Matador Resources Company

Good morning, ladies and gentlemen. Welcome to the fourth quarter and full year 2021 Matador Resources Company Earnings Conference Call. My name is Kirby 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 30, 2022, 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, Kirby. Good morning, everybody, and thank you for joining us for Matador's fourth quarter and full year 2021 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 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 earns release and its most recent annual report on Form 10-K and quarterly report on Form 10-Q. Finally, in addition with our earnings press release, I would like to remind everyone that you can find a slide presentation in connection with our fourth quarter and full year 2021 earnings release under the investor relations tab on our website. And with that, I would now like to turn the call over to Mr. Joe Foran, our chairman and CEO. Joe?

Thank you, Mac, and thank all of you for listening in on this call and taking the time. I'd like to simply begin by noting this is our Actually, our 10-year anniversary from going public in February of 2012. And this is a good high watermark for us for this time. Last year we considered the best year we ever had in all areas, and in particular just execution and the teamwork that we had between our various disciplines. Want to... thank the staff both in the office in the field for this good performance and say you know we certainly understand that it was a record-setting year and that past performances are no guarantee of future performances but it's we feel it's not a bad indicator to have the We like our chances going forward, and we think the outlook is the best that it's ever been, and hope that you'll see in the documents that we're sharing with you how far that we've come in the last 10 years. As a measure, you see in here the production records, the reserve numbers, the free cash flow, all records being, but I'd also suggest I'd just like to note that if you bought on the IPO, you're up basically four times. We came public at $12, and we're approaching $48 now. And if you hadn't been an original shareholder in this matador, you were at $3, so you're up a little over 15 times in that period. As I said, I know that past performance is no guarantor of future, but we like our chances and we'd rather be having that kind of progress than the other way around. As I said, with March Madness coming up, just because Duke and Kentucky and those are not guaranteed anything, it's certainly the way to pick your bracket with teams that have been there and have showed some progress. Again, I commend the teams and the staff for their operational and financial progress. We're looking at more free cash flow and more EBITDA than we ever have, and some of the slides to my remark note that, and the picture sometimes tells a thousand more words. The forward look is very promising. The BLM acreage that we bought has really come through, and I know at the time there were some question marks about were we paying too much for it, but as I think you'll see that it made a complete change for us in our capital efficiency, and then we went from drilling 1% of our wells at longer than one mile to where we drilled 98, 99% of our wells that were a mile and a half or longer. And some this year have been as long as 2.3 miles. So we're handling that change, and that made such a difference in our overall capital efficiency. And a lot of shells don't pay out, but two to one, three to one. But in many of the wells that we drilled this year, there'll be payouts as big as six to one. So Glad that worked out. Glad everything has progressed with the team continuing to get better and our young people gaining skills and experience in this. And the innovations that they brought here have been very helpful. The execution, the commitment to get to the field to make things happen better have all come together to make this year possible. And I know we can't Look back, we're going to discuss the fourth quarter, which was best quarter ever. But after this call, it'll be forgotten, and we need to look forward to what's going to happen in the second, third, and fourth quarters of this year. But very confident that they'll turn in another first-rate performance, and we appreciate your interest and are now ready to get to your questions. Kirby?