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Oct. 29, 2021, 4:48 p.m. EDT


        Item 2. Management's Discussion and Analysis of Financial Condition and Results
        of Operations
        The following discussion and analysis of our financial condition and results of
        operations should be read in conjunction with our interim unaudited condensed
        consolidated financial statements and related notes thereto contained herein and
        the consolidated financial statements and related notes thereto contained in our
        Annual Report on Form 10-K for the year ended December 31, 2020 (the "Annual
        Report") filed with the Securities and Exchange Commission (the "SEC") on
        February 26, 2021, along with Management's Discussion and Analysis of Financial
        Condition and Results of Operations contained in the Annual Report. The Annual
        Report is accessible on the SEC's website at www.sec.gov and on our website at
        www.matadorresources.com. Our discussion and analysis includes forward-looking
        information that involves risks and uncertainties and should be read in
        conjunction with the "Risk Factors" section of the Annual Report and the section
        entitled "Cautionary Note Regarding Forward-Looking Statements" below for
        information about the risks and uncertainties that could cause our actual
        results to be materially different than our forward-looking statements.
        In this Quarterly Report on Form 10-Q (this "Quarterly Report"), (i) references
        to "we," "our" or the "Company" refer to Matador Resources Company and its
        subsidiaries as a whole (unless the context indicates otherwise), (ii)
        references to "Matador" refer solely to Matador Resources Company and (iii)
        references to "San Mateo" refer to San Mateo Midstream, LLC, collectively with
        its subsidiaries. For certain oil and natural gas terms used in this Quarterly
        Report, please see the "Glossary of Oil and Natural Gas Terms" included with the
        Annual Report.
        Cautionary Note Regarding Forward-Looking Statements
        Certain statements in this Quarterly Report constitute "forward-looking
        statements" within the meaning of Section 27A of the Securities Act of 1933, as
        amended (the "Securities Act"), and Section 21E of the Securities Exchange Act
        of 1934, as amended (the "Exchange Act"). Additionally, forward-looking
        statements may be made orally or in press releases, conferences, reports, on our
        website or otherwise, in the future by us or on our behalf. Such statements are
        generally identifiable by the terminology used such as "anticipate," "believe,"
        "continue," "could," "estimate," "expect," "forecasted," "hypothetical,"
        "intend," "may," "might," "plan," "potential," "predict," "project," "should,"
        "would" or other similar words, although not all forward-looking statements
        contain such identifying words.
        By their very nature, forward-looking statements require us to make assumptions
        that may not materialize or that may not be accurate. Forward-looking statements
        are subject to known and unknown risks and uncertainties and other factors that
        may cause actual results, levels of activity and achievements to differ
        materially from those expressed or implied by such statements. Such factors
        include, among others: general economic conditions; our ability to execute our
        business plan, including whether our 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; our 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; delays and other
        difficulties related to regulatory and governmental approvals and restrictions;
        availability of sufficient capital to execute our business plan, including from
        future cash flows, available borrowing capacity under our revolving credit
        facilities and otherwise; our ability to make acquisitions on economically
        acceptable terms; our ability to integrate acquisitions; weather and
        environmental conditions; the impact of the worldwide spread of the novel
        coronavirus ("COVID-19") on oil and natural gas demand, oil and natural gas
        prices and our business; the operating results of San Mateo's Black River
        cryogenic natural gas processing plant; the timing and operating results of the
        buildout by San Mateo of oil, natural gas and water gathering and transportation
        systems and the drilling of any additional salt water disposal wells; and the
        other factors discussed below and elsewhere in this Quarterly Report and in
        other documents that we file with or furnish to the SEC, all of which are
        difficult to predict. Forward-looking statements may include statements about:
         our business strategy;
         our estimated future reserves and the present value thereof, including whether
        or not a full-cost ceiling impairment could be realized;
         our cash flows and liquidity;
         the amount, timing and payment of dividends, if any;
         our financial strategy, budget, projections and operating results;
         the supply and demand of oil, natural gas and natural gas liquids;
         oil, natural gas and natural gas liquids prices, including our realized prices
         the timing and amount of future production of oil and natural gas;
         the availability of drilling, completion and production equipment;
         the availability of oil storage capacity;
         the availability of oil field labor;
         the amount, nature and timing of capital expenditures, including future
        exploration and development costs;
         the availability and terms of capital;
         our drilling of wells;

                                                                      Three Months Ended                      Nine Months Ended
                                                                         September 30,                          September 30,
                                                                    2021               2020                2021                2020
        Operating Data
        Revenues (in thousands)(1)
        Oil                                                     $ 325,560          $ 150,620          $   853,953          $ 414,379
        Natural gas                                               135,905             38,484              335,819             91,406
        Total oil and natural gas revenues                        461,465            189,104            1,189,772            505,785
        Third-party midstream services revenues                    20,486             19,363               55,774             49,861
        Sales of purchased natural gas                             38,770             13,358               54,198             37,883
        Lease bonus - mineral acreage                                   -                  -                    -              4,062
        Realized (loss) gain on derivatives                       (57,419)            (5,406)            (125,943)            49,571
        Unrealized gain (loss) on derivatives                       9,049            (13,033)             (77,178)            (9,271)
        Total revenues                                          $ 472,351          $ 203,386          $ 1,096,623          $ 637,891
        Net Production Volumes(1)
        Oil (MBbl)(2)                                               4,669              3,895               13,263             11,512
        Natural gas (Bcf)(3)                                         21.7               16.9                 61.0               50.1
        Total oil equivalent (MBOE)(4)                              8,283              6,715               23,423             19,861
        Average daily production (BOE/d)(5)                        90,033             72,989               85,801             72,486
        Average Sales Prices
        Oil, without realized derivatives (per Bbl)             $   69.73          $   38.67          $     64.39          $   36.00
        Oil, with realized derivatives (per Bbl)                $   58.43          $   37.28          $     55.23          $   40.30
        Natural gas, without realized derivatives (per Mcf)     $    6.27          $    2.27          $      5.51          $    1.82
        Natural gas, with realized derivatives (per Mcf)        $    6.05          $    2.27          $      5.43          $    1.82
        (1)We report our production volumes in two streams: oil and natural gas,

Oct 29, 2021


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