Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company") and its midstream affiliate, San Mateo Midstream ("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 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 260 million cubic feet of natural gas per day for a total designed inlet capacity of 460 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 is expected to gather and process natural gas from Matador’s Stateline asset area and from the Stebbins area and surrounding leaseholds in the southern portion of its Arrowhead asset area (the "Greater Stebbins Area"). The Black River Processing Plant currently processes natural gas from the Company’s Rustler Breaks asset area and also provides natural gas processing services for a number of other San Mateo customers in the area. Matador has also secured firm transportation via pipeline and fractionation for all anticipated natural gas liquids ("NGL") and firm transportation via pipeline for all residue natural gas volumes, including those attributable to the newly increased inlet capacity, delivered at the tailgate of the Black River Processing Plant.
Matador is also pleased to announce that San Mateo is nearing completion on the construction of approximately 24 miles of large diameter natural gas gathering pipelines between the Black River Processing Plant and the Company’s Stateline asset area, as well as approximately 19 miles of large diameter natural gas gathering pipelines between the Black River Processing Plant and the Greater Stebbins Area. In addition, San Mateo is nearing completion on the construction of approximately 19 miles of various diameter crude oil pipelines from certain points of origin in Eddy County to the existing San Mateo interconnect with Plains Pipeline, L.P. in Eddy County. These various pipelines are expected to be placed in service at various times from early to mid-September 2020.
Matador recently initiated flowback operations on its five Leatherneck wells in the Greater Stebbins Area, all two-mile laterals, as anticipated. The Company also remains on track to begin turning to sales the 13 Boros wells, all two-mile laterals, drilled and completed in the Stateline asset area in early September 2020. The Boros wells are expected to be turned to sales in a staggered fashion of three to four wells at a time throughout September and into early October. These projects reflect Matador’s tightly integrated strategy of growing its exploration and production and midstream businesses together, as well as the planning, execution and hard work of the Matador and San Mateo teams to achieve the goals the Company set two years ago in terms of production and reserves growth, midstream expansion and improved capital efficiency. Matador looks forward to providing additional details on the completion of the various pipeline and other midstream projects and the initial test results from the Boros and Leatherneck wells in September and October, as these results become available.
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, "We are pleased to announce the completion of this most recent expansion of the Black River Processing Plant, which was initiated almost two years ago and was completed this summer on time and on budget. Along with the addition of the enhanced processing capacity and firm transportation and fractionation, the Black River Processing Plant and associated residue gas takeaway should provide Matador reliable transportation for the natural gas and NGLs from our Rustler Breaks and Stateline asset areas and the Greater Stebbins Area for years to come. The Board and I congratulate and thank the members of our midstream and asset teams – and especially the teams in the field – for the significant value they have created through their efforts and strong execution. We also greatly appreciate the support from our San Mateo joint venture partner, Five Point Energy LLC."
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 and transportation services, to:
Matt Spicer, San Mateo’s Co-Chief Operating Officer, at (972) 371-5420, Corey Lothamer, San Mateo’s Vice President of Business Development, at (972) 587-4635 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. Additionally, Matador conducts midstream operations, primarily through its midstream joint venture, San Mateo, 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.
For more information, visit Matador Resources Company at www.matadorresources.com.
About San Mateo Midstream
San Mateo Midstream is a strategic joint venture formed in February 2017 by a subsidiary of Matador Resources Company (NYSE:MTDR) 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 and transportation 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 460 million cubic feet of natural gas per day and thirteen commercial salt water disposal wells in Eddy County, New Mexico and Loving County, Texas, with a combined salt water disposal capacity of 335,000 barrels per day. 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.
For more information, visit San Mateo Midstream at www.sanmateomidstream.com.
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. "Forward-looking statements" are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "could," "believe," "would," "anticipate," "intend," "estimate," "expect," "may," "should," "continue," "plan," "predict," "potential," "project," "hypothetical," "forecasted" and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, future liquidity, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, the following risks related to financial and operational performance: general economic conditions; the Company’s ability to execute its business plan, including whether its drilling program is successful; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; its ability to replace reserves and efficiently develop current reserves; costs of operations; delays and other difficulties related to producing oil, natural gas and natural gas liquids; delays and other difficulties related to regulatory and governmental approvals and restrictions; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; availability of sufficient capital to execute its business plan, including from future cash flows, increases in its borrowing base and otherwise; weather and environmental conditions; the impact of the worldwide spread of the novel coronavirus, or COVID-19, on oil and natural gas demand, oil and natural gas prices and our business; the operating results of the Company’s midstream joint venture’s expansion of the Black River cryogenic processing plant, including the timing of the further expansion of such plant; the timing and operating results of the buildout by the Company’s midstream joint venture of oil, natural gas and water gathering and transportation systems and the drilling of any additional salt water disposal wells, including in conjunction with the expansion of the midstream joint venture’s services and assets into new areas in Eddy County, New Mexico; and other important factors which could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. For further discussions of risks and uncertainties, you should refer to Matador’s filings with the Securities and Exchange Commission ("SEC"), including the "Risk Factors" section of Matador’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Matador undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the SEC. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
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