Matador Resources Company Announces Expansion of San Mateo’s Delaware Basin Footprint Through the Acquisition of Cardinal Midstream
Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced that San Mateo Midstream, LLC (“San Mateo”), Matador’s 51%-owned midstream joint venture with Five Point Infrastructure (“Five Point”), has entered into a definitive agreement to acquire the operating subsidiaries of Cardinal Midstream Partners, LLC (“Cardinal”), a portfolio company of EnCap Flatrock Midstream, for total cash consideration of $752 million. The transaction is expected to close on or before July 31, 2026, subject to customary closing conditions (the “Cardinal Acquisition”). Matador anticipates the Cardinal Acquisition to be cash neutral for Matador as it expects to use distributions from San Mateo and/or proceeds from the potential drop-down to San Mateo or sale of a portion of Matador’s wholly-owned midstream assets to fund any required cash contributions to San Mateo related to the acquisition.
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Cardinal Acquisition Highlights
Complementary Midstream Assets. Cardinal’s midstream assets are complementary to San Mateo’s existing natural gas gathering and processing system and provide San Mateo the ability to move natural gas more easily throughout the northern Delaware Basin in southeast New Mexico and West Texas (see map, Exhibit A). Cardinal’s assets consist of (i) a cryogenic natural gas processing plant complex in Loving County, Texas with a designed inlet capacity of approximately 320 million cubic feet of natural gas per day, and (ii) approximately 145 miles of low-pressure and high-pressure natural gas gathering pipelines located in West Texas and southern Eddy County, New Mexico. The Cardinal plant complex sits on approximately 75 acres with two residue natural gas takeaway connections and four natural gas liquids takeaway connections, providing San Mateo the ability to expand processing capacity in the future.
