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SM Energy Company (NYSE:SM) shares are diving today after the company disclosed an agreement to purchase the Uinta Basin oil and gas assets from entities affiliated with XCL Resources, LLC. for an unadjusted purchase price of $2.55 billion. Simultaneously, Northern Oil and Gas, Inc. (NYSE:NOG) stated that it would purchase a 20% share of XCL’s oil and gas assets for $510 million, leaving SM Energy with an 80% stake at a net cost of $2.04 billion. SM Energy will assume operational control of the assets currently managed by XCL and plans to fund the buyout through a mix of debt and existing cash reserves. The Board has approved the XCL transaction, effective May 1, 2024, with closing

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) disclosed that its subsidiary, Patterson-UTI International Holdings, Inc., inked a non-binding term sheet with ADNOC Drilling. As per the deal, Patterson-UTI expects to hold a minority equity interest in Turnwell Industries LLC OPC, which was recently formed by ADNOC Drilling.  Patterson-UTI projects that Schlumberger Middle East SA will also hold a minority equity interest in Turnwell, which won a $1.7 billion contract to drill and complete 144 unconventional wells for ADNOC in UAE. Schlumberger Middle East SA is a subsidiary of Schlumberger N.V. (NYSE:SLB). In exchange for the minority equity interest, Patterson-UTI plans to offer drilling,

U.S. Silica Holdings, Inc. (NYSE:SLCA) shares are trading higher after the company inked a deal to be acquired by funds managed by affiliates of Apollo Global Management, Inc. (NYSE:APO) for around $1.85 billion. M&A Deal: As per the deal, U.S. Silica shareholders will receive $15.50 per share in cash for each share they own, representing an 18.7% premium to its closing share price as of $13.06 on April 25 and a 33.0% premium to 90-day volume-weighted average share price for the period ended April 25.  The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions. The agreement includes a 45-day “go-shop” period that will expire on June 10.

Treasury Secretary Janet Yellen reportedly said the surprise OPEC+ oil production cut is an “unconstructive act” that will add uncertainty to the global growth outlook and burden consumers when inflation remains high. What Happened: “I think it’s a regrettable action that OPEC decided to take,” Yellen told reporters, according to a Reuters report. She also said it was too early to assess what the price impact would be. Also Read: Best Penny Stocks Yellen pointed out that a decline in gasoline prices from last year’s peaks had helped rein in inflation and it would be detrimental if the trend were reversed, according to the report. “Clearly, it’s not a positive for global growth,”

Oil prices soared during Monday morning in Asian trade after The Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, trimmed oil production by 1.16 million barrels per day beginning May, in a surprising move. What Happened: Saudi Arabia will voluntarily cut output by 500,000 bpd from May until the end of 2023. The voluntary cuts begin from May and last until the end of the year. The pledges bring the total volume of reductions by OPEC+ to 3.66 million bpd, which is equal to 3.7% of global demand, according to Reuters calculations. Also Read: Best Oil ETFs West Texas Intermediate (WTI) futures expiring in May rose 5.3% to trade at $79.67 per barrel while