Repsol buys Equinor stake in Eagle Ford

Repsol has reached an agreement with Equinor to acquire its stake in Eagle Ford (Texas), through which it gains control of 100% of this asset and becomes the operator.
The added stake in this asset will allow improvements in operations and synergies, and progress in the achievement of strategic goals associated to portfolio upgrading, profitable growth and increased returns.

Press release

07 November 2019 - 21:15 CET PDF 149 KB Download

Repsol has acquired the 63% stake that its partner Equinor owned in Eagle Ford, a producing asset in Texas (United States), for $325 million. Repsol will therefore own 100% of the working interest and be the operator of the asset.

This agreement will allow Repsol to improve the management of its producing assets portfolio and take advantage of operating synergies that will translate into higher efficiencies.

The acquisition is aligned with Repsol’s 2018-2020 Strategic Plan, which identifies North America as a key business area due to the extensive existing infrastructure and the stability of the regulatory framework.

The agreement is included in the planned investments for 2018-2020 in the Upstream unit, totaling 8 billion euros and is part of the company’s asset rotation policy that aims to achieve a balanced and profitable portfolio and bring forward the achievement of the strategic priorities of portfolio upgrading, profitable growth and increased returns.

Repsol is acquiring approximately 70,000 net acres and 34,000 barrels of oil equivalent a day of production so that total output for Repsol at Eagle Ford after the agreement will reach approximately 54 thousand barrels of oil equivalent a day.

The information included in this document is published pursuant to the provision of article 226 of the Spanish Securities Market Law.

This document contains statements that Repsol believes constitute forward-looking statements which may include statements regarding the intent, belief, or current expectations of Repsol and its management, including statements with respect to trends affecting Repsol’s financial condition, financial ratios, results of operations, business, strategy, geographic concentration, production volume and reserves, capital expenditures, costs savings, investments and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates and are generally identified by the words “expects”, “anticipates”, “forecasts”, “believes”, estimates”, “notices” and similar expressions. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond Repsol’s control or may be difficult to predict. Within those risks are those factors described in the filings made by Repsol and its affiliates with the Comisión Nacional del Mercado de Valores in Spain and with any other supervisory authority of those markets where the securities issued by Repsol and/or its affiliates are listed.

Repsol does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized.

This document does not constitute an offer or invitation to purchase or subscribe shares, pursuant to the provisions of the Royal Legislative Decree 4/2015 of the 23rd of October approving the recast text of the Spanish Securities Market Law and its implementing regulations. In addition, this document does not constitute an offer to purchase, sell, or exchange, neither a request for an offer of purchase, sale or exchange of securities in any other jurisdiction.

The information contained in the document has not been verified or revised by the External Auditors of Repsol.