Repsol is holding off on its plans to list its upstream business in the United States, even as the unit is structurally ready to go public.
Chief Executive Josu Jon Imaz said the company sees no urgency to move forward with an IPO or reverse merger in the near term, despite earlier indications that a liquidity event could take place in 2026. “We are comfortable in the current situation and we are not going to jump into a liquidity event in the short term,” Imaz said.
Imaz said upstream fundamentals are expected to improve further in the coming months. The company is waiting for that shift before taking the business to market.
Repsol had a strong quarter, with refining strength and market volatility thanks to the Iran conflict supporting its earnings. The company also benefited from higher margins and a tighter global system, which reduces pressure to unlock value through a listing.
Repsol sold a 25% stake in the upstream unit to EIG in 2022, valuing the business at about $19 billion, including debt. Both sides are aligned on holding off on any listing.
The portfolio spans Alaska, Brazil, Mexico, Libya and Venezuela. The Pikka project in Alaska is one of the main growth assets. In Venezuela, output is increasing with backing from both local authorities and U.S. approvals.
The strategy is to keep the asset running and wait for better pricing.
An IPO would shift the unit into a different capital framework and expose it directly to U.S. investor expectations on returns, growth, and capital discipline. That step is being held back until market conditions justify it.
For now, the upstream business is generating value inside the group, and there is no immediate need to separate it.
By Julianne Geiger for Oilprice.com
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