MTDR: Scaling San Mateo with Cardinal—Enhancing Connectivity and Strategic Optionality

Research evidence excerpt

MTDR: Scaling San Mateo with Cardinal—Enhancing Connectivity and Strategic Optionality

Equity Research

Flash Comment — June 29, 2026

Exploration & Production

Matador Resources Company

Scaling San Mateo with Cardinal—Enhancing Connectivity Equal Weight

and Strategic Optionality Price Target: $63.00

Ticker MTDR

Our Call Upside/(Downside) to Target 25.0%

We view the Cardinal acquisition as a strategically sound, midstream-funded bolt-on that Price (06/29/2026) $50.41

scales San Mateo, enhances flow assurance, and increases 3rd-party exposure. Key debate 52 Week Range $37.14 - 66.84

shifts to whether added scale accelerates JV monetization potential. Market Cap (MM) $6,225

Source: Company Data, Wells Fargo Securities estimates, and Factset.

Initial Thoughts NA = Not Available, NC = No Change, NE = No Estimate

Transaction Overview. MTDR announced that its 51%-owned San Mateo JV will acquire Hanwen Chang, CFA

Cardinal Midstream’s operating subsidiaries (backed by EnCap Flatrock) for $752mm, Equity Analyst | Wells Fargo Securities, LLC

Hanwen.Chang@wellsfargo.com | 212-214-8017

with expected close by July 31, 2026. The transaction is structured to be cash neutral to

MTDR, with funding primarily at the JV level, limiting parent balance sheet impact while

expanding its integrated midstream platform.

Assets. The acquisition includes a 320 mmcf/d cryogenic processing complex in Loving

County, TX, and ~145 miles of gathering pipelines across West TX and southern Eddy

County, NM. Assets enhance connectivity across San Mateo’s system, lifting pro forma

gas processing capacity to >1 bcf/d and expanding gathering scale to >800 miles.

Adjusted EBITDA from the Cardinal assets is expected to increase to up to $110mm/yr by