Dallas-based Matador Resources said Monday that San Mateo Midstream, Matador’s 51 percent-owned joint venture with Five Point Infrastructure, reached agreement to acquire operating subsidiaries of Cardinal Midstream Partners for $752 million cash. Cardinal’s midstream assets complement San Mateo’s existing natural gas gathering and processing system and provide San Mateo the ability to move natural gas more easily in the northern Delaware Basin.
Cardinal’s assets include a cryogenic natural gas processing plant in Loving County with a designed inlet capacity of approximately 320 million cubic feet of natural gas per day and about 145 miles of natural gas gathering pipelines in west Texas and southern Eddy County, N.M. The Cardinal plant complex sits on about 75 acres with two residue natural gas takeaway connections and four NGL takeaway connections to provide San Mateo the ability to expand processing capacity. Nine of Cardinal’s natural gas gathering and processing customers would be new natural gas customers for San Mateo.
Brian J. Willey, San Mateo chairman, said, “San Mateo not only gains more processing capacity, a larger pipeline system and a more diverse customer base, but also improves its position for strategic transactions in the future.” The deal is expected to close by July 31.
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