
Subject to permitting, procurement, and construction activities, the Marlan expansion is targeted for completion by yearend 2028.
The company said the project will increase its expected 2026 midstream capital expenditures by about $25 million, raising its estimated midstream capital budget for the year to $170-190 million.
Commercial agreements
The agreements consist of a new long-term fixed-fee gas gathering and processing contract and an extension of an existing gas gathering and processing agreement.
Under the new agreement, San Mateo will gather and treat natural gas from newly dedicated acreage in Lea and Eddy Counties, NM, and process the volumes at the Marlan complex. The agreement includes a large-scale acreage dedication in the northern Delaware basin.
Separately, San Mateo amended an existing gas gathering and processing agreement covering production from Eddy County. Under the extension, gas will continue to be gathered, treated, and processed at the Black River gas processing plant in Eddy County for several years beyond the original contract term. The extension builds on a gas gathering and processing agreement San Mateo announced in October 2018, the company noted.
Upon completion of the Marlan expansion, San Mateo’s total natural gas processing capacity will exceed 1.3 bcfd, nearly tripling the 460-MMcfd capacity it had before Matador contributed Pronto Midstream LLC to the venture in December 2024.




















