Q3 2021 Matador Resources Co Earnings Call

October 27, 2021

Good morning, ladies and gentlemen, welcome to the third quarter 2021, Matador Resources Company Earnings Conference call. My name is Grace 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 web site through November 13th fastest plenty one as discussed in the company's earnings press release issued yesterday.

I will now turn the call over to Mr. Mac Schmitz capital markets coordinator for Matador. Mr. Schmitz you May proceed.

Thank you Chris Good morning, everyone and thank you for joining us for <unk> third quarter 2021 earnings Conference call.

Some of the presenters today will reference certain non-GAAP financial measures regularly used by Matador resources in measuring the Companys 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 mornings presentation, maybe forward looking and reflect the companys current expectations or forecasts of future events based on 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 recent quarterly report on Form 10-Q.

Finally in addition to the earnings press release, I would like to remind everyone on the call you can find a slide presentation in connection with the third quarter 2021 earnings release under the Investor Relations tab on our website I would now like to call. It turn the call over to Mr. Joe Foran, our chairman and CEO Joe Thank.

Thank you back.

I just have a very brief comment or two before you will begin the question and answer.

Is <unk>.

First I just wanted to say, it's been very exciting for us this year and gratifying.

Our themes were to pay down debt.

Find a way to increase our dividend.

To set ourselves up for another good year in 2022.

Coming into the fourth quarter as we have we believe those objectives have been attained and we're excited about the outlook going forward.

And then 2022 is shaping up to be a good year all areas as they currently are doing well. The team is performing there working together are reaching some outstanding results, which is reflected in our current stock price.

And gives me great pleasure just to note that we've the last month or so really since the end of August and we visit tiny one record all time record high after another and so we appreciate the support we've received from you and from the market and from our <unk>.

Shareholders.

Shout out to our field staff, who worked through the cold and hours sleeping in their trucks are doing whatever it took to keep the wells running through the not getting up and checking every few hours from the capital efficiency gains at each of the groups have contributed to <unk>.

So that are three years ago, we drilled one well that was over.

So a great change that.

As added to the performance of the company and we appreciate all the extra effort.

And that our staff are both here and in the field have done.

Think about this.

Really high performance execution.

So with that I'd like to turn it.

Back to you for questions.

Thank you as a reminder to ask a question you will need the grass farm then the number one.

Let me draw your question please press the pound.

Ladies and gentlemen, due to time constraints, we ask that you. Please limit yourself to one question and one follow up.

Again, we ask that you. Please limit yourself to one question and one follow up until all have had a chance to answer.

After which we would welcome additional questions from you.

Your first question comes from the line of Scott.

Your line is open now.

Good morning ill, congrats and I mean, you know congrats on the strong quarter again.

I'm kind of wondering into this in this commodity price environment than in the past that you all are going down it looks like youre going to have a fair amount of free cash flow you going forward and it looks like youre going to have you know enough free cash flow generation to pay off the revolver.

Very early next year, So you know I know.

No. It's it's you know maybe you know sort of a bit too early to kind of spend money that you don't have right now, but can you give us a sense of how you think about like free cash flow Big picture moving forward like what are your priorities and how should investors think about Matador and and you know what you do with it.

Scott, It's a great question and it's a very worthy question and really we talk about that every day head count what should we do with this.

They expected to see so much more free cash flow and Oh.

And different people. They are you know how we work we get together, we express or ideas assembly work away through them and I would say those plans are still evolving.

At the very core is we want to be sure. This is a once in 10 year opportunity that we make the most of it and so.

So where we are and the nice thing is is that we're ahead.

We don't have to.

Take a bunch of chances that we can you know we'd be cautious.

But effective and we're looking at a range of ideas that open to US we got our basic ground game with our drilling rigs and prospects that are is going to go forward.

Tom and his group they've got a drill schedule with a lot of.

You know I plus it's all a plus location so.

That basic ground game. There's Gotta go ahead, the midstream is growing we've been attracting third party lit.

Third party.

Got it needs to participate in the midstream.

And are very pleased with how that's going our land buying group has got a number of ideas and we're way in those against that.

The the relative certainty of.

Some number of the wells that were we have scheduled to drill so.

It still is in the formative stage, we've accomplished what we wanted to do which was pay down the debt and that we're in position we've lowered our debt over the past year as you can say from the slot.

It's down to 100 million today, So we went from $4 75.

200 million and so we have room.

Wasn't there to have some money available for.

Either expanding their drilling program or looking at.

Uh huh.

You know small relatively small acquisitions, you know, we favor not company to company.

But the bolt on transactions to our existing leases because there's less risk because we know the areas. It fits and often that means waiting to expand to a from one mile to two miles that now even looking at two and a half or three mile.

Laterals so.

That's it.

That's interesting.

You know further expansion.

Perhaps on our Ah.

<unk> midstream.

And but we want to you know, we're not going to overload getting that debt down and we are certainly uppermost in our mind as being good to our shareholders who have stayed with us.

All of this time and are looking to have a potential dividend.

Dividends and increased the time in which we're not sure but we did this dividend increase a quarter early to signal that they are uppermost in our mind and we're going to take care of them in the forthcoming year.

And.

These discussions are going on and we will have these plans put together was we always do it in.

January early February and.

I think you're going to like what you see that the choices are are strong and we're very excited by David what did I leave out here.

I'm not really sure you lift out everything Joe So I was kind of picking through the things in my mind I guess, Scott the only other thing one other choice or one of the thing we've talked about a little bit, which maybe there might be an opportune time in the 2022, you know to look at restructuring the bonds a little bit you know once we have the revolver paid off we might.

You know we might look to do that that's something we've chatted about certainly haven't made any final decision on that at all but I think that's something else that we might consider maybe buying some of that in in restructuring the bonds a little bit just to give him I'm sure. He's pushed out I think that.

We were real pleased to get to this summer we've got an upgrade from S&P, we've got an upgrade from Moody's.

No I think you know I think we will we will work hard to continue that process and you know I think that you know our bonds have been trading at 104 or so so we are all.

You are at about four 5%. These days so I think that we feel like that if we wanted to do something that we could.

Significantly reduced the coupon from where we are now so I think theres a lot of as you said a lot of a lot of options for us going forward.

Yes.

Wanted to indicate that the way the teams are working together and the leadership is emerging from those teams, it's making allowing David and Matt and me and the other on the exact team more time to study these options, which we appreciate and are.

You know our measurement groups and so.

So the commodity verification groups are.

Really doing their part to so everybody's working together and yeah.

It's really pleasing to see that new leadership emerging.

I appreciate the color there as my follow up question and I'm not going to push you on 2022 guidance at this point then all that will come probably early next year, but.

You know given you know the fourth quarter production cadence, where you're shutting in a little bit more wells to I guess bring forward some completions.

Could you give us a sense of like the progression as you get into <unk> 'twenty two because it seems to me you know like there could be a pretty significant step up and and you know maybe in that you know.

Sequential kind of you.

You know double mid double 15, plus percent into <unk> could you give us a little color on you know where you see that going.

I'm not trying to avoid it but I'm going to punt. It today then.

[laughter] Yeah. It's Scott. Thanks, I, you know look I think youre right. So I think that you know that we do expect to see a meaningful increase in production in the in the first quarter of 2022.

Why is that well.

The wells that we will have shut in at Stateline the.

Nobody Fracs are this next 11 wells should I'll finish by the end of the year is our expectation and once they do then we'll start drilling out plugs and as we do we'll begin to return and restore more of that production.

And you know so those wells are going to all come back on plus by.

Bye I hope mid February or so.

Certainly during the latter part of February there's gonna be 11, new Bonnie wells that are that are coming online. In addition.

We're currently fracking the remaining nine wells to be drilled this year at Stebbins and all those are going to be fracked here before long and I think that you know we've committed to having them turned to sales before the end of the year. So theyre going to begin to impact production towards the end of the year, but certainly we'll have a full quarter of production in the first quarter.

We've got two more wells and uncle tests that are going to get done by the.

By the end of the year and we'll have a full first quarter and we got the three wells down in Wolf right now on the Barnett to that will probably come on sometime in the first quarter as well so you know.

I think that all of that together would suggest that you know.

Over the course of the quarter that our production will begin to grow meaningfully and and then.

You know as you know we've got nine wells.

That we're drilling that Rodney and.

And those will probably start to come on in.

Mid to late March and so I think that bodes well for you know for the second quarter as well. So I think I think we feel like that will have meaningful growth and then it'll be fairly sustainable you know throughout the rest of the year. So are we.

We're excited about that and you know, we'll we'll put a fine point to where we think those numbers will actually be and be happy to share. Those are you know with our with our next conference call and in our guidance release, but the but overall I think we're really excited about what's what's coming down the pike here.

Alright, I appreciate that great. Thank you.

Thank you.

When it comes from the line of Neal Dingmann from <unk> Securities. Your line is open Sir.

Good morning first question today's on just curious on some shut ins formation specifically you.

You all mentioned directly on the release about going directly at artificial lift on five of those 13 boros wells as well as plans to shut in more for long a pretty it ahead of the Bonnie completion, so looking like.

Just wanted to see.

Joe Youre matter, Dave one of the guys could expand a little bit on what you saw in terms of the reservoir pressure changes.

What caused you to move to the artificial lift.

Maybe one other touch onto that with them.

Your balance.

How do you think about the offset.

Sort of production on that just I'm trying to sort of think about those two things separately and would love to hear your color on that.

Yep.

Hey, Neal it's David.

You talked a lot into that question I'd have to say so.

Let me, let me take a minute and try to attack it so.

So first of all let's talk about the question you asked with regard to the shut ins.

That we plan this quarter in the fourth quarter on the bodies.

As we indicated in the release.

We expect to shut in.

A few more of the vantage wells are I shouldn't say the Bonnie was a few more of the existing producing wells Bonnie and borrows.

We complete these wells at Bonnie and we expect to shut them in for a little bit longer than what we were anticipating this time three months ago why is that well. The biggest reason was as we were fracking the boroughs wells, we realize that there was a little more frac communication.

With some of the existing wells than what we had anticipated so.

And I want to be clear that we're all level set on its frac communication is just communication, while we're while we're doing the fracs.

Once that's over with and we turn these wells back sales, we're not seeing any adverse effect from that communication. So we're not talking reservoir effects were not talking drainage effects. We're just talking frac communication and frankly I think you can appreciate we certainly can that we have 26 currently in <unk>.

39, now producing wells at <unk>.

At Stateline.

Very high value wells that we have created and constructed over the past year, and we're not going to Miss them up you know and so.

You know, we're going to be cautious we're going to shut in more of them. If we need to to protect them, we're going to leave it shut in for a few more days and if that means that our production is going to be slightly lower in the fourth quarter than we might have thought that's okay.

Because we feel that its way more important too to protect those wells and preserve that value and that's the way we're going to approach. It now you also asked a question about the comments, we made about the artificial lift on the first bone spring and the Avalon and <unk>.

That I think is also a very easy question to answer.

It seems like some folks thought that we were indicating that the reservoir pressure in these zones was abnormally low absolutely not so.

The reservoir pressure is what we expected it to be but I think you have to remember.

Remember that we are talking about two of the they're really the two shallower zones that we're completing.

Where the Avalon and the and the first bone spring by definition, they have lower reservoir pressures than they do if you're down in the wolfcamp b or the Wolfcamp X y.

Most of the Geo pressure occurs in the basin below right at the top of the Wolfcamp. So you get the really really high pressures when you go into the Wolfcamp and below when you're in the bone spring those I'd say those are mildly geopressured, but theyre not.

They're not highly geopressured zones, and we see that all over the basin. So we tend to when we're flowing back wells in the first bone spring or in the Avalon. They just didn't have a little bit lower fluid pressure because their absolute reservoir pressure is lower that's not a big deal.

In this particular case.

Let's take the first bone spring.

Those wells those couple of wells took a little bit longer to start cutting hydrocarbons and then what other wells have.

At Stateline or in some other areas and it didn't mean that that that was a problem because it wasn't in fact I can point you to several other cases, the first bone spring, where it's at 30% or so of the load coming back before we started to see hydrocarbons. The Ray 113 for example, which is up in Rustler breaks is a great example of.

That.

And it's turned out to be one of our best first bone spring well. So so I'm not I don't think we're concerned at all about any of this right now I want to make it clear all those wells were flowing up casing.

Not one of them loaded up and down during the course of this process and also.

You know, we just as a team several of Neil or making you know 1700, Boe's a day 500 BOE a day and still cleaning up so we're still very encouraged by these wells and their performance and it's just.

It probably would help them. If we just went ahead and installed artificial lift will be doing it before long anyway. So we decided hey, we got the rig we got the time, let's just go ahead and put them on gas lift and help them to continue to clean up faster and get to their full potential and that's really that's really what we're doing and that's all that we were that we were really.

Sitting in the commentary we made in the release, so I will say that to be on those wells.

Second bone spring wells were continued to be excellent I'm really happy with the third bone spring wells that we talked about that's a new zone for us down there not one that we originally thought we'd be completing hats off to the geoscience team and the asset team for bringing that zone forward and those are excellent wells and then wanted to demonstrate the fact that you know.

We've added some recent wolfcamp b wells, which are the gassy wells and at a time of high gas prices those who've worked out really well too far so.

All in all I think.

We are.

We're in a good place and very happy with the results from the Boros wells just they just those particular wells just hadn't cleaned up to the point that we thought it made sense to share the results with everybody at this point that's it yes.

Sounds like right on plan there as we thought with you guys great job there and then secondly, just maybe on San Mateo specifically.

We've seen some strong midstream deals again recently like we did years ago at his point of the highs and wondering given the enormous value you all have at San Mateo.

And kind of where you sit with that now any any thoughts on any types of transactions or I know, Matt talked about in the past I'd love to hear kind of where you all think that what do you think about San Mateo at this point.

I'm going to say, a little bit and then turn it over to Matt.

To finish up but we're real pleased with way San Mateo is going.

I think the.

That work with our partner has been.

Very strong and we're looking at it.

How best to add value to that is it back.

Extensions and connections to our existing system and with our third party contacts.

Sure.

No it into some other areas, where we maybe drill it that we're looking at.

Doing some new drilling and tab. So the team has looked at a lot of different ways and you are right.

San Mateo is not only added value.

Financially it's added operational value.

Because during the.

Our a storm.

Our plant was one of 5%.

Only 5% of the plants were able to keep operating we were one of them.

And the same thing about when we did ready connect the pats been their lighting, that's had advantages and togetherness.

More options and our marketing efforts so it's been clearly the financial.

Value, but the operational value has been very real.

When we told you we were going to turn on these wells, we've been able to make those deadlines, where if you had.

Some other midstream cabinet for which you had no control over.

Given.

The situation out there and the delays had been unlikely that we would have met those dates. So we're glad we can keep our word to use it we turn those wells on as we said we would.

But it is Scott.

Yeah.

It's got a lot of opportunities and sorting through them and they ensure we're selective has been the order of the day, Matt what would you add to that.

Joe I think you said it well the thing I would underscore is again the.

The advantage to operating this business.

Not only for us, but it's also for <unk>.

Third party customers. So what Joe said is exactly right when Matador since we've got four wells at Rustler breaks we wanted to turn on or at Stateline, and stebbins or wherever that may be.

We've got three pipes sitting here waiting rooms will go gas, we've got to and we've got water and so we've tried to take the same approach with our third party customers and I think that's worked out well we've got two more.

Multiple repeat customers come to us and said, we like what you do with water do you think you would do.

Be interested to bring them on the Orlando, where the gas and we've done that and done that successfully so.

I do think Neil to your point of view.

You contemplate the value of the midstream company relative to commodity prices I think were absolutely seeing an increase in particularly if the rig count would.

Go back up again in the areas, we operate which we think are good areas it would be.

We are probably even more third party opportunities. So I think we're in a really good position.

Absolutely guys love the Optionality there. Thank you.

Thank you. Your next question comes from the line of John Freeman of Raymond James Your line is open Sir.

Good morning, guys.

Good morning, John.

So you all have done a terrific job just continuing to drive a.

Costs down and I'm just looking at obviously when we started the year you all are targeting 730.

On a D&C basis per site.

Now reduced again down to that 600, India for the full year guidance and I guess, just looking at the first nine months coming in at <unk>.

665, I'll frame it sort of imply that you have a pretty pretty big step up in <unk> seven.

750, a foot or so to get to that full year number, which I realize greater stebbins, well talk a little more expensive, but it seems like maybe that's.

Pretty conservative just anything that I mean, maybe nothing in front of that.

Right now, we're just sort of whats going into those assumptions to get to that full year number.

John I'll take first.

Scott I just was going to say the first part and then turn it over to Matt or Billy or to Chris for their comments.

The savings here, it's really in my mind.

Mainly from two parts. One is is that we've worked with.

We've experienced a time where cost came down we have long term relationships with these vendors.

And they've helped us along and we don't try to beat them down.

Got to do is ask ask them to help show us ways that we can improve the efficiency and they've been good about that and second is that sustainable.

I didn't go away when you improve the process.

Both bill each group in the drilling and Chris's group and the completions have done a very good job of reducing days on the well drilling and days on the well franking, we're fracking them faster and when you reduce the days.

You say, it's about 100000, a day on the rigs.

Some similar on the fracking.

And just cutting the time.

Nice for a lot of savings, it's also very sustainable so.

We've worked at it from different angles.

Wanted to commend all of them for doing a great job both here.

The engineers in the office and geologists, but also the people in the field, Matt sorry, I Hope I didn't take too much of your Thunder.

It's all good so it's all good news and I would say John for for US I mean, you kind of hit on something there. The wells, we drill down Stateline, we got very very efficient because they're just keep getting better as you guys were doing them in faster and faster. So that did kind of moved in that direction.

Let's say for 'twenty, one I think we're pretty pretty well set on our costs. We've got a lot of things locked in through the end of the year.

Going into 'twenty two.

And we're looking very closely at this we don't have a number yet but it wouldn't surprise me if we.

We saw something in the 10% to 12% increase.

Steel prices are up.

So that affects us some we do have.

<unk> business, we will feel.

No country tubular goods is not a big portion.

So we've been working very closely with.

Our pipe.

We used to be champions and smell D&O and so we've been working with them to make sure that we have for next year and we're very confident that we do.

But I think to kind of to Joe's point.

You know, we're offsetting a lot of these costs with these deficiencies and so if you just kind of just a couple of examples on the drilling side.

The last quarter, we were talking about it.

Lateral record for one bottom hole assembly, one bit more motor wanting WD being just a little over 12000 feet and so during this quarter the guys who've significantly beat that.

With 13155 feet so.

That eliminates trips.

Days in on that particular, well that was the third bone spring well, we drill down stateline.

About three days off the average which saves us about $175000. So just on the drilling side, we're drilling these wells faster and one of the ones that you mentioned that area, we drilled one.

Four days faster faster than the fastest well ever drilled up there, which saves us probably a quarter million dollars. So on the drilling side those guys continue to hit it out of the park on the Frac side as Joe mentioned this too.

It's.

Completing these wells passengers very important so if you look back in 2020, we averaged about 250 feet of completed lateral per day, and so fast forward to our latest sawmill operations, we pretty much double but almost 25 of them.

Per day, we actually had one day that was 3600, so that's a pretty good day.

Why that's important Joe mentioned.

The cost savings so we pay by the Frac stage.

Service provider and we're very happy with Universal, we're very happy with Alberta.

We're using.

Look and see how much we're going to complete in a day and they adjust their pricing on that so we save money there we saved money on marine lines, but maybe as important as we reduce the number of days that we have offset wells shut in we reduced the number of days between spud to turn in line and then even on the safety of these deep rooted.

We're completing these wells twice as fast you got limited exposure for having the crews out there for <unk>.

You know them.

Environmental side.

Equipments out there running whether it's running at.

Full speed or whether it's out in the yard so we're able to reduce emissions. There. So I think if you just roll all that up into what we're expecting for next year. I think we're very optimistic that we will have a great year, and we will be able to offset what might be 10, or 12% increase in service costs and some efficiencies.

That's great I appreciate all the color on that topic.

It looks like you know, it's a leverage continues to fall pretty rapidly.

Peers are getting more comfortable with kind of a lower hedge position and I guess that would typically have as we.

Approaching upcoming year, just any any other color on that.

John just a little bit.

As I mentioned, how we are.

We get together in there people everybody talks about there.

Their views and later, so a little discussion I don't call it debate, but a clinical analysis of what we ought to be doing.

And this is.

As much or more from the bullish view that our marketing group.

As in prices going forward as it is the lower leverage I mean the.

The lower leverage helps in their cheese.

You know you're you've got plenty of room on your commercial line of credit, but we.

We still fundamentally come back.

And look at the all the circumstances right now you've got a lot of backwardation.

Greg would you say any add anything to that.

Joe I think.

You hit it right on the head as far as the backwardation is definitely the.

You know the draw back the main drawback about doing anything it just is it I don't I don't think it makes a lot of sense to do that right now.

We're definitely looking at things on a daily basis to make sure.

Over that tipping point.

We'll be ready to pounce on it but.

At this point in time I don't see.

A real.

Reason.

The reason to go out and do anything right now with the current situation, what we're seeing as far as.

The long term.

The curve the way it looks.

Thanks, guys I appreciate it.

Thank you John John.

Thank you and your next question comes from the line of Zack <unk> from J P. Morgan Your line is open.

Yeah.

Thanks, guys for taking my question. One thing you mentioned earlier on the call was just having the balance sheet capacity to expand the drilling program.

Can you talk a little bit about the decision to add the fifth three and again, just maybe where you go from here why was now the right timing and how do you think about adding additional activity in the future.

Zach I'll be real quick on the on.

My regime is this is this past year, we've been drilling a couple of years almost all the wells have been 100%.

We owned 100% now as we move into some different areas, we're getting more non operating interest. So if you have.

You know to drill the same amount of wells, where you have 50% youre going to have to double your rig so that fifth rig is just really going.

To be used primarily in the areas where you've got.

You have 50% interest in your have other non op.

People in there say your net.

Capital spending is the same as when you have four rigs he's just.

Proportionality.

David.

Yeah, you know.

I think you said it well Joe I think we've tried to make it clear in the.

In our press release last week and again this week.

The primary impetus for picking up that that rig was first and foremost to drill a saltwater disposal well up in the stebbins area, which we had budgeted and sort of laid out for the beginning of the year.

I think you can appreciate that.

Drove a lot of new wells up there this year and we felt like we needed some additional saltwater disposal capacity as well as on the <unk>.

On the docket and beginning in August with sort of a good time to get that done so that we could that we could have the well completed.

Sort of simultaneous too.

To win the new wells will start coming on it there et cetera, so that if we.

We expect we'll need a little bit of additional capacity and this will sync up really well with that as we mentioned we took the rig for a term of six months frankly, I think all our rigs are on about six month term. So we have lots of optionality, but.

But we need to dig into to find a home for it for the next.

For the next few months and the best place to put it we thought it was Rodney.

Just to drill a few more wells there.

Always nice to be able to do this time of year, because as we mentioned in the release a week ago.

We are a bit constrained operationally each year by the the meeting habits of the lesser Prairie chicken in new Mexico and that usually is a period between early March and mid June where.

At least.

Daylight operations I believe are all that are permitted in that period of time. So we usually like to be just in and out so that to.

That we're not too we're not fooling with.

With any of that during that period of time. This enabled us to be able to do that to get these wells drilled will get them fracked there'll be will be turned into sales.

Before theres, new pretty chicken to be made in the world you know and so I think that's a that's all a very positive thing and you know as Joe said I think the weather, we hang onto the rig or not will be.

Really I think generally when people ask us that question.

Do we think we're going to spend a lot of more money next year on drilling and we don't so but we may need then we may need that extra rig just to sort of maintain the same level of capital spend and.

And so I think thats it.

That's part of the decision, making process thats going on right now as to what will be the the final mix of wells that we'll drill next year and how we'll put all that together, which we look forward to sharing at our next call.

Thanks, guys. That's that's great color just one follow up could you talk a little bit about the future development plans at Stateline pretty soon you'll have two packages on those.

And at Bonnie where you've had some really strong results.

How many additional packages in the future or are you expecting to develop at Stateline and maybe if you could talk a little bit about the additional zones do you plan to come back and develop.

I think that once we get this next batch of 11 wells on at Bonnie that'll be 50, producing wells at the state line and I think originally we had a we had permitted 96, it's amazing what I recommend what I remember plus or minus 100, so that would suggest that.

We're kind of probably halfway through.

There.

I think the zones that we would be talking about.

In the future that would probably be some more wolfcamp b's that we would be going back and adding because we thought there was two maybe three benches of Wolfcamp B's there.

I could see us maybe doing some additional third bone we've done this third bone car, but there's a third bone Sam it looks pretty good there too that might be something we could do down the road.

Theres, probably a couple of different bitches targets in this first bone spring and so that's something that we might look at and then of course there are.

Other targets in the Avalon and we even had a brushy Canyon you know target that we've.

We've looked at.

So those are the kinds of things that I think would be primarily on the on the docket going forward My guess is that.

Once we get these next group of Ani wells on we're sort of going to take a little bit of a pause at the stateline and do some other things.

That we wanted to do for a while and then we will probably will come will come back in a while and the and continue our efforts at the state.

State line, but I think when we sort of rollout are you know.

Our plans for 2022.

We'll have a little bit less emphasis on the state line in 2022 and be able to move at least one of those rigs away or a couple of them away for a while and do some more things we want to do at Rustler breaks over in other areas of Antelope Ridge Theres, a big new chunk of federal acreage that we got at the same time, we've got the Stateline and the Rodney Robinson over in Eastern Antelope Ridge that I know of.

The Geoscientists are just dying to get some wells down on that I think could be another significant development area for Matador going forward. So.

That's.

Without going into too much detail, that's that's sort of how I see things evolving in the near future.

Thanks, that's helpful color that's all for me.

Thank you.

Your next question comes from the line of Michael shallow from Stifel. Your line is open.

Hey, good morning, guys.

Question on <unk>.

Thoughts on natural gas it looks like you are.

Third quarter production gas production is quite a bit stronger than forecasted was that coincidental or anything you did deliberate there to increase gas during the quarter. I know you had a couple of Wolfcamp B wells and maybe just along those lines, how you're thinking about returns on some of your gas your assets versus the where there once was.

Prices, where they are now.

Does the haynesville compete in the Wolfcamp b.

Compete with the earlier parts of your inventory.

Yeah, Mike we had debt.

Made some adjustment as gas prices went up and they look stronger to increase our proportion of gas a little bit.

And.

Also just to establish for you and others that we had a lot of gas out really good gas opportunities. It just was that oil prices all commodity was getting better practice, but to demonstrate that we had those options going forward.

Wanted to drill a couple of gas wells David.

More specifics on that yes, sure Joe I think I think what I would add Mike is that first of all.

The third quarter I would say it was a little anomalous from the standpoint, a couple of things that we pointed out in the release.

There were some some mineral interest debt that.

That we had.

That we receive production on from some properties, we had in the Haynesville for the first time in the third quarter and we really weren't sure about the timing of the operations of the folks drilling those wells and when that first production might be might be received and so we haven't included that in our original forecast and so that was nice.

Always nice to sort of have free gas and so that was that added to a bump there in the quarter. We also ended up acquiring a little bit of additional working interest in the well or two in the Delaware that tended to be a little bit more gassy wells that.

You know that.

Added to that because we sort of had a little bit of catch up on.

The production there too.

I think as Joe pointed out we did add a couple of the Wolfcamp B wells there.

At Stateline on the borrow side and frankly, we're going to drill four more on the body side. That's for the 11 that we have planned for this next time as far as the returns go I think we've always been happy with the returns from the Wolfcamp B wells, it's just that that that right now we're happier.

It's just one of those deals where if youre going to do it. This seems like a really good time to take advantage of that so and I think we've always said you know we've got some really good gas wells to drill not only to make nice fundings of gas. Its also rich gas. So there's a lot of ngls associated with that and then they also make all along with them. So you know what.

It's not to like about that right now so.

That's one reason that we would.

Probably you have decided to bump a few of those are up in the program.

A little earlier than maybe we might have otherwise.

That makes sense.

Next question is along the lines of the last question you just answered on Stateline. You know you said you're going to be about halfway done once you get.

Just sort of 50 wells here online I was curious could you kind of run through sort of a similar.

The thought process on Rodney Robinson, where are you there in terms of kind of the remaining inventory and then you also mentioned that the.

Eastern acreage be curious too.

Learn a little bit more about that as well.

What's the potential inventory like there.

Yeah, So I'm going to start and then that May get to my my good bidding Tom Elsner here to.

To help me out a little bit so.

I believe on correct that we have 10 wells currently producing at Rodney nine that are drilling so that would give US 19, I think that probably works us 50.

<unk>, 60% plus or minus through.

Targets there Thats, what we had originally sort of I think we'd originally permitted like 29 or something like that and so.

So we would be 19 through that but I already know that they've got more than that on the on the drawing board and so I think that we will see more than that at Rodney before we're done.

With regard to the well maybe I'll, just pause and Tom do you want to add anything to that David.

I didn't say it very well the teams continue to find new opportunities and Rodney Robinson, where we're interested in is likewise stateline if theyre done carbonate, we see we see potential there at Rodney Robinson, which is one of the wells one of the targets that we're still working on and any additional federal permits as David mentioned the initial 29.

It will permit that Rodney Robinson that was kind of just to get us get started so that we can diversify R. R.

Our inventory of permits and acquire more permitted stateline teams today are in the process of adding more permit that Rodney Robinson for additional zones, and the and that there'd been carbonate entity a lower.

He didn't even to the second bone spring carbonate.

So we have a lot of potential.

We haven't really talked about a whole lot and in addition to those we still think there's a lot of potential in the Wolfcamp D and the Brushy Canyon.

The nine wells that were going to be drawn out Rodney Robinson, and we expect to see just often payouts.

There's initial.

Initial 10 wells have all paid out a variety of Robinson and anytime Youre getting these payouts in.

Year, it was six months or even less.

Getting stellar returns.

Glenn's team has done an excellent job.

Taking all the fluid off of off with Rodney Robinson and.

All the oil all the gas all the waters on pipe. There. So we continue to be very excited about the Rodney Robinson tract.

Mike I think with regard to part two of the question.

Just going to set it up and then I may kick it to Ned Frost, who heads our Jif science group and let him add a little color but.

We bought originally about 8400 acres.

In that federal lease sale back in October of 2018, really it's already been three years, its kind of hard to believe that but it was kind of a little just a little before this time three years ago.

And we focused mostly on Rodney in Stateline, which.

I suppose about.

About half of it will not even half of it so but we do have about I think it's a little over 4000 acres that are that we bought that's pretty contiguous over there in the <unk>.

In the more easterly part of Antelope Ridge and.

I think whats been exciting to us number one we always like the acreage and the opportunity.

Thought it might be a little more exploration focused at the time, but.

I felt like we were getting it for a good price but.

But I think with time, what we've seen is we've been working at Stateline and Rodney Robinson that the rest of the world. It's just gotten closer and closer and made good wells you know.

On every just almost every side of that acreage you know so it really really makes US excited we've got permits in the hopper right now and looking forward to doing a few tests. There. This year and that you may want to kind of add to the kind of targets that you see there but.

We feel like that could be a real.

A real positive area for us going forward sure. Yes, Thanks, David I think eastern Antelope Ridge, primarily at this point, we'll be looking at Wolf bone there so that would be.

Wolfcamp, a upper and third bone spring sand.

Have three D seismic data that shows that the target heads back theyre pretty well, we're confident that we'll we'll have that in and good quality. There. So like David is that we're excited to get some wells down on that.

Everything as we drill the first deeper wells, we're going to see that the shallower targets as we drill through them. So I'm quite certain we will find.

And more to do over the air at this point.

<unk> has has drilled 24 unique targets in the Delaware basin, and when I say targets I mean.

Rock intervals that are regionally mappable in discrete and in that's coming out of 13 separate formation. So I think.

We always like to push that number higher and I'm sure. We can find a few more of at ash. So as always the geoscience team is very excited about what we see and anxious to get some wells in the ground.

I will say, even though he had net store it I'm secretly budgeting the core because I'm sure there will be a core requested the automotive those wells are coming down the road.

The guys do a great job with that and they're they've made great use of the rock and the I'm sure will want to invest in a little additional thoughts as we as we start into that area because it certainly served us well and all the other areas that we work.

And Mike I'd say, that's an overriding theme when we get together and talk about what are we where are we going to drill.

What are we going to drill an eagle in the M&A questions come up about this lease being available or.

Do we want to you know.

Acquire the adjoining lease is the quality of the rock and Thats, what really drives us through all of these decisions and which which tracks to drill is the quality of the rock. So that it is great to have done a great job.

On that and the other groups have contributed to what we're trying to make.

Some of the engineers are little more geology oriented in the geologist a little more engineering and land oriented so.

We believe in that interdisciplinary exchange.

Really appreciate the color guys. Thank you very much.

Thank you and your last question comes from the line of Gabe Daoud from Cowen. Your line is open Sir.

Thanks, Hey, good morning, everyone.

Okay.

Guys, just maybe hoping we could just go back to the.

The comment on potential like small bolt ons.

Could you just quantify that is it like 20 50 million Bucks in terms of smaller or is it hundreds of millions kind of similar to the.

So the heiko deal from 2015.

Yeah.

<unk>.

We'll look at whether it's small or large that really isn't isn't a factor.

In the screening process, the real factor as strange as what I said on the earlier question is what is the quality of the rock.

And if it's 40 acres quality rock it'll have our attention and it could be a big trade, but they didn't have that rock potentially we won't pay much attention to it so.

Okay.

That's why we tend to do the bolt on.

We're already familiar with the quality of the rock so.

Sure.

That's that's the big that's the big draw in the amount of the acreage.

Tie with acquisitions to make sure it's quality and the fed is there.

Okay.

And the.

Groups that we have.

Land geology engineering midstream everybody feels good.

About it fitting in and add value.

It seems trite.

And the whole fashion, that's really the way we're thinking about these things.

Thanks that makes sense.

And then just a quick follow up on the.

The.

The comments earlier, just on fighting inflation with within Fisher efficiencies on the capital side did you guys mentioned.

What <unk> could.

Could look like as we move move forward here you had a nice nice number in <unk>. So just curious how that how that will trend just given the backdrop.

Yes, I think I think Gabe, it's Dave Hey, I think.

You know.

We did sort of.

Provide in our slide deck, a bit of an update as to you know.

I don't think we changed our numbers as to what we thought the range of those we're going to be for the rest of the year I think I think that you know.

I'd like to give a big shout out to our production team because I think they've done a terrific job of.

Cost controls over the last couple of years of really really being innovative both in the office and in the field in terms of the.

In terms of driving low down they've gotten water on pipe, 98% of our water on pipe, 83% of our oil on pipe they've been doing all kinds of electrification projects, which is not only saves us money, but it gets rid of.

Compressors out of the field that improves admissions I mean, all kinds of all kinds of positive things you know even in the Eagle Ford, We don't talk about that a lot, but you know we've got a team that's worked too.

All of our wells on Rod pumps, which they needed you know and that's taken a lot of compressors out of the field. It has reduced its reduced emissions. So they've done they've just done a bang up job I think.

Our opinion and.

I really feel like that.

Low <unk> is likely to trend down.

Especially as we add <unk>.

<unk> additional production next year I don't know that the costs will go up as much now I'll qualify that a little bit by what service cost inflation might be you know but.

But I do think that that is.

Look at it today, we would expect those numbers to continue to come down a little bit.

Glenn Stetson, if you're you know he heads our production group when do you want to add anything to that yes. Thank you David as you you said it well that's hard to hard to really expand upon it.

We continue to in 2020, we really did focus on on process and efficiencies and David mentioned most of the centralized compression.

Water and oil on pipe.

Converting wells from onsite.

Generation electrical generation two to grid power and those were some of the big knobs that we turn so when you look forward.

We think that we can we can maintain this level of unit costs.

And continue to chip away at it maybe at a at a lower at a lower rate than.

We did in 2020, but continue to see efficiencies as we move forward.

The other thing while we're on this subject coordination.

Production grew.

With the completion group, Chris and Cliff have done a great job well coordinated so as the Fracs you clean up your waiting there with a pop.

Again, we just have fewer days.

On the AD in the field before we get the production going so makes a big difference and tap and the alloy up in very innovative helps with the ESG.

<unk> way of reduced emissions and.

Shelly would you say.

How much emissions have been reduced in the past year by the production group sure. This is Shelly appellant I work on ESG.

And we're proud that from 2019 to 2020.

Year over year decrease of around 20 per se our total green.

Yes.

Okay.

That's awesome, that's great stuff, Thanks, Kelly and thanks to everyone.

Thank you thanks guys.

Thank you ladies and gentlemen.

The Q&A portion of this morning's conference call I'd like to turn the call over to management for any closing remarks.

Thank you all for your time and attention as always we really appreciate your.

Interest and support and Tam.

And that candor and your questions and then these sessions I always want you to encourage you all to ask whatever you want to ask.

And we're happy to report and placed with.

Progress in EG.

You can tell we're very excited and we have more and more of our young leaders emerging that I think bodes well for the future. So I want once again want to invite all of you all as the nation starts to open up to come see us.

Have lunch or breakfast or dinner with us and.

Well, well talk more but eager for you to.

Keep looking into the operations and I think that you will be.

They pleased with a continuing results and we're getting ready for a great 2022 and finished the year strong.

Thanks.

Okay.

Thank you presenters, ladies and gentlemen, thank all for joining that concludes today's conference call.

Okay.

Yes.

Sure.

[music].

Yes.

[music].

Sure.

Yes.

[music].

Good morning, ladies and gentlemen, welcome to the third quarter, just as a final one Matador resources Company earnings Conference call. My name is Grace 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 web site through November 13th Catharsis funny one.

Discussed in the company's earnings press release issued yesterday.

I'll now turn the call over to Mr. Mac Schmitz capital markets coordinator for Matador. Mr. Schmitz you May proceed.

Thank you Grace.

Everyone and thank you for joining us for Matadors third quarter 2021 earnings conference call. Some.

Some of the presenters today will reference certain non-GAAP financial measures regularly used by Matador resources in measuring the Companys 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 mornings presentation, maybe forward looking and reflect the company's current expectations or forecasts of future events based on 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 recent quarterly report on Form 10-Q.

Finally in addition to the earnings press release, I would like to remind everyone on the call you can find a slide presentation in connection with the third quarter 2021 earnings release under the Investor Relations tab on our website I would now like to call turn the call over to Mr. Joe Foran, our chairman and CEO Joe Thank.

Thank you Barak.

I just have a very brief comment or two before you can begin the question and answer.

Is.

First I just want to say, it's been very exciting for us this year and gratifying.

Alright themes were to pay down debt.

Find a way to increase our dividend.

And to set ourselves up for another good year in 2022.

Coming into the fourth quarter as we have we believe those objectives have been attained and we're excited about the outlook going forward.

And then 2022 is shaping up to be a good year.

All areas of the currently are doing well.

<unk> is performing they're working together.

They're reaching some outstanding results, which is reflected in our current stock price.

And gives me great pleasure just to note that we've.

The last month or so really since the end of August and we visit tiny one record all time record high after another.

And so we appreciate the support we've received from you and from the market.

From our shareholders, especially shout out to our field staff, who worked through the cold and IRS sleeping in their trucks.

Whatever it took to keep the wells running through the not getting up and checking every few hours from the capital efficiency gains at each of the groups have contributed to <unk>.

So that three years ago, we drilled one well that was over.

Well in the half law and this year every well.

Drill will be two miles or longer except for one.

So a great change that.

As added to the performance of the company and we appreciate all the extra effort.

And.

That our staff.

Both here and in the field have done Brian think about this.

High performance execution, and so with that I'd like to turn it.

Back to you for questions.

Okay.

As a reminder to ask a question you will need the grass farm then the number one you talked about let me draw. Your question. Please press the pound key ladies and gentlemen, due to time constraints. We ask that you. Please limit yourself to one question and one follow up again, we ask that you. Please limit yourself to one question and one follow up until all have had a chance to answer.

After which we would welcome additional questions from you.

Your first question comes from the line of Scott Hanold from RBC Capital. Your line is open.

Oh, yes, good morning ill congrats on congrats on the strong quarter again.

I'm kind of wondering into this in this commodity price environment than in the past that you all are going down it looks like youre going to have a fair amount of free cash flow you going forward and it looks like youre going to have enough free cash flow generation to pay off the revolver.

Very early next year, So you know.

I know it's it's.

Maybe you know sort of a bit too early to kind of spend money that you don't have right now, but can you give us a sense of how you think about like free cash flow Big picture moving forward like what are your priorities and how should investors think about matador.

And you know what you do with it.

Scott, It's a great question and it's.

Very worthy question and really we talk about that every day.

What should we do with this.

They expected to see so much more free cash flow.

And.

And different people and how we work we get together, we express our idea assembly work away through them and I would say those plans are still evolving.

At the very core is we want to be sure. This is a once in 10 year opportunity that we make the most of it and.

So where we're and the nice thing is is that we're ahead, we don't have to.

Take a bunch of chances that we can you know we'll be cautious.

But effective and.

We're looking at a range of ideas open to us where you've got our basic ground game with our drilling rigs and prospects that are is going to go forward.

Tom and his group they have got a drill schedule with a lot of.

You know I plus it's all a plus location so.

That basic ground game, there's gotta go ahead, the midstream is growing.

We've been attracting third party.

The third party.

Currently used to participate in the midstream.

And are very pleased with how that's going.

Our land buying group has got a number of ideas and.

We're way in those against that.

The the relative certainty of.

Some number of the wells that were we have scheduled to drill so.

It still is in the formative stage.

We've accomplished what we wanted to do which was pay down the debt.

And that we're in position, we've lowered our debt over the past year as you can say from the slide.

It's down to 100 million today, So we went from $4 75.

100 million and so we have.

Wasn't there to have some money available for.

Either expanding their drilling program or looking at you.

You know small relatively small acquisitions, you know we favor not currently the company, but the bolt on transactions to our existing leases because there's less risk because we know the areas it fits and often that means waiting to expand to.

Uh huh.

From one mile to two miles that now even looking at two and a half or three mile.

Laterals so.

That's.

That's interesting.

You know further expansion.

Perhaps on our <unk>.

Midstream.

But we want to you know.

We're not going to overload getting that debt down and we are certainly uppermost in our mind as being good to our shareholders who have stayed with us.

All of this time and are looking.

Looking to have that potential.

The dividend increase the time in which we're not sure.

But we did this dividend increase a quarter early to signal that they are.

Uppermost in our mind, and we're going to take care of them in the <unk>.

Forthcoming year.

And.

These discussions are going on and we'll have those plans put together was we always do.

January early February and.

I think youre going to like what you say that the choices are are strong and we're very excited Bob David what did I leave out here.

I'm not really sure you lift out anything Joe So I was kind of picking through the things in my mind I guess, Scott the only other thing one other choice or one of the thing we've talked about a little bit was maybe.

There might be an opportune time in the 2022 to look at restructuring the bonds a little bit you know once we have the revolver paid off.

We might look to do that so something we chatted about certainly haven't made any final decision on that at all but.

That's something else that we might consider maybe buying some of that in in restructuring the bonds a little bit just to give maturities pushed out I think that you.

We were real pleased to get to.

This summer we've got an upgrade from S&P, we've got upgrades from Moody's.

I think you know I think we will we will work hard to continue that process and you know.

Our bonds have been trading at 104 or so so we are building.

Yield and about four 5%. These days so I think that we feel like that if we wanted to do something that we could.

Significantly reduced the coupon from where we are now so I think theres a lot of as Jim said, a lot of a lot of options for us going forward.

Yes.

Just wanted to indicate that the way the teams are working together in the later shift is emerging from those teams, it's making allowing David and Matt and me. Another on the exact 18 more time to study these options, which we appreciate and are.

You know our measurement groups and.

So the commodity verification groups are.

It really doing their part to so everybody's working together and yeah.

It's really pleasing to see that new leadership emerging.

I appreciate the color there as my follow up question and I'm not going to push you on 2022 guidance at this point then all that will come probably early next year, but you know given you know the fourth quarter production cadence, where you're shutting in a little bit more wells to I guess bring forward some completions.

Could you give us a sense of like the progression as you get into <unk> 'twenty two because it seems to me you know like.

There could be a pretty significant step up and and maybe in that sequential kind of you know.

Double mid double 15, plus percent into <unk> can you give us a little color on.

Where you see that going.

I'm not trying to avoid it but I'm gonna upon it today [laughter], yes, Scott thanks.

Look I think youre right, so I think that that.

We do expect to see a meaningful increase in production.

In the first quarter of 2022.

Why is that well.

The wells that we will have shut in at Stateline.

<unk>. This next 11 wells should all finished by the end of the year is our expectation and once they do then we will start drilling out plugs and as we do we'll begin to return and restore more of that production.

Online you know so those wells are going to all come back on plus.

Bye I hope mid February or so.

Certainly during the latter part of February there's gonna be 11, new Bonnie wells that are that are coming online. In addition.

We are currently fracking the remaining nine wells to be drilled this year at Stebbins and.

All those are going to be fracked here before long and I think that.

We've committed to having them turned to sales before the end of the year, So theyre going to begin to impact production towards the end of the year, but certainly we will have a full quarter of production in the first quarter.

Got two more wells that uncle tests that are going to get done by the by.

By the end of the year and we will have a full first quarter and we got three wells down in Wolf right now on the Barnett to that will probably come on sometime in the first quarter as well so.

I think that all of that together would suggest that you know.

Over the course of the quarter that our production will begin to grow meaningfully and and then.

You know as you know we've got nine wells.

We're drilling it Rodney.

And those will probably start to come on in.

Mid to late March and so I think that bodes well for you know for.

For the second quarter as well you know so I think I think we feel like that will have meaningful growth and then it'll be fairly sustainable throughout the rest of the year. So.

We're excited about that and you know, we'll we'll put a fine point to where we think those numbers will actually be and be happy to share those.

With our with our next conference call in our guidance release, but the but overall I think we're really excited about whats the whats coming down the pike here.

Alright, I appreciate that great. Thank you.

Thank you and your next question comes from the line of Neil Dingman from curious Securities. Your line is open Sir.

Hi, Good morning first question today is on just curious on some shut ins formation, specifically you all mentioned directly on the release about going directly to artificial lift on five of those 13 boros wells as well as plans to shut in more for longer period ahead of the Bonnie completions. So really my question.

Just wanted to see.

Europe matter, Dave one of the guys could expand a little bit on what you saw in terms of reservoir concert changes or.

What caused you to move sort of artificial lift.

Maybe one other touch on to that.

Our balance.

How are you thinking about the offset sort of production.

So on that I'm trying to sort of think about those two things separately, but love to hear your color on that.

Yep.

Hey, Neal it's David.

You talked a lot into that question I'd have to say so.

Let me.

Let me take a minute and try to unpack it so.

So first of all let's talk about the question you asked with regard to the shut ins.

We plan this quarter in the fourth quarter on the bodies.

As we indicated in the release.

We expect to shut in.

A few more of the Bonnie wells are I shouldn't say cavani wells, a few more of the existing producing wells Bonnie and borrows.

We complete these wells at Bonnie and we expect to set them in for a little bit longer than what we were anticipating this time three months ago why is that well. The biggest reason was as we were fracking. The boros wells, we realized that there was a little more frac communication.

With some of the existing wells than what we had anticipated so.

And I want to be clear that we're all level set on its frac communication is just communication, while we're while we're doing the fracs.

39, now producing wells at.

At Stateline.

Very high value wells that we have created and constructed over the past year, and we're not going to miss him up and so.

Hey.

Yeah.

Because we feel that its way more important too to protect those wells and preserve that value and that's the way we're going to approach. It now you also asked a question about.

The comments, we made about the artificial lift on the first bone spring and the Avalon and.

That I think is also a very easy question to answer.

It seems like some folks thought that we were indicating that the reservoir pressure in these zones was abnormally low absolutely not so the reservoir pressure is what we expected it to be but I think you have to remember.

Remember that we are talking about two of the they're really the two shallower zones that we're completing.

Anywhere the Avalon and the and the first bone spring by definition, they have lower reservoir pressures than they do if you're down in the wolfcamp b or the Wolfcamp a XY.

They're not highly geopressured zones, and we see that all over the basin. So we tend to when we're flowing back wells in the first bone spring or in the Avalon. They just didn't have a little bit lower fluid pressure because they are absolute reservoir pressure is lower but that's not a big deal.

In this particular case.

Let's take the first bone spring.

Those wells those couple of wells took a little bit longer to start cutting hydrocarbons than what other wells have.

At state line or in some other areas and it didn't mean that that that was a problem because it wasn't in fact I can point you to several other cases in the first bone spring, where it's at 30% or so of the load coming back before we started to see hydrocarbons. The right. One three for example, which is up in Rustler breaks is a great example of.

That.

And it's turned out to be one of our best first bone spring well so.

So I'm not I don't think we're concerned at all about any of this right now I want to make it clear all those wells were flowing up Casey.

Not one of them loaded up and down during the course of this process and also you know.

We just as a team several of Neil are making.

1700, Boe's, a day 500 BOE a day and still cleaning up so we're still very encouraged by these wells and their performance and it just it probably would help them. If we just went ahead and installed artificial lift will be doing it before long anyway. So we decided hey, we got the rig we got the time, let's just go ahead.

Put them on gas lift and help them to continue to clean up faster and get to their full potential and that's really that's really what we're doing and that's all that we were that we're really indicating in the commentary we made in the release, so I will say that beyond those wells.

The second bone spring wells were continued to be excellent I'm really happy with the third bone spring card wells that we talked about that's a new zone for us down there not one that we originally thought we'd be completing hats off to the geoscience team in.

Asset team for bringing that zone forward and those are excellent wells and then wanted to demonstrate the fact that we've added some recent wolfcamp b wells, which are the gassy wells and at a time of high gas prices, those who worked out really well for us so.

All in all I think we are.

We're we're in a good place and very happy with the results from the Boros Wells just they just those particular wells just hadn't cleaned up to the point that we thought it made sense to share the results with everybody at this point that's it sounds.

It sounds like right on plan. There is we thought that would you guys great job there and then secondly, just maybe on San Mateo specifically.

Seen some strong midstream deals again recently like we did years ago kind of the highs and wondering given the enormous value all have at San Mateo.

And kind of where you sit with that now any any thoughts on any types of transactions or I know <unk> talked about in the past I'd love to hear kind of where you all think or what do you think about San Mateo at this point.

I'm going to say a little bit and then turn it over to Matt <unk>.

Any shot, but we're real pleased with way San Mateo is going I think.

That work with our partner has been.

Very strong and we're looking at it.

How best to add value to that is it back.

Extensions and connections to our existing system and with our third party contacts.

Sure no it into some other areas, where we may be drilling that where we're looking at.

Doing some new drilling and tab. So the team has looked at a lot of different ways and you are right.

San Mateo is not only added value.

Financially, it's added operational value because darin.

Our a storm.

Our plant was one of 5%.

Only 5% of the plants were able to keep operating we were one of them and.

And the same thing about when we did ready connect the pats been their lighting NEK had advantages and togetherness.

More options and our marketing efforts. So it's been clearly the financial value, but the operational value has been very real too. When we told you we were going to turn on these wells, we've been able to make those deadlines, where if you had.

Some other <unk>.

Midstream company for which you had no control over.

Given.

The situation out there and the delays have been unlikely that we would have met those dates. So we're glad we can keep our word to use it we turn those wells on as we said we would and.

But its Scott.

It's got a lot of opportunities and sorting through them and they ensure we're selective has been the order of the day, Matt what would you add to that.

Joe I think you said it well the thing I would underscore as you begin the <unk>.

Advantage due to operating this business and it is not only for us, but it's also for our third party customers. So what Joe said is exactly right. We're now Matador says we've got four wells at Rustler breaks, we wanted to turn on or at Stateline, and stebbins or wherever that may be.

We've got three pipes sitting there waiting on some good gas, we've got and we've got water. So.

We've tried to take the same approach with our third party customers and I think that's worked out well we've got to you know.

Multiple repeat customers come to us and said, we like what you do with water do you think you would be interested in bringing on the Orlando, where the gas and we've done that and done that successfully so.

I do think Neil to your point of view.

As you contemplate the value of the midstream company relative to commodity prices I think were absolutely seeing an increase in particularly if the rig count would go back up again in the areas. We operate which we think are good areas. There will be a probably even more third party opportunities. So I think we're in a really good position.

Absolutely guys love the Optionality there. Thank you.

Thank you. Your next question comes from the line of John Freeman of Raymond James Your line is open Sir.

Good morning, guys.

Good morning, John.

So you all have done a terrific job just contingent drive.

Costs down and I'm just looking at obviously when we started the year you were targeting 730.

On a D&C basis per se.

<unk> reduced again down to that 600, India.

Full year guidance and I guess, just looking at the first nine months coming in at.

655, I'll frame it sort of imply that you have a pretty pretty big step up in <unk> seven.

750, a foot or so to get to that full year number, which I mean, I realize greater stebbins wells are a little more expensive, but it seems like maybe that's.

Yeah pretty concerning just anything I mean, maybe more thing in front of that.

That now or just sort of whats going into those assumptions to get to that full year number.

Jonathan I'll take first.

I just was going to say the first part and then turn it over to Matt or Billy or to Chris for their comments, but.

The savings are is really in my mind.

Mainly from two parts. One is is that we've worked with.

We've experienced a time where cost came down we have long term relations with these vendors.

And they've helped us along and we don't try to beat them down. So we tried to do is ask ask them to help show us ways that we can improve the efficiency and they've been good about that and second is that sustainable.

That doesn't go away when you improve the process.

<unk>.

Billy's group and the drilling in Chris's group and the completions have done a very good job of reducing days on the well drilling and days on the well franking, we're fracking them faster and when you reduce the days.

You say, it's about 100000, a day on the rigs.

Similar on the fracking.

And just cutting the time.

Thanks for a lot of savings, it's also very sustainable so.

We've worked at it from different angles.

I wanted to commend all of them for doing a great job both here.

The engineers in the office and geologist, but also the people in the field, Matt sorry, I Hope I didn't take too much of your Thunder.

It's all good so it's all good news and I would say John for for US I mean, you kind of hit on something there the wells, we drill down in Stateline, we got very very efficient because they're just get better as you guys were doing them in faster and faster so that did kind of moving down that direction.

I'd say for 'twenty, one I think we're pretty pretty well set on our costs. We've got a lot of things locked in through the end of the year.

Going into 'twenty, two we anticipate and we're looking very closely at this we don't have a number yet but I wouldn't it wouldn't surprise me if we.

We saw something in the 10% to 12% increase.

Steel prices are up.

So that affects us we do have.

The business, we will feel.

Country tubular goods is not a big portion of it.

So we've been working very closely with the.

Our pipe.

We used to be champions is now being.

So we've been working with them to make sure that we have for next year and we're very confident that we do.

But I think to kind of to Joe's point.

We're offsetting a lot of these costs with these efficiencies and so if you just kind of just a couple of examples on the drilling side.

The last quarter, we were talking about a new.

Lateral records for one bottom hole assembly, one bit more motor wanting WD being just a little over 12000 feet and so during this quarter the guys who have significantly beat that.

Where were 13155 feet so.

That eliminates trips.

These days and on that particular, well that was the third bone spring, where we drill down stateline.

We knocked about three days off.

Bridge, which saves us about $175000. So just on the drilling side, we're drilling these wells faster and one of the ones that the Stebbins you mentioned that area, we drilled one.

It's.

Completing these wells passengers very important so if you look back in 2020, we averaged about 250 feet of completed lateral per day, and so fast forward to our latest <unk> operations, we pretty much double but almost 25 feet.

<unk> per day, we actually had one day that was 3600, so that's a pretty good day.

And why that's important Joe mentioned.

The cost savings so we pay by the Frac stage and so the service provider and we're very happy with Universal we're very happy with Alberta.

We were using.

And look and see how much we're going to complete in a day and they adjust their pricing on that so we saved money there we saved money on the marine lines, but maybe as important as we reduce the number of days that we have.

Have offset wells shut in.

Reduce the number of days between spud to turn in line and then even on the safety of these two fronts, we're drilling or completing these wells twice as fast you got limited exposure for having the crews out there for perhaps a day.

The environmental side, if that equipment out there running whether it's running at.

Full speed or whether it's out in the yard meeting so we're able to reduce emissions. There. So I think if you just roll all that up into what we're expecting for next year. I think we're very optimistic that we will have a great year, and we will be able to offset what might be 10, or 12% increase in service costs and some efficiencies.

That's great I appreciate all the color on that topic.

It looks like.

Leverage continues to fall pretty rapidly.

It appears they are getting more comfortable with kind of a lower hedge position and I guess that would typically have as we are.

Approaching upcoming year, just any other color on that.

John just a little bit.

I mentioned, how we are we.

Everybody talks about their their.

Their views and later a little discussion I don't call. It that a clinical analysis of what we ought to be doing.

And it is.

As much or more from the bullish view that our marketing group.

Has in prices going forward as it is the lower leverage I mean.

The lower leverage helps in that.

You know your <unk>.

<unk> got plenty of room on your commercial line of credit but.

We still fundamentally come back.

And look at the all of the circumstances right now you've got a lot of backwardation.

Would you say any add anything to that Joe I think you.

You hit it right on the head as far as the backwardation is definitely the.

<unk>.

You know the draw back the main drawback about doing anything just as it.

I don't think it makes a lot of sense to do that right now.

And.

We're definitely looking at things on a daily basis to make sure or whatever that tipping point.

We will be ready to pounce on it but.

At this point in time I don't see.

A real.

Reason to go out and do anything right now with the current situation, what we're seeing as far as.

The long term.

The curve the way it looks.

Thanks, guys I appreciate it.

Thank you John John.

Thank you and your next question comes from the line of Zach Parhat from J P. Morgan Your line is open.

Yeah.

Thanks, guys for taking my question.

One thing you mentioned earlier on the call was just having the balance sheet capacity to expand the drilling program can.

Can you talk a little bit about the decision to add that fifth rig and just maybe where you go from here why was now the right timing and how do you think about adding additional activity in the future.

Zach I'll be real quick on that.

On the my raising is this is this past year, we've been drilling a couple of years almost all the wells have been 100%.

The 100% now as we move into some different areas, we're getting more non operating interest. So if you have.

You know to drill the same amount of wells.

You have 50% youre going to have to double your rig so that fifth rig is just really going.

To be used primarily in the areas where you've got.

You have 50% interest in year have other non op.

People in there say your net capital spending is the same as when you have four rigs is just.

Proportionality.

David.

Yeah.

I think you said it well Joe Zac.

I think we've tried to make it clear in the in our press release last week and again this week.

The primary impetus for picking up that that rig was first and foremost.

To drill a saltwater disposal well up in the Stebbins area, which we had budgeted and sort of laid out for the beginning of the year.

I think you can appreciate that we drove a lot of new wells up there this year and we felt like we'd even some additional salt water disposal capacity. This well was on the kind.

Kind of on the docket and beginning in August with sort of a good time to get that done so that we could that we could have the well completed.

Sort of simultaneous too.

To win the new wells will start coming on it there et cetera, so that if we.

But we need to get into to find a home for it for the next.

For the next few months and the best place to put it in we felt was Rodney.

Enable us to drill a few more wells there that's always nice to be able to do this time of year, because as we mentioned in the release a week ago.

We are a bit constrained operationally each year by the the meeting habits of the lesser Prairie chicken in new Mexico and that usually is a period between early March and mid June where at least.

Daylight operations I believe are all that are permitted in that period of time. So we usually like to be just in and out so that to.

We're not we're not feeling with the with any of that during that period of time. This enabled us to be able to do that to get these wells drilled will get them fracked there'll be will be turned into sales.

Before theres, new pretty chicken to be made in the world you know and so I think that's a that's all a very positive thing and.

As Joe said, I think whether we hang onto the rig or not will be.

Really I think generally when people ask us that question. It's how do we think we're going to spend a lot of more money next year on drilling and we don't so but we may need then we may need that extra rig just to sort of maintain the same level of capital spend and.

And so I think that's a that's but that's part of the decision making process thats going on right now as to what will be the the final mix of wells that we'll drill next year and how we'll put all that together, which we look forward to sharing at our next call.

Thanks, guys. That's that's great color just one follow up could you talk a little bit about the future development plans at Stateline pretty soon you'll have two packages on both Morro Senate, Bonnie where you've had some really strong results.

How many additional packages in the future or are you expecting to develop at Stateline and maybe if you could talk a little bit about the additional zones, you plan to come back and develop.

I think that once we get this next batch of 11 wells on at Bonnie that'll be 50, producing wells at the Stateline and I think originally we had we had permitted 96, it's amazing what I recommend what I remember plus or minus 100, so that would suggest that.

We're kind of probably halfway through.

There.

I think the zones that we would be talking about in.

In the future that would probably be some more wolfcamp b is that we would be going back and adding because we thought there was two maybe three benches of wolfcamp fees there.

I could see us maybe doing some additional third bone we've done this third bone car, but theres, a third bone Sam it looks pretty good there too that might be something we could do down the road, Mike There's probably a couple of different beaches targets. In this first bone spring and so that's something that we might look at and then of course there are other.

<unk> targets in the Avalon and we even had a brushy canyon target that we've.

We've looked at.

So those are the kinds of things that I think would be primarily on the on the docket going forward My guess is that.

Once we get these next group of Ani wells on we're sort of going to take a little bit of a pause at the stateline and do some other things.

That we want to do for a while and then we will probably will come will come back in a while and continue our efforts to.

The state line, but I think when we sort of rollout.

Our plans for 2022.

We will have a little bit less emphasis on the stateline in 2022 and be able to move at least one of those rigs away or a couple of them away for a while and do some more things we want to do at Rustler breaks over in other areas of Antelope Ridge Theres, a big new chunk of federal acreage that we got at the same time, we got the Stateline and the Rodney Robinson over in Eastern Antelope Ridge.

That I know the Geoscientists are just dying to get some wells down on that I think could be another significant development area for Matador going forward. So.

That's.

Without going into too much detail that's <unk> that's <unk>.

Sort of how I see things evolving in the near future.

Thanks, that's helpful color that's all for me.

Thanks Jay.

Yes.

Our next question comes from the line of Michael <unk> from Stifel. Your line is open.

Hey, good morning, guys.

I had a question on.

Your thoughts on natural gas it looked like your.

Third quarter production.

Gas production was quite a bit stronger than forecasted was that coincidental or anything you did deliberate there too.

<unk> gas during the quarter I know you had a couple of Wolfcamp B wells in May.

Just along those lines how are you thinking about returns on some of your gas your assets versus the where they're ones with prices where they are now.

The haynesville compete because the Wolfcamp b.

Pete with the earlier parts of your inventory.

Yeah, Mike we had debt.

Made some adjustment as gas prices went up and they look stronger to increase our proportion of gas a little bit.

And.

Also just to establish for you and others that we had a lot of gas out really good gas opportunities. It just was that oil prices. They all commodity was getting better practice, but to demonstrate that we had those options going forward, we wanted to drill.

A couple of gas wells.

Good.

More specifics on that yes, sure Joe I think I think what I would add Mike is that first of all.

Third quarter I would say it was a little anomalous from the standpoint, a couple of things that we pointed out in the release.

There were some some mineral interest debt that.

That we had.

That we receive production on from some properties we have in the Haynesville for the first time in the third quarter and we really weren't sure about the timing of the operations of the folks drilling those wells and when that first production might be might be received and so we haven't included that in our original forecast and so that was nice.

Always nice to sort of have free gas and so that was a that added to a bump there in the quarter. We also ended up acquiring a little bit of additional working interest in the in a well or two in the Delaware that tended to be a little bit more gassy wells that.

You know that.

Added to that because we sort of had a little bit of catch up.

On the production there too.

I think as Joe pointed out we.

Did add a couple of Wolfcamp B wells there.

That right now we're happier.

It's just one of those deals were.

If youre going to do it this seems like a really good time to take advantage of that so and I think we've always said we've got some really good gas wells to drill not only to make nice fundings of gas. Its also rich gas. So there's a lot of ngls associated with that and then they also make all along with them. So you know, what's what's not to like about that right now so.

That's one reason that.

We probably have decided to bump a few of those are up in the program.

A little earlier than maybe we might have otherwise.

That makes sense.

Next question is along the lines of the last question you just answered on Stateline. You know you said you're going to be about halfway done once you get.

Just sort of 50 wells here online.

I'm curious could you kind of run through sort of a similar.

The thought process on Rodney Robinson, where are you there in terms of kind of the remaining inventory and then you also mentioned that the eastern acreage be curious to to.

A little bit more about that as well.

What's the potential inventory like there.

Yes, so I'm going to start and then that May get to my my good bidding Tom Elsner here to.

To help me out a little bit so.

I believe I'm correct that we have 10 wells currently producing at Rodney nine that are drilling so that would give US 19, I think that probably works us.

50%, 60% plus or minus through.

Through the inventory that we had there although as always I think the geoscience group and the asset teams continue to identify new targets. So so I wouldn't be surprised if we ultimately end up with more than 40 targets. There thats. What we had originally sort of I think we'd originally permitted like 29 or something like that and so.

So we would be 19 through that but I already know that they've got more than that on the on the drawing board and so I think that we'll see more than that at Rodney before we're done.

With regard to the well maybe I'll just pause and Tom do you want to add anything to that yes, David If you said it very well the teams continue to find new opportunities and Rodney Robinson, where we're interested in this like Stateline. If theyre done carbonate, we see we see potential there at Rodney Robinson, which is one of the wells one of the targets that we're still working on.

<unk> seen any additional federal permits as David mentioned, the initial 29 federal permit that Rodney Robinson that was kind of just to get us get started so that we could diversify R.

Our inventory of permits.

More permitted stateline teams today are in the process of adding and so many more permit that Rodney Robinson for additional zones, and the and that there'd been carbonate entity.

Lower you didn't even to the second bone spring carbonate.

So we have a lot of potential in some of the zones, we haven't really talked about a whole lot and in addition to those we still think there's a lot of potential in the Wolfcamp b in the Brushy Canyon.

The nine wells that we're going to be drawn out Rodney Robinson, and we expect to see this often payouts.

There is initial.

Initial 10 wells have all paid out a variety of Robinson and anytime Youre getting these payouts in.

A year or six months or even less.

We're getting stellar returns.

Glenn's team has done an excellent job.

Taking all of the fluid off of off with Rodney Robinson and.

All the oil all the gas all the water on pipe. There. So we continue to be very excited about the Rodney Robinson tract.

I think with regard to part two of the question.

I'm just going to set it up and then I may kick it to Ned Frost, who heads our geoscience group and let him add a little color but.

We bought originally about 8400 acres.

In that federal lease sale back in October of 2018 really already been three years, its kind of hard to believe that but it was kind of a little just a little before this time three years ago.

And we focused mostly on Rodney and state line, which.

I suppose about.

About half of it will not even half of it so but we do have about I think it's a little over 4000 acres that are that we bought that's pretty contiguous over there in the in the more easterly part of Antelope Ridge and.

I think whats been exciting to us number one we always like the acreage and the opportunity.

I thought it might be a little more exploration focused at the time, but.

I felt like we were getting it for a good price but.

But I think with time, what we've seen is we've been working at Stateline and Rodney Robinson that the rest of the world, It's just gotten closer and closer and make good wells.

On every almost every side of that acreage you know so it really.

Really makes US excited we've got permits in the Hopper right now and looking forward to doing a few tests. There. This year and that you may want to kind of add to the kind of targets that you see there, but I think we feel like that could be a real.

A real positive area for us going forward sure. Yes, Thanks, David I think eastern Antelope Ridge, primarily at that point, we'll be looking at Wolf bone there so that would be.

Wolfcamp a upper and.

Third bone spring sand.

We have three D seismic data that shows that the target heads back theyre pretty well, we're confident that we'll we'll have that and and good quality. There. So like David has said we're excited to get some wells down on that like everything as we drilled the first deeper wells, we're going to see that the shallower targets as we drill.

Through them, so I'm quite certain we'll find we'll find more to do over the air at this point Matador has has drilled 24 unique targets in the Delaware basin, and when I say targets I mean.

Rock intervals that are regionally mappable in discrete and in Thats coming out of 13 separate formation. So I think we are.

I always like to push that number higher and I'm sure. We can find a few more over the air So as always the geoscience team is very excited about what we see and anxious to get some wells in the ground.

And Mark I will say, even though it had <unk> I am sorry to secretly budgeting the core because I'm sure there will be a quarter requested the on one of those wells are coming down the road.

Through a great job with that.

They've made great use of the rock and the I'm sure will want to invest in the little additional thoughts as we as we start into that area because it certainly served us well and all the other areas that we work in.

<unk> Mark I'd say, that's an overriding theme when we get together and talk about what are we where are we going to drill.

What are we going to drill an eagle in the M&A questions.

Some up about this lease being available or.

Do we want.

You know acquire the adjoining lease is the quality of the rock and Thats, what really drives us through all of these decisions and which which tracks to drill is the quality of the rock. So that it is great to have done a great job.

On that and the other groups have contributed to what we're trying to make.

Some of the engineers.

Little more geology oriented in the geologist a little more engineering and land oriented so.

We believe in that interdisciplinary exchange.

Really appreciate the color guys. Thank you very much.

Thank you and your last question comes from the line of Gabe Daoud from Cowen. Your line is open Sir.

Thanks, Hey, good morning, everyone.

Okay.

Guys, just maybe hoping we could just go back to the the.

The comment on potential like small bolt ons.

Could you just quantify that is it like 20 50 million Bucks in terms of smaller or is it hundreds of millions kind of similar to the.

So the heiko deal from 2015.

Yeah.

<unk>.

We'll look at whether it's small or large that really isn't isn't a factor.

In the screening process, the real factor as strange as what I said on the earlier question is what is the quality of the rock.

And if it's 40 acres and quality rock it'll have our attention and it could be a big trade that doesn't have that rock potentially we won't pay much attention to it so.

Okay, Thats and Thats why we tend to do the bolt on.

We're already familiar with the quality of the rock so.

That's that's the big that's the big draw I didn't get the.

And now the acreage.

Todd with acquisitions to make sure it's quality and the fed is there.

And then.

And.

The different groups that we have land geology engineering midstream everybody feels good.

About it fitting in and adding value.

It seems trite, but.

Fashion, that's really the way, we're thinking about they say.

Thanks that makes sense.

And then just a quick follow up on the.

The comments earlier, just on fighting inflation within Fisher efficiencies on the capital side did you guys mentioned.

Just what.

Low could look like as we move move forward here you had a nice nice number in <unk>. So just curious how that how that will trend just given.

Firstly on the backdrop.

Yes, I think I think Gabe, it's Dave Hey, I think.

No.

We did sort of the <unk>.

Provide in our slide deck.

A bit of an update as to.

Don't think we changed our numbers as to what we thought the range of those we're going to be for the rest of the year I think I think that.

I'd like to give a big shout out to our production team because I think they've done a terrific job of.

Cost controls over the last couple of years of really really being innovative both in the office and in the field in terms of.

In terms of driving low down they've gotten water on pipe, 98% of our water on pipe, 83% of our oils on parts they've been doing all kinds of electrification projects, you know, which is not only saves us money, but it gets rid of.

To pressures out of the field that improves admissions I mean, all kinds of all kinds of positive things you know even in the Eagle Ford, We don't talk about that a lot, but you know we've got a team that's worked too.

Put all of our wells on Rod pumps, which they needed you know and that's taken a lot of compressors out of the field, it's reduced Louie it's reduced emissions. So they they've done they've just done a bang up job I think.

In our opinion and.

I really feel like that.

Low <unk> is likely to trend down.

Especially as we add significant additional production next year I don't know that the costs will go up as much now I'll qualify that a little bit by what.

What service cost inflation might be you know, but.

But I do think that debt.

As we would look at it today, we would expect those numbers to continue to come down a little bit.

I think Glenn Stetson is here. He is our production group when do you want to add anything to that yes. Thank you David.

You said it well, it's hard to hard to really expand upon it.

We continue to in 2020, we really did focus on on process and efficiencies and David mentioned most of the centralizing compression getting water and oil on pipe.

Converting wells from onsite.

Generation electrical generation two to grid power and those were some of the big knobs that we turn so when you look forward.

We think that we can we can maintain this level of unit costs and continue to chip away at it.

At a lower at a lower rate than.

We did in 2020, but continue to see efficiencies.

As we move forward.

The other thing while we're on this subject coordination.

With your production growth.

With the completion group, Chris and Cliff have done a great job well coordinated so as the Fracs you clean up your waiting there with a pop.

Again, we just have fewer days on the AD in the field before we get the production going so makes a big difference and.

And the alloy often very innovative helps with the ESG.

Bob.

They all have reduced emissions and.

Shelly would you say.

How much emissions have been reduced in the past year by the production group.

This is Shelly appellant I work on ESG for Matador, and we're proud that from 2019 and 2020.

Our year over year decrease of around 20% and our.

Total greenhouse gas emissions intensity.

That's awesome, that's great stuff, Thanks, Kelly and thanks to everyone.

Thank you thanks guys.

Thank you ladies and gentlemen, this ends the Q&A portion of this morning's conference call I'd like to turn the call over to management for any closing remarks.

Thank you all for your time and attention as always we really appreciate your.

Interest and support and.

And that candor of your questions and then these sessions I always want to encourage you all to ask whatever you want to ask and we're happy to report and pleased with that.

Progress in AG I think can tell we're very excited and we have more and more of our young leaders emerging that I think bodes well for the future. So.

I want to once again want to invite all of you all as the nation starts to open up to come see us have lunch or breakfast or dinner with us and.

Well talk more but eager for you to.

Keep looking into the operations and I think that Youll.

They pleased with a continuing results and we're getting ready for a great 2022 and finished the year strong. Thanks.

Okay.

Thank you presenters, ladies and gentlemen, thank all for joining that concludes today's conference call.

Q3 2021 Matador Resources Co Earnings Call

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