Key Takeaways
- • Cardinal Midstream Partners LLC has agreed to sell Cardinal Delaware Basin LLC and Cardinal New Mexico LLC to San Mateo Midstream LLC in a $752 million transaction announced June 29, 2026.
- • The sale involves three major law firms: Willkie Farr & Gallagher LLP representing Cardinal Midstream Partners, while Baker Botts LLP and O'Melveny & Myers LLP represent San Mateo Midstream.
- • The transaction encompasses natural gas midstream assets in two key U.S. basins—Delaware Basin and New Mexico—reflecting continued consolidation in the independent midstream energy sector.
Summary
Cardinal Midstream Partners LLC announced the sale of two of its natural gas midstream subsidiaries to San Mateo Midstream LLC for $752 million in a deal disclosed June 29, 2026. The transaction encompasses Cardinal Delaware Basin LLC and Cardinal New Mexico LLC, representing a significant divestiture of midstream infrastructure assets in two strategically important energy production regions.
The deal structure reflects the involvement of prominent legal counsel across both buyer and seller sides. Willkie Farr & Gallagher LLP served as lead counsel for Cardinal Midstream Partners, the seller, while Baker Botts LLP and O'Melveny & Myers LLP represented San Mateo Midstream as the acquiring entity. The participation of multiple top-tier energy law practices underscores the complexity and scale of the transaction.
The sale of these Delaware Basin and New Mexico assets signals continued consolidation within the independent midstream sector, where companies are actively reshaping their portfolios through strategic divestitures and acquisitions. Midstream assets in these basins—critical infrastructure for natural gas processing, gathering, and transportation—remain core holdings in the energy transition landscape despite sector-wide pressures and strategic shifts toward renewable energy investments.
The deal structure reflects the involvement of prominent legal counsel across both buyer and seller sides. Willkie Farr & Gallagher LLP served as lead counsel for Cardinal Midstream Partners, the seller, while Baker Botts LLP and O'Melveny & Myers LLP represented San Mateo Midstream as the acquiring entity. The participation of multiple top-tier energy law practices underscores the complexity and scale of the transaction.
The sale of these Delaware Basin and New Mexico assets signals continued consolidation within the independent midstream sector, where companies are actively reshaping their portfolios through strategic divestitures and acquisitions. Midstream assets in these basins—critical infrastructure for natural gas processing, gathering, and transportation—remain core holdings in the energy transition landscape despite sector-wide pressures and strategic shifts toward renewable energy investments.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.