The transaction provides San Mateo, a joint venture between Matador Resources and Five Point Infrastructure, a strategic foothold in southeastern New Mexico and western Texas. By incorporating Cardinal’s assets, the company pushes its total natural gas processing capacity beyond one billion cubic feet per day while extending its pipeline network to over 800 miles. Matador expects the purchase to remain cash neutral for the joint venture.

To fund the expansion, San Mateo is securing a new term loan of up to $650 million under its current credit facility. Joseph Wm. Foran, chief executive of Matador, noted that the deal aligns with the firm’s long-term objective to establish a dominant midstream presence in the region, ensuring consistent flow for both internal operations and third-party customers.