San Mateo Midstream to Buy Cardinal Midstream for $752M, Boosting Capacity Past 1 Bcf/d
MTDR•San Mateo Midstream, a Matador Resources–Five Point Infrastructure JV, will acquire Cardinal Midstream’s operating subsidiaries for $752 million in cash, closing by July 31, 2026. The deal adds 145 miles of pipelines, a 320 mcf/d cryogenic plant and nine new third-party customers, boosting capacity to over 1 Bcf/d and 800 pipeline miles.
1. Acquisition Details
San Mateo Midstream, a joint venture between Matador Resources (51%) and Five Point Infrastructure (49%), has agreed to purchase Cardinal Midstream’s operating subsidiaries for $752 million in cash. The transaction is expected to close by July 31, 2026, subject to customary closing conditions.
2. Asset and Capacity Expansion
Cardinal Midstream’s assets include approximately 145 miles of low- and high-pressure natural gas gathering pipelines and a cryogenic processing plant in Loving County, Texas, with a 320 mcf/d capacity. Upon integration, San Mateo’s total designed processing capacity will exceed 1 Bcf/d and its gathering network will span over 800 miles.
3. Strategic Impact
The acquisition introduces nine new third-party gathering and processing customers, diversifying San Mateo’s customer base and increasing throughput and midstream revenue. Integration of facilities in Texas and New Mexico aims to improve flow assurance, system reliability and provide avenues for future expansion across the northern Delaware Basin.
