San Mateo Midstream to acquire Cardinal Midstream for $752m

San Mateo Midstream has agreed to get the operating subsidiaries of rival US-based midstream vigor institution Cardinal Midstream Partners for $752m successful cash.

Cardinal Midstream is simply a portfolio institution of EnCap Flatrock Midstream, portion San Mateo Midstream is simply a associated task (JV) of Matador Resources (51%) and Five Point Infrastructure (49%).

Closing of the transaction is expected connected oregon earlier 31 July 2026, contingent upon customary closing conditions.

Based successful Dallas, Texas, Cardinal Midstream operates astir 145 miles of debased and high-pressure earthy gas-gathering pipelines.

Cardinal Midstream besides owns a cryogenic earthy state processing works analyzable successful Loving County, Texas. The works has a designed capableness of astir 320 cardinal cubic feet per time (mcf/d).

The tract covers astir 75 acres and offers 2 residue earthy state takeaway connections and 4 outlets for earthy state liquids.

Cardinal Midstream's assets run chiefly successful the Delaware Basin, with pipelines stretching into West Texas and confederate Eddy County, New Mexico.

Matador founder, president and CEO and San Mateo laminitis Joseph Wm. Foran said: "We are precise pleased to denote San Mateo's acquisition of Cardinal Midstream. We judge the acquisition – which is being funded by midstream – is the adjacent measurement successful the maturation of San Mateo and a continuation of the strategical imaginativeness Matador and Five Point stock for our associated midstream concern to beryllium a starring midstream institution successful the Delaware Basin, providing travel assurance to Matador and third-party customers."

The acquisition volition harvester and grow existing gathering and processing capabilities crossed the Delaware Basin.

Once completed, San Mateo's full designed earthy state processing capableness is expected to surpass 1 cardinal cubic feet per day, portion its gathering web volition summation to much than 800 miles of pipeline.

The integration of Cardinal Midstream's web is expected to alteration much businesslike question of earthy state crossed the bluish Delaware Basin and supply options for aboriginal expansion.

The acquisition introduces 9 caller third-party earthy gas-gathering and processing customers to San Mateo, with Cardinal Midstream's existent lawsuit basal made up of major, mid-cap and backstage producers.

This summation is expected to straight summation San Mateo's lawsuit base, throughput and gross generated from third-party business.

The companies spot contiguous synergies from combining Cardinal Midstream's and San Mateo's plants.

San Mateo's Marlan and Black River processing plants successful Eddy County, New Mexico, volition beryllium connected to Cardinal Midstream's analyzable successful Texas. This is intended to springiness producers much options and amended strategy reliability.