FTC Requests Public Comment on EnCap, Verdun, XCL Petition to Modify Order

The Federal Trade Commission is seeking public comment on a petition to reopen and modify a 2022 final consent order involving Verdun Oil Company II LLC’s (Verdun) acquisition of EP Energy LLC (EP).

The FTC’s 2022 order settled charges that the acquisition would harm competition for the sale of Uinta Basin waxy crude oil to Salt Lake City refiners. The FTC’s final consent order required the divestiture of EP’s entire business and assets in Utah. The final order also required Verdun, XCL Resources Holdings, LLC (XCL), and their parent entities, EnCap Energy Capital Fund XI, L.P. and EnCap Investments L.P. (together, EnCap), to obtain prior approval from the Commission before engaging in certain acquisition transactions across several counties in Utah. 

Relevant parties to the 2022 order filed a petition with the Commission that seeks to remove this prior approval requirement covering EnCap, Verdun, and XCL from the final consent order.

According to the petition, there have been significant changes since the order was entered that now justify removing the prior approval requirement. These changes include EnCap’s and XCL’s exit from crude oil exploration and production in the Uinta Basin after selling those assets to an unrelated party in 2024. Given these changes, the prior approval requirement is no longer necessary, the petition states.

Comments on the petition to modify the consent order must be filed by May 2, 2025 through Regulations.gov. Instructions for filing comments appear on the docket. Once processed, they will be posted on Regulations.gov. After the comment period closes, the Commission will vote on whether to approve the application.