Shares in Vista Energy SAB, Argentina’s leading oil exporter, experienced a significant increase in New York on Monday following the announcement by tech billionaire Peter Thiel regarding his substantial investment in the company. Vista’s American depositary receipts increased by 4.9 percent to US$71.67 as of 10.49am in New York, marking the highest level in two months. The company’s Mexican stock increased by 5.5 percent, reaching 1,229 pesos per share. Thiel Macro LLC disclosed ownership of nearly 1.2 million shares in Vista at the conclusion of the second quarter, valued at approximately US$76 million.
The June 30 value of the fund’s position in Vista ranked second only to Amazon.com Inc, with Vista being the sole non-US company included in its holdings, as indicated in an Aug. 14 US regulatory filing. Thiel’s recent investment in Vista, which is leading the charge in the development of Argentina’s extensive shale oil reserves, coincides with his acquisition of a residence in Buenos Aires and his increased presence in Argentina throughout this year. That has led to speculation regarding the possibility of broader plans in the country. In April, he engaged in discussions with President Javier Milei, a compatriot in libertarian ideals, who is currently executing a free-market experiment in an economy that has been subject to extensive regulation for the past two decades.
Under Milei, Argentina has eliminated restrictions on oil prices and exports, while also re-establishing access to global financial markets. This has catalysed growth in the Vaca Muerta shale region in Patagonia, where the total production of crude oil and natural gas has already exceeded 1 million barrels per day. The boom is beginning to reshape Argentina’s economy. Following substantial acquisitions in the previous two years, Vista now generates approximately 160,000 barrels daily, with the majority earmarked for export. It has plans to further increase output and holds a stake in Argentina’s signature shale oil export project VMOS, which includes a pipeline and port currently under construction and set to commence operations next year.
American depositary receipts for Argentina’s largest shale producer, state-run YPF SA, increased by as much as 4.2 percent. Ezequiel Fernández, an equity analyst, indicated that news of Thiel’s stake in Vista could potentially catalyse a wider rally in the Argentine shale sector. On Monday, US-traded shares of peer TGS SA experienced a slight decline, whereas Pampa Energía SA saw a modest increase of 0.1 percent. “I wouldn’t expect a structural or long-lasting impact,” on the shares, Fernández said. “After all, Thiel isn’t a recognised oil investor.”
