Good morning, everyone. Welcome to the 2019 Annual Meeting of Shareholders of Matador Resources Company. It is now called to order. I'm Joe Foran, founder, Chairman of the Board of Directors, and Chief Executive Officer. I would like to welcome all the shareholders, guests, employees, and friends, and fellow directors to attendance today. I would also like to welcome those listening in via the live webcast. As they say on some of the airplanes, we know you have a choice, but we appreciate you picking Matador this morning and tuning in or being here in attendance for this meeting. It's an important meeting. We have a lot to share with you, a lot of good news, and want to answer your questions. What's happening in the market? In very short summary is Matador is performing very well. 2018 was the best year in company history.
2019 looks shaping up even better. 2020 and 2021, each of those are going to top out. We're hoping to deliver and plan to deliver, not only best year for last year, but best year for this year, the year after, and the year after that. Our future's never looked better operationally, and we're making strides financially. We should have $1 billion in revenue this year, which is fantastic. You'll see the results are very good. In the market, what's occurred is a decline as much as anything. The volatility in the oil price has made investors wary. Up one day, down the other. They need more consistency. The second thing is capital allocation. A few years ago, the average portfolio had an allocation of about 16% in energy.
Today, that's declined down to 5% because of the outlook on commodity prices, the volatility, and of course, some movement to the green industries. As we know from being in this business 40 years, we have these ups and downs and the challenges. Each time that's happened, we've found a way to work through them and turn it to our benefit, and we think this time is no different. We're very excited, and I'll get into the details soon. This being the 75th anniversary of D-Day, I think we should take a few minutes and recognize that day and give our thanks and blessings to those who have served in the military, and would like for everybody that served in the military out there to please stand, or that has been a vet. Let's honor them right now. We'll get into D-Day.
On this, the 75th anniversary, it took 5,000 ships, 12,000 planes, but at the end of the day, the Allies had landed 160,000 men on five different beaches. It wasn't free. 10,000 died, with another 20,000 to 30,000 in casualties. Before the Normandy campaign, the 77 days of the battle for Normandy, another 200,000 Allies would die, and a similar amount for the Germans. From that point on, it was just a matter of time till the Allies had defeated Germany and had restored democracy. Matador has some ties to those brave men. First, Rob Bartley. As I call your name, please stand. Rob Bartley had a grandfather for whom he was named that was a member of the 101st Airborne Division. He was part of the night drop.
He stayed with his unit through Operation Market Garden and the Siege of Bastogne, where he received a Bronze Star and a Purple Heart. He passed away close to 10 years ago, but with four children, 12 grandchildren, and 20 great-grandchildren. Not bad for a paratrooper. The second, J.C. Williamson. J.C., please stand. His great uncle served as an army medic, was injured during the Normandy Beach invasion, and died one month later from his injuries. He was 23 years old. James Fitzwater. James. All right. James' grandfather was a medical officer with the 4th Infantry Division that landed on Utah Beach. Under Theodore Roosevelt Jr., was a recipient of the Silver Star, and this is the same division that J.D. Salinger and Ernest Hemingway were attached to. James' grandfather served honorably all the way to Berlin. The next, Rob Macklin.
Rob's grandfather didn't land on D-Day, but two days later. Again, served faithfully throughout the war, and we have a picture of his service. Then like to recognize Nick McDonough. Nick? Okay. Nick, his mother's first cousin, Raymond Sibel, was killed in action on Omaha Beach on June 6, 1944. His mother's father had two sisters who each lost a son in World War II, one in Europe and one in Guadalcanal in the Pacific theater. We have two of our Matador people not here today. One is a pumper in Louisiana, but his relative landed on Normandy. Barry Whitlake had two uncles that served on Omaha Beach that were from Iowa.
You look at what a national effort it was, and that even 75 years later, we feel like Matador has done its part with both former military people we'd like to hire, but also with our parents and grandfathers. I'd ask everybody to have a moment of silence for those brave men that landed on Normandy and changed the course of history. Let's take one minute. All right. Many thanks to them to ensure that we can enjoy our freedoms today. We will proceed with the formal portion of the meeting. I will act as Chairman, and Craig N. Adams, Executive Vice President and Chief Operating Officer, Land, Legal, Administration, will act as Secretary of the meeting. I will begin the formal part in just a moment.
I do want, as I promised, to give you a little detail as color behind the meeting on our performance as we get into the elections part, and then we'll follow up with Matt and David and our Lead Director, Ray Baribault, with some other detail and try to get this information out and take any questions that you may have. Trying to come along and make sure I can handle this new technology. Matador's been around for 36 years in one form or another, and this is about the 36th time we've done this. Technology's come a long way, and it's exciting to see the progress. We're finding ways to improve this situation with the markets being out of favor, meeting with people one-on-one. Matt and David are just back from New York. We feel those. We're making steady, incremental, but steady progress.
Want you to know that this group of employees and Executive Committee and officers, we're all shareholders ourselves and have a lot tied up in it. This week alone, I bought 10,000 more shares. You can see the ownership we have compared to the peers is substantially more than the peers. We really try to put our money where our mouth is, and we make more as an executive group from getting the stock up than we do from our salary. Very proud of, we're all buyers. We haven't been sellers. I think we've had, Brian Willey, close to 40 employees and directors that have bought stock in this recent period on the open market that with this dipping down like this, and that's the degree of confidence. In the short order, we think it's about half price.
Thought you might be interested in seeing the ownership among the five senior officers. The next slide depicts the growth that we've had since the day we went public. On the day we went public, Matador had about 24 million barrels of oil or gas equivalent. Today, we have six years later, we have over 200 million barrels of oil or gas equivalent. In addition, we have a midstream business that is worth probably $1 billion. Show you what happened, which is net to Matador about $500 million or about $5 a share. Every shareholder of Matador has standing behind it a $500 million net value in the midstream, one barrel of oil, if you price it at $50, and 5 Mcf of gas which is, call it what you want, $1 or $2.
Altogether take off $10 for the debt, and you still have $40-$50 in net value to each share of Matador that you have. You have great assets, you have great rock, you have, in my opinion, great people at all levels of Matador, directors, employees, all the staff you saw out there having coffee with you, chance to visit with them and how committed they are and just how proud we are of them, and they're just doing a better and better job every day while we feel so good about our future. You got the assets, you got the rock, you got the people, you got the finances. We have available on our line of credit, we parked through our line of credit, $700 million-$800 million. We're cash flowing. We will have $500 million or more in EBITDA and in cash flow this year.
We get done what we need to get done, and we're continuing to make better and better wells. Let me give you specific details on the 2018 year. First thing, we had record oil and natural gas production, up 34% from 2017. Next, we had record oil and natural gas reserves, up 41% from 2017. This daily production and the reserves have doubled over the last two years. We've gone from 100 million barrels to 200 million barrels in just two years. We have had record oil and gas revenues up 51% from 2017. We've had record adjusted EBITDA up 65% from 2017. We have record leased and mineral acres in the Delaware Basin up 16%, and we have record earnings per share under GAAP basis double from 2017. These earnings per share in 2018 alone were $2.41 of real earnings.
To give you an idea for the year to date, Matador has been the number 1 or 2 performer in our peer group that's selected by the board. These are very strong companies. We want to compete against the best. To give you an idea, I won't name them, but the two closest to us in performance, and as I said, we've been 1 or 2 year to date in these first six months. The third place had $0.48 earnings per share over the trailing 12 months. The one we've been exchanging first and second place with had $0.91, but we've had $1.71. Clearly earning more, I feel like achieving more. We just got to keep getting the word out to our friends and neighbors.
That's how Matador started, but also for our groups to meet with the institutions and show them that while macro is down, that doesn't mean that a company like ours can't succeed and continue to progress as we're doing and meet the challenges that we're positioning ourselves so that you know oil and gas goes up and down like any other commodity or cattle or wheat or anything else. As it comes back, I think we're just really well-positioned and very excited about the depth of the staff that we're building. Now, during that time, that was the last two years. Let's take a little longer look and say go back to the time we went public back in February of 2012.
Even though a year ago our share price is up in the 30s and has declined as a result of the industry falling out of favor, we're still in the positive ground from when we went public. The other companies that went public when we did are basically out of business, and we're doing good. We could do a lot better, and we're sure not satisfied. We still think we built a base from which to continue our growth. Our oil production is up 83 times. The day we went public, we were making 414 barrels a day, and today we're making over 34,000 barrels a day. Great progress, great work by the teams. Proved reserves, as I mentioned, has climbed from 27 million to over 200. The Delaware acreage has grown, which is the best basin in the country.
People say, "What about Chevron coming in or Exxon?" That says two things. It's a bullish statement on the price of oil, and it's a bullish statement that the Delaware is the best basin in the country. Our acreage there has grown from 7,500 acres to 133,000 acres and to over 2,500 locations. The midstream business has grown from zero to a value over $1 billion. Not bad for this staff. The directors. We acknowledge that we could not have done this without long-term shareholders like you and others that have invested in us. We don't have many hedge funds. It's long-term people like you in this room and long-term, long-only shareholders across the country with institutions.
We thank you very much, because we know you have choices, we appreciate you sticking with us, we feel the best is yet to come. We accomplished that. At the time we went public, oil was almost $100 a barrel, and today it's declined by nearly half, 46%. When we turn out the numbers last year, it kind of half price. It's kind of been a half price on our shares right now. We're going to make money this year. We're going to add reserves. We've guided to about 18% growth or more, and we're drilling better wells consistently for less money. In 2018, 10% of our wells were the longer laterals, which are a little more capital efficient. This year it'll be 30%, and next year it'll be 80%. Really good things looking forward to there.
Higher net revenues, that's why we are so confident that this is going to be a real good year. I'll be up here next year saying it's our best year, I'll be doing that for the next three years, I hope. This is what I was talking about, of the decline. Up here, 2007, 2008 was the peak. Oil was as high as $141 a barrel, as it's declined, interest in our sector has declined. There's capital investment into companies has slowed to a trickle, it didn't stop in us. We're continuing to build a really solid company and are very pleased with where we are. Continuing on, I've showed you this, I'll be mailing this out in our next shareholders letter. Behind it still, you've got a great midstream business that's getting better.
Three-pipe system, we built that from scratch, it will soon be self-sustaining in cash flow. I think that's a good start. Keep that in mind as we move into the part of our business of what a great job I feel the directors and staff, the executive committee have all done and just ask you give them one more round of applause. Give them a little love. They've been up in New York for the last couple of days. We have great shareholders in New York. That's really the next area after Texas, where we've got our most shareholders, they've been great to work with, great ideas, and we enjoy getting with them and discussing and figuring out ways to try to have increased value. All right.
I'd like to begin, as we're now into the more formal part, the members of the board of directors in attendance today and begin with Gaines Baty. Will you please stand and turn and look at the audience so they get a This is not the post office where we're going to put Bill, but stay standing. Craig Burkert. Bill Byerley. All right. Julie Rogers Forrester. All right. Tim Parker. He just knocked David Posner off the table, so his name tag. Please stand, David. All right. [Ken Stewart]. Two former directors who still play a big part in Matador. Last year, we were showing you pictures of Steve [Anemas], who was on the road to recovery. Look at him now. Steve.
George Yates, who was kind of my hero growing up in the oil business. The way he did things, and we're just delighted to have the Yates family involved with us, and particularly George. They've really done their work. I'd like to recognize the special advisors. I've got Scott King and Rick Fenlaw. Rick from Amarillo. Scott, who is a co-founder of Matador, and been a central part of our group ever since then. Do I have another?
Yeah.
Well, I'm getting to my lead director. I'm not going to forget. Right. Ray, I was going to give you a little more of a spotlight, but since he's standing, why don't I recognize Ray, who's done a terrific job, reservoir engineer, on our board, leading our board. This isn't easy. There are a lot of strong opinions on this board, and it's not the easiest job to guide and direct them. Is it, Ray?
We do a good job of it.
They've performed terrific. Thank you all for being here and wanting to see him. Where's Wade? Wade, follow directions and get up here. All right. Now I'd like to thank the shareholders who have served on the shareholder advisory committee for board nominations, with directors Julie Foster and Ken Steury, along with special board advisors Scott King and Jim Rolfe. They are Barry Banker, Joe Coleman, Kevin Grevey , Bob Pickard, and George Yates again. We keep them busy, and we appreciate their service in helping make sure that we get the best directors that are diverse and each can contribute in their specific areas. Now I'd like to introduce the senior officers of Matador present today. Matt Hairford, president. David Lancaster, Executive Vice President and Chief Financial Officer. Craig Adams, EVP and Chief Operating Officer, Land, Legal, and Administration.
Billy Goodwin, Executive Vice President and Chief Operating Officer, Drilling, Completions, and Production. Billy, turn. Let them get a good look at you in case they have questions. Keep looking that way. Van Singleton over here. Brad Robinson. Gregg Krug. Bryan Erman. Rob Macalik. Matt Spicer. Brian Willey. Let's give them a big round. We have a number of other VPs who contribute significantly to our work, and I'd like to recognize all those VPs. Please stand at this time. I know you're scattered across here. Michael Frenzel, Glenn, turn and give them a good look. Cory Lorimer. Tom Elsener. Jim Vacek. Kyle Ellis. All right. Trey Goodwin. Casey Snow. John Filbert. Patrick Walsh. Josh Bussiere. Special recognitions to Kathy Wayne, we are celebrating her 30th year with Matador. All right.
I'd like to introduce, when we get to the part about voting, to Nathan Milton, our new audit partner from KPMG. Take a good look and make sure you want to vote because as we've been saying, we know you got a choice. Then my wife and co-founder, Nancy, who helped with arrangements. As I always say, Nancy, I've been married close to 40 years, which means one of us is easy to get along with. Amanda Crawford and Mac Schmitz were instrumental. Ava. I'd like to recognize Ava and Allison Ollinger for also their help in set up, and Mitzi. Okay. All these people, it takes a team to get all this done, and I want to thank all, everybody for these times. I'd also like to make one administrative comment.
If any of you are in attendance today or listening in via the webcast and not receiving correspondence from us in the mail, but would like to be included in such mailings, please speak with Amanda Crawford after the meeting or email investors@matadorresources.com. Note that our press releases and investor presentations are also available on our website, www.matadorresources.com. If you've not signed up for investor alerts provided via our website and would like to do so, please speak with Mac Schmitz after the meeting or again, email investors@matadorresources.com. This meeting is being held today pursuant to the notice that we mailed to each shareholder of record as of April 12, 2019. The secretary has provided a complete list of shareholders of the company entitled to vote at this meeting, alphabetically arranged and certified as of the close of business April 12, 2019, which is the record date for this meeting.
This list will be kept open during the entire meeting, subject to inspection of any shareholder who may be present. Further, the secretary has provided notice, proxy statement and proxy, and an affidavit that such notice, proxy statement and proxy, together with the 2018 annual report of the company, were mailed to shareholders of record as of April 12. These documents will be filed with the minutes of the meeting. At this time, we need to vote for an inspector of the elections. Kyle Ellis, please stand. We've appointed, and this is his eighth consecutive time as being appointed and elected as the inspector of elections.
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 the proxies and ballots, count all votes and ballots, and certify and declare his determination of the number of shares of common stock represented at this meeting in his count of all votes and ballots. All holders of record of common stock at the close of business on April 12 are entitled to vote at this meeting, either in person or by proxy. Kyle, please present the attendance report.
Thank you, Joe.
Thank you.
As Inspector of Election. Sure. Yes, sir. I report that they are present at this meeting in person or by proxy, the holders of approximately 110,150,000 shares of common stock of the company out of a total of 116,392,034 shares of common stock outstanding entitled to vote as of the record date, April 12, 2019. Thus, the holders of approximately 95% 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 your report, the report of the Inspector of the Election, I declare that a quorum is present for the purposes of conducting business at this meeting, and the meeting is legally convened and ready to transact business. A certified report of the Inspector of Election will be attached as an exhibit to the minutes of this meeting. As stated in the notice, four matters will be considered and acted upon. To expedite the actions, all matters of business, as reflected in the notice, will be presented first, then a ballot will be taken afterwards for voting on each matter. The first order of business is the election of three directors. Our directors serve staggered three-year terms and are grouped as Class One, Class Two, and Class Three. The Class Two board nominees are Gaines Baty. If Gaines, you'll please stand.
Craig Burkert, Matt Clifton, who's not here today due to hip surgery. The directors continuing in office and not up for election at today's meeting are Class Three directors and the Class One. More information with respect to each class and terms thereof, and the qualifications of each nominee are included in the proxy statement. The board of directors has recommended that you vote for all three of these nominees. The second order of business is the approval of the company's 2019 long-term incentive plan as described in the proxy statement. The board of directors has recommended that you vote for approval of this plan. The third order of business is a non-binding advisory vote to approve the 2018 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 2018 compensation of our named executive officers. The fourth order is the vote on the ratification of the appointment of KPMG LLP as the company's independent registered public accounting firm for the year ending December 31, 2019. Further information about the services provided by KPMG is set forth in the proxy statement. The board of directors has recommended you vote for the approval of the ratification of KPMG as the company's independent registered public accounting firm for the year ending December 31, 2019. We will now distribute ballots to any shareholder present who wishes to vote in person today. To avoid confusion in counting votes, ballots should be cast at this time only if you have not previously given a proxy, if you have revoked a proxy previously, or if you're now revoking a proxy.
If your stock is held in a brokerage account, in order to vote at this time, you must first provide us with a legal proxy that would've been given to you by your broker, granting you the right to vote that stock. If under these circumstances you now desire a ballot, please raise your hand and we will provide you with one. Seeing none, we'll proceed with the vote through the proxies.
Thank you, Bill. 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 Election, I report that the 3 Class II nominees, Gaines Baty, Craig Burkert, and Matt Clifton, each received a majority of the votes cast by the shareholders at this meeting. The second motion approving the company's 2019 long-term incentive plan has received a favorable vote of a majority of the shares present in person or represented by proxy at this meeting and entitled to vote on this matter. The third motion regarding the non-binding resolution approving the 2018 compensation of our named executive officers has received a favorable vote of a majority of the shares present in person or represented by proxy at this meeting and entitled to vote on this matter.
The fourth motion ratifying the appointment of KPMG LLP as the company's independent registered public accounting firm for the year ending December 31st, 2019, has received a favorable vote of a majority of the shares present in person or represented by proxy at this meeting and entitled to vote on this matter. Each of the director nominees and proposals voted upon today, as described in the proxy statement, has, consistent with the recommendations of the board, 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-K that will be filed with the Securities and Exchange Commission.
Thank you, Kyle. This completes the scheduled items of business to be conducted at this meeting. We will follow it up with reports from Matt David and our Lead Director, Ray Baribault. At this time, I will now entertain a motion that the formal portion of this meeting be adjourned. So moved. Second? All right. Motion's been made and seconded. Any discussion? Hearing none, we'll move to immediate vote. All those in favor signify by saying aye.
Aye.
Opposed, same sign. That part of the meeting is complete. We'll have an informal and sharing of further information about the results of 2018 and a little bit of the state of the union of your company, Matador Resources Company. At this point, I've said most of what I'd planned to say. Mine's very short, or I'm trying to make it short. To share with you, there's three main ways that we make money and add value to Matador. The first is on the acreage, and we've had a brick-by-brick approach beginning with that 7,500 acres. Van and our land group have done a fantastic job of buying acreage for less than what it's going for out there in the basin.
Most of the acreage in the basin now is selling between $20,000 and $40,000 an acre, and there are cases where they paid even more than that. Our total weighted average cost is around $11,000. Tremendous amount of extra value created there. It's increasingly held by production and has given us a lot of options. They have also continued to work with others and help change, so we grow from one-mile laterals horizontally to two miles, and they've done great work in helping form those units because each time they form one of those units, value is added. It's been really literally hundreds of millions of dollars that they've added, guided by the geological group and the engineers, and the teams have really worked. We tell people, work at Matador is not for everybody.
You got to be a team player. If you don't want to work with others, this isn't the right place because we work with teams. We have team rooms. They do a great job. If you don't want to learn about some of the other disciplines, if you're a geologist, we expect you to learn some engineering. If you're land, we expect you to learn some legal as well as some geology. They just do a great job. They're all learning from each other. We invite all of you to come see us and call us. We'll be happy to answer any questions that you may have.
The second way we make money is you can see that this is something else pleases us every time we've seen this, and you've seen similar type maps, but it just shows you all around our acreage, wherever we're drilling, we're making really good wells. Several thousand barrels a day, and wells are going to make a half million to 1 million barrels, and it's very exciting to see the wells continue to get better and the drillers finding ways to reduce time on wells. Billy can tell you, his group, they've reduced time on wells from 50 days to 10 days. It's just incredible, remarkable, and you save about $100,000 per day each time you cut a day from it. They really work together and find ways to do it and get out there in the field. Traditional E&P. The third way is with the midstream.
On the midstream, that came about while we were on our IPO, that we kept getting questions about takeaway capacity and how we're getting our gas and oil to market, and what are we doing with water. I decided we needed to develop a midstream business, and we got Gregg Krug to come back and help. Then we brought Matt Spicer in and Bryan Willey. These are guys that have really built a business from scratch that's become one of the primary midstream businesses out there in the Delaware, and particularly in Eddy County. When you look at the timeline, this is a pretty bold statement, but we think if we can continue to do what we're doing at the pace we're doing, that we will increase the value of this business from $1 billion to $2 billion over the next two years.
That would represent about $10 a share in value to go on top of what you're already getting from over 200 million barrels and over 135,000 acres. I think that looks pretty good, and would say, you know. Having said that, we've got to try to work on market sentiment as to the way people view us and get with people and say, we're not painted with the same brush as these other companies that have destroyed capital because the other companies that went public the same time we did are now out of business. Over half the companies that were public, not going public, but were already public, are gone. We've got to work at the micro level to change people's perception and say, we cut across the grain as we have for 36 years.
The other thing that we have to do is keep that price stabilized. We'll work through that. We've got our production hedged. We're protecting ourselves as those things that we can control, we have done. With that, let me sit down, turn it over to my good friend and colleague and the man about the firm.
That's me.
Yes, that's you. Could be any number of people, but
I may have been a bit bold in just standing up right there. Okay. David and I are going to do the Lewis and Clark thing here like we usually do, so we'll go back and forth. Before we get started, just a couple of things. I want to thank everybody for being here, shareholder, the staff, and by the way, the staff, we're all shareholders too, so thanks for joining us. I wanted to introduce my family, my wife, Cricket, my oldest daughter, Sasha, youngest daughter, Sadie, and her fiancé, Jeremy. That's hard for me to say, fiancé. Anyway, yeah.
Diesel.
Sasha's son, Diesel, here. The reason I want to introduce them is our Matador family is very important to us. We work hard. The group that's in this office, the group that's out in the field in Artesia, the ones that are across the street over there at our offices now, we work hard. We work together a lot. That's our Matador family. Our families at home, we couldn't do it without the support of them. Those are the family members that are here. Thank you for the staff. When you go home tonight, tell them that Joe, David, I, the Board, the Executive Committee, all are very thankful for their help. Thank you. We'll dive off into this deck here in just a second, before we do, I want to underscore what Joe has said about the three ways we create value.
I mean, we are in the oil and gas business. We are in the E&P side of that oil and gas business, so we drill oil and gas wells, we produce hydrocarbons from those wells, and we sell them. That's kind of the blocking and tackling for us. This year is really exciting for us. We're going to talk about it here in a minute, but it's a rate of change story for us. It's going to longer laterals. It's becoming more and more capital efficient. We're working on that. Joe hit on the land side. That's incredibly important to us. Particularly when we start going forward looking at these longer laterals, it's not an easy thing to do.
I mean, we'll talk about how that all gets there, but it's very important that we're making trades, that we're blocking up acreage that we've got, that we're adding working interest, and that we're doing it in a very cost-effective way. Then third is the midstream. I think what's most exciting about that is the way that we've set this up, where we're going to be able to build both these business lines together, and they kind of feed off of one another. With that, we'll just take off here. Just a quick trip around the horn. North Louisiana, East Texas, those are our Haynesville assets. We got about 23,000 net acres there. We call it our gas bank. It's all held by production. It's 100% gas. We've got probably, 6% or 7% of our total BOE production comes out of this area.
It's important to us. We don't have any planned operated activity there for the year. Moving down into the Eagle Ford, whereas the Haynesville was 0% gas, our Eagle Ford is about 80% gas. We just finished up a nine-well program earlier in the year. Don't have any additional planned activity, operated activity for 2019. This, we consider our oil bank. This is where we started to get oil after the IPO, and it's still an important asset to us for a number of reasons. Where we're primarily focused and have been for the last few years is the Delaware Basin. We've got 133,000 nets, 220,000 gross acres in the basin. We're operating six rigs in the area. We're producing about 90% of the production comes out of the area, about 90% of the CapEx goes into that area.
That's what we're primarily going to be talking about today. David?
You got the reserves, right?
Yeah. Okay. Joe said it here, on the reserves, the zero message here is we've doubled reserves over the last two years. If you look back to 2016, the end of the year, we were at $106 million BOE. 2018, we more than doubled that, got to $215 million barrels of oil equivalent. The oil growth has been very like that, $57 million in 2016, $123 million barrels of oil reserves in 2018. If you look at the PV-10, we were about $600 million two years ago. We're at $2.6 billion here. As I mentioned, most of the activity has been in the Delaware. You can see on the reserve basis, we've gone from $80 million BOE to almost $200 million BOE just in the Delaware alone.
Fantastic reserve growth, we'll talk about profitable growth at a measured pace, this is indicative of that as well. Now, David.
Very good. Good morning, everybody. It's good to see everybody again. I guess given Matt's introduction, in an effort to preserve domestic tranquility, let me also introduce my wife, Sue, who is fondly known as Miss Sue to just about everybody that knows her. I'm really glad you're here today. Thank you for coming, Sue. I know we've got some other spouses of the executive team here. I see Katie sitting here, Katie Singleton next to Van. Of course, my good friend, Debbie Robinson, Brad Robinson's wife. I had a hug with Serita earlier this morning, Serita Goodwin. Where are you, Serita? Good to have you. Is there anybody I'm missing? Anybody else in the spouse category that I'm overlooking? All right. Well, say again? Oh, yes, Stephanie's here. Yes, that's right. Stephanie Stetson here with Glenn this morning.
Anyway, we're very glad to have all of you. Thank you for coming. Just wanted to say that 2019, Joe's talked about all the records in 2018. 2019 is also off to a very strong start for Matador. Our average daily oil production was up 3% in the first quarter. Our gas production was actually up 15%. Overall, our total production was up about 8% just from the fourth quarter alone. What I think is particularly striking is what we show down here in the bottom left-hand corner, is that look how our Delaware production has grown. Four years ago, when we were all gathered together for this annual meeting, we had a production in the Delaware Basin that was at 3,500 BOE per day, and we were all pretty excited about that and where the future might take us.
Last quarter, we got above 50,000 BOE a day in the Delaware Basin for the first time. That was a big milestone for us, and there are so many people in this room that were pushing on that rock and were responsible for that. Matador staff, look what you did. That's pretty cool. We're very proud of the team leads, of all the team members that are here or listening to us back at the office. Thank you for all your contributions. On the cash flow side, adjusted EBITDA is a proxy for that. Even though our cash flow was down a little bit in the first quarter relative to the fourth quarter, that was simply due to the fact that oil prices had declined a little bit from the fourth quarter to the first quarter.
Even so, our EBITDA in the first quarter exceeded our expectations. The year is off to a very strong start. Joe showed this map a minute ago, I want to spend a little bit more time on it because I think there's a number of things that I'd like to make you aware of. First of all, this does show you our acreage position in the Delaware Basin, we're currently running six drilling rigs there. You can see them. You've got one down here in the Wolfcamp and Jackson Trust area that Glenn Stetson is the team lead for. You've got four that are going back between Rustler Breaks and Antelope Ridge, where Tom Elsener runs the team.
You've got one up here in the northern part of our acreage, which is a lot of the acreage that we did in our merger with George Yates several years ago that we call Arrowhead and Ranger. That's the team that Trey Goodwin is in charge of. This year, we're going to run these six rigs throughout the Delaware Basin. As Joe said, we've just been making some really nice wells all across these acreage positions. The Wolfcamp team in the first quarter brought in a couple of really strong wells called the Howard Posners that averaged about 2,100 BOE per day. The Rustler Breaks team brought in a well in the Wolfcamp B called the David Edelstein, which came in at about 3,400 BOE a day, and more significantly, was the second two-mile lateral that Matador had drilled.
You're going to hear more about longer laterals as we go through the morning. Over here in Antelope Ridge, the team continues to drill some excellent wells. These wells that are the Charles Lings, which I know happens to be the man that gave Joe his first office and his start, more or less, his little windowless office, as he'll tell you. I know it's Sam Pryor's granddad, Sam, are you here today? Yeah. Very nice. These wells, I hope, lived up to Charles' namesake, and I hope he's looking down on us today happy about how those wells turned out. I figure he is.
These wells all came in at about 3,000 BOE a day, and this whole area of Antelope Ridge has really emerged in the last year as one of great significance for us here at Matador. The wells here at Ranger are also named after a special lady. She's the one that actually gave us Matt, because it's his mother, Verna Rae. What's particularly special about these wells, beyond that they're the Miss Verna Rae wells, is the fact that one of them, this one right here, was completed in the Wolfcamp, the A-XY upper part of the Wolfcamp, and came in about 1,600 BOE a day and a little over 90% oil cut.
I think you know from what you read about us and previous meetings that we've had, that one thing we've been trying to do is continue to push the activity in the Wolfcamp into the northern part of our acreage. We have lots of good Second and third Bone Spring opportunities up here, but we also think that the Wolfcamp is going to work. This is a very good data point. Today, in blue, we're announcing for the first time the results of our Stebbins well in the Arrowhead area, which I feed at just over 2,000 BOE per day. That well has been on production for about 8 months. It's made about 250,000 BOE. We're very excited about that result.
This area right here where the little blue dot is what we call Stebbins, and you're going to hear us talk a lot about Stebbins over the next year because we just recently moved a rig back into that area, and Trey and his team are going to be drilling there for the foreseeable future. Lots of one and a half and two-mile laterals, we're very excited about the program that we have at Stebbins. In addition, on this map, I've circled some particular blocks of acreage in blue. You can see there's other blue on this map. What that represents is last September, we participated in a Bureau of Land Management lease sale in New Mexico, and we bought about 8,400 gross and net acres from the federal government. We're currently in the process of getting permits to drill on that acreage.
We're very excited about this acreage, the two blocks that you see here in blue, up here in the western part of Antelope Ridge and down here along the state line, we think, frankly, are among some of the best acreage in the Delaware Basin. I can guarantee you, our teams are very excited about the opportunity to begin to drill wells on this acreage. They set up very well for longer laterals, we're going to be drilling two-mile laterals up here and down here, except for on the western part of this track, we think we'll actually be drilling two and a half-mile laterals when we get started.
If everything goes per plan, we'll start drilling in the western part of Antelope Ridge, oh, excuse me, the western part of Antelope Ridge here in probably the fall, you'll hear us talk about those wells as the Rodney Robinson wells. Right at the beginning of next year, we hope to have our permits approved so that we can start drilling this acreage at the state line. Not only will we be drilling longer laterals, but we think that there's as many as maybe seven to nine intervals that we can drill wells in. This acreage is very important to us. We're looking forward to getting started with it. It's going to be some of the best wells in our portfolio, and as Matt's going to show you here in a minute, it just dovetails very nicely with the midstream company that we're building.
Joe mentioned the fact that we have continued to grow our inventory of wells in the Delaware Basin as a result of the acreage and all that Van and his team have added over the last couple of years, and the good work by the asset teams. We now estimate that we probably have about 5,400 gross locations and about 2,500 net locations still remaining to drill on our inventory. At the present pace, that's going to be 20, 25 years probably worth of drilling inventory. By the time we get to some of those, I'm sure someone else will be here talking to you about how those wells turned out. Anyway, all that just to say that we've got a lot of runway ahead of us and are very proud of the inventory that we built.
In addition, this year, and I'll talk about this a little bit more, but about 90% of the company's capital expenditures are going to be spent in the Delaware Basin. All these locations, I should have mentioned on the previous slide, that we've identified are spaced at approximately 160 acres. If you think of a 640-acre section, that means we've got four per section. If you go back and look at this previous slide, you can see that indeed, this is a square mile section, and we typically have four per section. The only time we don't is when we have very thick intervals, and this cube doesn't really show you the relative thickness.
When we have relatively thick intervals like the Avalon or the Wolfcamp B, where we identified more than one target, we will sometimes look to space those wells on 80 acres, what we call wine rack spacing, because you can see that that kind of looks like bottles of wine sitting in your wine rack there at home. Anyway, in the industry recently, there have been questions about what's called parent-child relationships. What that means is that if I'm the first well drilled in a section, I'm typically called the parent. If I'm the second or third well that's being drilled somewhere near the parent, I'm called the child well. As you might imagine, just like in real life, children can have a tendency to annoy their parents sometimes. That's kind of what happens.
What you've got to do is make sure that you're spacing these wells at the proper distance so that the parents and the children don't really interfere with or annoy each other very much. Sometimes when we're fracking the wells, they still will communicate with each other. What we're hoping is that the long-term performance that each of these wells will have its own drainage area. It's hard to see sometimes when you're close together. Here, stand up a minute, Ray. It's hard to see when you're close together because Ray and I'll do a little demo here. If I'm the parent and Ray's the child, you see when we've got our wells drilled here, we don't really bother each other at all.
Even early on in time, we're not really messing with each other. Sometimes as we get a little longer in our life, man, we're starting to really jack with each other, okay? That's what we're trying to avoid. When you hear about parent and child relationships, that's what we're talking about, all right? We're trying to drill our wells on a proper spacing so that from a long-term recovery standpoint, they will interfere with each other to the less extent possible. I think we've done a good job at that. We've been pretty conservative. Our teams have been very conservative in spacing these wells. Most all of our spacing assumptions are 160 acres, which has been a little bit conservative relative to some of our peers, but I think that it's served us well.
We have done spacing tests, and when I say we, that's our staff, that's our reservoir engineers, and basically have concluded that well spacing less than 100 acres is not very efficient and can really tend to cause problems with well performance. That's why we've spaced our wells at larger distances. We think that these wider spacings have resulted in better production from our wells and more consistent reserve estimates and EUR estimates. In fact, earlier this year, you may have seen, 1st of January, 2nd of January actually, The Wall Street Journal actually went back and did a study of public companies over the last three years and looked at were their forecasts holding up to what they were including in their public filings.
What they concluded was what you see there in blue, that Matador's average well in the Permian Delaware Basin is on track to outperform its forecasts in all three years the company provided them, according to the Journal's analysis. We actually were very proud to be recognized as a company who was giving folks the straight scoop and that our estimates of reserves and recovery were seen to be very credible by this independent analysis. For that, I want to thank all of our reservoir engineers, and particularly Brad Robinson and his team on the reserve side. I think they've all done a very good job. With that, I'll pivot back to Matt.
We're talking about capital efficiency. We're talking about a step change, a rate change for us as a company and going into drilling longer laterals. That's what this slide is about. Before we jump off into this slide, I think one thing that's important is how Glenn and Tom and Trey and Chris Villarreal on the non-op side have done a really nice job on getting in and drilling these initial wells. The first wells you drill on these blocks really do two very important things. Number one, you're able to go in and delineate zones. You're able to go in and figure out the Second Bone Spring's going to work here, the Wolfcamp X is going to work here, just figure all those things out. You're also able to hold that acreage by production.
What Van and Craig and Brian and Jonathan Filbert and the entire land and legal team has done a very nice job of doing is once we drill those first wells, they've gone back in and made trades with other operators. If you've got two sections that you're going to drill a two-mile lateral in, there are joint operating agreements typically existing in both sections, and they're not the same. That team has done a fantastic job of going in and dissolving the old joint operating agreements, creating new joint operating agreements to where we can come back and drill one and a half and two-mile laterals. That's a fantastic job there. The way it works, once you get that done, say for those two sections that I was talking about, subsequent wells are easy. They operate on the same joint operating agreement.
You just make a proposal, you come in, and you drill the wells. The thing that happens when we do make these proposals, sometimes we'll have other operators that will say, "Yeah, we want to participate." Sometimes we have operators that say, "Yeah, I'd rather sell you my working interest," which we can get that done, and those teams have done a very nice job getting that done at a very affordable price. Or they may just say, "Look, I've got some acreage on this block. You've got some acreage on this block that we operate. Let's just swap." That's kind of set us up. That's why you see a little bit of a hockey stick, we'll just jump into this graph. What you see here in the blue bars, this is the average lateral length for the year.
In 2018, we averaged 4,700 feet, and that's what you can actually complete in a one-mile lateral. That's your basic one-mile lateral. 2019, we're going to bump that up to 5,800, and then it skyrockets all the way up to 8,700 for 2020. If you're looking at these other lines on the chart, we're going from, I think Joe said this in his presentation, 9% last year, 30% this year. We're going all the way up to 85% of the wells that we will drill in 2020 will be a mile and a half or two-mile laterals. If you look at this darker bar, 74% of those are going to be greater than two miles. That's getting very efficient, and we'll talk about how that looks from a cost standpoint here in just a minute.
The other thing we're moving more and more towards are these triple and quadruple batches. We're drilling three or four wells on the same pad. We're using batch drilling, which I'm an operations guy, I love this stuff. I could talk for hours about batch drilling and how that works, but it's a very cost-effective way to do that. You go in and drill three or four wells. You'll drill a whole section at a time walking the rig back and forth, and it saves a ton of money. Let's talk about that part of it. If you look at this back here, this is relative to this scale over here. What this is the dollars per foot drilled. In 2018, we averaged about $1,500 per foot that we would drill.
By initiating these capital efficiencies, we're going to drive that down to just a little north over $1,100. 14% this year, 12% next year. That's a 26% decrease in price just related to capital efficiencies for drilling longer laterals. The other thing that happens, and I think this is interesting, 2018, we drilled 381,000 feet of lateral. This year, we're going to drill another 62,000 feet of lateral. Next year, we're going to add roughly another nine. When you get from 2018 to 2020, it's about 150,000 foot of additional lateral footage you drill. If you divide that by a two-mile lateral, we're actually drilling 14 additional wells with the same number of rigs. Hats off to the team for doing this. This is Billy and Josh and Patrick and the drilling team and Chris Calvert and Cliff Humphreys on the completions.
When they get done with all this, with Billy's leadership, John Romano and Kristin Wells, they come in and run these production facilities. They've got these wells for 20 or 30 years after the drillers and the completion guys have them. I know listening on the webcast, out in the field, we got a lot of these guys. Just wanted to shout out to those guys too for thanks with their help. Joe showed this slide, and I wanted to show it to you because it's such a great slide. I'll go into a little more detail here about the history of the midstream business, where we are now, where we're going, what San Mateo 2 looks like. If you look at this graph, this is back in 2015. We really didn't have much of a midstream business at all.
We had some gathering lines in the Eagle Ford. We were actually stripping CO2 out of a little gas in the Haynesville, but not a whole lot. When we started drilling down at Wolf, we didn't have a good economic option for us to get gas processed by third-party vendors. Matt Spicer, Gregg Krug, they came to us and said, "We know what to do. We'll just build our own plant." We did. We built a small one, but Gregg and Matt had the vision to build it where it was scalable, where someone could come in and add to it. As we're constructing this, we actually had 23 different inbound inquiries about buying this plant. We spent about $32 million building it. EnLink came along and paid us $143 million for that. High five, right? That's a good deal.
We were very happy with that deal. Gregg and Matt come back in, and they're like, "Yeah, but we still want to build a midstream business." We took some of that money, we went up to Rustler Breaks, and we started building a 60 million a day plant. That was, again, going to be about half of Matador's volumes. Looked like the right size. They did the same thing again. They established a large footprint. They prepared for expansion. We did the deal with San Mateo. Or with 5.4 San Mateo. That was in February of 2017, and that placed a valuation on the midstream business of about $500 million. They paid us about $174 in cash, and then there was $75 million in drilling incentives. That kind of gives you a barometer.
We've jumped from really from zero to $500 million here. With San Mateo I, we added another 200 million a day to the plant. We started adding third-party volumes, both water and gas, and now we got to a point where we think this is a billion-dollar business, and we'll talk about how we get there. Just recently, in February of this year, we did San Mateo 2, which was also with our JV partner, Five Point. I kind of look at this as zero to 60 in two seconds flat. Joe showed the slide, do we call it the we do what we say we're going to do slide? This is for the same thing for midstream. Although we don't go back to the time of the IPO, we go back two years to Q1 2017. We won't go through all these.
You can read these just as easy as I can. If you just look at the water system, we had about 70,000 barrels a day disposal capacity in Q1 of 2017. Now we're at a quarter of a million barrels, and that continues to grow. That's a 3.6x on that. Dropping down into gas process. We had our 60 million up and running. We're processing about 40 million. Now we're processing about 140 million. 3.4x there again. You get down to where you're looking at the value of the midstream assets. That's what we're going to talk about next. The way we and many others in the industry value these things are on EBITDA. If you look back to 2015 where we didn't have much, we actually generated about $4 million in EBITDA. 2016, we had a great year. We tripled that.
We got to $12 million. We did the deal with San Mateo, really started building these assets out, got to $31 million in 2017. 2018, we doubled that again to $62 million. In this, for the first quarter 2019 annualized, it's $84 million. We think that we're going to have a quarter during the year that we will end up with probably around $25 million per quarter. You multiply that by four to annualize it. The math is easy. That gets you to $100 million in EBITDA. I don't think it's unreasonable that you would use a 10x multiplier there. You take $100 million times 10, that makes this a billion-dollar business. This is primarily San Mateo I, right? We talk about profitable growth at a measured pace. This is profitable, and it's at a pretty rapid pace. It's very good.
San Mateo Two. What I want to do here is just kind of take a minute and talk about what San Mateo One actually is. If you look at Rustler Breaks, you see the green star there. It's a 260 million cubic foot cryogenic gas processing plant. We've got saltwater gathering and disposal. We've got oil gathering. You move down to Wolf. We've got the same thing there, except we don't have the gas processing. If you remember, I mentioned that we sold that plant to EnLink. They're doing the processing, but we're still gathering gas, we're gathering oil, we're gathering saltwater and disposing of that. Those are two really nice business units that are generating, like I said, close to $100 million in EBITDA. What San Mateo Two does, and that's the yellow stars, it greatly expands the footprint of our midstream business.
While the stuff at Rustler Breaks for San Mateo One, the stuff down at Wolf for San Mateo One are great assets, they're kind of what we call a centrally located asset. There are other operators in and around that acreage, and we have brought on third-party volumes. We're about 30% third party right now. But the opportunity set for third-party volumes greatly expands when you build a gas trunk line from Rustler Breaks 20, 25 miles down to State Line. You build the same trunk line 12 or 15 miles up to Greater Stebbins. There's 35 or 40 miles of pipe that you're going to be able to access third-party customers. That's very important to us. Additionally, we're going to build saltwater gathering and disposal. We're going to build oil gathering at State Line. Greater Stebbins area, we're going to do the same thing.
We'll have the three-pipe system in all these areas. It's a great expansion for us. I think just to talk about the deal. When we went to FivePoint to start talking about making a deal for our second JV partnership, there were different ideas that were bounced back and forth. And that's one of the good things about having a friendly relationship with your JV partner. You can actually sit across the table and have a conversation. We wanted something that we felt was structured very capital efficient. And so we worked back and forth and back and forth, and I think we've come to a really good deal. We think to make this San Mateo Two build-out, the initial tranche is going to be about $150 million. FivePoint has agreed to carry us for $50 million of that.
We're going to spend $25 million, they're going to spend $125 million to get started. And we also think that to ultimately build the entire system is probably another $100 million. We'll be heads up there. At the end of the day, we'll pay $75 million. They will pay $175 million. And as David likes to say, we're paying 30% of the CapEx, and we're getting 51% of the business. If you're looking to be capital efficient during the year, I think this is a pretty good way to get going on that. That's how it's structured. And then in regards to how these two business lines work themselves up, I'll put my San Mateo hat on, and maybe I should get Bryan and Matt and Greg to do this.
What I want as a midstream company to build assets that we're talking about here, another $200 million, three-pipe system, both at Stebbins and State Line, you want and need to have a good solid anchor tenant. You need somebody that's got the financial wherewithal, the technical capabilities to drill these type of wells and provide the volumes. That's what you want and need to have. San Mateo has that with Matador. It's a good relationship. The economics to do this build-out like I'm talking about work on just the Matador volumes alone. When you start contemplating adding third-party volumes, the value of this just goes up.
I take my San Mateo hat off, I put my Matador hat on, Five Point Energy has agreed, you can see here, they've agreed to pay us $150 million in performance incentives on operations we have on these two blocks. You're looking at San Mateo, we've got a good operator. Now Matador, which by the way, like David said, these are some of the best wells we're going to drill at State Line and up here at Stebbins as well. They're all a mile and a half, two mile, two and a half mile laterals. These are wells that Matador wants to drill, it's going to drill with or without a midstream business. If we were having to third-party this with somebody else, these wells would be on the top of our list.
Now we're even incentivized more by $150 million in payments that are going to come out over the next five years or so. To me, I think it's a very elegant, very creative way to just walk both sides of the business up at the same time.
Very good. I'll take you quickly through what we're doing this year and the plan, things that you may be hearing about as the year goes on. This shows what our Delaware Basin operated drilling program is going to be for the year. Altogether, we'll probably drill about 73 gross wells and about 55 net wells that'll be turned to sales. We'll have activity on other wells, but those wells will get turned to sales during the year. This was as we provided to the market back in late February. You can see as I talked earlier, one rig down in the Loving County area, probably four rigs bouncing back and forth between Rustler Breaks and Antelope Ridge, then one rig up in the Arrowhead, Ranger, Twin Lakes areas.
Most of the drilling at Ranger is finished for the year, we are going to be drilling mostly at the Stebbins area and Arrowhead for the remainder of the year. You can see there's a few more wells being drilled in Antelope Ridge this well than Rustler Breaks this year. Part of that's just due to the fact that we have a few more lease obligations, a few more leases to get held by production, and we've done more of that over in the Rustler Breaks area over the last several years. We also finished up a program in South Texas, that we started in October of last year. You may remember we put in a seventh rig to work in October.
We finished up the drilling of those wells in February, and we finished up then the completion of those wells and got them all turned to sales in May. That work was done by Chris Villarreal and the South Texas team. Chris, I don't think you've been asked to stand yet, but would you please? Are you here? There you go. There's Chris Villarreal, who runs our non-op team and also the South Texas, along Glenn's kind of mentored him along there, we appreciate that. Most of these wells that we drilled down here were longer laterals. There were eight Eagle Ford wells. There was one Austin Chalk well.
I think we were pleased with the results from these wells, especially some of these Eagle Ford wells that we drilled in the northwest part of LaSalle County, were among the best wells that we have drilled in that area. Also, I think that we're all on the executive team pretty pleased to see how well the operations team did with the costs on these wells. A number of them came in well below what our expectations were. Good work there. With the completion of that, we've got about 94% of that acreage held. Finally, we are still doing a little bit of work in the Haynesville. I just thought I'd point out the fact that we do have a few non-op wells that are going on this year.
A few drilled here by a company called Aethon, a couple of more being drilled on the main block that we did with Chesapeake. This area right down here, for those of you that have been with us a long time, you remember our L.A. Wildlife track that was an operated track where we had drilled, back eight or nine years ago, a very successful Haynesville well that's still producing very well. Problem was that track right there was kind of in the middle of a big marsh, it was hard for us to get any other surface locations in that track. To the south, it was easier to get locations on the surface that could then be drilled up into our acreage position.
Due to the good work of Glenn Stetson and Chris Calvert and others on the team, we made a deal with Chesapeake, and Chesapeake actually is operating, has recently finished drilling and completing those wells. I guess completion's ongoing, but it will not be long until those wells are producing, and we are very excited to see what those wells can do as well. Joe Foran mentioned earlier that when you put all that together, it probably results in about an 18% growth in production year-over-year, and you can see that on these bars. This actually shows you the progression between 2016, 2017, 2018, and 2019. You can see how much our production has grown over the last several years. This year is what we have projected that we would do, and again, this is as we provided in February to the market.
We think we will produce between 12.9 and 13.3 million barrels. So at the midpoint, about 13.1 million. Somewhere between 55 and 57 Bcf of natural gas, so about 56 million at the midpoint. Altogether, that is a little over 22,000 BOE per day. You can see also then down here how our Delaware Basin production will continue to grow year-over-year. What is it going to cost us to do that? As we estimated in February, we think that our anticipated CapEx for the year is somewhere in the range of $695 million-$755 million, or at the midpoint, about $725 million. About $640 million-$680 million of that, or $660 million at the midpoint, 91% of that is to drill and complete wells. About 9% of that is for midstream.
I will point out that of the essentially $65 million at the midpoint that we have estimated this year for midstream expenditures, that represents our part of the total midstream expenditure. This year, that will probably be on the order of $200 million. Again, to Matt Spicer's earlier comments about the capital carry that we got, this year we will spend probably only about a third of the CapEx associated with the build-out of the midstream. As you can see, we had about $60 million that was earmarked for the Eagle Ford Shale and about $16 million-$17 million that was earmarked for our participation in the Haynesville wells. Most of it, of course, 90% of it is being devoted to the Delaware Basin. The other part that I wanted to mention was just the cadence.
Most of the money, as I mentioned, we finished up the Eagle Ford Shale program pretty much in Q1 and Q2, so the capital dollars are a little bit weighted, a little bit skewed toward the first two quarters, and we would expect them to decline per this original estimate over the course of the year. I can tell you that Q1 was very good on the CapEx side. We actually came in about $19 million below the $212 million that we had forecasted for the first quarter. So it was an encouraging start. Some of that was due to timing of events. We had some midstream CapEx that we did not quite finish up with in the first quarter, some projects that did not get started quite on time. So some of that may move into future quarters.
I think what's key is that we could see that we had about $10 million in actual savings on wells in both the Eagle Ford and the Delaware that were drilled and completed that came in under the original estimates that the teams had made. That was very encouraging for us. It's not a secret that we will outspend our cash flows a little bit this year, we'll have a modest cash outflow spend. I can tell you that all of us at Matador are very dedicated to taking the steps to mitigate that outspend. We've reduced the activity. As we said, the seventh rig we dropped in February, didn't bring it back to the Delaware Basin. We've gotten about $15 million in incentives that we receive annually for performance from San Mateo. We've been working to improve our capital efficiency, as Matt mentioned.
The teams have done a good job recently of improving the well costs in a number of ways. There are just all kinds of little things that we're doing to convert what I'd call non-cash assets into cash. In fact, in the past few weeks, the accounting team has completed a couple of very successful vendor audits and a sales tax audit that have resulted in refunds of $2 million to the company. Rob, we thank you for that contribution and to all the accounting staff who worked on that. All this just to say that we're very keen on doing everything we can to match our capital expenditures and our cash flows, and monetization of some of our assets in the Eagle Ford and in the Haynesville is probably another way in which you'll see us do that over the course of the year.
Joe mentioned that we were hedged. This is just to show you that we probably entered the year about 40%-50% hedged. We've added some hedges as oil prices increased, we're about 70% hedged on the oil side for the remainder of the year. We've got some good hedges in place, including some that have floors even as high as $60. Just quickly wanted to give you an update on some of the banking arrangements that we have in place. We have a great bank group that's led by Royal Bank of Canada, we have nine banks in the group, and they've all been very good to us over the years. In October, since we saw you the last time, we actually redid the credit agreement. We've extended the facility size to $1.5 billion, and we extended the maturities out to October of 2023.
This past month, our borrowing base was increased to $900 million. We currently have about $200 million borrowed, that means we still have $700 million in liquidity available under our borrowing base, plenty of liquidity to continue to execute our program. In December, the Bank of Nova Scotia, or Scotiabank, helped us to put together a facility for San Mateo for the first time. We now have a facility in place for about $250 million for the San Mateo business with the ability to expand that up to $400 million. A couple of things I think are important about that. Number one, all the banks that are in our reserve-based credit facility participated in the San Mateo facility, which I think was a strong endorsement of how they felt about the San Mateo business. In addition, this facility is non-recourse to Matador.
The other thing I think it points out is the fact that our bankers see that San Mateo is a business that's fully grown up and that it was capable of supporting its own borrowing facility as was needed. I'd like to acknowledge the work, particularly of the midstream team, but of Michael Frenzel and Brian Willey, who did probably the lion's share of getting this one over the finish line for us, and we appreciate that. We have about a little over $200 million borrowed on that currently. Again, this facility is non-recourse to Matador. Five Point is standing on its own there. The other thing I wanted to mention was since we saw you the last time, we did refinance our bonds. We had about $575 million in bonds outstanding last year. Today, we've got a little over $1 billion in bonds that are outstanding.
We did two bond deals, one in which we refinanced into $750 million of bonds, but were able to reduce the coupon by 1%. We greatly reduced the borrowing rate on those bonds, and I think we were really pleased to do that because we think it reflected the market's view on Matador and its credit quality, and the fact that we priced it in a place where a lot of the better Permian players were pricing at the time. In October, we came back and tacked on $300 million to that deal. Those bonds sold at just over par, and most all of the participants in the original deal participated in this tack-on offering. I can tell you, Matt and I were just in New York yesterday at a high-yield conference and where we met with a number of our bondholders.
I believe our bondholders are very happy with Matador and with the credit quality of the company. I think you can be very confident in the way that the bond market is looking at us. Our bonds have traded well and are still trading right around par. This slide we tend to show you every year, so I thought I would include it again this year. This is just sort of our leverage slide. This is showing more or less our debt to cash flow. This is something that we like to keep in the kind of 2.0 range or below and have historically done so. That's crept a little bit above that point currently. Again, we're very focused on that.
If we do some of these monetizations, if the year goes as we think or a little bit better, I think we'll keep that debt profile in very good shape. We're very comfortable with where it is right now, but it is something that we'll continue to focus on and that we know the board is paying attention to, as well as the investors. I think we're in very good shape where we are today and continue to have reasonable leverage on the business. With that, I'm just going to summarize by kind of summarizing the guidance there, kind of what I've already said. We think we'll have about 18% growth in production this year. Our EBITDA may decline slightly, but that's only a function of oil price. Last year, we averaged about $57. We made these forecasts at about $50 a barrel.
In fact, we might do better than that before the year is over. If not, we would have essentially flat EBITDA year-over-year. We're going to grow production 18%. We think on CapEx, that may be down as much as 4%. The midstream CapEx due to the capital carry from our partner FivePoint may be down as much as 20%-25% on the year. With that said, I'm going to sit down. In closing, I would just like to, one, acknowledge all the members of the staff that are here today and listening at home. Whether your name was called out today or it wasn't, please know that all the management team greatly values everything that you do. This is all your work. We just get to stand up here and take credit for it.
We're very, very grateful for all that each one of you do on that. Second, to all the shareholders in the room, whether you're here with us today or listening wherever you may be, we're very grateful for your investment in the company. It allows us to do what we do. We hope you're pleased with what we've done. We certainly want to make ourselves always available to you. Anytime you have a question or a concern, I hope that you'll reach out to me or to Joe or to Matt or to any of us here at Matador, and we'll be happy to answer your questions the best that we can.
With that, the only other thing I wanted to say was if you are so inclined, the little flags and flag stands at your seat today commemorating V-Day are your gift to take away if you want to, and we hope that you will. Thanks again, I enjoyed talking to everybody.
Very nicely done. We're now going to have Ray Baribault, our Lead Director, say a few words and talk about the board service and their contributions. Ray?
Thank you, Joe. Thank you, David and Matt. Well done. As the fourth son of a World War II Marine Corps veteran, it is a privilege to stand here today with you as a fellow Matador investor, and to provide this board's perspectives on the company. The greatest generation's legacy to us continues on in providing us the gift of freedom we continue to enjoy today. We are entitled only to what we earned, and this is a fair representation of the culture at Matador and the underlying premise for advancing the company forward, as I advance the slides forward. What are the advantages of investing in Matador today? Investors are looking for companies with the right portfolio of assets and the right strategy. Putting returns first, having the capability and capacity to execute consistently, and maintaining a strong balance sheet to weather volatility.
Matador's priorities align with these criteria, and the record performance in 2018 stands as proof and point. We are not standing still just with 2018 results. This Matador board is actively engaged with management to drive strategy and long-term value creation. Our board members are deliberately assembled with a thoughtful approach to committee composition and committee responsibilities. The constant at Matador is delivering consistent results. This is a slide taken from the annual report, and I am using it to illustrate one premise here. This bar graph on the far right is the company's acreage position over time from 2012 through today in the Delaware Basin. Leveraging from early positions in the Haynesville and Eagle Ford shales, Matador, as an early mover in 2012, had the conviction and resolve to realize the vast unconventional upside the Delaware Basin afforded.
More importantly, to identify the more profitable Tier 1 areas to lease and develop, that it continues to do today. Matador's acreage and inventory portfolio is scalable, and is generating outstanding well economics that compete at the top of U.S. unconventional basins. Scalability, like the Stebbins, Rodney Robinson, and State Line projects that Matt and David described, are providing new opportunities for capital efficiencies and economies of scale. Multi-well pad development and a minimal operational footprint with all pipe connections on site for oil and gas sales and produced water handling allow for takeaway and generating maximum returns year-over-year. Matador is positioning to capitalize on these advantages going forward to continue with its profitable growth at a measured pace in the coming years. Building on the consistent results benchmark, Matador's geoscience and engineering teams are pushing past traditional horizontal targets in the Wolfcamp and Bone Spring.
I am showing here on this next slide the magnitude of the horizontal landing targets that are available for exploitation. The Northern Delaware affords many opportunities for these landing zone decisions and completion targets, covering over several thousand feet of interval. The asset teams are identifying new and profitable opportunities across the acreage position and have tested more than a dozen of these discrete intervals. As you can see from Wolf Area, Rustler Breaks, Antelope, and Ranger Arrowhead. The opportunities are mind-boggling, but the team has it under control and is doing a fabulous job. Matador is leveraging off 3D seismic coverage over its capital development areas and deploying new advancements in 3D processing in high-grading asset development decisions, drilling economics, and optimizing reservoir landing zones. This ongoing effort is providing real-time results and generating better well. I will touch on the next slide.
All the asset teams, all the members in the field in the Artesia and Dallas offices were consistently striving to improve the profitability of every well. Ned, can you stand? Ned is the Team Leader of the Geoscience Group, he came on board in 2014, I believe, and has done a fabulous job leading that team to new heights, and he's not stopping. His team is growing, we're looking forward to more exciting horizons and even more exciting results as we push the limits on well results past what are going to be consistently being reported to be reported as 3,000 barrel-a-day type wells. That's unheard of in this area, new technologies that the team is taking advantage of is bringing that to bear. Thanks, Ned. Consistently striving to improve profitability, that's no more evident than with the MAXCOM operations support team.
This is a slide showing the 24/7 operations support team and the tools that are at their disposal in their dedicated room. It's located here in the Dallas office. The geology and engineering professionals that are assigned to the MAXCOM effort are working in concert on rotating 24/7 shifts to monitor and provide surveillance and guidance on drilling operations and horizontal steering. This effort takes advantage of the myriad of types of data available in real time that we, in the old school times, never had at our fingertips. It really is using cutting-edge opportunities and cutting-edge technology to make better decisions. Since going live in early 2018 with this effort, dozens of new drilling records have been set and the company's improved in target steering or making better wells at lower costs. Hats off to the guys that are manning that effort.
It truly is a labor of love. It's seven days on, seven days off, 12-hour shifts. Our hats off to those guys making positive results with that effort. I'd like to personally clap for their work. As this last bullet mentions, it's developing the technical staff, it's developing the future leaders of this company, in a way that never was available to us in the '80s, '90s, and 2000s. It's an excellent use of resources. The advancements with the company's midstream assets are continuing to position Matador with compelling advantages. A great example among many, too many to name here, is San Mateo's gathering network in the Wolfcamp area in Loving County. All of 2019 production in Wolfcamp will be gathered on pipe. That's oil, gas, and water, that's eliminating truck hauling and reducing the operational footprint. That's the benefit to all.
The 200 million per day expansion of the Rustler Breaks plant that you see on this slide is underway. The expansion to 460 million cubic feet per day capacity will position San Mateo for continued profitable growth. Alongside of that, while natural gas flaring and venting in the Permian is at a record high in Texas and New Mexico, Matador's midstream initiatives are putting it at the top of industry performance in reducing flaring and methane emissions. To wrap up our saying in the business, every day is a new day in the oil field. For the MAXCOM team, every night is a new night. New opportunities are coming along with challenges.
Matador's management employees are consistently advancing forward, charged with being responsible stewards of the company's assets, identifying and implementing cost saving initiatives, along with profitable opportunities for growth. Hats off, and the board appreciates everybody's effort.
Thank you, Ray, very much. It's been said several times, I want to thank again all of our shareholders. This would not be possible, this growth from $270,000 from some of the original shareholders in here to a company that's got $3.5 billion in the enterprise value, $1 billion in revenue. The prospects is that we're looking forward to doubling or tripling over a period of time. The lawyers won't let us say what period of time, but we can tell you what the aim is. We couldn't do it, we wouldn't be here without shareholders like you all that take that long only view. We've got some long only institutions that have been with us that we certainly appreciate, too. Someone said last night. It's just fabulous to have such great turnout as you all provided us today when the sector's not the favored one.
It really means a lot to us, and we do not take it for granted. It's really nice to have the true believers here and be able to tell you with such great confidence that things are going good, but they're just going to get better. I look forward to next year when we can share some further progress with you. I hope we've recognized everybody. [Jim Basich], I don't think we've recognized you. Would you please stand? What he's done with the IT group, we're coming into the 20th century or 21st century. Jim, you've done a fabulous job. You and Mitzi and your group have really done a lot in conversion of programs and making us ready to move on to the world. I hope we've recognized all the different groups. I'm not sure. I'd like to see all the land group.
I don't know. Man, we haven't had the land group stand. Why don't you ask them to stand? These are the young deal makers that are out on the road making things happen, and they're just doing a really splendid job at getting out, getting into other people's offices, making deals, building relationships. I want Sarah to keep standing because it was her uncle that gave me the first check back in 1983 to start Matador. My dad said he would invest if and only if I get someone else to do it first. Thank you all. Our lawyers, we've talked about them, will the lawyers please stand and take their bow? Kyle is Inspector of Elections for the eighth straight year. Would you all that are here? All right. Kyle, your quickness is slowing down. Would you please finish standing? Kyle Perkins back there.
You're only halfway up. There you go. Good. We're on a path, it's a great path. We've got rock, we've got these things, but for all the technology and all the capital this business requires, it really comes down to people. It's a judgment business. The people here are making those. It's complex. When it's complex, grand strategy is nice, but it really comes down to people taking the initiative and making the many, many choices, is what you're hearing from us today, that the people really make the difference. That's one of the main reasons we're confident that we're going to continue to live better than expected results and some of the highest performance in the industry in any number of sectors. We care. We're committed. We have skin in the game.
Everybody on our staff knows the high expectations that we have. They have the potential. We expect them to deliver every day and keep us on this path of being one of the highest-performing companies in the country. I recognize Florence Mullins back there, one of our original board of directors, so I didn't want to miss not calling her out. I regret that we've grown to the point where I don't get to introduce everybody in the room anymore, but that doesn't mean we don't really appreciate what you do, we feel like we're a team with you and appreciate your trust and confidence. What David said is really true. You got any questions, call any one of us. We're really happy to help. What Matt said so well, we're always looking to find ways to do things better.
Let us know, thank you very much. With that, I would entertain. Are there any questions? Let me give a chance for questions. My sisters are here today, I don't want to give them very long for comments. If anybody has any questions, we're happy to take them or give us a call afterwards. Seeing none, I would entertain a motion to adjourn. Moved. Second? Second. Great. All those in favor, signify by standing. Thanks again for making this one of the best meetings we've ever had.