Renta 4 | According to some media, Repsol may have put up for sale its stake in the Duvernay basin, in the west of Canada, which is still in the first phases of development. The 688 km2 in Duvernay could fetch a price of some 750 milion Canadian dollars. Repsol also has assets in the basins of Greater Edison and Chauvin in Alberta.
Valuation: It is already common knowledge since the presentation of Repsol’s latest strategic plan that the company has its Upstream assets under revision. Since then, there have been numerous asset sales and even exits from certain countries, which do not comply with the firm’s objectives. In Duvernay’s case, the projects are at an inital stage in their development, which requires more investment.
Duvernay is not amongst the 14 main projects on which the company wants to focus in 2021-2025.
The sale would be equivalent to 2.9% of its market cap. We reiterate our OVERWEIGHT stance with a T.P. of 13,30.