DALLAS--(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.
For more information, visit San Mateo Midstream, LLC at www.sanmateomidstream.com.
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.
For more information, please visit www.fivepointcp.com.
This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. “Forward-looking statements” are statements related to future, not past, events. Forward-looking statements are based on current expectations and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as “could,” “believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,” “may,” “should,” “continue,” “plan,” “predict,” “potential,” “project,” “hypothetical,” “forecasted” and similar expressions that are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements include, but are not limited to, statements about guidance, projected or forecasted financial and operating results, results in certain basins, objectives, project timing, expectations and intentions and other statements that are not historical facts. Actual results and future events could differ materially from those anticipated in such statements, and such forward-looking statements may not prove to be accurate. These forward-looking statements involve certain risks and uncertainties, including, but not limited to, the following risks related to financial and operational performance: general economic conditions; the Company’s ability to execute its business plan; the timing and operating results of the buildout of the Company’s oil, natural gas and water transportation and gathering systems and other facilities, the ability of the Company to expand its Black River cryogenic processing plant, the timing of such expansion and the operating results thereof; changes in oil, natural gas and natural gas liquids prices and the demand for oil, natural gas and natural gas liquids; the occurrence and timing of actions, including decisions and the issuance of regulations and permits, by state and federal regulatory authorities; costs of operations; availability of sufficient capital to execute its business plan; weather and environmental conditions; and other important factors which could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The Company undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law, including the securities laws of the United States and the rules and regulations of the Securities and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.