Matador Resources Co. (Matador) has acquired Summit Midstream Partners’ (Summit) Lane Gathering and Processing System (Lane G&P System) in Eddy and Lea Counties, New Mexico. The US$75 million deal includes a 60 MMcf/d (1.6 x 106 m3/d) cryogenic natural gas processing plant, three compressor stations, and approximately 45 miles (72 km) of natural gas gathering pipelines. In connection with the transaction, the Matador will assume certain takeaway capacity on the Double E Pipeline, a FERC-regulated natural gas pipeline operated by Summit.
“We are excited to announce this strategic acquisition of the Lane G&P System,” said Joseph Wm. Foran, Matador’s founder, chair, and CEO. “We expect to expand the Lane G&P System to support our environmental, safety, exploration, and production efforts in northern Eddy and Lea Counties, New Mexico. We are also pleased to acquire additional takeaway capacity from the Delaware Basin to ensure our and our third-party customers’ natural gas is transported to market.”
Headquartered in Dallas, Matador is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana.
