San Mateo Midstream closes $752m acquisition of Cardinal Midstream

San Mateo Midstream, a associated task betwixt Matador Resources and Five Point Infrastructure, has completed the antecedently announced $752m acquisition of the operating subsidiaries of US-based Cardinal Midstream Partners.

Matador holds a 51% involvement successful San Mateo, with the remaining 49% owned by Five Point Infrastructure, portion Cardinal was a portfolio institution of EnCap Flatrock Midstream.

With the acquisition, San Mateo's designed earthy state processing capableness volition beryllium much than 1 cardinal cubic feet per time successful the bluish Delaware Basin. Its earthy state pipeline web surpasses 800 miles with the summation of Cardinal's assets.

The acquired assets see a earthy state processing works analyzable successful Loving County, Texas, offering an inlet capableness of astir 320 cardinal cubic feet per time (mcf/d), arsenic good arsenic astir 145 miles of gathering pipelines. This summation successful capableness positions San Mateo arsenic the largest backstage earthy state processor successful the area.

The woody introduces 9 caller earthy state customers to San Mateo and is expected to heighten third-party lawsuit volumes and revenues.

The concern expects further opportunities based connected the astir 100 drilling rigs presently sited wrong 10 miles of the combined pipeline and processing system.

Matador founder, president and CEO and San Mateo laminitis Joseph Wm. Foran said: "This acquisition represents different important catalyst and milestone successful gathering 1 of the premier integrated midstream businesses successful the Delaware Basin.

"The Cardinal strategy complements our existing infrastructure, provides different important transportation crossed our earthy state gathering network, enhances the travel assurance San Mateo provides to Matador and different third-party customers, and positions San Mateo for aboriginal strategical transactions."

The Cardinal transaction was funded done a operation of a $650m word indebtedness nether San Mateo's existing recognition facility, disposable currency and superior contributions from its partners. The word indebtedness matures successful July 2027.

Matador reported that it utilized $51m from distributions received via San Mateo to money its stock of the superior publication required for the acquisition.

Baker Botts and O'Melveny & Myers advised San Mateo successful the transaction, portion Willkie Farr & Gallagher acted arsenic counsel for Cardinal.

Last month, Matador signed a woody to get Paloma Permian from EnCap Investments successful a woody valued astatine $1.27bn.

"San Mateo Midstream closes $752m acquisition of Cardinal Midstream" was primitively created and published by Offshore Technology, a GlobalData owned brand.