Matador's San Mateo signs long-term gas services agreement with Delaware Basin producer
MTDR•Matador Resources' joint venture San Mateo secured new and extended long-term gas gathering and processing agreements with a Northern Delaware Basin producer. A planned 300 million-cubic-foot-per-day expansion at its Marlan plant could generate more than $100 million in adjusted EBITDA by the end of 2029 after completion targeted by year-end 2028.
1. Agreements and expansion
San Mateo's new fixed-fee agreement covers dedicated acreage in Lea and Eddy Counties, New Mexico, while an extension of its Black River agreement requires no incremental capital spending. The planned Marlan plant expansion includes about 20 miles of new gas pipeline, a nitrogen rejection unit and a carbon dioxide removal facility. Immediate utilization after completion could generate more than $100 million in adjusted EBITDA by the end of 2029.
