Matador Resources Company Announces Completion and Start-up of Expansion of Black River Processing Plant in Rustler Breaks
DALLAS–(BUSINESS WIRE)–Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) and
its midstream affiliate, San Mateo Midstream, LLC (“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 Matador’s Rustler Breaks asset area 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 60 million cubic feet of natural gas per day for a total designed
inlet capacity of 260 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, with the expanded
capacity, is expected to offer processing opportunities for other
producers’ development efforts as well. Prior to this expansion, the
Black River Processing Plant had been full of Matador’s natural gas even
though San Mateo had been operating the plant at approximately 10% above
its designed inlet capacity of 60 million cubic feet of natural gas per
day.
In addition, San Mateo has completed a natural gas liquids (“NGL”)
pipeline connection at the Black River Processing Plant to the NGL
pipeline owned by EPIC Y Grade Pipeline LP. This NGL connection provides
several significant benefits to Matador and other San Mateo customers
compared to trucking the NGLs out of the area. San Mateo’s customers
receive (i) firm NGL takeaway out of the Delaware Basin, (ii) increased
NGL recoveries, (iii) improved pricing realizations through lower
transportation and fractionation (T&F) costs and (iv) increased
optionality through San Mateo’s ability to operate the Black River
Processing Plant in ethane recovery mode, if desired. In addition, San
Mateo expects the NGL connection to lower operating costs at the Black
River Processing Plant and provide operational advantages as
transportation by pipeline rather than by truck reduces operational
risks, such as weather-related interruptions or insufficient trucking
capacity.
Joseph Wm. Foran, Chairman and Chief Executive Officer of Matador, said,
“We are excited to announce that the expansion of the Black River
Processing Plant was completed both on time and on budget. Along with
the addition of the NGL connection, the Black River Processing Plant and
associated residue gas pipeline provide Matador reliable transportation
for its Rustler Breaks natural gas and NGLs out of the basin.
“The Board and I congratulate the members of our midstream team for the
significant value they have created thus far through their efforts and
strong execution, and we also appreciate the support from our San Mateo
joint venture partner, Five Point Energy LLC. These efforts ensure firm
takeaway capacity for Matador’s natural gas and NGLs coming from our
Rustler Breaks and Wolf asset areas, provide reliable transportation for
Matador’s oil production from those asset areas by the third quarter of
2018 and establish core assets for the strategic relationship with a
subsidiary of Plains All American Pipeline, L.P. (NYSE: PAA) announced
earlier this year.”
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, transportation and
blending services, to: Corey Lothamer, San Mateo’s Vice President of
Business Development, at (972) 371-5203 or [email protected].
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 and
East Texas. Additionally, Matador conducts midstream operations,
primarily through its midstream joint venture, San Mateo Midstream, LLC,
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, LLC
San Mateo is a strategic joint venture formed in February 2017 by a
subsidiary of Matador 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, transportation and blending 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 260 million cubic feet of natural gas per day and six
commercial salt water disposal wells in Eddy County, New Mexico and
Loving County, Texas. 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, LLC 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, results in certain basins, objectives, project
timing, expectations and intentions 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 operating results of the Company’s
midstream joint venture’s expansion of the Black River cryogenic
processing 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; 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 and
does not intend 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.
Contacts
Matador Resources Company
Mac Schmitz, 972-371-5225
Capital
Markets Coordinator
[email protected]