Matador Resources Company’s business goal is to increase shareholder value by building oil and natural gas reserves, production and cash flows at an attractive return on invested capital. We plan to achieve our goal by, among other items, executing the following business strategies:
- Focus exploration and development activities primarily on unconventional plays. We have established a core acreage position in the Permian Basin in Southeast New Mexico and West Texas, which we believe is prospective for the Wolfcamp, Bone Spring and other oil and liquids-rich targets. We also have established a core acreage position in the Eagle Ford shale play in South Texas. This acreage position provides us the flexibility to develop our Eagle Ford properties in a disciplined and economical manner in order to maximize the resource recovery from these assets.
- Identify, evaluate and develop additional oil and natural gas plays as necessary to maintain a balanced portfolio. In late 2010, we began to focus on oil and liquids-rich shale plays to create a more balanced portfolio of oil and natural gas producing properties. We believe our interests in the Wolfcamp and Bone Spring plays and the Eagle Ford shale play will enable us to maintain a more balanced commodity portfolio through the drilling of locations that are prospective for oil and liquids. We also have an established acreage position in the Haynesville shale play that is prospective for natural gas, with approximately 6,800 of our net acres, at December 31, 2014, located in what we believe is the core area of the Haynesville play.
- Continue to improve operational and cost efficiencies. We focus on optimizing the development of our resource base by seeking ways to maximize our recovery per well relative to the cost incurred and to minimize our operating cost per BOE produced. We apply an analytical approach to track and monitor the effectiveness of our drilling and completion techniques and service providers.
- Maintain financial discipline. We seek to maintain a strong balance sheet and have conducted our drilling and completion operations since inception using both equity and debt capital contributions from our investors, revolving borrowings under our credit facility and cash flows from our operations.
- Pursue opportunistic acquisitions. We believe our management team’s familiarity with our key operating areas and its contacts with the operators and mineral owners in those regions enable us to identify high-return opportunities at attractive prices. We actively pursue opportunities to acquire unproved and unevaluated acreage, drilling prospects and low-cost producing properties within our core areas of operations where we have operational control and can enhance value and performance.