San Mateo Midstream Announces Expansion of Delaware Basin Infrastructure and New Long-Term Agreements
San Mateo Midstream, the midstream joint venture 51%-owned by Matador Resources (MTDR), signed a new long-term fixed-fee natural gas gathering and processing agreement covering newly dedicated acreage in Lea and Eddy Counties, New Mexico, plus a multi-year extension of the existing Black River Plant agreement with a large Northern Delaware Basin producer. To service the new volumes and Matador production, San Mateo plans a new 300 MMcf per day processing train and nitrogen rejection unit at the Marlan Plant complex plus roughly 20 miles of new pipeline, targeting completion by year-end 2028.
Key figures
- New pipeline miles
- 20
- San mateo ownership
- 51% Matador / 49% Five Point
- Prior processing capacity
- 460 MMcf per day
- Expansion target completion
- year-end 2028
- New processing train capacity
- 300 MMcf per day
- Cardinal projected adjusted ebitda
- $100-$115 million by 2028
- Projected adjusted ebitda new agreements
- $100 million+ by end of 2029
- Total processing capacity post expansion
- 1.3 billion cubic feet per day
AI analysis
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