Repsol is holding off on an immediate U.S. listing for its upstream oil and gas unit, Chief Executive Josu Jon Imaz said on Thursday, tempering expectations for an initial public offering or a reverse merger in the near term. Imaz reaffirmed that the unit is technically prepared to enter U.S. markets, but indicated that company leaders see advantages in waiting for more favorable conditions.
Imaz had previously indicated late last year that the upstream business was being readied for a potential liquidity event in 2026, a process that could take the form of either an IPO or a reverse merger with a U.S.-listed company. On the recent conference call he emphasized that while the asset is ready "to go to the American market", Repsol is likely to delay such a move until upstream fundamentals improve further in coming months.
"We are comfortable in the current situation and we are not going to jump into a liquidity event in the short term,"
Imaz made the comment when asked about the timing and structure of a possible public listing for the upstream unit. He spoke after the company, Spain's biggest refinery operator, released quarterly results that the chief executive described as strong.
Imaz also said that Repsol and its partner in the upstream business, U.S. private equity fund EIG, which holds a 25% stake, "are fully aligned on this view." In 2022 Repsol sold the stake to EIG in a deal that valued the entire upstream business at $19 billion, including debt. That transaction included language allowing for a potential U.S. listing from 2026 onward, contingent on market conditions.
The upstream portfolio spans multiple countries. Assets are located in the United States - notably the Pikka oil project in Alaska, identified as one of Repsol's key growth developments - as well as operations in Brazil, Mexico, Libya and Venezuela.
Imaz highlighted progress across the upstream business, pointing to developments in Venezuela where he said production is increasing with support from both the Venezuelan government and U.S. authorities. He also noted advances in Alaska and Libya as signs of broad improvement in the unit's performance.
Repsol's decision to delay a U.S. liquidity event for its upstream arm reflects a preference to time any public offering or merger to when sector conditions are stronger, according to the company leadership and its partner.