Renta 4 | According to press reports, the company is negotiating the merger of its exploration and production business in the North Sea with Neo Energy, creating a business that would reach 130 kboe/d, increasing its production by 90 kboe/d (+15%), which would make it one of the largest producers in the area.
In addition, according to other media, Repsol could also be in negotiations to sell a minority stake in its Eagle Ford business, valuing the operation at around €1,850 million euros.
Assessment: News with no impact on the share price and in line with the Company’s strategy to optimise its upstream portfolio towards attractive, growing jurisdictions with the most efficient fields, with the intention of preparing the business to be listed on the US stock exchange in the coming years.
We recall that in 2022 it sold 25% of the exploration and production business to the US fund EIG, valuing 100% of the exploration and production business at more than €19 billion.
We reiterate our recommendation to OVERWEIGHT with P.O. €19.5/share.
