San Mateo Midstream, LLC Announces Completion and Start-up of Expansion of Black River Processing Plant in Eddy County, NM

April 19, 2018

DALLAS–(BUSINESS WIRE)–San Mateo Midstream, LLC (“San Mateo” or the “Company”) today announced
the completion and successful start-up of the expansion of the Black
River cryogenic natural gas processing plant (the “Black River
Processing Plant”) 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 will
support San Mateo’s anchor tenant, Matador Resources Company (NYSE:
MTDR), and offer processing opportunities for other producers’
development efforts in the Delaware Basin. San Mateo has also 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 San Mateo’s
customers as 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.

Matt Spicer, Vice President and General Manager of San Mateo, said, “We
are excited to announce that the expansion of the Black River Processing
Plant was completed both on time and on budget. The expanded Black River
Processing Plant provides producers in the area takeaway and processing
for their natural gas production. Along with the addition of the NGL
connection, the Black River Processing Plant and associated residue gas
pipeline provide producers reliable transportation for natural gas and
NGLs out of the basin. As a result of the strong execution of the entire
San Mateo team, we believe we have generated significant value for our
stakeholders and an attractive natural gas processing option for
producers in the area.”

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, Vice President of Business Development, at (972)
371-5203 or [email protected].

About San Mateo Midstream, LLC

San Mateo Midstream, LLC is a strategic joint venture formed in February
2017 by a subsidiary of Matador Resources Company (NYSE: MTDR) 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; the timing of the buildout and the
operating results of the Company’s oil, natural gas and water
transportation and gathering systems and other facilities; changes in
oil, natural gas and natural gas liquids prices and the demand for oil,
natural gas and natural gas liquids; the occurrence and timing of
actions, including decisions and the issuance of regulations and
permits, by state and federal regulatory authorities; costs of
operations; availability of sufficient capital to execute its business
plan; weather and environmental conditions; and other important factors
which could cause actual results to differ materially from those
anticipated or implied in the forward-looking statements. The Company
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. 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.