[Context: On June 14, San Mateo Midstream, a joint venture between Five Point Capital-and Matador Resources (NYSE: MTDR), announced a salt water gathering and disposal agreement with Marathon Oil (NYSE: MRO) in Eddy County, New Mexico. Further details and related links are below.]
San Mateo Midstream, LLC Announces Execution of Salt Water Gathering and Disposal Agreement
DALLAS–June 14, 2018 –(BUSINESS WIRE)–San Mateo Midstream, LLC (“San Mateo”) today announced that its wholly-owned subsidiary, Black River Water Management Company, LLC (“Black River”), has entered into a long-term agreement with a wholly-owned subsidiary of Marathon Oil Corporation (“Marathon Oil”) in Eddy County, New Mexico relating to the gathering and disposal of Marathon Oil’s salt water. The agreement includes the dedication of over 65 wells, which are located within five miles of San Mateo’s existing salt water gathering system in Eddy County, New Mexico.
In addition, San Mateo has started drilling its fourth commercial salt water disposal well in Eddy County, New Mexico and expects to begin drilling a fifth commercial salt water disposal well in Eddy County, New Mexico later in the second quarter or early in the third quarter of 2018. Upon completion of these additional salt water disposal wells, San Mateo expects to have total salt water disposal capacity in excess of 230,000 barrels per day in Eddy County, New Mexico and Loving County, Texas. San Mateo expects to dispose of over 200,000 barrels per day of salt water as early as the first quarter of 2019, which includes expected volumes from the agreement announced above as well as expected volumes from San Mateo’s other contracted producers in Eddy County, New Mexico and Loving County, Texas.
Matt Spicer, Vice President and General Manager of San Mateo, said, “We are pleased to announce that we have entered into this significant contract with Marathon Oil for salt water gathering and disposal in Eddy County, New Mexico. This contract, and others we have entered into in late 2017 and early 2018, have diversified San Mateo’s customer base as we continue to provide first class midstream services to our anchor customer, Matador Resources Company, and to other producers in the area. We pride ourselves on generating value for our customers by providing services across all three production streams-oil, natural gas and salt water-and look forward to continuing to be a full-service midstream solution for producers in the northern Delaware Basin.”
Please direct any commercial inquiries about San Mateo’s salt water gathering and disposal services provided in Eddy County, New Mexico or Loving County, Texas or San Mateo’s other services, including natural gas gathering and processing services and oil gathering, transportation and blending services, to: Corey Lothamer, Vice President of Business Development, at (972) 371-5203 or firstname.lastname@example.org
About San Mateo Midstream, LLC
San Mateo Midstream, LLC 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, transportation and blending 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 260 million cubic feet of natural gas per day and six commercial salt water disposal wells in Eddy County, New Mexico and Loving County, Texas. 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.