Vista Oil & Gas, S.A.B. de C.V.’s $800 Million Acquisition of a fully operational oil & gas platform from Pampa Energía S.A.


Bruchou, Fernández Madero & Lombardi, Creel, García-Cuéllar, Aiza y Enríquez, Errecondo, González & Funes, Shearman & Sterling and Ritch, Mueller, Heather y Nicolau advised on the deal

Vista Oil & Gas, S.A.B. de C.V. (BMV: VISTA), the first Mexican pure E&P listed company in the Mexican Stock Exchange, has agreed to acquire a fully operational oil & gas platform from Pampa Energía S.A. (“Pampa”) and Pluspetrol Resources Corporation (“Pluspetrol”) with interests in certain exploitation concessions, assessment blocks and exploration permits in Argentina (the “Acquired Assets” and collectively, the “Transaction”). The majority of the Acquired Assets are located in the Neuquina basin. After giving effect to the Transaction, Vista would become the fifth largest oil producer and operator in Argentina, according to the latest available information published by the Argentine Ministry of Energy and Mining.

Upon closing, Vista’s enterprise value at US$10.00 per share would be approximately US$860 million, implying a multiple of 4.5x and 3.0x projected calendar 2018 and 2019 EBITDA, respectively, and an equity value of US$960 million. Assuming the backstop credit facility described below is not drawn at closing of the Transaction, Vista expects to be debt-free and have US$100 million of cash on hand to fund future drilling and acquisitions.

As part of the consummation of the Transaction, Riverstone Vista Capital Partners, L.P., an affiliate of Riverstone, has agreed to acquire an additional 5,000,000 Series A Shares for an aggregate purchase price of US$50 million pursuant to a forward purchase agreement entered into at the time of Vista’s initial public offering. Furthermore, certain other investors, have also agreed to buy 10,000,000 Series A Shares of Vista, for an aggregate purchase price of US$100 million. These, in conjunction with the US$650 million initial public offering proceeds, brings total equity available to fund the Transaction to US$800 million. Vista has also entered into a commitment letter pursuant to which a credit facility, of up to US$300 million, may be used as backstop with the purpose of increasing the certainty of closing the Transaction.

Bruchou, Fernández Madero & Lombardi advised Vista Oil & Gas, S.A.B. de C.V. with Javier Rodríguez Galli (Picture), Exequiel Buenaventura, Aixa Sureda, Matías Leguizamon, María Agostina Milani, María Agustina Leppen, Hugo Bruzone, Andrés Chester, Pablo Nisim Schreiber and Emilio Díaz Reynolds.

Creel, García-Cuéllar, Aiza y Enríquez advised Vista Oil & Gas, S.A.B. de C.V. wtih Pedro Velasco, Carlos Zamarrón, Alejandro Santoyo, Emilio Aarún , María Luis Gutiérrez and Raúl Pérez.

Errecondo, González & Funes advised Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding with Javier Errecondo and Madeleine Blehaut.

In US, Shearman & Sterling advised Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding with Antonia Stolper, Denise Grant, Nathan Tasso, Paula Anderson, Augusto Ruiloba, Rita Ghanem, Devon Yamauchi and Benjamin Cohen.

In Mexico, Ritch, Mueller, Heather y Nicolau advised Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding with Luis Nicolau Gutiérrez and Natalia Deschamps Ramírez.

Involved fees earner: Javier Rodríguez Galli – Bruchou, Fernández Madero & Lombardi; Exequiel Buenaventura – Bruchou, Fernández Madero & Lombardi; Aixa Sureda – Bruchou, Fernández Madero & Lombardi; Matías Leguizamon – Bruchou, Fernández Madero & Lombardi; Hugo Bruzone – Bruchou, Fernández Madero & Lombardi; Andrés Chester – Bruchou, Fernández Madero & Lombardi; Pablo Nisim Schreiber – Bruchou, Fernández Madero & Lombardi; Emilio Díaz Reynolds – Bruchou, Fernández Madero & Lombardi; Javier Errecondo – Errecondo, Gonzalez & Funes ; Madeleine Bléhaut – Errecondo, Gonzalez & Funes ; Pedro Velasco – Creel, García-Cuéllar, Aiza y Enriquez SC; Carlos Zamarrón – Creel, García-Cuéllar, Aiza y Enriquez SC; Emilio Aarún Cordero – Creel, García-Cuéllar, Aiza y Enriquez SC; María Luis Gutiérrez – Creel, García-Cuéllar, Aiza y Enriquez SC; Alejandro Santoyo – Creel, García-Cuéllar, Aiza y Enriquez SC; Luis Nicolau Gutiérrez – Ritch, Mueller, Heather y Nicolau, SC; Natalia Deschamps Ramírez – Ritch, Mueller, Heather y Nicolau, SC; Antonia Stolper – Shearman & Sterling; Denise Grant – Shearman & Sterling; Augusto Ruiloba – Shearman & Sterling; Rita Ghanem – Shearman & Sterling; Nathan Tasso – Shearman & Sterling; Devon Yamauchi – Shearman & Sterling; Paula Howell Anderson – Shearman & Sterling;

Law Firms: Bruchou, Fernández Madero & Lombardi; Errecondo, Gonzalez & Funes ; Creel, García-Cuéllar, Aiza y Enriquez SC; Ritch, Mueller, Heather y Nicolau, SC; Shearman & Sterling;

Clients: Citigroup Global Markets Ltd; Credit Suisse Securities Limited; Morgan Stanley Senior Funding, Inc.; Vista Oil & Gas, S.A.B. de C.V.;