Matador Resources Company MTDR announced that a wholly-owned subsidiary of its midstream joint venture, San Mateo Midstream, LLC, has inked a long-term agreement with a large producer in Eddy County, NM.
The agreement includes the gathering and discarding of the producer's salt water. It also comprises commitment of 65 wells, located within five miles of San Mateo's existing salt water gathering system in Eddy County.
San Mateo has commenced drilling of its fourth commercial salt water disposal well in Eddy County and intends to start drilling a fifth commercial salt water disposal well in the second quarter or early in the third quarter of 2018.
San Mateo projects total salt water disposal capacity to be more than 230,000 barrels per day in Eddy County and Loving County, TX, on completion of these additional salt water disposal wells. Beginning from the first quarter of 2019, San Mateo expects to dispose more than 200,000 barrels per day of salt water. This includes estimated volumes from the agreement announced above as well as from San Mateo's other contracted producers in Eddy County and Loving County.
This latest development is in line with the company's strategy, which intends to drive value for Matador's shareholders by focusing on the midstream. In 2018, the expansion of its Black River Processing Plant was completed on time and on budget.Matador Resources entered into a strategic relationship with a subsidiary of Plains All American Pipeline, L.P. PAA
with respect to the transportation of oil. Price Performance
In the past three months, Matador Resources' shares have lost 7.4% versus the industry
's 12.8% rise.
Zacks Rank & Key Picks
Matador Resources currently carries a Zacks Rank #3 (Hold).
A few other better-ranked players in the same sector are Occidental Petroleum Corp. OXY and CVR Refining, LP CVRR . These stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Occidental Petroleum is an international oil and gas exploration and production company. It pulled off an average positive earnings surprise of 30.2% in the last four quarters.
Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CVR Refining, LP (CVRR): Free Stock Analysis Report Plains All American Pipeline, L.P. (PAA): Free Stock Analysis Report Matador Resources Company (MTDR): Free Stock Analysis Report Occidental Petroleum Corporation (OXY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research