Vista Acquires Equinor’s Vaca Muerta Assets, Reinforcing Core Acreage Position
Low-cost, oil-weighted production supports credit, despite YPF-operated structure
Vista Energy announced an agreement to acquire Equinor’s onshore unconventional assets in Argentina’s Vaca Muerta basin, marking another step in the company’s strategy to consolidate scale in the core of the shale play. The transaction involves the acquisition of non-operating working interests in two producing blocks, Bandurria Sur and Bajo del Toro, both operated by YPF. Vista will acquire a 25.1% interest in Bandurria Sur and a 35.0% interest in Bajo del Toro, while YPF will remain operator of both assets. Following completion, YPF will hold a 44.9% interest in Bandurria Sur and a 65.0% interest in Bajo del Toro, with Shell Argentina retaining a 30.0% stake in Bandurria Sur. The acquisition is subject to customary conditions precedent, including regulatory approvals and the waiver or non-exercise of pre-emptive rights held by partners. YPF has already signed a waiver of its pre-emptive rights, subject to Shell Argentina’s decision regarding its own rights. Closing is expected in 2Q26.
The transaction value is framed differently by the parties. Equinor disclosed a headline value of approximately $1.1 billion, which includes upfront consideration, Vista equity, and contingent payments linked to production and oil prices over a five-year period. Vista, in turn, reported a transaction value of $712 million, which excludes contingent payments and the value of interests sold to YPF as part of the broader restructuring, thereby explaining most of the difference versus Equinor’s headline valuation.
Upfront consideration consists of $387 million in cash.
6.2 million Vista ADSs, valued at US$52.2 per share based on a 20-day volume-weighted average price.
A contingent consideration mechanism payable in five annual installments, calculated based on the acquired assets’ annual working interest production and the prior year’s average Brent price. No payment is due if Brent is at or below $65 per barrel, with payments capped at $15 per barrel at or above $80 per barrel.
To fund the transaction, Vista expects to use a combination of cash on hand and new bank financing. The company indicated that it has secured commitments for a new four-year loan facility of up to $600 million from a consortium of international banks, with the final amount to be determined at closing.
The assets are located in the core of Vaca Muerta and are adjacent to Vista’s existing operations, which management views as supportive of operational synergies and improved development efficiency. Upon closing, Vista expects to add approximately 22,000 boe/d of production, increasing total output by around 17% to roughly 150,000 boe/d. The transaction also adds an estimated 54 million boe of proved reserves and approximately 27,730 net acres in what Vista describes as the epicenter of the basin, together with a sizable inventory of ready-to-drill wells. Bandurria Sur is a mature unconventional concession awarded in 2015 with a 35-year term, while Bajo del Toro and Bajo del Toro Norte were awarded in 2021, also with 35-year terms.
According to company disclosures, the acquired assets generated $292 million of revenues over 9M25, of which $283 million were oil-related, implying a highly oil-weighted cash flow profile. On an annualized basis, revenues reach approximately $391 million, supporting adjusted EBITDA of $269 million. Cost metrics are competitive by Vaca Muerta standards, with lifting costs of $4.7/boe and selling expenses of $4.4/boe, underscoring the low-cost nature of the production base. Notably, approximately 64% of oil production is exported, reinforcing hard-currency cash generation and aligning the asset profile with Argentina’s broader export-driven shale strategy.
