San Mateo Midstream Acquires Cardinal Midstream Subsidiaries for $752M

The Facts -

San Mateo Midstream Expands with $752 Million Acquisition

San Mateo Midstream, LLC, a joint venture between Matador Resources Company and Five Point Infrastructure, has announced a significant expansion within the Delaware Basin. The company has entered into a definitive agreement to acquire Cardinal Midstream Partners, LLC for $752 million, a deal expected to close by July 31, 2026.

Dallas-based law firm O’Melveny & Myers LLP provided legal counsel to San Mateo during this transaction, led by partner Jason Schumacher and his team. The acquisition promises to enhance San Mateo's midstream capabilities, increasing natural gas processing capacity and pipeline coverage throughout southeast New Mexico and West Texas.

Key Advantages of the Acquisition

The acquisition of Cardinal Midstream brings several strategic advantages:

• Complementary Assets: Cardinal’s facilities include a cryogenic natural gas processing complex in Texas and an extensive pipeline network. These will integrate with San Mateo’s existing infrastructure, providing enhanced flexibility and flow assurance.
• Customer Expansion: San Mateo will gain new customers from Cardinal’s existing base, thereby increasing its market reach and revenue potential.
• Increased Capacity: The transaction will elevate San Mateo’s gas processing capability beyond one billion cubic feet per day and expand the pipeline system to over 800 miles.
• Financial Growth: San Mateo anticipates immediate positive impacts on adjusted EBITDA and cash flows, estimating up to $110 million in annualized EBITDA growth by 2028.

Financing and Strategic Outlook

To fund the acquisition, San Mateo plans to secure a new term loan of up to $650 million, led by PNC Bank and Truist Bank. The financing strategy also involves cash reserves and contributions from existing partners.

Brian J. Willey, Chairman of San Mateo, highlighted the acquisition's role in enhancing San Mateo's market position and infrastructure capabilities in the Delaware Basin. He expressed gratitude to financial partners and stakeholders for their support.

Legal Counsel and Advisory

The acquisition was supported by legal advisors from Baker Botts L.L.P. and O’Melveny & Myers LLP for San Mateo, and Willkie Farr & Gallagher LLP for Cardinal. This collaboration underscores the strategic importance of the transaction within the industry.

About the Companies

San Mateo Midstream, LLC is a leading midstream company in the Delaware Basin, providing comprehensive services in natural gas, oil, and water management. Visit their website for more information: www.sanmateomidstream.com.

Matador Resources Company focuses on oil and natural gas exploration in the United States. More details can be found at www.matadorresources.com.

Five Point Infrastructure is a private equity firm investing in North American infrastructure. More information is available at www.fpinfra.com.

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