Argentina shale driller Vista Energy jumps as Peter Thiel logs stake

Shares in Vista Energy SAB, Argentina's leading oil exporter, surged in New York on Monday following tech mogul Peter Thiel's announcement of a significant stake in the company. Vista's American depositary receipts climbed 4.9 percent to US$71.67, marking the highest level in two months. The Mexican stock also rose 5.5 percent to 1,229 pesos per share.

Thiel Macro LLC reported owning nearly 1.2 million shares in Vista at the end of the second quarter, valued at approximately US$76 million. This position was only second to Amazon.com Inc in the fund's holdings, according to a US regulatory filing dated August 14. Thiel's new investment in Vista, which is at the forefront of Argentina's extensive shale oil development, follows his recent purchase of a home in Buenos Aires and his frequent visits to the country this year.

These factors have fueled speculation about potential broader plans for Argentina. In April, Thiel met with President Javier Milei, another libertarian, who is implementing a free-market experiment in an economy that was heavily regulated for two decades. Under Milei, Argentina has eliminated controls on oil prices and exports, regaining access to global financial markets and sparking growth in its Vaca Muerta shale region in Patagonia, where combined crude and natural gas production has already exceeded 1 million barrels a day.

The boom is beginning to reshape Argentina's economy. Vista currently produces around 160,000 barrels a day, most of which it exports, with plans to further increase output. The company also holds a stake in Argentina's flagship shale oil export project, VMOS, a pipeline and port set to commence operations next year. American depositary receipts for Argentina's leading shale producer, state-owned YPF SA, also rose up to 4.2 percent.

Ezequiel Fernández, an equity analyst at Balanz Capital in Buenos Aires, suggested that news of Thiel's stake in Vista could spark a broader rally in Argentine shale shares. However, US-traded shares in peer TGS SA fell on Monday, while Pampa Energía SA only increased by 0.1 percent. Fernández noted that he does not anticipate a structural or long-term impact on the shares, as Thiel is not a recognized oil investor.