San Mateo Midstream JV to acquire Cardinal Midstream in $752 million deal

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3▲1 ▼0Impact / 5
Summary · why it matters

Matador Resources announced that its San Mateo Midstream joint venture with Five Point Infrastructure has agreed to acquire the operating subsidiaries of Cardinal Midstream Partners, a portfolio company of EnCap Flatrock Midstream, for $752 million in cash. Cardinal's assets include a cryogenic natural gas processing plant complex with a designed inlet capacity of 320 million cubic feet per day and 145 miles of natural gas gathering pipelines in the northern Delaware Basin. The acquisition will increase San Mateo's designed natural gas processing capacity to more than 1 billion cubic feet per day and expand its gathering systems to over 800 miles of pipeline. San Mateo expects the Cardinal assets to be immediately accretive to adjusted EBITDA and cash flows, with adjusted EBITDA projected to reach up to $110 million on an annualized basis by 2028 when the plant complex is fully utilized.

Impact on assets 1

Energy▲ · 1 stocks
Matador Resources Company
MTDR
▲ PositiveCapitalrelevance

Matador's San Mateo JV acquires Cardinal Midstream for $752M, expected to be immediately accretive to adjusted EBITDA and cash flows.

Off-coverage companies 3

Cardinal Midstream PartnersPrivate± Mixed
Capitalrelevance

Cardinal Midstream is being acquired; impact on its own value is not discussed as it is a private company being sold.

Five Point InfrastructurePrivate▲ Positive
Capitalrelevance

Five Point Infrastructure is a JV partner in San Mateo; the acquisition expands the JV's assets and expected cash flows.

EnCap Flatrock MidstreamPrivate± Mixed
Capitalrelevance

EnCap Flatrock Midstream is the seller (portfolio company); the deal's impact on EnCap is not detailed.

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