June 27 (Reuters) - SM Energy ( SM ) said on Thursday it

had agreed to buy some assets of shale-focused producer XCL

Resources for about $2 billion from private-equity firm EnCap

Investments, extending its footprint in the Uinta region in

Utah.

Northern Oil and Gas ( NOG ) will also buy 20% of the oil

and gas assets of XCL for $510 million, resulting in a total

deal value of $2.55 billion.

XCL, backed by EnCap and Rice Investment Group, is one of

the largest energy producers in the Uinta shale formation of

Utah. It produces around 55,000 barrels of oil equivalent per

day.

The deal extends a surge in merger and acquisition activity

in the U.S. shale patch this year after a record 2023.

This wave of consolidation, fueled by oil and gas producers

seeking to secure reserves, makes for a favorable environment

for private equity firms such as EnCap to cash out.

The transaction is expected to close in September, after

which SM Energy ( SM ) will serve as the operator of the assets.

SM Energy ( SM ), which operates in the Eagle Ford and Midland

Basins in Texas, plans to finance the acquisition through a

combination of debt and cash on hand.

(Reporting by Seher Dareen in Bengaluru; Editing by Sriraj

Kalluvila)