Continental Resources to acquire 50% of Phoenix Global Resources

Continental Resources signed a heads of agreement to acquire a 50% interest in Phoenix Global Resources, the operator Mercuria Energy Group holds in Argentina's Vaca Muerta shale, the companies said Aug. 20, 2026. Once the deal closes, Continental and Mercuria will become equal owners of a new joint venture operating company built on Phoenix's existing Vaca Muerta position.

The joint venture

The joint venture is expected to grow Phoenix's production from 28 kboepd, or thousand barrels of oil equivalent per day, to more than 100 kboepd within five years. The companies expect to deploy more than $4 billion in capital over that period to fund the growth, positioning Phoenix to become one of the largest private operators and producers in Vaca Muerta. Continental will work alongside Mercuria and the Phoenix team on development planning, execution and performance across the combined acreage.

Asset base

The new operating company will hold about 163,000 net acres across six blocks in Vaca Muerta. The blocks combine Phoenix's interests in Mata Mora Norte, Mata Mora Sur, Confluencia Norte and Confluencia Sur, Continental's operated interest in Los Toldos II Oeste, and additional interests Continental is acquiring from the Bajo del Toro Este block, currently owned by Integra. The companies said the combined assets are expected to qualify under Argentina's Large Investment Incentive Regime, known as RIGI.

An existing partnership

Continental and Mercuria are already partners in the Pecos Power Plant, a 452-megawatt natural gas-fired power plant under development in West Texas. Doug Lawler, Continental's president and chief executive, credited reforms under President Milei's administration with driving Continental's interest in Argentina and said Vaca Muerta "is a world-class resource." Pablo Bizzotto, Phoenix's chief executive, said adding Continental as a joint venture partner brings "decades of unconventional development and operating expertise" to Phoenix's platform.

Phoenix is an Upstream operator focused on Vaca Muerta and other unconventional resources in Argentina's Neuquén and Río Negro provinces, and is majority owned by Mercuria. It is currently the sixth largest crude oil producer in Vaca Muerta. Continental, based in Oklahoma City, describes itself as the largest privately held oil and natural gas producer in the world, with US positions in the Bakken of North Dakota, South Dakota and Montana, Oklahoma's Anadarko Basin, Wyoming's Powder River Basin and the Permian Basin of Texas.

Timeline

The heads of agreement reflects the parties' current intentions. Closing depends on the negotiation and execution of definitive agreements, and on regulatory approvals.