San Mateo to acquire Cardinal Midstream for $752 million, expanding Delaware Basin footprint

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

San Mateo Midstream, the 51%-owned joint venture of Matador Resources, has agreed to acquire the operating subsidiaries of Cardinal Midstream Partners for $752 million in cash. The deal adds a cryogenic natural gas processing plant in Loving County, Texas with 320 million cubic feet per day of inlet capacity and about 145 miles of gathering pipelines, bringing San Mateo's total designed processing capacity to over one billion cubic feet per day and its gathering systems to more than 800 miles. Nine of Cardinal's customers are new to San Mateo, and the combined system is expected to provide immediate synergies and enhanced flow assurance across the northern Delaware Basin. San Mateo expects the assets to be immediately accretive to adjusted EBITDA and cash flows, with annualized adjusted EBITDA from the Cardinal assets projected to reach up to $110 million by 2028. The transaction, expected to close by July 31, 2026, 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, borrowings, and partner contributions; Matador anticipates its portion to be cash neutral, funded by San Mateo distributions or proceeds from potential midstream asset sales.

Impact on stocks 3

Financials▲ · 2 stocks
Truist Financial Corp
TFC
▲ PositiveCapitalrelevance

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

Energy▲ · 1 stocks
Matador Resources Company
MTDR
▲ PositiveCapitalrelevance

Matador's JV San Mateo acquires Cardinal Midstream for $752M, expected to be immediately accretive to EBITDA and cash flows, with Matador's portion cash neutral.

Off-coverage companies 1

Cardinal Midstream PartnersPrivate▲ Positive
Capitalrelevance

Cardinal Midstream is being acquired for $752M, providing an exit for its owners.

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