Matador Resources Company Announces Credit Rating Upgrade and Increase to San Mateo Credit Facility

Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced (1) recent upgrades by S&P Global Ratings (“S&P”) to the Company’s corporate credit rating and senior unsecured notes and (2) the closing of an amendment to the credit facility of its midstream affiliate, San Mateo Midstream, LLC (“San Mateo”), providing for increased lender commitments.

Matador’s Credit Rating and Senior Unsecured Notes Upgraded by S&P Global Ratings

Matador is pleased to announce that on June 28, 2021 S&P raised Matador’s issuer credit rating from ‘B-’ to ‘B’ and raised the issue-level rating on Matador’s senior unsecured notes from ‘B’ to ‘B+’. In its June 28, 2021 press release, S&P noted, “We expect credit measures to improve on a sustained basis for Matador Resources Co., a Dallas-based crude oil and natural gas exploration and production (E&P) company, based on our revised commodity price assumptions, the Company’s disciplined capital spending program, and recent debt repayments.” More information regarding S&P’s upgrade of Matador may be found at www.spglobal.com/ratingsdirect.

Lender Commitments Increased Under San Mateo’s Revolving Credit Facility

Matador is also pleased to announce a $75 million increase in the lender commitments under San Mateo’s revolving credit facility (the “San Mateo Credit Facility”) from $375 million to $450 million. San Mateo is the Company’s midstream joint venture owned 51% by Matador and 49% by Five Point Energy LLC.

In addition to increasing their commitments in the San Mateo Credit Facility from $375 million to $450 million, the lenders also agreed to refresh and increase the San Mateo Credit Facility’s accordion feature to $250 million. This accordion feature could expand lender commitments to up to $700 million.

At March 31, 2021, San Mateo had $334 million in aggregate borrowings outstanding under the San Mateo Credit Facility and $9 million in outstanding letters of credit issued pursuant to the San Mateo Credit Facility. For accounting purposes, all borrowings outstanding under the San Mateo Credit Facility and all interest payments made pursuant thereto are recorded at 100% of their carrying value in the Company’s consolidated financial statements, even though the San Mateo Credit Facility is non-recourse to Matador.

Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “We are very pleased with S&P’s upgrades to our corporate and issue-level credit ratings, which reflect our ongoing commitment to repaying debt and strengthening our balance sheet. We are also very pleased by the $75 million increase in lender commitments to San Mateo’s credit facility, which should provide our midstream joint venture with greater operating and financial flexibility. We greatly value the strong relationships we enjoy with our lenders, which have been pivotal to the growth and success of both Matador and San Mateo over many years. We wish to express our sincere appreciation to all of the institutions comprising our banking groups for their continued confidence and support, and we look forward to working together with each of them as we grow and build value for our shareholders and bondholders.”

About Matador Resources Company

Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. Additionally, Matador conducts midstream operations, primarily through its midstream joint venture, San Mateo, in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and produced water gathering services and produced water disposal services to third parties.

For more information, visit Matador Resources Company at www.matadorresources.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. “Forward-looking statements” are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,” “project,” “hypothetical,” “forecasted” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, the payment of dividends, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, the following risks related to financial and operational performance: general economic conditions; the Company’s ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; availability of sufficient capital to execute its business plan, including from future cash flows, increases in its borrowing base and otherwise; weather and environmental conditions; the impact of the worldwide spread of the novel coronavirus, or COVID-19, on oil and natural gas demand, oil and natural gas prices and its business; the operating results of the Company’s midstream joint venture’s Black River cryogenic natural gas processing plant; the timing and operating results of the buildout by the Company’s midstream joint venture of oil, natural gas and water gathering and transportation systems and the drilling of any additional produced water disposal wells; and other important factors that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador’s filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of Matador’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.

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