Matador Resources Company (“Matador” or the “Company”) today
announced that a wholly-owned subsidiary of its midstream joint
venture, San Mateo Midstream, LLC (“San Mateo”), has 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. The agreement includes 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 has started drilling its fourth
commercial salt water disposal well in Eddy County, New Mexico and
expects to begin drilling a fifth commercial salt water disposal
well in Eddy County, New Mexico later in the second quarter or
early in the third quarter of 2018. Upon completion of these
additional salt water disposal wells, San Mateo expects to have
total salt water disposal capacity in excess of 230,000 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 the agreement announced above as well as expected volumes from
San Mateo’s other contracted producers in Eddy County, New Mexico
and Loving County, Texas.
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “Our
midstream team, San Mateo, continues to drive value for Matador’s
shareholders. Earlier this year, the midstream team completed the
expansion of its Black River Processing Plant on time and on budget
and entered into a strategic relationship with a subsidiary of
Plains All American Pipeline, L.P. relating to the transportation
of oil. This new agreement further diversifies San Mateo’s customer
base and the additional expansion of its salt water disposal
capacity will continue to allow San Mateo to generate value across
all three production streams—oil, natural gas and salt water—for
producers in Eddy County, New Mexico and Loving County, Texas. The
Board and I congratulate the midstream team, and we look forward to
continuing to work together with our joint venture partner, Five
Point Energy LLC, in establishing San Mateo as a premier midstream
company in the northern Delaware Basin.”
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, 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 Midstream, LLC 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, 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 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/20180614005275/en/
Matador Resources CompanyMac Schmitz, 972-371-5225Capital
Markets Coordinatorinvestors@matadorresources.com
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