TPG Pace Energy Holdings Corp. TPGE, +4.62% announced Tuesday a deal with funds managed by EnerVest Ltd. to buy the oil and gas assets within EnerVest's South Texas Division for $2.66 billion in cash and stock. As part of the deal, TPG Pace, a special-purpose acquisition vehicle, will partner with EnerVest to create a new publicly traded company, Magnolia Oil & Gas Corp., in which EnerVest will retain a "significant" ownership stake. The new company's stock is expected to trade on the NYSE, after the deal closes late in the second quarter of 2018. "In creating Magnolia, we have a unique opportunity to build a new company anchored by what we consider to be some of the highest quality oil producing acreage in the country," said Steve Chazen, the former chief executive of Occidental Petroleum Corp. OXY, +0.93% who now leads TPG Pace, and who will be CEO of Magnolia. TPG Pace's stock, which was still inactive in premarket trade, is unchanged over the past three months, while the SPDR Energy Select Sector ETF XLE, +1.34% has shed 5.8% and the S&P 500 SPX, +0.19% has gained 1.3%.