Renta 4 | The company has bought an additional 16.67% in Block 29 of the Salina Basin, in the Gulf of Mexico, thus reaching 46.67%. Repsol was the first company to make a deepwater hydrocarbon discovery in this area in 2020, and is currently carrying out preparatory activities for the development of its Polok and Chinwol oil discoveries, which are expected to come on stream around 2028. Both wells confirmed high quality reservoirs with excellent properties.
Assessment: A priori positive news that increases the Company’s exposure in a strategic area, although without knowing the price paid it is difficult to assess. We recall that the Company’s strategy is to prepare the upstream business to go public in the US in 2026 or 2027, improving the quality of the portfolio, more focused on areas with competitive advantages and with greater potential for value creation and continuing with the rotation of assets in non-core jurisdictions, as well as working on the incorporation of partners to some of its large exploration and production assets in the US (Alaska, Eagle Ford) as a method to accelerate growth.
We reiterate our OVERWEIGHT recommendation at P.O. €19.5/share.
