Private equity firm EnCap Investments has agreed to acquire EP Energy for $1.5 billion, people familiar with the matter said, less than a year after the oil and gas producer emerged from a bankruptcy process that handed control to its creditors.

EnCap plans to split EP, which holds production assets in South Texas and Northeastern Utah, into its separate geographies and merge them with existing portfolio companies, according to the sources.

The Utah assets, in the Uinta Basin, will be merged with XCL Resources, while the operations in Texas’ Eagle Ford will be combined with an EnCap company with acreage in the area, the sources added.

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Source: Reuters

By Shariq Khan and David French