A subsidiary of Matador Resources Co.'s midstream joint venture San Mateo Midstream LLC struck a long-term natural gas gathering and processing agreement with an Eddy County, New Mexico-based producer.
With the addition of the agreement, San Mateo Midstream is now contracted to provide firm gathering and processing services for over 200 MMcf/d of gas, according to an Oct. 16 news release. The contracts account for over 80% of the 260-MMcf/d designed inlet capacity of its Black River cryogenic gas processing plant in the Rustler Breaks asset area in Eddy County.
The agreement is not expected to affect Matador's 2018 CapEx guidance for midstream activities of $70 million to $90 million, with the company having already completed an expansion of the Black River plant and other enhancement projects. Matador's estimated CapEx for midstream activities make up 51% of total CapEx for 2018.
Matador is involved in the exploration and production of oil and gas resources in the U.S., focusing on oil and liquids-rich assets in the Delaware Basin of New Mexico and Texas. San Mateo Midstream is a joint venture of subsidiaries of Matador and the private equity firm Five Point Energy LLC.