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San Mateo Midstream Completes Cardinal Acquisition

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Matador Resources (MTDR) said on Monday its joint venture San Mateo Midstream has completed the acquisition of operating subsidiaries of Cardinal Midstream Partners for $752 million.

The acquired assets include a natural gas processing complex in Loving County, Texas, which has a capacity of about 320 million cubic feet per day, and 145 miles of gathering pipelines.

The transaction increases San Mateo's natural gas processing capacity to over 1 billion cubic feet per day. It also expands its gathering pipelines to more than 800 miles across the northern Delaware Basin, the statement said.

Nine new customers have been added to San Mateo's customer-base following the acquisition.

By 2028, Cardinal's assets are expected to generate up to $110 million per year in adjusted earnings before interest, taxes, depreciation, and amortization upon full utilization of the natural gas processing complex, the company said.

Cardinal is a portfolio company of EnCap Flatrock Midstream. Meanwhile, San Mateo is a joint venture that is 51% owned by Matador and 49% owned by Five Point Infrastructure.

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