Dallas-based Matador Resources said last week it agreed to acquire a gas gathering and processing system in northern Delaware Basin from Summit Midstream Partners for $75 million. The Lane gathering and processing system, located in Eddy and Lea counties in New Mexico, includes a cryogenic processing plant (60 million cfd capacity), three compressor stations and 45 miles of gathering pipelines. Matador also will assume certain takeaway capacity on the Double E pipeline operated by Summit. Closing is expected this month.
Joseph Wm. Foran, Matador founder, chairman and CEO, said June 9, “We expect to expand the Lane E&P system to support our environmental, safety, exploration and production efforts in northern Eddy and Lea counties.”