Vista Energy Expands Operations With Strategic Acquisition Of Petronas Argentina

$VIST

In a significant move within the energy sector, Vista Energy, SAB. De C.V. (NYSE:VIST), a prominent player in the oil and gas industry, has announced the acquisition of Petronas E&P Argentina SA (PEPASA) from Petronas Carigali Canada BV and Petronas Carigali International E&P BV This acquisition marks a pivotal expansion for Vista, as it secures a 100% stake in the La Amarga Chica unconventional concession, located in the prolific Vaca Muerta shale formation in Argentina.

The transaction, valued at a total of $1.2 billion, includes $900 million in cash and $300 million in deferred cash payments, alongside 7,297,507 American Depositary Shares. These financial arrangements underscore the strategic importance of this acquisition, which significantly enhances Vista’s production capabilities and reserves. As of the end of 2024, La Amarga Chica boasted 247 active wells and substantial proven reserves, positioning it as a key asset in Vista’s portfolio.

Miguel Galuccio, Chairman and CEO of Vista, emphasized the acquisition’s alignment with the company’s long-term strategy to bolster its presence in Vaca Muerta. He noted the low operating costs and high production growth potential of the block, which are expected to drive increased profitability and strengthen the company’s cash flow.

This move also consolidates Vista’s oil midstream capacity, with significant transportation and export capabilities now under its control. It brings a 47% increase in the company’s production volume as of the fourth quarter of 2024, with pro forma total production reaching 125,048 barrels of oil equivalent per day. The strategic geographical proximity of La Amarga Chica to Vista’s existing operations is expected to yield substantial operating synergies.

This strategic expansion not only solidifies Vista’s position as a leading energy producer in Argentina but also sets a robust foundation for sustained growth and profitability in the years to come. The company integrates these new assets, the focus will remain on maximizing value creation and leveraging synergies to achieve long-term success in one of South America’s most vital energy markets.

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