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 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. 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.
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, 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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Mac Schmitz Capital Markets Coordinator (972) 371-5225
investors@matadorresources.com
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