Vista announces the acquisition of Petronas Argentina

Core Viewpoint - Vista Energy has acquired 100% of Petronas E&P Argentina S.A. (PEPASA), which holds a 50% working interest in the La Amarga Chica unconventional concession in Vaca Muerta, Argentina, for a total consideration of US$ 1.2 billion, enhancing its production scale and profitability in a high-margin asset [1][3][6]. Transaction Details - The acquisition price includes US$ 900 million in cash, US$ 300 million in deferred payments, and 7,297,507 American Depositary Shares, with lock-up restrictions on the shares [1]. - The deferred cash payments will be made in two installments of 50% each on April 15, 2029, and April 15, 2030, without accruing interest [1]. Asset Overview - La Amarga Chica spans 46,594 acres and had 247 wells in production as of December 31, 2024, with 280 million barrels of oil equivalent (MMboe) of P1 reserves [2]. - The concession produced 79,543 barrels of oil equivalent per day (boe/d) in Q4 2024, with 71,471 barrels per day (bbl/d) being oil [2]. - Vista estimates the potential for 400 new well locations to be drilled in the inventory [2]. Financial Performance - PEPASA reported total revenues of US$ 909 million and an Adjusted EBITDA of US$ 667 million for 2024, resulting in an Adjusted EBITDA margin of 73% [8]. - The net profit for PEPASA in 2024 was US$ 349 million [8]. Strategic Implications - The acquisition is expected to enhance Vista's profitability and free cash flow profile, consolidating a high-margin, low-breakeven asset [3]. - The transaction will increase Vista's production volume by approximately 47%, leading to a pro forma total production of 125,048 boe/d for Q4 2024 [6]. - The proximity of La Amarga Chica to Vista's development hub is anticipated to create operational synergies and cost savings [6]. Company Background - Vista Energy is focused on the Vaca Muerta play in Argentina and was the second-largest oil producer in Vaca Muerta and the third-largest in Argentina in 2024 [9].