X2 Resources Secures Investment from EnCap and Allies
Deal News | Apr 24, 2025 | EnCap Investments
X2 Resources LLC has announced an equity commitment from EnCap Investments L.P., Westlawn Group LLC, Rice Investment Group, and its management team. With this support, X2 aims to pursue acquisitions ranging from $500 million to several billion across top-tier oil and gas basins. CEO Gray Lisenby expressed confidence in developing large-scale assets and generating attractive returns, acknowledging the cooperation of its equity partners. EnCap's Managing Partner, Jason DeLorenzo, highlighted X2's successful track record, noting its competence to significantly expand its asset base and growth. Historically, the team led XCL Resources through successful oil field development and sale. The legal formation of X2’s new company included advisors Vinson & Elkins LLP, Winston & Strawn LLP, and Latham & Watkins LLP.
Sectors
- Energy
- Private Equity
- Legal Services
Geography
- United States – X2 Resources and its financial backers, such as EnCap Investments and Westlawn Group LLC, are primarily based in the United States.
- Texas – Houston, Texas is a central location for several participating firms including EnCap Investments and Westlawn Group LLC.
Industry
- Energy – The article focuses on investments and developments within the oil and gas sector, a key part of the energy industry.
- Private Equity – EnCap Investments L.P., a private equity firm, is involved in providing significant capital commitment to X2 Resources.
- Legal Services – Legal firms such as Vinson & Elkins LLP, Winston & Strawn LLP, and Latham & Watkins LLP are mentioned as advisors in the formation of the new entity.
Financials
- $500 million to multibillion-dollar – The target range of X2 Resources' acquisition opportunities with the new equity capital.
- $2.64 billion – The sale price of XCL Resources to SM Energy Company and Northern Oil and Gas, Inc.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| X2 Resources, LLC | Target Company | Company | A company focusing on large-scale oil and gas developments. |
| EnCap Investments L.P. | Investor/Private Equity Firm | Company | A private equity firm that provides venture capital across the U.S. energy sector. |
| Westlawn Group LLC | Investor | Company | A private investment firm focused on the oil and gas industry. |
| Rice Investment Group | Investor | Company | A multi-strategy investment fund backed by the Rice family. |
| Vinson & Elkins LLP | Legal Advisor | Company | Provided legal counsel to EnCap Investments. |
| Winston & Strawn LLP | Legal Advisor | Company | Provided legal counsel to Westlawn Group LLC. |
| Latham & Watkins LLP | Legal Advisor | Company | Provided legal counsel to X2 Resources on forming the new company. |
| Gray Lisenby | CEO of X2 Resources | Person | CEO leading X2 Resources with a vision of significant asset development. |
| Jason DeLorenzo | Managing Partner at EnCap | Person | Managing Partner involved in securing partnership with X2 Resources. |