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Vista Energy, S.A.B. de C.V. (NYSE: VIST; BMV: VISTA), a leading crude petroleum and natural gas company, has announced the complete acquisition of Petronas E&P Argentina S.A. (PEPASA) from Petronas Carigali Canada B.V. and Petronas Carigali International E&P B.V. The deal, valued at $1.2 billion, includes $900 million in cash, $300 million in deferred payments, and over 7 million Vista American Depositary Shares (ADSs) subject to lock-up restrictions expiring in October 2025 and April 2026. With a current market capitalization of approximately $4 billion and a P/E ratio of 8.8, Vista demonstrates strong financial positioning for this strategic acquisition.
PEPASA holds a 50% working interest in the La Amarga Chica unconventional concession (LACh) in the Vaca Muerta shale formation, Argentina. As of December 31, 2024, LACh had 247 producing wells and 280 million barrels of oil equivalent (MMboe) in P1 reserves. During the last quarter of 2024, the concession produced 79,543 barrels of oil equivalent per day (boe/d), with oil contributing 71,471 barrels per day (bbl/d).
Miguel Galuccio, Chairman and CEO of Vista, highlighted the acquisition’s strategic significance, stating it enhances the company’s scale in Vaca Muerta, boosts production, and contributes to a stronger free-cashflow profile. The transaction is expected to be highly accretive, with LACh’s low operating costs and high margins aligning with Vista’s financial metrics for 2024.
Vista’s acquisition expands its production volume by approximately 47% of its fourth-quarter 2024 production, resulting in a pro forma total production of 125,048 boe/d for the same period. The company also gains access to 200 ready-to-drill well locations and significant oil midstream capacities, including transportation and export dispatch capacities in key projects.
The transaction was financed through Vista Argentina’s own funds and a $300 million credit agreement with Banco Santander (BME:SAN), S.A., with a four-year term. PEPASA, founded in 2014, reported total revenues of $909 million and an adjusted EBITDA of $667 million for 2024, leading to a 73% EBITDA margin and a net profit of $349 million for the fiscal year.
This acquisition is a strategic move by Vista to consolidate its presence in the Vaca Muerta shale play, which is considered one of the most significant unconventional oil and gas formations globally. With analyst consensus being notably bullish and price targets suggesting significant upside potential, InvestingPro data indicates the stock is currently trading near its Fair Value, making it an interesting watch for value-focused investors. The transaction is based on a press release statement and does not include any speculative or subjective assessments.
In other recent news, Vista Energy has reported its full-year and fourth-quarter results for 2024, showcasing a period of strong performance. The company highlighted its ongoing efforts to optimize operations and maintain a solid position in the energy sector, as detailed in a Form 6-K filed with the U.S. Securities and Exchange Commission. While specific financial metrics were not disclosed, the report suggests that Vista Energy’s strategic initiatives have been effective over the past year. Additionally, Citi analysts have upgraded Vista Oil & Gas’s stock rating from Neutral to Buy, setting a price target of $66. This upgrade follows a significant decline in the stock price, presenting an attractive opportunity for investors. Citi’s analysis points to Vista’s compelling valuation and robust production growth outlook, with expected year-over-year increases of 42% in 2025 and 19% in 2026. The analysts also mention potential benefits from the capital recycling process in the Vaca Muerta shale formation and possible mergers and acquisitions, which could enhance Vista’s growth prospects.
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