First Read: Matador Resources "San Mateo Scales Up With Cardinal Acquisition"

Research evidence excerpt

First Read: Matador Resources "San Mateo Scales Up With Cardinal Acquisition"

Global Research

29 June 2026ab

First Read

EquitiesMatador Resources

San Mateo Scales Up With Cardinal Acquisition United States

Oil Companies, Secondary

12-month rating Neutral *

San Mateo To Acquire Private Delaware Midstream Operator

MTDR announced that its 51% owned midstream subsidiary, San Mateo, acquired 12m price target US$62.00

private equity-backed Cardinal Midstream in a $752mm cash deal. The acquisition adds

further scale to San Mateo, which has been bolstered in recent years through organic

Price (26 Jun 2026) US$49.90

investments, and should create a more flexible and integrated Delaware Basin

midstream entity. For MTDR, we see the deal as an incremental positive if it can help RIC: MTDR.N BBG: MTDR US

drive more value at San Mateo, only offset if it impacts the timing and impact of MTDR's Trading data and key metrics

dropdown of its wholly-owned midstream assets to San Mateo, as its achievement has

52-wk range US$65.45-37.19

been a potential catalyst for the company.

Market cap. US$6.23b

Shares o/s 125m (COM)

Key Highlights Of San Mateo's Cardinal Acquisition:

Free float 92%

Transaction Details. San Mateo will acquire Cardinal Midstream in a $752mm

Avg. daily volume ('000) 546

cash deal that's expected to close by the end of July. Once Cardinal's Loving

County plant is full in 2028, San Mateo estimates that Cardinal will generate Avg. daily value (m) US$31

$110mm in annualized Adj. EBITDA, implying a ~6.8x 2028 EBITDA transaction Common s/h equity (12/26E) US$6.08b

value. This multiple is at a slight discount to recent Delaware midstream M&A that P/BV (12/26E) 1.0x

was valued at 7.0x-8.0x , and to KNTK, who trades at 9.1x on 2028 Street Net debt to EBITDA (12/26E) 1.8x