DALLAS–(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 Collection and Processing System (the “G&P Lane System”) in Eddy and Lea Counties, New Mexico for $75 million, under subject to customary transaction adjustments. As part of the transaction, the Company will assume some transportation 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. A map of the Lane G&P system is included in Appendix A to this press release.
Joseph Wm. Foran, Founder, President and Chief Executive Officer of Matador, said, “We are delighted to announce this strategic acquisition of the Lane G&P system, which includes a 60 million cubic foot cryogenic natural gas processing plant per day, 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 use our midstream assets to further enhance and support our operations. To accomplish this, we plan 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 excited to acquire additional transportation capacity in the Delaware Basin to ensure that our natural gas and that of our third-party customers is transported to market. We thank the Summit and Matador teams for their diligence in negotiating this transaction and look forward to closing later this month. »
About Matador Resources
Matador is an independent energy company engaged in the exploration, development, production, and acquisition of oil and gas resources in the United States, with an emphasis on shale oil and gas and other undisclosed deposits. conventional. Its current operations are primarily focused on the oil and liquids rich portion of the Wolfcamp and Bone Spring areas in the Delaware Basin in southeastern New Mexico and western Texas. Matador also operates in the Eagle Ford shale play in southern Texas and the Haynesville and Cotton Valley shale play in northwest Louisiana. In addition, Matador conducts midstream activities in support of its exploration, development and production activities and provides natural gas processing, oil transportation, natural gas gathering, petroleum and produced water and produced water disposal services to others.
For more information, visit Matador Resources Company at www.matadorresources.com.
This press release contains “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 relating to future and not past events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to current or historical fact. In this context, forward-looking statements often deal with expected future business and financial performance and often contain words such as “may”, “believe”, “would”, “anticipate”, “intend”, “estimate”. , ‘expect’, ‘may’, ‘should’, ‘continue’, ‘plan’, ‘predict’, ‘potential’, ‘project’, ‘hypothetical’, ‘expected’ and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements include, but are not limited to, statements about directions, projected or anticipated financial and operating results, future liquidity, payment of dividends, results in certain pools, objectives, timing of plans, expectations and intentions, regulations and government actions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in these statements, and these 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 relating to financial and operating performance: general economic conditions; the Company’s ability to execute its business plan, including the success of its drilling program; changes in oil, natural gas and natural gas liquids prices and demand for oil, natural gas and natural gas liquids; its ability to replace reserves and effectively develop current reserves; operating costs; delays and other difficulties in the production of oil, natural gas and natural gas liquids; delays and other difficulties relating to regulatory and governmental approvals and restrictions; the impact on the Company’s operations due to seismic events; the availability of sufficient capital to execute its business plan, available borrowing capacity under its revolving credit facilities and otherwise; its ability to make acquisitions on economically acceptable terms; its ability to integrate acquisitions; weather and environmental conditions; the impact of the global spread of the novel coronavirus, or COVID-19, on oil and natural gas demand, oil and natural gas prices and business; the results of operations of the Company’s intermediate joint venture oil, natural gas and water gathering and transportation systems, pipelines and facilities, the acquisition of third-party businesses and the drilling of any disposal wells extra salt water; and other factors that could cause actual results to differ materially from those anticipated or implied by the forward-looking statements. For additional information on 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 latest annual report on Form 10-K and all subsequent quarterly reports on Form 10-Q. Matador undertakes no obligation 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 United States securities laws. and SEC rules and regulations. 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.