repsol reached an agreement with EIGan American investment firm specializing in energy infrastructure, Sale of 25% of the hydrocarbon exploration and production business (Repsol Upstream) for $4,800 million (4,850 million euro).
As the Spanish company has reported to the National Securities Market Commission (CNMV), the operation will be carried out by handing over $3,400 million (3,435 million euro) for share value and $1,400 million (1,415 million euro) for share value. net debt.
Repsol wrote in your note that your proposal It means valuing Repsol Upstream at $19,000 million (19,203 million euros).
In the note, the operation assumes an operating value of $8.3/2P reserves (EV/2P) per barrel of oil equivalent, above $5.7, the global average of EV/2P transactions in 2022.
The agreement includes Repsol’s global exploration, development and production portfolio with an estimated production of 570,000 barrels of oil equivalent per day for 2022 and proven and probable reserves (2P) of oil equivalent of 2.3 billion barrels, 70% of which is natural gas.
Repsol Upstream also Contingent resources (2C) for 3,600 million barrels of oil equivalentadds the expression.
The resulting company EIG will control 25%, retain the existing workforce, management team and business plan, and focus on “strengthening and decarbonizing its global portfolio.”Including the possibility of an IPO of a business in the United States from 2026″.
Repsol will “continue to maintain control of the vehicle” as a majority shareholderand will continue to consolidate it in the Group’s accounts”, as well as representing an injection of funds for the oil company to invest in the energy transition, clarified in the note.