Matador Resources Company Announces Expansion of San Mateo’s Delaware Basin Infrastructure and New Long-Term Agreements
Matador's 51%-owned midstream JV San Mateo signed two long-term fixed-fee natural gas gathering and processing agreements with a large Northern Delaware Basin producer, including a new large-scale acreage dedication in Lea and Eddy Counties, New Mexico. To service the new volumes plus Matador production, San Mateo plans a 300 MMcf/d Marlan Plant expansion with a nitrogen rejection unit and ~20 miles of new pipeline, targeted for completion by year-end 2028; post-expansion processing capacity will exceed 1.3 Bcf/d.
Key figures
- Guidance
- Full-year 2026 midstream capital expenditures to increase by ~$25 million to $170-$190 million
- Prior capacity
- 460 MMcf per day
- New pipeline miles
- approximately 20 miles
- San mateo ownership
- 51% Matador / 49% Five Point affiliate
- Expansion target completion
- year-end 2028
- New processing train capacity
- 300 MMcf per day
- San mateo adjusted ebitda potential
- in excess of $100 million by end of 2029
- Cardinal ebitda contribution estimate
- $100 to $115 million by 2028
- Total processing capacity post expansion
- more than 1.3 billion cubic feet per day
AI analysis
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