REPYY - Repsol in discussions to divest 25% of its oil and gas business

Repsol (OTCQX:REPYY), Spain's largest oil and gas producer, is reportedly in discussions with private equity giant EIG about divesting 25% of its upstream business. Repsol (OTCQX:REPYY) has struggled with its upstream assets for several years; after announcing the acquisition of Talisman in 2014, the company hoped to grow production to 900kb/d, but in the company's most recent outlook, management targeted 650kboe/d of production between 2021 and 2025. Conversely, the company operates some of the highest-quality refining assets in Europe, and has an aggressive energy transition plan. By selling 25% of the upstream Repsol (OTCQX:REPYY) could accelerate the company's low-carbon initiatives, a move that would be viewed favorably by regulators, though investors may not share the regulator's view. It's an interesting rumor, if true, as it shows some private equity managers are willing to take commodity risk by entering energy markets, a positive sign, after Blackstone (BX) elected to exit the

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Repsol in discussions to divest 25% of its oil and gas business