Judging by midstream data, East Daley Analytics expects Matador Resources (MTDR) to report robust gas production growth Q-o-Q in its upcoming 4Q23 earnings release. Volumes have surged and nearly filled capacity on the producer’s G&P assets in the Delaware Basin, according to plant data in Energy Data Studio.
Matador is an independent producer moonlighting as a midstream operator. The company is a joint-venture partner in San Mateo Midstream and in 2022 acquired the Lane G&P system (renamed Pronto Midstream) from Summit Midstream (SMLP).
Understanding the midstream infrastructure can provide unique insight into upstream assets. In the case of Matadaor, its G&P systems saw volumes increase 7.3% from 3Q23 to 4Q23, plant inlet data in EDA’s Energy Data Studio show. The systems in West Texas and New Mexico have a combined processing capacity of 520 MMcf/d and ran close to full utilization in 4Q23 (see figure).
Matador isn’t the only producer behind the G&P assets, with Occidental Petroleum (OXY), ExxonMobil (XOM) and Permian Resources (PR) also feeding raw gas through MTDR’s plants. But MTDR accounts for more than half of all volumes processed by its own plants. Volumes and producers backing San Mateo Midstream are shown from the “G&P System Analysis” dashboard in Energy Data Studio.
MTDR will report 4Q23 earnings Tuesday (February 20). With its G&P systems nearing 100% utilization, the producer could even provide specifics on potential midstream expansions. Our data suggests MTDR must either offload some volumes to third parties or plan to expand its systems, especially if the producer wants to maintain the pace of growth. MTDR is currently running 5 rigs on its G&P assets and shows no sign of slowing down. – Rob Wilson, CFA and Maria Paz Urdaneta Tickers: MTDR, OXY, SMLP, XOM.
New Webinar: How Louisiana Will Reshape the Gas Market
Join East Daley and Rextag on February 27 for a new natural gas webinar. In “Ripple Effect: How Louisiana Will Reshape the US Gas Market,” Rextag and East Daley examine the key state corridor for natural gas. We trace the ripple effect across the US as we plunge into a more volatile and dynamic gas market. Join us February 27.
New EDA Product: West Coast Supply & Demand
The West Coast Supply & Demand report is your go-to resource for mastering the energy market from the California coast to the western Colorado Rockies. This dynamic product offers extensive regional coverage, precise production forecasts for key basins, and in-depth pricing analysis, specifically examining the Colorado pricing spread from CIG Mainline to NW Pipeline Rockies.
Stay ahead of the competition with strategic insights, ensuring you make informed decisions and capitalize on emerging opportunities. Elevate your business with unparalleled market intelligence – invest in the West Coast Supply & Demand report today.
New EDA Product: Houston Ship Channel Supply & Demand
The Houston Ship Channel Supply & Demand report allows users to dive deep in understanding, and monitoring Houston Ship Channel natural gas dynamics. The product contains monthly updates of relevant price spreads, pipeline flows, production and demand estimates affecting the South Texas market, with forecasts extending 5 years into the future. Learn more about the Houston Ship Channel Supply & Demand report.
Energy Data Studio
East Daley Analytics has launched Energy Data Studio, a platform for our industry-leading midstream data and commodity production forecasts. All clients have access to the new client portal. If you have not yet logged in, please fill out the form to request a registration email be resent.
Energy Data Studio leverages our G&P data set for insights into midstream assets across every major oil and gas basin in North America. Users can navigate detailed visual dashboards by region, pipeline, or individual asset to understand crude oil, natural gas and NGL supply at the most granular level.
Energy Data Studio is available through data downloads from the visual interface, in Excel files, or as a direct feed delivered into subscribers’ workflow via secure file transfer. To learn more about Energy Data Studio, please contact insight@eastdaley.com.
The Daley Note
Subscribe to The Daley Note (TDN) for midstream insights delivered daily to your inbox. The Daley Note covers news, commodity prices, security prices and EDA research likely to affect markets in the short term.