Matador's Midstream Arm Buys Cardinal for $752M

San Mateo Midstream's $752M Cardinal buy pushes Delaware Basin gas capacity past 1 billion cubic feet daily

13 Jul 2026

San Mateo Midstream agreed on June 29 to acquire the operating subsidiaries of Cardinal Midstream for $752mn in cash, extending its reach across the Delaware Basin. The deal, backed by a joint venture between Matador Resources and Five Point Infrastructure, lifts San Mateo's gathering and processing capacity above 1bn cubic feet a day. Its pipeline network will now run past 800 miles, giving it one of the larger footprints among gatherers in the region.

For producers operating in the basin, the expanded system offers access to a single, well-capitalized operator with room to absorb rising output. A larger network also strengthens San Mateo's position when negotiating long-term contracts with outside customers seeking guaranteed flow capacity.

Joseph Wm. Foran, founder, chairman and chief executive of Matador, described the purchase as part of a longer strategic arc. "We believe the acquisition, which is being funded by midstream, is the next step in the growth of San Mateo and a continuation of the strategic vision Matador and Five Point share for our joint midstream business to be a leading midstream company in the Delaware Basin, providing flow assurance to Matador and third-party customers," he said. Because the transaction is funded entirely through midstream capital, Matador's own balance sheet remains untouched by the acquisition.

Matador holds 51 per cent of San Mateo, keeping control of strategic decisions as the venture grows. Five Point contributes midstream-focused capital expertise that has helped finance deals of this size before. Together, the partners are pitching San Mateo as a rival to larger standalone pipeline operators across the wider Permian Basin.

What happens next will test that ambition. The combined asset base gives San Mateo room for further organic growth, and potentially for further acquisitions, as competition across Delaware Basin gathering and processing intensifies. Customers and rival operators alike will be watching how quickly Cardinal's operations are folded into the network, and what that integration reveals about San Mateo's broader plans for the basin.