Repsol sells 25% of upstream to EIG for US$4.8 billion Report

Deal Insight 01 October 2022

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Report summary

Repsol has sold a 25% interest in its upstream business to private equity company EIG for US$4.8 billion. The deal had been rumoured for some weeks and follows Repsol's recent sell-down of a 25% stake in its renewables business. The main driver for Repsol's divestment is to provide visibility on the underlying value of the upstream business. Selling a stake to EIG allows Repsol to do this while maintaining control of the business and bringing in a strategic financial partner.

Executive summary
Transaction details
Upstream assets
- Overview
- Production
- Returns
Deal analysis
Upsides and risks
- Upsides
- Downsides
Strategic rationale
- Repsol
  - Restructuring for the transition
  - Resilience enhanced
- EIG
Oil & gas pricing and assumptions

Tables and charts

This report includes the following images and tables:

Executive summary: Table 1
Deal analysis: Table 1
Deal analysis: Table 2

Repsol's enterprise value versus sum-of-the-parts valuation
Deal analysis: Table 3
Oil & gas pricing and assumptions: Table 1
Oil & gas pricing and assumptions: Table 2
Repsol portfolio analysis by country
Repsol entitlement production
Newfield developments and yet-to-drill US investment: % of total development spend versus weighted average IRR; Repsol vs Euro Majors
Upstream assets: Table 1