EIG Global Energy Partners’ subsidiary Breakwater Energy has acquired a 25% interest in Repsol’s E&P global upstream oil and gas business Repsol Upstream for $4.8 billion, EIG announced in a March 2 press release.
Repsol Upstream is a newly-formed gas-weighted E&P, which owns and operates Respol’s global upstream assets totaling more than 600,000 boe/d of production in 15 countries, including in the U.S. Repsol’s business unit operates in the Marcellus Shale, Alaska’s North Slope, the Gulf of Mexico and, since 2020, the Eagle Ford Shale, according to its website.
EIG, an institutional investor, said the portfolio maintains a low carbon intensity and generates free cash flow to support a meaningful dividend. Repsol still owns 75%.
Repsol and EIG plan to list the business in the U.S. starting in 2026, subject to favorable market conditions.
“Repsol is a leader in the energy transition, and we are pleased to have completed this transaction with a global company that shares our commitment to reducing emissions while meeting the world’s energy demands,” said R. Blair Thomas, EIG chairman and CEO. “The transaction sets Repsol Upstream on a path toward an accelerated decarbonization future, strong cash flow generation and potential market liquidity.’’
EIG will have the right to nominate two directors to Repsol Upstream’s board, four more will be nominated by Repsol and two directors will be independent for a total of eight directors. EIG will also choose Repsol Upstream’s ESG director and another senior executive to lead special projects, including IPO preparation.
Goldman Sachs & Co LLC and J.P. Morgan financially advised EIG with the transaction. Goldman Sachs, J.P. Morgan and Lazard acted as capital markets advisers for the transaction’s financing. Latham & Watkins and Debevoise & Plimpton served as legal advisers to EIG.