WPX Energy has bought over RKI Exploration & Production in a $2.35billion deal.
The move by the oil and gas explorer, which is a spin off from Williams Cos, comes just a day after Marathon Petroleum Corp agreed to takeover MarkWest Energy.
WPX has been looking at its options in a bid to increase its profit over the next five years as well as increasing its oil output considerably.
The merger means WPX will assume $400million of debt to acquire RKI, which has a number of fields in the Permian Basin.
The company operates four rigs, which are in the Texas and New Mexico region.
In order to finance the transaction the company have agreed the sale of £1.2billion of senior unsecured notes as well as 27 million shares and $300million of convertible stock.
Rick Muncrief, WPX chief executive, said: “This further drives high-margin oil growth, accelerates our portfolio transition to more liquids, and solidifies our premier position in the western US.”
The deal is the largest for WPX since the company spun out from Williams in 2011 and is its first move into the Permian.