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Equinor Divests Argentina Onshore Assets to Vista Energy for $1.1B
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Key Takeaways
Equinor agrees to sell its onshore Vaca Muerta stakes to Vista Energy for $1.1B, effective July 2025.
EQNR will receive $550M in cash, Vista shares and contingent payments tied to output and oil prices.
Equinor expects rising production and cash flow by 2030 from key assets in Brazil, the U.S. and the U.K.
Equinor ASA (EQNR - Free Report) signed an agreement to sell its onshore assets in Argentina’s Vaca Muerta basin to Vista Energy, S.A.B. de C.V. (VIST - Free Report) for $1.1 billion, while retaining its Vaca Muerta offshore assets.
Effective July 1, 2025, the sale covers Equinor’s non-operated stakes of 30% in the Bandurria Sur asset and 50% in the Bajo del Toro asset. EQNR’s retained Argentina offshore assets, whose license was acquired in 2019, are spread across the North Argentinian Basin, and the southern Austral and Malvinas basins.
Following the deal closure, the Norwegian energy company, EQNR, will receive a cash payment of $550 million and shares in Vista Energy, along with contingent payments linked to production and oil prices for more than five years. This transaction boosts cash flow and strengthens Equinor’s financial position while supporting increased investment in its key growth markets in the coming years.
By 2030, Equinor expects its international portfolio to deliver increased production and cash flow, driven mainly by its key assets in Brazil, the United States and the U.K. This will enhance the stability of its business model, resulting in increased investor appeal.
VIST currently carries a Zacks Rank #3 (Hold), while EQNR has a Zacks Rank #5 (Strong Sell).
With West Texas Intermediate crude prices hovering below $65 per barrel, according to oilprice.com, the business environment of EQNR’s upstream segment seems to be easing out. However, the U.S. Energy Information Administration (EIA) predicts the crude price to decrease further, implying that EQNR’s upstream business will remain under pressure in the coming days.
Some other players in the upstream space whose business models are exposed to crude price volatility are ConocoPhillips (COP - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . Like VIST, the business models of COP and FANG will remain under pressure in the coming days due to the EIA’s forecast of decreasing crude prices. FANG currently carries a Zacks Rank #3, while COP has a Zacks Rank #4 (Sell).
Headquartered in Houston, TX, ConocoPhillips has a presence in four North American unconventional fields – the Permian, Eagle Ford, Bakken and Montney.
Headquartered in Houston, TX, Diamondback Energy operates in the Permian basin, the most prolific basin in North America. FANG covers 862,000 Permian Basin acres, a significant increase from the 494,000 acres registered in 2023, per the company’s November presentation.
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Equinor Divests Argentina Onshore Assets to Vista Energy for $1.1B
Key Takeaways
Equinor ASA (EQNR - Free Report) signed an agreement to sell its onshore assets in Argentina’s Vaca Muerta basin to Vista Energy, S.A.B. de C.V. (VIST - Free Report) for $1.1 billion, while retaining its Vaca Muerta offshore assets.
Effective July 1, 2025, the sale covers Equinor’s non-operated stakes of 30% in the Bandurria Sur asset and 50% in the Bajo del Toro asset. EQNR’s retained Argentina offshore assets, whose license was acquired in 2019, are spread across the North Argentinian Basin, and the southern Austral and Malvinas basins.
Following the deal closure, the Norwegian energy company, EQNR, will receive a cash payment of $550 million and shares in Vista Energy, along with contingent payments linked to production and oil prices for more than five years. This transaction boosts cash flow and strengthens Equinor’s financial position while supporting increased investment in its key growth markets in the coming years.
By 2030, Equinor expects its international portfolio to deliver increased production and cash flow, driven mainly by its key assets in Brazil, the United States and the U.K. This will enhance the stability of its business model, resulting in increased investor appeal.
VIST currently carries a Zacks Rank #3 (Hold), while EQNR has a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With West Texas Intermediate crude prices hovering below $65 per barrel, according to oilprice.com, the business environment of EQNR’s upstream segment seems to be easing out. However, the U.S. Energy Information Administration (EIA) predicts the crude price to decrease further, implying that EQNR’s upstream business will remain under pressure in the coming days.
Some other players in the upstream space whose business models are exposed to crude price volatility are ConocoPhillips (COP - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) . Like VIST, the business models of COP and FANG will remain under pressure in the coming days due to the EIA’s forecast of decreasing crude prices. FANG currently carries a Zacks Rank #3, while COP has a Zacks Rank #4 (Sell).
Headquartered in Houston, TX, ConocoPhillips has a presence in four North American unconventional fields – the Permian, Eagle Ford, Bakken and Montney.
Headquartered in Houston, TX, Diamondback Energy operates in the Permian basin, the most prolific basin in North America. FANG covers 862,000 Permian Basin acres, a significant increase from the 494,000 acres registered in 2023, per the company’s November presentation.