Matador Doubles Up Permian Natural Gas Processing Capacity in New Mexico

Sep 03, 2020

Carolyn Davis, Natural Gas Intelligence | September 3, 2020

Dallas-based independent Matador Resources Co. and midstream affiliate San Mateo Midstream have ramped up an expansion at the Black River cryogenic natural gas processing plant in Eddy County, NM, to serve the Permian Basin Delaware.

The 200 MMcf/d expansion at the San Mateo facility brings total incremental design inlet capacity to 460 MMcf/d. The expansion is processing gas from Matador’s Stateline and Stebbins areas. Black River also processes gas from Matador’s Rustler Breaks leasehold and serves other customers.

The expansion, completed this summer on time and on budget, was begun two years ago, CEO Joseph Wm. Foran noted.

Matador also secured firm transportation and fractionation for all anticipated natural gas liquids (NGL). In addition, it has firm transportation for residue gas volumes, including those for the new inlet capacity delivered at the tailgate of the Black River facility.

“Along with the addition of the enhanced processing capacity and firm transportation and fractionation, the Black River Processing Plant and associated residue gas takeaway should provide Matador reliable transportation for the natural gas and NGLs from our Rustler Breaks and Stateline asset areas and the Greater Stebbins Area for years to come,” Foran said.

During the second quarter, Matador reported that average net oil volumes climbed to a record quarterly high of 43,074 b/d, up 6% sequentially and from 36,767 in 2Q2019. Natural gas output jumped 23% year/year but fell 1% sequentially to 181.4 MMcf/d.

In related news, flowback operations have begun on five two-mile lateral Leatherneck wells in the Greater Stebbins Area. Matador said it remains on track to begin the turning to sales of another 13 two-mile lateral Boros wells in the Stateline leasehold recently drilled and completed.

The independent’s operations are focused primarily in the Delaware’s Wolfcamp and Bone Spring formations across New Mexico and West Texas. Matador also has holdings in the Eagle Ford Shale in South Texas and in northwestern Louisiana’s Haynesville Shale and Cotton Valley formation.

Matador’s midstream operations, primarily through the joint venture with San Mateo, are expanding, with some ventures preparing to go into service within the next two weeks. Completion is nearing for a 24-mile gathering system between the Black River plant and Matador’s Stateline area, as well as a 19-mile system between Black River and the Greater Stebbins Area. In addition, 19 miles of pipeline are being added from points in Eddy County to an existing interconnect with Plains Pipeline LLC.