DALLAS–(BUSINESS WIRE)–Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) and its midstream affiliate, San Mateo Midstream, LLC (“San Mateo”), today announced the completion and successful start-up of the expansion of San Mateo’s Black River cryogenic natural gas processing plant (the “Black River Processing Plant”) in Matador’s Rustler Breaks asset area in Eddy County, New Mexico. The expansion of the Black River Processing Plant adds an incremental designed inlet capacity of 200 million cubic feet of natural gas per day to the previously existing designed inlet capacity of 60 million cubic feet of natural gas per day for a total designed inlet capacity of 260 million cubic feet of natural gas per day. The expanded Black River Processing Plant supports Matador’s exploration and development activities in the Delaware Basin and, with the expanded capacity, is expected to offer processing opportunities for other producers’ development efforts as well. Prior to this expansion, the Black River Processing Plant had been full of Matador’s natural gas even though San Mateo had been operating the plant at approximately 10% above its designed inlet capacity of 60 million cubic feet of natural gas per day.
In addition, San Mateo has completed a natural gas liquids (“NGL”) pipeline connection at the Black River Processing Plant to the NGL pipeline owned by EPIC Y Grade Pipeline LP. This NGL connection provides several significant benefits to Matador and other San Mateo customers compared to trucking the NGLs out of the area. San Mateo’s customers receive (i) firm NGL takeaway out of the Delaware Basin, (ii) increased NGL recoveries, (iii) improved pricing realizations through lower transportation and fractionation (T&F) costs and (iv) increased optionality through San Mateo’s ability to operate the Black River Processing Plant in ethane recovery mode, if desired. In addition, San Mateo expects the NGL connection to lower operating costs at the Black River Processing Plant and provide operational advantages as transportation by pipeline rather than by truck reduces operational risks, such as weather-related interruptions or insufficient trucking capacity.
Joseph Wm. Foran, Chairman and Chief Executive Officer of Matador, said, “We are excited to announce that the expansion of the Black River Processing Plant was completed both on time and on budget. Along with the addition of the NGL connection, the Black River Processing Plant and associated residue gas pipeline provide Matador reliable transportation for its Rustler Breaks natural gas and NGLs out of the basin.
“The Board and I congratulate the members of our midstream team for the significant value they have created thus far through their efforts and strong execution, and we also appreciate the support from our San Mateo joint venture partner, Five Point Energy LLC. These efforts ensure firm takeaway capacity for Matador’s natural gas and NGLs coming from our Rustler Breaks and Wolf asset areas, provide reliable transportation for Matador’s oil production from those asset areas by the third quarter of 2018 and establish core assets for the strategic relationship with a subsidiary of Plains All American Pipeline, L.P. (NYSE: PAA) announced earlier this year.”
Please direct any commercial inquiries about the Black River Processing Plant and related gathering and processing services provided in Eddy County, New Mexico or San Mateo’s other services, including salt water gathering and disposal services and oil gathering, transportation and blending services, to: Corey Lothamer, San Mateo’s Vice President of Business Development, at (972) 371-5203 or firstname.lastname@example.org.
About Matador Resources Company
Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. Additionally, Matador conducts midstream operations, primarily through its midstream joint venture, San Mateo Midstream, LLC, in support of its exploration, development and production operations and provides natural gas processing, oil transportation services, natural gas, oil and salt water gathering services and salt water disposal services to third parties.