Vista Energy (VIST, Financials) shares rose 10.77% to $44.73 as of 1:43 p.m. Eastern Time on Wednesday after the company announced a $1.2 billion acquisition of Petronas E&P Argentina, securing a 50% stake in the La Amarga Chica oil concession in Argentina's Vaca Muerta shale formation.

The purchase includes $900 million in cash, $300 million in deferred payments due in 2029 and 2030, and 7.3 million American Depositary Shares of Vista. Half of the shares will unlock in October 2025 and the remainder in April 2026.

The La Amarga Chica block spans 46,594 acres and produced 79,543 barrels of oil equivalent per day in the fourth quarter of 2024, with 71,471 barrels of that being crude oil, according to the Argentine Secretary of Energy. The asset had 280 million barrels of proven reserves at the end of 2023 and includes 247 producing wells.

Vista said the acquisition will increase its fourth-quarter 2024 production by 47% on a pro forma basis, bringing total output to 125,048 barrels of oil equivalent per day. The deal also adds an estimated 400 potential well locations.

The remaining 50% of the La Amarga Chica block is held by Argentina's state oil firm YPF.

Vista is funding the acquisition partly through a $300 million four-year credit facility with Banco Santander.

Petronas E&P Argentina, founded in 2014, posted $909 million in revenue and $349 million in net profit for 2024. It had an adjusted EBITDA of $667 million with a margin of 73%, according to pro forma financials provided by Vista.

The company also gains key midstream infrastructure, including 57,000 barrels per day in transportation capacity and 48,000 barrels per day in export capacity. Vista said the proximity of the acquired asset to its development hub will create cost synergies.

The La Amarga Chica concession expires in December 2049.