San Mateo said the assets complement its existing gathering and processing system and will improve natural gas flow across the northern Delaware basin in southeast New Mexico and West Texas. The acquisition is expected to increase San Mateo’s designed processing capacity to more than 1 bcfd and expand its gathering network to more than 800 miles.
Integration of the systems is expected to provide immediate operating synergies, including the ability to move volumes between Cardinal’s Loving County plant and San Mateo’s Marlan and Black River plants in Eddy County.
“With this acquisition, San Mateo not only gains more processing capacity, a larger pipeline system and a more diverse customer base but also improves its positioning for strategic transactions in the future,” said Brian J. Willey, San Mateo chairman and executive vice-president of midstream for Matador.
Willey added that connecting the systems will “complete the circle” of San Mateo’s Delaware basin infrastructure, enhancing flow assurance for Matador and third‑party customers and improving flexibility to move natural gas throughout the northern Delaware basin north to south or south to north.
The transaction is expected to close on or before July 31, 2026, subject to customary conditions. Cardinal’s field employees are expected to join San Mateo upon closing.
