Published: November 3, 2026 |

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San Mateo Midstream, a joint venture between Matador Resources and Five Point Infrastructure, said that two of its wholly-owned subsidiaries have entered into two agreements with a large producer in the Northern Delaware Basin:

• New Long-Term Agreement
A new long-term fixed fee natural gas gathering and processing agreement for San Mateo to gather and treat natural gas from certain newly dedicated acreage in Lea and Eddy Counties, New Mexico and process such natural gas at the Marlan natural gas processing complex in Eddy County, New Mexico.

• Long-Term Extension of Existing Agreement
An amendment to extend a natural gas gathering and processing agreement for San Mateo to continue to gather and treat natural gas from Eddy County, New Mexico and process natural gas for several years past the original term at the Black River natural gas processing plant in Eddy County, New Mexico. The Black River Extension extends the natural gas gathering and processing agreement previously announced by San Mateo in October 2018.

“We believe these agreements are a strong validation of San Mateo’s integrated midstream strategy and the quality of our assets and people. Our ability to provide scalable gathering, processing, and related services gives our customers confidence that their infrastructure requirements will be met as their production grows. This repeat business showcases San Mateo’s ability to provide the first-class midstream services and the flow assurance that oil and natural gas producers require,” said Joseph Wm. Foran, Matador’s founder, chairman and CEO and San Mateo’s founder.

“This deal also builds upon what has already been a transformative year for San Mateo. Following the closing of the Cardinal Midstream acquisition in the third quarter, we completed the connection of the San Mateo and Cardinal systems in southern Eddy County, New Mexico. In 2027, San Mateo plans to complete the full system connection with a northern pipeline connecting San Mateo’s Lea County, New Mexico gathering infrastructure with the terminus of Cardinal’s gathering infrastructure in Eddy County, New Mexico. This 2027 connection is expected to allow gas volumes to flow from the Marlan Plant complex in the north to the Pecos River Plant in the south providing further flexibility for San Mateo and its customers,” added Foran.

“Finally, the closing of the Cardinal transaction alongside these new agreements continues to diversify San Mateo’s third-party revenue streams and committed volumes. Since inception, San Mateo’s strategy has been to underwrite infrastructure development through Matador’s operations and subsequently build relationships to capture third-party volumes to fill any remaining capacity. Executing on these agreements demonstrates San Mateo’s ability to operate as a self-sustaining business — successfully funding, building, and delivering clear, scalable growth into the next decade. San Mateo is now the largest private natural gas processor in the Northern Delaware Basin with more than one billion cubic feet per day of processing capacity and looks forward to providing first class flow assurance for Matador and its third-party customers for years to come,” concluded Foran.

To accommodate volumes associated with these agreements and additional volumes from Matador, San Mateo plans to expand its Marlan Plant by adding a 300 MMcf per day natural gas processing train and a new nitrogen rejection unit. Subject to routine permitting, procurement, and construction; target completion for this expansion is year-end 2028.

San Mateo also expects to construct approximately 20 miles of natural gas pipeline to connect the new dedicated acreage, along with a field treating facility for carbon dioxide removal. Upon completion of the expansion in 2028, San Mateo expects immediate capacity utilization and volume additions.

Under both agreements, San Mateo will provide long-term, fee-based natural gas gathering, processing, treating and related midstream services supporting this producer’s development of its Northern Delaware Basin acreage. The new agreement includes a large scale acreage dedication. The total volume gathered and processed under these agreements is expected to provide San Mateo with substantial long-term volume growth and increased utilization of its integrated midstream infrastructure.

The new commercial agreements are expected to add meaningful long-term volumes across San Mateo’s existing gathering and processing footprint. To provide service for these volumes and the anticipated volumes from Matador, San Mateo expects to both utilize existing infrastructure and construct a new natural gas processing train at its Marlan Plant complex. San Mateo expects the agreements will enhance the company’s growth profile and provide increased long-term cash flow generation.

San Mateo Midstream is a midstream joint venture owned 51 percent by Matador and 49 percent by an affiliate of Five Point. San Mateo provides natural gas gathering, treating and processing, produced water gathering and disposal, and oil gathering and transportation services to Matador and third-party customers in the Delaware Basin in Southeast New Mexico and West Texas.

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