Cardinal Midstream Partners and EnCap Flatrock Announce Sale of Delaware Basin Assets to San Mateo Midstream for $752 Million
Cardinal Midstream Partners, LLC (the “Company” or “Cardinal”), an independent midstream energy company, today announced that the Company and its financial sponsor EnCap Flatrock Midstream (“EnCap Flatrock”) have entered into a definitive agreement to sell its wholly owned subsidiaries Cardinal Delaware Basin, LLC and Cardinal New Mexico, LLC to San Mateo Midstream, LLC (“San Mateo”) for $752 million.
The transaction is expected to close in the third quarter of 2026, subject to regulatory approval and customary closing conditions. Cardinal’s field employees will remain with the business and become part of San Mateo, a premier Delaware Basin midstream company with a proven track record of safe and reliable operations.
Located in Dallas, Texas, Cardinal operates nearly 150 miles of high- and low-pressure natural gas gathering pipelines and 320 million cubic feet per day (MMcf/d) of design processing capacity in the core of the Delaware Basin. Cardinal partnered with EnCap Flatrock in 2022 and is led by four founding partners, Chief Executive Officer Doug Dormer, Chief Financial Officer Doug Gale, Chief Operating Officer Clay Hewett and Chief Commercial Officer Justin Garrity.
