MTDR: Federal Lease Sale Activity

Research evidence excerpt

MTDR: Federal Lease Sale Activity

EQUITY RESEARCH QUICK TAKE

RBC Capital Markets, LLC

Scott Hanold (Analyst)

Samuel Cox (Senior Associate)

Octavian Jordan (AVP)

May 20, 2026

Matador Resources Company

Federal Lease Sale Activity

NYSE: MTDR | USD 59.52 | Outperform | Price Target USD 77.00

Sentiment: Neutral

Our view. We believe MTDR was a big participant in today's federal lease sale in NM, winning 5,154 acres across 6 parcels for ~

$1.1 billion. Federal Abstract Company appears to have served as the buyer on behalf of MTDR as with past sales. The price paid

will certainly draw a lot of attention, but we do recognize that this is very high quality core-of-core acreage with low royalties

(1/8), so economics from these areas should be robust. The size of the total acquisition vs MTDR's own market capitalization is

particularly interesting. We believe MTDR has capacity to debt fund this but could evaluate other alternatives. Our quick math

points to leverage levels increasing to 1.1x/0.8x in 2026/2027 from 0.7x/0.4x, previously, if completely debt financed.

Press Release Summary

• MTDR appears to have participated in today's federal lease sale in NM via Federal Abstract Company, spending over $1.1 billion

for 5,154 acres.

• MTDR appears to have paid $220,000/per acre, which is well above historical sales.

• There was a total of 74 parcels available for 33,530 acres with total bids of $4.0 billion or an average of $120,000/acre.

All values in USD unless otherwise noted. Priced as of prior trading day's market close, EST (unless otherwise noted).

Disseminated: May 20, 2026 19:15EDT; Produced: May 20, 2026 19:15EDT

For Required Conflicts Disclosures, see page 2

RBC Capital Markets appreciates your consideration in the 2026 Extel All-America and All-Canada Research Team survey.