SM Energy is in talks to acquire XCL Resources in a $3 billion deal, a major player in Utah's Uinta Basin. XCL's daily output is 55,000 barrels from 45,000 acres, with plans for a sand mine. EnCap Investments sought a buyer after failed merger attempts. SM Energy, focused on Texas' Eagle Ford and Midland Basin, is eyeing the deal amid growing interest in shale investments. This deal marks EnCap's second big exit this year, following a $41.9 billion sale to Matador Resources. The oil and gas sector is seeing a surge in M&A activity, with forecasts of $150 billion in deals by year-end. North America leads the way, accounting for 83% of first-quarter deals. The industry is witnessing a wave of consolidation and strategic partnerships amidst rising investor interest.