Matador Resources Company’s business goal is to increase shareholder value by building reserves, production and cash flows at an attractive return on invested capital. We plan to achieve our goal by executing the following strategies:

• Focus on exploration and development on our Eagle Ford Shale and Haynesville Shale assets. We have core acreage positions in these plays where we plan to invest the majority of our capital in 2012. The majority of our holdings was held by production at December 31, 2011, and was not burdened by near-term lease expirations, so we have the flexibility to develop these properties in a disciplined manner, maximizing the resource recovery from these assets.


• Identify, evaluate and exploit oil plays for a more balanced portfolio. Most of our proved reserves are classified as natural gas, so we have been evaluating oil plays to take advantage of opportunities that would enhance our assets. We particularly believe our interests in the Eagle Ford Shale play will provide us with opportunities to find and develop oil and liquids.


• Pursue opportunistic acquisitions. We intend to continue to acquire unproved and unevaluated acreage, drilling prospects and low-cost producing properties in our core areas where we have operational control and can enhance value and performance. We plan to make acquisitions with attractive terms that complement our growth and help us achieve economies of scale.


• Maintain our financial discipline. We leverage advanced technologies and integrate the knowledge, judgment and experience of our management and technical teams. When we are not the operator, we work closely with other operators to ensure financial guidelines are followed and cost-focused operations and results are achieved.


• Maintain financial flexibility. A strong financial foundation gives us the ability to execute our business plan and to seek and complete acquisitions expeditiously.


• Make health, safety and the environment a top priority. We are committed to protecting the environment, people and assets in our operational areas.


• Maintain proactive, ongoing relationships with others in the industry. We maintain proactive working relationships with industry operators and vendors. This enhances our understanding of shale plays and allows us to leverage their expertise without a substantial capital commitment. We also participate in notable industry shale consortia and in various professional organizations.