San Mateo Midstream, LLC Announces Completion of Crude Oil Pipeline System in New Mexico
DALLAS, Texas – December 19, 2018 – San Mateo Midstream, LLC (“San Mateo”) today announced that its wholly-owned subsidiary, San Mateo Black River Oil Pipeline, LLC, has placed into service its crude oil gathering and transportation system in Eddy County, New Mexico (the “Rustler Breaks Pipeline System”) following a successful open season to gauge shipper interest in committed crude oil interstate transportation service on the Rustler Breaks Pipeline System earlier this year. The Rustler Breaks Pipeline System includes approximately 17 miles of 10-inch diameter crude oil gathering and transportation pipelines from origin points in Eddy County, New Mexico to an interconnect with Plains Pipeline, L.P.
As previously announced on January 22, 2018, San Mateo and a subsidiary of Plains All American Pipeline, L.P. (NYSE: PAA) (“Plains”) have entered into a strategic relationship 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. The completion of the Rustler Breaks Pipeline System is an important step in this strategic relationship as oil has begun flowing from the wellhead in Eddy County, New Mexico to Midland, Texas through a connection with Plains. The Rustler Breaks Pipeline System is sufficient to support growing volumes from its anchor customer, Matador Resources Company, and other producers without significant additional capital investment.
Matt Spicer, Senior Vice President and General Manager of San Mateo, said, “Placing the Rustler Breaks Pipeline System into service completes San Mateo’s goal of being a full-service midstream solution for producers in the northern Delaware Basin. San Mateo is now able to offer services across all three production streams—crude oil, natural gas and produced water. Gathering and transporting crude oil through the Rustler Breaks Pipeline System offers significant cost savings and flow assurance for producers as compared to transporting crude oil by truck. We look forward to continuing to provide best-in-class service as we add value and reliability for our customers.”
Please direct any commercial inquiries about the Rustler Breaks Pipeline System or San Mateo’s other natural gas and water services in Eddy County, New Mexico and Loving County, Texas to Corey Lothamer, Vice President of Business Development, at (972) 371-5203 or email@example.com.
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 Energy LLC. San Mateo provides an all-inclusive approach to midstream services for the three main product streams produced by oil and natural gas activities, including salt water gathering and disposal services, natural gas gathering, compression, treating and processing services, and oil gathering, transportation and blending services. San Mateo owns and operates oil, natural gas and water gathering and transportation systems in Eddy County, New Mexico and Loving County, Texas, the Black River Processing Plant in Eddy County, New Mexico with a designed inlet capacity of 260 million cubic feet of natural gas per day and eight commercial salt water disposal wells in Eddy County, New Mexico and Loving County, Texas. San Mateo serves as one of the primary midstream solutions for multiple customers across the northern Delaware Basin, including its anchor customer, Matador Resources Company.
For more information, visit San Mateo Midstream, LLC at www.sanmateomidstream.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; San Mateo’s ability to execute its business plan; the timing and operating results of the buildout of San Mateo’s oil, natural gas and water transportation and gathering systems and other facilities, 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. San Mateo undertakes no obligation to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by law. 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.
Vice President and Treasurer