Vista Energy SAB de CV Q1 FY2025 earnings call

• Announced the acquisition of Petronas Argentina, which is transformational, adding 50% of La Amarga Chica with significant acreage, reserves, and production capacity.
• In Q1 2025, production increased 47% YOY with 49 wells connected in the last 12 months. The Oldelval Duplicar pipeline was inaugurated, reducing selling expenses and trucking volumes.
• Total revenues were $438 million, driven by strong oil production. Adjusted EBITDA was $275 million, 25% higher YOY. Cash flow from operating activities was $66 million, while cash flow used in investing activities was $310 million and from financing activities was $219 million.
• The acquisition of Petronas Argentina brings material production flow, EBITDA generation, and enlarges the inventory with an estimated 200 wells to be drilled at 50% working interest.

In the first quarter of 2025, Vista achieved robust growth. Production was 80,900 BOEs per day, an increase of 47% year-over-year. Oil production was 69,600 barrels per day, also 47% year-over-year. Total revenues were $438 million, 38% above the same quarter of the previous year. Lifting cost was $4.7 per BOE, 8% above year-over-year. Adjusted EBITDA was $275 million, an interannual increase of 25%. Net income was $83 million with a quarterly EPS of $0.9 per share. Free cash flow was minus $243 million during the quarter, and the net leverage ratio at quarter end was 0.84x adjusted EBITDA.

• Removed 2025 market guidance and will present updated guidance in the Q2 earnings call.
• Expect production to increase in Q2, with north of 110k BOEs per day expected. Plan to accelerate the ambition to reach 150,000 barrels per day by 2030.
• Reassessing the CapEx plan and working on a revised plan that considers the new production from the acquisition.

Q: Alejandro Demichelis asked about the synergies from the Petronas Argentina acquisition, how long it would take to achieve them and discussions with the operator.

A: Miguel Galuccio said synergies include transportation capacity, sharing oil treatment facilities, optimizing well drilling near block borders, and reducing well contraction costs through sharing best practices.

Q: Bruno Montanari asked about Q2 expectations.

A: Miguel Galuccio said Q2 production should see a sharp increase, with north of 110k BOEs per day expected, and no change in drilling or CapEx plans currently.

Q: Daniel Guardiola asked about leverage deterioration and free cash flow.

A: Miguel Galuccio said net leverage ratio post-acquisition is around 1x adjusted EBITDA, expecting it to be below 1.5x, and Petronas acquisition extends cash flow profile with reassessment of plans and new guidance in Q2.

Q: Andres Cardona asked about Q1 production decline vs Q4 and La Amarga Chica's performance.

A: Miguel Galuccio said La Amarga Chica production picked up in Q1, with expected pickup in Q2 with 10 new well tie-ins in May and June.

Q: Rodolfo Angele asked about long-term volumes.

A: Miguel Galuccio said they plan to accelerate to reach 150,000 barrels per day by 2030, with the acquisition aiding this ambition.

Q: Leonardo Marcondes asked about future M&A.

A: Miguel Galuccio said they will continue assessing M&A opportunities, maintaining discipline for value accretion and strategic fit.

Q: Vicente Falanga asked about operational advantages of La Amarga Chica vs Bajada del Palo Este.

A: Miguel Galuccio said both are great assets in Vaca Muerta core, comparable in rock quality and productivity, with potential for synergy through cooperation with YPF.

Q: Kevin MacCurdy asked about Brent oil price outlook.

A: Miguel Galuccio said oil prices are volatile, but fundamentals for long-term oil demand are strong, and Q2 guidance will provide more precision.

Q: George Gasztowtt asked about trucking phasing out.

A: Miguel Galuccio said with new midstream capacity, trucking is nearly phased out, and new plan will consider tracking capacity if needed.

Q: Victor Modanese asked about completion of Petronas Argentina acquisition.

A: Miguel Galuccio said the transaction is complete, with no regulatory approvals pending.

Q: Bruno Amorim asked about impact of acquisition on existing plans.

A: Miguel Galuccio said they are working on revised plans, incorporating new production, reassessing CapEx, and expect stronger free cash flow with new guidance in Q2.