Matador Resources Company

Good morning, ladies and gentlemen. Welcome to the fourth quarter and full year 2020 Matador Resources Company earnings conference call. My name is Liz, and I'll be serving as the operator for today. At this time, all participants are in a listen-only mode. We will facilitate a question and answer session at the end of the company's remarks. As a reminder, this conference is being recorded for replay purposes, and the replay will be available on the company's website through March 31, 2021, as discussed in the company's earnings press release issued yesterday. I will now turn the call over to Mr. Max Schmitz, Capital Markets Coordinator for Matador. Mr. Schmitz, you may proceed.

Thank you, Liz. Good morning, everyone, and thank you for joining us for Matador's fourth quarter and full year 2020 earnings conference call. Some of the presenters today will reference certain non-GAAP financial measures regularly used by Matador Resources in measuring the company's financial performance. Reconciliations of such non-GAAP financial measures with the comparable financial measures calculated in accordance with GAAP are contained at the end of the company's earnings press release. As a reminder, certain statements included in this morning's presentation may be forward-looking and reflect the company's current expectations or forecasts of future events based on the information that is now available. Actual results and future events could differ materially from those anticipated in such statements. Additional information concerning factors that could cause actual results to differ materially is contained in the company's earnings release and its most recently quarterly report on Form 10Q. Finally, in addition to our earnings press release, I would like to remind everyone that you can find a slide presentation in connection with the fourth quarter and full year 2020 earnings release under the Investor Relations tab on our website. I would now like to turn the call over to Mr. Joe Foran, our Chairman and CEO. Joe?

Thank you, Mac, very much. And thank you for joining us for Matador's fourth quarter and full year earnings conference call. In addition to our earnings press release, I would like to remind everyone that you can find a slide presentation in connection with the fourth quarter and full year earnings release under the investor relations tab on our website. We appreciate you participating in today's call, and we appreciate your time and interest in Matador very much. Similar to last quarter, we've prepared that set of slides to give you background and color to what we're going to present today. I'm going to turn the call back over to the operator to take your questions in a moment, but there were three or four points that I wanted to particularly make. First is I wanted to commend our staff and board for the way they've worked together and achieved these results. Everybody on each of the teams has done their part and it's been a total effort with everybody helping out in all the different ways that they can. Much of our success is related to performances and well results that have been better than expected. This applies particularly to the wells that we've been drilling, the operational results, and commodity prices. I would add that the experiences of everybody working together this year to overcome the problems of COVID and prices and the like has led to improvements in our processes. improvements in our results in the field, the innovations, and that the asset groups that we've had have done not only what we've expected, but found new ways to add value to Matador. San Mateo has also been an important part of this whole effort, reaching new highs this quarter in Ibidaw and And then there are contributions to Matador. For example, having the pipes ready as we turned on wells that helps both environment, it keeps trucks off the road, and most important is that during the ice storm, we were still sending product down the pipelines to be handled. And it saves us a lot of money on trucking and other expenses. So we appreciate the extra effort there. And then for me, what has been one of the most exciting developments is that Matador has gotten to a position where it can comfortably issue a dividend policy and start paying back to our shareholders, many of whom have been with Matador since inception of Matador. This was made possible by the free cash flow that we've generated in the fourth quarter. and the debt reduction that we did with that money. So we've done a gap where we've achieved debt reduction, a dividend policy, reinstated the pay cuts that people took during the COVID and price crisis yet, kept our promise and outlook in the development of these A-plus locations, which have been the key to our success in the past couple of years, the improvements in capital efficiency, and an outlook that we think has us on the right track for further debt reductions, a strong dividend policy, and, of course, strong operating results with these A-plus locations. And with that, Let me open the floor for questions.