Vista Energy finalises $1.2bn acquisition of Petronas’ 50% stake in La Amarga Chica oil block

How is Vista Energy reshaping its Vaca Muerta strategy with the Petronas deal?

Vista Energy, S.A.B. de C.V. has completed a landmark acquisition that significantly strengthens its upstream portfolio in Argentina’s prolific Vaca Muerta formation. Through its subsidiary Vista Energy Argentina S.A.U., the company has acquired 100% of the capital stock of Petronas E&P Argentina S.A. (PEPASA), securing a 50% working interest in the unconventional La Amarga Chica (LACh) block from sellers Petronas Carigali Canada B.V. and Petronas Carigali International E&P B.V.

The transaction carries a total value of $1.2 billion, comprising $900 million in upfront cash, $300 million in deferred payments due in 2029 and 2030, and the issuance of 7.3 million American Depositary Shares (ADSs) of Vista Energy, which are subject to phased lock-up restrictions expiring in 2025 and 2026. With this strategic move, Vista Energy consolidates a significant share of production and midstream infrastructure within its operational hub in the Neuquina Basin, reinforcing its role as one of the leading unconventional oil and gas producers in Latin America.

What makes the La Amarga Chica oil field a strategic asset for Vista Energy?

Located in the black oil window of Argentina’s Vaca Muerta shale play, La Amarga Chica spans 46,594 acres and had 247 producing wells as of the end of 2024. The block reported an average production of 79,543 barrels of oil equivalent per day (boe/d) during Q4 2024 on a 100% working interest basis, including 71,471 barrels per day of oil. The site also holds 280 million barrels of oil equivalent (MMboe) in proved (P1) reserves as certified by Argentina’s Secretary of Energy at year-end 2023.

Vista Energy now becomes an equal partner alongside YPF S.A., the national energy company of Argentina and operator of the LACh concession. The joint venture agreement extends through December 2049, providing a long development window for future drilling and infrastructure optimisation. Vista estimates the field has up to 400 remaining drilling locations, suggesting decades of scalable production potential.

The location of the LACh block in close proximity to Vista’s existing development infrastructure creates natural synergies. Shared facilities and services, optimised well designs, and reduced surface facility duplication are expected to enhance capital efficiency and lower operating costs.

How does the acquisition impact Vista Energy’s production and financial outlook?

By absorbing PEPASA’s output, Vista Energy adds an equivalent of 47% of its Q4 2024 production to its portfolio, pushing its pro forma output to 125,048 boe/d. The deal also significantly enhances its reserve base and pipeline capacity, positioning the company to scale further without commensurate capital outlays in greenfield development.

PEPASA reported $909 million in revenue for 2024, supported by high-margin oil production. Adjusted EBITDA stood at $667 million, reflecting an EBITDA margin of 73%. Net income totalled $349 million for the fiscal year. These figures underscore the financial attractiveness of the asset, which aligns with Vista’s existing lifting costs, capital returns, and margin profiles.

The acquired company also brings with it strategic midstream infrastructure access. PEPASA has transportation and dispatch rights across several critical oil export pipelines. This includes 36,140 barrels per day (bbl/d) in the Oldelval system, 20,756 bbl/d in the Vaca Muerta Norte pipeline, and 27,080 bbl/d in export capacity at the OTE terminal. These assets are crucial for ensuring marketing flexibility and reducing transportation bottlenecks, particularly as Vaca Muerta production grows.

How has Vista Energy financed the Petronas Argentina transaction?

The acquisition has been funded through a combination of internal resources and new financing. Vista Energy Argentina entered into a credit agreement with Banco Santander S.A. for $300 million, structured over a four-year term. This funding supplemented Vista’s available cash and enabled the company to preserve liquidity for operational and capital expenditure needs in 2025 and beyond.

The deferred $300 million payment component is split evenly across 2029 and 2030, with no accrued interest, creating a back-loaded payment profile that improves short-term cash flow visibility. Meanwhile, the equity component involving ADSs helps preserve additional capital while aligning the sellers’ interests with Vista’s long-term performance through shareholding.

Why is Vaca Muerta considered a cornerstone of Argentina’s energy future?

Vaca Muerta is one of the world’s most promising shale oil and gas formations outside of North America, with estimates suggesting it contains over 16 billion barrels of recoverable hydrocarbons. Development in the region has historically been led by YPF, with growing participation from independent operators like Vista Energy.

The basin’s infrastructure has improved considerably in the past decade, with pipelines, processing facilities, and export terminals now in place to support full-field development. Government initiatives have sought to attract private capital and foreign investment by offering more flexible contractual terms, tax incentives, and currency repatriation frameworks.

Vista’s aggressive expansion aligns with broader industry trends of consolidation and capital discipline. By acquiring producing, cash-generating assets with infrastructure and future drilling inventory in place, companies are reducing geological and development risks while securing operational synergies.

What are the strategic implications for Vista Energy going forward?

With this acquisition, Vista Energy has significantly bolstered its scale, reserves, and market position in Argentina’s upstream sector. The company is now better positioned to accelerate free cash flow generation, maintain low lifting costs, and deploy capital efficiently across its enlarged asset base.

The transaction also reflects a growing emphasis on consolidation within Argentina’s energy landscape. With Petronas exiting its direct operations in the region, the move highlights a broader rebalancing of international portfolios, where companies are refocusing capital on lower-risk or core geographies.

Vista’s deal structure—blending cash, equity, and deferred components—also signals financial prudence and a long-term vision for shareholder value creation. The increased midstream access further de-risks future production expansions and enhances pricing flexibility at a time when global energy markets are increasingly volatile.

As the industry continues to shift toward capital-efficient growth, Vista’s acquisition of PEPASA marks a decisive step in its strategy to scale production without sacrificing returns. The company’s positioning within Vaca Muerta now reflects a top-tier acreage portfolio, operational control synergies, and substantial headroom for drilling-led growth well into the 2030s.