WASHINGTON, D.C. — The Federal Trade Commission (FTC), this past Monday, approved in part and denied in part a petition from EnCap Capital Fund XI, L.P. and EnCap Investments L.P. (collectively, EnCap), along with subsidiaries Verdun Oil Company II LLC and XCL Resources Holdings, LLC, to modify a 2022 consent order related to their acquisition of EP Energy LLC.
The original 2022 consent order was designed to address competitive concerns, particularly the risk of reduced competition in the sale of Uinta Basin waxy crude oil to refineries in the Salt Lake City region. The order required EnCap to divest all of EP Energy’s Utah business assets and imposed a strict prior-approval requirement on future acquisitions involving oil- or gas-producing assets in the Uinta Basin’s seven counties.
Earlier this year, EnCap and its subsidiaries petitioned to eliminate the prior-approval condition, citing the sale of XCL’s interests in the Uinta Basin and their current lack of operations in the region.
After reviewing the petition, the FTC agreed to remove the prior-approval requirement but replaced it with a prior-notice obligation. Under this modification, if EnCap, Verdun, or XCL reenter the Uinta Basin market, they must notify the FTC of any acquisitions involving oil- or gas-producing assets before proceeding. This approach aligns with the notification framework used under the Hart-Scott-Rodino Act and is intended to mitigate delays and reduce regulatory uncertainty, while still protecting market competition.
The Commission’s decision reflects a balance between easing operational constraints for the companies and preserving oversight to safeguard competitive market conditions.
The FTC approved the petition in part and denied it in part by a 2-0-1 vote, with Commissioner Melissa Holyoak recused from the decision.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.