Published: August 24, 2026 |

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Mercuria Energy Group, held Phoenix Global Resources, said Continental Resources has signed a heads of agreement (HOA) outlining a proposed transaction where Continental will acquire a 50 percent interest in Phoenix.

Upon completion of the transaction, Mercuria and Continental will become equal owners, forming a 50/50 joint venture operating company focused on the continued development and expansion of Phoenix’s position in Argentina’s Vaca Muerta.

“The reforms led by President Milei and his administration generated our interest in Argentina and strengthened our confidence in its future, ultimately helping pave the way for this significant partnership. Mercuria has been an exceptional partner, and we have tremendous respect for the strong operating platform and track record Phoenix has established in Vaca Muerta,” said Doug Lawler, Continental president and chief executive officer.

“Vaca Muerta is a world-class resource, and we believe the combination of Argentina’s tremendous potential, Phoenix’s established capabilities and Continental’s unconventional development expertise can help further establish the country as a global oil and natural gas leader,” added Lawler.

“Our partnership with Continental continues to grow, and this transaction is a natural extension of that relationship into one of the world’s premier shale plays. Together with Phoenix’s operating platform, we now add Continental’s technical depth paired with a joint commitment to further invest in Argentina to build one of Vaca Muerta’s leading independent producers,” said Brian Falik, Mercuria global chief investment officer.

The proposed transaction represents a significant expansion of Continental’s investment in Argentina and establishes another partnership with Mercuria. The combination of Mercuria’s global energy and investment capabilities, Continental’s decades of experience developing unconventional resources at scale across some of the most prolific oil and natural gas basins in the United States, and Phoenix’s established operating platform and deep knowledge of Vaca Muerta, creates a strong foundation for the next phase of development and growth.

As a joint venture partner, Continental will work alongside Mercuria and the Phoenix team, applying the combined technical, operational and subsurface capabilities to enhance development planning, execution, and performance across an expanding asset base.

“Phoenix has built a disciplined, technically strong operating platform with a team that brings deep knowledge and experience in Vaca Muerta. Bringing Continental into Phoenix as a JV operating partner, alongside Mercuria, adds decades of unconventional development and operating expertise that will strengthen our capabilities as we enter the next phase of growth,” said Pablo Bizzotto, Phoenix chief executive officer.

“By combining Phoenix’s established operating platform and knowledge of Vaca Muerta with Continental’s technical and operational experience developing unconventional resources at scale, we believe we have an exceptional opportunity to expand development and build one of the leading independent operators in the basin,” added Bizzotto.

The joint venture is expected to grow Phoenix’s production from 28 kboepd to more than 100 kboepd in the next five years. More than $4 billion in capital deployment is expected over the next five years to support that growth, positioning Phoenix to become one of the largest private operators and producers in Vaca Muerta.

The newly formed joint venture operating company will hold approximately 163,000 net acres across six blocks in Vaca Muerta, bringing together 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 being acquired from Bajo del Toro Este block currently owned by Integra.

The proposed joint venture builds on the existing relationship between Mercuria and Continental. The companies are also partners in the Pecos Power Plant, a 452-megawatt natural gas-fired power generation facility currently under development in West Texas.

The HOA reflects the parties’ current intentions regarding the proposed transaction. Completion of the transaction is subject to the negotiation and execution of definitive agreements, satisfaction of applicable closing conditions, and receipt of any required regulatory approvals.

Continental Resources is the largest privately held oil and natural gas producer in the world. Headquartered in Oklahoma City, Oklahoma, Continental has a long track record of innovation in unconventional resource development. Continental is one of the largest leaseholders and producers in the Bakken play of North Dakota and Montana and is the largest producer in the Anadarko Basin of Oklahoma. The company also holds a leading resource position across a multi-basin U.S. portfolio, including being the second-largest leaseholder in Wyoming’s Powder River Basin and holding a large position in the Permian Basin of Texas. Internationally, Continental is applying the same technical rigor and long-term development mindset to new opportunities, including a joint venture with Türkiye’s national oil company (TPAO) and TransAtlantic Petroleum to develop unconventional resources in the Diyarbakır Basin in Türkiye, while continuing to build its position in Argentina’s Vaca Muerta shale play.

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