Matador Resources Company (NYSE:MTDR) Q2 2019 Earnings Conference Call Transcript

Aug 01, 2019 • 10:00 am ET

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Matador Resources Company (NYSE:MTDR) Q2 2019 Earnings Conference Call Transcript

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Executive
Joseph Wm. Foran

work and dedication. It sounds corny, but it was truly a team effort. The way everybody put in a little extra effort and applied their skills to achieve in these results is, really, there's not -- I wish I had all the words to express my appreciation the way everybody pit stand and worked together. I know that's corny but it is really fun to see the teams really working with each other to achieve these ends.

Second, I also would like to recognize Midstream. They are certainly coming of age with our most recent project in San Mateo II, as well as continuing to achieve stellar results in San Mateo I. And in particular, we have done now -- this is our, San Mateo II represents our fourth midstream project. All have come in on time, on budget, and I'm pleased to say this most recent one is working right now on track to be on time, on budget too. We have a great partner there with Five Point and appreciate their help and cooperation and goodness to this point and look forward to reporting more on midstream in the next quarter.

Finally, at the beginning of the year, it was clear the market was interested in what kind of efficiencies for each company going to have because that was, I would say, the Number 1 theme when we were on the road is what kind of efficiency are you achieving. And I think these results reflect the increasing capital efficiency that we're enjoying as reflected that we were able to drill more wells, but actually bring in capex with that was less than projected or in the budget. And there was again, a lot of cooperation.

One good example is working with Halliburton on the sand, using local sand, helped bring down the cost without that apparent degradation to our production or reserves. At the same time, part of the team effort was Patterson working with us on rig efficiency and upgrading some of our rigs to the three pumps and the top drive, and really appreciate the way they worked with us. And then the same thing on operational, the cooperation between our Midstream and production group so that when those wells are ready to come online, Midstream was waiting there with the pipe. And we're pleased with the services we've been able to render to other third parties and give them the same type of efficiency.

And finally, just within the organization, I thought there was a really a special effort by all the groups to work within our discipline. The geologists and the engineers and the various teams that we have, the operational and just everything clicked. So it happened this time doesn't mean it happens next time unless we get busy and get to work. But really appreciate also all the kind words that we received for you for the efforts this quarter. And please know, we're going to continue to try to get