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 info@sanmateomidstream.com.
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.
For more information, visit Matador Resources Company at
www.matadorresources.com.
About San Mateo Midstream, LLC
San Mateo is a strategic joint venture formed in February 2017
by a subsidiary of Matador 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 six 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.
For more information, visit San Mateo Midstream, LLC at
www.sanmateomidstream.com.
Forward-Looking Statements
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, results in certain basins, objectives, project
timing, expectations and intentions 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 operating results of the Company’s
midstream joint venture’s expansion of the Black River cryogenic
processing 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; 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 and does not
intend 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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version on businesswire.com: https://www.businesswire.com/news/home/20180419006423/en/
Matador Resources CompanyMac Schmitz, 972-371-5225Capital
Markets Coordinatorinvestors@matadorresources.com
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