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EnCap to sell Texas oil and gas producer

Energy focussed private equity firm EnCap Investments has agreed to sell Advance Energy Partners Holdings, a Texas-based oil and natural gas producer, to Matador Resources in a deal worth $1.6 billion, according to a report by Bloomberg.

Energy focussed private equity firm EnCap Investments has agreed to sell Advance Energy Partners Holdings, a Texas-based oil and natural gas producer, to Matador Resources in a deal worth $1.6 billion, according to a report by Bloomberg.

The report cites a statement released by Matador as confirming that it hopes to complete the all-cash acquisition, the largest in the company’s 20-year history, early in the second quarter of this year.

As part of the terms of the transaction, Matador has also agreed to pay an additional cash consideration of $7.5 million for each month this year in which the average oil price exceeds $85 a barrel.

According to Matador, Advance, which has about 18,500 net acres in the northern Delaware Basin, had an estimated production in the first quarter last year of 24,500 to 25,500 barrels of oil and natural gas equivalent per day. 
 

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