The growth of the operations in the Permian Basin in West Texas and southeast New Mexico has prompted Matador Resources Company to expand its natural gas gathering and salt water gathering and disposal operations in the Delaware Basin.
The expansion includes an agreement between the Dallas-based company and a subsidiary of Five Point Energy LLC. It will include 51% by Matador and 49% by Five Point.
. As part of the expansion, an additional cryogenic natural gas processing plant will be constructed in close proximity to the existing Black River cryogenic natural gas processing plant near Carlsbad, New Mexico in Matador’s Rustler Breaks asset area (the “Black River Processing Plant”).
The expansion will nearly double the capacity of the plant.
With this new transaction, San Mateo plans to expand its natural gas pipeline system to run from the Black River Processing Plant north to Matador’s Stebbins leasehold area and south to Matador’s new Stateline asset area that was acquired in connection with the Bureau of Land Management (“BLM”) New Mexico Oil and Gas Lease Sale in September 2018. The additional salt water gathering and disposal and oil gathering facilities will be variously located across Matador’s Eddy County, New Mexico acreage, additional portions of which will be dedicated to San Mateo.
