Five Point Energy of Houston and Matador Resources of Houston are partnering to form San Mateo Midstream II LLC. This will allow their customers to move more crude oil, natural gas and produced water on the New Mexico side of the Permian Basin.
"The Delaware remains one of the most promising producing basins in North America, yet it lacks sufficient permanent 'in-basin' midstream infrastructure," Five Point Energy CEO David Capobianco said in a statement.
The joint partnership plans to process 200 million cubic feet of natural gas per day, by building a cryogenic natural gas plant near Carlsbad, New Mexico. There are also plans to build two saltwater disposal wells and pipelines to move crude oil, natural gas and produced water from remote wells to nearby storage tanks.
San Mateo Midstream II is the second joint venture between Five Point Energy and Matador Resources. Matador Resources will own 51 percent of San Mateo Midstream II and Five Point will own 49 percent. The companies already launched San Mateo Midstream I LLC in Feb. 2017 to build pipelines and other infrastructure in Eddy County, New Mexico and Loving County, Texas.