Porter Hedges represented Five Point Capital Partners LLC (“Five Point”) in the recently-announced formation of San Mateo Midstream, LLC (“JV”) with Matador Resources Company (NYSE: MTDR) (“Matador”) to own, operate and expand natural gas, crude oil, and produced water midstream assets in the Delaware Basin, including Matador’s midstream assets in Eddy County, New Mexico and Loving County, Texas. At formation, Five Point and Matador owned 49% and 51% of the JV, respectively, with Matador’s midstream team continuing to operate the Midstream Assets.
According to the press release by the parties, the implied value of the Midstream Assets and associated gathering, processing and disposal agreements, after taking into account performance incentives, was approximately $500 million at closing.
The JV’s existing assets will continue to provide firm capacity service to Matador and the JV will build out additional oil, NGL, gas and water infrastructure to support the needs of Matador and third party customers in and around Matador’s Rustler Breaks and Wolf assets. The JV expects to expand the Black River Cryogenic Processing Plant in Matador’s Rustler Breaks asset area from its current inlet capacity of 60 million cubic feet of natural gas per day to as much as 260 million cubic feet of natural gas per day.
Founded in 2011, Houston-based Five Point Capital Partners is a private equity firm focused on midstream energy infrastructure and energy sector investments across North America.
Matador is a Dallas-based 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.
The Porter Hedges team included Randy King, Jonathan Castelan, Denny Ng and David Mann. Porter Hedges served as co-counsel for Five Point with Skadden.
For additional information, please see the Five Point press release here.