Two years after agreeing to expand midstream operations in the Permian Basin’s Delaware formation, subsidiaries of Matador Resources Co. and private equity Five Point Energy LLC agreed to a second partnership that would nearly double processing capacity with a cryogenic natural gas processing plant in New Mexico.
Articles from Matador
Because of the “changing financial circumstances” brought about by volatile oil prices, Dallas-based independent Matador Resources Co. said Wednesday it will reduce its drilling program in the Eagle Ford Shale and consider selling some assets, including in South Texas and the Haynesville Shale.
Dallas-based Pioneer Natural Resources Co. has agreed to sell all of its Raton Basin assets in southeastern Colorado, including natural gas wells and infrastructure, to Evergreen Natural Resources LLC for $79 million. Net production from the assets averaged 84 MMcf/d (14,000 boe/d) in 1Q2018, almost all natural gas. The transaction is expected to close by the end of July. The sale is expected to result in a pre-tax noncash loss of $65-75 million in 2Q2018.
Dallas-based independent Matador Resources Co. has joined several Permian Basin peers in securing better takeaway terms for its natural gas production.
Matador Resources Co.’s majority-owned San Mateo Midstream LLC and Plains All American Pipeline LP are teaming up to transport crude oil from the Permian Basin in the Rustler Breaks area of Eddy County, NM.
Matador Resources Co. expects a significant increase in oil production this year compared with its 2016 results, thanks in large part to its decision to drill and complete a five-well operated program in the Eagle Ford Shale, the company said Thursday.
Units of Matador Resources Co. and private equity firm Five Point Capital Partners LLC have formed joint venture (JV) San Mateo Midstream LLC to operate and expand Matador’s midstream assets in the Permian’s Delaware sub-basin in Eddy County, NM, and Loving County, TX.
Dallas-based Matador Resources Co. flagged initial test results from three Permian Basin wells in Lea County, NM, which in aggregate over 24 hours flowed 7,856 boe/d, consisting of 7,172 b/d of crude and 4.1 MMcf/d of natural gas.
Matador Resources Co. has begun operations at the Black River cryogenic natural gas processing plant that it built in its Rustler Breaks prospect area in the Permian Basin’s Delaware sub-basin of Eddy County, NM. The plant has an inlet capacity of 60 MMcf/d, which is almost twice the size of the plant that Matador built in its Wolf prospect area and subsequently sold to an affiliate of EnLink Midstream LLC (see Shale Daily, Sept. 16, 2015). Matador has also placed in service a 12-inch diameter natural gas gathering line running throughout the length of its Rustler Breaks acreage.
Matador Resources Co. said it plans to scale back its drilling program over the next few months, dropping two rigs deployed in the Eagle Ford Shale in South Texas but keeping three rigs in the Permian Basin in southeast New Mexico and West Texas, a familiar refrain as exploration and production (E&P) companies of all stripes continue to grapple with the collapse in world crude oil prices.