Matador signs deal to purchase New Mexico midstream assets
Matador Resources said June 9 it had entered a $75mn deal to acquire a natural gas processing system in New Mexico.
The deal with Summit Midstream Partners will see Matador acquire the Lane Gathering and Processing System. The system, situated in the Eddy and Lea Countries, includes three compressor stations, a 72.4-km gas gathering pipeline network and a 60mn ft3/day cryogenic gas processing plant.
Matador will also assume "certain takeaway capacity" on Summit's Double E pipeline, which is regulated by the US national regulator FERC. The agreement should close in the second quarter of 2022, subject to customary closing conditions.
Joseph Foran, founder and CEO of Matador, said: "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."