Capital Markets | Midstream - Gas Gathering | Private Equity Activity

Five Point-Backed San Mateo Signs Permian Gas Gathering Agreement

Share Print Bookmark    |    Wednesday,October 24,2018

Five Point-backed San Mateo Midstream announced that its wholly-owned subsidiary, DLK Black River Midstream, LLC , has entered into a long-term agreement with a producer in Eddy County, New Mexico relating to the gathering and processing of such producer’s natural gas production.

As a result of this agreement, along with prior natural gas gathering and processing agreements entered into by San Mateo’s other customers, San Mateo has now entered into contracts to provide firm gathering and processing services for over 200 million cubic feet of natural gas per day, or over 80% of the designed inlet capacity of 260 million cubic feet of natural gas per day, at its Black River cryogenic natural gas processing plant (the “Black River Processing Plant”) in Eddy County, New Mexico.

In March 2018, San Mateo completed a natural gas liquids pipeline connection at the tailgate of the Black River Processing Plant to the NGL pipeline owned by EPIC Y-Grade Pipeline, LP. The NGL connection ensures San Mateo customers firm NGL takeaway out of the Delaware Basin and firm fractionation for those NGL volumes further downstream.

Matt Spicer, Senior Vice President and General Manager of San Mateo, said, “This contract, and others we have entered into in 2018, have significantly diversified San Mateo’s customer base as we continue to provide first class midstream services to producers in the area. We pride ourselves on generating value for our customers by providing services across all three production streams-oil, natural gas and salt water-and look forward to continuing to be a full-service midstream solution for producers in the northern Delaware Basin.”