Vista Energy, S.A.B. de C.V. Q4 FY2025 earnings call

2025 was a year of many achievements for VISTA. The acquisition of 50% stake in La Marga Chica marked a major milestone, making VISTA the largest independent oil producer of Argentina. Held the third investor day and unveiled an updated strategic plan targeting to produce more than 200,000 DOEs per day by end of the decade. In Q4 2025, continued to deliver robust production growth. Achieved cost savings in lifting costs and DNC costs. Operational performance was excellent with total recordable incident rate remaining below one for the sixth consecutive year. Reduced COP 1 and 2 greenhouse gas emissions intensity by 23%. Delivered strong financial performance in 2025 with assisted EBITDA growth, and executed a share buyback program. Announced an agreement to acquire Equinor's assets in Vaca Muerta, which will enhance the portfolio.

In the fourth quarter of 2025, total production was 135,000 BOEs per day, an increase of 59% year - over - year and 7% quarter - over - quarter. Oil production was 118,000 barrels per day, with an interannual increase of 61% and 8% sequentially. Total revenues during the quarter were $689 million, 46% above the same quarter of the last year and 2% below the previous quarter. Lifting costs was $4.1 per VOE, 20% below year - over - year and 8% below Q3. Capital expenditure was $355 million. Associate VGA was $444 million, an interim increase of 62%. Net income was $86 million, with earnings per share of $0.8. Free cash flow was $76 million. Net leverage ratio at ERN was 1.5 times on a performance basis, flat quarter on quarter. For the full year 2025, T1 reserves increased by 57% year - over - year to 588 million BOEs, with a reserve replacement ratio of 605% and organic reserves replacement ratio of 260%. Assisted EBITDA grew 46% compared to the previous year, reaching $1.6 billion. Earnings per share amounted to $7 and ROC was 29%. A share buyback program of $50 million was executed.

2026 guidance includes total production of 140,000 BOEs per day, $1.5 to $1.6 billion of CAPEX, and $1.9 billion of adjusted EBDA assuming rent at $65 per barrel on average. 2025 achieved production, adjusted EBITDA and other metrics above guidance. Expect the acquisition of Equinor's assets to close around mid - May 2026 as it has filed relevant documents with the Chilean Antitrust Authority.

Q: Regarding the acquisition of Bandurria Sur, what are the next steps in terms of CapEx allocation?

A: The main milestone of Shell's right of fair refusal was cleared. Currently going through the Chilean antitrust process filed on February 11th. For the Equinor acquisition, currently focused on closing the deal and it's premature to comment on new plan. No issues with facilities in Bandurria Sur.

Q: How to think about options for using incremental cash generated in coming years?

A: Currently running between four and five rigs. Most cash will be allocated through capital allocation framework including buyback, dividends, M&As, and debt reductions.

Q: Comment on drilling and completion costs?

A: Made progress in reducing DNC costs through measures like using bulk wet sand, FRAC real - time monitoring tool, renegotiating contracts. Currently working on other cost reduction projects.

Q: Impact of recent inclusion of option business to RIGI on development plan?

A: New REI scheme is positive, incorporating Aftrin projects with benefits like accelerated amortization, tax reduction. Analyzing its applicability to some blocs.

Q: Efficiency measures supporting low lifting costs and trend for coming quarters?

A: Captured savings related to well services. Lifting cost in Q4 was $4.1. Plan for 2026 is to reduce lifting cost to 4.4. Q1 lifting costs may go sequentially upward due to one - off maintenance projects.

Q: Expectations for evolution of production, EBITDA and free cash flow in 2026?

A: 2026 plan includes 80 - 90 vuelta - ins. Production rate expected to have momentum in Q2 and Q4. Adjusted EBITDA expected to increase steadily. Free cash flow positive in Q2 and onward, around $150 - $200 million in 2026.

Q: Potential growth opportunity in Bandurria Sur and Bajo del Toro?

A: Bandurria Sur well - type curve similar to existing assets. Bajo del Toro has significant upside potential based on formation analysis. Stake in Bandurria Sur currently produces around 20,000 barrels of oil per day and can double by 2030. Bajo del Toro is in analysis phase for full development.

Q: Thoughts on trading arm BEISA and its help to unlock value?

A: BEISA is a fully - owned subsidiary for export - oriented strategy. Increases market reach, adds flexibility to short - term hedging program.

Q: Financing plan for acquisition of Valdel Toro and Mandu Resur?

A: Initial $387 million cash payment will be funded 100% with debt, and a bridge loan of $300 million of acquisition financing from top tier banks.

Q: Shareholder returns in constructive pricing scenario and buyback plan?

A: Considering current share price, plan to request extension of the $50 million share buyback program in coming shareholder meeting, likely larger than 2025's.

Q: Maintenance capex expectation?

A: Using 100,000 barrels per day production as reference, around 700 - 750 million dollars capex to keep production flat. With around 150,000 barrels per day by end of year including Equinor asset, need around $850 million capex to keep production flat.

Q: Relationship with YPF after acquisitions?

A: Relationship with YPF is great. Strategies are aligned, technical teams work together, capturing synergies like sharing geological information, well services, optimizing headcount.