San Mateo Midstream, Matador Resources’ 51%-owned joint venture, closed its USD 752 million cash acquisition of Cardinal Midstream’s operating subsidiaries.
Assets include a Loving County, Texas gas processing complex with 320 MMcf/d inlet capacity and about 145 miles of gathering pipelines.
The deal lifts San Mateo’s designed processing capacity to more than 1 Bcf/d, expanding its northern Delaware Basin gathering footprint to over 800 miles.
Financing included a new USD 650 million term loan due July 2027, cash on hand, and partner capital contributions, including Matador’s USD 51 million.
Cardinal assets are expected to be accretive, with annualized adjusted EBITDA projected to rise to as much as USD 110 million by 2028.
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