Matador Adding Permian Heft, Natural Gas Midstream Capacity with $1.9B Ameredev Deal - Natural Gas Intelligence
Matador Adding Permian Heft, Natural Gas Midstream Capacity with $1.9B Ameredev Deal
Dallas-based independent Matador Resources Co. is acquiring privately held Permian Basin producer Ameredev II Parent LLC for $1.9 billion.
The assets of Ameredev, a portfolio company of EnCap Investments LP, include oil and natural gas acreage in the Permian’s Delaware sub-basin, as well as a roughly 19% stake in Piñon Midstream LLC. Piñon offers natural gas gathering, compression and treating, as well as carbon capture, utilization and storage services in the Delaware.
The Ameredev upstream assets are in Lea County, NM, and in the West Texas counties of Loving and Winkler. Piñon, meanwhile, has midstream assets in Lea County. The upstream properties are estimated to have produced up to 26,000 boe/d (65% weighted to oil) in the third quarter. Estimated total proved oil and natural gas reserves are 118 million boe (60% oil).
Related Knowledge Center: Methane
As the production of natural gas from shale fields has expanded, so have methane emissions. U.S. methane emissions grew 27 percent from 1990 to 2009, according to the Energy Information Administration. Methane contributes about 10 percent of all U.S. greenhouse gas emissions and is 25 times more potent a greenhouse gas than carbon dioxide.