NEW YORK, July 28 (Reuters) - Vital Energy ( VTLE ) is

closing in on an all-cash deal to acquire private equity-owned

Point Energy Partners for $1.1 billion, people familiar with the

matter said on Sunday, a move that would extend a wave of

consolidation in the U.S. oil and gas industry.

The deal for Permian Basin-focused producer Point Energy

could be announced soon, possibly as early as Sunday assuming

the talks do not hit a last-minute snag, the sources said,

requesting anonymity as the matter is confidential.

Some of Point Energy's assets will be sold to a different

buyer that is participating in the transaction alongside Vital

Energy ( VTLE ), the sources said. Those assets are low-growth but

produce steady amounts of oil and gas, the sources added.

The identity of the other acquirer could not be learned

immediately.

Vital Energy ( VTLE ), Point Energy and Vortus Investments, which

owns Point Energy, did not immediately respond to requests for

comment.

U.S. energy producers have been on a buying spree in recent

years as they aim to take advantage of higher commodity prices

and lock up the best drilling sites on a bet demand for oil and

gas will remain robust in the medium to long-term.

Founded in 2017, Point Energy operates around 20,000 acres

in the Delaware patch of the Permian Basin and produces around

40,000 barrels of oil per day equivalent, according to its

website.

The low-growth acreage being bought by the third party is

typically sought by oil and gas producers that specialize in

operating such wells, or investment firms that can operate the

assets without needing to pursue new exploration activity.

Tulsa, Oklahoma-based Vital Energy ( VTLE ) operates 266,000 net

acres in both the Delaware and Midland portions of the Permian,

the heart of the U.S. shale industry that stretches across Texas

and New Mexico.

In September, Vital announced the acquisition of three

smaller oil and gas producers for $1.17 billion.