associated with drilling, completing and equipping wells. |
(5) Includes Matador’s share of estimated capital expenditures for San Mateo and other wholly-owned midstream projects, such as Pronto Midstream. Excludes the acquisition of Pronto Midstream. |
Matador now expects to turn to sales 81 gross (64.3 net) operated horizontal wells during 2022, an increase of one gross (0.6 net) wells from the Company’s prior expectations, primarily as a result of completion schedule changes and additional working interests from anticipated acreage trades.
Fourth Quarter 2022 Completions and Production Cadence Update
Fourth Quarter 2022 Estimated Wells Turned to Sales
At
Fourth Quarter 2022 Estimated Oil, Natural Gas and Total Oil Equivalent Production
The table below provides Matador’s estimates, as of
|
Q4 2022 Production Estimates |
||
Period |
Average Daily Total Production, BOE per day |
Average Daily Oil Production, Bbl per day |
Average Daily Natural Gas Production, MMcf per day |
Q3 2022 |
105,214 |
60,163 |
270.3 |
Q4 2022 |
105,500 to 107,500 |
61,000 to 62,000 |
267.0 to 273.0 |
As noted in the table above, Matador expects its average daily total oil and natural gas equivalent production to increase
Third Quarter Horizontal Wells Completed and Turned to Sales
|
Operated |
|
Non-Operated |
|
Total |
Gross Operated and Non-Operated |
|||
Asset/Operating Area |
Gross |
Net |
|
Gross |
Net |
|
Gross |
Net |
Well Completion Intervals |
|
— |
— |
|
— |
— |
|
— |
— |
No wells turned to sales in Q3 2022 |
|
12 |
11.2 |
|
11 |
0.5 |
|
23 |
11.7 |
7-1BS, 5-2BS, 8-3BS, 3-WC A |
Arrowhead |
— |
— |
|
4 |
0.1 |
|
4 |
0.1 |
2-2BS, 2-WC A |
Ranger |
— |
— |
|
4 |
0.4 |
|
4 |
0.4 |
2-2BS, 2-WC B |
Rustler Breaks |
4 |
3.3 |
|
9 |
0.3 |
|
13 |
3.6 |
1-1BS, 4-2BS, 7-WC A, 1-WC B |
Stateline |
4 |
4.0 |
|
— |
— |
|
4 |
4.0 |
4-WC B |
|
— |
— |
|
— |
— |
|
— |
— |
No wells turned to sales in Q3 2022 |
|
20 |
18.5 |
|
28 |
1.3 |
|
48 |
19.8 |
|
|
— |
— |
|
— |
— |
|
— |
— |
No wells turned to sales in Q3 2022 |
|
— |
— |
|
5 |
0.6 |
|
5 |
0.6 |
5-HSVL |
Total |
20 |
18.5 |
|
33 |
1.9 |
|
53 |
20.4 |
|
|
|
|
|
|
|
|
|
|
|
Note: WC = Wolfcamp; BS = Bone Spring; HSVL =
Realized Commodity Prices
|
Q3 2022 |
|
Change |
||||
Realized Commodity Prices |
Benchmark(1) |
Actual |
Differential Guidance(2) |
Actual Differential |
|
Sequential(3) |
YoY(4) |
Oil Prices, per Bbl |
|
|
|
|
|
(15)% |
+ |
Natural Gas Prices, per Mcf |
|
|
|
|
|
(4)% |
+ |
(1) Oil benchmark is West Texas Intermediate (“WTI”) and natural gas benchmark is |
(2) As provided on |
(3) Third quarter 2022 as compared to second quarter 2022. |
(4) Third quarter 2022 as compared to third quarter 2021. |
Oil Prices
For the fourth quarter of 2022, Matador’s weighted average oil price differential relative to the WTI benchmark price, inclusive of the monthly roll and transportation costs, is anticipated to be in the range of
At
Natural Gas Prices
For the fourth quarter of 2022, Matador’s weighted average natural gas price differential relative to the Henry Hub average daily benchmark price is anticipated to be in the range of (
At
Operating Expenses
On a unit of production basis:
-
Production taxes, transportation and processing expenses decreased
10% sequentially from$8.50 $7.64 $751.4 million -
Lease operating expenses increased
11% sequentially from$3.95 $4.38 -
General and administrative expenses increased
18% sequentially from$2.42 $2.85 5% from$46.59 June 30, 2022 to$48.92 September 30, 2022 . Matador’s share price as ofOctober 24, 2022 was$66.71
Midstream Highlights and Update
Operating Highlights and Financial Results
Operating Highlights
San Mateo’s operations in the third quarter of 2022 were highlighted by better-than-expected operating and financial results. These strong results reflect not only better-than-expected volumes delivered by Matador during the third quarter of 2022, but also increased and stronger-than-expected volumes delivered by other San Mateo customers as a result of several new business opportunities recently awarded to San Mateo.
Operationally, water handling volumes achieved in the third quarter of 2022 were all-time highs for San Mateo and are shown in the table below, along with other San Mateo throughput volumes, as compared to the second quarter of 2022 and the third quarter of 2021. The volumes in the table do not include the full quantity of volumes that would have otherwise been delivered by certain San Mateo customers subject to minimum volume commitments (although partial deliveries were made in each period), but for which San Mateo recognized revenues during each period.
San Mateo Throughput Volumes |
Q3 2022 |
|
Q2 2022 |
|
Sequential(1) |
|
Q3 2021 |
|
YoY(2) |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas gathering, MMcf per day |
285 |
|
|
293 |
|
(3)% |
|
248 |
|
|
Natural gas processing, MMcf per day |
280 |
|
|
292 |
|
(4)% |
|
232 |
|
|
Oil gathering and transportation, Bbl per day |
44,800 |
|
|
51,200 |
|
(13)% |
|
42,500 |
|
|
Produced water handling, Bbl per day |
358,000 |
|
|
348,000 |
|
|
|
284,000 |
|
|
(1) Third quarter 2022 as compared to second quarter 2022. |
(2) Third quarter 2022 as compared to third quarter 2021. |
Financial Results
During the third quarter of 2022, San Mateo achieved strong financial results as described below.
-
Net income (GAAP basis) of
$33.6 million 20% sequential decrease from$41.8 million 14% year-over-year increase from$29.5 million
-
Adjusted EBITDA (a non-GAAP financial measure) of
$47.6 million 10% sequential decrease from$52.9 million 17% year-over-year increase from$40.8 million
-
Net cash provided by San Mateo operating activities (GAAP basis) of
$38.3 million $16.4 million
Primarily as a result of San Mateo and Pronto Midstream activity, Matador achieved third-party midstream services revenues of
Capital Expenditures
Capital expenditures for Pronto Midstream and Matador’s portion of San Mateo’s capital expenditures were
Conference Call Information
The Company will host a live conference call on
The live conference call will also be available through the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab. The replay for the event will be available on the Company’s website at www.matadorresources.com on the Events and Presentations page under the Investor Relations tab for one year.
About
Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in
For more information, visit
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. “Forward-looking statements” are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,” “project,” “hypothetical,” “forecasted” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, the payment of dividends, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, the following risks related to financial and operational performance: general economic conditions; the Company’s ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; the operating results of the Company’s midstream’s oil, natural gas and water gathering and transportation systems, pipelines and facilities, the acquiring of third-party business and the drilling of any additional salt water disposal wells; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; impact on the Company’s operations due to seismic events; availability of sufficient capital to execute its business plan, available borrowing capacity under its revolving credit facilities and otherwise; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; the operating results of and the availability of any potential distributions from our joint ventures; weather and environmental conditions; the impact of the worldwide spread of the novel coronavirus, or COVID-19, or variants thereof, on oil and natural gas demand, oil and natural gas prices and its business; and the other factors which could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador’s filings with the
CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED |
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(In thousands, except par value and share data) |
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Cash |
$ |
400,484 |
|
|
$ |
48,135 |
|
|
Restricted cash |
|
41,236 |
|
|
|
38,785 |
|
|
Accounts receivable |
|
|
|
|
||||
Oil and natural gas revenues |
|
268,869 |
|
|
|
164,242 |
|
|
Joint interest billings |
|
120,786 |
|
|
|
48,366 |
|
|
Other |
|
28,401 |
|
|
|
28,808 |
|
|
Derivative instruments |
|
1,499 |
|
|
|
1,971 |
|
|
Lease and well equipment inventory |
|
14,388 |
|
|
|
12,188 |
|
|
Prepaid expenses and other current assets |
|
51,228 |
|
|
|
28,810 |
|
|
Total current assets |
|
926,891 |
|
|
|
371,305 |
|
|
Property and equipment, at cost |
|
|
|
|
||||
Oil and natural gas properties, full-cost method |
|
|
|
|
||||
Evaluated |
|
6,627,788 |
|
|
|
6,007,325 |
|
|
Unproved and unevaluated |
|
1,000,720 |
|
|
|
964,714 |
|
|
Midstream properties |
|
1,038,883 |
|
|
|
900,979 |
|
|
Other property and equipment |
|
31,550 |
|
|
|
30,123 |
|
|
Less accumulated depletion, depreciation and amortization |
|
(4,380,674 |
) |
|
|
(4,046,456 |
) |
|
Net property and equipment |
|
4,318,267 |
|
|
|
3,856,685 |
|
|
Other assets |
|
|
|
|
||||
Other long-term assets |
|
59,992 |
|
|
|
34,163 |
|
|
Total assets |
$ |
5,305,150 |
|
|
$ |
4,262,153 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
||||
Current liabilities |
|
|
|
|
||||
Accounts payable |
$ |
61,105 |
|
|
$ |
26,256 |
|
|
Accrued liabilities |
|
306,539 |
|
|
|
253,283 |
|
|
Royalties payable |
|
134,373 |
|
|
|
94,359 |
|
|
Amounts due to affiliates |
|
25,396 |
|
|
|
27,324 |
|
|
Derivative instruments |
|
17,879 |
|
|
|
16,849 |
|
|
Advances from joint interest owners |
|
26,993 |
|
|
|
18,074 |
|
|
Income taxes payable |
|
3,439 |
|
|
|
— |
|
|
Other current liabilities |
|
49,465 |
|
|
|
28,692 |
|
|
Total current liabilities |
|
625,189 |
|
|
|
464,837 |
|
|
Long-term liabilities |
|
|
|
|
||||
Borrowings under Credit Agreement |
|
— |
|
|
|
100,000 |
|
|
Borrowings under San Mateo Credit Facility |
|
440,000 |
|
|
|
385,000 |
|
|
Senior unsecured notes payable |
|
752,850 |
|
|
|
1,042,580 |
|
|
Asset retirement obligations |
|
51,707 |
|
|
|
41,689 |
|
|
Deferred income taxes |
|
349,205 |
|
|
|
77,938 |
|
|
Other long-term liabilities |
|
20,591 |
|
|
|
22,721 |
|
|
Total long-term liabilities |
|
1,614,353 |
|
|
|
1,669,928 |
|
|
Shareholders’ equity |
|
|
|
|
||||
Common stock - |
|
1,183 |
|
|
|
1,179 |
|
|
Additional paid-in capital |
|
2,094,611 |
|
|
|
2,077,592 |
|
|
Retained earnings (accumulated deficit) |
|
765,602 |
|
|
|
(171,318 |
) |
|
|
|
(2,585 |
) |
|
|
(243 |
) |
|
|
|
2,858,811 |
|
|
|
1,907,210 |
|
|
Non-controlling interest in subsidiaries |
|
206,797 |
|
|
|
220,178 |
|
|
Total shareholders’ equity |
|
3,065,608 |
|
|
|
2,127,388 |
|
|
Total liabilities and shareholders’ equity |
$ |
5,305,150 |
|
|
$ |
4,262,153 |
|
|
|
|
|
|
|
||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED |
||||||||||||||||
(In thousands, except per share data) |
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Revenues |
|
|
|
|
|
|
|
|
||||||||
Oil and natural gas revenues |
$ |
751,444 |
|
|
$ |
461,465 |
|
|
$ |
2,270,728 |
|
|
$ |
1,189,772 |
|
|
Third-party midstream services revenues |
|
24,707 |
|
|
|
20,486 |
|
|
|
63,899 |
|
|
|
55,774 |
|
|
Sales of purchased natural gas |
|
77,943 |
|
|
|
38,770 |
|
|
|
157,290 |
|
|
|
54,198 |
|
|
Realized loss on derivatives |
|
(56,263 |
) |
|
|
(57,419 |
) |
|
|
(139,865 |
) |
|
|
(125,943 |
) |
|
Unrealized gain (loss) on derivatives |
|
43,097 |
|
|
|
9,049 |
|
|
|
(1,502 |
) |
|
|
(77,178 |
) |
|
Total revenues |
|
840,928 |
|
|
|
472,351 |
|
|
|
2,350,550 |
|
|
|
1,096,623 |
|
|
Expenses |
|
|
|
|
|
|
|
|
||||||||
Production taxes, transportation and processing |
|
73,964 |
|
|
|
48,896 |
|
|
|
219,441 |
|
|
|
126,913 |
|
|
Lease operating |
|
42,360 |
|
|
|
27,433 |
|
|
|
116,172 |
|
|
|
82,124 |
|
|
Plant and other midstream services operating |
|
24,790 |
|
|
|
17,043 |
|
|
|
66,265 |
|
|
|
44,452 |
|
|
Purchased natural gas |
|
69,442 |
|
|
|
34,581 |
|
|
|
142,903 |
|
|
|
47,064 |
|
|
Depletion, depreciation and amortization |
|
118,870 |
|
|
|
89,061 |
|
|
|
334,747 |
|
|
|
255,368 |
|
|
Accretion of asset retirement obligations |
|
679 |
|
|
|
518 |
|
|
|
1,739 |
|
|
|
1,529 |
|
|
General and administrative |
|
27,549 |
|
|
|
24,633 |
|
|
|
81,713 |
|
|
|
71,218 |
|
|
Total expenses |
|
357,654 |
|
|
|
242,165 |
|
|
|
962,980 |
|
|
|
628,668 |
|
|
Operating income |
|
483,274 |
|
|
|
230,186 |
|
|
|
1,387,570 |
|
|
|
467,955 |
|
|
Other income (expense) |
|
|
|
|
|
|
|
|
||||||||
Net loss on asset sales and impairment |
|
(1,113 |
) |
|
|
(251 |
) |
|
|
(1,311 |
) |
|
|
(251 |
) |
|
Interest expense |
|
(15,996 |
) |
|
|
(17,989 |
) |
|
|
(50,740 |
) |
|
|
(55,579 |
) |
|
Other income (expense) |
|
1,804 |
|
|
|
(585 |
) |
|
|
(2,682 |
) |
|
|
(1,246 |
) |
|
Total other expense |
|
(15,305 |
) |
|
|
(18,825 |
) |
|
|
(54,733 |
) |
|
|
(57,076 |
) |
|
Income before income taxes |
|
467,969 |
|
|
|
211,361 |
|
|
|
1,332,837 |
|
|
|
410,879 |
|
|
Income tax provision (benefit) |
|
|
|
|
|
|
|
|
||||||||
Current |
|
270 |
|
|
|
— |
|
|
|
51,940 |
|
|
|
— |
|
|
Deferred |
|
113,671 |
|
|
|
(6,701 |
) |
|
|
266,489 |
|
|
|
1,488 |
|
|
Total income tax provision (benefit) |
|
113,941 |
|
|
|
(6,701 |
) |
|
|
318,429 |
|
|
|
1,488 |
|
|
Net income |
|
354,028 |
|
|
|
218,062 |
|
|
|
1,014,408 |
|
|
|
409,391 |
|
|
Net income attributable to non-controlling interest in subsidiaries |
|
(16,456 |
) |
|
|
(14,434 |
) |
|
|
(53,994 |
) |
|
|
(39,213 |
) |
|
Net income attributable to |
$ |
337,572 |
|
|
$ |
203,628 |
|
|
$ |
960,414 |
|
|
$ |
370,178 |
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
||||||||
Basic |
$ |
2.86 |
|
|
$ |
1.74 |
|
|
$ |
8.13 |
|
|
$ |
3.17 |
|
|
Diluted |
$ |
2.82 |
|
|
$ |
1.71 |
|
|
$ |
8.01 |
|
|
$ |
3.12 |
|
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
118,136 |
|
|
|
117,008 |
|
|
|
118,063 |
|
|
|
116,872 |
|
|
Diluted |
|
119,850 |
|
|
|
119,197 |
|
|
|
119,867 |
|
|
|
118,788 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED |
||||||||||||||||
(In thousands) |
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
||||||||
Operating activities |
|
|
|
|
|
|
|
|
||||||||
Net income |
$ |
354,028 |
|
|
$ |
218,062 |
|
|
$ |
1,014,408 |
|
|
$ |
409,391 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
|
|
|
|
||||||||
Unrealized (gain) loss on derivatives |
|
(43,097 |
) |
|
|
(9,049 |
) |
|
|
1,502 |
|
|
|
77,178 |
|
|
Depletion, depreciation and amortization |
|
118,870 |
|
|
|
89,061 |
|
|
|
334,747 |
|
|
|
255,368 |
|
|
Accretion of asset retirement obligations |
|
679 |
|
|
|
518 |
|
|
|
1,739 |
|
|
|
1,529 |
|
|
Stock-based compensation expense |
|
3,810 |
|
|
|
2,967 |
|
|
|
10,887 |
|
|
|
5,617 |
|
|
Deferred income tax provision (benefit) |
|
113,671 |
|
|
|
(6,701 |
) |
|
|
266,489 |
|
|
|
1,488 |
|
|
Amortization of debt issuance cost and other debt-related costs |
|
(1,888 |
) |
|
|
788 |
|
|
|
(682 |
) |
|
|
2,443 |
|
|
Net loss on asset sales and impairment |
|
1,113 |
|
|
|
251 |
|
|
|
1,311 |
|
|
|
251 |
|
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
40,922 |
|
|
|
(32,321 |
) |
|
|
(170,101 |
) |
|
|
(111,221 |
) |
|
Lease and well equipment inventory |
|
(903 |
) |
|
|
(742 |
) |
|
|
(1,732 |
) |
|
|
(1,179 |
) |
|
Prepaid expenses and other current assets |
|
(7,169 |
) |
|
|
(5,032 |
) |
|
|
(21,886 |
) |
|
|
(9,515 |
) |
|
Other long-term assets |
|
30 |
|
|
|
546 |
|
|
|
257 |
|
|
|
637 |
|
|
Accounts payable, accrued liabilities and other current liabilities |
|
20,586 |
|
|
|
26,274 |
|
|
|
51,078 |
|
|
|
60,619 |
|
|
Royalties payable |
|
(16,525 |
) |
|
|
9,106 |
|
|
|
40,014 |
|
|
|
25,313 |
|
|
Advances from joint interest owners |
|
8,062 |
|
|
|
(868 |
) |
|
|
8,919 |
|
|
|
1,149 |
|
|
Income taxes payable |
|
(34,731 |
) |
|
|
— |
|
|
|
3,439 |
|
|
|
— |
|
|
Other long-term liabilities |
|
(498 |
) |
|
|
(1,629 |
) |
|
|
(8,173 |
) |
|
|
(242 |
) |
|
Net cash provided by operating activities |
|
556,960 |
|
|
|
291,231 |
|
|
|
1,532,216 |
|
|
|
718,826 |
|
|
Investing activities |
|
|
|
|
|
|
|
|
||||||||
Drilling, completion and equipping capital expenditures |
|
(155,560 |
) |
|
|
(106,761 |
) |
|
|
(545,453 |
) |
|
|
(317,486 |
) |
|
Acquisition of oil and natural gas properties |
|
(61,141 |
) |
|
|
(14,364 |
) |
|
|
(134,255 |
) |
|
|
(29,720 |
) |
|
Midstream capital expenditures |
|
(23,103 |
) |
|
|
(15,130 |
) |
|
|
(51,413 |
) |
|
|
(40,222 |
) |
|
Acquisition of midstream assets |
|
— |
|
|
|
— |
|
|
|
(75,816 |
) |
|
|
— |
|
|
Expenditures for other property and equipment |
|
(407 |
) |
|
|
(220 |
) |
|
|
(690 |
) |
|
|
(465 |
) |
|
Proceeds from sale of assets |
|
95 |
|
|
|
3,919 |
|
|
|
46,507 |
|
|
|
4,215 |
|
|
Net cash used in investing activities |
|
(240,116 |
) |
|
|
(132,556 |
) |
|
|
(761,120 |
) |
|
|
(383,678 |
) |
|
Financing activities |
|
|
|
|
|
|
|
|
||||||||
Purchase of senior unsecured notes |
|
(141,556 |
) |
|
|
— |
|
|
|
(283,960 |
) |
|
|
— |
|
|
Repayments of borrowings under Credit Agreement |
|
— |
|
|
|
(150,000 |
) |
|
|
(300,000 |
) |
|
|
(390,000 |
) |
|
Borrowings under Credit Agreement |
|
— |
|
|
|
30,000 |
|
|
|
200,000 |
|
|
|
70,000 |
|
|
Repayments of borrowings under San Mateo Credit Facility |
|
(50,000 |
) |
|
|
(30,000 |
) |
|
|
(120,000 |
) |
|
|
(64,000 |
) |
|
Borrowings under San Mateo Credit Facility |
|
70,000 |
|
|
|
35,000 |
|
|
|
175,000 |
|
|
|
87,500 |
|
|
Cost to amend credit facilities |
|
— |
|
|
|
(48 |
) |
|
|
(506 |
) |
|
|
(878 |
) |
|
Proceeds from stock options exercised |
|
— |
|
|
|
213 |
|
|
|
— |
|
|
|
213 |
|
|
Dividends paid |
|
(11,750 |
) |
|
|
(2,915 |
) |
|
|
(23,494 |
) |
|
|
(8,741 |
) |
|
Contributions related to formation of San Mateo |
|
— |
|
|
|
6,000 |
|
|
|
22,750 |
|
|
|
37,626 |
|
|
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries |
|
(22,540 |
) |
|
|
(16,905 |
) |
|
|
(67,375 |
) |
|
|
(45,815 |
) |
|
Taxes paid related to net share settlement of stock-based compensation |
|
(1,412 |
) |
|
|
(1,277 |
) |
|
|
(18,264 |
) |
|
|
(4,161 |
) |
|
Other |
|
(149 |
) |
|
|
(160 |
) |
|
|
(447 |
) |
|
|
(484 |
) |
|
Net cash used in financing activities |
|
(157,407 |
) |
|
|
(130,092 |
) |
|
|
(416,296 |
) |
|
|
(318,740 |
) |
|
Increase in cash and restricted cash |
|
159,437 |
|
|
|
28,583 |
|
|
|
354,800 |
|
|
|
16,408 |
|
|
Cash and restricted cash at beginning of period |
|
282,283 |
|
|
|
79,208 |
|
|
|
86,920 |
|
|
|
91,383 |
|
|
Cash and restricted cash at end of period |
$ |
441,720 |
|
|
$ |
107,791 |
|
|
$ |
441,720 |
|
|
$ |
107,791 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Supplemental Non-GAAP Financial Measures
Adjusted EBITDA
This press release includes the non-GAAP financial measure of Adjusted EBITDA. Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. “GAAP” means Generally Accepted Accounting Principles in
Adjusted EBITDA should not be considered an alternative to, or more meaningful than, net income or net cash provided by operating activities as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components of understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure. Adjusted EBITDA may not be comparable to similarly titled measures of another company because all companies may not calculate Adjusted EBITDA in the same manner. The following table presents the calculation of Adjusted EBITDA and the reconciliation of Adjusted EBITDA to the GAAP financial measures of net income and net cash provided by operating activities, respectively, that are of a historical nature. Where references are pro forma, forward-looking, preliminary or prospective in nature, and not based on historical fact, the table does not provide a reconciliation. The Company could not provide such reconciliation without undue hardship because such Adjusted EBITDA numbers are estimations, approximations and/or ranges. In addition, it would be difficult for the Company to present a detailed reconciliation on account of many unknown variables for the reconciling items, including future income taxes, full-cost ceiling impairments, unrealized gains or losses on derivatives and gains or losses on asset sales and impairment. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Adjusted EBITDA – |
||||||||||||
|
Three Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||
(In thousands) |
2022 |
|
2022 |
|
2021 |
|
||||||
Unaudited Adjusted EBITDA Reconciliation to Net Income: |
|
|
|
|
|
|
||||||
Net income attributable to |
$ |
337,572 |
|
|
$ |
415,718 |
|
|
$ |
203,628 |
|
|
Net income attributable to non-controlling interest in subsidiaries |
|
16,456 |
|
|
|
20,477 |
|
|
|
14,434 |
|
|
Net income |
|
354,028 |
|
|
|
436,195 |
|
|
|
218,062 |
|
|
Interest expense |
|
15,996 |
|
|
|
18,492 |
|
|
|
17,989 |
|
|
Total income tax provision (benefit) |
|
113,941 |
|
|
|
135,960 |
|
|
|
(6,701 |
) |
|
Depletion, depreciation and amortization |
|
118,870 |
|
|
|
120,024 |
|
|
|
89,061 |
|
|
Accretion of asset retirement obligations |
|
679 |
|
|
|
517 |
|
|
|
518 |
|
|
Unrealized (gain) loss on derivatives |
|
(43,097 |
) |
|
|
(30,430 |
) |
|
|
(9,049 |
) |
|
Non-cash stock-based compensation expense |
|
3,810 |
|
|
|
4,063 |
|
|
|
2,967 |
|
|
Net loss on asset sales and impairment |
|
1,113 |
|
|
|
— |
|
|
|
251 |
|
|
(Income) expense related to contingent consideration and other |
|
(2,288 |
) |
|
|
4,889 |
|
|
|
— |
|
|
Consolidated Adjusted EBITDA |
|
563,052 |
|
|
|
689,710 |
|
|
|
313,098 |
|
|
Adjusted EBITDA attributable to non-controlling interest in subsidiaries |
|
(23,322 |
) |
|
|
(25,916 |
) |
|
|
(19,273 |
) |
|
Adjusted EBITDA attributable to |
$ |
539,730 |
|
|
$ |
663,794 |
|
|
$ |
293,825 |
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||
(In thousands) |
2022 |
|
2022 |
|
2021 |
|
||||||
Unaudited Adjusted EBITDA Reconciliation to Net Cash Provided by Operating Activities: |
|
|
|
|
|
|
||||||
Net cash provided by operating activities |
$ |
556,960 |
|
|
$ |
646,302 |
|
|
$ |
291,231 |
|
|
Net change in operating assets and liabilities |
|
(9,774 |
) |
|
|
(15,971 |
) |
|
|
4,666 |
|
|
Interest expense, net of non-cash portion |
|
15,013 |
|
|
|
18,229 |
|
|
|
17,201 |
|
|
Current income tax provision |
|
270 |
|
|
|
36,261 |
|
|
|
— |
|
|
Expense related to contingent consideration and other |
|
583 |
|
|
|
4,889 |
|
|
|
— |
|
|
Adjusted EBITDA attributable to non-controlling interest in subsidiaries |
|
(23,322 |
) |
|
|
(25,916 |
) |
|
|
(19,273 |
) |
|
Adjusted EBITDA attributable to |
$ |
539,730 |
|
|
$ |
663,794 |
|
|
$ |
293,825 |
|
|
|
|
|
|
|
|
|
||||||
Adjusted EBITDA – San Mateo ( |
|||||||||
|
Three Months Ended |
|
|||||||
|
|
|
|
|
|
|
|||
(In thousands) |
2022 |
|
2022 |
|
2021 |
|
|||
Unaudited Adjusted EBITDA Reconciliation to Net Income: |
|
|
|
|
|
|
|||
Net income |
$ |
33,584 |
|
$ |
41,789 |
|
$ |
29,454 |
|
Depletion, depreciation and amortization |
|
8,258 |
|
|
8,041 |
|
|
7,609 |
|
Interest expense |
|
4,570 |
|
|
2,990 |
|
|
2,208 |
|
Accretion of asset retirement obligations |
|
70 |
|
|
69 |
|
|
61 |
|
Net loss on impairment and one-time plant payment |
|
1,113 |
|
|
— |
|
|
1,500 |
|
Adjusted EBITDA |
$ |
47,595 |
|
$ |
52,889 |
|
$ |
40,832 |
|
|
|
|
|
|
|
|
|||
|
Three Months Ended |
|
||||||||
|
|
|
|
|
|
|
||||
(In thousands) |
2022 |
|
2022 |
|
2021 |
|
||||
Unaudited Adjusted EBITDA Reconciliation to Net Cash Provided by Operating Activities: |
|
|
|
|
|
|
||||
Net cash provided by operating activities |
$ |
38,333 |
|
$ |
49,902 |
|
$ |
44,164 |
|
|
Net change in operating assets and liabilities |
|
4,948 |
|
|
250 |
|
|
(6,798 |
) |
|
Interest expense, net of non-cash portion |
|
4,314 |
|
|
2,737 |
|
|
1,966 |
|
|
One-time plant payment |
|
— |
|
|
— |
|
|
1,500 |
|
|
Adjusted EBITDA |
$ |
47,595 |
|
$ |
52,889 |
|
$ |
40,832 |
|
|
|
|
|
|
|
|
|
||||
Adjusted Net Income and Adjusted Earnings Per Diluted Common Share
This press release includes the non-GAAP financial measures of adjusted net income and adjusted earnings per diluted common share. These non-GAAP items are measured as net income attributable to
|
Three Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||
|
2022 |
|
2022 |
|
2021 |
|
||||||
(In thousands, except per share data) |
|
|
|
|
|
|
||||||
Unaudited Adjusted Net Income and Adjusted Earnings Per Share Reconciliation to Net Income: |
|
|
|
|
|
|
||||||
Net income attributable to |
$ |
337,572 |
|
|
$ |
415,718 |
|
|
$ |
203,628 |
|
|
Total income tax provision (benefit) |
|
113,941 |
|
|
|
135,960 |
|
|
|
(6,701 |
) |
|
Income attributable to |
|
451,513 |
|
|
|
551,678 |
|
|
|
196,927 |
|
|
Less non-recurring and unrealized charges to income before taxes: |
|
|
|
|
|
|
||||||
Unrealized gain on derivatives |
|
(43,097 |
) |
|
|
(30,430 |
) |
|
|
(9,049 |
) |
|
Net loss on asset sales and impairment |
|
1,113 |
|
|
|
— |
|
|
|
251 |
|
|
(Income) expense related to contingent consideration and other |
|
(2,288 |
) |
|
|
4,889 |
|
|
|
— |
|
|
Adjusted income attributable to |
|
407,241 |
|
|
|
526,137 |
|
|
|
188,129 |
|
|
Income tax expense(1) |
|
85,521 |
|
|
|
110,489 |
|
|
|
39,507 |
|
|
Adjusted net income attributable to |
$ |
321,720 |
|
|
$ |
415,648 |
|
|
$ |
148,622 |
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding - basic |
|
118,136 |
|
|
|
118,103 |
|
|
|
117,008 |
|
|
Dilutive effect of options and restricted stock units |
|
1,714 |
|
|
|
1,800 |
|
|
|
2,189 |
|
|
Weighted average common shares outstanding - diluted |
|
119,850 |
|
|
|
119,903 |
|
|
|
119,197 |
|
|
Adjusted earnings per share attributable to shareholders (non-GAAP) |
|
|
|
|
|
|
||||||
Basic |
$ |
2.72 |
|
|
$ |
3.52 |
|
|
$ |
1.27 |
|
|
Diluted |
$ |
2.68 |
|
|
$ |
3.47 |
|
|
$ |
1.25 |
|
|
|
|
|
|
|
|
|
||||||
(1) Estimated using federal statutory tax rate in effect for the period. |
|
|||||||||||
Adjusted Free Cash Flow
This press release includes the non-GAAP financial measure of adjusted free cash flow. This non-GAAP item is measured, on a consolidated basis for the Company and for San Mateo, as net cash provided by operating activities, adjusted for changes in working capital and cash performance incentives that are not included as operating cash flows, less cash flows used for capital expenditures, adjusted for changes in capital accruals. On a consolidated basis, these numbers are also adjusted for the cash flows related to non-controlling interest in subsidiaries that represent cash flows not attributable to Matador shareholders. Adjusted free cash flow should not be considered an alternative to, or more meaningful than, net cash provided by operating activities as determined in accordance with GAAP or an indicator of the Company’s liquidity. Adjusted free cash flow is used by the Company, securities analysts and investors as an indicator of the Company’s ability to manage its operating cash flow, internally fund its
The table below reconciles adjusted free cash flow to its most directly comparable GAAP measure of net cash provided by operating activities. All references to Matador’s adjusted free cash flow are those values attributable to Matador shareholders after giving effect to adjusted free cash flow attributable to third-party non-controlling interests, including in San Mateo.
Adjusted Free Cash Flow - |
||||||||||||
|
Three Months Ended |
|
||||||||||
|
|
|
|
|
|
|
||||||
(In thousands) |
2022 |
|
2022 |
|
2021 |
|
||||||
Net cash provided by operating activities |
$ |
556,960 |
|
|
$ |
646,302 |
|
|
$ |
291,231 |
|
|
Net change in operating assets and liabilities |
|
(9,774 |
) |
|
|
(15,971 |
) |
|
|
4,666 |
|
|
San Mateo discretionary cash flow attributable to non-controlling interest in subsidiaries(1) |
|
(21,208 |
) |
|
|
(24,574 |
) |
|
|
(18,309 |
) |
|
Performance incentives received from Five Point |
|
— |
|
|
|
— |
|
|
|
6,000 |
|
|
Total discretionary cash flow |
|
525,978 |
|
|
|
605,757 |
|
|
|
283,588 |
|
|
|
|
|
|
|
|
|
||||||
Drilling, completion and equipping capital expenditures |
|
155,560 |
|
|
|
182,064 |
|
|
|
106,761 |
|
|
Midstream capital expenditures |
|
23,103 |
|
|
|
16,318 |
|
|
|
15,130 |
|
|
Expenditures for other property and equipment |
|
407 |
|
|
|
58 |
|
|
|
220 |
|
|
Net change in capital accruals |
|
90,994 |
|
|
|
(38,250 |
) |
|
|
28,189 |
|
|
San Mateo accrual-based capital expenditures related to non-controlling interest in subsidiaries(2) |
|
(13,188 |
) |
|
|
(8,200 |
) |
|
|
(14,185 |
) |
|
Total accrual-based capital expenditures(3) |
|
256,876 |
|
|
|
151,990 |
|
|
|
136,115 |
|
|
Adjusted free cash flow |
$ |
269,102 |
|
|
$ |
453,767 |
|
|
$ |
147,473 |
|
|
|
|
|
|
|
|
|
||||||
(1) |
Represents Five Point Energy LLC’s (“Five Point”) |
|
(2) |
Represents Five Point’s |
|
(3) |
Represents drilling, completion and equipping costs, Matador’s share of San Mateo capital expenditures plus |
Adjusted Free Cash Flow - San Mateo ( |
||||||||||
|
Three Months Ended |
|
||||||||
|
|
|
|
|
|
|
||||
(In thousands) |
2022 |
|
2022 |
|
2021 |
|
||||
Net cash provided by San Mateo operating activities |
$ |
38,333 |
|
$ |
49,902 |
|
$ |
44,164 |
|
|
Net change in San Mateo operating assets and liabilities |
|
4,948 |
|
|
250 |
|
|
(6,798 |
) |
|
Total San Mateo discretionary cash flow |
|
43,281 |
|
|
50,152 |
|
|
37,366 |
|
|
|
|
|
|
|
|
|
||||
San Mateo capital expenditures |
|
23,059 |
|
|
16,616 |
|
|
14,900 |
|
|
Net change in San Mateo capital accruals |
|
3,855 |
|
|
119 |
|
|
14,048 |
|
|
San Mateo accrual-based capital expenditures |
|
26,914 |
|
|
16,735 |
|
|
28,948 |
|
|
San Mateo adjusted free cash flow |
$ |
16,367 |
|
$ |
33,417 |
|
$ |
8,418 |
|
|
|
|
|
|
|
|
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20221025005876/en/
Vice President - Investor Relations
(972) 371-5225
investors@matadorresources.com
Source:
FAQ
What were Matador Resources' production results for Q3 2022?
How much debt has Matador Resources reduced?
What is the new dividend amount for Matador Resources?
What was the net income reported by Matador Resources for Q3 2022?
How did Matador Resources' credit rating change?
