SM Energy is reportedly in advanced discussions to acquire Utah-based oil producer XCL Resources. The potential sale would value XCL at approximately $3 billion. The acquisition would allow SM Energy to expand its operations into the Uinta Basin, noted for its waxy crude oil. XCL Resources, backed by EnCap Investments and Rice Investment Group, holds around 45,000 net acres in the region and produces an estimated 55,000 barrels of oil equivalent per day. The deal is part of a broader trend of consolidation in the oil and gas industry, aimed at scaling operations and renewing drilling inventories. The sale process, managed by Jefferies Financial Group, began in early March. The acquisition by SM Energy would complement its existing operations in Texas’ Eagle Ford and Midland Basins. EnCap Investments, a major backer of XCL, has seen other exits recently, including the sale of assets to Matador Resources.

Oil and Gas Exploration and Production, Private Equity and Investment,United States, Utah, Texas