Matador Resources Forges Midstream Alliance with Energy Transfer

Matador Resources has finalized significant agreements with Energy Transfer to enhance its natural gas and natural gas liquids (NGL) transportation capabilities. This strategic move, reported by Yahoo Finance, encompasses a fresh partnership for a new natural gas processing facility alongside expanded commitments for pipeline services. The centerpiece of this collaboration is a new dedication from Matador Resources to a substantial processing plant, known as the Marfa natural gas processing plant. This facility, still under construction, is anticipated to commence operations during the fourth quarter of 2024. Matador has committed a fixed volume of its natural gas output to this plant for an initial period of 10 years, ensuring a steady flow of product for processing. Further solidifying their relationship, Matador has also entered into new transportation service agreements for natural gas. These agreements involve substantial volumes of gas, destined for Energy Transfer’s existing pipeline network in the Delaware Basin, beginning in the first quarter of the coming year. These arrangements are designed to facilitate the efficient movement of Matador's gas production to various markets. In addition to natural gas, the two companies have also reached understandings concerning natural gas liquids. Matador Resources has extended its dedication of NGLs to Energy Transfer’s Elk processing plant, also situated in the Delaware Basin, for an additional five years. This extension ensures the continued processing and transportation of NGLs through established infrastructure. These collective agreements are expected to significantly benefit Matador Resources by providing crucial midstream infrastructure for its growing production in the Delaware Basin. The securement of long-term processing and transportation capacity is vital for oil and gas producers, enabling them to bring their products to market effectively and reliably.