Good day, and welcome to the 2020 Annual Meeting of Shareholders of Matador Resources Company. Will now turn the meeting over to your host, Mr. Joe Foran, Founder, Chairman and Chief Executive Officer.
Thank you, and good morning.
As operator said, I'm Joe Foran, Chairman and CEO of Matador Resources. With our stock up this morning as it is at over 10:40, I think maybe I should just say thank you again and adjourn the meeting. In any event, I will serve as Chairman of the meeting and I recommend Craig Adams, our Head of Land and Legal to serve as Secretary and our Vice President and Deputy General Counsel, Kyle Ellis to serve as the Inspector of Elections. Hearing no objections to these recommendations, I will call for an immediate vote. All those in favor say aye.
Aye. Opposed, same sign. I now formally call Matador's 2020 Annual Meeting of Shareholders to order. At the outset, the Board of Directors and I wish to welcome and to thank each of you listeners for taking the time and trouble of learning how to access this webcast and to participate in Matador's 2020 Annual Meeting. We would rather be welcoming you to the meeting and taking your questions in person, but we very much appreciate your interest and virtual presence.
We will do our best to address the plans, the issues, the challenges, the concerns and the opportunities before us that are of most importance to you. I will now turn the meeting over to Craig Adams for some procedural matters. Craig?
Thank you, Joe. I am Craig Adams, Co Chief Operating Officer with Billy Goodwin and Head of Land and Legal. Please note that if you've not already voted your shares, you may do so now by clicking on the voting button on the web portal in the lower right hand portion of your screen. You must be logged on to the web portal with your 16 digit control number to vote. If you have already mailed in your proxy or voted via the telephone or the Internet, you need not take any further action.
Voting will end promptly after we have reviewed the matters of business for this meeting. Shareholders may also submit questions for our consideration by typing any question into the Ask a Question box provided in the lower left portion of your screen. If you do ask a question, please include your name and contact information so that we may follow-up with you after the annual meeting, if necessary. Out of consideration of the shareholders in attendance, we ask that you limit yourself to one question and one follow-up and further limit questions to those germane to the matters of business before this meeting. You can always call afterwards with your other questions.
In order to ask questions during the meeting, you must also be logged on to the web portal with your 16 digit control number. Joe, back to you and your report.
Thank you, Craig. As the Board, the staff and I were preparing for this meeting, we wanted to make clear upfront 3 fundamental commitments all of us have always tried to do for our shareholders. Our first priority and commitment is to protect and strengthen our balance sheet and asset base, particularly during this time of crisis and uncertainty. 2nd, we are working hard every day to find ways to increase the value of your stock. And third, we are dedicated to getting better every day at our jobs and helping our teams and departments make Matador better every day too.
In light of these commitments, we feel we have a lot of good news to share with you today. Before we go any further, let's take a few moments on the 75th anniversary of the end of World War II in Europe to recognize and express our appreciation to all of our veterans who have served faithfully in various conflicts to protect us and to provide us with our way of life. May our nation's veterans enjoy good health and all the blessings that this country has to offer. I would also like to extend the same wishes and blessings to the new heroes of today, the first responders and healthcare workers trying to contain and cure the coronavirus pandemic. Let's take a moment of silent prayer to express our thanks and appreciation for all the efforts and sacrifices of these heroes wherever they are then and now to help others and to preserve our nation's freedom.
Thank you. Usually at this point in our meetings, we review last year's results, which in this case 2019 was full of good news and record results. And then offer some outlook to you for the current year 2020. Discussing last year 2019 is fairly easy. As you can see, full year 2019 and the Q4 of 2019 were simply the best year and the best quarter in company history.
In 2019, we had $0.75 of GAAP earnings per share and record cash flow per share. We also set new records in production and reserves. All that is good, but also that constitutes yesterday's news, so to speak. At the moment, however, we're living in an entirely different commodity world and working in an entirely different economic and domestic setting. So at our March 2020 Board meeting, both our Board of Directors and Executive Committee realized the world had changed and we needed to change too.
We immediately started revamping our plans and targets for 2020 and stopped talking about 2019 achievements. During this time came the days of coronavirus and the start of the Russian Saudi price war on or about March 19. Our stock and bonds took a dramatic fall in price. Others fell with us, but we fell to the bottom of our peer group. It was a humbling experience for us at Matador.
I'm pleased and relieved we have rebounded since then. Ironically, on the day we went public in 2012, we were producing just 400 barrels of oil per day, yet we were selling for $12 per share. During the worst of this recent crisis time, in the middle of the March, we were producing 40,000 barrels of oil per day, but selling for only $1.11 per share. Looking at this situation a little differently, since 2012, Matador has increased its proved reserves 10 times, but we were only selling for 1 tenth of our original $12 IPO price. Even though the stock is rebounded, it's still painful to think about how much how little it was selling for in the middle of March.
It feels much better today. But when that happened on March 9, 2 days later in response the Board, the staff and I had an emergency meeting and put into effect a new plan for 2020, which included salary cuts, rig cuts, staff cuts and staff rotations to the field. This plan is working and is working better than most anyone had expected as you can see in the chart on your screen. This stock chart shows we have made up a lot of ground since March 9, moving up from number 12 in our peer group to today during which time we've been the number one performer in our peer group. Our peer group is an impressive bunch, mainly bigger companies like Parsley Energy, Cimarex, WPX, Diamondback, Devon and Marathon.
The challenges of coronavirus, low commodity price, storage and transportation issues, investor uncertainty and other potential black swan events are still out there lurking for us to overcome. We believe as we execute on our 3 rig 2020 plan and address these challenges head on, we will not only steadily improve the quality of our assets and expertise and commitment of our team members, but we will also be significantly increasing the number of A plus locations we have in our inventory and asset base. Locations of this caliber are key to our recovery in continued value creation. In the meantime, we are making steady progress in all other phases of our business and conserving capital with the immediate aim of being free cash flow by the end of the year. Overall, we're building a matador that will emerge from the current situation, the company more profitable, more valuable and a matador better in asset quality and better in operating processes and execution.
As most of you know, Matador has had a consistently improving operational history and reserve base through its 40 year history. Today, each shareholder or each share has 1.3 barrels of oil behind it and 1 BOE in gas per share behind each of your shares. It also Matador also has a very unique history among public oil and gas companies. It's been around in one form or another for 40 years focused on the Delaware Basin and has a long standing management team that has worked together for an average of 17 years. It also has a midstream business growing in value.
So there are a lot of assets here and a lot of opportunities for us to take advantage of. Importantly, Matador was not founded by private equity, but by friends and neighbors, most of whom are still shareholders. In fact, due to the continuity of Matador's executive team and its founders and legacy shareholders like Jim Rolf, Charlie Sweeney, the Boris family, Bob Pickard, Jeff Hart, the Cones, the Charles Lane family and others, Matador has a lot of institutional memory. In the past 40 years, we have experienced as a company and as a management team plenty of unexpected black swan situational events. There has always been a close alignment between the management team and the shareholders at Matador and in addressing and resolving such matters as well as generating good outcomes at the same time for all shareholders and stakeholders.
For example, at the last open period, 2 thirds of the Mad Door directors, officers and staffers, almost 200 individuals altogether bought stock and put their money where their mouth was. No question, the Matador staff and board have plenty of skin in the game. Each time over the past 40 years when Matador has experienced headwinds like today, Matador has consistently met the challenge and emerged a stronger company with a more committed workforce, better results and a more positive outlook going forward, as well as a better stock price for the shareholders inside or outside the company. The results speak for themselves. Today's situation appears in many ways to be like the challenges we faced in 1983 when we first started First Matador.
You may have heard me tell this story before. That's okay. I like to tell it anyway. In 1983, oil was then selling at an all time high of $34 a barrel. A year later in June of 1984, the price had declined to less than $10 a barrel.
For a startup company like Matador with no staff and very little production, one would think that would be a disastrous event. But as events turned out, it was one of the most fortunate times for Matador. I'm from Amarillo, Mr. Boone Pickens is from Amarillo. Our families were friends.
His 3 senior oil and gas people elected to retire because Mr. Pickens wanted to take Mesa in a different direction. I flew up to Amarillo the next day and met with these 3 gentlemen and invited them to join our Board of Directors on the premise they would help us grow Matador into a high quality E and P company. I said that I didn't have any money to pay them, but if they're willing to join our Board and take stock, we would split profits, in which case I thought we could build a pretty good company. These three gentlemen all agreed to those terms.
They all provided enormous credibility and expertise to first Matador in its infancy. So without having to spend money, which we did not have much of, we substantially increased Matador's chances for success. These men helped establish the culture of Matador and the professionalism that you see on both the Board and staff today. Although 2 of these gentlemen have passed, notably their families are still active shareholders today. Along the way, these men along with other key directors and shareholders like Florence Mullins, Carl Modic, Gene Edwards, Irvin Wall and Jack Sleeper helped turn Mad Door 1's original capitalization of $270,000 in 1983 into a $388,000,000 sales price in June of 2003.
That sale occurred on a Friday. Then we started this Matador, Matador 2 on the following Monday. Matador 2's technical work, its execution and its properties are acknowledged as some of the best in the business. Matador 2's board and its staff have continued that tradition of doing what we say we would do and performing best in tough times. I can point to a number of successes this year noted in our prior guidance that lends substance to the fact that Matador's future looks very promising.
As I mentioned earlier in 2012 when we went public, we were only making 400 barrels of oil per day, while today we're making over 40,000 barrels per day. Matador's proved reserves have grown 10 times since the day we went public from 27,000,000 barrels of oil or natural gas equivalent to 260,000,000 barrels of oil or natural gas equivalent today. The Matador team has developed a large multiyear inventory amounting to over 775 gross locations of A plus wells to drill. An A plus location is defined as a future drilling location with a projected minimum rate of return of 15% at $30 per barrel West Texas Intermediate oil price and $1.75 per 1,000 cubic feet of natural gas. Each of these kind of wells are expected to produce over 1,000,000 barrels of oil or natural gas equivalent.
Matador has grown from a standing start in 2012 to at least the number 8 oil producer in New Mexico in just 6 years. When these statistics are updated by the New Mexico Oil and Gas Association for 2019, Matador should move up another notch or 2 in the rankings. But isn't it kind of fun to say that you own stock in a company that's producing more oil in New Mexico than Apache, Chevron, Marathon, WPX and Conoco. And we're having a good day on the market. It was tough to arrange, but I was glad our IR department really came through in that regard.
The Matador team has reduced capital spending over 35% this year and reduced G and A spending by 30% to a point where by the end of this year we should be cash flow neutral. Innovative processes like the 20 fourseven MAXCOM ROOM have continued to enable the operations group to drill better wells for less money, saving 1,000,000 of dollars and earning 1,000,000 of dollars in drilling incentives for Matador from its midstream joint venture partner, 5 Point Energy. This room is a collaboration of the operations group and the outstanding geological group we've been developing. Frac costs have declined from 2012 to present, so that today's frac cost per stage is only about 20% of what such fracs cost per stage just a few years ago. The executive team has established a number of training programs for its staffers such as MaxOps for operations, MaxCom for directional drilling, MaxPro for production, LandPro for land and legal activities and a special leadership program for our young professionals who are showing leadership potential taught by 2 Marine Colonels on Matador staff.
We're proud of the boost all this training has provided our young staffers and expect benefits from these extra training programs for years to come. Matador's capital efficiency has clearly come a long way in the past 2 years. Matador's average lateral length is getting longer and longer. This year 83% of our laterals are longer than a mile and at least 72% will meet or beat the criteria for A plus locations. The Board and the staff have all done their part to make Maddoor stronger fiscally and better operationally.
Maddoor was the 1st public oil and gas oil and natural gas company for everyone involved to take pay cuts. The Board and I each took a 25% pay cut. The senior officers took a 20% pay cut. The vice presidents of various departments took a 10% pay cut and the rest of the staff took a 5% pay cut. Everyone from board members to team members has looked for other ways to cut costs and improve capital efficiencies too, from drilling wells faster to creative and scrappy marketing arrangements.
One of the best operational ideas to increase efficiency and further reduce G and A cost came from Billy Goodwin, the Head of our outstanding operations group. Billy is rotating 27 of our more promising young engineers, geologists, landmen and other professionals to the field where they can learn other aspects of the oil and gas business. These young professionals are replacing non employee contract personnel, so that our young professionals are learning different tasks in the oil field and broadening their skills, so that when they finish these rotations and return to Matador's headquarters, they will be more capable and more seasoned about the intricacies of field operations. At the same time, they will have saved Matador 1,000,000 of dollars in salaries and other expenses, while increasing Matador's capabilities and operational efficiency. Meanwhile, this group of diverse disciplines has set 86 drilling records today by working together and saving over $9,400,000 during their on the job training.
San Mateo's growing midstream business has been very complementary to our E and P business. In February 2019, Matador formed San Mateo II, the 2nd joint venture with 5 Point Energy to expand the 3 pipe system for Matador's oil, natural gas and produced water to include the Greater Stebbins area and the state line asset area, which will result in a 3 pipe system stretching 43 miles over some of the most prolific oil and gas fields in the country. This expansion of midstream services is currently on budget and on time. This 3 pipe system could provide up to $240,000,000 in direct value to Matador through a $50,000,000 capital carry and various other performance incentives. This project is expected to be completed in September 2020 in time to receive first production what we expect to be our prolific state line wells.
Despite the challenging environment of COVID-nineteen, San Mateo is off to a great fiscal start in 2020, achieving approximately $26,000,000 of EBITDA during the Q1 of 2020 with higher than expected revenues and lower than expected operational expense. San Mateo is on track to exceed $100,000,000 of EBITDA for the full year 2020 and soon will be free cash flow positive. The potential value of this system is further enhanced by the fact that the Matador is the anchor tenant and continuing to feed the midstream system with its current drilling results. The San Mateo group is working busily this summer to complete the build out of the 3 pipe system at Stebbins and Stateline and complete the 2 $100,000,000 a day of gas processing plant by September, at which time the total design capacity of our 2 gas processing plants will expand at 460,000,000 cubic feet a day. We believe our industry leading saltwater disposal system with capacity of 335,000 barrels of water also adds significant value to Matador.
The other 2 parts of our 3 pipe system, the oil facilities and the gas gathering and processing plants not only provide a tremendous business opportunity in a growing oilfield area, but also add significant operational and competitive advantages to Matador. We appreciate working with Plains Energy and Plains All American Pipeline for the way they've worked with us in creating our oilfield pipeline system. Awarded thanks also to our JV partner in San Mateo, Five Point Energy. Five Point has been a great partner in the conception of these projects and helped significantly in the strategy and execution of our midstream plans. And we appreciate this relationship with them very much both personally and professionally.
Our 2020 production outlook has already been announced and I reaffirm it now. At the 1st January, we made the commitment at Matador to bring the 6 Rodney Robinson wells on the 1st March and we did so. These wells are some of the best wells we've ever drilled and as a group have the capacity to produce over 15,000 barrels of oil per day and 25,000,000 cubic feet of natural gas per day at present. We also pledged to complete the 5 Ray wells by the end of June this year and I'm pleased to say that all 5 are already producing today. We are confident that these wells will be completed and will turn out to be A plus wells.
Similarly, we have announced our plan to bring on 5 Leatherneck wells in August, which we also feel highly confident will be A plus wells and will happen as predicted. Finally, we are planning to have 13 A plus wells from the Stateline area from the Boris and Bonnie leases on production in September of this year. We expect these 13 wells to be individually stronger on average in reserves and production than the highly prolific 6 Rodney Robinson wells. Even better, we will have twice as many Stateline 8 plus wells in September coming online as we did from the Rodney Robinson leases. All of these Stateline Leatherneck and Ray wells will be connected to our 2nd San Mateo plant expansion project.
So why continue to invest in Matador? As we all know, there are no guarantees in life and certainly not in the oil and gas business, but we like our chances. We believe all the necessary ingredients are there to make a great company, good wealth, good finances, good people, good execution. Maddoor's Board and executives and staff need to just keep executing as we have for the past 40 years. Please continue to give Matador your consideration for investment.
We think you'll be glad you did. With that, I'd like to begin the introduction of our directors, special advisors and the shareholder advisory committee. And our directors, Tim Parker is our Lead Independent Director and I'll have a further introduction of Tim as he has a few remarks for us today as Lead Director. Gaines Beatty is our Deputy Lead Independent Director and Gaines has been a friend for close to 30 years and has been a C suite recruiter and has really helped build the team that's here at Matador. Ray Baerbault is a Degreed Engineer, worked at Exxon, worked at Netherland and Sewell and started his own oil and gas company, worked in the Bakken and has lent great expertise to our Board and to our staff.
Craig Burkert has been involved since 1983. He's the CFO of Ramco and helps out with our audit committee. Bill Byerley has been our audit committee chair. Bill had a great career at Price Waterhouse and headed up many of their top oil and gas audits including Conoco and Exxon. Matt Clifton is a former CEO of Holly Energy and brings to our Board great experience in the midstream business.
Monica Erman is our newest Director. She's a petroleum engineer, been active in the private law practice as well as the corporate law practice and is now a tenured oil and gas professor at OU. Julie Forrester Rogers is an electrical engineer, made the high grade on the bar exam, was an associate provost at SMU and is a tenured professor there. David Posner has been a marketing specialist and a member of our Board who's been willing to help in every area possible and has brought really been a great team player on our Board. And then Ken Stewart is an attorney and the former head of Northern Rose Fulbright and heads up our nominations committee.
Special advisors include Jim Rolfe, who was an original one of our original 17 shareholders, a former U. S. Attorney and one of my closest advisors. Rick Finlaw from Amarillo is a legendary land man and has been a 50 year friend and also is willing to pitch in and help with staff training. Shareholder Advisory Committee, 1st, I'd like to recognize Scott King, Co Chair, who is also the Co Founder of This Matador.
He was a great oil finder at Old Matador and was a great oil finder here and a special friend through the years. And I'd like to extend special thanks to you Scott for helping out in all the different areas you have. We've worked together over 25 years. Jim Rolfe co chaired this advisory committee too and again helps us find really qualified directors who really try to look out for the best interest of the shareholders. This group also includes Barry Banker, one of our another one of our original 17 shareholders, Joe Coleman, Kevin Grevy, George Yates and Bobby Pickert and Bobby is another original shareholder back to 1983.
Also in attendance today or his presence is online is Nathan Milton of KPMG LLP, the company's independent registered public accounting firm for the year ending December 31, 2020. Mr. Milton will be available to respond to any questions you may have about audit and accounting matters. I'd also like to make one administrative comment. If any of you are not receiving correspondence from us in the mail or routine investor alerts via our website, please e mail investorsmatadorresources.com.
Note that our press releases and investor presentations are also available on our website, www matadorresources.com. Copies of my remarks are also available on request. Now, I would like to introduce more formally our Lead Director, Tim Parker. Tim was appointed to the Board in 2018 and serves as Lead Independent Director and as Chair of the Board's Capital Markets and Finance Committee. He is one of the ones really protecting my back.
Tim retired in 2017 as Portfolio Manager and Analyst, Natural Resources for T. Rowe Price and Associates. Mr. Parker joined T. Rowe Price in 2,001 as an equity analyst before becoming a portfolio manager in 2010.
He managed the New Era Fund from 2010 to 2013 and managed the energy and natural resource portions of T. Rowe's price and small cap value, small cap stock and New Horizon Funds from 2013 to 2017. Prior to joining T. Rowe Price, Mr. Parker was an investment banking analyst at Robert W.
Baird and Company Inc. Mr. Parker holds a Bachelor of Science degree in Commerce from the University of Virginia and a Master of Business Administration degree from the Darden School of Graduate Business at the University of Virginia. Mr. Parker's or Tim's experience with a large institutional shareholder, his extensive familiarity with capital markets and his knowledge of Matador 2 and Matador 1 provide the company with value insight.
Tim?
Thank you, Joe, and everyone listening. I just wanted to let everybody know a little bit more about myself and a little bit more about why I'm on this board and how we function. And so as Joe said, I spent almost 17 years at T. Rowe Price, a large investment manager in Baltimore. And during that time, I was an investor in Matador in the funds I own, but I'd actually met Joe almost, I think, 19, 20 years ago at First Matador, when they were nearing a public IPO process, but ultimately sold out.
And so I was impressed then with how Joe was trying to build a company and it was great to reacquaint several years later at Matador too. And so I've been in contact with the team and visited with them and visited headquarters and I was always impressed with the culture. The teamwork, the accountability, their desire to grow their knowledge base, to share that knowledge, work as teams and overall integrity, which isn't always there in every company. Those are big reasons why this was the Board I chose to join when I left T. Rowe and not another player in the industry.
It doesn't hurt that Matador also has some really great acreage. So they have these great people to execute on this acreage, but this Northern Delaware acreage really is world class. Largely owing to the fact that Joe and the team have been working this area of the Permian for about 40 years, They were able to move in New Mexico when everyone else was working on the Texas side in the Midland Basin or in the Southern Delaware. And so as other operators zigged and did the predictable things for very expensive costs, the Matador team zagged and amassed this commanding acreage position for much lower cost than peers, 1 third or one quarter of what some of their operators paid, dollars 10,000, dollars 11,000 an acre for us, dollars 30,000, dollars 40,000 for them. It's extremely hard to make good returns when you pay top dollar for acreage.
So the returns on these Delaware Acres, which were acquired at competitive cost, very low cost comparatively, they can compete with virtually any well drilled in the U. S. And as Joe referenced earlier, these A plus locations are battle tested and ready at today's prices, which I don't think $30 will be the price forever, but it is the price today and we don't want to drill wells that don't work. And so we have at least, I think we've referenced 360 operated locations that we can drill, but there's more than 700, 800, if you would consider both our operated and non operated locations and we're constantly moving our non operated locations into our operated count as we acquire more working interest because we're a good operator. So if you combine these great assets with this great culture, these great people, I think you have what was going to be a long term leader in the U.
S. Oil and gas industry and that's what really attracted me to this Board. I want to talk a little bit about this company and you probably already know this if you've been a Matador shareholder for a long time. But these are pretty special people. 2 of my favorite aphorisms that I hear the executive team throw around are, we reserve the right to get smarter and profitable growth at a measured pace.
I'm really kind of happy with the first one because not everybody can look in a mirror and realize they don't have every answer. This Matador team realizes as smart as we are, there are plenty of other smart people and let's have a healthy dialogue. No one has the right answer, but together we're going to generate the optimal solution and we work hard as a team as a result. The other aphorism, profitable growth at a measured pace speaks to the fact that we do not chase growth for growth sake. We chase cash flow growth that generate returns at a measured pace because we don't believe investors are served by growing unprofitably nor do we believe that they are served by drilling unprofitable wells, low return wells.
So in short, we're focusing on what we can control and this team is very good at execution operations. As a Board, we hope to keep them in the guide rails and together we're working to make sensible financial decisions to ensure the best outcome for shareholders in this volatile price environment. Another aspect of this culture I enjoy is its focus on delivery. They do what they say. You can see this was the consistent delivery of operating results.
I mean, we've had better than expected production and cash flow for most of Matador 2's life, 20 plus quarters in a row. And we're working hard to manage the balance sheet right now. This is I would argue it's our top priority right now is to get the balance sheet back into shape because it is tested at a low price environment like this, not to the point where we're in danger, but to a higher level than we want it to be. And speaking of the balance sheet, we plan to both organically delever over time as our cash flow grows and we spend in line with our cash flow. But also inorganically through asset sales, which you've seen us do in recent years, acreage and non core positions, for example.
We're constantly evaluating offers for acreage, for our royalties, even for our midstream business. There are definitely interested buyers for all of these assets at surprisingly strong prices given the price environment and we're constantly evaluating them and ultimately, we will decide what makes the most sense for shareholders, the combination of repairing the balance sheet and selling assets. And then I think you'll be happy with the choices we make to bring our leverage back down to a much more reasonable place. So whether we're talking about strong execution at the wellhead or delevering the balance sheet, if Matador says it's going to do it, expect it to be done. And then I want to highlight one thing that Joe mentioned in his remarks.
These programs like MaxOps and MaxCom and leadership development that Joe referenced, these are not just tools for performance improvement and cost savers for the company. These are great retention tools. Matador has higher retention of its employees than most because it's giving them opportunities to grow and learn and become more well rounded people and better oil and gas people for that matter. They also employees enjoy wide exposure to Board meetings and personal interactions with the Board. And so I think those are the sorts of things that help to keep Mediter competitive in retaining its employees, but also just making them into the best employees they can be.
As a firm, we're working hard to provide more disclosure on ESG, environmental, social and governance issues. Safety has always been a priority and we haven't had a lost time incident in over 5 years for our employees. And we also have water recycling in several areas and most of our oil, gas and water is on pipe, avoiding traffic's inevitable spills and accidents. So we're already doing a lot of those things. We want to just highlight them more so people can understand how much we're doing there.
Finally, Board Mechanics. As the Lead Director, I serve as a liaison between management and the rest of the Board and with outside parties if and when we need that. Like my other Board colleagues, I have served on several other committees, the Capital Markets Committee, Audit Prospect, Strategic Planning Compensation and executive committee in my case, but all of us wear many hats on different committees. And each committee does a lot of the heavy lifting for the Board. It's chaired by an expert in that committee, for example, Bill Byerly on the audit committee, with his accounting background.
The committees will do a lot of the work and make recommendations to the full board, but ultimately the full board ratifies all votes. So we always see what's going on and addition to serving in all of those different committees, it's always brought to the full Board's attention. In my experience in the last 2 years or so, this is a very functional Board. Everybody works well with each other. The discussions are fulsome and clinical and I'm really happy that I've had the chance to work with these people.
This has been a wonderful trip so far and I hope to be involved with the Matador team for a long time to come. Thank you, Joe.
Thank you, Tim. You're very kind in your remarks and we really appreciate it, but you've been a big glue for the Board with your not only your insights having looked at a lot of different companies, but also helping us decide on the path forward in different situations. And you're a great sounding board and I just want you to know how much I appreciate you and appreciate your service on board with our other outstanding directors. We now turn to the 3 proposals up for vote. This meeting is being held today pursuant to the notice that we mailed to each shareholder of record as of April 9, 2020, which is the record date of this meeting.
Secretary has made available a complete list of shareholders of the company entitled to vote at this meeting alphabetically arranged and certified as of the close of business on the record day. Further, the secretaries have provided a notice, proxy statement and proxy and an affidavit that sets notice, proxy statement and proxy together with the 2019 annual report of the company were mailed to the shareholders of record as of that record date. These documents will be filed with the minutes of this meeting. Kyle Ellis, Vice President and Deputy General Counsel has been appointed to serve as the Inspector of Elections at this meeting. As Inspector of Elections, Kyle will ascertain the number of shares of common stock outstanding and the voting power of each, determine the shares of common stock represented at the meeting and the validity of proxies and ballots, count all votes and ballots and certify and declare his determination of the number of shares of common stock represented at this meeting and his count of all votes and ballots.
All holders of record of common stock at the close of business on the record date are entitled to vote at this meeting either in person or by proxy. Kyle, please present the attendance report.
As Inspector of Elections, I report that they are present at this meeting in person or by proxy, the holders of approximately 101,516,000 shares of common stock of the company out of a total of 100 and 16,563,009 shares of common stock outstanding and entitled to vote as of the record date. Thus, the holders of approximately 87% of the aggregate outstanding shares of common stock entitled to be voted are present in person or by proxy at this meeting. Each share of common stock outstanding on the record date is entitled to one vote.
On the basis of the report of the Inspector of Elections, I declare that a quorum is present for the purposes of conducting business at this meeting and this meeting is legally convened and ready to transact business. 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 this morning. As noted earlier, if you have not already done so, you may vote your shares through the voting function on the online portal until the polls close following our review of the 3 orders of business. The first order of business is the election of 4 directors.
Ken Stewart, as Chair of the Nominating Committee, will introduce our 4 nominees. Ken?
Thank you, Joe. As our shareholders will know, our directors serve staggered 3 year terms and are grouped as Class 1, Class 2 and Class 3 directors. The current terms of our present Class 3 directors end with this shareholders meeting, and we will be electing Class III directors for new 3 year terms at this meeting. The Class III board nominees for election at this meeting are Ray Berrybalt, Joel Foran and Tim Parker. Joe has already given a fulsome introduction of Tim Parker, our present Lead Independent Director.
I will just add a personal note that Tim's financial expertise has been invaluable to the Board and the Board also very much appreciates Tim's willingness to shoulder the Lead Director role. Our second nominee is Ray Berrybalt. Ray was elected to the Board in 2014 and has served as Lead Independent Director of the Board from 2016 to 2019. He has a distinguished career as an executive in a number of oil and gas companies and presently he serves as Vice President of Engineering and Resources for MP Resources LLC, a Denver based exploration and production company focused solely in the North Dakota area. Prior to his time in oil and gas production, Mr.
Berrybault served as Vice President, Supervisor and Petroleum Consulting Engineer with Nettler and Sewell Associates. And before that, he began his career as a reservoir engineer with Exxon Company. And Rice received his Bachelor of Science degree in Petroleum Engineering from Louisiana State University and is a licensed professional engineer in Texas. The 3rd nominee for Class 3 Director is someone that is familiar to all of our shareholders, Joe Foran, our Founder, Chairman and Chief Executive Officer. Joe has had an over 40 year career as an executive in oil and gas companies, and the majority of that in companies that he founded.
He has served as the Founder, President Chairman and Chief Executive Officer of Matador Resources since its founding 17 years ago in July 2003. And he has received a number of accolades from our industry and from businesses from the business industry in general and most recently was honored as the Ernst and Young Entrepreneur of the Year for the Southwest region in 2019. And I can say without a doubt on behalf of the Board, the management team and the entire employee base, we are very happy to have Joe as the leader of this company. In addition, in September 2019, the Matador appointed Monica Ehrman to the Board. As is our policy for directors that are appointed between shareholder meetings, Monica is to stand for election at this shareholders meeting.
Monica standing for election is a Class 1 Board member for a term ending at the Shareholders Meeting in 2021. Monica is a professor and teaches at both University of Oklahoma College of Law as well as the University of Oklahoma College of Business. She is the Faculty Director of the Oil and Gas Natural Gas Resources and Energy Center at the University of Oklahoma College of Law. Prior to teaching, she served as petroleum engineer in the upstream, midstream and pipeline sectors of the energy industry. And Monica has a bachelor's degree in petroleum engineering from the University of Alberta, a law degree from Southern Methodist University and a master's in law degree from Yale Law School.
In addition to her expertise in law and engineering, which has been invaluable to the Board, she also has significant expertise in environmental, social and governance issues and is guiding the Board and the company in those areas. So more information with respect to the qualifications of each nominee are included in the proxy statement. And the Board of Directors has recommended that you vote for all of the nominees. Joe?
Thank you, Ken. On behalf of everyone on the Board and the manager or staff, we want to express our appreciation to you, Ken, for your many contributions to the Board and to your long time as a shareholder back to 1990, I believe. Correct. We look forward to your continued service and the ability to call on you in all the tight places.
Thank you, Joe.
The second order of business is a non binding advisory vote to approve the 2019 compensation program of our named executive officers known as say on pay as set forth in the proxy statement. The Board of Directors has recommended that you vote for the non binding resolution approving the 2019 compensation of our named executive officers. Finally, the 3rd order of business is the vote on the ratification of appointment of KPMG LLP as the company's independent registered public accounting firm for the year ending December 31, 2020. Further information about the services provided by KPMG is set forth in the proxy statement. The Board of Directors has recommended that you vote for approval of the ratification of KPMG as the company's independent registered public accounting firm for the year ending December 31, 2020.
To review, the three orders of business are 1, the election of the 4 directors recommended 2, the non binding advisory vote to approve the 2019 compensation program 3, the ratification of the appointment of KPMG as the company's independent registered public accounting firm again, but this time for the year ending December 31, 2020. At this time, we will address any questions germane to these orders of business that have been submitted to us by our shareholders during the meeting. Craig, have we received any questions?
No, sir Joe. At this point, we have not received any questions.
Thank you, Craig. The polls are officially closed.
Kyle, as Inspector of Elections, will you please announce the preliminary results? Having canvassed the vote and having preliminarily counted and determined the number of shares of common stock, voting upon the nominees for Director, as Inspector of Elections, I report that each of the 4 nominees has received the majority of the votes cast by the shareholders at this meeting. The second proposal regarding the non binding resolution approving the 2019 compensation of our named executive officers has received a favorable vote of the majority of the shares present in person or represented by proxy at this meeting and entitled to vote on this matter. Finally, the 3rd motion ratifying the appointment of KPMG LLP as the company's independent registered public accounting firm for the year ending December 31, 2020, has received a favorable vote of the 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 proposals voted upon today, as described in the proxy statement, has, consistent with the recommendation of the Board of Directors, been approved by the shareholders and will be recorded as such in the minutes of this meeting.
Specific information regarding the number of votes cast for or against each proposal will be included in our current report on Form 8 ks that will be filed with the Securities and Exchange Commission.
Yes. But in the preliminary vote is just as a general matter, we received favorable votes of 95% or above.
That's correct, Jeff.
Right. Thank you, Kyle. Now I would like to now ask each nominee to confirm their acceptance of their election as directors. Ray, do you accept your election? Yes, I do accept my election.
Thank you, Ray. We enjoy look forward to working with you for 3 more years at least. Same here, Joe. Tim, do you accept your election?
I accept my election as Director. Thanks, Joe.
Well, I feel that same way, perhaps given the serve what an honor it is to serve with you for another 3 years. Monica, will you accept your election as Director?
Yes. Thank you, Joe. I accept my election as Director. It's been a privilege to have worked with the Board these past months and I look forward to continued service with this tremendous company. Thank you again.
Well, thank you, Monica. And it's our tradition when someone new is elected to the boards, we always allow them to make a few remarks about why you joined and what your experience has been so far?
Well, this company is just an incredibly dynamic one and it has been such a privilege to see the leadership of the Board, the leadership of the company and the dedication and leadership of the staff. And all of those parts, those that heart, that passion have really made this a company that I am proud to be a part of. So thank
you. I wouldn't thank you, Monica, and we've really enjoyed serving with you. It's been just a real pleasure. I would now like to ask Ray Baerbach to recognize outgoing Director, David Posner, whose term has expired at today's meeting. We greatly have appreciated David's expertise in marketing, all of his extra efforts to get to know the staff and his many contributions to the Board and to the company.
Ray? Thanks, Joe. I'd like to take this opportunity on behalf of all of our directors to thank David for his service on our Board and his dedication, his professionalism and his contributions to Matador and its midstream and marketing business. David's career expertise, knowledge and understanding of oil and gas, commodity marketing and natural gas processing have been very helpful during an important expansion phase of Matador's Delaware Basin production and midstream operations. Hats off to David to his service to Matador.
Back to you, Joe.
David, just many, many thanks to you and we'd like to give you
a round of applause, please. Please don't be a stranger and let's stay connected and we hope that you'll be a regular at these annual meetings. Okay. Look forward to seeing you in the future when you have time, David. We'll miss you, but do want you to stay involved.
Your wisdom, integrity and friendship are much appreciated here. This completes the schedule items of business to be conducted at this meeting. There being no further business before the meeting, the formal portion of the 2020 Annual Meeting is now formally adjourned. But in case you're interested, the directors and I have asked our President, Matt Hereford and our CFO to provide a few remarks on the state of Matador and the outlook going forward from their vantage point.
Thanks, Joe. Thanks, everyone, for joining us
as well. We Yes. So we formally just to be clear on the procedure, we formally closed the formal part of the meeting. We're now moving into the 2 management presentations. And now I'd like to formally invite, so we stay official that you as President and David as CFO to make some remarks.
We did get a shareholder question about what the outlook was going into 2021. And I would just simply address it as that a big part of what the share price will do is tied to oil, but it's also tied to what we can accomplish that the 2 of you will talk about. Is that the only question that we have, Craig?
Yes, sir. That's the only one.
All right. So let me turn it over to you, Matt.
Okay. Thanks, Joe, and thanks everyone for joining us. This is always a special day for us here at Matador. We greatly enjoy seeing each of each year and glad we get to at least do this virtually this year. So and Joe, I just kind of wanted to circle back on your comments regarding our leadership program and point out that you 2 are sharing your leadership qualities by also leading one of these groups and that your son, Bill, a decorated Marine Major that recently led his team during a tour in Afghanistan.
And I know that you're proud of Bill and so are we. So we hope that you will let him know how proud we are of him and as well as all the veterans who served us. So thank you for that. Before we jump off into the slides, I just want to make a few comments. Joe, David, myself, the entire executive committee, we're all very proud of the staff and proud of the company.
We continue to execute well and find ways to make progress in these challenging times. At the beginning of the year, we put together what we thought was the exact plan we wanted to execute on for 2020 and that included us running 6 rigs. It was a good plan and it still would be a good plan, one that we felt confident that we could execute on. But as Joe mentioned, the world has changed. We've got the commodity price decline and then the unfortunate COVID-nineteen pandemic that's affected all of us and has actually affected the demand side of our business.
So what did the staff do in a typical Matador fashion to figure out a way to make it work? This isn't the first time we've had to deal with adversity and this team continues to perform. So put our heads together, came up with a great plan for the current scenario that actually involves us running 3 rigs instead of 6. And we're very comfortable and very happy with this plan and know that we can execute on that. That being said, it's been said earlier today, we do reserve the right to get smarter and make any additional changes as we go throughout the year.
We're also very excited about how we continue to develop both our business lines, that being the E and P business with Matador and the midstream business with San Mateo. So we'll talk a little bit about that. So David and I are going to go through this presentation kind of in the Lewis and Clark fashion that we always do. And I hope that you see as we go through this, the teamwork, the innovation and the collaboration of the company. That's typically in our culture and that's what we all strive to do.
So that's what gets us through these tough times and makes us a better company. And as Joe says, we always strive to get a little better every day. This next slide is how the progress we've made since the IPO in 2012. So if you look across the top of this slide, you'll see total proved reserves, net acreage position and our average daily production. And you see the set of pie charts.
The little ones were at the time of the IPO, the big ones are as of March 31, 2020. So we'll jump off into the reserves. And at this point, I'd like to introduce Brad Robinson, our Executive Vice President of Reservoir Engineering and Chief Technology Officer. Brad wears a lot of hats for us and he does a great job working with all the team members on a lot of different matters, not just reserves. So Brad's report indicates that, as Joe said, at the time of the IPO, we had about 27,000,000 BOE.
Almost all that was in the Haynesville. It's gas in the Haynesville. Fast forward now, it's almost 10 times that of $260,000,000 for the company. But what we're going to focus on here today primarily is the Delaware Basin. So if you look at the time of the IPO, we had very, very little reserves, 100,000 in the Delaware Basin and now we're over 240,000,000.
So great job in getting that built up. Net acreage position, at this point, I think I'd like to introduce Van Singleton, who's the Executive Vice President and Head of Land. At the time of our IPO, we had about 7,500 Acres and we told the market we were going to establish a position, a large position in Delaware Basin. That was met with a bit of skepticism. People thought it couldn't be done.
Everything was leased and we were going to have trouble putting a position together. So Van and Craig and the legal team have done a fantastic job putting this 128,000 acres together in the Delaware Basin. And as Tim said, they kind of did it at about a third of the price that others have done. So we're really happy with the acreage we've got, really happy to be operating and executing on that acreage. The daily production numbers you can see again at the Delaware Basin, we had almost no production at the time of the IPO where we're over 60,000 BOE per day just in the Delaware and 70,000 as a company.
This slide is the one we've talked about, profitable growth at a measured pace. It comes up all the time here and it's one of our favorite things. So on the top three or the top half of the slide, you can see three charts that indicate our production growth. And we won't go through each of these. But if you just look at the oil production growth in the last 10 years, in 2010, we had almost no oil production.
2019, we produced 14,000,000 barrels. If you look at the next graph over, that's gas, and that's about a 6x growth over those 10 years and then you can see them combined together. The bottom half of the chart reflects the profitable side of things. So you can see revenues there on the left, EBITDA in the middle. And you see the dip there in the 2015, 2016 range.
Revenue and EBITDA is absolutely affected by commodity price. So this isn't our first rodeo deal and with these low commodity prices we had in 2015, 2016. I think we've navigated pretty well through that. In fact, if you just look at the EBITDA growth, I think it's interesting. In 2010, we had less than $25,000,000 and last year in 2019, we had over 600,000,000 dollars So I talked about the A plus locations and we just kind of wanted to resurface that up and talk about what actually constitutes an A plus plus location.
So it's a minimum 15% rate of return on $30 oil price and $1.75 gas price, and that includes the uplift range yield. So to get in that club, you have to have a pretty healthy EUR. So these wells are going to make over 900,000 barrels of oil or 2,000,000 barrels of oil equivalent per day. So all these wells are longer laterals, they're 1.5 mile, 2 mile laterals, which is an integral part of our strategy for this year and going forward. So, Tim said, I think Joe said it, we've got 775 gross locations, A plus locations, which not quite half of those, 360 are going to be operated by Matador.
So you can look at the cube down on the bottom left that shows the distribution by formation. The pie chart on the right shows it by asset area. So we've got them pretty well distributed vertically and also in geographic areas. With that, I'll turn it over to David.
Well, good morning, everybody. This is David. I'm sure glad to be able to talk to everybody again this year. It's my pleasure. This first slide I was going to make some comments on today shows you our acreage position in the Delaware Basin.
And I just wanted to point out and as you can see in the slide that we continue to deliver strong well results all across our various asset areas in the basin. As Tim pointed out, it's an excellent acreage position. We've got about 236,000 gross and 128,000 net acres across the Delaware Basin today. And I wanted to show this slide to just give you some orientation in case you forget from year to year as to what the various asset areas are that we're working in and there's some new one on this slide perhaps this year. Joe has talked about the Rodney Robinson wells and Matt will talk a little bit more about that specifically.
But just by way of orientation, you can see that those are in the western part of our Antelope Ridge asset area. The 5 Ray wells that have been mentioned, they're going to be neighbors to the Jack Sleeper wells that we recently completed and they're up in Rustler Breaks. The 5 Leatherneck wells that are going to come on in August, they're up in what we call the Greater Stebbins area, which is in the southern part of our Arrowhead asset area and they're going to be neighbors to the 3 Stebbins wells that you see on this particular slide. All the wells with the exception of those initial Stebbins wells are 2 mile laterals. So these are some of our initial 2 mile laterals in the basin and as you can see all of them are doing very well.
The other asset area that I want to particularly orient you to is the Stateline asset area, and that's the one down in Southern Eddy County, right there on the Texas and New Mexico border. We've just completed drilling our first 13 wells in that asset area. We'll talk a little bit more about that in a few minutes. But that's certainly going to be an asset area that you're hearing a lot more about from Matador going forward. And of course, we continue to have activity in our Wolf and Jackson Trust asset areas to the South.
I would also like to acknowledge the work of Van Singleton, Craig Adams and the entire land and legal department for all that they have done to help to assemble this acreage position and to help us get wells ready to drill. Further, I want to acknowledge Ned Frost and his excellent geoscience team for all they've done to identify many, many individual vertical targets that we are exploring for developing. And I think we're up to like 16 or 17 targets now and they continue to find new ones all the time. Our team leaders, Tom Nelsoner, Trent Goodwin, Chris Villarreal, Glenn Stetson, Austin Wright have done a great job of managing these assets on behalf of Matador and their individual team members whether they're geologists or landmen, land administration folks, engineers, whether they're drilling or completing or putting on the facilities, whether they're the accounts that are counting the barrels and the dollars that come from all these properties. We just want you to know how proud we are of each of you and all your hard work that's enabled us to put this position together and deliver such good results.
Thanks, David. Next slide, I want to talk a little bit about Rodney Robinson wells. It was one of the milestones for 2020 was for us to get these wells drilled completed and online in the Q1 and we did. So maybe just to take a step back in time, we actually purchased this acreage in the September 20 BLM lease sale. So that's almost 2 years ago.
But even in the months prior to that lease sale, the team was actively working on this project. Ned and his geoscience team, David had just mentioned, they'd identified this area to be one of our favorites and most perspective in the basin. The BLM announced the lease sale of Van and his team. They started immediately working with the asset team looking at this acreage along with the ops guys as well as the midstream and marketing team just to make sure that we had fully vetted the pros and cons of its acreage block before we ever decided to bid on it and to know exactly what we would be willing to pay for before we went into the auction. So I think the team did a really nice job with that.
We won the bid. We were happy with the bid. And then the team immediately went to work submitting drilling permits, location permits, infrastructure permits, anything that we knew that we would need to make sure that we could meet our timeline and get these wells drilled on line of time and we got it done. So we expected these wells to be very good and they are you can see the cumulative IP up there is over 19,000 BOE per day. Down on the bottom left, you can see we drilled 2 Avalon wells, a lower and an upper.
We drilled 2 Second Bone Spring wells and 2 Wolfcamp ex fly wells, and they've all turned out above our expectations. On the bottom right of the slide, you'll see a cost evaluation. Billy Goodwin, Head of Operations, his team has put together cost estimates, which are the dark blue bars and then the light blue bars on that graph are actual costs for those wells. So over that 6 well project, they say $5,500,000 which is almost $1,000,000 per well. So that's a pretty good start on that block of acreage.
Next slide is actually a photograph of those Rodney Robinson facilities. And so we often comment that the drillers have these wells for a few weeks, the completion guys have them for a few weeks, and then the production department has them for a few decades. So it's very important how we construct and operate these facilities. You can see the IP numbers up there again. Those are big numbers, big gas numbers, big oil numbers, water numbers are big too.
So at one point in time during the fallback operations, we had 46,000 barrels of fluid. So water and oil combined, 46,000 barrels per day. You can see the tanks in the background of this photo. There's actually 14 of them. There's 2 lines of 7.
They're each 1,000 barrel tank. So we have enough storage capacity for 14,000 barrels, which sounds like a lot, but if you're producing 46 during the course of the day, you've got about a third of the day that you can store on location. So the point of this, it's very, very important that we have gas on pipe, water on pipe and oil on pipe before we ever start pulling these wells back. And special thanks to Glenn Stetson, who's our Senior VP and Head of Production and the entire field staff for making sure all this stuff was done right, putting it together and working closely with the midstream and marketing teams to make sure we had agreements in place, so we could get all this stuff up and going in a time manner in which they've actually done. So, we had another example of the teams working well together.
Dave?
Appreciate those comments about Rodney Robinson, Matt, but as was once famously said, anything you can do, I can do better. And here is what we did or are doing on the state line asset in Southern Eddy County. I hope my voice can convey just how excited I am about this asset and all the great work that's gone into it by the staff. This is a great area. It's probably the best area in the Delaware Basin and I don't think that we're the only ones that think so.
Like the Rodney Robinson, it was one of the key tracks that we acquired in the 2018, BLM lease sale. We've also been working on this property for about 2 years from the time of getting the bid ready through acquiring the property, which was in September of 2018 and then over the last 18 to 20 months in getting all the permits and getting the wells ready to drill. And we actually initiated drilling on this property in early January of 2020. There are going to be up to 88 wells we think and maybe more drilled in these blocks. The wells we'll talk about is the Boros wells are on the eastern side of the track and they're all 2 mile laterals.
Going forward we'll be drilling wells on the western side of track that will be called the Bonnie wells, and they'll be up to 2.5 miles. As I mentioned, we started drilling on this really it was just around Christmas time and into the 1st December, and we have recently finished drilling the first 13 Burroughs wells. As you can see in the little cube in the lower right hand corner, this is where the wells are situated vertically, 1 in the Avalon, 2 in the 2nd Bone Spring, 4 in the Wolfcamp A X Y, 4 in the Wolfcamp A Lower and 2 in different zones of the Wolfcamp B. So the initial tests are on 6 different vertical targets and we think that there are probably at least 11 or more. We've also just initiated drilling on the first of what will be 12 Bonnie wells on the western side of this track.
In June July, we will be completing the first 13 Boros wells, completing the fracturing operations. And in August, we'll be drilling out frac plugs, cleaning out these wells and getting them ready to turn to sales. We anticipate that these wells will be turned to sales during early September into October and they will be the 1st wells in the Stateline area to be delivering natural gas into the newly completed plant that Joe mentioned in the as part of the San Mateo II expansion. I think we are very excited to get these wells online. We think they're going to be as good as or better than the wells we drilled at Rodney Robinson.
And we've been thinking about the day these wells get turned to sales for a long time and it's not too far in the future now. The other asset area that's an area of real focus and another really exciting asset for Matador is this Greater Stebbins area in the southern part of the Arrowhead asset area. It also is going to deliver a lot of A plus locations. We always knew this area was going to be a good one for the 2nd Bone Spring and the 3rd Bone Spring, But what we hoped was we would be able to demonstrate that we could push the success of the Wolfcamp AXY northward from Musler Breaks into this area. And the initial wells that we've drilled on the Stebbins property have demonstrated that, albeit these were just 1 mile laterals.
Now we have drilled our first 2 mile laterals in this area, a 5 well batch of Leatherneck wells as we call them, including 2 Third Bone Spring tests, 2 Wolfcamp AXY tests and our 1st Wolfcamp B tests in the area. These wells are going to be completed during the summer months and they're scheduled to come on production sometime in August. We've got about 11,000 gross, 5,000 net acres in this area. They've again a lot of good technical and land work that's been done to continuously block up and add to this acreage position so that we would have more 1.5 and 2 mile laterals to drill. And today we think we have over 150 different potential drilling locations in the Greater Stebbins area.
Think if you look at the little graph in the lower right hand corner, you can also see how well our initial wells are doing. This shows you kind of the Cune production per foot from the first three Sevens wells that we've drilled in the Wolfcamp and how that compares to the average of other wells throughout the Northern Delaware Basin that have been completed non Matador wells in the Wolfcamp A X Y. And you can see that our wells are substantially exceeding the average. Matt?
Thanks, Dave. So one of our other favorite sayings in the firm is drilling better wells for less money. And I think this slide captures a lot of that motion. If you look at the top of this, we're talking about the difference between drilling 2 1 mile laterals and 1 2 mile laterals. So while drilling 2 of the 1 mile laterals on 2 sections of our properties does yield attractive rates of return.
If you're able to drill 1 2 mile lateral on the same two sections, you've got significant advantages. Number 1, you just have to drill 1 vertical section of the wellbore. And secondly, and this is a little bit complicated, we'll try to make it as simple as possible. But due to different regulatory restrictions on how close we can actually drill up to a lease line by drilling 1, 2 mile lateral versus 2, 1 mile laterals, we can complete an additional 8 50 foot of zone in those same two sections. So that's 3 or 4 stages that adds a lot of production, adds a lot of reserves.
So there's a ton of advantages. That's just a couple to drilling 2 mile laterals. Initially, we started drilling 1 mile laterals and there was a good reason to do that. That gets the acreage held by production, lets you delineate zones. But ultimately, we wanted to move to these longer laterals and the land and legal team again has done a great job.
First off, getting the 1 mile laterals ready to drill and getting them drilled, but subsequently creating partnerships with our neighbors, whether that's negotiating joint operating agreements, making trades or whatever other things we need to do, get done to make sure that we can drill more and more of these longer laterals. Joe had mentioned that we're going around 83% longer laterals. That's kind of the norm going forward. We think that almost all of our wells at some time will be these longer laterals. So the graph on the bottom left is yet another representation of cost savings.
So in 2018, we were doing 1 mile laterals primarily, which is about 4,700 foot of completed lateral, and we were averaging about $1500 per completed lateral foot. 2019, we improved greatly there. We got from $1500 down to $1200 per foot, increase the lateral length by about 1,000 feet. For 2020, we have estimated that we'll increase the lateral length by 3,000 feet, which gets us to 8,700 foot of lateral, and we're going to drive those costs down below $1,000 per foot. And I think the ops team is already there for that.
The picture on the bottom right is, as we talked about MaxCom throughout the morning here, I really would like to spend about 2 hours talking about this. But I think in lieu of that, we'll just invite you if you are in Dallas to come by and let us show it to you. It's really something. What you're looking at there in the picture is the actual room and those screens you can see there's real time data coming in from operations out in the field. So these guys are seeing the same thing that the guys in the field are seeing.
Some of the things that they're doing there, they're 24 hours a day, 7 days a week, they're geosteering, they're determining which rock to drill in, they're optimizing drilling parameters, doing a lot of things that are very helpful. If the one thing that you can't quantify is how your geologists are going to be better for knowing a lot about drilling engineering and how your drilling engineers are going to be better for knowing a whole lot about geology. Next slide, Jeff showed this slide. I just wanted to point out a couple of things about it. They have set 86 records, which is very impressive.
They have saved over $9,000,000 But if you look at the spreadsheet down on the bottom, you can see that it's not just one geographic area or it's not just one part of the wellbore. They've been doing it across all geographic areas. You can see Antelope Ridge, Rustler Breaks, Wolf Jackson Trust through there. And then the up and down, the vertical portion surfaced through 2 intermediate sections, they're setting records in all these intervals. So I do want to point out one other thing on this slide before we move on and that's up in the top right, the Jack Sleeper 201H.
It's a 2 mile ladder that we drilled in a little less than 18 days. So if you remember, just a few years back, we came into the basin, it was us and others and we're drilling these wells in 45, maybe 50 days instead of 18 days. So if you just assume 48 days compared to 18 days, that's 30 days less that were on these wells. And even in today's lower service price environment, it's probably $50,000 a day on these rigs. And when costs are high, it's up to $100,000 So there's $1,500,000 to $3,000,000 in cost savings there that is 100% related to efficiencies and we get to keep that regardless of what the service costs are.
Just quickly, we'll move on to San Mateo. I think Joe did a really nice job going through San Mateo, but we do have 2 business lines. So let's talk a little bit about San Mateo. I think one of the main objectives for us for this year is to effectively communicate to the market what the true value of this midstream asset is and also know how it factors into our free cash flow discussion beginning as early as the Q4 of this year. San Mateo is going to generate over $100,000,000 in EBITDA this year for which Matador is entitled to 51% of that.
So a little over $50,000,000 in cash is going to come in the door and we expect that to grow for 2021. The San Mateo II build out will be completed this year and San Mateo combined will have free cash flow in 2021 and that's going to contribute to the Matador's goal to get to a free cash flow status too. At this point, I want to introduce 3 guys. Greg Krug is our Executive Vice President of Marketing and Midstream Strategy. Greg not only runs the marketing department, but he contributes significantly to the San Mateo activities.
And then Matt Spicer and Brian Willey, who are co COOs of San Mateo, they've done what I think is a really nice job of continuing to add value to San Mateo with the ongoing expansion and successful efforts to fund third party business. So with that, I'll turn it back to Dave.
Thank you, Matt. Just want to close out our comments this morning with a few numbers and a little bit of a preview of what the plan is going to look like for the rest of the year. Despite all that went on in the Q1 with the declining oil prices in March and coronavirus and whatever, we did have a very strong Q1. Our production and our oil production, our oil equivalent production both exceeded our expectations. Our lease operating expenses were better than our expectations and in fact they were the best Q1 lease operating expenses that we've had since being a public company.
On the G and A side, our LOE of $2.51 per BOE was actually the best quarter of any vintage we've ever had since being a public company. And this is before a lot of the salary cuts and staff rotations and things actually took effect in the early Q2, as Joe mentioned earlier. So we think we're going to continue to do better there. And likewise, our CapEx came in lower than we expected. And on the drilling side, while some of that was timing related, a good $15,000,000 of that $25,000,000 in savings was just due to clear cost savings due to better efficiency and better service pricing that we received in the Q1.
I'm proud to say that Matador exceeded the guidance of the analysts on Wall Street for the key financial and operational metrics in Q1 2020, which marked the 23rd consecutive quarter or almost 6 years in which we've been able to meet or beat the Street's expectations. Joe presented this slide earlier and it does show the fact that we have revamped our CapEx program. As we've mentioned, we're moving our program from 6 rigs to 3 by the end of the second quarter. 2 of those rigs have already been laid down and the third will be by the end of this month and we'll finish out the year running 3 rigs. That will result in a capital savings of about $250,000,000 compared to our original estimates.
We had originally estimated about $720,000,000 and now we think we'll spend around $470,000,000 dollars at the midpoint of our guidance in CapEx. We did not make any changes to our midstream capital estimates for the year. Those remained at about $95,000,000 And the reason for that is that it was very important to us that we go ahead and complete the build out of the San Mateo II expansion, including the new processing plant, new trunk lines and the other related infrastructure. If you look at the graph on the bottom, you can see the cadence we expect in our capital expenditures for drilling and completing wells for the rest of the year. What you'll see is that we're going to have incurred about 2 thirds of our budget for drilling and completion costs by the end of the second quarter.
So by the end of this month, we'll spend about 2 thirds of the budget and we only have about 1 third of the budget left to spend for the remainder of the year. It's a little higher in the Q3 because we will have quite a bit of completion activity ongoing associated with finishing up the completions on the Boros wells there at the Stateline. In the 4th quarter, we expect to have capital expenditures just a little over $60,000,000 as it will be a fairly light quarter for completions. I think we currently only have about 3 wells scheduled to be completed in the quarter. And as Joe mentioned earlier, we do expect to be free cash flow positive in the 4th quarter.
Now you may wonder with us reducing our rig count this way, are we going to be able to continue to grow our production in 2020? And I'm pleased to say that, yes, we will. We think that our overall production will grow by about 7% this year as you can see in the graph in the upper left hand corner of this slide. Oil production should grow around 9% and natural gas production should go around 5%. Our production will be a little bit more lumpy this year and by that I mean some quarters will be up, some may be flattish or even down, but it's weighted to the Q4 and I think you'll see a significant jump in our production in the Q4 of 2020 as the first 13 Burroughs wells there at the state line are completed late in or turned to sales late in the Q3 and impact our production in the Q4.
One thing I really wanted to point out on this slide though is the graph in the lower left hand corner. That shows you what our Delaware oil and natural gas production growth is going to be for the year. And this is where we're actually spending the money and applying the capital. It's not surprising that we're going to have declines in production in the Eagle Ford and the Haynesville because we're not drilling any wells there or spending any capital. But if you look at where we're putting the money, you can see that that production is going to grow by 15% this year even though we're going to be reducing our rig count from 6% to 3%, 14% in oil and 16% in natural gas.
And so we're still going to have healthy growth even though our rig count is going to be cut by half before the end of the year. I also wanted to just briefly mention our hedging profile for the rest of the year. There's a lot of information on this slide, but what I'd really like you to take away from it is that we restructured a lot of our existing hedges and added some new hedges since the 1st April to protect our balance sheet and our cash flows going forward. We started the year with probably less than 50% of our oil hedge. And in doing these restructurings, we had about 100% of our oil hedged in the 2nd quarter and then probably 78% to 80% in quarters 3 and quarters 4 going forward.
That's given us a lot of comfort in terms of protecting the balance sheet and protecting Matador from any further decline in oil prices over the rest of this year. In addition, we started looking at hedging our natural gas production and we currently have about 45% of our anticipated production hedged during the winter months from November through December of 2020 and then in Q1 of 2021. And I think you can probably expect this to hedge additional oil and natural gas production as we go forward the remainder of this year to provide further protection for our cash flows in 2021. I also wanted to just make a quick question a couple of quick comments about the bank group. First of all, we continue to have a very simple balance sheet and we have no near term debt maturities.
And I think
in this time where we've had
the low prices and a lot of concern in the industry among investors and shareholders. That's been particularly comforting, the fact that we have no near term debt maturities that our revolving our reserve based loan isn't due until 2023 and our bonds are out to 2026. We have a strong supportive bank group. On the reserve side, it's led by the Royal Bank of Canada, but I would be remiss if I didn't note that we also have a San Mateo facility that's administered and led by Scotiabank. The bank group affirmed our borrowing base in the spring redetermination at $900,000,000 We chose to increase our elected commitment to $700,000,000 The bank group stepped up and that was actually oversubscribed.
And we also added 2 new lenders to our commercial bank group. So it was a very successful spring redetermination process. I want you to know that at the end of the first quarter that we were well below our single bank covenant of maximum debt to EBITDA ratio of 4.0. We came in at 2.2. We expect to remain below that covenant for the remainder of the year.
We have sufficient liquidity ample liquidity really to prosecute the drilling program for the remainder of this year. We really appreciate the bank group for all their support over the years and particularly in times like these And I'd really like to just to take a bit of the knowledge of all RBC, Scotia, the Bank of America, BMO, SunTrust, now Truist, Comerica, Iberia, Huntington, CIBC and the 2 newest banks, PNC Bank and Cathay Bank. They've been with us for a long time and Comerica for example has Bank Joe all the way back to Matador one days. I think it's probably well over 30 years at this point. So we're really very grateful to everyone in the bank group.
And finally, I wanted to just to close out with the slide that Joe opened with because I think it kind of will bring the day full circle. And quite frankly, as I look at this slide, I think if there's one slide that I hope you'll take with you and kind of go back and look at from time to time when you think about this meeting or about what Mavgore is doing this year, because I think this slide kind of says it all. This captures all of our 2020 priorities and projects. As Joe said, clearly the first priority for this year is protecting the balance sheet And in the upper left hand corner, you can see all the different things that we've talked about this morning and all the different things that we've been doing to protect the balance sheet and keep ourselves financially healthy in these difficult times. In the lower left corner, we talked about the San Mateo expansion today and what an important project that is for us and how we expect that to be completed in the August timeframe and ready to take first production from both the Boros wells at the Stateline and the Leatherneck wells at Stebbins.
We're going to have 200 additional cubic 1,000,000 cubic feet a day of gas processing capacity, which will get us up to almost 500,000,000 cubic feet a day of processing capacity there in that plant in the Eddy County, the Black River processing plant. And we'll begin to start to earn a lot of the incentives that Five Point has provided for us as part of the San Mateo II expansion, while continuing to earn the incentives that were part of the San Mateo I deal. So this project has also been going on for a year and a half now. It's getting close to completion and we're very excited about it. In the lower right hand corner, as we kind of move counterclockwise, we've talked a lot about another thing that's very important over the last couple of years at Matador and that's been improved capital efficiency and the move to longer laterals.
And we've increased our average lateral length as Matt told you from 4,700 foot So this year, it will be 8,700 foot. And along the way, we've taken out a lot of the cost of those operations, not only through our own efficiency, but through reductions in service costs such that we'll probably be 35% or so better than we were in 2018 in terms of cost per foot. And I think you'll see that our cost per foot on average are going to be in the low 900s or below before we get through the rest of this year. And then finally, in the little green box up at the top that kind of shows you the production milestones that we've talked about on several occasions this morning. The things that we're kind of looking at to mark our progress and you can too, we've got the Rodney Robinson wells and the Ray wells in the rearview mirror now.
We'll be happy to share with you the results of the Ray wells at our next earnings call as they're just now starting to flow back. The Leatherneck wells as we mentioned in the Greater Sediments area are going to start producing here in August. The San Mateo expansion should be largely complete in August near the 1st September. And then in September early October, we're very excited to have first production from the first 13 state line wells, which should really boost our production and service well for the rest of the year. So these are the things that we're focused on.
This is the menu and this is what you can expect us to be doing for the rest of the year. And finally in closing, if you just permit me one personal note, I'd like to say thank you to Rob Makalik, who's our Chief Accounting Officer, to Michael Frenzel, to Mac Schmitz and the other members of the accounting and the finance team, for all of your work in preparation for this meeting, for all your support of me during the year. There's a lot of numbers and a lot of slides that go into putting this together, and I appreciate all the help that you've given to all of us in getting that together. And finally, we'd be remiss if we didn't say thank you to Amanda Crawford, who's our office manager, Joe's assistant, my assistant and a lady that helps everybody out here at Matador. Amanda, wherever you are this morning, thank you for all that you do and all the contributions you make to Matador.
And with that, Joe, Matt and I are through and I'll turn the meeting back to you.
Thank you, David. You stole my thunder on Santa. I warned you, this is a very competitive staff. It works very well together. But you better be quick or you might be.
But I just echo what you said about Amanda and the whole group up here at Matador. It's an exceptional group. Everybody works well together and Amanda is a big part of that hub of that wheel of everybody working and getting things done. And so we appreciate her and the other support staff that we have all around the office. I want to I'm like you, I want to be sure to pass out to credit because we certainly don't do this alone.
It's a team effort and I want to thank Jim Basic and Mitsy Scott for the way they put together this first virtual meeting. We didn't know how it happened, but Jim is a basic deal. He just pulled it off as smooth as he'd be and thank you. And Matt did it both of you all. We wanted to recognize so many people that have contributed the midstream with Matt Spicer, James Meyer, Sam Witten.
I don't want to overlook any of the field because they're the ones that have to put the wrench on it to make it happen. Thanks to Jason Thibodeau and Doug Prejean for as Matt pointed out and pulling together the Rodney Robinson wells because although there are 14,000 barrels of capacity out there, that's less than one day's volumes that you've got to deal with. And so really superb job been real difference makers on that. But the whole staff has come through each time that we've needed and I'm glad you all pointed out the leaders in those various groups because they just don't get enough credit for all the good work that they do. And before I leave this subject, I've got a note and this is the interesting things of being online from David Posner saying, Thank you, Joe and Ray for your comments today.
Much appreciated! I will miss ongoing involvement with the company. As you know, I have tremendous respect and confidence in the company leadership and staff. Wishing you the very best navigating the future challenges. And to you David, we say again, we're going to miss you.
We've enjoyed getting to know you and Helen and serving with you and please let Helen know too that you all are welcome Matt is always out for you here and we want you to stay a part of the Matador family. I now turn to the part of the meeting that you all may be waiting here. Are there any questions? No, sir. That's it.
Then now you get to hear what you've probably been waiting for. We've probably maybe coming to an end. Although it is what Sheryl hasn't said, we could stay here a couple more hours, but we invite all of you in any time you're in Dallas area, come by and have a cup of coffee with us. This is your company too and we want to be a little bit different from the others and make sure that you feel that it's your company and your stockholding matters to us. If we have overlooked Matt, David, anybody give us a chance next year because we really appreciate all that you all do to make this company work.
As you see as we've grown from the day we went public, we had about 30 people and today we have 250, 270 in that magnitude and it takes a lot more teamwork. But thank you to the other Vice Presidents and the other staffers for their for your excellent work, dedication, professionalism and integrity. You're the backbone of this company. We always know that and we appreciate your efforts to get better every day. And with that, I can say this completes today's meeting.
And at this time, our Board of Directors will meet in executive session to review the matters voted on today and carry out the business on behalf of the company and shareholders. Thank you again for your time and attention and support this morning and thanks again for being Matador shareholders and part of the Matador family. Please be safe and take care. The 2020 Resources Annual Meeting of Shareholders is now concluded, and we hope to see you again next year in person. Thanks.