Repsol sells its exploration and production assets in Canada to Peyto for 433 million euros

MADRID, 7 Sep. (EUROPA PRESS) -

Repsol has agreed to sell its oil and gas assets in Canada to the Peyto energy group for 468 million dollars (433 million euros), as part of its strategy to focus activity in the regions it considers key, as reported on Thursday by the company to the National Securities Market Commission (CNMV).

Repsol expects this transaction to close in mid-October, subject to customary closing conditions for this type of transaction, including receipt of any necessary regulatory approvals.

The agreement includes all mining rights, facilities and infrastructure related to Repsol's Canadian oil and gas exploration and production business, including the Greater Edson area assets, which have a net production of 23 barrels of oil equivalent. per day (kboe/d), mainly gas.

The company has explained that it is refocusing its exploration and production portfolio by rotating assets to concentrate and consolidate in key areas, preferably OECD countries, with a special focus on the United States.

The rationalization of the company's portfolio has been achieved through a series of divestments in non-strategic locations, reducing Repsol's presence in exploration and production from 25 to 14 countries after the sale of assets in Vietnam, Malaysia, Papua New Guinea, Australia, Greece, Morocco, Iraq, Bulgaria, Ecuador and Russia, and focusing new developments in key areas such as the United States and Brazil, as well as carrying out selective acquisitions in unconventional assets and in US waters.

Repsol has detailed that it maintains commercial and logistics operations in Canada through its St John LNG facility and its trading business.

The value of Repsol's current asset portfolio and long-term strategy for its exploration and production business was made visible through its association with EIG, which acquired a 25% stake for 4,800 million dollars (4,476 million euros ), valuing the unit at 19,000 million dollars (17,720.6 million euros) and exceeding the consensus of analysts.

"This agreement has made it possible to advance the company's goal of net zero emissions through a project that accelerates the transformation and reinforces its multi-energy profile, while reducing leverage and debt and maintaining a strong cash flow to finance a ambitious growth and attractive shareholder remuneration", the company highlighted.

RBC Capital Markets has acted as financial advisor to Repsol in the sale of assets to Peyto.