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SM Energy (NYSE:SM) is in advanced talks to acquire Utah oil and gas producer XCL Resources, in a deal that would value the privately-held company at ~$3B, Bloomberg reported late Wednesday.
SM Energy (SM) reportedly could announce a deal with XCL backers including EnCap Investments in the coming days, although no final decision has been made.
A deal for XCL would extend SM Energy’s (SM) reach into the Uinta Basin, an oil and gas field that produces a waxy kind of oil used to make lubricants, according to the report; SM operates mostly in the Eagle Ford and Midland basins in Texas.