Matador’s significant presence in New Mexico highlights the company’s role as a major player in the state’s oil and gas industry, contributing to the local economy and engaging with stakeholders. Matador Resources is the eighth-largest company operating in New Mexico, indicating substantial operations and investment in the state.
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Matador Wells Drilled Since 2023
Ensuring flow assurance in the Delaware Basin is crucial due to capacity limitations. Matador has secured firm transport agreements on takeaway pipelines to mitigate risks associated with negative pricing at Waha and ensure that their gas can be sold. Matador’s midstream system in the Permian, including the ability to connect wells to different pressure gathering systems, optimizes production and enhances flow assurance. This system also provides environmental benefits by reducing emissions through decreased flaring and trucking.
Matador Resources’ midstream system:
- Flow Assurance and System Efficiency:
- The midstream system in the Delaware Basin is designed to enhance flow assurance by integrating 595 miles of pipeline into one system. This integration allows for more efficient and reliable transport of oil, gas, and water, reducing the risk of production bottlenecks.
- Flexibility in Production:
- The system enables wells to be connected to high, medium, or low-pressure gathering systems. This flexibility allows for better matching of well production to pipeline capacity, optimizing output and recovery.
- Environmental Benefits:
- The midstream system has contributed to significant reductions in emissions, cutting the company’s emissions by 55% over the past four years. This is achieved by reducing the need for flaring and trucking, as the system ensures that gas and liquids are transported through pipelines instead.
- Third-Party Business:
- Matador’s midstream system also serves third-party customers, providing them with reliable service and the assurance that if Matador’s gas is flowing, so is theirs. The repeat business from third-party customers indicates strong satisfaction with the service provided.
- Strategic Value and Potential:
- The midstream assets are seen as a significant value addition to Matador’s operations, enhancing production value and providing potential for future growth. The company remains open to considering offers or proposals regarding its midstream assets but currently finds substantial utility in owning and operating these systems to support their production activities.
Conclusion
The company’s balanced approach to growth, combining organic drilling with potential acquisitions, is underpinned by significant financial flexibility and operational efficiency. Matador’s integration of 595 miles of pipeline has enhanced flow assurance, reduced emissions, and supported a high level of well completions.
