Matador Resources Company: Expanding San Mateo‘s Delaware Basin Footprint with Cardinal Midstream Acquisition

Research evidence excerpt

Matador Resources Company: Expanding San Mateo‘s Delaware Basin Footprint with Cardinal Midstream Acquisition

J P M O R G A N North America Equity Research

29 June 2026

Matador Resources Company Overweight

MTDR, MTDR US

Expanding San Mateo’s Delaware Basin Footprint Price (26 Jun 26):$49.90

with Cardinal Midstream Acquisition

Oil & Gas Exploration & Production

JPM View: This morning, MTDR announced that San Mateo Midstream Arun Jayaram AC

(MTDR’s 51%-owned midstream JV with Five Point) has entered into a definitive (1-212) 622-8541

agreement to acquire Cardinal Midstream Partners, an EnCap portfolio company, arun.jayaram@jpmchase.com

for ~$752mm in cash. The deal, which is expected to close on or before July 31, Pankaj Bhatter, CFA

expands San Mateo's designed natural gas processing capacity to >1 Bcf/d and (1-212) 622-3795

extends its gathering systems to >800 miles of pipeline. Cardinal’s assets include pankaj.bhatter@jpmchase.com

a cryogenic natural gas processing plant complex in Loving County, TX with a Jack Jerusalmi

designed inlet capacity of ~320 MMcf/d and ~145 miles of low-pressure and high- (1-212) 622-6552

jack.jerusalmi@jpmorgan.com

pressure natural gas gathering pipelines located in West Texas and southern Eddy J.P. Morgan Securities LLC

County, NM. The The plant complex sits on ~75 acres with two residue natural gas

takeaway connections and four natural gas liquids takeaway connections,

providing the ability for future processing capacity expansion. In terms of

customer base, MTDR noted that 9 of Cardinal’s natural gas gathering and

processing customers would be new customers for San Mateo, providing a tailwind

to volume throughput and third-party revenue generation.

The combined natural gas system is expected to provide immediate synergies,