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Matador's midstream JV to partner with Plains for Delaware Basin deal

Published 01/22/2018, 02:28 PM
© Reuters.  Matador's midstream JV to partner with Plains for Delaware Basin deal
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  • Matador Resources (MTDR +3.2%) is higher after announcing a new strategic partnership with Plains All American Pipeline (PAA +2.6%) to gather and transport crude oil for MTDR and other producers in the Rustler Breaks asset area in New Mexico.
  • The agreement also includes a joint tariff arrangement to offer third-party producers located within a joint development area of ~400K acres in crude oil transportation services from the wellhead to Midland, Tex., with access to other end markets, such as Cushing, Okla., and the Gulf Coast.
  • With Delaware Basin transportation costs rising, MTDR says it expects to amass "substantial" savings by transporting increasing volumes of its oil by pipeline.
  • Plains is expecting to complete a mainline extension from its current long-haul pipeline system in Texas during Q2 or Q3.
  • Now read: Hartstreet: Matador Production Results Improve As Well Design Becomes The Narrative


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