Matador Resources Co. (NYSE: MTDR) expanded its Delaware Basin midstream operations in a deal on Feb. 25 that analysts believe could help minimize outspend as the company looks into selling assets outside its core Permian position.

The Dallas-based oil and gas company formed a second midstream joint venture (JV) in the Delaware with private-equity firm Five Point Energy LLC to be named San Mateo Midstream II LLC. The agreement is the second midstream JV between Matador and Five Point after the pair initially linked up in 2017 to form San Mateo Midstream LLC.

Similar to the original JV, San Mateo II will be owned 51% by Matador and 49% by Five Point and be responsible for expanding current gathering, processing and saltwater disposal capacity for Matador’s Northern Delaware Basin operations.

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