San Mateo Midstream to Acquire Cardinal Midstream for $752 Million

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

San Mateo Midstream, a majority-owned joint venture of Matador Resources, has agreed to purchase the operating subsidiaries of Cardinal Midstream Partners for $752 million in cash. The acquired assets include a natural gas processing plant in Loving County, Texas, with an inlet capacity of up to 320 million cubic feet per day, along with 145 miles of gathering pipelines in West Texas and southern Eddy County. The deal will expand San Mateo's total processing capacity to more than 1 billion cubic feet per day and its gathering system to over 800 miles, while adding nine new third-party customers. The acquisition is expected to close by July 31, 2026, and be funded through a new term loan of up to $650 million, existing cash, and partner contributions, without materially impacting Matador's cash position. San Mateo expects the Cardinal assets to generate up to $110 million in annual adjusted EBITDA by 2028 when fully utilized.

Impact on assets 4

Energy▲ · 2 stocks
Matador Resources Company
MTDR
▲ PositiveCapitalrelevance

Matador's JV San Mateo acquires Cardinal Midstream for $752M, expanding processing capacity and adding third-party customers, funded without materially impacting Matador's cash position.

Energy Transition & Power Demand▲ · 1 stocks
Synthetic Biology (non-pharma)▲ · 1 stocks

Off-coverage companies 2

Cardinal Midstream PartnersPrivate▲ Positive
Capitalrelevance

Cardinal Midstream's operating subsidiaries are acquired for $752M cash, providing an exit for its owners.

San Mateo MidstreamPrivate▲ Positive
Capitalrelevance

San Mateo Midstream expands processing capacity to over 1 Bcf/d and gathering system to over 800 miles, adding nine new third-party customers, with expected $110M annual EBITDA by 2028.

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