San Mateo Midstream agreed to acquire Cardinal Midstream Partners for $752 million, expanding its footprint in the Delaware Basin. The deal brings together two midstream operators in a transaction expected to close by July 31, 2026. Cardinal, backed by EnCap Flatrock Midstream, operates infrastructure serving oil and gas producers across Texas and New Mexico.

Cardinal specializes in midstream energy infrastructure, acquiring and developing assets that support the oil and gas sector. Based in Dallas, the company focuses on gathering, treating, and processing natural gas, along with produced water disposal and oil transportation services. Its partnership with EnCap Flatrock Midstream positioned it as a significant player in regional midstream operations.

San Mateo Midstream, formed as a joint venture between Matador Resources Company and Five Point Infrastructure, already serves Matador and third-party customers in the same Delaware Basin region. The acquisition consolidates midstream capacity where San Mateo operates natural gas processing facilities and manages water disposal and oil gathering infrastructure.

The merger creates a more integrated midstream platform serving the Delaware Basin's active oil and gas fields. By combining complementary assets, San Mateo strengthens its position as a regional midstream consolidator while eliminating a competitor in the same operating area.