Matador Resources fired up a 200-MMcf/d expansion of the Marlan gas processing plant in New Mexico.
The plant is operated by San Mateo Midstream, a midstream affiliate of the Delaware Basin producer.
The expansion of the Marlan plant in Eddy County, New Mexico, boosts the plant’s capacity to 260 MMcf/d. The plant processes volumes of Matador’s produced gas in the New Mexico Delaware, and the expansion allows San Mateo to add more third-party volumes.
Across Lea and Eddy counties, New Mexico, San Mateo has a total processing capacity of 720 MMcf/d.
“The increased processing capacity at the Marlan Plant should allow San Mateo to continue to provide Matador with reliable flow assurance in our Ranger and Antelope Ridge asset areas in Lea County, New Mexico,” said Matador Chairman and CEO Joe Foran.
Matador said Fitch Ratings upgraded its long-term issuer default rating and senior unsecured notes from BB- to BB earlier this month.
“This upgrade reflects our ongoing commitment to maintaining a resilient asset base and strong balance sheet, as well as improving capital efficiency and increasing free cash flow,” Foran said.
Matador’s Delaware Basin footprint spans across 200,000 acres in southern New Mexico and West Texas.
In April, it announced the divestiture of its assets in the Eagle Ford Shale and a robust hedging program, saying it was preparing for “turbulent times” while oil prices declined.
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