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San Mateo Midstream to Acquire Delaware Basin Assets From Cardinal Midstream

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San Mateo Midstream, a joint venture between Matador Resources (MTDR) and Five Point Infrastructure, will acquire the operating subsidiaries of Cardinal Midstream Partners for $752 million, expanding its Delaware Basin footprint, the companies said on Monday.

Cardinal, a portfolio company of EnCap Flatrock Midstream, said the agreement includes the acquisition of its Delaware Basin and New Mexico units.

The midstream assets include a natural gas processing plant in Texas and gathering pipelines spanning nearly 150 miles in West Texas and New Mexico.

San Mateo said the deal, once finalized on or before July 31, will increase its natural gas processing capacity to more than one billion cubic feet per day and expand its gathering system to at least 800 miles.

It will fund the acquisition through a loan of up to $650 million, cash on hand, and capital contributions.

Matador expects the deal to be "cash neutral" for the company, as it will use the proceeds to fund any required contributions to San Mateo.

Price: $50.74, Change: $+0.99, Percent Change: +1.99%

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