en.Wedoany.com Reported - Matador Resources announced Monday that its joint venture, San Mateo Midstream, has agreed to acquire the operating subsidiaries of Cardinal Midstream Partners for a total of $752 million in cash. The deal reflects ongoing consolidation in the U.S. energy sector, as producers and midstream operators expand infrastructure and scale to address rising shale oil production and growing demand for liquefied natural gas exports.

Cardinal's assets include a natural gas cryogenic processing facility in Loving County, Texas, with a daily capacity of 320 million cubic feet, and approximately 145 miles of natural gas gathering pipelines in West Texas and Eddy County, southern New Mexico. These assets are located in the Delaware Basin, one of the major shale oil-producing regions in the United States.

Matador previously acquired 5,154 acres of undeveloped land in the Delaware Basin of southeastern New Mexico for $1.1 billion, and this latest acquisition further solidifies its position in the high-yield shale area. The transaction is expected to close on July 31, after which San Mateo's daily processing capacity will increase to over 1 billion cubic feet, its gathering system pipeline network will expand to more than 800 miles, and it will gain new customers.

San Mateo Midstream is a joint venture between Matador (holding a 51% stake) and private equity firm Five Point Infrastructure. The company plans to partially fund the acquisition with up to $650 million in new loans under its credit facility.

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