San Mateo Midstream to acquire Cardinal Midstream for $752 million

M&A · PartnershipCommodity
โดย Business Wire·Read original
Summary · why it matters

San Mateo Midstream has agreed to acquire the operating subsidiaries of Cardinal Midstream Partners for $752 million in cash. The deal, expected to close by July 31, 2026, will add a cryogenic natural gas processing plant in Loving County, Texas with 320 million cubic feet per day of capacity and about 145 miles of gathering pipelines. The acquisition is projected to boost San Mateo's total processing capacity to over one billion cubic feet per day and expand its pipeline network to more than 800 miles. San Mateo expects the Cardinal assets to be immediately accretive to Adjusted EBITDA and cash flows, with annualized Adjusted EBITDA from the assets potentially reaching $110 million by 2028. The purchase will be financed partly through a new $650 million term loan led by PNC Bank and Truist Bank, with the remainder from cash on hand, existing credit facility borrowings, and partner capital contributions.

Impact on stocks 3

Financials▲ · 2 stocks
Truist Financial Corp
TFC
▲ PositiveCapitalrelevance

Truist Bank is co-leading a $650 million term loan to finance the acquisition, generating fee income.

Energy▲ · 1 stocks
Matador Resources Company
MTDR
▲ PositiveDemandrelevance

Matador Resources is a customer of San Mateo Midstream; expanded processing capacity benefits Matador's natural gas production.

Off-coverage companies 2

Cardinal Midstream PartnersPrivate▲ Positive
Capitalrelevance

Acquired at a premium, providing exit for investors.

San Mateo MidstreamPrivate▲ Positive
Capitalrelevance

Acquisition expected to be immediately accretive to Adjusted EBITDA and cash flows.

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