The transaction provides San Mateo, a joint venture between Matador Resources and Five Point Infrastructure, a strategic foothold in southeastern New Mexico and western Texas. By incorporating Cardinal’s assets, the company pushes its total natural gas processing capacity beyond one billion cubic feet per day while extending its pipeline network to over 800 miles. Matador expects the purchase to remain cash neutral for the joint venture.
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Matador Resources Targets Delaware Basin Growth with $752M Acquisition
A $752 million acquisition of Cardinal Midstream Partners’ operating subsidiaries will bolster San Mateo Midstream’s footprint across the Delaware Basin. The deal, announced Monday, integrates a cryogenic processing plant and 145 miles of pipeline into the joint venture’s existing infrastructure, signaling a significant expansion of its gathering and processing capabilities.
To fund the expansion, San Mateo is securing a new term loan of up to $650 million under its current credit facility. Joseph Wm. Foran, chief executive of Matador, noted that the deal aligns with the firm’s long-term objective to establish a dominant midstream presence in the region, ensuring consistent flow for both internal operations and third-party customers.
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