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Matador’s Midstream JV Plugs Delaware Capex Hole

Matador Resources Co. (NYSE: MTDR) said Feb. 17 it dished a portion of its Delaware Basin midstream assets to clear the path for production growth in 2017—and it managed to run up the score on the value.Matador and Houston’s Five Point Capital Partners LLC agreed to form a midstream joint venture (JV), called San Mateo Midstream LLC, the companies said. The JV will own, operate and expand Matador’s Delaware midstream assets—though with the Dallas-based company still firmly at the helm.The deal answers two essential questions for Matador: how to jumpstart its capex and what the midstream assets were worth. The company can now hit the gas on drilling activity and even deploy an additional rig in the basin. Five Point said the JV’s implied value at closing will be about a half billion dollars.
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Source: Daily Dose of News

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