The Technical Manual explanation is not that replicators create matter out of pure energy - they are a type of transporter that dematerializes raw material and rematerializes it to match a molecular pattern. They are "matter-energy converters" only in the sense that the stream of particles during the materialization process could be called an energy stream.
These replicator system headends are located on Deck 12 in the Saucer Module [of the Enterprise-D] and on Deck 34 in the Engineering Section. These systems operate by using a phase-transition coil chamber in which a measured quantity of raw material is dematerialized in a manner similar to that of a standard transporter.
Instead of using a molecular imaging scanner to determine the patterns of the raw stock, however, a quantum geometry transformational matrix field is used to modify the matter stream to conform to a digitally stored molecular pattern matrix. The matter stream is then routed through a network of waveguide conduits that direct the signal to a replicator terminal at which the desired article is materialized within another phase transition chamber.