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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ________________________________________________________ 
FORM 10-Q
 _________________________________________________________  
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to            
Commission File Number 001-35410
 _________________________________________________________  
Matador Resources Company
(Exact name of registrant as specified in its charter)
  _________________________________________________________ 
Texas27-4662601
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
5400 LBJ Freeway, Suite 1500
Dallas, Texas
75240
(Address of principal executive offices)(Zip Code)
(972) 371-5200
(Registrant’s telephone number, including area code)
 _________________________________________________________  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareMTDRNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes      No
As of July 28, 2020, there were 116,840,409 shares of the registrant’s common stock, par value $0.01 per share, outstanding.


Table of Contents
MATADOR RESOURCES COMPANY
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2020
TABLE OF CONTENTS
 Page


Table of Contents
Part I — FINANCIAL INFORMATION
Item 1. Financial Statements — Unaudited
Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In thousands, except par value and share data)
June 30,
2020
December 31,
2019
ASSETS
Current assets
Cash$20,573  $40,024  
Restricted cash22,935  25,104  
Accounts receivable
Oil and natural gas revenues57,854  95,228  
Joint interest billings64,037  67,546  
Other21,623  26,639  
Derivative instruments13,304    
Lease and well equipment inventory11,940  10,744  
Prepaid expenses and other current assets15,017  13,207  
Total current assets227,283  278,492  
Property and equipment, at cost
Oil and natural gas properties, full-cost method
Evaluated5,041,026  4,557,265  
Unproved and unevaluated983,391  1,126,992  
Midstream properties773,314  643,903  
Other property and equipment28,233  27,021  
Less accumulated depletion, depreciation and amortization(3,163,037) (2,655,586) 
Net property and equipment3,662,927  3,699,595  
Other assets
Derivative instruments6,634    
Deferred income taxes35,694    
Other long-term assets 68,595  91,589  
Total assets$4,001,133  $4,069,676  
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$15,747  $25,230  
Accrued liabilities189,115  200,695  
Royalties payable60,995  85,193  
Amounts due to affiliates862  19,606  
Derivative instruments14,073  1,897  
Advances from joint interest owners19,931  14,837  
Amounts due to joint ventures  486  
Other current liabilities44,046  51,828  
Total current liabilities344,769  399,772  
Long-term liabilities
Borrowings under Credit Agreement385,000  255,000  
Borrowings under San Mateo Credit Facility320,000  288,000  
Senior unsecured notes payable1,040,207  1,039,416  
Asset retirement obligations37,997  35,592  
Derivative instruments5,984  1,984  
Deferred income taxes11,090  37,329  
Other long-term liabilities37,585  43,131  
Total long-term liabilities1,837,863  1,700,452  
Commitments and contingencies (Note 9)
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 capital2,020,298  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’ equity1,643,832  1,833,654  
Non-controlling interest in subsidiaries174,669  135,798  
Total shareholders’ equity1,818,501  1,969,452  
Total liabilities and shareholders’ equity$4,001,133  $4,069,676  
The accompanying notes are an integral part of these financial statements.
3

Table of Contents

Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
(In thousands, except per share data)
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2020201920202019
Revenues
Oil and natural gas revenues$118,767  $211,060  $316,681  $404,329  
Third-party midstream services revenues14,668  14,359  30,498  26,197  
Sales of purchased natural gas13,981  8,963  24,525  20,194  
Lease bonus - mineral acreage4,062    4,062    
Realized gain on derivatives44,110  1,165  54,977  4,435  
Unrealized (loss) gain on derivatives(132,668) 6,157  3,762  (39,562) 
Total revenues62,920  241,704  434,505  415,593  
Expenses
Production taxes, transportation and processing18,797  21,542  40,513  41,207  
Lease operating26,162  26,351  57,072  57,514  
Plant and other midstream services operating9,780  8,422  19,744  17,738  
Purchased natural gas10,922  8,172  18,980  18,806  
Depletion, depreciation and amortization93,350  80,132  184,057  156,999  
Accretion of asset retirement obligations495  420  971  834  
Full-cost ceiling impairment 324,001    324,001    
General and administrative14,723  19,876  30,945  38,166  
Total expenses498,230  164,915  676,283  331,264  
Operating (loss) income(435,310) 76,789  (241,778) 84,329  
Other income (expense)
Net loss on asset sales and impairment(2,632) (368) (2,632) (368) 
Interest expense(18,297) (18,068) (38,109) (35,997) 
Other income (expense)473  (423) 1,793  (532) 
Total other expense(20,456) (18,859) (38,948) (36,897) 
(Loss) income before income taxes(455,766) 57,930  (280,726) 47,432  
Income tax (benefit) provision
Deferred(109,823) 12,858  (69,866) 11,845  
Total income tax (benefit) provision(109,823) 12,858  (69,866) 11,845  
Net (loss) income(345,943) 45,072  (210,860) 35,587  
Net income attributable to non-controlling interest in subsidiaries(7,473) (8,320) (16,827) (15,782) 
Net (loss) income attributable to Matador Resources Company shareholders$(353,416) $36,752  $(227,687) $19,805  
(Loss) earnings per common share
Basic$(3.04) $0.32  $(1.96) $0.17  
Diluted$(3.04) $0.31  $(1.96) $0.17  
Weighted average common shares outstanding
Basic116,071  116,571  115,977  116,469  
Diluted116,071  116,903  115,977  116,839  
The accompanying notes are an integral part of these financial statements.
4

Table of Contents
Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED
(In thousands)
For the Three and Six Months Ended June 30, 2020
Total shareholders’ equity attributable to Matador Resources Company
Non-controlling interest in subsidiariesTotal shareholders’ equity
 Common StockAdditional
paid-in capital
Accumulated deficitTreasury Stock
 SharesAmountSharesAmount
Balance at January 1, 2020116,644  $1,166  $1,981,014  $(148,500) 1  $(26) $1,833,654  $135,798  $1,969,452  
Issuance of common stock pursuant to employee stock compensation plan3      —  —  —  —  —    
Issuance of common stock pursuant to directors’ and advisors’ compensation plan2      —  —  —    —    
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    (24) —  —  —  (24) —  (24) 
Liability-based stock option awards settled in equity22  1  297  —  —  —  298  —  298  
Restricted stock forfeited—  —  —  —  106  (1,267) (1,267) —  (1,267) 
Contribution related to formation of San Mateo I, net of tax of $3.1 million (see Note 6)
—  —  11,613  —  —  —  11,613  —  11,613  
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, net of tax of $4.3 million (see Note 6)
—  —  16,280  —  —  —  16,280  29,394  45,674  
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries—  —  —  —  —  —  —  (11,515) (11,515) 
Current period net income—  —  —  125,729  —  —  125,729  9,354  135,083  
Balance at March 31, 2020116,671  1,167  2,014,246  (22,771) 107  (1,293) 1,991,349  163,031  2,154,380  
Issuance of common stock pursuant to employee stock compensation plan230  2  (2) —  —  —  —  —    
Issuance of common stock pursuant to directors’ and advisors’ compensation plan83  1  (1) —  —  —  —  —  —  
Stock-based compensation expense related to equity-based awards including amounts capitalized—  —  4,103  —  —  —  4,103  —  4,103  
Restricted stock forfeited—  —  —  —  33  (156) (156) —  (156) 
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries, net of tax of $0.5 million (see Note 6)
—  —  1,952  —  —  —  1,952  14,700  16,652  
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries—  —  —  —  —  —  —  (10,535) (10,535) 
Current period net (loss) income—  —  —  (353,416) —  —  (353,416) 7,473  (345,943) 
Balance at June 30, 2020116,984  $1,170  $2,020,298  $(376,187) 140  $(1,449) $1,643,832  $174,669  $1,818,501  




The accompanying notes are an integral part of these financial statements.
5

Table of Contents

Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED
(In thousands)
For the Three and Six Months Ended June 30, 2019
Total shareholders’ equity attributable to Matador Resources Company
Non-controlling interest in subsidiariesTotal shareholders’ equity
 Common StockAdditional
paid-in capital
Accumulated deficitTreasury Stock
 SharesAmountSharesAmount
Balance at January 1, 2019116,375  $1,164  $1,924,408  $(236,277) 21  $(415) $1,688,880  $90,777  $1,779,657  
Issuance of common stock pursuant to employee stock compensation plan6      —  —  —  —  —    
Issuance of common stock pursuant to directors’ and advisors’ compensation plan3      —  —  —    —    
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 settlements210  2  3,109  —  —  —  3,111  —  3,111  
Restricted stock forfeited—  —  —  —  184  (3,170) (3,170) —  (3,170) 
Contribution related to formation of San Mateo I, net of tax of $3.1 million (see Note 6)
—  —  11,613  —  —  —  11,613  —  11,613  
Contribution of property related to formation of San Mateo II (see Note 6)—  —  (506) —  —  —  (506) 506    
Contributions from non-controlling interest owners of less-than-wholly-owned subsidiaries—  —  2,040  —  —  —  2,040  10,291  12,331  
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries—  —  —  —  —  —  —  (8,330) (8,330) 
Current period net (loss) income—  —  —  (16,947) —  —  (16,947) 7,462  (9,485) 
Balance at March 31, 2019116,594  1,166  1,946,466  (253,224) 205  (3,585) 1,690,823  100,706  1,791,529  
Issuance of common stock pursuant to employee stock compensation plan220  2  (2) —  —  —  —  —    
Issuance of common stock pursuant to directors’ and advisors’ compensation plan42  1  (1) —  —  —    —    
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 settlements10    189  —  —