Matador Resources to Buy Cardinal Midstream for $752M Cash, Expanding Delaware Basin Midstream Footprint

Key Facts

1Matador Resources announced that its joint venture San Mateo Midstream has entered a definitive agreement to acquire Cardinal Midstream Partners' operating subsidiaries for $752 million in cash.

In the midst of a wave of M&A in the U.S. oil and gas sector, Matador Resources (MTDR) announced that its San Mateo Midstream joint venture has entered a definitive agreement to acquire Cardinal Midstream Partners' operating subsidiaries for $752 million in cash. The deal targets expanding midstream infrastructure in the Delaware Basin, supporting Matador's upstream operations and scaling the joint venture's asset base.

The move comes amid ongoing consolidation in the Permian Basin midstream space, as operators seek economies of scale and cost efficiencies. The all-cash consideration signals management's confidence in future cash flows, particularly with crude oil prices at levels that sustain investment. MTDR shares closed at $49.90 on June 26, 2026, up from its intraday low of $49.20, reflecting investor optimism about the expansion.

For investors, the focus will be on Matador's ability to integrate the new assets and deliver expected synergies, alongside monitoring crude oil price developments that could impact the deal's economics. Broader economic data, such as U.S. crude inventories and employment reports, remain catalysts for MTDR in the near term.