Expanding Oil Company Seeks to Purchase YPF Assets

Aconcagua Energía, an energy company established less than a decade ago, is planning to widen its reach by purchasing assets soon to be sold by YPF. The firm is also banking on the deregulations of the electricity and gas markets, a plan spearheaded by Javier Milei alongside Secretary of Energy Eduardo Rodríguez Chirillo and his advisor Federico Sturzenegger.

Established in 2015 as an oil company by two ex-YPF managers, Aconcagua Energía achieved significant growth through the acquisition of conventional assets in Mendoza and Río Negro. This led to an expansion into oil services, gas marketing, and electrical energy businesses, capped off by the acquisition of Orazul Energy in December.

In a conversation with Clarion, Javier Basso, the founder, vice president, and finance manager of Aconcagua Energía, revealed their diverse business lines in oil and gas, oil services, and electricity generation. Their journey began with renewables, but now they have a thermal power plant and a hydraulic dam, thanks to the acquisition of Orazul.

Basso expressed excitement about a small but potentially significant business opportunity in gas marketing. Currently, the Wholesale Electricity Market Administration Company (Cammesa) regulates the system as an unavoidable intermediary and demand aggregator. However, the system could soon revert to the 2018-2019 model, where oil companies, marketing firms, and generators negotiated supply contracts freely, resulting in better revenue.

Basso, together with Diego Trabucco, an industrial engineer, funded Aconcagua Energía with their savings. They identified a potential market niche in conventional areas amidst the Vaca Muerta boom. Their business strategy involves continued expansion as other oil firms focus almost exclusively on the Neuquén Basin.

Recently, Petrolera Aconcagua Energía (PAESA) doubled its reserves and earned an improved credit rating from Fix SCR, Fitch Ratings’ local affiliate. They reached the “A+” category in the local capital market. This endorsement will allow them to issue debt on the 27th of this month, securing between 20 and 40 million dollars to finance their investment plan.

The Bank of Services and Transactions (BST) is the organizer and placement agent for these four Negotiable Obligations (ON), with terms of 36 and 48 months. Two of these titles will be dollar-linked, and the other two will offer a fixed rate in dollars, expected to range from 5 to 7% annually.

In 2023, the group invested US$ 114 million, including the acquisition of Orazul Energy from the American investment fund Square Capital for US$ 9.2 million. They plan to spend approximately US$ 90 million this year.

Petrolera Aconcagua Energía alone achieved an EBITDA close to US$ 40 million, with a 30% margin. The company reached a production level of 13,200 barrels of oil equivalent per day and drilled nine wells.

Another factor that could bolster their business is the local crude oil market’s tendency towards international price levels. This means that the gasoline and diesel produced by Argentina are priced similarly to the global market. After years of significant disparity hurting producers’ potential, oil companies now earn between 65 and 66 dollars per barrel of crude oil, close to the international parity price of 70 to 72 dollars.