Matador Resources and its San Mateo Midstream joint venture have agreed to acquire Cardinal Midstream Partners’ operating subsidiaries for $752 million, significantly expanding their natural gas gathering and processing infrastructure across the northern Delaware Basin in New Mexico and West Texas.
Cardinal’s assets include a 320 MMcf/d cryogenic natural gas processing complex and 145 miles of gathering pipelines, increasing San Mateo’s total processing capacity to more than 1 Bcf/d and expanding its pipeline network to over 800 miles. The acquisition is expected to be immediately accretive to EBITDA and cash flow, with annualized adjusted EBITDA projected to reach up to $110 million by 2028 once the facilities are fully utilized.
For oilfield service companies, the transaction highlights continued investment in Delaware Basin gas infrastructure to support rising associated gas production. As operators continue to develop longer laterals and multi-well pad projects, additional gathering, processing, compression, and pipeline capacity will remain critical to sustaining future drilling and production growth.
Author: phinds