Mainline Extension Part of Plains, Matador Resources Strategic Partnership

Matador Resources Company today announced a strategic relationship between a subsidiary of the company’s 51%-owned midstream joint venture, San Mateo Midstream, LLC, and a subsidiary of Plains All American Pipeline, L.P. to gather and transport crude oil in the Rustler Breaks asset area in Eddy County, New Mexico.
Under the terms of the agreement, subsidiaries of San Mateo and Plains have agreed to work together through a Joint Tariff arrangement and related transactions to offer third-party producers located within a joint development area of approximately 400,000 acres in Eddy County, New Mexico crude oil transportation services from the wellhead to Midland, Texas with access to other end markets, such as Cushing and the Gulf Coast. In addition, another Plains’ subsidiary has agreed to purchase Matador’s oil production in the Rustler Breaks asset area and in the Wolf asset area in Loving County, Texas.
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 throughout the Rustler Breaks asset area near Carlsbad, New Mexico. Construction on the mainline extension is expected to be completed no later than early in the third quarter of 2018.
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