10-Q 1 mtdr-20220630.htm 10-Q mtdr-20220630
0001520006false2022Q2December 3100015200062022-01-012022-06-3000015200062022-07-26xbrli:shares00015200062022-06-30iso4217:USD00015200062021-12-31iso4217:USDxbrli:shares0001520006us-gaap:OilAndGasMember2022-04-012022-06-300001520006us-gaap:OilAndGasMember2021-04-012021-06-300001520006us-gaap:OilAndGasMember2022-01-012022-06-300001520006us-gaap:OilAndGasMember2021-01-012021-06-300001520006us-gaap:NaturalGasMidstreamMember2022-04-012022-06-300001520006us-gaap:NaturalGasMidstreamMember2021-04-012021-06-300001520006us-gaap:NaturalGasMidstreamMember2022-01-012022-06-300001520006us-gaap:NaturalGasMidstreamMember2021-01-012021-06-300001520006mtdr:NaturalGasSalesMember2022-04-012022-06-300001520006mtdr:NaturalGasSalesMember2021-04-012021-06-300001520006mtdr:NaturalGasSalesMember2022-01-012022-06-300001520006mtdr:NaturalGasSalesMember2021-01-012021-06-3000015200062022-04-012022-06-3000015200062021-04-012021-06-3000015200062021-01-012021-06-300001520006us-gaap:CommonStockMember2021-12-310001520006us-gaap:AdditionalPaidInCapitalMember2021-12-310001520006us-gaap:RetainedEarningsMember2021-12-310001520006us-gaap:TreasuryStockMember2021-12-310001520006us-gaap:ParentMember2021-12-310001520006us-gaap:NoncontrollingInterestMember2021-12-3100015200062022-01-012022-03-310001520006us-gaap:RetainedEarningsMember2022-01-012022-03-310001520006us-gaap:ParentMember2022-01-012022-03-310001520006us-gaap:CommonStockMember2022-01-012022-03-310001520006us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001520006us-gaap:TreasuryStockMember2022-01-012022-03-310001520006us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001520006us-gaap:CommonStockMember2022-03-310001520006us-gaap:AdditionalPaidInCapitalMember2022-03-310001520006us-gaap:RetainedEarningsMember2022-03-310001520006us-gaap:TreasuryStockMember2022-03-310001520006us-gaap:ParentMember2022-03-310001520006us-gaap:NoncontrollingInterestMember2022-03-3100015200062022-03-310001520006us-gaap:RetainedEarningsMember2022-04-012022-06-300001520006us-gaap:ParentMember2022-04-012022-06-300001520006us-gaap:CommonStockMember2022-04-012022-06-300001520006us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001520006us-gaap:TreasuryStockMember2022-04-012022-06-300001520006us-gaap:NoncontrollingInterestMember2022-04-012022-06-300001520006us-gaap:CommonStockMember2022-06-300001520006us-gaap:AdditionalPaidInCapitalMember2022-06-300001520006us-gaap:RetainedEarningsMember2022-06-300001520006us-gaap:TreasuryStockMember2022-06-300001520006us-gaap:ParentMember2022-06-300001520006us-gaap:NoncontrollingInterestMember2022-06-300001520006us-gaap:CommonStockMember2020-12-310001520006us-gaap:AdditionalPaidInCapitalMember2020-12-310001520006us-gaap:RetainedEarningsMember2020-12-310001520006us-gaap:TreasuryStockMember2020-12-310001520006us-gaap:ParentMember2020-12-310001520006us-gaap:NoncontrollingInterestMember2020-12-3100015200062020-12-3100015200062021-01-012021-03-310001520006us-gaap:RetainedEarningsMember2021-01-012021-03-310001520006us-gaap:ParentMember2021-01-012021-03-310001520006us-gaap:CommonStockMember2021-01-012021-03-310001520006us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001520006us-gaap:TreasuryStockMember2021-01-012021-03-310001520006us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001520006us-gaap:CommonStockMember2021-03-310001520006us-gaap:AdditionalPaidInCapitalMember2021-03-310001520006us-gaap:RetainedEarningsMember2021-03-310001520006us-gaap:TreasuryStockMember2021-03-310001520006us-gaap:ParentMember2021-03-310001520006us-gaap:NoncontrollingInterestMember2021-03-3100015200062021-03-310001520006us-gaap:RetainedEarningsMember2021-04-012021-06-300001520006us-gaap:ParentMember2021-04-012021-06-300001520006us-gaap:CommonStockMember2021-04-012021-06-300001520006us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001520006us-gaap:TreasuryStockMember2021-04-012021-06-300001520006us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001520006us-gaap:CommonStockMember2021-06-300001520006us-gaap:AdditionalPaidInCapitalMember2021-06-300001520006us-gaap:RetainedEarningsMember2021-06-300001520006us-gaap:TreasuryStockMember2021-06-300001520006us-gaap:ParentMember2021-06-300001520006us-gaap:NoncontrollingInterestMember2021-06-3000015200062021-06-300001520006mtdr:OilRevenuesMember2022-04-012022-06-300001520006mtdr:OilRevenuesMember2021-04-012021-06-300001520006mtdr:OilRevenuesMember2022-01-012022-06-300001520006mtdr:OilRevenuesMember2021-01-012021-06-300001520006mtdr:NaturalGasRevenuesMember2022-04-012022-06-300001520006mtdr:NaturalGasRevenuesMember2021-04-012021-06-300001520006mtdr:NaturalGasRevenuesMember2022-01-012022-06-300001520006mtdr:NaturalGasRevenuesMember2021-01-012021-06-30xbrli:pure0001520006us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001520006us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001520006mtdr:SeniorNotesDue2026Memberus-gaap:UnsecuredDebtMember2022-06-300001520006mtdr:CreditAgreementMember2022-06-300001520006us-gaap:LetterOfCreditMembermtdr:CreditAgreementMember2022-06-300001520006mtdr:SBALoanCARESActMemberus-gaap:UnsecuredDebtMember2022-03-310001520006mtdr:CreditAgreementMember2022-04-012022-06-300001520006us-gaap:UnsecuredDebtMember2022-06-300001520006us-gaap:SubsequentEventMemberus-gaap:UnsecuredDebtMember2022-07-250001520006us-gaap:LineOfCreditMembermtdr:SanMateoCreditFacilityMember2022-06-300001520006us-gaap:LineOfCreditMembermtdr:SanMateoCreditFacilityMember2022-01-012022-06-300001520006us-gaap:SubsequentEventMemberus-gaap:LineOfCreditMembermtdr:SanMateoCreditFacilityMember2022-07-262022-07-260001520006us-gaap:RevolvingCreditFacilityMembermtdr:ThirdAmendedCreditAgreementMember2022-04-300001520006us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembermtdr:ThirdAmendedCreditAgreementMember2021-12-310001520006us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembermtdr:ThirdAmendedCreditAgreementMember2022-04-300001520006srt:MinimumMembermtdr:ThirdAmendedCreditAgreementMemberus-gaap:BaseRateMember2022-04-012022-04-300001520006mtdr:ThirdAmendedCreditAgreementMemberus-gaap:BaseRateMembersrt:MaximumMember2022-04-012022-04-300001520006srt:MinimumMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembermtdr:ThirdAmendedCreditAgreementMember2022-04-012022-04-300001520006us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembermtdr:ThirdAmendedCreditAgreementMembersrt:MaximumMember2022-04-012022-04-300001520006mtdr:ThirdAmendedCreditAgreementMemberus-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMember2022-04-012022-04-300001520006us-gaap:RevolvingCreditFacilityMembermtdr:ThirdAmendedCreditAgreementMember2022-01-012022-06-300001520006us-gaap:RevolvingCreditFacilityMembermtdr:ThirdAmendedCreditAgreementMember2022-06-300001520006mtdr:A2026NotesOfferingMemberus-gaap:UnsecuredDebtMember2022-06-300001520006mtdr:ServiceBasedRestrictedStockUnitsMember2022-01-012022-06-300001520006mtdr:PerformanceBasedStockUnitsMember2022-01-012022-06-300001520006us-gaap:RestrictedStockMember2022-01-012022-06-300001520006srt:MinimumMembermtdr:PerformanceBasedStockUnitsMember2022-01-012022-06-300001520006mtdr:PerformanceBasedStockUnitsMembersrt:MaximumMember2022-01-012022-06-300001520006mtdr:ServicebasedRestrictedStockUnitsAndPerformanceBasedStockUnitsMember2022-01-012022-06-300001520006mtdr:PerformanceBasedStockUnitsMember2022-04-012022-06-300001520006us-gaap:EmployeeStockMember2022-04-012022-06-3000015200062022-06-302022-06-300001520006mtdr:SanMateoMembermtdr:MatadorResourcesCompanyMember2022-04-012022-06-300001520006mtdr:SanMateoMembermtdr:MatadorResourcesCompanyMember2021-04-012021-06-300001520006mtdr:SanMateoMembermtdr:FivePointMember2022-04-012022-06-300001520006mtdr:SanMateoMembermtdr:FivePointMember2021-04-012021-06-300001520006mtdr:SanMateoMembermtdr:MatadorResourcesCompanyMember2022-01-012022-06-300001520006mtdr:SanMateoMembermtdr:MatadorResourcesCompanyMember2021-01-012021-06-300001520006mtdr:FivePointMembermtdr:MatadorResourcesCompanyMember2021-01-012021-06-300001520006mtdr:SanMateoMembermtdr:FivePointMember2021-01-012021-06-300001520006mtdr:SanMateoMember2022-04-012022-06-300001520006mtdr:SanMateoMember2021-04-012021-06-300001520006mtdr:SanMateoMember2022-01-012022-06-300001520006mtdr:SanMateoMember2021-01-012021-06-300001520006mtdr:SanMateoMember2022-01-012022-03-310001520006mtdr:OpenCostlessCollarContractsMembersrt:OilReservesMembermtdr:DerivativeContractCalculationPeriodOneMember2022-06-30utr:bbliso4217:USDutr:bbl0001520006mtdr:OpenCostlessCollarContractsMembersrt:NaturalGasReservesMembermtdr:DerivativeContractCalculationPeriodOneMember2022-06-300001520006mtdr:OpenCostlessCollarContractsMembersrt:OilReservesMembermtdr:DerivativeContractCalculationPeriodThreeMember2022-06-300001520006mtdr:OpenCostlessCollarContractsMember2022-06-300001520006mtdr:OilBasisSwapMembermtdr:OpenBasisSwapContractsMembermtdr:DerivativeContractCalculationPeriodOneMember2022-06-300001520006mtdr:OpenBasisSwapContractsMember2022-06-300001520006us-gaap:OtherCurrentAssetsMember2022-06-300001520006us-gaap:OtherCurrentLiabilitiesMember2022-06-300001520006us-gaap:OtherCurrentAssetsMember2021-12-310001520006us-gaap:OtherCurrentLiabilitiesMember2021-12-310001520006us-gaap:SalesMembersrt:OilReservesMember2022-04-012022-06-300001520006us-gaap:SalesMembersrt:OilReservesMember2021-04-012021-06-300001520006us-gaap:SalesMembersrt:OilReservesMember2022-01-012022-06-300001520006us-gaap:SalesMembersrt:OilReservesMember2021-01-012021-06-300001520006srt:NaturalGasReservesMemberus-gaap:SalesMember2022-04-012022-06-300001520006srt:NaturalGasReservesMemberus-gaap:SalesMember2021-04-012021-06-300001520006srt:NaturalGasReservesMemberus-gaap:SalesMember2022-01-012022-06-300001520006srt:NaturalGasReservesMemberus-gaap:SalesMember2021-01-012021-06-300001520006us-gaap:SalesMember2022-04-012022-06-300001520006us-gaap:SalesMember2021-04-012021-06-300001520006us-gaap:SalesMember2022-01-012022-06-300001520006us-gaap:SalesMember2021-01-012021-06-300001520006us-gaap:FairValueInputsLevel1Membermtdr:OilDerivativesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001520006mtdr:OilDerivativesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001520006mtdr:OilDerivativesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001520006mtdr:OilDerivativesMemberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001520006us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembermtdr:GasDerivativesMember2022-06-300001520006us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMembermtdr:GasDerivativesMember2022-06-300001520006us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembermtdr:GasDerivativesMember2022-06-300001520006us-gaap:FairValueMeasurementsRecurringMembermtdr:GasDerivativesMember2022-06-300001520006us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001520006us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001520006us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-06-300001520006us-gaap:FairValueMeasurementsRecurringMember2022-06-300001520006us-gaap:FairValueInputsLevel1Membermtdr:OilDerivativesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001520006mtdr:OilDerivativesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001520006mtdr:OilDerivativesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001520006mtdr:OilDerivativesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001520006us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMembermtdr:GasDerivativesMember2021-12-310001520006us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMembermtdr:GasDerivativesMember2021-12-310001520006us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembermtdr:GasDerivativesMember2021-12-310001520006us-gaap:FairValueMeasurementsRecurringMembermtdr:GasDerivativesMember2021-12-310001520006us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001520006us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001520006us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001520006us-gaap:FairValueMeasurementsRecurringMember2021-12-310001520006mtdr:SeniorNotesDue2023Memberus-gaap:UnsecuredDebtMember2022-06-300001520006mtdr:SeniorNotesDue2023Memberus-gaap:UnsecuredDebtMember2021-12-310001520006mtdr:DeliveryOfNaturalGasAndOilProductionToThirdPartiesMember2022-04-012022-06-300001520006mtdr:DeliveryOfNaturalGasAndOilProductionToThirdPartiesMember2021-04-012021-06-300001520006mtdr:DeliveryOfNaturalGasAndOilProductionToThirdPartiesMember2022-01-012022-06-300001520006mtdr:DeliveryOfNaturalGasAndOilProductionToThirdPartiesMember2021-01-012021-06-300001520006mtdr:DeliveryOfNaturalGasAndOilProductionToThirdPartiesMember2022-06-300001520006mtdr:SanMateoMidstreamMemberus-gaap:CorporateJointVentureMembermtdr:RustlerBreaksandWolfAssetAreaMember2017-02-172017-02-170001520006mtdr:SanMateoMidstreamMemberus-gaap:CorporateJointVentureMembermtdr:RustlerBreaksAssetAreaMember2017-02-172017-02-170001520006mtdr:OperationalAgreementsMembermtdr:SanMateoMidstreamMember2022-06-300001520006mtdr:AccruedEvaluatedAndUnprovedAndUnevaluatedPropertyCostsMember2022-06-300001520006mtdr:AccruedEvaluatedAndUnprovedAndUnevaluatedPropertyCostsMember2021-12-310001520006mtdr:AccruedSupportEquipmentAndFacilitiesCostsMember2022-06-300001520006mtdr:AccruedSupportEquipmentAndFacilitiesCostsMember2021-12-310001520006mtdr:AccruedLeaseOperatingExpensesMember2022-06-300001520006mtdr:AccruedLeaseOperatingExpensesMember2021-12-310001520006mtdr:AccruedInterestOnBorrowingsUnderCreditAgreementMember2022-06-300001520006mtdr:AccruedInterestOnBorrowingsUnderCreditAgreementMember2021-12-310001520006mtdr:AccruedAssetRetirementObligationsMember2022-06-300001520006mtdr:AccruedAssetRetirementObligationsMember2021-12-310001520006mtdr:AccruedPartnersShareOfJointInterestChargesMember2022-06-300001520006mtdr:AccruedPartnersShareOfJointInterestChargesMember2021-12-310001520006mtdr:AccruedPayableRelatedToPurchasedNaturalGasMember2022-06-300001520006mtdr:AccruedPayableRelatedToPurchasedNaturalGasMember2021-12-310001520006mtdr:OtherAccruedLiabilityMember2022-06-300001520006mtdr:OtherAccruedLiabilityMember2021-12-310001520006mtdr:MineralPropertiesMember2022-01-012022-06-300001520006mtdr:MineralPropertiesMember2021-01-012021-06-30mtdr:segment0001520006mtdr:SummitMidstreamMember2022-06-30mtdr:compressorStationutr:mi0001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OilAndGasMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001520006us-gaap:OilAndGasMemberus-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2022-04-012022-06-300001520006us-gaap:CorporateNonSegmentMemberus-gaap:OilAndGasMember2022-04-012022-06-300001520006us-gaap:IntersegmentEliminationMemberus-gaap:OilAndGasMember2022-04-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:NaturalGasMidstreamMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001520006us-gaap:NaturalGasMidstreamMemberus-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2022-04-012022-06-300001520006us-gaap:CorporateNonSegmentMemberus-gaap:NaturalGasMidstreamMember2022-04-012022-06-300001520006us-gaap:IntersegmentEliminationMemberus-gaap:NaturalGasMidstreamMember2022-04-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMembermtdr:NaturalGasSalesMember2022-04-012022-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMembermtdr:NaturalGasSalesMember2022-04-012022-06-300001520006us-gaap:CorporateNonSegmentMembermtdr:NaturalGasSalesMember2022-04-012022-06-300001520006us-gaap:IntersegmentEliminationMembermtdr:NaturalGasSalesMember2022-04-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMember2022-04-012022-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2022-04-012022-06-300001520006us-gaap:CorporateNonSegmentMember2022-04-012022-06-300001520006us-gaap:IntersegmentEliminationMember2022-04-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMember2022-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2022-06-300001520006us-gaap:CorporateNonSegmentMember2022-06-300001520006us-gaap:IntersegmentEliminationMember2022-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMemberus-gaap:OperatingIncomeLossMember2022-04-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OilAndGasMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001520006us-gaap:OilAndGasMemberus-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2021-04-012021-06-300001520006us-gaap:CorporateNonSegmentMemberus-gaap:OilAndGasMember2021-04-012021-06-300001520006us-gaap:IntersegmentEliminationMemberus-gaap:OilAndGasMember2021-04-012021-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:NaturalGasMidstreamMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001520006us-gaap:NaturalGasMidstreamMemberus-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2021-04-012021-06-300001520006us-gaap:CorporateNonSegmentMemberus-gaap:NaturalGasMidstreamMember2021-04-012021-06-300001520006us-gaap:IntersegmentEliminationMemberus-gaap:NaturalGasMidstreamMember2021-04-012021-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMembermtdr:NaturalGasSalesMember2021-04-012021-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMembermtdr:NaturalGasSalesMember2021-04-012021-06-300001520006us-gaap:CorporateNonSegmentMembermtdr:NaturalGasSalesMember2021-04-012021-06-300001520006us-gaap:IntersegmentEliminationMembermtdr:NaturalGasSalesMember2021-04-012021-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMember2021-04-012021-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2021-04-012021-06-300001520006us-gaap:CorporateNonSegmentMember2021-04-012021-06-300001520006us-gaap:IntersegmentEliminationMember2021-04-012021-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMember2021-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2021-06-300001520006us-gaap:CorporateNonSegmentMember2021-06-300001520006us-gaap:IntersegmentEliminationMember2021-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OilAndGasMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300001520006us-gaap:OilAndGasMemberus-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2022-01-012022-06-300001520006us-gaap:CorporateNonSegmentMemberus-gaap:OilAndGasMember2022-01-012022-06-300001520006us-gaap:IntersegmentEliminationMemberus-gaap:OilAndGasMember2022-01-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:NaturalGasMidstreamMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300001520006us-gaap:NaturalGasMidstreamMemberus-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2022-01-012022-06-300001520006us-gaap:CorporateNonSegmentMemberus-gaap:NaturalGasMidstreamMember2022-01-012022-06-300001520006us-gaap:IntersegmentEliminationMemberus-gaap:NaturalGasMidstreamMember2022-01-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMembermtdr:NaturalGasSalesMember2022-01-012022-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMembermtdr:NaturalGasSalesMember2022-01-012022-06-300001520006us-gaap:CorporateNonSegmentMembermtdr:NaturalGasSalesMember2022-01-012022-06-300001520006us-gaap:IntersegmentEliminationMembermtdr:NaturalGasSalesMember2022-01-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMember2022-01-012022-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2022-01-012022-06-300001520006us-gaap:CorporateNonSegmentMember2022-01-012022-06-300001520006us-gaap:IntersegmentEliminationMember2022-01-012022-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMemberus-gaap:OperatingIncomeLossMember2022-01-012022-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OilAndGasMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300001520006us-gaap:OilAndGasMemberus-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2021-01-012021-06-300001520006us-gaap:CorporateNonSegmentMemberus-gaap:OilAndGasMember2021-01-012021-06-300001520006us-gaap:IntersegmentEliminationMemberus-gaap:OilAndGasMember2021-01-012021-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:NaturalGasMidstreamMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300001520006us-gaap:NaturalGasMidstreamMemberus-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2021-01-012021-06-300001520006us-gaap:CorporateNonSegmentMemberus-gaap:NaturalGasMidstreamMember2021-01-012021-06-300001520006us-gaap:IntersegmentEliminationMemberus-gaap:NaturalGasMidstreamMember2021-01-012021-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMembermtdr:NaturalGasSalesMember2021-01-012021-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMembermtdr:NaturalGasSalesMember2021-01-012021-06-300001520006us-gaap:CorporateNonSegmentMembermtdr:NaturalGasSalesMember2021-01-012021-06-300001520006us-gaap:IntersegmentEliminationMembermtdr:NaturalGasSalesMember2021-01-012021-06-300001520006mtdr:ExplorationandProductionSegmentMemberus-gaap:OperatingSegmentsMember2021-01-012021-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMember2021-01-012021-06-300001520006us-gaap:CorporateNonSegmentMember2021-01-012021-06-300001520006us-gaap:IntersegmentEliminationMember2021-01-012021-06-300001520006us-gaap:OperatingSegmentsMembermtdr:MidstreamSegmentMemberus-gaap:OperatingIncomeLossMember2021-01-012021-06-300001520006mtdr:PropertiesInLeaAndEddyNMMember2021-12-142021-12-140001520006mtdr:PropertiesInLeaAndEddyNMMembersrt:MinimumMember2021-12-142021-12-140001520006mtdr:PropertiesInLeaAndEddyNMMember2021-12-312022-03-310001520006mtdr:PropertiesInLeaAndEddyNMMember2022-01-012022-06-300001520006mtdr:PropertiesInLeaAndEddyNMMember2022-06-300001520006mtdr:PropertiesInLeaAndEddyNMMember2022-06-302022-06-300001520006mtdr:PropertiesInLeaAndEddyNMMember2021-12-140001520006mtdr:SummitMidstreamMember2022-06-302022-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ________________________________________________________ 
FORM 10-Q
 _________________________________________________________  
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to            
Commission File Number 001-35410
 _________________________________________________________  
Matador Resources Company
(Exact name of registrant as specified in its charter)
  _________________________________________________________ 
Texas27-4662601
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
5400 LBJ Freeway, Suite 1500
Dallas, Texas
75240
(Address of principal executive offices)(Zip Code)
(972) 371-5200
(Registrant’s telephone number, including area code)
 _________________________________________________________  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareMTDRNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.       Yes      No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes      No
As of July 26, 2022, there were 118,118,082 shares of the registrant’s common stock, par value $0.01 per share, outstanding.


MATADOR RESOURCES COMPANY
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2022
TABLE OF CONTENTS
 Page


Part I — FINANCIAL INFORMATION
Item 1. Financial Statements — Unaudited
Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In thousands, except par value and share data)
June 30,
2022
December 31,
2021
ASSETS
Current assets
Cash$230,394 $48,135 
Restricted cash51,889 38,785 
Accounts receivable
Oil and natural gas revenues328,758 164,242 
Joint interest billings102,646 48,366 
Other26,965 28,808 
Derivative instruments3,861 1,971 
Lease and well equipment inventory13,179 12,188 
Prepaid expenses and other current assets43,235 28,810 
Total current assets800,927 371,305 
Property and equipment, at cost
Oil and natural gas properties, full-cost method
Evaluated6,352,486 6,007,325 
Unproved and unevaluated971,185 964,714 
Midstream properties1,011,017 900,979 
Other property and equipment30,871 30,123 
Less accumulated depletion, depreciation and amortization(4,261,984)(4,046,456)
Net property and equipment4,103,575 3,856,685 
Other assets
Other long-term assets 59,374 34,163 
Total assets$4,963,876 $4,262,153 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable$39,526 $26,256 
Accrued liabilities226,306 253,283 
Royalties payable150,898 94,359 
Amounts due to affiliates15,476 27,324 
Derivative instruments63,338 16,849 
Advances from joint interest owners18,931 18,074 
Income taxes payable38,170  
Other current liabilities56,494 28,692 
Total current liabilities609,139 464,837 
Long-term liabilities
Borrowings under Credit Agreement 100,000 
Borrowings under San Mateo Credit Facility420,000 385,000 
Senior unsecured notes payable900,261 1,042,580 
Asset retirement obligations38,392 41,689 
Deferred income taxes235,534 77,938 
Other long-term liabilities18,499 22,721 
Total long-term liabilities1,612,686 1,669,928 
Commitments and contingencies (Note 9)
Shareholders’ equity
Common stock - $0.01 par value, 160,000,000 shares authorized; 118,201,399 and 117,861,923 shares issued; and 118,130,068 and 117,850,233 shares outstanding, respectively
1,182 1,179 
Additional paid-in capital2,090,564 2,077,592 
Retained earnings (accumulated deficit)439,780 (171,318)
Treasury stock, at cost, 71,331 and 11,945 shares, respectively
(2,356)(243)
Total Matador Resources Company shareholders’ equity2,529,170 1,907,210 
Non-controlling interest in subsidiaries212,881 220,178 
Total shareholders’ equity2,742,051 2,127,388 
Total liabilities and shareholders’ equity$4,963,876 $4,262,153 




The accompanying notes are an integral part of these financial statements.
3

Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS — UNAUDITED
(In thousands, except per share data)
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Revenues
Oil and natural gas revenues$892,769 $412,074 $1,519,284 $728,307 
Third-party midstream services revenues21,886 19,850 39,192 35,288 
Sales of purchased natural gas60,008 10,918 79,347 15,428 
Realized loss on derivatives(61,163)(42,611)(83,602)(68,524)
Unrealized gain (loss) on derivatives30,430 (42,804)(44,599)(86,227)
Total revenues943,930 357,427 1,509,622 624,272 
Expenses
Production taxes, transportation and processing85,658 43,843 145,477 78,017 
Lease operating39,857 28,752 73,812 54,691 
Plant and other midstream services operating22,014 13,746 41,475 27,409 
Purchased natural gas56,440 9,628 73,461 12,483 
Depletion, depreciation and amortization120,024 91,444 215,877 166,307 
Accretion of asset retirement obligations517 511 1,060 1,011 
General and administrative24,431 24,397 54,164 46,585 
Total expenses348,941 212,321 605,326 386,503 
Operating income594,989 145,106 904,296 237,769 
Other income (expense)
Net loss on asset sales and impairment  (198) 
Interest expense(18,492)(17,940)(34,744)(37,590)
Other (expense) income(4,342)14 (4,486)(661)
Total other expense(22,834)(17,926)(39,428)(38,251)
Income before income taxes572,155 127,180 864,868 199,518 
Income tax provision
Current36,261  51,670  
Deferred99,699 5,349 152,818 8,189 
Total income tax provision135,960 5,349 204,488 8,189 
Net income436,195 121,831 660,380 191,329 
Net income attributable to non-controlling interest in subsidiaries(20,477)(15,926)(37,538)(24,779)
Net income attributable to Matador Resources Company shareholders$415,718 $105,905 $622,842 $166,550 
Earnings per common share
Basic$3.52 $0.91 $5.28 $1.43 
Diluted$3.47 $0.89 $5.20 $1.40 
Weighted average common shares outstanding
Basic118,103 116,801 118,027 116,804 
Diluted119,903 118,993 119,857 118,617 
The accompanying notes are an integral part of these financial statements.
4

Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED
(In thousands)
For the Three and Six Months Ended June 30, 2022
Total shareholders’ equity attributable to Matador Resources Company
Non-controlling interest in subsidiariesTotal shareholders’ equity
 Common StockAdditional
paid-in capital
Retained earnings (accumulated deficit)Treasury Stock
 SharesAmountSharesAmount
Balance at January 1, 2022117,862 $1,179 $2,077,592 $(171,318)12 $(243)$1,907,210 $220,178 $2,127,388 
Dividends declared ($0.05 per share)
— — — (5,866)— — (5,866)— (5,866)
Issuance of common stock pursuant to employee stock compensation plan205 2 (11,536)— — — (11,534)— (11,534)
Stock-based compensation expense related to equity-based awards including amounts capitalized— — 4,344 — — — 4,344 — 4,344 
Stock options exercised, net of options forfeited in net share settlements24 — (585)— — — (585)— (585)
Restricted stock forfeited— — — — 12 (66)(66)— (66)
Contribution related to formation of San Mateo, net of tax of $4.8 million (see Note 6)
— — 17,973 — — — 17,973 — 17,973 
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries— — — — — — — (18,375)(18,375)
Current period net income— — — 207,124 — — 207,124 17,061 224,185 
Balance at March 31, 2022118,091 $1,181 $2,087,788 $29,940 24 $(309)$2,118,600 $218,864 $2,337,464 
Dividends declared ($0.05 per share)
— — — (5,878)— — (5,878)— (5,878)
Issuance of common stock pursuant to employee stock compensation plan10 — — — — — — — — 
Issuance of common stock pursuant to directors’ and advisors’
compensation plan
25 — — — — — — — — 
Stock-based compensation expense related to equity-based awards including amounts capitalized— — 5,383 — — — 5,383 — 5,383 
Stock options exercised, net of options forfeited in net share settlements75 1 (2,607)— — — (2,606)— (2,606)
Restricted stock forfeited— — — — 47 (2,047)(2,047)— (2,047)
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries— — — — — — — (26,460)(26,460)
Current period net income— — — 415,718 — — 415,718 20,477 436,195 
Balance at June 30, 2022118,201 $1,182 $2,090,564 $439,780 71 $(2,356)$2,529,170 $212,881 $2,742,051 






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

Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY — UNAUDITED
(In thousands)
For the Three and Six Months Ended June 30, 2021
Total shareholders’ equity attributable to Matador Resources Company
Non-controlling interest in subsidiariesTotal shareholders’ equity
 Common StockAdditional
paid-in capital
Accumulated deficitTreasury Stock
 SharesAmountSharesAmount
Balance at January 1, 2021116,847 $1,169 $2,027,069 $(741,705)2 $(3)$1,286,530 $226,495 $1,513,025 
Dividends declared ($0.025 per share)
— — — (2,913)— — (2,913)— (2,913)
Issuance of common stock pursuant to employee stock compensation plan3 — — — — — — — — 
Issuance of common stock pursuant to directors’ and advisors’
compensation plan
9 — — — — — — — — 
Stock-based compensation expense related to equity-based awards including amounts capitalized— — 1,477 — — — 1,477 — 1,477 
Stock options exercised, net of options forfeited in net share settlements13 — — — — — — — — 
Restricted stock forfeited— — (219)— 90 (1,501)(1,720)— (1,720)
Contribution related to formation of San Mateo (see Note 6)— — 15,376 — — — 15,376 — 15,376 
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries— — — — — — — (14,210)(14,210)
Current period net income— — — 60,645 — — 60,645 8,853 69,498 
Balance at March 31, 2021116,872 $1,169 $2,043,703 $(683,973)92 $(1,504)$1,359,395 $221,138 $1,580,533 
Dividends declared ($0.025 per share)
— — — (2,913)— — (2,913)— (2,913)
Issuance of common stock pursuant to employee stock compensation plan138 1 (1)— — — — — — 
Issuance of common stock pursuant to directors’ and advisors’ compensation plan73 1 (1)— — — — — — 
Stock-based compensation expense related to equity-based awards including amounts capitalized— — 2,289 — — — 2,289 — 2,289 
Stock options exercised, net of options forfeited in net share settlements40 — — — — — — — — 
Restricted stock forfeited— — (425)— 38 (739)(1,164)— (1,164)
Contribution related to formation of San Mateo (see Note 6)— — 16,250 — — — 16,250 — 16,250 
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries— — — — — — — (14,700)(14,700)
Current period net income— — — 105,905 — — 105,905 15,926 121,831 
Balance at June 30, 2021117,123 $1,171 $2,061,815 $(580,981)130 $(2,243)$1,479,762 $222,364 $1,702,126 
The accompanying notes are an integral part of these financial statements.
6

Matador Resources Company and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(In thousands)
 Six Months Ended
June 30,
 20222021
Operating activities
Net income$660,380 $191,329 
Adjustments to reconcile net income to net cash provided by operating activities
Unrealized loss on derivatives44,599 86,227 
Depletion, depreciation and amortization215,877 166,307 
Accretion of asset retirement obligations1,060 1,011 
Stock-based compensation expense7,077 2,650 
Deferred income tax provision152,818 8,189 
Amortization of debt issuance cost and other debt-related costs1,206 1,655 
Net loss on asset sales and impairment198  
Changes in operating assets and liabilities
Accounts receivable(211,023)(78,900)
Lease and well equipment inventory(829)(437)
Prepaid expenses and other current assets(14,717)(4,483)
Other long-term assets227 91 
Accounts payable, accrued liabilities and other current liabilities30,492 34,345 
Royalties payable56,539 16,207 
Advances from joint interest owners857 2,017 
Income taxes payable38,170  
Other long-term liabilities(7,675)1,387 
Net cash provided by operating activities975,256 427,595 
Investing activities
Drilling, completion and equipping capital expenditures(389,893)(210,725)
Acquisition of oil and natural gas properties(73,114)(15,356)
Midstream capital expenditures(28,310)(25,092)
Acquisition of midstream assets(75,816) 
Expenditures for other property and equipment(283)(245)
Proceeds from sale of assets46,412 296 
Net cash used in investing activities(521,004)(251,122)
Financing activities
Purchase of senior unsecured notes(142,404) 
Repayments of borrowings under Credit Agreement(300,000)(240,000)
Borrowings under Credit Agreement200,000 40,000 
Repayments of borrowings under San Mateo Credit Facility(70,000)(34,000)
Borrowings under San Mateo Credit Facility105,000 52,500 
Cost to amend credit facilities(506)(830)
Dividends paid(11,744)(5,826)
Contributions related to formation of San Mateo22,750 31,626 
Distributions to non-controlling interest owners of less-than-wholly-owned subsidiaries(44,835)(28,910)
Taxes paid related to net share settlement of stock-based compensation(16,852)(2,884)
Other(298)(324)
Net cash used in financing activities(258,889)(188,648)
Increase (decrease) in cash and restricted cash195,363 (12,175)
Cash and restricted cash at beginning of period86,920 91,383 
Cash and restricted cash at end of period$282,283 $79,208 
Supplemental disclosures of cash flow information (Note 10)

The accompanying notes are an integral part of these financial statements.
7

Matador Resources Company and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —
UNAUDITED
NOTE 1 — NATURE OF OPERATIONS
Matador Resources Company, a Texas corporation (“Matador” and, collectively with its subsidiaries, the “Company”), 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. The Company’s current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, the Company conducts midstream operations in support of the Company’s exploration, development and production operations and provides natural gas processing, oil transportation services, oil, natural gas and produced water gathering services and produced water disposal services to third parties.
NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interim Financial Statements, Basis of Presentation, Consolidation and Significant Estimates
The interim unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) but do not include all of the information and footnotes required by generally accepted accounting principles in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 (the “Annual Report”). The Company consolidates certain subsidiaries and joint ventures that are less than wholly-owned and are not involved in oil and natural gas exploration, including its midstream joint venture, San Mateo Midstream, LLC (collectively with its subsidiaries, “San Mateo”), and the net income and equity attributable to the non-controlling interest in these subsidiaries have been reported separately as required by Accounting Standards Codification, Consolidation (Topic 810). The Company proportionately consolidates certain joint ventures that are less than wholly-owned and are involved in oil and natural gas exploration. All intercompany accounts and transactions have been eliminated in consolidation. In management’s opinion, these interim unaudited condensed consolidated financial statements include all normal, recurring adjustments that are necessary for a fair presentation of the Company’s interim unaudited condensed consolidated financial statements as of June 30, 2022. Amounts as of December 31, 2021 are derived from the Company’s audited consolidated financial statements included in the Annual Report.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company’s interim unaudited condensed consolidated financial statements are based on a number of significant estimates, including oil and natural gas revenues, accrued assets and liabilities, stock-based compensation, valuation of derivative instruments, deferred tax assets and liabilities and oil and natural gas reserves. The estimates of oil and natural gas reserves quantities and future net cash flows are the basis for the calculations of depletion and impairment of oil and natural gas properties, as well as estimates of asset retirement obligations and certain tax accruals. While the Company believes its estimates are reasonable, changes in facts and assumptions or the discovery of new information may result in revised estimates. Actual results could differ from these estimates.
8

Matador Resources Company and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —
UNAUDITED — CONTINUED

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
Revenues
The following table summarizes the Company’s total revenues and revenues from contracts with customers on a disaggregated basis for the three and six months ended June 30, 2022 and 2021 (in thousands).
Three Months Ended
June 30,
Six Months Ended
June 30,
2022202120222021
Revenues from contracts with customers$974,663 $442,842 $1,637,823 $779,023 
Realized loss on derivatives(61,163)(42,611)(83,602)(68,524)
Unrealized gain (loss) on derivatives30,430 (42,804)(44,599)(86,227)
Total revenues$943,930 $357,427 $1,509,622 $624,272 
Three Months Ended
June 30,
Six Months Ended
June 30,
2022202120222021
Oil revenues$650,233 $315,114 $1,110,355 $528,393 
Natural gas revenues242,536 96,960 408,929 199,914 
Third-party midstream services revenues21,886 19,850 39,192 35,288 
Sales of purchased natural gas60,008 10,918 79,347 15,428 
Total revenues from contracts with customers$974,663 $442,842 $1,637,823 $779,023 

Property and Equipment
The Company uses the full-cost method of accounting for its investments in oil and natural gas properties. Under this method, the Company is required to perform a ceiling test each quarter that determines a limit, or ceiling, on the capitalized costs of oil and natural gas properties based primarily on the after-tax estimated future net cash flows from oil and natural gas properties using a 10% discount rate and the arithmetic average of first-day-of-the-month oil and natural gas prices for the prior 12-month period. For both the three and six months ended June 30, 2022, the cost center ceiling was higher than the capitalized costs of oil and natural gas properties, and, as a result, no impairment charge was necessary.
The Company capitalized approximately $10.4 million and $9.2 million of its general and administrative costs and approximately $0.8 million and $1.9 million of its interest expense for the three months ended June 30, 2022 and 2021, respectively. The Company capitalized approximately $23.6 million and $18.7 million of its general and administrative costs and approximately $4.4 million and $2.5 million of its interest expense for the six months ended June 30, 2022 and 2021, respectively.
Earnings Per Common Share
The Company reports basic earnings attributable to Matador shareholders per common share, which excludes the effect of potentially dilutive securities, and diluted earnings attributable to Matador shareholders per common share, which includes the effect of all potentially dilutive securities unless their impact is anti-dilutive.
9

Matador Resources Company and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —
UNAUDITED — CONTINUED

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES — Continued
The following table sets forth the computation of diluted weighted average common shares outstanding for the three and six months ended June 30, 2022 and 2021 (in thousands).
 Three Months Ended
June 30,
Six Months Ended
June 30,
2022202120222021
Weighted average common shares outstanding
Basic118,103 116,801 118,027 116,804 
Dilutive effect of options and restricted stock units1,800 2,192 1,830 1,813 
Diluted weighted average common shares outstanding 119,903 118,993 119,857 118,617 
A total of 0.5 million and 1.5 million options to purchase shares of Matador’s common stock were excluded from the diluted weighted average common shares outstanding for the three and six months ended June 30, 2021, respectively, because their effects were anti-dilutive.
NOTE 3 — ASSET RETIREMENT OBLIGATIONS
The following table summarizes the changes in the Company’s asset retirement obligations for the six months ended June 30, 2022 (in thousands).
Beginning asset retirement obligations$41,959 
Liabilities incurred during period1,291 
Liabilities settled during period(1,168)
Divestitures during period(4,302)
Accretion expense1,060 
Ending asset retirement obligations38,840 
Less: current asset retirement obligations(1)
(448)
Long-term asset retirement obligations$38,392 
 _______________
(1)Included in accrued liabilities in the Company’s interim unaudited condensed consolidated balance sheet at June 30, 2022.
NOTE 4 — DEBT
At June 30, 2022, the Company had (i) $906.0 million of outstanding senior notes due 2026 (the “Notes”), (ii) no borrowings outstanding under its reserves-based revolving credit facility (the “Credit Agreement”) and (iii) approximately $45.6 million in outstanding letters of credit issued pursuant to the Credit Agreement. During the first quarter of 2022, the $7.5 million unsecured U.S. Small Business Administration loan was forgiven under the terms of the loan agreement and recorded as a gain on the extinguishment of debt within “Other expense” on the unaudited condensed consolidated statement of operations. During the second quarter of 2022, the Company repaid the remaining $50.0 million of borrowings under the Credit Agreement and repurchased $144.0 million of its Notes for $142.4 million. Between June 30, 2022 and July 25, 2022, the Company repurchased an additional $14.2 million of its Notes for $13.7 million.
At June 30, 2022, San Mateo had $420.0 million in borrowings outstanding under its revolving credit facility (the “San Mateo Credit Facility”) and approximately $9.0 million in outstanding letters of credit issued pursuant to the San Mateo Credit
10

Matador Resources Company and Subsidiaries
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS —
UNAUDITED — CONTINUED

NOTE 4 — DEBT — Continued
Facility. Between June 30, 2022 and July 26, 2022, San Mateo repaid $20.0 million of borrowings under the San Mateo Credit Facility.
Credit Agreements
MRC Energy Company
The borrowing base under the Credit Agreement is determined semi-annually as of May 1 and November 1 by the lenders based primarily on the estimated value of the Company’s proved oil and natural gas reserves at December 31 and June 30 of each year, respectively. The Company and the lenders may each request an unscheduled redetermination of the borrowing base once between scheduled redetermination dates. In April 2022, the lenders completed their review of the Company’s proved oil and natural gas reserves, and, as a result, the borrowing base was increased to $2.0 billion, the borrowing commitment was increased to $