Matador Resources’ joint venture, San Mateo Midstream, agreed to acquire Cardinal Midstream Partners’ subsidiaries for $752 million in cash. The acquisition targets assets within the Delaware Basin production area. The deal includes a cryogenic natural gas processing plant and 145 miles of pipelines.
San Mateo’s total natural gas processing capacity will exceed one billion cubic feet per day. The company’s pipeline network will expand to more than 800 miles. The transaction immediately adds third-party volumes and cash flow. This acquisition diversifies San Mateo’s customer base beyond its parent company, Matador.
The deal signals increased scale for private midstream operators with publicly-traded parents. For AMLP investors, the transaction highlights ongoing consolidation and potential M&A activity in the sector.