In connection with the transaction, the Company will assume certain takeaway capacity on the Double E Pipeline
Matador Resources announces strategic acquisition of midstream assets in Eddy and Lea Counties, New Mexico. (Credit: Business Wire)
Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”) today announced that one of its wholly-owned subsidiaries has entered into a definitive agreement with a wholly-owned subsidiary of Summit Midstream Partners, LP (“Summit”) to acquire Summit’s Lane Gathering and Processing System (the “Lane G&P System”) in Eddy and Lea Counties, New Mexico for $75 million, subject to customary transaction adjustments. In connection with the transaction, the Company will assume certain takeaway capacity on the Double E Pipeline, a FERC-regulated natural gas pipeline operated by Summit. The acquisition is subject to customary closing conditions and is expected to close in the second quarter of 2022.
Joseph Wm. Foran, Matador’s Founder, Chairman and Chief Executive Officer, said, “We are excited to announce this strategic acquisition of the Lane G&P System, which includes a 60 million cubic feet per day cryogenic natural gas processing plant, three compressor stations and approximately 45 miles of natural gas gathering pipelines. This acquisition is a further extension of our strategy to control our midstream operations and to use our midstream assets to further enhance and assist our operations. To accomplish this, we expect to expand the Lane G&P System to support our environmental, safety, exploration and production efforts in northern Eddy and Lea Counties, New Mexico. We are also pleased to acquire additional takeaway capacity from the Delaware Basin to ensure our and our third-party customers’ natural gas is transported to market. We thank both the Summit and Matador teams for their diligence in negotiating this transaction and look forward to closing later this month.”
Source: Company Press Release