San Mateo Midstream Signs Natural Gas Gathering and Processing Agreement
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San Mateo Midstream’s wholly-owned subsidiary, DLK Black River Midstream, has entered into a long-term agreement with a producer in Eddy County, New Mexico relating to the gathering and processing of such producer’s natural gas production.
As a result of this agreement, along with prior natural gas gathering and processing agreements entered into by San Mateo’s other customers, San Mateo has now entered into contracts to provide firm gathering and processing services for over 200 million cubic feet of natural gas per day, or over 80 percent of the designed inlet capacity of 260 million cubic feet of natural gas per day, at its Black River cryogenic natural gas processing plant in Eddy County, New Mexico.
In March 2018, San Mateo completed a natural gas liquids pipeline connection at the tailgate of the Black River Processing Plant to the NGL pipeline owned by EPIC Y-Grade Pipeline, LP. The NGL connection ensures San Mateo customers firm NGL takeaway out of the Delaware Basin and firm fractionation for those NGL volumes further downstream.
“This contract, and others we have entered into in 2018, have significantly diversified San Mateo’s customer base as we continue to provide first class midstream services to producers in the area. We pride ourselves on generating value for our customers by providing services across all three production streams — oil, natural gas and salt water — and look forward to continuing to be a full-service midstream solution for producers in the northern Delaware Basin,” said Matt Spicer, senior vice president and general manager of San Mateo.
This is the second announcement in 2018 of a significant customer addition by San Mateo. In June 2018, San Mateo said it had entered into a long-term agreement with a significant producer in Eddy County, New Mexico relating to the gathering and disposal of such producer’s salt water. That agreement included the dedication of over 65 wells, which are located within five miles of San Mateo’s existing salt water gathering system in Eddy County, New Mexico.
In addition, San Mateo completed its fourth and fifth commercial salt water disposal wells in Eddy County, New Mexico during the third quarter of 2018 and is presently evaluating a sixth and seventh salt water disposal well. San Mateo currently has total salt water disposal capacity of approximately 225,000 barrels per day in Eddy County, New Mexico and Loving County, Texas. San Mateo expects to dispose of over 200,000 barrels per day of salt water as early as the first quarter of 2019, which includes expected volumes from Matador Resources Company and San Mateo’s other contracted producers in Eddy County, New Mexico and Loving County, Texas.
Please direct any commercial inquiries about San Mateo’s natural gas gathering and processing services provided in Eddy County, New Mexico or Loving County, Texas or San Mateo’s other services, including salt water gathering and disposal services and oil gathering, transportation and blending services, to:
Contact: Corey Lothamer, Vice President of Business Development
Phone: (972) 371-5203
Email: .(JavaScript must be enabled to view this email address)
About San Mateo Midstream
San Mateo Midstream, LLC is a strategic joint venture formed in February 2017 by a subsidiary of Matador Resources Company and a subsidiary of Five Point Energy LLC. San Mateo provides an all-inclusive approach to midstream services for the three main product streams produced by oil and natural gas activities, including salt water gathering and disposal services, natural gas gathering, compression, treating and processing services, and oil gathering, transportation and blending services. San Mateo owns and operates oil, natural gas and water gathering and transportation systems in Eddy County, New Mexico and Loving County, Texas, the Black River Processing Plant in Eddy County, New Mexico with a designed inlet capacity of 260 million cubic feet of natural gas per day and eight commercial salt water disposal wells in Eddy County, New Mexico and Loving County, Texas. San Mateo serves as one of the primary midstream solutions for multiple customers across the northern Delaware Basin, including its anchor customer, Matador Resources Company.
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