08:03 AM EDT, 06/27/2024 (MT Newswires) -- SM Energy ( SM ) said Thursday it agreed to acquire the Uinta Basin oil and gas assets of XCL Resources, which is backed by EnCap Investments and Rice Investment Group, for $2.55 billion.

At the same time, Northern Oil and Gas ( NOG ) said it has agreed to acquire 20% of the oil and gas assets of XCL for $510 million in cash.

The deal, expected to close in September, will result in a $2.04 billion price for SM Energy's ( SM ) 80% stake in the Uinta Basin assets, the company said.

SM Energy ( SM ) said it plans to finance the deal with a combination of debt and cash and that it has received commitments from JP Morgan, Bank of America, and Wells Fargo for $1.2 billion in short-term credit.

SM said the acquisition expected to be "immediately accretive" to its earnings before interest, taxes, depreciation, amortization, and exploration expenses.

SM shares were 2.3% lower in premarket trading, while Northern Oil and Gas ( NOG ) was little changed.

Price: 47.74, Change: -0.68, Percent Change: -1.40