REPYY News & Events

Roth Capital notes that Bloomberg is reporting that Repsol (REPYY) is considering a reverse merger of its upstream unit with potential partners, including APA Corp. (APA). While the firm says it is hard to evaluate such a possible combination without more details, it thinks APA shares "may get more of a bid in the near-term until there is more clarity on the situation." The firm keeps a Neutral rating and $23 price target on APA shares, which are up nearly 7% to $25.45 in late morning trading.

Repsol (REPYY) is considering a reverse merger of its upstream unit with potential partners, including APA Corp. (APA), people with knowledge of the matter told Bloomberg's Dinesh Nair and Rodrigo Orihuela. As the Spanish oil and gas company seeks ways to list the business in New York it has held exploratory discussions with APA, formerly known as Apache, about the possibility of a deal and has also held initial talks with other potential merger partners for the business, which previously was valued at $19B including debt when the company agreed in 2022 to sell a 25% stake to a private equity firm, the report noted.

Repsol is also holding talks with other potential partners and considering other options, sources told Bloomberg.