[Context:On January 22, Five Point Capital-backed and Matador Resources-backed San Mateo Midstream announced an agreement with Plains All American Pipeline to provide crude thatering and transport in the northern Delaware Basin in the Permian. Further details and related links are below.]

San Mateo Midstream | Five Point Capital

San Mateo Midstream, LLC Announces Strategic Relationship with Plains All American Pipeline in Eddy County, NM

DALLAS–January 22–(BUSINESS WIRE)–San Mateo Midstream, LLC (“San Mateo” or the “Company”) today announced a strategic relationship with a subsidiary of Plains All American Pipeline, L.P. (NYSE: PAA) (“Plains”) to gather and transport crude oil for upstream producers in Eddy County, New Mexico. Subsidiaries of San Mateo and Plains have agreed to work together through a Joint Tariff arrangement and related transactions to offer producers located within a joint development area of approximately 400,000 acres in Eddy County, New Mexico (the “Joint Development Area”) crude oil transportation services from the wellhead to Midland, Texas with access to other end markets.

In order to transport crude oil from the Joint Development Area to Midland or other end markets, Plains intends to construct a mainline extension from its current long-haul oil pipeline system located in Culberson County, Texas to a central delivery point on San Mateo’s crude oil pipeline system, which is currently under construction in Eddy County, New Mexico. San Mateo expects construction will be complete in the second quarter or early in the third quarter of 2018. In addition, San Mateo will be able to accept crude oil onto its system from trucks near the city of Loving, New Mexico. This crude oil trucking station will provide producers in the area whose oil is not yet connected to pipe at the wellhead a favorable option to transport oil to Midland and other end markets. The crude oil will be shipped under a Joint Tariff that will be filed with the Federal Energy Regulatory Commission (FERC) prior to the oil transportation pipeline being placed into service. San Mateo expects to benefit from Plains’ extensive midstream asset footprint, long-term customer relationships and outstanding reputation for oil gathering and transportation services. This strategic relationship is a milestone for San Mateo as it broadens its portfolio to offer services across all three production streams-oil transportation and gathering, natural gas gathering and processing and salt water gathering and disposal.

Matt Spicer, Vice President and General Manager of San Mateo, said, “We are excited to announce this strategic relationship between San Mateo and Plains, and we look forward to working with Plains to provide crude oil transportation services to producers throughout a large portion of Eddy County, New Mexico. Not only does this relationship open up additional market opportunities for both San Mateo and Plains through each company’s extensive midstream relationships, but it also demonstrates San Mateo’s commitment to serving the area and expanding its platform for generating value for customers by providing services across all three production streams-oil, natural gas and water. The value of this relationship with Plains is significant to producers, providing them with increased oil market optionality, flow assurance and takeaway capacity out of the Delaware Basin with one of the most experienced and reputable transportation companies in the business.”

Willie Chiang, Chief Operating Officer – Americas for Plains, said, “The Plains team is excited about this win/win opportunity with San Mateo Midstream and looks forward to expanding on the asset footprints of San Mateo’s gathering system and Plains’ trunk line system. Both companies are positioned well to build upon their prior successes in this part of the Delaware Basin, and we are pleased about extending our relationship through this strategic arrangement.”

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 Capital Partners LLC. San Mateo provides midstream transportation, gathering, processing and disposal services in Eddy County, New Mexico and Loving County, Texas. San Mateo serves as the primary midstream solution for its anchor customer, Matador Resources Company, and provides midstream services to other producers in the Delaware Basin.

About Five Point Capital

Five Point Capital Partners is a private equity firm focused on midstream energy infrastructure and energy sector investments across North America. Five Point’s investment strategy is to partner with leading E&P Companies to build and develop midstream infrastructure to support E&P partner drilling programs, as well as to develop and support strong management teams through buyouts, growth capital and greenfield investments within the midstream energy sector. Based in Houston, Texas, Five Point has over $1.2 billion of capital under management.

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