Matador, Five Point Capital Partners form joint venture
A wholly owned subsidiary of Five Point Capital Partners and Matador Resources announced the formation of San Mateo Midstream 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. The implied value of the Midstream Assets and the associated gathering, processing and disposal agreements entered into with Matador was approximately $500M at closing, after taking into account performance incentives. Funding for the JV includes an initial cash consideration of $176.4M by Five Point and certain of its co-investors, with a subsidiary of Matador contributing the Midstream Assets. The parties to the JV have also committed to spend up to an additional $150M in aggregate to expand the JV's midstream operations and asset base.