SM Energy on the Brink of $3 Billion Acquisition of XCL Resources in Uinta Basin

Utah, Utah, USA United States of America
Acquisition would increase SM Energy's net production from 152,000 boed per day to approximately 195,00 bbed per day
Deal expected to close in September 2024
SM Energy has received $1.2 billion in financing commitments for the deal
SM Energy in advanced discussions to acquire XCL Resources for $3 billion
XCL Resources averages 55,000 barrels of oil equivalent daily output and owns 45,000 acres in Uinta Basin
SM Energy on the Brink of $3 Billion Acquisition of XCL Resources in Uinta Basin

SM Energy, an independent exploration and production company based in Denver, Colorado, is reportedly in advanced discussions to acquire XCL Resources, a top oil and gas producer in Utah's Uinta Basin. The deal would value XCL at around $3 billion.

XCL Resources is known for its significant presence in the Uinta Basin with an average daily output of 55,000 barrels of oil equivalent and acreage of approximately 45,000 acres. The company also operates a sand mine to supply its own frac sand for shale wells.

The acquisition would complement SM Energy's existing operations in the Eagle Ford and Midland Basins in Texas. If the deal goes through, it would increase SM Energy's net production from about 152,000 barrels of oil equivalent per day to approximately 195,000 boed per day.

The Uinta Basin has emerged as one of the best and fastest-growing oil resources in the United States. The acquisition is expected to close in September 2024.

SM Energy has received commitments from J.P Morgan, Bank of America, and Wells Fargo for an aggregate $1.2 billion in financing to fund the deal.

XCL Resources LLC is a private company backed by Houston-based EnCap Investments LP and Pennsylvania-based Rice Investment Group.

The acquisition would mark another exit for EnCap Investments, which recently saw Matador Resources acquire assets from one of its portfolio companies for $1.9 billion in an all-stock deal.

Northern Oil and Gas Inc. is also expected to acquire a 20% stake in the deal for $510 million.

The Uinta Basin has seen significant consolidation trends, with Ovintiv Inc. being one of the major players in the region.


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Confidence

91%

Doubts
  • Confirmation from both companies regarding the deal
  • Exact terms and conditions of the deal

Sources

98%

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(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

SM Energy Said to Near $3 Billion Deal for XCL Resources

Bloomberg News Now David Carnevali Thursday, 27 June 2024 20:35
  • Unique Points
    • SM Energy is in advanced talks to acquire XCL Resources
    • XCL Resources is a top oil and gas producer in Utah
    • The deal would value XCL at about $3 billion
  • Accuracy
    • The deal could be announced with XCL backers including EnCap Investments in the coming days
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Another Billion-Dollar U.S. Oil Acquisition Is on the Horizon

OilPrice.com Charles Kennedy Thursday, 27 June 2024 20:36
  • Unique Points
    • SM Energy is in talks to acquire XCL Resources for $3 billion.
    • XCL Resources is a major player in Utah’s Uinta Basin, with average daily output of 55,000 barrels and acreage of 45,000 acres.
    • XCL Resources is also developing a sand mine to supply its own frac sand for shale wells.
    • EnCap Investments failed to merge XCL Resources with another local player due to antitrust regulators.
    • SM Energy is focused on the Eagle Ford and Midland Basin in Texas, with recent interest from investors in the former despite most M&A activity remaining concentrated in the Permian.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

SM Energy nears XCL Resources acquisition at $3bn valuation

Yahoo Finance Unknown GlobalData Thursday, 27 June 2024 20:38
  • Unique Points
    • SM Energy is in advanced discussions to acquire Utah-based oil producer XCL Resources.
    • XCL Resources produces an estimated 55,000 barrels of oil equivalent per day and has water transportation infrastructure and a developing sand mine for fracking.
    • The acquisition would complement SM Energy’s existing operations in the Eagle Ford and Midland Basins in Texas.
  • Accuracy
    • SM Energy is in advanced discussions to acquire XCL Resources.
    • The sale that could be disclosed soon would put XCL's value at around $3 billion.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    No ad hominem fallacies found. No appeals to authority found. No inflammatory rhetoric found. Some instances of dichotomous depiction and overgeneralization, but these were not pervasive or egregious enough to significantly undermine the article's credibility. The author mainly reported on the potential acquisition without inserting their own opinions or exaggerating the information.
    • ]SM Energy is in advanced discussions to acquire Utah-based oil producer XCL Resources, reported Bloomberg.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

100%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

EnCap-based XCL Resources to sell Uinta Basin assets in $2.55 billion deal

The Business Journals Naomi Klinge Thursday, 27 June 2024 00:00
  • Unique Points
    • XCL Resources LLC, a private company backed by Houston-based EnCap Investments LP and Pennsylvania-based Rice Investment Group, is selling its Uinta Basin assets for $2.55 billion.
    • Denver-based SM Energy Co. will acquire the assets for net $2.04 billion and Minnesota-based Northern Oil and Gas Inc. will acquire a 20% stake for $510 million.
    • The deal is expected to close in September 2024.
    • The acquisition will give SM Energy another 37,200 net acres, increasing its core net acreage by 14% and NOG will gain about 9,300 net acres for a total of 46,500 net acres.
    • SM Energy has received commitments from J.P Morgan, Bank of America, and Wells Fargo for an aggregate $1.2 billion in financing.
    • The acquisition will increase SM Energy's net production from about 152,000 barrels of oil equivalent per day to about 195,000 boed per day.
    • SM Energy President and CEO Herb Vogel expects to demonstrate value creation through performance optimization, inventory expansion and growth in adjusted free cash flow.
    • SM Energy will increase its dividend by 11% and authorize a new $500 million share repurchase program through 2027.
    • NOG expects its net unhedged cash flow from operations to be more than $170 million in the 12 months after closing.
    • The Uinta Basin has emerged as one of the best and fastest-growing oil resources in the United States.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication