Matador Resources Company ($MTDR)

Greetings, everyone. I'm delighted to welcome all of you here. I can remember going back 40 years ago, maybe a little more when we have our annual meetings and we could have had them in a closet really. And today, it's fun to look out there and see over 300 people meeting today to help guide us going forward. So we started with $270,000. And today, we have over $10 billion in assets and moved our shareholder count from 2, which was Nancy and me, and then we were excited when we got to 17, which was our 17 original investors, some of which are here today. And now we have 300 people showing up for a meeting like this, and it's really exciting because so much of our industry has gone to the private equity for capital. And we just stayed with friends and family. And I'm very pleased to report that through Fortune Magazine listed the top 1,000 public companies in the States, and that was across all industries and based on 2024 revenue which, of course, our 2026 will be much better than that, we were ranked at 826. So we broke into the top 1,000. And the Dallas Morning News said we were #1 in revenue per employee across all industries, too. So moving in the right direction and we were a top 10 producer in New Mexico. And it's very exciting, again, because we look around the room, everybody knows some people in here, and we've done this together, everybody pushing on the rock. So I want to welcome everybody officially to the 2026 Annual Meeting of Shareholders of Matador Resources and call the meeting to order. As I indicated, I'm Joe Foran, Founder, Chairman of the Board, Directors and Chief Executive Officer. You all probably all know that, except for my 2 sisters who are here today, and they said, we right there ready to raise their hand. And if you see them raise your hand, don't pay attention to them or encourage them, but I want to recognize them. And hopefully, they'll give me a break today. I would also like to welcome those listening in via our live webcast. For those on the webcast, we have approximately, as I said, 300 shareholders in attendance in person for our 2026 annual meeting. And that's probably the statement that most surprises people on Wall Street when we're on the road, meeting with financial investors is that we still have old fashioned enough to have a real shareholders' meeting annually and then it's an active shareholder group. We have -- before we get to the items to be considered and acted upon this meeting, I'd like to make a few opening remarks. So Mac, where are you? You got it. Okay. First, I want to show -- we started back here with $270,000. And my mother and dad were about the last that I got an investment from because they weren't told me that they would invest, but I had to get some others to invest first. So that's way mom and dads are sometimes. But they were part of the group as well as my grandmother and some other friends, but we started $270,000. And then we sold 20 years later, $388 million. So an original shareholder in first Matador, we call that first Matador, there we're in at $0.89, and we sold for $13.85, I believe. So it was a nice game, but we felt we could do even better the next time around. So we raised $6 million. And today, we have assets over $10 billion. I think officially, it's $12 billion. So the growth has really continued. We don't have much debt. We're -- we've got good things in the pipeline. Being a public company, we can't talk about them, except to say that the pipeline, the staff has done an excellent job with number of projects coming up that should boost us that much further. So it's the best look at the inventory that we've had, just the high quality and the volume and I know the team will do a good job. So if all the people at Matador please stand that help pull that inventory together, please stand. Now I want you to know they are not just people coming to collect checks in this last open period alone that we had over 90 -- almost 100 staffers, buy stock, none sold, but close to 100 people on staff bought stock. So they're not just talking about it, they're putting their money where their mouth is. And we're -- when we're on the road visiting with financial investors, they're just amazed that we're having that kind of participation because most companies don't enjoy that. But our group has gotten out there, and we feel pretty optimistic and looking forward to being here next year to report on that progress. So we went -- and here's the story of this Matador is that in 2017, after we were underway for a little bit, we're beginning to accumulate some positions in the Delaware out there. And then 5 years later, we had 129,000 acres. And today, 3 years later, we've got 212,000 acres in the very best parts of the Delaware. So that outlook just loan on the acreage and Gregg Krug helped lead the effort to start a midstream business. because there are a lot of people having problems in the Delaware, getting their gas to market. So to ensure flow assurance, we kept building on and now we're at a point where we're going to be all around the basin in the best part of the basin ready to take our gas to market to be sure it gets there. But other people's too, and it's a profitable investors. So all the people associated with the midstream company, please stand. These guys have done a great job. Marc, I want you standing too, you've got to be there. Some of you measurement guys to be sure that we get paid everything. And the measurement guys is often an overlooked part of the company because they are the ones that check, the oil and gas business has a funny thing instead of you paying people, what they ask the midstream companies tell you what they bought. Well, sometimes I make a few errors in not counting all the gas and oil that they've taken. So we have a group that has saved led by Rick here that you -- we've nicknamed Hollywood and you'll see later in the program. He gave the video last year and we have another one for you this year that I think you'll enjoy. But they've recovered. It's in the $30 million to $40 million range of they've recovered additional money for gas that was taken, but not yet paid for. So it's a tedious process in a way. But as you know, that's real money. And very much help. So thank you, Rick. Now that I've kind of introduced the idea of Matador, I'd like to recognize our directors who are delighted that they are the ones that really pressure test our ideas. They are the ones that make sure that we keep high caliber and integrity among our staff, and they really work as a team. That's been a big part of our effort is working more and more in teams realizing, it's a complex business, and it takes a team to really think about all the decisions that have to be made in a given year and begin with Tim Parker, our lead independent director. That's not enough to you. Stand, would you please. All right. Tim was ahead of the Troll price, oil and gas process and so the history of Matador, he's been at the forefront and delighted to work with him. And he's investor who bothered to learn the operational side as well as the financial side, which makes a big difference as our Lead Independent Director. Thank you, Tim. Nice. Just hold the applause, I don't want to wear out your hands on this. But we talk about finding better than average people and Gaines Baty has led that effort. Gaines, and I met coaching our boys in baseball. And what I learned from him was that the importance of hiring better-than-average people. And every time we hired someone better than -- we thought better than average, we felt we added value to the staff. And through Gaines we did, and we said we were NIL cool before there was an NIL practice. So thank you, Gaines. This is my daughter Shelly, right. Shelly is a graduate of Yale and a graduate of the University Chicaco School of Business, almost is equal to where I went to school, University of Kentucky. So somewhere in the same category, but we're proud of her good kid, and appreciate you being here. And our husbands come up here to see what all the fuss about Matador us. So John, will you please stand wherever you are. There you are. Good. Thank you, John. Ray Baribault. Ray has been a Director now. How many 12 years, and he's he was with Netherland and Sewell and one of the best petroleum engineers in the country and make sure that our reserves are really there. The projects test out and that we stay on track. And then next, I'd like to recognize Monika Ehrman. Monika has many careers. She's been an engineer. She's been a practicing longer, and now Professor at SMU and came on our board and helps on all the committees and just spend a lotted with her experience, broad experience in making these decisions. And finally, I'd like to recognize Susan Ward, Susan Ward was with Shell for many years and she was the CFO when they took their midstream public. Did I get that right? And the one warning is that anything that we send out to the directors, Susan reads so it's pretty amazing and she has a point of view and an experience that's unique. It's going to help us as we think about taking our Midstream business public as we get a little larger. Thank you. I don't know if I was officially allowed to make that statement or not, but I don't think it's a secret. If they come up here on the stage and carry me off, you all have to come rescue me. Paul Harvey, Paul, you need to really be up here, but we ran out of space. So it's kind of like musical chairs. Leave one that's how you get them into a meeting. So -- but Paul has been a shareholder for over 40 years. And has helped us all through the time on the financial side and on the message. He and Paul Flowers, who's here today have really improved our messaging this year. Paul, where are you? Okay. Stan, these 2 guys have really improved, sharpened our message, and I think you've seen it reflected in the price and giving us outside guidance. Thank you, Paul. Ken Stewart. Ken next to him, Ken is a former Head of Fulbright Northern Fulbright, to me. But anyway, he's the lawyer that signed all the papers published all the papers to make us this corporation today. So when we started back there in '19 -- well, 2003, you filed the incorporation papers and we're ready to take Matador -- first Matador public, except we filed all the papers necessary to go public, except it happened to be on September 10 of all days, and the next morning, as we woke up and we're leaving to go on our chartered flight, watch the planes fly into the building and knew the world had changed. But Ken was nice enough to stay with us and help us file the papers that lead us to being public, this Matador and whatever else we need. He's been the player that plays all the positions. Thank you, Ken. Now you can give everybody a hand. Now I'd like to invite our co-presidents, Van Singleton and Bryan Erman, to introduce our officers and staff. Van and Brian, these are 2 workhorses -- and Van has been our deal maker, and Brian is the one that's kept us falling all the appropriate lines. And it's a long history between us and -- but it's really great to have these capable people. So go here.

Thank you, Joe. We like to say at Matador, the secret sauce of the company is our people, and it really is all the good news that you're going to hear today and exciting things happen at Matador wouldn't happen without the people in this room and the staff that are in the office and the staff in the field. So we'd like to take a moment to recognize the staff that are in attendance today. So we'll start with our Executive Vice President if our EVPs would all stand, please. Next, if we could get all of our Senior Vice Presidents to stand. Then if our Vice President would stand, please. And last but certainly not least, if all the staff that's in attendance could stand for us. And I would like to do not [indiscernible] in attendance. Our field staff are a huge part of what we do every day. I want to recognize them. They're the people that 24/7, 365 days a year, keep it happening. So I want to give a round of applause to them as well because I know that some of them are listening. Now I'd like to invite one of our directors, Shelly Appel, to introduce a few of the special guests in attendance today.

Thanks, Brian. It's a pleasure to be here today and recognize some of our special guests in attendance. Would each of you please stand as I introduce you and would everyone please hold your applause until the end. We'll start with Chris Staten, Rayford High, and Derek Burns of KPMG LLP. The company's independent registered public accounting firm for the year ending December 31, 2026, and members of their team. Mr. Staten is available to respond to any questions you may have for KPMG. Next, Preston Bernhisel, Sarah Dodson and Rusty Shellhorn of Baker Botts LLP and members of their team. Jason Schumacher and Luke Omnis of O'Melveny & Myers LLP and members of their team; and Mark Schaffner of Bell Manali and Martin LLP. Also in attendance are members from our bank group, including David Dodd, Denis Davis and Krishna Raj of RBC -- PNC and Fork Lake and Tim Perry of RBC. Finally, we'd like to recognize a longtime vendor. Forrester Smith from B&L Pipco and his wife Beth and a long-term institutional shareholder, Hodges Capital, Craig Hodges and Derek Mopiner in attendance and members of their team. So all of these individuals and their teams have contributed Matador success over the last year. Would you please join me in a round of applause. And now I'd like to turn it back over to Joe.

Actually, there's a few more I'd really like to recognize, so I'll be limited, but one in particular, it's Wayne Galore. Right. And Wayne was an officer at one of the banks here, and they were considering an investment and there is some challenge from the people above and Wayne put his job on the line, told them to invest, he did, and it was left because we were at $270,000 in capital, and he doubled that to $300,000. So thank you, Wayne. . All right. Thanks, Shelly, and we're a little bit old school, but we do like to know you. So any of you that ever want a tour of our offices in our Maxcom room, please let us know. We'd love to have you and take you around. I would ask Amanda Crawford after the meeting if you ever want if you're not getting the investor alerts or if you like a meeting. So Amanda, please, our Chief of Staff back there, that keeps everything running. Thank you, Amanda. She does every time. Now I'd like to ask Brian to return to the podium and lead the business portion of this meeting.

Thank you, Joe. This meeting is being held today pursuant to the notice that was mailed to each shareholder of record on April 13, 2026, which is the record date of the meeting. I have made available a complete list of the shareholders of the company entitled to vote at this meeting, alphabetically arranged and certified as of the close of business on the record date. Further, I have provided a notice, proxy statement and proxy and an affidavit that such notice, proxy and proxy statement, together with the 2025 annual report of the company were mailed to shareholders of record as of the record date. These documents will be filed with the minutes of the meeting. Derek Gabriel, Senior Staff attorney, Corporate and Midstream Council at Matador has been appointed to act as Inspector of Elections at this meeting. As Inspector of Elections, Derek will ascertain the number of shares of common stock outstanding and the voting power of each, determine the number of common shares represented at the meeting and the validity of the proxies and ballots, count all votes and ballots and certify and declare his determination of the number of shares of common stock represented at the meeting. All holders of record of common stock as of the close of business on the record date are entitled to vote at this meeting either in person or by proxy. Derek, would you please present the attendance report.

As Inspector of Elections, I report that they are present at this meeting in person or represented by proxy, the holders of approximately 115, 739,,804 shares of common stock of the company out of a total of 124,200,880 shares of common stock outstanding and entitled to vote as of the record date. Thus, the holders of approximately 93% of the aggregate outstanding shares of common stock entitled to vote are present in person or represented by proxy at this meeting. Each share of common stock outstanding on the record date is entitled to one vote.

Thank you, Derek. On the basis of the report of the inspector of elections, I declare that a quorum is present at the meeting and the meeting is legally convened. A certified report of the inspector of elections will be attached as an exhibit to the minutes of this meeting. As stated in the notice of this meeting, 3 matters will be considered and acted upon at this meeting. To expedite the actions taken, all matters of business as reflected in the notice will be presented first, and then a ballot will be taken afterwards for voting on each matter. The 3 orders of business for consideration at today's meeting are as follows: the election of 3 directors to our Board of Directors; the approval of a nonbinding advisory vote to approve the 2025 compensation program of our named executive officers, also known as say-on-pay, and the ratification and appointment of KPMG LLP as the company's independent registered public accounting firm for the year ended December 31, 2026. Speaking on behalf of the Board of Directors, we recommend that you vote for the election of the 3 director nominees and for the 2 additional proposals being considered at today's meeting. I would now like to ask Director, Monika Ehrman to introduce the Director Nominees for this meeting.

Good morning, everyone. Thank you, Bryan. Our directors serve staggered 3-year terms and are grouped in Class I, Class II and Class III directors. The reason the staggered terms is for the directors to get to know the key members of the staff and the other members of the Board and to visit facilities in the field and to further educate them in the business. The Class III Board nominees to be considered at the shareholder meeting are Joseph Foran, Reynald Baribault and Timothy Parker. But in the true sense of the Matador family, we know them simply as Joe, Ray and Tim. Mr. Foran founded Matador Resources Company in July 2003. And since our founding has served as Chairman of the Board and Chief Executive Officer. He is also Chair of the Board's Executive Committee. Mr. Foran began his career as an oil and gas independent in 1983 with he and his brilliant wife, Nancy, Co-Founder, founded Foran Oil Company with of $270,000 in contributed capital from 17 of his closest friends and neighbors. The impact of that contribution lives through until today, as we've heard in Mr. Foran's remarks. Today, Matador is one of the top 20 exploration and production companies in the country by market cap listed in Fortune's top 1,000 companies in the U.S. by revenue and 1 of the top 10 oil and gas producers in New Mexico. As the Founder, Chairman of the Board and Chief Executive Officer of Matador Resources Company, Mr. Foran provides board leadership, industry experience and long relationship with many of our shareholders. Mr. Baribault was elected to the Board in 2014 and is Chair of the Board's Operations and Engineering Committee and Prospect Committee. He served as Lead Independent Director of the Board from 2016 to 2019. In addition to co-founding North Plains Energy and NP Resources focused on the Williston Basin in North Dakota, he co-founded and serves as President and Chief Executive Officer of IPR Energy Partners, LLC, a Plano, Texas-based oil and natural gas production operator with current operations in the Fort Worth Basin. Prior to cofounding North Plains Energy NP Resources and IPR Energy Partners. Mr. Baribault served as Vice President, Supervisor and Netherland, Sewell & Associates in their Dallas office from 1990 to 2002, and Mr. Baribault provides valuable insight to our Board on our drilling, completions and reservoir engineering operations as well as growth strategies, midstream operations and administration. Mr. Parker was appointed to the Board in 2018. He serves as Lead Independent Director and Chair of the Board's Capital Markets and Finance Committee. Mr. Parker currently serves as a contractor in charge of research for BrightWork Wealth Management, LLC. Mr. Parker retired in 2017 as portfolio manager and analyst, Natural Resources Group for T.Rowe Price & Associates. He managed the New Era Fund from 2010 into 2013 and managed the energy and natural resources positions of T.Rowe price to small cap value, small cap stock, New Horizons funds from 2013 to 2017. Mr. Parker's extensive experience with a large institutional shareholder and his familiarity with the capital markets and oil and gas industry provide the company with valuable insight. I'll say that it has been a privilege to work with and learn from these 3 talented individuals. More information with respect to the qualifications of each nominee is included in your proxy statement. The Board of Directors recommends that you vote for each nominee. Now I I'd like to turn the time over to Gaines Baty, Chair of Strategic Planning and Compensation Committee to discuss the next proposal.

Thank you, Monica, and thank you all for being here. We always -- we all look forward to this day when you're here. The second order of business is the nonbinding advisory vote to approve the 2025 compensation program of our named executive officers, also known as say-on-pay as set forth in the proxy statement. Our compensation program is designed to reward in both the short-term and the long-term performance that contributes to the implementation of our business strategies, maintenance of our culture, and values and achievement of our objectives. We believe the 2025 compensation program accomplishes these objectives. More information regarding the compensation of our named executive officers is included in the proxy statement. The Board of Directors has recommended that you vote 4 for nonbinding resolution improving in the 2025 compensation of our named executive officers. And now I'd like to ask Ben Colodny as Chief Accounting Officer, to discuss the final order of business before us today in today's meeting. Ben?

Thank you, Gaines and good morning, fellow shareholders. It's an honor to be here standing in for Bill Byerley, who couldn't be with us in person today. I'd like to take this opportunity to thank Bill for his expertise, guidance and leadership of both the Audit Committee and the incredibly talented accounting department here at Matador. He also does a great job fostering open communication and coordination between the committee and KPMG, who has consistently delivered a high-quality team and not most professionalism over the years. The final proposal before us today is the ratification of the appointment of KPMG as the company's independent registered public accounting firm. KPMG served as Matador's independent registered public accounting firm for the fiscal year ended December 31, 2025, and has served as the company's auditor since 2014. The Audit Committee of the Board of Directors has appointed KPMG as Matador's independent registered public accounting firm for the fiscal year ending December 31, 2026. In turn, the Board of Directors has directed that such appointment be submitted to our shareholders for ratification at this meeting. Further information about the services provided by KPMG is set forth in the proxy statement. The Board of Directors recommends that you vote for the ratification of KPMG as the company's independent registered public accounting firm for the year ending December 31, 2026. I will now turn the meeting back to Joe Foran, our Chairman of the Board of Directors and Chief Executive Officer.

Thank you, Ben. On behalf of everyone on the Board and the Matador staff, we thank you for the rigor and expertise that you bring to the accounting department [indiscernible] our outside auditor for the past 12 years, I believe. Is that right? And Derek, there who's going to be taking over that started out, we were one of his first assignments and it's nice to see they're trusting you with larger and larger assignments. So it's a group that knows our company well and has responded when questions have ever come up and we appreciate all the extra work, and the vote on them, of course, and Monika and Gaines, we greatly appreciate all your hard work and expertise in your Board and committee assignments as well as your support for the senior staff and carrying out their task duties and leadership responsibilities. So the 3 orders of business are election of 3 directors, nonbinding vote on the 2025 compensation program and the ratification of the appointment of KPMG as the company's independent registered public accounting firm for the year ending December 31, 2026. We will now distribute ballots to any shareholders present who wish to vote in person. Votes and ballots should be cast at this time only if you have not previously given a proxy if you've revoked a proxy previously given by you or if you are now revoking a proxy vote previously cast by you. If your stock is held in brokerage account in order to vote this time, first, provide us with a legal proxy that would have been given to you by your broker, granting you the right to vote that stock. If under these circumstances, you now desire a ballot, please raise your hand, and we'll provide you with one. Seeing no hands in the air. We will finish voting with the inspector of elections now to work on the ballots and give a report on the outcome.

I am pleased to report that each of the nominees for director has been elected to the Board as each nominee has received at least 95 million votes were approximately 87%, which constitutes a majority of the votes cast by the shareholders present in person or represented by proxy at this meeting and entitled to vote on the election of directors. The second motion regarding the nonbinding resolution, approving the compensation of our named executive officers has received a favorable vote of 105,024,470 votes or approximately 96% which constitutes a majority of the shares present in person or represented by proxy at this meeting and entitled to vote on this matter. Finally, the third motion ratifying the selection of KPMG LLP as the company's independent registered public accounting firm for the year ending December 31, 2026 has received a favorable vote of 114,318,225 votes or approximately 99%, which constitutes a majority of the shares present in person or represented by proxy at this meeting and entitled to vote on this matter. Therefore, each of the director nominees and the proposals voted upon today as described in the proxy statement has consistent with the recommendations of the Board of Directors, been approved by the shareholders and will be recorded as such in the minutes of this meeting. We remind our shareholders and other stakeholders that specific information regarding the number of votes cast for or against each proposal will be included in our current report on Form 8-K that will be filed with the Securities and Exchange commission in the days following this meeting.

Thank you, Derek. This completes the scheduled items of business to be conducted at this meeting and wish to thank all of you shareholders, either voting in here or by proxy that we're humbled by the vote count, 99%. We couldn't match you as the auditors. There is lot of confidence expressed in that, but over 90% voting for the directors and some of the highest vote totals voting yes that we've had in years past. And we appreciate that support, and we do not take lightly. Just before adjournment, there were a few people that we needed to recognize. They don't fit nicely in the categories, but 1 of our original 17 investors, Bob Pickard is here today. And we'd like Bob to stand up and all know him. We call him the brave fellow because we didn't know what we were doing at that time. Bob is a very -- [indiscernible] teammates all the way back to first year of high school and really earlier than that. But he ran a very successful construction company, buildings all over the Western United States, but we're glad to having here and part of this. And one of these days, I'll maybe tell you the story of what was behind Bob voting, I think you wanted Nancy to be sure that we could afford a baby, I think. So then since I mentioned Nancy again, I do want Nancy to stand and my co-founder, and then also, we have what we call one of our wildly veterans, Billy, good one, came back to make sure we were keeping the drill bit going to the right and really increase the professionalization of our operating staff and been a key friend and executive with us for years or more and Billy good to have you back here. And then thanks again on the vote count. We appreciate it and we don't take that lightly. Now before going any further on the company update, I'd like to share a video that Rick Alexander, our Executive Vice President of Measurement made for us about Matador. You may remember the slides he did last year was accompanied with music. And as I understand it, the drumbeat that you made here in this movie is really Rick back there, adding some sound effects. Is that true? All right. Rick, please stand up and be recognized. We are going to start your video now. [Presentation]

[indiscernible] Now that Don rate to name Hollywood or what else he can do. But great job again, Rick. Well done. Tim Parker.

Hi, everyone. Nice to see you all again. I'm Tim Parker. Thanks for electing me again. I appreciate it. Looking forward to serving another 3 years. And I just want to say that this is a really solid company that we all know. But there are reasons to like it maybe a little bit more than we do currently. And this is a time in our company's life span where no, we can't grow 20% organically anymore. But we might grow single digits, and then we might do some interesting transactions. We did that with a lease sale recently. We're looking at things to do with Midstream, catalyze some value there. We're finally going to get out of Waha pricing next year that we're going to take all our gas east on pipeline options, and we'll know what it costs to get over there and not be worried that Waha will be negative as it's been for much of the start of this year. The fact that we have this strong inventory in an industry that is increasingly short on inventory shouldn't be overlooked either. So it's not just -- it's too simple to say we have 210,000 acres, so many of these acres have multiple targets under each acre. So it's actually any more locations than you would think under this acreage. This gives us easily 10 to 15 years of inventory, probably more than that, more than we need. I think that will become increasingly valuable over time because the basin is maturing not for us necessarily, but for many of our peers. So I don't think investors fully recognize the value that we can generate from our assets. And I would also call your attention to Q1 results and keep an eye on for Q2 results because the well outperformance of new wells has been excellent. You don't always see this, and it's hard to do because we don't try to underforecast wells. We try to put a good number on the page and yet we're outperforming that, particularly in these wells we've drilled in the last few quarters. And so I think we have good reason to feel like production will be strong and oily for the balance of this year. Also, you've heard us talk about our balance sheet. We took on a little bit of debt for the lease sale recently. We have to pay it off in a year or so. Our goal is to keep our debt to EBITDA to kind of cash flow to about 1x in normal situations so that we can flex up for something like an acquisition or the lease sale and then bring that back down to a manageable level of debt. We want to be prepared for the inevitable fall in commodity prices, may be high today for oil, but nothing lasts forever. Finally, we know that we pay a fixed dividend and we've been increasing it sharply the last several years. We plan to keep increasing our fixed dividend. This is one of the one of uses of our free cash flow. We may not grow as fast as we used to, but we pay a dividend now. We hope you appreciate it. We're at a time in the market right now that companies like Matador are not as appreciated as other more financially levered companies. Financially levered companies in energy need this high oil price to survive. And so those stocks are the ones investors tend to focus on. We're going to survive to the other side, no matter what, where the sort of company needs that will do things to enhance our value over this year and the years to come. And that will generate value for our shareholders. But we may not be the favorites today. And that's because for all the good things we do as a company and everybody in the audience here that does these good things, makes good decisions that turns these assets into cash flow. All we can do is control our decisions, make the right decisions, do the right thing, make the right transactions. One day the market is going to figure it out. You just can't overthink it. Sometimes the market likes you sometimes the market doesn't, but cash flow we'll catch people's eyes eventually. So we keep growing our cash flow, keep generating value, we're going to keep climbing the mountain. Thank you very much.

Next who will be, Baribault, who heads up our prospect committees, our engineering committees or a lot of our due diligence on matters and was formally with Netherland and Sewell. And then he had a company out of Denver, they did very well. And so we were glad to get him and his expertise to help us make our decisions at Matador. Rey?

Thank you, Joe. Thanks for your leadership and thank you all for taking the time to attend today. And for those not here, thank you for listening in on the webcast. Speaking for all the directors here, we appreciate the Matador shareholder nation and your interest and support and for all the talented and dedicated employees across the company in the office and in the field. Matador is well positioned with its staff and unique inventory of Delaware Basin opportunities to drive profitability, increase efficiencies and deploy its capital in a manner to optimize return on investments. Their dedication and motivation are key to creating new opportunities and continuing to build value. Slide 1 here, in this slide, I'd like to highlight the updated MAXCOM operations center completed late last year with a larger footprint and improved equipment and accommodations for the staff [ mining ] it. Currently, 11 engineers and geologists are on a 12-hour 7-day rotation schedules, providing 24/7 drilling planning and horizontal lateral steering guidance. The original center started in 2018 and has been pivotal to Matador success in achieving were 470 drilling performance records now in the last 7 years. And that's thanks to the 75 engineers and geologists that have rotated through the center over that time period and to the field staff that executed on these records. Their efforts strive to implement best practices and deliver the best well plans. Recent advances in 3D seismic processing that the geoscience team is constantly refining, provide the MAXCOM professionals with the tools to look around the corner and plan ahead of the drill bit. The results are compelling with a near 99% in zone reservoir targeting and the company posting a record 10.5-day drilling record to reach total depth on a 3-mile recent lateral well. I'll have more to add shortly on the company's long lateral program and the efficiencies and benefits that it's providing. To date, Matador has drilled 34 wells with 3-mile lateral lengths or longer and an average in 2026 of 15.5 days from spud to total depth, which is impressive. And as well, the teams have drilled 32 U-Turn lateral wells with 2 of them recently being 3 miles in length. On the next slide, I'd like to highlight here the location of Matador's acreage that you're familiar looking at and as well as all the tracks in green, are noting that the added BLM acreage from the recent BLM sale in the Ranger and Antelope Ridge areas of the company's assets. So this acreage presents a rare and exciting opportunity serving as a blank canvas for Matador's asset and operating teams to design and execute operated well plans that will extract maximum hydrocarbon volumes at the lowest possible cost. So the entirety of the acreage positions you see here in these 3 areas totals about 5,154 acres. That's going to allow for future wells to be developed in their respective spacing units without any prior well interference effects or previous reservoir drainage concerns. It also enables the creation of long lateral spacing units in excess of 2 miles and multiple well batches tailored to reduce drilling and completion cost per foot through the use of leading-edge technologies and processes that Matador is well versed at like enhanced rotary steerable drilling systems and trimul-frac stimulation operations. By leveraging Matador's unique and robust midstream assets in San Mateo and through its wholly owned systems, the operations group has a competitive advantage to further reduce stimulation costs in 2 distinct in significant ways, by supplying treated produced formation water for fracturing operations, which in turn saves on water disposal costs and water sourcing cost for frac supply water and also now by supplying field-produced natural gas which can power Matador's contracted electric frac fleets with Halliburton and NexTier. In my understanding, the teams are looking at possibly sourcing field-produced natural gas for drilling rig operations on the horizon. So Matador is executing on these efficiency initiatives on its multi-well batch large-scale projects. Notably, the recently completed 9 Wolfcamp wells in what the company is calling their gas unit with lateral lengths of 3.4 miles, which are the longest in company history, Guss us well-being unit being this track acreage down here on the Texas, New Mexico border. So some of the longest laterals drilled to date in New Mexico these 9 wells with total measured depths in the 30,000-foot range. So we're here sitting in Hilton Lincoln Plaza, just across from the Galleria, so drilling 30,000 feet total measured depth and length is the equivalent of spudding your well here where we sit today and drilling to Dallas Love Field. So the teams are doing that day in and day out and successfully doing it and hitting reservoir targets that range from 10 feet to 30 feet in thickness for near 6 miles. That's impressive. The next slide, I'll hone in on an aerial of the federal unit for the frac operations that were completed earlier this year on this pad. So this slide shows Nexteer's hybrid electric frac fleet equipment with a 35-megawatt turbine for power generation, that being this part of the operation here. So next year is Patterson's well completions business unit. So between Nexteer and Halliburton, those 2 contractors are stimulating all of Matador's wells. So this setup illustrates a remote trimul-frac operation for a 7-well batch stimulation. So there are 4 wells on this main Gus pad. And if you can see these different colored frac stacks, red, yellow, there's a blue and a white, those are conveniently color code for unambiguous operations to continue on this tight pad. So in addition, off to the right, these lines you see on the surface, our 5.5-inch steel casing lines that connect this fleet to another Gus pad within the spacing unit, where 3 additional wells, approximately a quarter mile away are also being simultaneously fracture stimulated. So recall in a trial frac operation, 3 of the wells are being simultaneously fracked at once while the alternate 3 wells are undergoing wireline perforating operations. So in this foreground, the screen equipment is in the process of the perforating operations on 1 of the 4 wells you see here. So trimul-fracking is a strategically planned and then prosecuted operation that results in significant saving costs that Matador has championed in the last 2 years. A lot of effort goes into it. The large silos that you see here towards the back of the pad on an incline hold in total around 3 million pounds of frac sand. So throughout the Gus federal stimulation operation on these 7 wells, Matador used 10 million pounds of frac sand per day and another way to equate that volume, 10 million pounds per day in the spirit of American 250. That volume is the equivalent to pumping the weight of the Statute of Liberty approximately every 5 hours over the entire operation. The 2 large cylindrical tanks that you see in the back are holding 20,000 barrels, 10,000 barrels each or approximately 850,000 gallons of treated produced water from Matador's operated recycling facility nearby. Throughout the operation, the frac used around 200,000 barrels per day of recycled water, which is the equivalent of cycling 13 Olympic-size swimming pools per day, day in and day out and on this pads, there's 70,000 hydraulic horsepower of equipment, and that's equivalent to stacking 100 Formula One cars on one pad to deliver the power and the necessary horsepower to complete this operation. So the turbine here, burned natural gas largely produced from Matador's operations rather than burning diesel. And in total, the frac crew used 340,000 MMBtu, which is a little less than 0.5 Bcf of gas during the operation. And that gas, if it was sold would have been selling into a negative Waha price market. So instead of paying a gas purchase sort to take your gas away, Matador was conveniently using it as a fuel source for this operation. So the fleet as a whole used natural gas for roughly 90% of the fuel source on this operation and that saved around $30 to $50 per foot for 9 wells reaching, which reduces the exposure to elevated diesel costs as well in the current environment. So the wells in Gus unit were originally permitted in space to be drilled in 2 separate spacing units with lateral lengths that were going to average 1.7 miles, the land and regulatory permitting teams with working closely in concert with the operations team. and with management approval had the foresight to leverage the team's ability to execute as well as utilize their diligence and experience to combine these 2 smaller units with the state and federal regulatory agencies into 1 larger unit with a 3 -- allowing for a 3.4 mile lateral design. So this resulting Gus federal unit development that's actually being turned to sales this week, saved the company $66 million in capital spend than what was originally planned in the original design with 2 separate smaller spacing units. This patch well operation combining longer laterals, consolidated production facilities, the optimized use of trimul-frac operations on multi-well pads as well as the use of company-operated recycled water and field natural gas delivered a cost per foot basis for this operation that was approximately 18% lower than what the company's average in this area was for the last year. So the style of innovation, integration and execution reflects how the teams plan to approach the development of the units that will be formed in the BLM acreage for years to come. That will maximize value and return on investment for years to come, as I said. This will contribute in a meaningful way to Matador's continued financial strength and meeting long-term performance goals of the company. So to wrap up, Matador's quality assets in the Delaware, which is the premium basin and its unique mix of production and midstream facilities with the dedicated, driven and talented staff are creating value, generating high returns and growing shareholder value. As Joe frequently comments, we like our chances. So thank you for your time and attention and interest and support for Matador.

Great job. Great job, Bryan. That was a terrific presentation. Good morning. I'm delighted to be here. I've been an independent director for Matador 2.5 years. And I thank you for the opportunity to share my views on the company's Midstream performance and outlook today. As you know, the great majority of Matador's assets are upstream, exploration development and production. That has been and continues to be the major focus of the company throughout its 20-year history. Midstream assets include pipelines for oil, gas and water, gas processing plants and water disposal wells and related operations and while Matador's Midstream segment is a relatively small component of Matador, about 15% of 2025 consolidated adjusted EBITDA or operating cash flow. And a relatively new segment started a little over a decade ago. It adds a lot to the company's overall integrated value. Having a midstream business gives Matador flow assurance to sell its production and provides Matador marketing opportunities and flexibility. Many of the industry's original midstream assets in the U.S. and in the Gulf were built by the major oil companies, not because the majors necessarily wanted to be in the pipeline business, but because having a way to get produced oil and gas to ready markets and not be held captive was and is critical. And onshore in the Permian, natural gas flaring is not an option. So if a producer cannot sell its produced natural gas, its wells must be shut in, which hurts cash returns. I've been very impressed by how well Matador has grown and operated its Midstream and strategic capital allocation choices that have been made by the leadership. Midstream has grown as the company's upstream operations have grown via the brick by brick land approach as well as sizable completed M&A transactions. Pipeline and plant expansions have been made to take advantage of profitable opportunities to create more cash flow for the overall enterprise, and that means more cash flow can be pumped back into the upstream business that can benefit by higher oil prices like those we are experiencing today. Matador's midstream growth has been both inorganic through M&A and organic and the same value maximization mindset and operating team culture is evident. Potential challenges have been anticipated and plans developed and put in place, supported by other areas of the company to provide the optionality needed to thrive in any environment. Most of the company's midstream operations, as was mentioned, are conducted through its 51% owned San Mateo joint venture with the private equity group Five-point infrastructure. At the end of 2025, San Mateo's system, which is operated by Matador, included natural gas processing plant with about 340 miles of pipeline and 720 million cubic feet per day of gas processing capacity. Produced water gathering and disposal services with 195 miles of pipeline, 16 water disposal wells with 475,000 barrels a day of capacity and oil gathering and transportation with 120 miles of pipeline and 3 potential delivery points with a total of 100,000 barrels a day of capacity. In addition to San Mateo's joint venture, majority interest, Matador owns and operates 100% of several other midstream assets, primarily gas gathering pipelines and water handling. Together, the company expects San Mateo and Matador's wholly owned midstream to generate about $360 million of EBITDA in 2026. You'll see from this slide that nearly all of Matador's midstream assets are concentrated near its E&P operations and its existing and recently added as Rey pointed out, acreage in the prolific Delaware Basin. Over time, new pipelines, new interconnects and new or expanded gas plants have been added by midstream to create a spider web to provide ongoing production evacuation assurance to Matador's upstream. A couple of different points to keep in mind when you look at upstream and midstream businesses. And I'd say the first one is debt capacity. Upstream has operating exposure to commodity prices and its cash flows are much more volatile than midstream. Midstream typically operates on a fee basis for transportation or treatment under long-term contracts. Midstream cash flows are viewed as less risky and more predictable by lenders. And as a result, midstream businesses can comfortably sustain higher levels of debt than upstream. It's not unusual for an established midstream business to carry debt-to-EBITDA ratios of 3 to 4x compared to upstream ratios, which are considerably lower. This provides an additive source of capital for both segments of Matador to grow. In December of 2025, [indiscernible] JV successfully increased the size of its credit facility commitments from $850 million to $1.1 billion, which also reduced the borrowing rate while also reducing the borrowing rate and adding a new bank. The facility also has an accordion feature to provide additional increases to up to $1.35 billion. So lots of liquidity. The second difference between upstream and downstream and -- midstream is valuation. In the stock market, the equity trading values for midstream are now and have historically been significantly higher than for upstream, sort of more than double. For example, current gas gathering and processing midstream companies are trading at 8x to 13x forward EBITDA compared to independent E&P companies trading at 3 to 4.5x. And as a result of the consolidation in midstream that has occurred, there are not very many choices for investors to participate in the midstream equity or debt, and there's a lot of appetite. Since 2015, Matador has built the value of its midstream assets from nearly 0 to over $1.5 billion as midstream throughput and EBITDA rose to record levels in 2025. Matador's midstream group has found [indiscernible] ways to grow. Examples of Smart Growth or the 2022 acquisition of the Pronto plant now renamed the Marlin plant and its subsequent contribution for cash incentives and another attractive terms to the San Mateo joint venture in late 2024. And that was a remarkable deal. Next slide, please. The Marlin plant expansion came online in second quarter '25 on time and on budget, which is no small thing and really not that common, significantly increasing San Mateo's total gas processing capacity. And third-party Midstream revenues also increased in 2025, including from working interest owners in Matador's operated wells diversifying its revenue base. There are many advantages for Matador to own and operate an embedded, integrated midstream business. First, flow assurance for it and its other customers' equity production. Second, significant free cash flow distributed back to Matador to grow the company's E&P base and repay debt incurred in E&P acquisitions. Third, good opportunities to add blue chip third-party customers looking for reliable alternatives. And on this point, in 2025, San Mateo's processing plants achieved an uptime of over 99%. That's right, 99%. The rest of the basins, operators were between -- we're in the 80s. And as Todd pointed out to me today and sometimes during periods of bad weather or other incidents, there was a 20% improvement in Matador over the others. And that's due to the fact that during periods of bad weather and temporary shutdowns of other midstream facilities, our staff are incredibly dedicated and customer-focused. And fourth, the added potential to raise capital to use from new sources. Matador continues to carefully evaluate a wide range of strategic options to create additional value for you, our shareholders in light of the recent positive developments of the company and in the sector. So all I can say is it's exciting times. I have the benefit to participate in the Board meetings as well as being Chair of the Marketing and Midstream Committee. And what's impressed me the most is the outward-looking perspective maintained by the Midstream leaders and staff. Like all exceptional teams, they seek to recognize situations and market patterns that can create tailwinds or headwinds and move nimbly to anticipate and take advantage. Each person brings a unique perspective to help create value. All the teams bring an integrated approach, knowing success will need coordinated involvement from several different functions ranging from midstream construction and operations, production, marketing, measurement and commercial deal making. I spent much of my career at Shell in the sector and Matador is focused on efficient teamwork and continuous improvement has been among the very best I've seen in the buildup and operation of a safe and outstanding value-added Midstream business. Thank you for your time and interest. And now I'm going to introduce Joe Foran, Founder, Chairman and CEO; and Chris Calvert, CFO, to give you a financial update

Thank you, Susan. And thank you for being a part of the Board, particularly all your experience and expertise in midstream. It fulfills a vital role, and I'd like to introduce now Chris Calvert, who is our CFO and formerly Chief Operating Officer. Chris?

Thank you, Joe. And I actually get a little sentimental Watson Ray's presentation of all the amazing things the operations team is doing and continues to do. But I think [indiscernible] recognized as the new Chief Operating Officer, I think you will still see a lot of amazing things to come out of that group. Moving forward, if I can get my clicker work here or Mac can help me. We've seen this slide. A lot of great metrics on this slide, a lot of growth, a lot of managed growth, maintaining a strong balance sheet. But one thing I'd like to focus on really what's behind this slide. If you look at acreage, we have over 212,000 net acres in the basin that's been built from really a small position back in the very beginning what's not on here, Rey talked about the Federal resale of over 5,000 net acres that were acquired in a very strategic manner, in a manner that has San Mateo connectivity that allowed us to ascribe value. So this deal from a San Mateo perspective, very contiguous, like Rey said, a lot of potential operational efficiencies that come with that and potential reserves that are not accounted for in our numbers. On top of that, we've previously disclosed that Matador has been the first operator to explore a Woodford test in the state of New Mexico. And while drilling completion operations have been done on this well, we are in early time. we're excited what we see. But once again, none of these results, no reserves have been added, no inventory has been ascribed to this potential upside from the Woodford test. Susan just mentioned the benefits of San Mateo. We have $900 million of pipe that, like we said, was grown from nothing. And I think what is behind this slide, and Susan just touched on it is the uptime from the operations excellence that we have in the field, you hear Joe, he had said kind of the anecdote of people sleeping in trucks and working through winter. What I would encourage you all to do after we break, we have a lot of staff here take time to listen and talk to them. Here, they're sleeping in the truck stories because I think every single person as I look into the crowd, we all have one. And I think that's something that's very unique to Matador. When you think through the idea of sleeping in trucks, it's a cultural idea that Bryan Erman talked about, it's something that comes from Joe, from Dan, from Billy Goodwin, that we live every day. And I think that it wasn't very long ago, although I think the Gray hers tell a different story, but I think when I started my career, it was Cliff Humphreys and I, who heads up the completions group to where -- we met -- we bonded. It was the sleepless nights fracking the first wells in Southeast New Mexico, where it would be 2 in the morning, and we would be in a frac pan solving problems, learning efficiencies. And so I would encourage you to reach out and talk to the staff because it's not an anecdote. It's not a onetime thing to where we're sleeping in trucks to provide uptime drilling in winter storm. It's something that we live by. And I think, Billy, you will probably call us the spoil generation that has StarLink and leather seats and Internet whereas I think for you is probably payphones and coins and [indiscernible] or whatever it was. But I think -- I hope, Joe, and Billy, I hope you're proud of something that not only have you pushed but it continues to be a part of the organization today. And so it's something that is behind all of these slides, all of these metrics. And so it's something that I think we're all very proud of. As you look forward, I'll see if I can get it push the button Mac, maybe you can help me here we go. What better way to highlight that belief to live the culture, it is shareholder alignment. And that starts from the top. It works all the way down, like Joe said, 90 members of the staff, 90 members of the staff, that's almost 20%, 25% of the staff with their own money are putting their money where their mouth is. They believe in the story. They believe in the culture. They believe in the future. And I think that's something that's unique to us. Let alone, the 90 people buying, you have the ESPP program that Joe spoke to I think this slide in and of itself speaks. We go on the road a lot. Michael Friends well, Mac, Hanna Rhodes, myself to tell the story. And Joe and I have left. It's -- you really -- if you had to boil it down to one slide, this could potentially be it. You want to have a management team that is aligned with the story that believes in what it is and you look, this slide shows Form 4 quarters Board members, executive team, 0 sales, purchases in the green. All of our peers, all of our peers, not only in the red, but magnitudes below where we are. And so it would be very hard for us if we're on the road selling the stock, selling an idea. If we were on the other end of the scale on the spectrum because it would be very hard to say, look, I don't have personal alignment with the shareholders. And I think for us, that's something that we can be very proud of. It's something that we look forward to. You heard Rey, Tim, Susan, Joe, we like the future. It's onward and upward. And so it's a story that we're very proud to tell. So I thank you guys for taking the time to come to this. Joe, I'll pass it back to you for closing remarks. But thank you guys for the time.

Thank you, Chris. And Chris is off to a good start. They're on the road every week. Our land men are on the road every week, looking for deals, looking for opportunities and they don't stay in the office. And I think that's a difference. And that's sometimes putting up with play delays and plan cancellations, but they're out there finding shareholders, finding people to do business, finding people to do trades. And I think they all deserve a recognition where our land men, who travel every week, would you please stand? . Now what our engineers and geologists, please stand, who put together these prospects. And our division order and land administration people, please stand. Right. And in there, I particularly want to recognize you Yvan Hoover's. Yvan, will you please stand? This is the person leased ready to volunteer to stand, but you've gone up worked together for over 36 years, yes, and we've never lost a lease, here that for failure to have the rentals paid or some other mistakes. So that deserves a special hand. And if I've left out a group or accounting group, again, does a terrific job. So with the accounting group, please stand. And one reason I'm asking them to stand as they're all made as shareholders, too. We have over 95% participation in the employees, shareholder purchase plan. So all of them are taking some money either paycheck each time to invest in Matador stock. So I think that's the way we are. And it's working. And being a public company, I can't say all the things that are going to work, but we've got -- this should be a really exciting year for us, and I look forward to being with you next year. And finally, all those who have traveled from outside Dallas City limits to come to this meeting, would you all please stand. We'll be around. And again, we are open if you all want to visit Matador sometime, please do so. And if you've got young kids, and they are in [indiscernible] and want to have a tour, we'll accommodate them, too. We're always looking for future shareholders. With that, unless there is a motion from the floor, that concludes the meeting. Anything else. Motion being made, seconded. Hearing no discussion, move to immediate vote. All those in favor say, I, all right. Motion carries. And I just ask all of you to think about coming back next year for the meeting and seeing the fruits of what you've seen here, everything from what Chris was outlining, we were doing drilling and from Hollywood. So I look forward to his video again, but it's just a great feeling [indiscernible] pitching together. And we think we have the best shareholder group. We appreciate your support and I think we're making progress and that everybody's got ideas and everybody is a shareholder. And so we really appreciate you all and know that we've been paying the dividend and I've discovered that I can write you all the letters, nice letters talking about our progress and everything, but it seems to have more credibility when I put a check in there. And so we review the dividend policy every meeting. And if we can be a volatile business, but if we -- looks like it's stabilizing and some of these things come through, we'll be raising the dividend again. We want to be a company that steadily raises the dividend. And if you look at the future revenues, they look like they're in our favor. So I can't tell you exactly when, but hang on, we'll -- the dividend is 3% now. We want to get it to 4%. So thank you all. The lawyers will take me aside and beat me up for making a statement like that. But hay, you deserve it. You need to know, and I'm hoping you'll come visit me in Lavagors. So with that, we'll conclude the meeting and do the follow-up. But thanks again to all of you for taking the time to come and please know how much we appreciate you.