Full-Year 2022 Guidance Update
As shown in the table below, effective July 26, 2022, Matador updated its full year 2022 guidance estimates for oil, natural gas and total oil equivalent production and D/C/E capital expenditures, which were originally provided on February 22, 2022. In addition, Matador affirmed its 2022 estimates for midstream capital expenditures.
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2022 Guidance Estimates |
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Guidance Metric |
Actual 2021 Results |
February 22, 2022(1) |
% YoY Change(2) |
July 26, 2022(3) |
% YoY Change(2) |
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Total Oil Production, million Bbl |
17.8 |
21.0 to 22.0 |
+21% |
21.4 to 22.0 |
+22% |
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Total Natural Gas Production, Bcf |
81.7 |
92.0 to 98.0 |
+16% |
93.0 to 98.0 |
+17% |
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Total Oil Equivalent Production, million BOE |
31.5 |
36.3 to 38.3 |
+19% |
36.9 to 38.3 |
+20% |
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D/C/E CapEx(4), millions |
$513 |
$640 to $710 |
+31% |
$765 to $835 |
+56% |
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Midstream CapEx(5), millions |
$31 |
$50 to $60 |
+79% |
$50 to $60 |
+79% |
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Total D/C/E and Midstream CapEx, millions |
$544 |
$690 to $770 |
+34% |
$815 to $895 |
+57% |
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(1) As of and as provided on February 22, 2022. |
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(2) Represents percentage change from 2021 actual results to the midpoint of 2022 guidance, as provided on February 22, 2022 and July 26, 2022, respectively. |
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(3) As of and as affirmed or updated on July 26, 2022. |
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(4) Capital expenditures associated with drilling, completing and equipping wells. |
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(5) Includes Matador’s share of estimated capital expenditures for San Mateo and other wholly-owned midstream projects. Excludes the acquisition of Pronto Midstream. |
The guidance estimates presented in the table above reflect the following key assumptions and modifications for anticipated drilling and completions and midstream activity for full year 2022 as provided on July 26, 2022.
- Matador now expects to turn to sales 80 gross (63.7 net) operated horizontal wells during 2022, an increase of 2.9 net wells from the Company’s prior expectations, primarily as a result of additional working interests from anticipated acreage trades. Most of the wells impacted by these acreage trades are expected to be turned to sales in the fourth quarter of 2022 and will not contribute significantly to Matador’s production in 2022. Matador expects to incur incremental D/C/E capital expenditures of approximately $40 million associated with these additional working interests.
- Matador contracted a seventh drilling rig, which is expected to begin drilling eight wells on the Company’s Rodney Robinson leasehold in western Antelope Ridge in the third quarter of 2022. These eight Rodney Robinson wells are expected to be turned to sales late in the first quarter or early in the second quarter of 2023 rather than in the fourth quarter of 2023. Matador estimates additional D/C/E capital expenditures attributable to the seventh rig and the acceleration of operations at Rodney Robinson to be approximately $55 million in 2022.
- Increases due to anticipated service cost inflation make up only $30 million of the $125 million increase in the Company’s estimates for full year 2022 D/C/E capital expenditures, primarily as a result of Matador’s cost mitigation efforts, as noted above.
- During the first half of 2022, Matador divested certain operated assets in the Eagle Ford shale in South Texas as well as a small portion of its non-operated assets in the Haynesville shale in Northwest Louisiana. The Company received approximately $35 million in proceeds from these asset sales. These divestitures of non-core producing properties are expected to result in a reduction in estimated production in the second half of 2022 of approximately 220,000 BOE, including a decrease of approximately 70,000 barrels of oil and approximately 0.9 Bcf of natural gas.
- Matador estimates that the acceleration of completion operations for the eight Rodney Robinson wells and incremental shut-ins at Stateline due to offset operator completions during the second half of 2022 should result in a reduction in estimated second half production of approximately 315,000 BOE, including a decrease of approximately 180,000 barrels of oil and 0.8 Bcf of natural gas, as compared to prior estimates. These changes in estimates have been already incorporated in the guidance provided on July 26, 2022.
