Dallas-based Matador Resources said last week it agreed to sell its wholly owned subsidiary Pronto Midstream to San Mateo Midstream, a joint venture of Matador with private equity firm Five Point Energy. The deal values Pronto at $600 million; Matador will receive an upfront cash payment of about $220 million. Joseph Wm. Foran, chairman and CEO, said Dec. 5, “We are excited about the opportunity to combine San Mateo and Pronto. Matador will continue to operate and own 51 percent of San Mateo following this transaction. This combination will provide San Mateo with additional scale and expansion of its operations into Lea County, New Mexico, where Matador and third-party customers are increasing their focus and production.”
Pronto will gather, treat and process natural gas produced from Matador’s operated wells in northern Lea County. And Pronto will enlist Northwind Midstream Partners, affiliate of Five Point, to treat certain sour gas gathered and delivered by Pronto in northern Lea County. Closing is expected by yearend 2024.
Pronto owns the Marlan cryogenic natural gas processing plant that is being expanded from 60 million cubic feet per day to 260 million cfd.