San Mateo Midstream, LLC Announces Completion and Start-Up of Expansion of Black River Processing Plant in Eddy County, NM
DALLAS, Texas, April 19, 2018 – San Mateo Midstream, LLC (“San Mateo” or the “Company”) today announced the completion and successful start-up of the expansion of the Black River cryogenic natural gas processing plant (the “Black River Processing Plant”) in Eddy County, New Mexico. The expansion of the Black River Processing Plant adds an incremental designed inlet capacity of 200 million cubic feet of natural gas per day to the previously existing designed inlet capacity of 60 million cubic feet of natural gas per day for a total designed inlet capacity of 260 million cubic feet of natural gas per day. The expanded Black River Processing Plant will support San Mateo’s anchor tenant, Matador Resources Company (NYSE: MTDR), and offer processing opportunities for other producers’ development efforts in the Delaware Basin. San Mateo has also completed a natural gas liquids (“NGL”) pipeline connection at the Black River Processing Plant to the NGL pipeline owned by EPIC Y Grade Pipeline LP. This NGL connection provides several significant benefits to San Mateo’s customers as compared to trucking the NGLs out of the area. San Mateo’s customers receive (i) firm NGL takeaway out of the Delaware Basin, (ii) increased NGL recoveries, (iii) improved pricing realizations through lower transportation and fractionation (T&F) costs and (iv) increased optionality through the ability to operate the Black River Processing Plant in ethane recovery mode, if desired. In addition, San Mateo expects the NGL connection to lower operating costs at the Black River Processing Plant and provide operational advantages as transportation by pipeline rather than by truck reduces operational risks, such as weather-related interruptions or insufficient trucking capacity.