Matador Resources Company (MTDR) majority-owned San Mateo Midstream joint venture has agreed to acquire the operating subsidiaries of Cardinal Midstream Partners from EnCap Flatrock Midstream for $752 million in cash, the company said Monday.
The transaction is expected to close on or before July 31.
Matador Resources holds a 51% stake in San Mateo Midstream, with Five Point Infrastructure holding the rest, the company said.
Cardinal's midstream assets complement San Mateo's existing natural gas gathering and processing system and give it the ability to move natural gas more easily in southeast New Mexico and West Texas, the company said.
The assets include a cryogenic natural gas processing plant complex in Texas and around 145 miles of low-pressure and high-pressure natural gas pipelines located in Texas and New Mexico, the company said.
San Mateo expects to finance the acquisition partly through a new term loan of up to $650 million under its existing credit facility, the company said.
Matador shares were up 1.2% in recent premarket trading.