Cardinal Midstream Partners has completed 36 miles of new natural gas gathering pipelines across Eddy County, New Mexico, and Loving County, Texas, bringing its total operated network in the Delaware Basin to approximately 150 miles. The expansion coincides with the commissioning of an additional 220 million cubic feet per day (MMcfd) of processing capacity at its Pecos River natural gas processing complex in Loving County — taking total Pecos River capacity to 360 MMcfd.
Cardinal Midstream Delaware Basin Pipeline Expansion — Project Detail
The 36 miles of new high- and low-pressure gathering pipelines connect upstream producers in the core Delaware Basin to Cardinal’s processing and market hubs across West Texas and southeastern New Mexico. The Delaware Basin — a sub-basin of the broader Permian — has been one of the most actively drilled regions in the US over the past five years, with associated natural gas volumes rising in step with liquids-focused drilling programmes.
Cardinal’s pipeline network now spans approximately 150 miles, serving producers across two of the Delaware’s most productive counties. Loving County, Texas, consistently ranks among the highest-producing counties in the entire Permian by oil output per well, making midstream capacity in the area a structural necessity rather than speculative infrastructure. Rising Delaware Basin gas volumes and their implications for takeaway infrastructure are covered in our analysis of the Phillips 66 and Kinder Morgan Western Gateway Pipeline — a project directly targeting Permian gas market access.
Pecos River Processing Complex: 360 MMcfd Capacity
The Pecos River expansion adds 220 MMcfd of processing capacity to Cardinal’s existing 140 MMcfd facility, with the expanded complex now operational at a combined 360 MMcfd. The facility processes raw natural gas from Delaware Basin producers — removing natural gas liquids (NGLs) including ethane, propane, and butane — before delivering dry gas to market pipelines and NGLs to fractionation and downstream markets.
The 360 MMcfd nameplate capacity positions Pecos River as a mid-scale but strategically located processing asset in a basin where midstream bottlenecks have historically constrained producer netbacks. Cardinal has built flexibility for further expansion into the design, giving it optionality to respond to continued drilling activity in Loving and Eddy counties without a full greenfield capital cycle.
Delaware Basin gas processing sits within a broader US midstream buildout driven by associated gas growth — context covered in our 2026 outlook on underground gas storage and energy security.
Cardinal Midstream: Background and Backing
Cardinal Midstream Partners was founded in 2022 with an initial $300 million capital commitment from EnCap Flatrock Midstream, one of the most active private equity investors in North American midstream infrastructure. EnCap Flatrock has backed multiple midstream platforms across the Permian, DJ Basin, and Appalachia, with a model focused on building scale quickly through a combination of greenfield construction and bolt-on acquisitions.
Cardinal’s first major acquisition came in 2023, when it purchased Medallion Midstream’s Delaware Basin natural gas gathering and processing business — providing an immediate customer base and operational infrastructure in the region. The Pecos River complex and the 36-mile pipeline addition represent the first significant organic expansion beyond that acquired base, signalling that Cardinal’s producer customer relationships are generating sufficient committed volumes to justify greenfield capital deployment.
For context on the competitive midstream landscape Cardinal operates within, see our roundup of the top 10 pipeline companies in 2026.
Delaware Basin Midstream Outlook
The Delaware Basin continues to attract midstream capital in 2026, driven by sustained upstream drilling activity from operators including Coterra Energy, Permian Resources, and Occidental Petroleum. Associated gas production — gas produced alongside oil from tight formations — has increased sharply as oil-focused drilling has accelerated, creating demand for gathering and processing capacity that outpaces what legacy infrastructure can handle.
Cardinal’s expansion arrives at a point where several Delaware Basin midstream operators are running near capacity, giving new entrants and expanding platforms genuine commercial traction with producers seeking alternative gathering options. The company’s EnCap Flatrock backing provides sufficient capital to continue expanding ahead of demand — the standard playbook for privately-backed midstream platforms targeting an eventual sale to a larger operator or MLP.
What is Cardinal Midstream’s Delaware Basin pipeline network?
Cardinal Midstream Partners operates approximately 150 miles of high- and low-pressure natural gas gathering pipelines across Eddy County, New Mexico, and Loving County, Texas, in the Delaware Basin. The network was expanded by 36 miles in 2025, connecting upstream producers to the company’s Pecos River processing complex and onward market hubs.
What is the capacity of Cardinal Midstream’s Pecos River processing complex?
Following its 2025-2026 expansion, the Pecos River natural gas processing complex in Loving County, Texas, has a total capacity of 360 million cubic feet per day (MMcfd). The expansion added 220 MMcfd to the original 140 MMcfd facility, with additional capacity built into the design for future expansion.
Who owns Cardinal Midstream Partners?
Cardinal Midstream Partners is a privately held midstream company backed by EnCap Flatrock Midstream, one of North America’s most active private equity investors in energy infrastructure. Cardinal was founded in 2022 with an initial $300 million capital commitment from EnCap Flatrock.
How did Cardinal Midstream build its Delaware Basin presence?
Cardinal Midstream established its Delaware Basin footprint through the 2023 acquisition of Medallion Midstream’s Delaware Basin natural gas gathering and processing business, which provided an immediate operational base and producer customer network. The company has since expanded organically through 36 miles of new pipelines and the Pecos River processing expansion.
Why is the Delaware Basin important for natural gas midstream investment?
The Delaware Basin, a sub-basin of the Permian in West Texas and southeastern New Mexico, is one of the most productive oil and gas regions in the US. As oil-focused drilling has accelerated, associated natural gas production has risen sharply, creating strong demand for gathering, processing, and takeaway infrastructure. Loving County, Texas — where Cardinal’s Pecos River complex is located — consistently ranks among the highest-producing Permian counties by oil output per well.