Matador to Buy Permian Oil Assets From EnCap for $1.9 Billion

Oil producer Matador Resources Co. agreed to buy assets in the Permian Basin from a portfolio company of EnCap Investments LP for $1.9 billion in cash, the latest in a series of shale industry tie-ups.

The deal includes oil and gas producing properties and undeveloped acreage in New Mexico and West Texas owned by Ameredev II Parent LLC, Matador said Wednesday in a statement. It also includes a 19% stake in Piñon Midstream LLC, which has pipeline and compression assets in New Mexico.

Read more: Shale Buying Binge Spells Slower Production Growth: Energy Daily

The acquisition, which is expected ...