News | September 1, 2020

San Mateo Midstream Announces Completion And Start-Up Of Black River Processing Plant Expansion In Eddy County, New Mexico

DALLAS--(BUSINESS WIRE)--

San Mateo Midstream (“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 260 million cubic feet of natural gas per day for a total designed inlet capacity of 460 million cubic feet of natural gas per day. The expanded Black River Processing Plant supports San Mateo’s anchor customer, Matador Resources Company (NYSE: MTDR), and offers processing opportunities for other producers’ development efforts in the Delaware Basin. Consistent with existing arrangements, San Mateo’s customers may access firm transportation via pipeline and fractionation for all natural gas liquids (“NGL”) and firm transportation via pipeline for all residue natural gas volumes delivered at the tailgate of the Black River Processing Plant, including those volumes attributable to the newly increased inlet capacity.

San Mateo is currently completing construction of approximately 24 miles of large diameter natural gas gathering pipelines between the Black River Processing Plant and the New Mexico and Texas state line in southeastern Eddy County. The Company is also completing construction of approximately 19 miles of large diameter natural gas gathering pipelines northward from the Black River Processing Plant, as well as 19 miles of various diameter crude oil pipelines from certain points of origin in Eddy County to the existing San Mateo interconnect with Plains Pipeline, L.P. in Eddy County (see San Mateo’s August 6, 2020 press release). These various pipelines are expected to be placed in service at various times from early to mid-September 2020. These new pipelines, along with the expansion of the Black River Processing Plant, substantially increase the footprint of San Mateo’s three-pipe midstream services offering throughout Eddy County.

Matt Spicer, Co-Chief Operating Officer of San Mateo, commented, “We are excited to announce that this most recent expansion of the Black River Processing Plant, which was initiated in February 2019, has been completed on time and on budget. The expanded Black River Processing Plant and the associated pipeline connections provided by San Mateo provide producers in the area reliable transportation and processing for their 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 transportation and processing option for producers throughout much of Eddy County. We wish to acknowledge and thank both Matador Resources Company and Five Point Energy LLC for their support and encouragement during the construction of this expansion of the Black River Processing Plant and the related infrastructure.”

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 and transportation services, to:

Matt Spicer, Co-Chief Operating Officer, at (972) 371-5420, Corey Lothamer, Vice President of Business Development, at (972) 587-4635 or info@sanmateomidstream.com.

About San Mateo Midstream

San Mateo Midstream 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 and transportation 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 460 million cubic feet of natural gas per day and thirteen commercial salt water disposal wells in Eddy County, New Mexico and Loving County, Texas, with a combined salt water disposal capacity of 335,000 barrels per day. 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 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, future liquidity, results in certain basins, objectives, project timing, expectations and intentions, regulatory and governmental actions 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 impact of the worldwide spread of the novel coronavirus, or COVID-19, on oil and natural gas demand and the Company’s business; 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.


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