Matador Resources Company (Exact name of registrant as specified in its charter)

Transcription

1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported) October 1, 2015 Matador Resources Company (Exact name of registrant as specified in its charter) Texas (State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.) 5400 LBJ Freeway, Suite 1500, Dallas, Texas (Address of principal executive offices) (Zip Code) Registrant s telephone number, including area code: (972) Not Applicable (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: o Written communications pursuant to Rule 425 under the Securities Act (17 CFR ) o o o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR e-4(c))

2 Item 1.01 Entry into a Material Definitive Agreement. On October 1, 2015, in connection with the sale of certain natural gas gathering and processing assets located in Loving County, Texas (the Sale ) by Matador Resources Company (the Company ), the Company entered into a First Supplemental Indenture (the First Supplemental Indenture ) with Wells Fargo Bank, National Association, as trustee (the Trustee ), which supplements the Indenture, dated as of April 14, 2015 (the Indenture ), among the Company, the Guarantors named therein and the Trustee. Pursuant to the First Supplemental Indenture, DLK Wolf Midstream, LLC, a wholly-owned subsidiary of the Company ( DLK ), was released as a party to and as a guarantor under the Indenture, effective upon the consummation of the Sale. The foregoing description of the First Supplemental Indenture does not purport to be complete and is qualified in its entirety by reference to the First Supplemental Indenture, which is attached hereto as Exhibit 4.1 and is incorporated herein by reference. Item 7.01 Regulation FD Disclosure. On October 1, 2015, the Company issued a press release announcing the consummation of the Sale. The Sale was effected pursuant to the sale of all of the outstanding membership interests in DLK. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K. The Company expects to make presentations concerning its business to potential investors. The materials to be utilized during the presentations are furnished as Exhibit 99.2 hereto and incorporated herein by reference. The information furnished pursuant to this Item 7.01, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description of Exhibit 4.1 First Supplemental Indenture, dated as of October 1, 2015, by and among Matador Resources Company, DLK Wolf Midstream, LLC, the Guarantors named therein, and Wells Fargo Bank, National Association, as trustee Press Release, dated October 1, Presentation Materials.

3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MATADOR RESOURCES COMPANY Date: October 5, 2015 By: /s/ Craig N. Adams Name: Craig N. Adams Title: Executive Vice President

4 Exhibit No. Description of Exhibit Exhibit Index 4.1 First Supplemental Indenture, dated as of October 1, 2015, by and among Matador Resources Company, DLK Wolf Midstream, LLC, the Guarantors named therein, and Wells Fargo Bank, National Association, as trustee Press Release, dated October 1, Presentation Materials.

5 Exhibit 4.1 MATADOR RESOURCES COMPANY FIRST SUPPLEMENTAL INDENTURE This FIRST SUPPLEMENTAL INDENTURE, dated as of October 1, 2015 (the First Supplemental Indenture ), among DLK Wolf Midstream, LLC, a Texas limited liability company ( DLK ), Matador Resources Company, a Texas corporation (the Company ), each of the Guarantors (as defined in the Indenture referred to herein) party hereto and Wells Fargo Bank, National Association (the Trustee ). W I T N E S S E T H : WHEREAS, the Company, as issuer, certain of its Subsidiaries (including DLK), as Guarantors, and the Trustee heretofore executed and delivered an Indenture, dated as of April 14, 2015 (the Indenture ), providing for the issuance of the Company s 6.875% Senior Notes due 2023; Indenture; WHEREAS, the Company issued $400,000,000 aggregate principal amount of Initial Securities pursuant to the WHEREAS, DLK is a party to and a Guarantor under the Indenture; WHEREAS, Section 10.9 of the Indenture permits the release of the Subsidiary Guarantee of a Guarantor in connection with the sale or other disposition of the Capital Stock of such Guarantor other than to the Company or another Guarantor, if such transaction at the time of such disposition does not violate Section 4.7 of the Indenture and such Guarantor ceases to be a Restricted Subsidiary of the Company as a result of such transaction; and WHEREAS, the Company proposes to sell the Capital Stock of DLK after which DLK will no longer be a Restricted Subsidiary of the Company and such sale will not violate Section 4.7 of the Indenture; WHEREAS, pursuant to Section 9.1 of the Indenture, the Company, the Guarantors (including DLK) and the Trustee are authorized to amend or supplement the Indenture without the consent of any Holder to release DLK as a Guarantor and from its obligations under its Subsidiary Guarantee thereunder; NOW THEREFORE, to comply with the provisions of the Indenture and in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, DLK, the Company, the Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Securities as follows: 1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture. 2. RELEASE OF GUARANTOR. On the date hereof and effective upon the disposition of Capital Stock of DLK such that it is no longer a Subsidiary of the Company, the

6 parties agree that DLK is released as a party to and as a Guarantor under the Indenture and that DLK has no further obligations or liabilities under its Subsidiary Guarantee or the provisions of the Indenture. 3. SUPPLEMENTAL INDENTURE INCORPORATED INTO INDENTURE. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This First Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of a Security heretofore or hereafter authenticated and delivered shall be bound hereby. 3. NEW YORK LAW TO GOVERN. THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE AND ENFORCE THIS FIRST SUPPLEMENTAL INDENTURE. 4. COUNTERPARTS. The parties may sign any number of copies of this First Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. This First Supplemental Indenture may be executed in multiple counterparts which, when taken together, shall constitute one instrument. The exchange of copies of this First Supplemental Indenture and of signatures by facsimile or PDF transmission shall constitute effective execution and delivery of this First Supplemental Indenture as to the parties hereto and may be used in lieu of the original First Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes. 5. EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof. 6. THE TRUSTEE. Except as otherwise expressly provided herein, no duties, responsibilities or liabilities are assumed, or shall be construed to be assumed, by the Trustee by reason of this First Supplemental Indenture. This First Supplemental Indenture is executed and accepted by the Trustee subject to all the terms and conditions set forth in the Indenture with the same force and effect as if those terms and conditions were repeated at length herein and made applicable to the Trustee with respect hereto. [signature page follows] 2

7 IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed and attested, all as of the date first above written. MATADOR RESOURCES COMPANY By: /s/ Matthew V. Hairford Name: Matthew V. Hairford Title: President DLK WOLF MIDSTREAM, LLC By: /s/ Matthew V. Hairford Name: Matthew V. Hairford Title: President GUARANTORS: DELAWARE WATER MANAGEMENT COMPANY, LLC DLK BLACK RIVER MIDSTREAM, LLC LONGWOOD GATHERING AND DISPOSAL SYSTEMS GP, INC. LONGWOOD MIDSTREAM SOUTH TEXAS, LLC LONGWOOD MIDSTREAM SOUTHEAST, LLC LONGWOOD MIDSTREAM DELAWARE, LLC MATADOR PRODUCTION COMPANY MRC ENERGY COMPANY MRC DELAWARE RESOURCES, LLC MRC ENERGY SOUTHEAST COMPANY, LLC MRC ENERGY SOUTH TEXAS COMPANY, LLC MRC PERMIAN COMPANY MRC ROCKIES COMPANY SOUTHEAST WATER MANAGEMENT COMPANY, LLC By: /s/ Matthew V. Hairford Name: Matthew V. Hairford Title: President Signature Page First Supplemental Indenture

8 LONGWOOD GATHERING AND DISPOSAL SYSTEMS, LP By: Longwood Gathering and Disposal Systems GP, Inc., its general partner By: /s/ Matthew V. Hairford Name: Matthew V. Hairford Title: President Signature Page First Supplemental Indenture

9 WELLS FARGO BANK, NATIONAL ASSOCIATION, as Trustee By: /s/ Patrick Giordano Name: Patrick Giordano Title: Vice President Signature Page First Supplemental Indenture

10 Exhibit 99.1 MATADOR RESOURCES COMPANY ANNOUNCES CLOSING OF SALE OF LOVING COUNTY GAS GATHERING AND PROCESSING ASSETS DALLAS, Texas, October 1, Matador Resources Company (NYSE: MTDR) ( Matador or the Company ), an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources, with an emphasis on oil and natural gas shale and other unconventional plays and with a current focus on its Permian (Delaware) Basin operations in Southeast New Mexico and West Texas, today closed the previously announced sale of its wholly-owned subsidiary that owns certain natural gas gathering and processing assets in the Delaware Basin in Loving County, Texas (the Loving County System ), to a subsidiary of EnLink Midstream Partners, LP (NYSE: ENLK) ( EnLink ). The Loving County System includes a cryogenic natural gas processing plant with approximately 35 million cubic feet per day of inlet capacity (the Processing Plant ) and approximately six miles of high-pressure gathering pipeline which connects a Matador-owned gathering system to the Processing Plant. Pursuant to the terms of the transaction, a subsidiary of EnLink paid Matador consideration of approximately $143 million excluding customary purchase price adjustments. In conjunction with the sale of the Loving County System, Matador is dedicating its current leasehold interests in Loving County pursuant to a 15-year, fixed-fee gathering and processing agreement and providing a volume commitment in exchange for priority one service. Matador can, at its option, dedicate any future leasehold acquisitions in Loving County to a subsidiary of EnLink. In addition, Matador is retaining its natural gas gathering system up to a central delivery point and its other midstream assets in the area, including oil and water gathering systems and salt water disposal wells. With the closing of the transaction, Matador has a net debt to trailing 12-month Adjusted EBITDA ratio of approximately 1.0x and has over $500 million in liquidity including nothing drawn against its revolving credit facility borrowing base of $375 million. Thus, the Company has ample liquidity and cash flow to execute its capital plans in 2015 and 2016 and to consider other opportunities in its various operating areas that may enhance Matador s asset base. About Matador Resources Company Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Permian (Delaware) Basin in Southeast New Mexico and West Texas. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. For more information, visit Matador Resources Company at 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 1

11 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 and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results and future events could differ materially from those anticipated in such statements, and such forwardlooking 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; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions, including the HEYCO merger; availability of sufficient capital to execute its business plan, including from future cash flows, increases in its borrowing base and otherwise; weather and environmental conditions; and other important 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 SEC filings, including the Risk Factors section of Matador's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. Contact Information Mac Schmitz Investor Relations (972) mschmitz@matadorresources.com 2

12 O c to b e r In v e s to rp re s e n ta tio n N Y S E :M T D R E x h ib it9 9.2

13 2 D is c lo s u re S ta te m e n ts S a fe H a rb o rs ta te m e n t T h is p re s e n ta tio n a n d s ta te m e n ts m a d e b y re p re s e n ta tiv e s o fm a ta d o rr e s o u rc e s C o m p a n y ( M a ta d o r o rth e C o m p a n y )d u rin g th e c o u rs e o fth is p re s e n ta tio n in c lu d e fo rw a rd -lo o k in g s ta te m e n ts w ith in th e m e a n in g o fs e c tio n 2 7 A o fth e S e c u ritie s A c to f ,a s a m e n d e d,a n d S e c tio n 2 1 E o fth e S e c u ritie s E x c h a n g e A c to f ,a s a m e n d e d. F o rw a rd -lo o k in g s ta te m e n ts a re s ta te m e n ts re la te d to fu tu re,n o tp a s t,e v e n ts.f o rw a rd -lo o k in g s ta te m e n ts a re b a s e d o n c u re n te x p e c ta tio n s a n d in c lu d e a n y s ta te m e n th a td o e s n o td ire c tly re la te to a c u re n to rh is to ric a l fa c t.in th is c o n te x t,fo rw a rd -lo o k in g s ta te m e n ts o fte n a d d re s s e x p e c te d fu tu re b u s in e s s a n d fin a n c ia l p e rfo rm a n c e,a n d o fte n c o n ta in w o rd s s u c h a s c o u ld, b e lie v e, w o u ld, a n tic ip a te, in te n d, e s tim a te, e x p e c t, m a y, s h o u ld, c o n tin u e, p la n, p re d ic t, p o te n tia l, p ro je c t a n d s im ila re x p re s s io n s th a ta re in te n d e d to id e n tify fo rw a rd -lo o k in g s ta te m e n ts,a lth o u g h n o ta l fo rw a rd -lo o k in g s ta te m e n ts c o n ta in s u c h id e n tify in g w o rd s.a c tu a l re s u lts a n d fu tu re e v e n ts c o u ld d ife rm a te ria ly fro m th o s e a n tic ip a te d in s u c h s ta te m e n ts,a n d s u c h fo rw a rd -lo o k in g s ta te m e n ts m a y n o tp ro v e to b e a c c u ra te.t h e s e fo rw a rd -lo o k in g s ta te m e n ts in v o lv e c e rta in ris k s a n d u n c e rta in tie s,in c lu d in g,b u tn o tlim ite d to,th e fo lo w in g ris k s re la te d to M a ta d o r s fin a n c ia l a n d o p e ra tio n a l p e rfo rm a n c e :g e n e ra l e c o n o m ic c o n d itio n s ;M a ta d o r s a b ility to e x e c u te its b u s in e s s p la n, in c lu d in g w h e th e rm a ta d o r s d rilin g p ro g ra m is s u c c e s s fu l;c h a n g e s in o il,n a tu ra l g a s a n d n a tu ra l g a s liq u id s p ric e s a n d th e d e m a n d fo ro il,n a tu ra l g a s a n d n a tu ra l g a s liq u id s ;M a ta d o r s a b ility to re p la c e re s e rv e s a n d e fic ie n tly d e v e lo p its c u re n tre s e rv e s ;M a ta d o r s c o s ts o fo p e ra tio n s,d e la y s a n d o th e rd ific u ltie s re la te d to p ro d u c in g o il,n a tu ra l g a s a n d n a tu ra l g a s liq u id s ;M a ta d o r s a b ility to in te g ra te th e a s s e ts,e m p lo y e e s a n d o p e ra tio n s o fh a rv e y E.Y a te s C o m p a n y fo lo w in g its m e rg e rw ith o n e o fm a ta d o r s w h o ly -o w n e d s u b s id ia rie s o n F e b ru a ry 2 7, ;M a ta d o r s a b ility to m a k e o th e ra c q u is itio n s o n e c o n o m ic a ly a c c e p ta b le te rm s ;a v a ila b ility o fs u fic ie n tc a p ita l to e x e c u te M a ta d o r s b u s in e s s p la n,in c lu d in g fro m its fu tu re c a s h flo w s,in c re a s e s in M a ta d o r s b o ro w in g b a s e a n d o th e rw is e ;w e a th e ra n d e n v iro n m e n ta l c o n d itio n s ;a n d o th e rim p o rta n tfa c to rs w h ic h c o u ld c a u s e a c tu a l re s u lts to d ife rm a te ria ly fro m th o s e a n tic ip a te d o rim p lie d in th e fo rw a rd -lo o k in g s ta te m e n ts.f o rfu rth e rd is c u s s io n s o fris k s a n d u n c e rta in tie s,y o u s h o u ld re fe rto M a ta d o r s S E C filin g s,in c lu d in g th e R is k F a c to rs s e c tio n o fm a ta d o r s m o s tre c e n ta n n u a l R e p o rto n F o rm 1 0 -K a n d a n y s u b s e q u e n tq u a rte rly R e p o rts o n F o rm 1 0 -Q.M a ta d o ru n d e rta k e s n o o b lig a tio n a n d d o e s n o tin te n d to u p d a te th e s e fo rw a rd -lo o k in g s ta te m e n ts to re fle c te v e n ts o rc irc u m s ta n c e s o c c u rin g a fte rth e d a te o fth is p re s e n ta tio n,e x c e p ta s re q u ire d b y la w,in c lu d in g th e s e c u ritie s la w s o fth e U n ite d S ta te s a n d th e ru le s a n d re g u la tio n s o fth e S E C.Y o u a re c a u tio n e d n o to p la c e u n d u e re lia n c e o n th e s e fo rw a rd -lo o k in g s ta te m e n ts,w h ic h s p e a k o n ly a s o fth e d a te o fth is p re s e n ta tio n.a l fo rw a rd -lo o k in g s ta te m e n ts a re q u a lifie d in th e ire n tire ty b y th is c a u tio n a ry s ta te m e n t.c a u tio n a ry N o te T h e S e c u ritie s a n d E x c h a n g e C o m m is s io n (S E C )p e rm its o il a n d g a s c o m p a n ie s,in th e irfilin g s w ith th e S E C,to d is c lo s e o n ly p ro v e d,p ro b a b le a n d p o s s ib le re s e rv e s.p o te n tia l re s o u rc e s a re n o tp ro v e d,p ro b a b le o rp o s s ib le re s e rv e s.t h e S E C s g u id e lin e s p ro h ib itm a ta d o rfro m in c lu d in g s u c h in fo rm a tio n in filin g s w ith th e S E C.D e fin itio n s P ro v e d o il a n d n a tu ra l g a s re s e rv e s a re th e e s tim a te d q u a n titie s o fo il a n d n a tu ra l g a s th a tg e o lo g ic a l a n d e n g in e e rin g d a ta d e m o n s tra te w ith re a s o n a b le c e rta in ty to b e re c o v e ra b le in fu tu re y e a rs fro m k n o w n re s e rv o irs u n d e re x is tin g e c o n o m ic a n d o p e ra tin g c o n d itio n s.m a ta d o r s p ro d u c tio n a n d p ro v e d re s e rv e s a re re p o rte d in tw o s tre a m s :o il a n d n a tu ra l g a s,in c lu d in g b o th d ry a n d liq u id s -ric h n a tu ra l g a s.wh e re M a ta d o rp ro d u c e s liq u id s -ric h n a tu ra l g a s,th e e c o n o m ic v a lu e o fth e n a tu ra l g a s liq u id s a s s o c ia te d w ith th e n a tu ra l g a s is in c lu d e d in th e e s tim a te d w e lh e a d n a tu ra l g a s p ric e o n th o s e p ro p e rtie s w h e re th e n a tu ra l g a s liq u id s a re e x tra c te d a n d s o ld.e s tim a te d u ltim a te re c o v e ry (E U R )is a m e a s u re th a tb y its n a tu re is m o re s p e c u la tiv e th a n e s tim a te s o fp ro v e d re s e rv e s p re p a re d in a c c o rd a n c e w ith S E C d e fin itio n s a n d g u id e lin e s a n d is a c c o rd in g ly le s s c e rta in.

14 C o m p a n y S u m m a ry

15 , a n d c a p ita l s p e n d in g fo c u s e d p rim a rily o n d e v e lo p in g E a g le F o rd a n d tra n s itio n in g to o il F e b ru a ry IP O a t$ ;n e tc a s h p ro c e e d s o f~ $ m ilio n M a y F o lo w -o n O fe rin g a t$ ;n e tc a s h p ro c e e d s o f~ $ m ilio n S e p te m b e r F o lo w -o n O fe rin g a t$ ;n e tc a s h p ro c e e d s o f~ $ m ilio n M a ta d o rh a s g ro w n a lm o s te n tire ly th ro u g h th e d ril b it,w ith a fo c u s o n u n c o n v e n tio n a l re s e rv o irp la y s A s s e m b lin g P e rm ia n a c re a g e p o s itio n ;b e g in d e lin e a tio n d rilin g p ro g ra m F o u n d e d b y J o e F o ra n in m o s tp a rtic ip a n ts a re s til s h a re h o ld e rs to d a y F o ra n O il fu n d e d w ith $ 2 7 0,0 0 0 in c o n trib u te d c a p ita l fro m 1 7 frie n d s a n d fa m ily m e m b e rs ;e v o lv e d in to M a ta d o rp e tro le u m C o rp o ra tio n S o ld M a ta d o rp e tro le u m C o rp o ra tio n to T o m B ro w n,in c.(1 )in J u n e fo ra n e n te rp ris e v a lu e o f$ m ilio n in a n a l-c a s h tra n s a c tio n F o ra n O il & M a ta d o rp e tro le u m 4 M a ta d o rh is to ry M a ta d o rr e s o u rc e s C o m p a n y T im e lin e P re d e c e s s o re n titie s (1 )T o m B ro w n a c q u ire d b y E n c a n a in (2 )E x c lu d in g c u s to m a ry p u rc h a s e p ric e a d ju s tm e n ts M a ta d o rt o d a y F o u n d e d b y J o e F o ra n w ith $ 6 m ilio n,a p ro v e n m a n a g e m e n ta n d te c h n ic a l te a m a n d b o a rd o fd ire c to rs S o ld H a y n e s v ile rig h ts in ~ 9,0 0 0 n e ta c re s to C H K fo r~ $ m ilio n ;re ta in e d 2 5 % p a rtic ip a tio n in te re s t,c a rie d w o rk in g in te re s ta n d o v e rid in g ro y a lty in te re s t R e d e p lo y e d c a p ita l in to th e E a g le F o rd e a rly in th e p la y,a c q u irin g o v e r3 0,0 0 0 n e ta c re s fo r~ $ m ilio n , a n d c a p ita l s p e n d in g fo c u s e d p rim a rily o n d e v e lo p in g E a g le F o rd a n d tra n s itio n in g to o il F e b ru a ry IP O a t$ ;n e tc a s h p ro c e e d s o f~ $ m ilio n M a y F o lo w -o n O fe rin g a t$ ;n e tc a s h p ro c e e d s o f~ $ m ilio n S e p te m b e r F o lo w -o n O fe rin g a t$ ;n e tc a s h p ro c e e d s o f~ $ m ilio n M a ta d o rh a s g ro w n a lm o s te n tire ly th ro u g h th e d ril b it,w ith fo c u s o n u n c o n v e n tio n a l re s e rv o irp la y s,in itia ly in C o to n V a le y a n d H a y n e s v ile A s s e m b lin g P e rm ia n a c re a g e p o s itio n ;b e g in d e lin e a tio n d rilin g p ro g ra m F e b ru a ry H E Y C O C o m b in a tio n F e b ru a ry H E Y C O C o m b in a tio n A p ril In a u g u ra l H ig h -Y ie ld O fe rin g o f$ m ilio n ;F o lo w -o n O fe rin g a t$ ;n e tc a s h p ro c e e d s o f~ $ m ilio n F o u n d e d b y J o e F o ra n w ith $ 6 m ilio n,a p ro v e n m a n a g e m e n ta n d te c h n ic a l te a m a n d b o a rd o fd ire c to rs S o ld H a y n e s v ile rig h ts in ~ 9,0 0 0 n e ta c re s to C H K fo r~ $ m ilio n ;re ta in e d 2 5 % p a rtic ip a tio n in te re s t,c a rie d w o rk in g in te re s ta n d o v e rid in g ro y a lty in te re s t R e d e p lo y e d c a p ita l in to th e E a g le F o rd e a rly in th e p la y,a c q u irin g o v e r3 0,0 0 0 n e ta c re s fo r~ $ m ilio n P re IP O P o s t IP O O c to b e r S a le o fc e rta in L o v in g C o u n ty m id s tre a m a s s e ts fo r~ $ m ilio n (2 )

16 5 C o m p a n y O v e rv ie w E x c h a n g e :T ic k e rn Y S E :M T D R S h a re s O u ts ta n d in g (1 )8 5.4 m ilio n c o m m o n s h a re s S h a re P ric e (1 )$ /s h a re M a rk e tc a p ita liz a tio n (1 )$ 2.0 b ilio n (1 )S h a re s o u ts ta n d in g a s re p o rte d in th e F o rm 1 0 -Q fo rth e q u a rte re n d e d J u n e 3 0, a n d s h a re p ric e a s o fo c to b e r2, (2 )T h e C o m p a n y ra is e d its fu l-y e a r g u id a n c e e s tim a te s o n A u g u s t4, (3 )T h e C o m p a n y ra is e d its o il p ro d u c tio n g u id a n c e fro m 4.0 to 4.2 m ilio n B b l to 4.1 to 4.3 m ilio n B b l o n M a y 6, (4 )E s tim a te d o il a n d n a tu ra l g a s re v e n u e s a n d A d ju s te d E B IT D A b a s e d u p o n th e m id p o in to f g u id a n c e ra n g e a s re v is e d o n A u g u s t4, P ric e s fo ro il a n d n a tu ra l g a s u s e d in th e s e e s tim a te s w e re $ /B b l (WT Io il p ric e o f$ /B b le s s $ /B b l d ife re n tia ls a n d tra n s p o rta tio n c o s ts )a n d $ /M c f(n Y M E X H e n ry H u b n a tu ra l g a s p ric e a s s u m in g re g io n a l d ife re n tia ls a n d u p lifts fro m n a tu ra l g a s p ro c e s s in g ro u g h ly o fs e t),re s p e c tiv e ly,fo rth e p e rio d J u ly th ro u g h D e c e m b e r a n d w e ig h te d a v e ra g e re a liz e d p ric e s fo rth e p e rio d J a n u a ry th ro u g h J u n e o f$ /B b l a n d $ /M c f.(5 )A d ju s te d E B IT D A is a n o n -G A A P fin a n c ia l m e a s u re.f o ra d e fin itio n o fa d ju s te d E B IT D A a n d a re c o n c ilia tio n o fa d ju s te d E B IT D A to o u rn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,s e e A p p e n d ix P rio ru p d a te d % A c tu a l G u id a n c e G u id a n c e (2 )C h a n g e C a p ita l S p e n d in g $ m ilio n $ m ilio n $ m ilio n -3 0 % T o ta l O il P ro d u c tio n 3.3 m ilio n B b l 4.1 to 4.3 m ilio n B b l(3 )4.4 to 4.5 m ilio n B b l % T o ta l N a tu ra l G a s P ro d u c tio n B c f2 4.0 to B c f2 6.0 to B c f+ 7 3 % O il a n d N a tu ra l G a s R e v e n u e s $ m ilio n $ to $ m ilio n $ to $ m ilio n (4 )-2 0 % A d ju s te d E B IT D A (5 )$ m ilio n $ to $ m ilio n $ to $ m ilio n (4 )-1 4 %

17 M a ta d o rr e s o u rc e s C o m p a n y O p e ra tio n s O v e rv ie w M a rk e tc a p ita liz a tio n (1 )$ 2.0 b ilio n A v g.d a ily P ro d u c tio n Q (2 )2 6,6 0 1 B O E /d O il (% to ta l)1 3,8 4 7 B b l/d (5 2 %)N a tu ra l G a s (% to ta l)7 6.5 M M c f/d (4 8 %)P ro v e d R e s e rv e 6 /3 0 / m ilio n B O E % P ro v e d D e v e lo p e d 3 9 %% O il 4 7 % E C a p E x (3 )$ m ilio n G ro s s A c re a g e (4 )2 2 3,6 5 5 a c re s N e ta c re a g e (4 )1 4 3,8 0 0 a c re s E n g in e e re d D rilin g L o c a tio n s (5 )2,2 6 5 g ro s s /1,3 6 2 n e te a g le F o rd g ro s s /2 4 0 n e tp e rm ia n 1,4 4 5 g ro s s /9 6 0 n e th a y n e s v ile /C o to n V a le y g ro s s /1 6 2 n e t*n o te :R e p re s e n ts in c re a s e a s c o m p a re d to e a c h re s p e c tiv e fig u re a to rfo rth e th re e m o n th s e n d e d J u n e 3 0, *N o te :R e p re s e n ts in c re a s e a s c o m p a re d to e a c h re s p e c tiv e fig u re a td e c e m b e r3 1, (1 )M a rk e tc a p ita liz a tio n b a s e d o n c lo s in g s h a re p ric e a s o fo c to b e r2, a n d s h a re s o u ts ta n d in g a s re p o rte d in th e F o rm 1 0 -Q fo rth e q u a rte re n d e d J u n e 3 0, (2 )A v e ra g e d a ily p ro d u c tio n fo rth e th re e m o n th s e n d e d J u n e 3 0, (3 ) e s tim a te d c a p ita l e x p e n d itu re s fo ro p e ra tio n s o n ly.r e v is e d u p w a rd s fro m $ m ilio n o n A u g u s t4, ;d o e s n o tin c lu d e c a p ita l e x p e n d itu re s a s s o c ia te d w ith th e H E Y C O tra n s a c tio n o rtw o a s s o c ia te d jo in tv e n tu re s.(4 )P re s e n te d a s o fa u g u s t3 1, E x c lu d e s 7 5,6 7 4 g ro s s (3 5,7 3 2 n e t)a c re s s til u n d e rle a s e in Wy o m in g,u ta h a n d Id a h o.(5 )Id e n tifie d a n d e n g in e e re d lo c a tio n s fo rp o te n tia l fu tu re d rilin g,in c lu d in g s p e c ifie d p ro d u c tio n u n its a n d e s tim a te d la te ra le n g th s,c o s ts a n d w e l s p a c in g u s in g o b je c tiv e c rite ria fo rd e s ig n a tio n.l o c a tio n s id e n tifie d a s o fd e c e m b e r3 1, ,b u tin c lu d in g n o lo c a tio n s a tt w in L a k e s a n d n o lo c a tio n s a s s o c ia te d w ith th e H E Y C O tra n s a c tio n o rtw o a s s o c ia te d jo in tv e n tu re s %* %*+ 5 2 %*+ 7 2 %*3 2 % o fto ta l p ro d u c tio n A lm o s tn o o il 6 5 % o fto ta l n a tu ra l g a s 4 5 % o fto ta l p ro d u c tio n 6 8 % o fto ta l o il 2 2 % o fto ta l n a tu ra l g a s 2 3 % o fto ta l p ro d u c tio n 3 2 % o fto ta l o il 1 3 % o fto ta l n a tu ra l g a s

18 M a ta d o r s E x e c u tio n H is to ry D o in g Wh a twe S a y O il P ro d u c tio n B b l/d o fo il 6 % o il 4,9 1 6 B b l/d o fo il 4 6 % o il 1 3,8 4 7 B b l/d o fo il 5 2 % o il P ro v e d R e s e rv e s 2 7 M M B O E 1.1 M M B b l o fo il 4 % o il 3 9 M M B O E M M B b l o fo il 3 1 % o il 8 7 M M B O E M M B b l o fo il 4 7 % o il P V -1 0 (2 )a n d A s s e tc o v e ra g e $ m ilio n 2 4 % o fp V -1 0 in E a g le F o rd P V -1 0 /d e b to f2.0 x $ m ilio n 9 0 % o fp V -1 0 in E a g le F o rd P V -1 0 /d e b to f2.1 x $ m ilio n 9 0 % o fp V -1 0 in E a g le F o rd /P e rm ia n P V -1 0 /d e b to f2.4 x L T M A d ju s te d E B IT D A (3 ) $ 5 0 m ilio n (4 ) $ m ilio n $ m ilio n L e v e ra g e (5 ) 1.5 x (4 ) 1.6 x 1.4 x 1.0 x (1 1 )a fte rm id s tre a m s a le A c re a g e ~ 7,5 0 0 n e tp e rm ia n a c re s ~ 3 2,9 0 0 n e tp e rm ia n a c re s ~ 8 9,7 0 0 n e tp e rm ia n a c re s (1 2 )E n te rp ris e V a lu e ( E V )(6 ) $ b ilio n (7 ) $ 1.2 b ilio n (9 ) $ 2.4 b ilio n (1 3 )1 2 x g ro w th in o il p ro d u c tio n 1 1 x g ro w th in o il re s e rv e s ~ % g ro w th D o u b le d E V O v e r4 x g ro w th in P e rm ia n a c re s A tip O (1 )S e p te m b e r F o lo w -O n (8 )O v e r3 x g ro w th in P V -1 0 (1 )U n le s s o th e rw is e n o te d,a to rfo rth e n in e m o n th s e n d e d S e p te m b e r3 0, (2 )P V -1 0 is a n o n -G A A P fin a n c ia l m e a s u re.f o ra re c o n c ilia tio n o fs ta n d a rd iz e d M e a s u re (G A A P )to P V -1 0 (n o n -G A A P ),s e e A p p e n d ix.(3 )A d ju s te d E B IT D A is a n o n -G A A P fin a n c ia l m e a s u re.f o ra d e fin itio n o fa d ju s te d E B IT D A a n d a re c o n c ilia tio n o fa d ju s te d E B IT D A to o u rn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,s e e A p p e n d ix.(4 )A to rfo rth e tw e lv e m o n th s e n d e d D e c e m b e r3 1, (5 )C a lc u la te d a s d e b td iv id e d b y L T M A d ju s te d E B IT D A.(6 )E n te rp ris e v a lu e e q u a ls m a rk e tc a p ita liz a tio n p lu s lo n g -te rm d e b t.(7 )A s o ff e b ru a ry 7, a tim e o fip O.(8 )U n le s s o th e rw is e n o te d,a to rfo rth e th re e m o n th s e n d e d J u n e 3 0, (9 )A s o fs e p te m b e r1, (1 0 )U n le s s o th e rw is e n o te d,a to rfo rth e th re e m o n th s e n d e d J u n e 3 0, (1 1 )N e td e b ta to c to b e r1, a n d L T M A d ju s te d E B IT D A a tj u n e 3 0, (1 2 )A s o fa u g u s t3 1, (1 3 )M a rk e tc a p ita liz a tio n b a s e d o n c lo s in g s h a re p ric e a s o fo c to b e r2, a n d s h a re s o u ts ta n d in g a s re p o rte d in th e F o rm 1 0 -Q fo rth e q u a rte re n d e d J u n e 3 0, % g ro w th in o il p ro d u c tio n 3.3 x g ro w th in o il re s e rv e s 7 2 % g ro w th D o u b le d E V 2.7 x g ro w th in P e rm ia n a c re s 8 1 % g ro w th J u n e 3 0, (1 0 )M a ta d o rc o n tin u e s to e x e c u te o n its c o re s tra te g y o fa c q u irin g g re a ta s s e ts,d e v e lo p in g a h ig h ly p ro fe s s io n a l,c o m m ite d w o rk fo rc e,m a in ta in in g a s tro n g b a la n c e s h e e ta n d g e n e ra tin g s ig n ific a n ts h a re h o ld e re tu rn s 7 R e m a in e d c o n s e rv a tiv e Im p ro v e d

19 8 E a g le F o rd $ m ilio n,5 8 % E a g le F o rd $ m ilio n,8 2 % H a y n e s v ile /C V $ m ilio n,1 8 % P e rm ia n $ m ilio n,2 4 % H a y n e s v ile /C V $ m ilio n,1 3 % P e rm ia n $ m ilio n,5 % E a g le F o rd $ m ilio n,4 5 % H a y n e s v ile /C V $ m ilio n,1 0 % P e rm ia n $ m ilio n,4 5 % D e c e m b e r3 1, T o ta l p ro v e d re s e rv e s = m ilio n B O E P V -1 0 (1 ):$ m ilio n $ o il /$ n a tu ra l g a s T o ta l p ro v e d re s e rv e s = m ilio n B O E P V -1 0 (1 ):$ 1, m ilio n $ o il /$ n a tu ra l g a s D e c e m b e r3 1, T o ta l p ro v e d re s e rv e s = m ilio n B O E P V -1 0 (1 ):$ m ilio n $ o il /$ n a tu ra l g a s J u n e 3 0, O il a n d N a tu ra l G a s P ro v e d R e s e rv e s a n d P V -1 0 (1 )G ro w th B y A re a (1 )P V -1 0 is a n o n -G A A P fin a n c ia l m e a s u re.f o ra re c o n c ilia tio n o fs ta n d a rd iz e d M e a s u re (G A A P )to P V -1 0 (n o n -G A A P ),s e e A p p e n d ix.

20 A v e ra g e D a ily O il P ro d u c tio n (B b l/d )A v e ra g e D a ily N a tu ra l G a s P ro d u c tio n (M M c f/d )A v e ra g e D a ily T o ta l P ro d u c tio n (M B O E /d )O il P ro d u c tio n M ix (% o fa v e ra g e D a ily P ro d u c tio n )9 G ro w th s in c e IP O G ro w th s in c e IP O G ro w th s in c e IP O G ro w th s in c e IP O , , , , , Q Q Q Q Q Q % 6 % 3 7 % 5 0 % 5 7 % 4 8 % 5 2 % Q Q M a ta d o r s C o n tin u e d P ro d u c tio n G ro w th T h ro u g h J u n e 3 0,

21 0.0 x 0.0 x 0.1 x 1.5 x 0.2 x 0.7 x 1.1 x 1.3 x 1.5 x 1.6 x 0.8 x 1.0 x 1.2 x 0.6 x 1.0 x 1.3 x 1.6 x 1.4 x 1.0 x Q Q Q Q Q Q Q Q Q Q Q Q Q Q 1 5 T o d a y N e td e b t/l T M E B IT D A $ 7 6 $ $ $ In itia l P u b lic O fe rin g P re s e rv e d a n d e n h a n c e d liq u id ity th ro u g h A p ril e q u ity a n d S e n io rn o te s o fe rin g s a n d s a le o fl o v in g C o u n ty m id s tre a m a s s e ts fo r~ $ m ilio n (1 )in O c to b e r s u b s ta n tia liq u id ity to e x e c u te p la n n e d d rilin g p ro g ra m th ro u g h S tro n g fin a n c ia l p o s itio n w ith N e td e b t/l T M A d ju s te d E B IT D A (2 )(3 )o f1.0 x a fte rc lo s e o fm id s tre a m s a le T a rg e tle v e ra g e a tle s s th a n 2.0 x A d ju s te d E B IT D A (2 ),th o u g h p ro file ty p ic a ly m o re c o n s e rv a tiv e C o m m ite d to M a in ta in in g S tro n g B a la n c e S h e e t1 0 (1 )E x c lu d in g c u s to m a ry p u rc h a s e p ric e a d ju s tm e n ts.(2 )A d ju s te d E B IT D A is a n o n -G A A P fin a n c ia l m e a s u re.f o ra d e fin itio n o fa d ju s te d E B IT D A a n d a re c o n c ilia tio n o fa d ju s te d E B IT D A to o u rn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,s e e A p p e n d ix.(3 )L T M A d ju s te d E B IT D A a tj u n e 3 0, a n d N e td e b ta to c to b e r1, (4 )L T M A d ju s te d E B IT D A a n d N e td e b ta tj u n e 3 0, (4 )E q u ity R a is e E q u ity R a is e N o te s O fe rin g + E q u ity R a is e (2 )N e td e b t($ m ilio n s )(3 )M id s tre a m S a le

22 1 1 P re v io u s O il P ric e D e c lin e s H a v e C re a te d O p p o rtu n itie s fo rm a ta d o r(1 )C o m p a ris o n o fm a jo ro il C o re c tio n s a n d M a jo rm a ta d o rt u rn in g P o in ts S in c e D a te E v e n t% C h a n g e in O il P ric e L e n g th o fo il P ric e D e c lin e (in tra d in g d a y s )% In c re a s e in O il P ric e 1 -Y e a rp o s t-l o w S a u d i M a rk e ts h a re Wa r % % A n u m b e ro fm e s a s to p te c h n ic a l s ta fjo in M a ta d o ri O il G lu t % % M a ta d o rib u y s k e y w a te rflo o d p ro p e rtie s a n d N e w M e x ic o n a tu ra l g a s a c re a g e G lo b a l R e c e s s io n /E n d o fg u lfwa r % % F irs tin te re s ts in A m a k e r-t ip p e ta c q u ire d ;b e c o m e s M a ta d o ri s la rg e s tfie ld A s ia n C ris is % % U n o c a l e x c h a n g e s N M p ro p e rtie s fo rm a ta d o ri s s to c k G lo b a l R e c e s s io n % % M a ta d o ris h ifts to u n c o n v e n tio n a ls (M a rla n D o w n e y jo in s B o a rd ) G re a tr e c e s s io n % % M a ta d o rib u ild s E a g le F o rd p o s itio n a n d d rils firs th a y n e s v ile w e ls A v e ra g e % % C u re n td ip (2 ) % ~ 3 0 0? -M T D R a n d H E Y C O jo in fo rc e s -M T D R s e ls m id s tre a m a s s e ts to E n L in k (1 )In c lu d e s M a ta d o rr e s o u rc e s C o m p a n y,f o ra n O il a n d M a ta d o rp e tro le u m C o rp o ra tio n a n d o th e rp re d e c e s s o re n titie s.(2 )L e n g th o fo il p ric e d e c lin e in tra d in g d a y s u s in g h ig h o f$ o n J u n e 2 0, a n d lo w o f$ o n A u g u s t2 4,

23 K e y s to M a ta d o r s S u c c e s s O v e rl a s t3 5 Y e a rs (1 )1 2 P e o p le We h a v e a s tro n g,c o m m ite d te c h n ic a l a n d fin a n c ia l te a m in p la c e,a n d w e c o n tin u e to m a k e a d d itio n s a n d im p ro v e m e n ts to o u rs ta f,o u rc a p a b ilitie s a n d o u rp ro c e s s e s B o a rd a n d S p e c ia l A d v is o ra d d itio n s h a v e s tre n g th e n e d B o a rd s k ils a n d s te w a rd s h ip P ro p e rtie s M a ta d o r s a c re a g e p o s itio n s a n d m u lti-y e a rd rilin g in v e n to ry a re s ig n ific a n ta n d lo c a te d in th re e o fth e in d u s try s b e s tp la y s P e rm ia n,e a g le F o rd a n d H a y n e s v ile O u rp ro p e rty m ix p ro v id e s u s w ith a b a la n c e d o p p o rtu n ity s e tfo rb o th o il a n d n a tu ra l g a s P ro c e s s C o n tin u o u s im p ro v e m e n tin a l a s p e c ts o fo u rb u s in e s s le a d in g to m o re e fic ie n to p e ra tio n s,im p ro v e d fin a n c ia l re s u lts a n d in c re a s e d s h a re h o ld e rv a lu e G a in in g m o m e n tu m a s a s u c c e s s fu l p u b lic ly -h e ld c o m p a n y E x e c u tio n In c re a s e to ta l p ro d u c tio n b y ~ 5 1 %,w ith o il p ro d u c tio n e x p e c te d to in c re a s e to ~ m ilio n b a re ls a n d n a tu ra l g a s p ro d u c tio n e x p e c te d to in c re a s e to ~ B c fin M a in ta in q u a lity a c re a g e p o s itio n s in th e P e rm ia n,e a g le F o rd a n d H a y n e s v ile s u c c e s s fu ly in te g ra te H E Y C O a c re a g e in P e rm ia n R e d u c e d rilin g a n d c o m p le tio n tim e s a n d c o s ts im p ro v e o p e ra tio n a l e fic ie n c ie s M a in ta in s tro n g fin a n c ia l p o s itio n a n d te c h n ic a l a n d a d m in is tra tiv e te a m s (1 )In c lu d e s M a ta d o rr e s o u rc e s C o m p a n y a n d its p re d e c e s s o re n titie s.

24 P e rm ia n (D e la w a re )B a s in S o u th e a s tn e w M e x ic o a n d We s tt e x a s

25 1 4 D e la w a re B a s in A Wo rld C la s s H y d ro c a rb o n S y s te m D E L A WA R E B A S IN C E N T R A L B A S IN P L A T F O R M M ID L A N D B A S IN Wo lfc a m p S im p s o n ~ 2 3,0 0 0 S e d im e n tf il E a s twe s ts o u rc e K itc h e n s N o w U n c o n v e n tio n a l R e s o u rc e P la y s 7 0,0 0 0 s q u a re m ile a re a U p to 2 5,0 0 0 fe e to fm u ltip le,s ta c k e d,p e tro le u m s y s te m s E x te n s iv e d rilin g,c o rin g a n d g e o lo g ic a l s tu d ie s s in c e s > 1,5 0 0 c o n v e n tio n a l re s e rv o irs w ith c u m u la tiv e p ro d u c tio n > 1.0 m ilio n B b l e a c h C u m u la tiv e p ro d u c tio n fro m 1,5 0 0 c o n v e n tio n a l re s e rv o irs,a s o fy e a r (p re -h o riz o n ta l d rilin g )> b ilio n B b l(1 )(1 )D u to n e ta l,a A P G

26 T a s k a th a n d U n d e rs ta n d in g th e O p p o rtu n itie s 3 rd B o n e S p rin g L o w e ra v a lo n O b je c tiv e :We w a n to d ril a n d c o m p le te th e b e s tw e ls a th e lo w e s tc o s t.c h a le n g e :H o w d o w e id e n tify th e b e s ta rg e ts w ith in m u ltip le p ro s p e c tiv e in te rv a ls a c ro s s a g e o lo g ic a ly c o m p le x b a s in? M a ta d o r s g e o s c ie n c e s ta fis c o m m ite d to b rin g in g th e b e s ta rg e ts fo rw a rd!m o s tc u re n tu n c o n v e n tio n a l p la y s ta rg e to n e o rtw o z o n e s a c ro s s a tre n d a re a.t h e P e rm ia n B a s in h a s ro u g h ly tw o d o z e n u n iq u e ta rg e ts w ith in th e M id la n d a n d D e la w a re s u b -b a s in s.a lo g s p lo te d a ts a m e s c a le D e la w a re B a s in Wo lfc a m p A Wo lfc a m p B Wo lfc a m p C Wo lfc a m p D S tra w n A to k a B a rn e tm is s.l im e Wo o d fo rd U p p e ra v a lo n 1 s tb o n e S p rin g 2 n d B o n e S p rin g 1 5 B ru s h y C y n.o v e rp re s s u re T e s te d b y M T D R T e s te d b y o th e rs

27 S p e c tru m o fu n c o n v e n tio n a l P la y T y p e s In g e n e ra l th e re is n o c o n s e n s u s o n th e w h a ta n u n c o n v e n tio n a l re s e rv o iris A tm a ta d o r,w e th in k o fa n u n c o n v e n tio n a l re s e rv o ira s a s p e c tru m o fp la y ty p e s.t h e d is trib u tio n a n d q u a lity o fth e s e p la y ty p e s a re b o th s p a tia ly a n d te m p o ra ly v a ria b le.p la y ty p e s fro m B is h o p B lo c k d ia g ra m m o d ifie d fro m H a n fo rd ( ).1 6

28 D e te rm in in g G o o d,b e te r,b e s t im p o rta n ta s p o te n tia l e x c e e d s in te r-fo rm a tio n a l s ta c k e d p a y p ro g ra m w il e x p a n d o n in tra -fo rm a tio n a l s ta c k e d p a y te s ts p e rfo rm e d in e a c h a s s e ta re a Wo lfa re a T y p e L o g Wo lfc a m p X /Y X T e s ty T e s t8 0 a c re R u s tle rb re a k s T y p e L o g Wo lfc a m p B X T e s ty T e s t1 6 0 a c re R a n g e rt y p e L o g 2 n d B o n e S p rin g D P H I> 8 % L L D > 1 0 o h m IN T R A -F o rm a tio n a l S ta c k e d P a y s D e c o u p le d C o u p le d M ic ro -c o u p le d B o n e S p rin g L im e U p p e ra v a lo n S h a le L o w e ra v a lo n S h a le F irs tb o n e S p rin g S a n d S e c o n d B o n e S p rin g C a rb o n a te T h ird B o n e S p rin g C a rb o n a te Wo lfc a m p D /P e n n S tra w n Wo lfc a m p C T h ird B o n e S p rin g S a n d IN T E R -F o rm a tio n a l S ta c k e d P a y S e c o n d B o n e S p rin g S a n d Wo lfc a m p A Wo lfc a m p B Wo lfc a m p X -Y 1 7 G a m m a R a y R e s is tiv ity 4,0 0 0 fe e to fh y d ro c a rb o n C o lu m n C re a te s O p p o rtu n ity H o riz o n te s te d b y M T D R

29 C u m u la tiv e P ro d u c tio n R e c e n tp ro d u c tio n O il E q.% O il N a tu ra l G a s E U R (2 )We l M o n th s (B O E )O il (B b l/d )(M c f/d )(M B O E )R a n g e rs ta te S -3 5 E R N # H (2 n d B o n e S p rin g ) , % D o ro th y Wh ite # 1 H (Wo lfc a m p "A "/"X ") , % ,0 5 0 R u s tle rb re a k s S -2 7 E R B # H (Wo lfc a m p "B ") , % 9 0 1, N o rto n S c h a u b 8 4 -T T T -B 3 3 WF # H (Wo lfc a m p "A "/"X ") , % , P ic k a rd S ta te S -3 4 E R N # H (2 n d B o n e S p rin g ) , % J o h n s o n S -B 5 3 # H (Wo lfc a m p "A "/"X ") , % P ic k a rd S ta te # 2 H (Wo lfc a m p "D ") , % J im R o lfe R N S ta te # Y (3 )(3 rd B o n e S p rin g ) , % N o rto n S c h a u b 8 4 -T T T -B 3 3 WF # H (Wo lfc a m p "A ") , % G u ita r S -2 8 E R B # H (Wo lfc a m p "A "/"X ") , % T ig e r S -2 8 E R B # H (Wo lfc a m p "B ") , % , ,0 0 0 B ily B u rt9 0 -T T T -B 3 3 WF # H (Wo lfc a m p "A "/"X ")5 8 1, % B ily B u rt9 0 -T T T -B 3 3 WF # H (Wo lfc a m p "A "/"X ")5 9 0, % , T ig e r S -2 8 E R B # H (Wo lfc a m p "A /X -Y ") , % O il E q.o il N a tu ra l G a s % P f(4 )C h o k e We l D a te (B O E /d )(B b l/d )(M c f/d )O il (p s i)(in c h e s )A rn o # 1 H (Wo lfc a m p "A "/"X ")M id -S e p t , , % 4, /6 4 th B a rn e t9 0 -T T T -B 0 1 -WF # H (Wo lfc a m p "A "/"X ")E a rly M a r , , % 3, /6 4 th B a rn e t9 0 -T T T -B 0 1 -WF # H (o lfc a p "/")M id -F e b , , % 3, /6 4 th C im a ro n S -3 4 E R N # H (3 rd B o n e S p rin g )E a rly M a y % /6 4 th R a n g e rs ta te S -3 5 E R N # H (2 n d B o n e S p rin g )C le a n e d u p to ~ B O E /d in la s t6 0 d a y s (5 )w ith a lm o s tn o d e c lin e T ig e r S -2 8 E R B # H (2 n d B o n e S p rin g )E a rly J u ly % /6 4 th P e rm ia n B a s in A c re a g e P o s itio n a n d R e c e n tt e s tr e s u lts N o te :A l a c re a g e a ta u g u s t3 1, S o m e tra c ts n o ts h o w n o n m a p.(1 )A s o fm id -S e p te m b e r u n le s s o th e rw is e n o te d.(2 )E s tim a te d u ltim a te re c o v e ry,th o u s a n d s o fb a re ls o fo il e q u iv a le n t.(3 )A s o fa p ril 2 8, (4 )F lo w in g s u rfa c e p re s s u re.(5 )A s o fa u g u s t4, L E A L O V IN G WA R D # M a ta d o rr e s o u rc e s A c re a g e L o c a tio n o fm a ta d o rwe l T WIN L A K E S ~ 4 2,9 0 0 g ro s s /~ 3 0,0 0 0 n e ta c re s WO L F /L O V IN G A R E A ~ 1 1,3 0 0 g ro s s /~ 7,3 0 0 n e ta c re s S u c c e s s fu l p e rfo rm a n c e o fin itia l h o riz o n ta l w e ls (1 )R e c e n ta c tiv ity a n d 2 4 -h o u rin itia l p o te n tia l te s ts J a c k s o n T ru s tr A N G E R ~ 3 1,0 0 0 g ro s s /~ 1 8,6 0 0 n e ta c re s A R R O WH E A D ~ 4 7,4 0 0 g ro s s /~ 1 7,1 0 0 n e ta c re s 8 E D D Y R U S T L E R B R E A K S ~ 1 9,0 0 0 g ro s s /~ 1 2,3 0 0 n e ta c re s

30 M a ta d o ris a S ig n ific a n td e la w a re B a s in P la y e rm T D R M T D R M T D R M a ta d o r s 8 9,7 0 0 n e ta c re s p la c e ita m o n g th e la rg e s to p e ra to rs in th e D e la w a re B a s in M a ta d o rh o ld s la rg e s td e la w a re B a s in a c re a g e p o s itio n a m o n g s m a l a n d m id -c a p p u b lic ly tra d e d e n e rg y c o m p a n ie s (1 ) M a ta d o ris th e s e c o n d la rg e s to p e ra to rin te rm s o fth e ra tio o fd e la w a re B a s in a c re a g e to e n te rp ris e v a lu e o rm a rk e tc a p ita liz a tio n a m o n g a l p u b lic tra d e d e n e rg y c o m p a n ie s (1 ) K e y O p e ra to rs in th e D e la w a re B a s in (2 ): O x y 1,5 0 0,0 0 0 n e ta c re s C h e v ro n 1,0 0 0,0 0 0 n e ta c re s S h e l 6 1 8,0 0 0 n e ta c re s C o n c h o 4 2 5,0 0 0 n e ta c re s C im a re x 4 0 0,0 0 0 n e ta c re s E O G 3 0 7,0 0 0 n e ta c re s A n a d a rk o 2 5 5,0 0 0 n e ta c re s A p a c h e 2 3 0,0 0 0 n e ta c re s C o n o c o 1 5 0,0 0 0 n e ta c re s E n e rg e n 1 1 3,0 0 0 n e ta c re s M a ta d o r1 5 6,6 0 0 g ro s s /8 9,7 0 0 n e ta c re s (1 )B a s e d o n a n in d e p e n d e n tm a rk e ta n a ly s is p re p a re d b y B M O C a p ita l M a rk e ts in J a n u a ry S m a l a n d m id -c a p p u b lic ly tra d e d e n e rg y c o m p a n ie s d e fin e d a s th o s e c o m p a n ie s w ith a n e n te rp ris e v a lu e b e tw e e n $ m ilio n a n d $ 3.5 b ilio n.c o m p a n ie s b e lo w $ m ilio n in m a rk e tc a p ita liz a tio n w e re e x c lu d e d in d e te rm in in g th e ra tio o fd e la w a re B a s in a c re a g e to m a rk e tc a p ita liz a tio n.m a ta d o ra c re a g e a ta u g u s t3 1, (2 )G o ld m a n S a c h s E q u ity R e s e a rc h re p o rtd a te d A p ril 1, (S in g e r).1 9 M T D R M T D R

31 Wo lfin v e n to ry M u lti-p a y D e v e lo p m e n tp o te n tia l ~ B ru s h y C a n y o n A v a lo n 1 s tb o n e S p rin g 2 n d B o n e S p rin g 3 rd B o n e S p rin g Wo lfc a m p X /Y Wo lfc a m p A E v a l.o n g o in g F u l D e v e lo p m e n tl o c a tio n G ro s s We ls D e v e lo p m e n twe l D & C (1 )C a p E x E U R (2 )(M B O E )B o n e S p rin g $ 5.5 $ 6.5 m ilio n Wo lfc a m p $ 7.0 $ 8.5 m ilio n , m ile M R C S p a c in g T e s tc o m p le te d F u l D e v e lo p m e n ts p a c in g P a te rn (C ro s s -S e c tio n V ie w )2 0 (1 )D rilin g a n d c o m p le tio n.(2 )E s tim a te d u ltim a te re c o v e ry,th o u s a n d s o fb a re ls o fo il e q u iv a le n t.m a ta d o rwe l L o c a tio n Wo lfc a m p X /Y Wo lfc a m p A 2 n d B o n e S p rin g M a ta d o ra c re a g e

32 , , P ro d u c tio n R a te,b O E /d T im e,d a y s D o ro th y Wh ite # 1 H N o rto n S c h a u b # H N o rto n S c h a u b # H B ily B u rt# H B ily B u rt# H M B O E T y p e C u rv e M B O E T y p e C u rv e 1,0 0 0 M B O E T y p e C u rv e Wo lfc a m p "A "/"X "h o riz o n ta ls in L o v in g C o u n ty,t e x a s D o ro th y Wh ite # 1 H h a s p ro d u c e d 4 2 9,5 0 0 B O E (6 8 % o il)in m o n th s -"X "N o rto n S c h a u b 8 4 -T T T -B 3 3 WF # H h a s p ro d u c e d 2 7 8,0 0 0 B O E (6 8 % o il)in 1 4 m o n th s -"X "N o rto n S c h a u b 8 4 -T T T -B 3 3 WF # H h a s p ro d u c e d 1 0 6,5 0 0 B O E (7 3 % o il)in 9 m o n th s -"A "B ily B u rt9 0 -T T T -B 3 3 WF # H h a s p ro d u c e d 8 1,0 0 0 B O E (7 5 % o il)in 5 m o n th s -"X "B ily B u rt9 0 -T T T -B 3 3 WF # H h a s p ro d u c e d 9 0,0 0 0 B O E (7 5 % o il)in 5 m o n th s -"X "We l p u to n c o m p re s s o rwe l p u to n E S P P ro d u c tio n in c re a s e d u e to o fs e tfra c 2 1 Wo lfa re a Wo lfc a m p A / X We ls P e rfo rm in g A b o v e E x p e c ta tio n s M B O E T y p e C u rv e 1,0 0 0 M B O E T y p e C u rv e N o te :P ro d u c tio n a s o fm id -S e p te m b e r M B O E T y p e C u rv e

33 R u s tle rb re a k s In v e n to ry M u lti-p a y D e v e lo p m e n tp o te n tia l B ru s h y C a n y o n A v a lo n 1 s tb o n e S p rin g 2 n d B o n e S p rin g 3 rd B o n e S p rin g X /Y Wo lfc a m p B ~ F u l D e v e lo p m e n tl o c a tio n G ro s s We ls D e v e lo p m e n twe l D & C (1 )C a p E x E U R (2 )(M B O E )B o n e S p rin g $ 4.5 $ 5.5 m ilio n Wo lfc a m p $ 5.5 $ 7.5 m ilio n ,0 0 0 F o rc la rity o n ly g ro s s a c.w e l s lo ts s h o w n 1 m ile M R C H o riz o n ta l D rile d F u l D e v e lo p m e n ts p a c in g P a te rn (C ro s s -S e c tio n V ie w )2 2 (1 )D rilin g a n d c o m p le tio n.(2 )E s tim a te d u ltim a te re c o v e ry,th o u s a n d s o fb a re ls o fo il e q u iv a le n t.m a ta d o rwe l L o c a tio n Wo lfc a m p X /Y Wo lfc a m p B 2 n d B o n e S p rin g M a ta d o ra c re a g e

34 H is to ric a ly o il p ro d u c tiv e in te rv a l.m a ta d o r s F irs tt h re e -Z o n e S ta c k e d L a te ra l T e s ta tr u s tle rb re a k s B o n e S p rin g L im e U p p e ra v a lo n S h a le L o w e ra v a lo n S h a le F irs tb o n e S p rin g S a n d S e c o n d B o n e S p rin g C a rb o n a te T h ird B o n e S p rin g C a rb o n a te Wo lfc a m p /P e n n s y lv a n ia n S tra w n Wo lfc a m p C T h ird B o n e S p rin g S a n d G a m m a R a y IN T E R -F o rm a tio n a l S ta c k e d P a y S e c o n d B o n e S p rin g S a n d Wo lfc a m p A Wo lfc a m p B Wo lfc a m p X -Y T ig e r S -2 8 E R B # H IP :1,5 2 5 B O E /d (4 3 % o il)t V D :1 0,5 0 0 fe e tl a te ra l L e n g th :4,3 7 6 fe e tt ig e r S -2 8 E R B # H IP :1,4 0 5 B O E /d (7 5 % o il)t V D :9,6 0 0 fe e tl a te ra l L e n g th :4,6 5 6 fe e tt ig e r S -2 8 E R B # H IP :8 0 0 B O E /d (8 1 % o il)t V D :8,2 0 0 fe e tl a te ra l L e n g th :4,3 6 4 fe e tm u lti-we l P a d R e s is tiv ity th z o n e te s te d in U p p e rwo lfc a m p B in R u s tle rb re a k s S -2 7 E R B # H

35 , , P ro d u c tio n R a te,b O E /d T im e,d a y s R u s tle rb re a k s # H T ig e r# H M B O E T y p e C u rv e M B O E T y p e C u rv e M B O E T y p e C u rv e M B O E T y p e C u rv e Wo lfc a m p "B "h o riz o n ta ls in E d d y C o u n ty,n M R u s tle rb re a k s S -2 7 E R B # H h a s p ro d u c e d 2 0 9,0 0 0 B O E (4 1 % o il)in m o n th s T ig e r S -2 8 E R B # H h a s p ro d u c e d 1 6 3,0 0 0 B O E (4 5 % o il)in 6 m o n th s We l s h u tin fo ro fs e tfra c 2 4 R u s tle rb re a k s Wo lfc a m p B We ls P e rfo rm in g A b o v e E x p e c ta tio n s M B O E T y p e C u rv e M B O E T y p e C u rv e N o te :P ro d u c tio n a s o fm id -S e p te m b e r M B O E T y p e C u rv e 1,0 0 0 M B O E T y p e C u rv e

36 , , P ro d u c tio n R a te,b O E /d T im e,d a y s G u ita r# H T ig e r# H M B O E T y p e C u rv e M B O E T y p e C u rv e Wo lfc a m p "A "/"X -Y "h o riz o n ta ls in E d d y C o u n ty,n M G u ita r S -2 8 E R B # H p ro d u c e d 1 1 4,5 0 0 B O E (7 9 % o il)in 6 m o n th s -"X -Y "T ig e r S -2 8 E R B # H p ro d u c e d 7 3,0 0 0 B O E (7 8 %)in 2.5 m o n th s -"X -Y "We l s h u tin fo ro fs e tfra c 2 5 R u s tle rb re a k s Wo lfc a m p A / X -Y We ls,o fto S tro n g S ta rtn o te :P ro d u c tio n a s o fm id -S e p te m b e r M B O E T y p e C u rv e M B O E T y p e C u rv e

37 R a n g e rin v e n to ry M u lti-we l D e v e lo p m e n tp o te n tia l ~ 1, s tb o n e S p rin g 2 n d B o n e S p rin g 3 rd B o n e S p rin g X /Y Wo lfc a m p A -D ~ m ile M R C H o riz o n ta l D rile d F u l D e v e lo p m e n tl o c a tio n F u l D e v e lo p m e n ts p a c in g P a te rn (C ro s s -S e c tio n V ie w )G ro s s We ls D e v e lo p m e n twe l D & C (1 )C a p E x E U R (2 )(M B O E )B o n e S p rin g $ 5.5 $ 6.5 m ilio n Wo lfc a m p $ 7 $ 9 m ilio n *B a s e d o n V o lu m e tric s a n d 4-8 % R e c o v e ry F a c to r2 6 (1 )D rilin g a n d c o m p le tio n.(2 )E s tim a te d u ltim a te re c o v e ry,th o u s a n d s o fb a re ls o fo il e q u iv a le n t.f o rc la rity o n ly g ro s s a c.w e l s lo ts s h o w n M a ta d o rwe l L o c a tio n 2 n d B o n e S p rin g 3 rd B o n e S p rin g Wo lfc a m p D M a ta d o ra c re a g e L o c a tio n e s tim a te s d o n o tin c lu d e H E Y C O a c re a g e.

38 , , P ro d u c tio n R a te,b O E /d T im e,d a y s R a n g e r# H P ic k a rd # H M B O E T y p e C u rv e M B O E T y p e C u rv e 2 n d B o n e S p rin g h o riz o n ta ls in R a n g e ra re a L e a C o u n ty,n M R a n g e rs ta te S -3 5 E R N # H (1 )p ro d u c e d 2 2 1,4 0 0 B O E (9 1 % o il)in 2 2 m o n th s P ic k a rd S ta te S -3 4 E R N # H (2 )p ro d u c e d 1 5 5,2 0 0 B O E (9 1 % o il)in 1 4 m o n th s We l s h u tin fo ro fs e tfra c 2 7 R a n g e ra re a S e c o n d B o n e S p rin g We ls P e rfo rm in g A b o v e E x p e c ta tio n s N o te :P ro d u c tio n a s o fm id -S e p te m b e r (1 )F o rm e rly th e R a n g e r3 3 S ta te C o m # 1 H.(2 )F o rm e rly th e P ic k a rd S ta te # 1 H M B O E T y p e C u rv e M B O E T y p e C u rv e

39 2 8 M a ta d o ra c re a g e 2 n d B o n e S p rin g N o n -O p A c tiv ity M a ta d o rwe l P la n s 2 n d B o n e S p rin g M o s th E Y C O a c re a g e is F e d e ra l a c re a g e M o s th e ld b y p ro d u c tio n b y o ld e r,v e rtic a l w e ls T y p ic a ly % N R Io n m o s tf e d e ra l a c re a g e C o n tig u o u s a c re a g e a id s in fu l d e v e lo p m e n ta n d m in im iz e s c o s ts fo rp a d s,fa c ilitie s a n d L O E M a ta d o ro p e ra te d H o riz o n ta l P la n s (Q ) S S T S ta te S -2 9 E A H # H & # H 2 n d B o n e S p rin g la te ra ls O fs e to M e w b o u rn e G o b b le rw e ls (n o n -o p ) N o n -O p e ra te d We l A c tiv ity C T A S ta te C o m # 3 H :IP (3 0 )9 9 2 B O E /d (8 4 % O il);1 4 3,0 0 0 B O E in firs t7 m o n th s (1 ) C T A S ta te C o m # 4 H :IP (3 0 )8 3 0 B O E /d (8 4 % O il);1 2 6,0 0 0 B O E in firs t6 m o n th s (1 ) G o b b le r5 B 2 P M # 1 H :IP (3 0 )2,3 0 9 B O E /d (8 1 % O il);1 4 0,0 0 0 B O E in firs t4 m o n th s (1 ) M e w b o u rn e,c o n c h o,c im a re x w e ls p ro v id e o p e ra tio n a l d a ta a n d re fe re n c e p o in ts a c ro s s M a ta d o ra c re a g e C T A S ta te C o m 3 H -IP (3 0 ):9 9 2 B O E /d (8 4 % O il)c T A S ta te C o m 4 H -IP (3 0 ):8 3 0 B O E /d (8 4 % O il)s S T S ta te G o b b le r5 B 2 P M 1 H -IP (3 0 ):2,3 0 9 B O E /d (8 1 % O il)a ro w h e a d H E Y C O A c re a g e P ro v id e s U n iq u e O p p o rtu n itie s (1 )A s o fm id -S e p te m b e r

40 F u tu re B itt e c h n o lo g y T h e E v o lu tio n o fth e P D C b it2 9 M a ta d o rc o n tin u e s to b e a th e fo re fro n to fn e w b ite c h n o lo g y S m ith B its la te s te c h n o lo g y S tin g B la d e d e s ig n S tin g B la d e d e s ig n fe a tu re s A lte rn a tin g S tin g e r/p D C c u te rs S tin g e rc u te rs c u tro u g h s in th e fo rm a tio n w ith th e P D C c u te rs c o m in g b e h in d a n d re m o v in g th e rid g e s S tin g e rc u te rs d o th e h a rd w o rk,p D C c u te rs k e e p th e s p e e d U ltim a te c o m b in a tio n o fs p e e d,d u ra b ility a n d s te e ra b ility

41 7,5 0 0 p s i P re s s u re R a tin g E s tim a te d re d u c tio n in d rilin g tim e o f2 0 to 2 5 % in th e la te ra l o n Wo lfc a m p w e ls T e le s c o p in g F le x -jo in t E s tim a te d re d u c tio n in d rilin g tim e o f1 2 to 1 8 h o u rs p e rw e l In te g ra te d M u d -G a s S e p a ra to r E s tim a te d s a v in g s o f5 0 % c o m p a re d to re n ta l s e p a ra to r B O P Wra n g le r E s tim a te d re d u c tio n in d rilin g tim e o f1 2 h o u rs p e rw e l Wa lk in g S y s te m & V -d o o rtu rn e d 9 0 A lo w s fo rb a tc h -d rilin g a n d s im u lta n e o u s o p e ra tio n s R e d u c e d D o w n tim e 3 0 N e w R ig T e c h n o lo g y fo rh o riz o n ta l D rilin g S a v in g T im e a n d M o n e y!

42 L a te s tt e c h n o lo g y :S im u lta n e o u s O p e ra tio n s (S im -O p s )C a p a b le R ig s 3 1 C o n v e n tio n a l D rilin g C o n fig u ra tio n S im -O p s C a p a b le w ith V -d o o rtu rn e d 9 0 S p a c e a v a ila b le fo rfra c o p e ra tio n s w h ile s im u lta n e o u s ly d rilin g o n th e s a m e p a d D rilin g rig m u s tle a v e lo c a tio n p rio rto fra c o p e ra tio n s

43 L o v in g C o u n ty Wo lfc a m p E d d y C o u n ty Wo lfc a m p D rilin g D a y s H is to ric a l We l P la n n e d We l R e c e n twe l Im p ro v in g Wo lfc a m p D rilin g T im e s S ig n ific a n tly in *H is to ric a l d a y s a v e ra g e d fro m w e ls *R e c e n td a y s fro m B ily B u rt9 0 -T T T -B 3 3 WF # H & T ig e r S -2 8 E R B # H

44 C o m p le tio n O v e ra l c o s tre d u c e d b y 5 0 % s in c e firs tw e l C o s to fp u m p in g a n d d ril o u th a s d riv e n d o w n c o s ts D ril o u td a y s d o w n fro m u s in g m ic ro trip s L o w e rs th e o v e ra l tim e p e rp lu g C o s tr e d u c tio n M e tric s (D rilin g a n d C o m p le tio n )3 3 D rilin g O v e ra l c o s tre d u c e d b y 4 3 % s in c e firs tw e l D a y s d o w n fro m 4 3 to 2 2 in th e Wo lfc a m p C o s tim p ro v e m e n ts th a tc a n s ta y w ith u s m o v in g fo rw a rd M a ta d o rwe ls M a ta d o rwe ls D rilin g C o s ts p e rf o o t L o v in g C o u n ty C o m p le tio n C o s tp e rf o o t L o v in g C o u n ty

45 3 4 F lo w in g R o d P u m p in g G a s L iftin g B b l/d B b l/d A c c e le ra te d P ro d u c tio n B e n e fits o fg a s L ift A c c e le ra te s p ro d u c tio n R e d u c e s L O E L o w e rm a in te n a n c e H e lp s w e ls re c o v e rfa s te rfro m o fs e tfra c s A rtific ia l L iftr e d u c in g N a tu ra l P ro d u c tio n D e c lin e s T im e N o te :G ra p h a n d d a ta is fo rilu s tra tiv e p u rp o s e s o n ly a n d n o tm e a n to re fle c th is to ric a l o rfo re c a s te d d a ta fro m a c tu a l w e l.

46 3 5 7,5 0 0 B b l 9,0 0 0 B b l 8,4 0 0 B b l M lb s M lb s M lb s ft ft.5 0 ft.7 5 ft ft.3 5 ft.g e n 1 G e n 2 2,0 0 0 lb s /ft1,3 3 3 lb s /ft4 0 B b l/ft2 0 B b l/ft5 0 c lu s te rs p a c in g 7 5 c lu s te rs p a c in g G e n 1 G e n 2 2,0 0 0 lb s /ft2,0 0 0 lb s /ft4 0 B b l/ft3 0 B b l/ft3 5 c lu s te rs p a c in g 5 0 c lu s te rs p a c in g B o n e S p rin g U p p e rwo lfc a m p L o w e rwo lfc a m p C o u p le d M ic ro -C o u p le d S o u rc e R o c k G e n 1 G e n 2 2,0 0 0 lb s /ft4 0 B b l/ft3 5 c lu s te rs p a c in g T E S T IN G S O O N E v o lu tio n o fp e rm ia n B a s in F ra c D e s ig n R e s e rv o irs p e c ific

47 R O R,% R e a liz e d O il P ric e,$ R u s tle rb re a k s (Wo lfc a m p A -X /Y ) M B O E M B O E,$ 6.5 M M D & C M B O E,$ 5.5 M M D & C M B O E,$ 6.5 M M D & C M B O E,$ 5.5 M M D & C u s e s $ 3 fla tg a s p ric e R O R,% R e a liz e d O il P ric e,$ R u s tle rb re a k s (Wo lfc a m p B ) ,0 0 0 M B O E M B O E,$ 7.5 M M D & C M B O E,$ 6.5 M M D & C M B O E,$ 7.5 M M D & C M B O E,$ 6.5 M M D & C u s e s $ 3 fla tg a s p ric R O R,% R e a liz e d O il P ric e,$ D o ro th y Wh ite (Wo lfc a m p X /Y ) ,0 0 0 M B O E 1,0 0 0 M B O E,$ 8.5 M M D & C 1,0 0 0 M B O E,$ 7 M M D & C M B O E,$ 8.5 M M D & C M B O E,$ 7 M M D & C u s e s $ 3 fla tg a s p ric e R O R,% R e a liz e d O il P ric e,$ R a n g e r3 3 (2 n d B o n e S p rin g ) M B O E M B O E,$ 7 M M D & C M B O E,$ 5.5 M M D & C M B O E,$ 7 M M D & C M B O E,$ 5.5 M M D & C u s e s $ 3 fla tg a s p ric e 3 6 P e rm ia n B a s in E c o n o m ic s O il P ric e S e n s itiv itie s /B b l /B b l /B b l /B b l

48 S ig n ific a n td e la w a re B a s in In v e n to ry M a ta d o rh a s id e n tifie d 1,4 4 5 g ro s s (9 6 0 n e t)lo c a tio n s (1 ) T h is in v e n to ry d o e s n o ty e tin c lu d e th e H E Y C O p ro p e rtie s (m o s tly A ro w h e a d p ro s p e c ta re a )o rt w in L a k e s lo c a tio n s F o rm a tio n G ro s s L o c a tio n s N e tl o c a tio n s D e la w a re G ro u p A v a lo n s tb o n e S p rin g n d B o n e S p rin g rd B o n e S p rin g Wo lfc a m p X /Y Wo lfc a m p A Wo lfc a m p B Wo lfc a m p D T O T A L 1, (1 )Id e n tifie d a n d e n g in e e re d lo c a tio n s fo rp o te n tia l fu tu re d rilin g,in c lu d in g s p e c ifie d p ro d u c tio n u n its a n d e s tim a te d la te ra le n g th s,c o s ts a n d w e l s p a c in g u s in g o b je c tiv e c rite ria fo rd e s ig n a tio n.l o c a tio n s id e n tifie d a s o fd e c e m b e r3 1, ,b u tin c lu d in g n o lo c a tio n s a tt w in L a k e s a n d n o lo c a tio n s a s s o c ia te d w ith th e H E Y C O tra n s a c tio n o rtw o a s s o c ia te d jo in tv e n tu re s.n o te :In v e n to ry o n ly in c lu d e s w e ls w ith > 3 0 % w o rk in g in te re s t.n o te :A l a c re a g e a ta u g u s t3 1, S o m e tra c ts n o ts h o w n o n m a p.d e la w a re B a s in E d d y L e a L o v in g W in k le rwa rd T e x a s N e w M e x ic o C h a v e s WO L F /L O V IN G A R E A R A N G E R T WIN L A K E S P o ta s h M in e M a ta d o rr e s o u rc e s A c re a g e R U S T L E R B R E A K S A R R O WH E A D J a c k s o n T ru s t

49 M id s tre a m

50 3 9 L o v in g C o u n ty,t e x a s N a tu ra l g a s g a th e rin g a n d c o m p re s s io n Wa te rg a th e rin g S a ltw a te rd is p o s a l O il g a th e rin g C ry o g e n ic n a tu ra l g a s p ro c e s s in g p la n t S o ld to E n L in k fo r~ $ m ilio n (2 ) E d d y C o u n ty,n e w M e x ic o N a tu ra l g a s g a th e rin g a n d c o m p re s s io n Wa te rg a th e rin g S a ltw a te rd is p o s a l (u n d e re v a lu a tio n )(1 )L o n g w o o d G a th e rin g a n d D is p o s a l S y s te m s,l P is a n in d ire c tw h o ly o w n e d s u b s id ia ry o fm a ta d o rr e s o u rc e s C o m p a n y.(2 )E x c lu d in g c u s to m a ry p u rc h a s e p ric e a d ju s tm e n ts.s WD = S a ltwa te rd is p o s a l L o n g w o o d G a th e rin g a n d D is p o s a l S y s te m s A c tiv itie s L o n g w o o d G a th e rin g a n d D is p o s a l S y s te m s (1 )in D e la w a re B a s in

51 4 0 L o v in g C o u n ty,t e x a s B ig g e s tm id s tre a m P ro je c to D a te C ry o g e n ic n a tu ra l g a s p ro c e s s in g p la n t s o ld to E n L in k fo r~ $ m ilio n (1 ) N a tu ra l g a s g a th e rin g a n d c o m p re s s io n Wa te rg a th e rin g O il g a th e rin g S a ltw a te rd is p o s a l S WD = S a ltwa te rd is p o s a l R e ta in e d S o ld to E n L in k (1 )E x c lu d in g c u s to m a ry p u rc h a s e p ric e a d ju s tm e n ts.

52 S u m m a ry :S a le o fl o v in g C o u n ty G a s G a th e rin g & P ro c e s s in g A s s e ts (1 )A s u b s id ia ry o fe n L in k M id s tre a m P a rtn e rs,l P (N Y S E :E N L K )(2 )E x c lu d in g c u s to m a ry p u rc h a s e p ric e a d ju s tm e n ts.(3 )N e td e b ta to c to b e r1, L T M A d ju s te d E B IT D A a tj u n e 3 0, A d ju s te d E B IT D A is a n o n -G A A P fin a n c ia l m e a s u re.f o ra d e fin itio n o fa d ju s te d E B IT D A a n d a re c o n c ilia tio n o fa d ju s te d E B IT D A to o u rn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,s e e A p p e n d ix.m a ta d o rs o ld c e rta in D e la w a re B a s in n a tu ra l g a s g a th e rin g a n d p ro c e s s in g a s s e ts in L o v in g C o u n ty,t e x a s to E n L in k (1 )fo r~ $ m ilio n (2 )in c a s h. M a ta d o rs o ld a w h o ly o w n e d s u b s id ia ry w h o s e a s s e ts in c lu d e : C ry o g e n ic n a tu ra l g a s p ro c e s s in g p la n tw ith ~ 3 5 M M c fp e rd a y o fin le tc a p a c ity S ix m ile s o fh ig h -p re s s u re g a th e rin g p ip e lin e w h ic h c o n n e c ts a M a ta d o r-o w n e d g a th e rin g s y s te m to th e p la n t C o n s id e ra tio n fo rs a le $ m ilio n (2 )in c a s h M a ta d o rh a s a b ility to d e fe rta x e s th ro u g h p o te n tia lik e -k in d e x c h a n g e s M a ta d o re n te rs in to 1 5 -y e a r,fix e d fe e g a th e rin g a n d p ro c e s s in g a g re e m e n tw ith E n L in k (1 ) M a ta d o re ta in s p rio rity o n e s e rv ic e in e x c h a n g e fo ra v o lu m e c o m m itm e n t M a ta d o rd e d ic a te s c u re n tl o v in g C o u n ty le a s e h o ld in te re s ts to E n L in k fu tu re le a s e h o ld a c q u is itio n s c a n b e d e d ic a te d to E n L in k a tm a ta d o r s o p tio n M a ta d o re ta in s its n a tu ra l g a s g a th e rin g s y s te m u p to a c e n tra l d e liv e ry p o in ta n d o th e rl o v in g C o u n ty m id s tre a m a s s e ts,in c lu d in g o il a n d w a te rg a th e rin g s y s te m s a n d s a ltw a te rd is p o s a l w e ls S o lid ifie s M a ta d o r s a lre a d y s tro n g b a la n c e s h e e ta n d e n h a n c e s its a m p le liq u id ity to e x e c u te its c a p ita l p la n s in a n d a n d fu rth e rc a p ita liz e o n its c u re n to p p o rtu n itie s in th e D e la w a re B a s in N e td e b t/l T M E B IT D A (3 )o f~ 1.0 x fo lo w in g c lo s in g L iq u id ity o fo v e r$ m ilio n in c lu d in g n o th in g d ra w n a g a in s tc re d itfa c ility a s o fc lo s in g 4 1

53 E a g le F o rd O il B a n k

54 4 3 E a g le F o rd Is S til a V a lu a b le A s s e t 1 2,0 0 0 B O E /d in Q N o te :A l a c re a g e a ta u g u s t3 1, S o m e tra c ts n o ts h o w n o n m a p.(1 )A td e c e m b e r3 1, K a rn e s U v a ld e M e d in a Z a v a la F rio D im m itl a S a le We b b A ta s c o s a M c M u le n L iv e O a k B e e G o lia d D e w itg o n z a le s Wils o n S a n A n to n io G la s s c o c k R a n c h M a rtin R a n c h N o rth c u ta fle c k T ro u ts u to n L o v e C o w e y L e w to n H e n n ig N ic k e l R a n c h C O M B O L IQ U ID S /G A S F A IR WA Y D R Y G A S F A IR WA Y O IL F A IR WA Y E A G L E F O R D A C R E A G E T O T A L S 3 9,7 8 6 g ro s s /2 9,6 5 7 n e ta c re s H a ris N e w m a n P e n a Z L S C a ro l L lo y d H u rts o jo u rn e rs ic k e n iu s L y s s y R e p k a F a ls C ity P a w e le k D a n y s h B is h o p -B ro g a n C a m p b e lto n -H a v e rla h M a ta d o rr e s o u rc e s A c re a g e G ro s s w e ls tu rn e d to s a le s in P la n n e d o p e ra te d D & C o p e ra tio n s c o m p le te d fo r g ro s s (1 7.0 n e t)o p e ra te d w e ls tu rn e d to s a le s O il B a n k fo rfu tu re d e v e lo p m e n t O v e r9 5 % H B P o rn o tb u rd e n e d b y le a s e e x p ira tio n s b e fo re 1 2 /3 1 /1 6 (1 )P u rs u in g a c re a g e a d d itio n s # E A G L E F O R D E A S T ~ 3,7 0 0 g ro s s /~ 2,9 0 0 n e ta c re s M e a s u re d D e p th :1 7, ,0 0 0 We l C o s ts :$ m ilio n 8 0 -a c re s p a c in g E A G L E F O R D C E N T R A L ~ 3,9 0 0 g ro s s /~ 3,9 0 0 n e ta c re s M e a s u re d D e p th :1 5, ,5 0 0 We l C o s ts :$ m ilio n a c re s p a c in g E A G L E F O R D WE S T ~ 1 4,8 0 0 g ro s s /~ 1 2,1 0 0 n e ta c re s M e a s u re d D e p th :1 2, ,5 0 0 We l C o s ts :$ m ilio n a c re s p a c in g

55 G e n 2 G e n 3 G e n 4 G e n 5 5,7 7 0 B b l 7,8 2 5 B b l 9,5 5 0 B b l 1 1,7 5 0 B b l M lb s M lb s M lb s M lb s 1 1,7 5 0 B b l M lb s G e n N o te :F ig u re d e p ic ts p ro p p a n ta n d flu id v o lu m e p u m p e d p e r3 0 0 ft.o fh o riz o n ta l w e lb o re.(1 )M lb s = th o u s a n d s o fp o u n d s o fp ro p p a n tp u m p e d.f lu id V o lu m e P u m p e d P ro p p a n tp u m p e d (1 )G e n M lb s 1 1,7 5 0 B b l ft.e v o lu tio n o fm a ta d o re a g le F o rd F ra c D e s ig n

56 H a y n e s v ile S h a le G a s B a n k

57 H a y n e s v ile N o n -O p P ro g ra m E s tim a te d c a p ita l e x p e n d itu re s o f~ $ 2 5 m ilio n fo rn o n -o p e ra te d w e l p a rtic ip a tio n in te re s ts O n ly ~ 6 % o f e s tim a te d c a p ita l e x p e n d itu re s O rig in a ly b u d g e te d ~ $ 1 5 m ilio n fo r H a y n e s v ile & C o to n V a le y a v e ra g e d a ily n a tu ra l g a s p ro d u c tio n u p o v e r3 -fo ld to M M c f/d in Q fro m M M c f/d in Q g ro s s (3.8 n e t)w e ls tu rn e d to s a le s th ro u g h o u tt ie r1 H a y n e s v ile in In c lu d e s 1 8 g ro s s (3.5 n e t)w e ls tu rn e d to s a le s o n E lm G ro v e p ro p e rtie s o p e ra te d b y C h e s a p e a k e in (s h o w n o n m a p a tle ft) C h e s a p e a k e p la c e d tw o a d d itio n a l w e ls o n p ro d u c tio n in m id -J u ly In itia l ra te s o f~ M M c f/d o fn a tu ra l g a s w ith d rilin g a n d c o m p le tio n c o s ts o f$ 7 to $ 8 m ilio n C u re n tly 9 g ro s s (1.9 n e t)c h e s a p e a k e w e ls a re in p ro g re s s o n o u re lm G ro v e a re a H a y n e s v ile C h e s a p e a k e E lm G ro v e O p e ra tio n s

58 4 7 N o te :In d iv id u a l w e l e c o n o m ic s o n ly.e x c lu d e s c o s ts p rio rto d rilin g (i.e.a c q u is itio n o ra c re a g e c o s ts ).E c o n o m ic s u s e a N R I/WIo f8 5 % b u ta c tu a l in te re s ts v a ry.d & C c o s t= d rilin g a n d c o m p le tio n c o s t $ $ $ $ $ $ R a te o fr e tu rn (% )N a tu ra l G a s P ric e ($ /M c f)$ 6 M M D & C C o s t$ 7 M M D & C C o s t$ 8 M M D & C C o s tm a ta d o r s A d v a n ta g e d E c o n o m ic s N R I s o f8 5 to 9 0 % o n m a n y p ro p e rtie s d u e to O R R I s Im p ro v e d p ric in g :in c re a s e o f~ $ /M M B tu d u e to ta k in g n a tu ra l g a s in k in d L o n g e rla te ra ls a n d b e te rc o m p le tio n te c h n iq u e s E c o n o m ic s o ft ie r1 We ls (1 0 B c f)h a y n e s v ile a te lm G ro v e

59 U p d a te d C a p ita l In v e s tm e n tp la n

60 U p d a te d C a p ita l In v e s tm e n tp la n A th e b e g in n in g o f ,re d u c e d d rilin g p ro g ra m fro m 5 rig s to 2 rig s d u e to lo w e rc o m m o d ity p ric e s,w ith p rim a ry fo c u s o n P e rm ia n (D e la w a re )B a s in In la te J u ly ,to o k d e liv e ry o fa th ird rig in th e D e la w a re B a s in C u re n tly o p e ra tin g 3 rig s a l in th e D e la w a re B a s in N e w -b u ild rig s,la te s te c h n o lo g y a n d d e s ig n e d fo rs im u lta n e o u s o p e ra tio n s (S im -O p s )# o fr Ig s N u m b e ro fo p e ra te d R ig s E a g le F o rd R ig P e rm ia n R ig

61 0 2, , , , , , , E E a g le F o rd P e rm ia n , , , ,1 9 2 (1 )(2 ) E H a y n e s v ile /C V E a g le F o rd P e rm ia n (1 )(3 ) E O il P ro d u c tio n E s tim a te d o il p ro d u c tio n o f4.4 to 4.5 m ilio n b a re ls 3 4 % in c re a s e fro m d e s p ite d e c re a s e d d rilin g A v e ra g e d a ily o il p ro d u c tio n o f1 2,2 0 0 B b l/d,u p fro m 9,1 0 0 B b l/d in E a g le F o rd ~ 7,8 5 0 B b l/d (6 4 %) P e rm ia n ~ 4,3 5 0 B b l/d (3 6 %) Q u a rte rly p ro d u c tio n p e a k s in Q 2 ;Q o il p ro d u c tio n u p 4 to 5 % a s c o m p a re d to Q a n d Q P e rm ia n p ro d u c tio n in c re a s e s o v e rth re e -fo ld in ;E a g le F o rd p ro d u c tio n re la tiv e ly fla t E N a tu ra l G a s P ro d u c tio n E s tim a te d n a tu ra l g a s p ro d u c tio n o f2 6 to 2 7 B c f 7 3 % in c re a s e fro m d e s p ite d e c re a s e d d rilin g ;s ig n ific a n th a y n e s v ile im p a c t Q u a rte rly p ro d u c tio n p e a k s in Q ;Q n a tu ra l g a s p ro d u c tio n u p ~ 2 0 % o v e rq A v e ra g e d a ily n a tu ra l g a s p ro d u c tio n o f7 2.6 M M c f/d,u p fro m M M c f/d in H a y n e s v ile ~ M M c f/d (6 4 %) E a g le F o rd ~ M M c f/d (2 1 %) P e rm ia n ~ M M c f/d (1 5 %) U p d a te d P ro d u c tio n E s tim a te s O il E q u iv a le n tg ro w th o f~ 5 1 %(1 )5 0 O il P ro d u c tio n G ro w th (B b l/d )N a tu ra l G a s P ro d u c tio n G ro w th (M M c f/d )(1 )A tm id p o in to f g u id a n c e ra n g e a s re v is e d o n A u g u s t4, (2 )T h e C o m p a n y ra is e d its o il p ro d u c tio n g u id a n c e to 4.4 to 4.5 m ilio n B b l o n A u g u s t4, fro m 4.1 to 4.3 m ilio n B b l.t h e C o m p a n y h a d p re v io u s ly ra is e d its o il p ro d u c tio n g u id a n c e to 4.1 to 4.3 m ilio n B b l fro m 4.0 to 4.2 m ilio n B b l o n M a y 6, (3 )T h e C o m p a n y ra is e d its n a tu ra l g a s p ro d u c tio n g u id a n c e ra n g e to to B c fro m to B c fo n A u g u s t4,

62 $ $ $ $ $ $ $ 0.0 $ $ $ E $ $ $ $ $ $ $ 0.0 $ $ $ E $ $ $ $ $ $ $ $ $ $ $ $ R e a liz e d O il a n d N a tu ra l G a s P ric e s,$ /B b l a n d $ /M c f E R e v e n u e s a n d A d ju s te d E B IT D A (1 )(2 ) R e v e n u e s a n d A d ju s te d E B IT D A (1 )(2 )g ro w th s ig n ific a n tly im p a c te d b y lo w e re s tim a te d re a liz e d o il a n d n a tu ra l g a s p ric e s E re a liz e d o il p ric e o f~ $ 5 0 /B b l v s ~ $ 8 7 /B b l re a liz e d in E re a liz e d n a tu ra l g a s p ric e o f~ $ /M c fv s ~ $ /M c fin E s tim a te d o il a n d n a tu ra l g a s re v e n u e s o f$ to $ m ilio n In c re a s e d g u id a n c e o n A u g u s t4, fro m $ to $ m ilio n D e c re a s e o f~ 2 0 % fro m $ m ilio n in O il a n d n a tu ra l g a s h e d g e s e s tim a te d to c o n trib u te $ 6 6 m ilio n in a d d itio n a l re v e n u e s in ,a s c o m p a re d to $ 5 m ilio n in E s tim a te d A d ju s te d E B IT D A (1 )(2 )o f$ to $ m ilio n In c re a s e d g u id a n c e o n A u g u s t4, fro m $ to $ m ilio n D e c re a s e o f~ 1 4 % fro m $ m ilio n in ~ 5 0 % o il b y v o lu m e,~ 7 4 % o il b y re v e n u e in (2 );c o m p a re d to ~ 5 7 % o il b y v o lu m e,~ 7 9 % o il b y re v e n u e in U p d a te d C a p ita l In v e s tm e n tp la n (1 )A d ju s te d E B IT D A is a n o n -G A A P fin a n c ia l m e a s u re.f o ra d e fin itio n o fa d ju s te d E B IT D A a n d a re c o n c ilia tio n o fa d ju s te d E B IT D A to o u rn e t(lo s s )in c o m e a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,s e e A p p e n d ix.(2 )E s tim a te d o il a n d n a tu ra l g a s re v e n u e s,a d ju s te d E B IT D A a n d p ro d u c tio n b a s e d u p o n th e m id p o in to f g u id a n c e ra n g e a s re v is e d o n A u g u s t4, P ric e s fo ro il a n d n a tu ra l g a s u s e d in th e s e e s tim a te s w e re $ /B b l (WT Io il p ric e o f$ /B b le s s $ /B b l d ife re n tia ls a n d tra n s p o rta tio n c o s ts )a n d $ /M c f(n Y M E X H e n ry H u b n a tu ra l g a s p ric e a s s u m in g re g io n a l d ife re n tia ls a n d u p lifts fro m n a tu ra l g a s p ro c e s s in g ro u g h ly o fs e t),re s p e c tiv e ly,fo rth e p e rio d J u ly th ro u g h D e c e m b e r a n d w e ig h te d a v e ra g e re a liz e d p ric e s fo rth e p e rio d J a n u a ry th ro u g h J u n e o f$ /B b l a n d $ /M c f.5 1 O il a n d N a tu ra l G a s R e v e n u e s (2 )(m ilio n s )A d ju s te d E B IT D A (1 )(2 )(m ilio n s )

63 E C a p E x o f~ $ m ilio n R e v is e d fro m $ m ilio n o n A u g u s t4, E x c lu d in g C a p E x a s s o c ia te d w ith H E Y C O m e rg e ro ra s s o c ia te d J V s E C a p E x w a s h ig h e s tin Q fa ls q u ic k ly th e re a fte r Q 1 a t$ m ilio n (3 7 %);Q 2 a t$ m ilio n (2 5 %);Q 3 a n d Q 4 a t$ m ilio n to ta l (re m a in in g 3 8 %) R e d u c e d d rilin g p ro g ra m fro m 5 rig s a ty E to 2 rig s b y e n d o fq 1 d u e to lo w e rc o m m o d ity p ric e s,w ith p rim a ry fo c u s o n P e rm ia n (D e la w a re )B a s in E a g le F o rd o p e ra te d d rilin g a n d c o m p le tio n o p e ra tio n s c o m p le te d fo r o v e r9 5 % o fa c re a g e h e ld b y p ro d u c tio n o rn o ts u b je c to n e a r-te rm e x p ira tio n s (1 ) D e la w a re B a s in d rilin g p ro g ra m fo c u s e d o n Wo lfd e v e lo p m e n t,fu rth e rd e lin e a tio n o fr a n g e ra n d R u s tle rb re a k s a re a s a n d in te g ra tio n o fh E Y C O a c re a g e $ 5 to $ 1 0 m ilio n in c re a s e in C a p E x d u e to b e g in n in g to d ril w e ls fa s te r,h ig h e rw o rk in g in te re s ts a n d in c re a s e d fo c u s o n Wo lfc a m p w e ls (v s.s h a lo w e rb o n e S p rin g w e ls ) A d d e d th ird D e la w a re B a s in d rilin g rig in J u ly d u e to s u c c e s s a n d p ro g re s s w ith D e la w a re B a s in p ro g ra m in $ 2 5 to $ 3 0 m ilio n in c re a s e in C a p E x b u tm in im a l p ro d u c tio n im p a c tin S ta rtin g w ith th re e w e l s ta c k in J a c k s o n T ru s t(n E L o v in g C o u n ty )p ro s p e c ta re a H a y n e s v ile d e v e lo p m e n tin c lu d e s c o n tin u e d s e le c tiv e p a rtic ip a tio n in n o n -o p e ra te d w e ls,p rim a rily C H K d rilin g a te lm G ro v e ;H a y n e s v ile a c re a g e ~ % h e ld b y p ro d u c tio n $ 1 0 m ilio n in c re a s e in C a p E x d u e to in c re a s e d d rilin g b y C h e s a p e a k e o n E lm G ro v e p ro p e rtie s ;$ 2 5 m ilio n re p re s e n ts o n ly ~ 6 % o f E C a p E x $ 2 5 to $ 3 0 m ilio n in c re a s e in C a p E x fo rla n d o p p o rtu n itie s in th e D e la w a re B a s in a n d in c re a s e d m id s tre a m in itia tiv e s $ 5 m ilio n in c re a s e in C a p E x d u e to a d d itio n a l n o n -o p w e l p a rtic ip a tio n in th e D e la w a re B a s in U p d a te d C a p ita l In v e s tm e n ts u m m a ry 5 2 (1 )A td e c e m b e r3 1,

64 5 3 S u m m a ry a n d G u id a n c e M o v e d fro m 5 rig s to 2 rig s in e a rly ;c u re n tly o p e ra tin g 3 rig s in D e la w a re B a s in A d d e d th ird d rilin g rig in th e D e la w a re B a s in in la te J u ly D e la w a re d rilin g fo c u s e d o n Wo lfd e v e lo p m e n ta n d fu rth e rd e lin e a tio n o fr a n g e ra n d R u s tle rb re a k s p ro s p e c ta re a s,p lu s in te g ra tio n o fh E Y C O a c re a g e E a g le F o rd d rilin g te m p o ra rily s u s p e n d e d a s o v e r9 5 % o fa c re a g e h e ld -b y -p ro d u c tio n o rn o ts u b je c to n e a r-te rm e x p ira tio n (1 ) P rio ru p d a te d % A c tu a l G u id a n c e G u id a n c e (2 )C h a n g e C a p ita l S p e n d in g $ m ilio n $ m ilio n $ m ilio n -3 0 % T o ta l O il P ro d u c tio n 3.3 m ilio n B b l 4.1 to 4.3 m ilio n B b l(3 )4.4 to 4.5 m ilio n B b l % T o ta l N a tu ra l G a s P ro d u c tio n B c f2 4.0 to B c f2 6.0 to B c f+ 7 3 % O il a n d N a tu ra l G a s R e v e n u e s $ m ilio n $ to $ m ilio n $ to $ m ilio n (4 )-2 0 % A d ju s te d E B IT D A (5 )$ m ilio n $ to $ m ilio n $ to $ m ilio n (4 )-1 4 %(1 )A td e c e m b e r3 1, (2 )T h e C o m p a n y ra is e d its fu l-y e a r g u id a n c e e s tim a te s o n A u g u s t4, (3 )T h e C o m p a n y ra is e d its o il p ro d u c tio n g u id a n c e fro m 4.0 to 4.2 m ilio n B b l to 4.1 to 4.3 m ilio n B b l o n M a y 6, (4 )E s tim a te d o il a n d n a tu ra l g a s re v e n u e s a n d A d ju s te d E B IT D A b a s e d u p o n th e m id p o in to f g u id a n c e ra n g e a s re v is e d o n A u g u s t4, P ric e s fo ro il a n d n a tu ra l g a s u s e d in th e s e e s tim a te s w e re $ /B b l (WT Io il p ric e o f$ /B b le s s $ /B b l d ife re n tia ls a n d tra n s p o rta tio n c o s ts )a n d $ /M c f(n Y M E X H e n ry H u b n a tu ra l g a s p ric e a s s u m in g re g io n a l d ife re n tia ls a n d u p lifts fro m n a tu ra l g a s p ro c e s s in g ro u g h ly o fs e t),re s p e c tiv e ly,fo rth e p e rio d J u ly th ro u g h D e c e m b e r a n d w e ig h te d a v e ra g e re a liz e d p ric e s fo rth e p e rio d J a n u a ry th ro u g h J u n e o f$ /B b l a n d $ /M c f.(5 )A d ju s te d E B IT D A is a n o n -G A A P fin a n c ia l m e a s u re.f o ra d e fin itio n o fa d ju s te d E B IT D A a n d a re c o n c ilia tio n o fa d ju s te d E B IT D A to o u rn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,s e e A p p e n d ix.

65 A p p e n d ix

66 P ro v e n M a n a g e m e n tt e a m E x p e rie n c e d L e a d e rs h ip M a n a g e m e n tt e a m B a c k g ro u n d a n d P rio ra filia tio n s In d u s try E x p e rie n c e M a ta d o re x p e rie n c e J o s e p h Wm.F o ra n F o u n d e r,c h a irm a n a n d C E O -M a ta d o rp e tro le u m C o rp o ra tio n,f o ra n O il C o m p a n y,j a m e s C le o T h o m p s o n J r.3 4 y e a rs S in c e In c e p tio n M a th e w V.H a irfo rd P re s id e n t,c h a iro fo p e ra tin g C o m m ite e -S a m s o n,s o n a t,c o n o c o 3 0 y e a rs S in c e D a v id E.L a n c a s te re V P a n d C F O -S c h lu m b e rg e r,s.a.h o ld itc h & A s s o c ia te s,in c.,d ia m o n d S h a m ro c k 3 5 y e a rs S in c e C ra ig N.A d a m s E V P L a n d,l e g a l & A d m in is tra tio n -B a k e rb o ts L.L.P.,T h o m p s o n & K n ig h tl L P 2 2 y e a rs S in c e V a n H.S in g le to n,ie V P L a n d -S o u th e rn E s c ro w & T itle,v a n B ra n n o n & A s s o c ia te s 1 8 y e a rs S in c e B ra d le y M.R o b in s o n V P R e s e rv o ire n g in e e rin g a n d C T O -S c h lu m b e rg e r,s.a.h o ld itc h & A s s o c ia te s,in c.,m a ra th o n 3 7 y e a rs S in c e In c e p tio n B ily E.G o o d w in V P D rilin g -S a m s o n,c o n o c o 3 0 y e a rs S in c e G.G re g g K ru g V P M a rk e tin g -Wilia m s C o m p a n ie s,s a m s o n,u n itc o rp o ra tio n 3 1 y e a rs S in c e T re n tw.g re e n V P P ro d u c tio n -H E Y C O,B a s s E n te rp ris e s,s c h lu m b e rg e r,s.a.h o ld itc h & A s s o c ia te s,in c.,a m e ra d a H e s s 2 6 y e a rs S in c e R o b e rtt.m a c a lik V P a n d C A O -P io n e e rn a tu ra l R e s o u rc e s,p ric e w a te rh o u s e C o o p e rs (P w C )1 3 y e a rs S in c e K a th ry n L.Wa y n e C o n tro le ra n d T re a s u re r-m a ta d o rp e tro le u m C o rp o ra tio n,m o b il 3 0 y e a rs S in c e In c e p tio n 5 5

67 B o a rd o fd ire c to rs E x p e rtis e a n d S te w a rd s h ip B o a rd M e m b e rs P ro fe s s io n a l E x p e rie n c e B u s in e s s E x p e rtis e D a v id M.L a n e y L e a d D ire c to r-p a s tc h a irm a n,a m tra k B o a rd o fd ire c to rs -F o rm e rp a rtn e r,j a c k s o n Wa lk e rl L P L a w a n d In v e s tm e n ts R e y n a ld A.B a rib a u ltd ire c to r-v ic e P re s id e n t/e n g in e e rin g a n d C o -fo u n d e r,n o rth P la in s E n e rg y,l L C -P re s id e n ta n d C E O,IP R E n e rg y P a rtn e rs,l L C -F o rm e rv ic e P re s id e n t,n e th e rla n d,s e w e l & A s s o c ia te s,in c.o il a n d G a s E x p lo ra tio n & D e v e lo p m e n tg re g o ry E.M itc h e l D ire c to r-p re s id e n ta n d C E O,T o o t n T o tu m F o o d S to re s P e tro le u m R e ta ilin g D r.s te v e n W.O h n im u s D ire c to r-r e tire d V ic e P re s id e n ta n d G e n e ra l M a n a g e r,u n o c a l In d o n e s ia O il a n d G a s O p e ra tio n s C a rlo s M.S e p u lv e d a,j r.d ire c to r-e x e c u tiv e C h a irm a n o fth e B o a rd,t riu m p h B a n c o rp,in c.-r e tire d P re s id e n ta n d C E O,In te rs ta te B a te ry S y s te m In te rn a tio n a l,in c.-d ire c to ra n d A u d itc h a ir,c in e m a rk H o ld in g s,in c.b u s in e s s a n d F in a n c e M a rg a re tb.s h a n n o n D ire c to r-r e tire d V ic e P re s id e n ta n d G e n e ra l C o u n s e l,b J S e rv ic e s C o.-f o rm e rp a rtn e r,a n d re w s K u rth L L P L a w a n d C o rp o ra te G o v e rn a n c e D o n C.S te p h e n s o n D ire c to r-r e tire d P a rtn e r,b a k e rb o ts L.L.P.L a w a n d T a x S tra te g y G e o rg e M.Y a te s D ire c to r-c h a irm a n & C E O o fh E Y C O E n e rg y G ro u p,in c.o il a n d G a s E x p lo ra tio n & D e v e lo p m e n t5 6

68 S p e c ia l B o a rd A d v is o rs P ro fe s s io n a l E x p e rie n c e B u s in e s s E x p e rtis e R o n n e y F.C o le m a n -R e tire d P re s id e n t N o rth A m e ric a,a rc h e r-f o rm e rv ic e P re s id e n tn o rth A m e ric a P u m p in g,b J S e rv ic e s C o.o ilfie ld S e rv ic e s M a rla n W.D o w n e y -R e tire d P re s id e n t,a R C O In te rn a tio n a l -F o rm e rp re s id e n t,s h e l P e c te n In te rn a tio n a l -P a s tp re s id e n to fa m e ric a n A s s o c ia tio n o fp e tro le u m G e o lo g is ts O il a n d G a s E x p lo ra tio n J o h n R.G a s s -V P,E a s te rn H e m is p h e re O p e ra tio n s,n a b o rs D rilin g In te rn a tio n a l L im ite d b a s e d in D u b a i,u A E -P re v io u s ly s p e n t2 8 y e a rs w ith P a rk e rd rilin g C o m p a n y in v a rio u s m a n a g e m e n tro le s O il a n d G a s D rilin g D a v id F.N ic k lin -R e tire d E x e c u tiv e D ire c to ro fe x p lo ra tio n,m a ta d o rr e s o u rc e s C o m p a n y O il a n d G a s E x p lo ra tio n Wa d e I.M a s s a d -M a n a g in g M e m b e r,c le v e la n d C a p ita l M a n a g e m e n t,l L C -F o rm e rly w ith K e y B a n c C a p ita l M a rk e ts a n d R B C C a p ita l M a rk e ts C a p ita l M a rk e ts G re g L.M c M ic h a e l -R e tire d V ic e P re s id e n ta n d G ro u p L e a d e r E n e rg y R e s e a rc h o fa.g.e d w a rd s C a p ita l M a rk e ts D r.j a m e s D.R o b e rts o n -R e tire d V P E x p lo ra tio n,c h ie fg e o p h y s ic is t,a R C O In te rn a tio n a l O il a n d G a s E x p lo ra tio n M ic h a e l C.R y a n -P a rtn e r,b e re n s C a p ita l M a n a g e m e n t-f o rm e rd ire c to r,m a ta d o rr e s o u rc e s C o m p a n y In te rn a tio n a l B u s in e s s a n d F in a n c e W.J. J a c k S le e p e r,j r.-r e tire d P re s id e n t,d e G o ly e ra n d M a c N a u g h to n (Wo rld w id e P e tro le u m C o n s u lta n ts )O il a n d G a s E x e c u tiv e M a n a g e m e n ts p e c ia l B o a rd A d v is o rs E x p e rtis e a n d S te w a rd s h ip 5 7

69 4 2 0, , , , , , , ,0 0 0 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 0 $ 5 0 $ $ $ $ $ , , , , , , , , ,0 0 0 Q Q Q Q Q Q Q Q O il V o l u m e H e d g e d (B b l) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Q Q Q Q Q Q Q Q N a tu ra l G a s V o l u m e s H e d g e d (B c f)h e d g in g P ro file H e d g e s (1 ) O il:0.8 m ilio n b a re ls o fo il h e d g e d fo re m a in d e ro f a tw e ig h te d a v e ra g e flo o ra n d c e ilin g p ric e s o f$ 6 7 /B b l a n d $ 8 5 /B b l,re s p e c tiv e ly A p p ro x im a te ly 7 5 % o fo il h e d g e d fo re m a in d e ro f (2 ) N a tu ra l G a s :4.1 B c fo fn a tu ra l g a s h e d g e d fo re m a in d e ro f a tw e ig h te d a v e ra g e flo o ra n d c e ilin g o f$ /M M B tu a n d $ /M M B tu,re s p e c tiv e ly A p p ro x im a te ly 6 5 % o fn a tu ra l g a s h e d g e d fo re m a in d e ro f (2 ) N a tu ra l G a s L iq u id s :1.0 m ilio n g a lo n s o fn a tu ra l g a s liq u id s h e d g e d fo re m a in d e ro f a tw e ig h te d a v e ra g e p ric e o f$ /g a l O il a n d n a tu ra l g a s h e d g e s e s tim a te d to a d d $ 6 6 m ilio n to p ro je c te d o il a n d n a tu ra l g a s re v e n u e s in H e d g e s O il:1.6 m ilio n B b l o fo il ($ 4 7 /B b flo o ra n d $ 7 5 /B b l c e ilin g ) N a tu ra l G a s :8.4 B c fo fn a tu ra l g a s ($ /M M B tu flo o ra n d $ /M M B tu c e ilin g ) O il H e d g e s (C o s tle s s C o la rs ) N a tu ra l G a s H e d g e s (C o s tle s s C o la rs )(1 )A to c to b e r2, (2 )B a s e d u p o n th e m id p o in to f g u id a n c e ra n g e o f4.4 to 4.5 m ilio n B b l o fo il a s re v is e d u p w a rd o n A u g u s t4, a n d to B c fo fn a tu ra l g a s a s re v is e d u p w a rd o n A u g u s t4, C e ilin g F lo o rc e ilin g F lo o r

70 S tro n g,s u p p o rtiv e b a n k g ro u p le d b y R o y a l B a n k o fc a n a d a B o ro w in g b a s e a t$ m ilio n b a s e d o n D e c e m b e r3 1, re s e rv e s B a n k g ro u p a firm e d $ m ilio n c o n fo rm in g b o ro w in g b a s e in A p ril R e ta in e d fu l $ m ilio n c o n fo rm in g b o ro w in g b a s e u p o n c lo s in g o fs e n io rn o te s o fe rin g N o b o ro w in g s o u ts ta n d in g a to c to b e r1, N e td e b t/a d ju s te d E B IT D A (1 )(2 )o f1.0 x F in a n c ia l c o v e n a n ts M a x im u m T o ta l D e b to A d ju s te d E B IT D A (2 )R a tio o fn o tm o re th a n :1.0 0 U n d e rth is c o v e n a n t,t o ta l D e b tc o u ld b e ~ $ 1.1 b ilio n b a s e d o n L T M A d ju s te d E B IT D A (1 )5 9 C re d ita g re e m e n ts ta tu s (1 )N e td e b ta to c to b e r1, a n d L T M A d ju s te d E B IT D A a tj u n e 3 0, (2 )A d ju s te d E B IT D A is a n o n -G A A P fin a n c ia l m e a s u re.f o ra d e fin itio n o fa d ju s te d E B IT D A a n a re c o n c ilia tio n o fa d ju s te d E B IT D A to o u rn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,s e e A p p e n d ix.t IE R C o n fo rm in g B o ro w in g B a s e U tiliz a tio n L IB O R M a rg in B A S E M a rg in C o m m itm e n tf e e T ie ro n e x < 2 5 % b p s 5 0 b p s b p s T ie rt w o 2 5 % < o r= x < 5 0 % b p s 7 5 b p s b p s T ie rt h re e 5 0 % < o r= x < 7 5 % b p s b p s 5 0 b p s T ie rf o u r7 5 % < o r= x < 9 0 % b p s b p s 5 0 b p s T ie rf iv e 9 0 % < o r= x < % b p s b p s 5 0 b p s

71 N o rth R a n g e r-t w in L a k e s A re a P e n n s y lv a n ia n /Wo lfc a m p P ro d u c tio n D is trib u tio n 6 0 A A M A T A D O R R E S O U R C E S C O M P A N Y P IC K A R D S T A T E # 2 H N o rth e rn D e la w a re H o riz o n ta l P e n n s y lv a n ia n /Wo lfc a m p S h a le T e s tv a c u u m F ie ld T o w n s e n d F ie ld w e ls 2 5 m ilio n B b l,4 9 B c fs a n m a l & L e a m e x F ie ld s C o rb in F ie ld K e m n itz F ie ld 9 4 w e ls 1 9 m ilio n B b l,7 8 B c fs a n m a l a n d L e a m e x F ie ld s 4 0 w e ls 3.4 m ilio n B b l,5.4 B c fv a c u u m F ie ld w e ls 1 9 m ilio n B b l,4 8 B c fa irs trip F ie ld C o rb in F ie ld 7 7 w e ls 7.6 m ilio n B b l,1 8 B c fa irs trip F ie ld 1 4 w e ls m ilio n B b l,0.1 7 B c fwo lfc a m p /U p p e rp e n n s y lv a n ia n P ro d u c tio n ~ 7 4 m ilio n B b l,1 9 0 B c f~ v e rtic a l w e ls ~ 1 4 1,0 0 0 B b l p e rv e rtic a l w e l M a ta d o rr e s o u rc e s A c re a g e N o te :In fo rm a tio n fro m p u b lic s o u rc e s a v a ila b le a s o fn o v e m b e r V a c u u m N a n d N W F ie ld s K e m n itz & L e a F ie ld s B c f= b ilio n s o fc u b ic fe e to fn a tu ra l g a s.

72 G R (C T R ) L L D D P H I0.3 0 N P H I G R (C T R )0.3 0 D P H I0.3 0 N P H I G R (C T R ) IL M L L D D P H I0.3 0 N P H I G R (C T R ) IL M L L D D P H I0.3 0 N P H I G R (C T R ) IL M D P H I0.3 0 N P H I G R (C T R ) IL M L L D D P H I0.3 0 N P H I P e n n s y lv a n ia n /Wo lfc a m p H y b rid P ro d u c tio n T a rg e tin te rv a l A V R A O IL C O M P A N Y E L K O IL C O M P A N Y L e g a c y R e s e rv e s O p e r.c o C M L E X P L O R A T IO N C M L E X P L O R A T IO N M A T A D O R P R O D U C T IO N A B E N A K I1 0 S T A T E # 1 S T A T E `7 `# 1 N O R T H E A S T K E M N IT Z # 3 O S C A S T A T E C O M # 1 B E A M S 1 5 S T A T E # 3 P IC K A R D S T A T E # 2 H P IL O T T O P O F WO L F C A M P L WT S G R R e s.d e n s.n e u t.1 0 M B b l 4 8 M M c f1 9 7 M B b l M M c f1 4 0 M B b l M M c f9 0 M B b l M M c f1 1 M B b l 6 0 M M c ff irs th o riz o n ta l L a n d in g Z o n e in s o u rc e ro c k p la y :o v e rp re s s u re d 0.7 p s i/ftp ro d u c e d 9 1,2 0 0 B O E m o.ip (2 4 h r.)fro m s o u rc e ro c k : B b l/d,2 2 5 M c f/d (8 6 % o il) 1,1 5 0 p s i s u rfa c e p re s s u re 1 8 /6 4 th in c h c h o k e A N o rth A S o u th P ic k a rd # 2 H F u tu re h o riz o n ta la n d in g z o n e s (o il o n p its w h ile d rilin g )in h y b rid re s e rv o irs :p o ro u s,s a n d s to n e /lim e s to n e a n d s o u rc e ro c k.~ T h ic k C u m u la tiv e v o lu m e s p ro d u c e d fro m o ld e rv e rtic a l w e ls F lo w e d o il o n te s tr e g io n a l y p ro d u c ti v e H y b rid T a rg e tin te rv a l 6 1 M M B b l = m ilio n s o fb a re ls o fo il.b c f= b ilio n s o fc u b ic fe e to fn a tu ra l g a s.m M c f= m ilio n s o fc u b ic fe e to fn a tu ra l g a s.

73 6 2 A d ju s te d E B IT D A R e c o n c ilia tio n T h is in v e s to rp re s e n ta tio n in c lu d e s th e n o n -G A A P fin a n c ia l m e a s u re o fa d ju s te d E B IT D A.A d ju s te d E B IT D A is a s u p p le m e n ta l n o n -G A A P fin a n c ia l m e a s u re th a tis u s e d b y m a n a g e m e n ta n d e x te rn a l u s e rs o fc o n s o lid a te d fin a n c ia l s ta te m e n ts,s u c h a s in d u s try a n a ly s ts,in v e s to rs,le n d e rs a n d ra tin g a g e n c ie s. G A A P m e a n s G e n e ra ly A c c e p te d A c c o u n tin g P rin c ip le s in th e U n ite d S ta te s o fa m e ric a.t h e C o m p a n y b e lie v e s A d ju s te d E B IT D A h e lp s ite v a lu a te its o p e ra tin g p e rfo rm a n c e a n d c o m p a re its re s u lts o fo p e ra tio n s fro m p e rio d to p e rio d w ith o u tre g a rd to its fin a n c in g m e th o d s o rc a p ita l s tru c tu re.t h e C o m p a n y d e fin e s A d ju s te d E B IT D A a s e a rn in g s b e fo re in te re s te x p e n s e,in c o m e ta x e s,d e p le tio n,d e p re c ia tio n a n d a m o rtiz a tio n,a c c re tio n o fa s s e tre tire m e n to b lig a tio n s,p ro p e rty im p a irm e n ts,u n re a liz e d d e riv a tiv e g a in s a n d lo s s e s,c e rta in o th e rn o n -c a s h ite m s a n d n o n -c a s h s to c k -b a s e d c o m p e n s a tio n e x p e n s e,a n d n e tg a in o rlo s s o n a s s e ts a le s a n d in v e n to ry im p a irm e n t.a d ju s te d E B IT D A is n o ta m e a s u re o fn e tin c o m e (lo s s )o rn e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s a s d e te rm in e d b y G A A P.A d ju s te d E B IT D A s h o u ld n o tb e c o n s id e re d a n a lte rn a tiv e to,o rm o re m e a n in g fu l th a n,n e tin c o m e (lo s s )o rn e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s a s d e te rm in e d in a c c o rd a n c e w ith G A A P o ra s a n in d ic a to ro fth e C o m p a n y s o p e ra tin g p e rfo rm a n c e o rliq u id ity.c e rta in ite m s e x c lu d e d fro m A d ju s te d E B IT D A a re s ig n ific a n tc o m p o n e n ts o fu n d e rs ta n d in g a n d a s s e s s in g a c o m p a n y s fin a n c ia l p e rfo rm a n c e,s u c h a s a c o m p a n y s c o s to fc a p ita l a n d ta x s tru c tu re.a d ju s te d E B IT D A m a y n o tb e c o m p a ra b le to s im ila rly title d m e a s u re s o fa n o th e rc o m p a n y b e c a u s e a l c o m p a n ie s m a y n o tc a lc u la te A d ju s te d E B IT D A in th e s a m e m a n n e r.t h e fo lo w in g ta b le p re s e n ts th e c a lc u la tio n o fa d ju s te d E B IT D A a n d th e re c o n c ilia tio n o fa d ju s te d E B IT D A to th e G A A P fin a n c ia l m e a s u re s o fn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,re s p e c tiv e ly,th a ta re o fa h is to ric a l n a tu re.wh e re re fe re n c e s a re p ro fo rm a,fo rw a rd -lo o k in g o rp ro s p e c tiv e in n a tu re,a n d n o tb a s e d o n h is to ric a l fa c t,th e ta b le d o e s n o tp ro v id e a re c o n c ilia tio n.t h e C o m p a n y c o u ld n o tp ro v id e s u c h re c o n c ilia tio n s w ith o u tu n d u e h a rd s h ip b e c a u s e s u c h A d ju s te d E B IT D A n u m b e rs a re e s tim a tio n s,a p p ro x im a tio n s a n d /o ra n g e s.in a d d itio n,itw o u ld b e d ific u ltfo rth e C o m p a n y to p re s e n ta d e ta ile d re c o n c ilia tio n o n a c c o u n to fm a n y u n k n o w n v a ria b le s fo rth e re c o n c ilin g ite m s.

74 A d ju s te d E B IT D A R e c o n c ilia tio n T h e fo lo w in g ta b le p re s e n ts o u rc a lc u la tio n o fa d ju s te d E B IT D A a n d re c o n c ilia tio n o fa d ju s te d E B IT D A to th e G A A P fin a n c ia l m e a s u re s o fn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,re s p e c tiv e ly.6 3 (In th o u s a n d s )1 Q Q Q Q Q Q Q Q Q Q Q Q Q Q U n a u d ite d A d ju s te d E B IT D A re c o n c ilia tio n to N e t(lo s s )In c o m e :N e t(lo s s )in c o m e $ 3,8 0 1 $ (6,6 7 6 )$ (9,1 9 7 )$ (2 1,1 8 8 )$ (1 5,5 0 5 )$ 2 5,1 1 9 $ 2 0,1 0 5 $ 1 5,3 7 4 $ 1 6,3 6 3 $ 1 8,2 2 6 $ 2 9,6 1 9 $ 4 6,5 6 3 $ (5 0,2 3 4 )$ (1 5 7,0 9 1 )In te re s te x p e n s e , , , , , , , ,8 6 9 T o ta l in c o m e ta x p ro v is io n (b e n e fit)3,0 6 4 (3,7 1 3 )(5 9 3 )(1 8 8 ) , , , , , ,7 0 1 (2 6,3 9 0 )(8 9,3 5 0 )D e p le tio n,d e p re c ia tio n a n d a m o rtiz a tio n 1 1, , , , , , , , , , , , , ,7 6 8 A c c re tio n o fa s s e tre tire m e n to b lig a tio n s F u l-c o s tc e ilin g im p a irm e n t-3 3, , , , , ,0 2 6 U n re a liz e d (g a in )lo s s o n d e riv a tiv e s 3,2 7 0 (1 5,1 1 4 )1 2, , ,8 2 5 (7,5 2 6 )9, , ,2 3 4 (1 6,2 9 3 )(5 0,3 5 1 )8, ,5 3 2 S to c k -b a s e d c o m p e n s a tio n e x p e n s e (3 6 3 )1 9 1 (5 1 ) , , , , , , , ,7 9 4 N e tlo s s o n a s s e ts a le s a n d in v e n to ry im p a irm e n t A d ju s te d E B IT D A $ 2 1,3 3 8 $ 2 7,9 2 6 $ 2 8,6 3 1 $ 3 8,0 2 9 $ 4 0,6 7 2 $ 4 0,7 7 2 $ 6 1,4 8 5 $ 4 8,8 4 0 $ 5 6,3 4 5 $ 6 9,4 6 4 $ 6 6,8 1 4 $ 7 0,3 2 0 $ 5 0,1 4 6 $ 6 6,6 8 0 (In th o u s a n d s )1 Q Q Q Q Q Q Q Q Q Q Q Q Q Q U n a u d ite d A d ju s te d E B IT D A re c o n c ilia tio n to N e tc a s h P ro v id e d b y O p e ra tin g A c tiv itie s :N e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s $ 5,1 1 0 $ 4 6,4 1 6 $ 2 8,7 9 9 $ 4 3,9 0 3 $ 3 2,2 2 9 $ 5 1,6 8 4 $ 4 3,2 8 0 $ 5 2,2 7 8 $ 3 1,9 4 5 $ 8 1,5 3 0 $ 6 6,8 8 3 $ 7 1,1 2 3 $ 9 3,3 4 6 $ 2 0,0 4 3 N e tc h a n g e in o p e ra tin g a s s e ts a n d lia b ilitie s 1 5,9 2 0 (1 8,4 9 1 )(5 0 0 )(6,2 3 5 )7,1 2 6 (1 2,5 5 3 )1 5,2 6 5 (3,6 3 0 )2 1,7 2 9 (1 5,2 2 1 )(5 8 6 )5 6 (4 5,2 3 4 )4 0,8 4 3 In te re s te x p e n s e , , , , , , , ,8 6 9 C u re n tin c o m e ta x (b e n e fit)p ro v is io n (1 8 8 ) (5 7 6 )1, ,5 3 9 (1 5 6 )(2,5 2 5 )-N e t(in c o m e )lo s s a trib u ta b le to n o n -c o n tro lin g in te re s tin s u b s id ia ry -1 7 (3 6 )(7 5 )A d ju s te d E B IT D A $ 2 1,3 3 8 $ 2 7,9 2 6 $ 2 8,6 3 1 $ 3 8,0 2 9 $ 4 0,6 7 2 $ 4 0,7 7 2 $ 6 1,4 8 5 $ 4 8,8 4 0 $ 5 6,3 4 5 $ 6 9,4 6 4 $ 6 6,8 1 4 $ 7 0,3 2 0 $ 5 0,1 4 6 $ 6 6,6 8 0

75 A d ju s te d E B IT D A R e c o n c ilia tio n T h e fo lo w in g ta b le p re s e n ts o u rc a lc u la tio n o fa d ju s te d E B IT D A a n d re c o n c ilia tio n o fa d ju s te d E B IT D A to th e G A A P fin a n c ia l m e a s u re s o fn e tin c o m e (lo s s )a n d n e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s,re s p e c tiv e ly.6 4 N o te :L T M is la s t1 2 m o n th s.l T M a tl T M a tl T M a t(in th o u s a n d s ) /3 0 / /3 0 / /3 0 / U n a u d ite d A d ju s te d E B IT D A re c o n c ilia tio n to N e tin c o m e (L o s s ):N e tin c o m e (lo s s )$ 1 0 3,8 7 8 ($ 1 4,4 2 5 )$ 6,3 7 7 ($ 1 0,3 0 9 )($ 3 3,2 6 1 )$ 4 5,0 9 4 $ 1 1 0,7 7 1 ($ 2 0,7 7 1 )$ 7 9,5 8 2 ($ 1 3 1,1 4 3 )In te re s te x p e n s e , , , , , ,2 6 1 T o ta l in c o m e ta x (b e n e fit)p ro v is io n 2 0,0 2 3 (9,9 2 5 )3,5 2 1 (5,5 2 1 )(1,4 3 0 )9, ,3 7 5 (7 0 3 )4 3,7 3 0 (7 1,5 3 5 )D e p le tio n,d e p re c ia tio n a n d a m o rtiz a tio n 1 2, , , , , , , , , ,1 4 8 A c c re tio n o fa s s e tre tire m e n to b lig a tio n s F u l-c o s tc e ilin g im p a irm e n t2 2, , , , , , ,1 5 3 U n re a liz e d lo s s (g a in )o n d e riv a tiv e s (3,5 9 2 )2,3 7 5 (3,1 3 9 )(5,1 3 8 )4, ,2 3 2 (5 8,3 0 2 )1 3,9 4 5 (7,3 4 5 )(3 4,5 5 5 )S to c k -b a s e d c o m p e n s a tio n e x p e n s e , , , , , ,0 2 6 N e t(g a in )lo s s o n a s s e ts a le s a n d in v e n to ry im p a irm e n t(1 3 6,9 7 7 ) A d ju s te d E B IT D A $ 1 8,4 1 1 $ 1 5,1 8 4 $ 2 3,6 3 5 $ 4 9,9 1 1 $ 1 1 5,9 2 3 $ 1 9 1,7 7 1 $ 2 6 2,9 4 3 $ 1 4 8,1 0 5 $ 2 4 1,4 6 3 $ 2 5 3,9 6 0 L T M a tl T M a tl T M a t(in h o u s a n d s ) /3 0 / /3 0 / /3 0 / U n a u d ite d A d ju s te d E B IT D A re c o n c ilia tio n to N e tc a s h P ro v id e d b y O p e ra tin g A c tiv itie s :N e tc a s h p ro v id e d b y o p e ra tin g a c tiv itie s $ 2 5,8 5 1 $ 1,7 9 1 $ 2 7,2 7 3 $ 6 1,8 6 8 $ 1 2 4,2 2 8 $ 1 7 9,4 7 0 $ 2 5 1,4 8 1 $ 1 5 6,6 1 4 $ 2 3 2,6 3 6 $ 2 5 1,3 9 5 N e tc h a n g e in o p e ra tin g a s s e ts a n d lia b ilitie s (1 7,8 8 8 )1 5,7 1 7 (2,2 3 0 )(1 2,5 9 4 )(9,3 0 7 )6, ,9 7 8 (1 2,1 6 1 )2,2 9 2 (4,9 2 1 )In te re s te x p e n s e , , , , , ,2 6 1 C u re n tin c o m e ta x (b e n e fit)p ro v is io n $ 1 0,4 4 8 ($ 2,3 2 4 )(1,4 1 1 )(4 6 ) ,0 8 2 (2,6 8 1 )N e t(in c o m e )lo s s a trib u ta b le to n o n -c o n tro lin g in te re s tin s u b s id ia ry (9 4 )A d ju s te d E B IT D A $ 1 8,4 1 1 $ 1 5,1 8 4 $ 2 3,6 3 5 $ 4 9,9 1 1 $ 1 1 5,9 2 3 $ 1 9 1,7 7 1 $ 2 6 2,9 4 3 $ 1 4 8,1 0 5 $ 2 4 1,4 6 3 $ 2 5 3,9 6 0 Y e a re n d e d D e c e m b e r3 1,Y e a re n d e d D e c e m b e r3 1,

76 6 5 P V -1 0 R e c o n c ilia tio n P V -1 0 is a n o n -G A A P fin a n c ia l m e a s u re a n d g e n e ra ly d ife rs fro m S ta n d a rd iz e d M e a s u re,th e m o s td ire c tly c o m p a ra b le G A A P fin a n c ia l m e a s u re,b e c a u s e itd o e s n o tin c lu d e th e e fe c ts o fin c o m e ta x e s o n fu tu re n e tre v e n u e s.p V -1 0 is n o ta n e s tim a te o fth e fa irm a rk e tv a lu e o fth e C o m p a n y 's p ro p e rtie s.m a ta d o ra n d o th e rs in th e in d u s try u s e P V -1 0 a s a m e a s u re to c o m p a re th e re la tiv e s iz e a n d v a lu e o fp ro v e d re s e rv e s h e ld b y c o m p a n ie s a n d o fth e p o te n tia l re tu rn o n in v e s tm e n tre la te d to th e c o m p a n ie s ' p ro p e rtie s w ith o u tre g a rd to th e s p e c ific ta x c h a ra c te ris tic s o fs u c h e n titie s.p V -1 0 m a y b e re c o n c ile d to th e S ta n d a rd iz e d M e a s u re o fd is c o u n te d fu tu re n e tc a s h flo w s a ts u c h d a te s b y re d u c in g P V -1 0 b y th e d is c o u n te d fu tu re in c o m e ta x e s a s s o c ia te d w ith s u c h re s e rv e s.a td e c e m b e r3 1, A td e c e m b e r3 1, A ts e p te m b e r3 0, A td e c e m b e r3 1, A tm a rc h 3 1, A tj u n e 3 0, A ts e p te m b e r3 0, A td e c e m b e r3 1, A tm a rc h 3 1, P V -1 0 (in m ilio n s )$ $ $ $ $ $ $ $ $ D is c o u n te d F u tu re In c o m e T a x e s (in m ilio n s )$ (5.3 )$ (8.8 )$ (1 1.8 )$ (3 3.2 )$ (4 2.2 )$ (2 1.9 )$ (2 9.7 )$ (2 8.6 )$ (3 1.1 )S ta n d a rd iz e d M e a s u re (in m ilio n s )$ $ $ $ $ $ $ $ $ A tj u n e 3 0, A ts e p te m b e r3 0, A td e c e m b e r3 1, A tm a rc h 3 1, A tj u n e 3 0, A ts e p te m b e r3 0, A t D e c e m b e r3 1, A tm a rc h 3 1, A tj u n e 3 0, P V -1 0 (in m ilio n s )$ $ $ $ $ $ $ 1, $ 1, $ D is c o u n te d F u tu re In c o m e T a x e s (in m ilio n s )$ (4 4.7 )$ (5 2.5 )$ (7 6.5 )$ (8 6.2 )$ ( )$ ( )$ ( )$ ( )$ (7 8.7 )S ta n d a rd iz e d M e a s u re (in m ilio n s )$ $ $ $ $ $ $ $ $