Vista Energy, S.A.B. de C.V. Q1 FY2026 earnings call

Good progress in annual work program on back of robust new wealth productivity. Total production 135,000 VOEs/day, up 67% yoy. Oil production 117,000 bbls/day, up 68% yoy. Total revenues $394M, 58% above same quarter last year. Lifting costs $4.3 per VOE, 8% below yoy. Capital expenditure $391M. Adjusted EBITDA $451M, up 64% inter-annually. Net income $108M, EPS $1. Free cash flow -$341M, impacted by non-recurrent items. Net leverage ratio 1.7 times adjusted EVDA. Tied in 23 wells in Q1. Production increased from 127.4k BOEs/day in Jan to 143.2k BOEs/day in Mar. Total production Q1 averaged 134.7k BOEs/day. Oil production 116.7k bbls/day, up 68% yoy. Gas production up 62% yoy. Total revenues $694M, 58% above previous year, driven by oil production increase. Realized oil price $60.1 per barrel avg, down 12% yoy, up 2% seq. Lifting cost $4.3 per VOE, 8% below yoy. Selling expenses $3.8 per VOE, down 41% yoy. Adjusted EBITDA up 64% inter-annually. Adjusted EBITDA margin 65%, up 3 pts yoy. Cash flow from operating activities $86M. Cash flow used in investing activities $427M. Cash flow from financing activities $118M. Cash position $615M. Updated annual production guidance from 140,000 to 143,000 BOEs/day. CAPEX guidance unchanged, $1.5 - $1.6B. Different oil price scenarios for Q2 - Q4. Free cash flow guidance updated. Equinor acquisition expected to close early May, preliminary guidance updated after closing.

During the first quarter of 2026, total production was 135,000 VOEs per day, up 67% year over year. Oil production was 117,000 barrels per day, an increase of 68% vis-a-vis the previous year. Total revenues during the quarter were $394 million, 58% above the same quarter of last year. Lifting costs was $4.3 per VOE, 8% below year-over-year. Capital expenditure was $391 million. Adjusted EBITDA was $451 million, an inter-annual increase of 64%. Net income was $108 million, leading to earnings per share of $1 during the quarter. Free cash flow was minus $341 million, impacted by $331 million of non-recurrent items. Net leverage ratio at quarter end was 1.7 times adjusted EVDA. In Q1 2026, oil production was 116.7 thousand barrels per day, 68% higher year over year. Gas production increased 62% on an interannual basis. Total revenues were $694 million, 58% above the previous year. Lifting cost was $4.3 per VOE, 8% below the same quarter of last year. Adjusted EBITDA was $451 million, 64% higher inter-annually. Cash flow from operating activities was $86 million. Cash flow used in investing activities was $427 million. Cash flow from financing activities was $118 million. Cash position was $615 million at the end of the quarter.

Updated full-year production guidance from 140,000 to 143,000 BOEs/day. CAPEX guidance unchanged at $1.5 - $1.6B. In $85/bbl scenario, adjusted EBITDA guidance $2.6B. In $95/bbl scenario, adjusted EBITDA $2.9B. In $75/bbl scenario, adjusted EBITDA $2.3B. Free cash flow guidance increased. With Equinor acquisition, preliminary adjusted EBITDA guidance to increase to $3B assuming $85/bbl for Q2 - Q4.

Forward-looking statements subject to risks and uncertainties that could cause actual results to differ. Potential cost inflation in service costs like rigs, track crews, etc. Impact of working capital changes due to trading operations and hedging strategies.

Q: Regarding the revision of the guidance for production, walk us through the main drivers behind the increase in this year's production guidance?

A: The 23 wells tied in Q1 have very robust productivity, so we up the production guidance from 140 to 143 BOEs/day.

Q: On capital allocation, maintained CapEx guidance despite higher oil prices, what about capital allocation this year?

A: Priority is to regain financial flexibility, aim for net leverage ratio around 1, and use cash flow to pay down debt and complete share buyback.

Q: On pricing situation, commented on what's been secured in early Q2 and commercial strategy change?

A: Not changing commercial strategy, less than a third of Q2 production is priced at around $90/bbl, rest exposed to full price volatility.

Q: On cost inflation, seen early signs of service cost inflation?

A: Some tariff adjustment on contracts using gasoline prices, but cost reduction plan in place to offset effects.

Q: On new trading vehicle, how it operates and risk?

A: Trading vehicle creates new markets and captures additional margins, not taking trading risk, only covering sold volume for following month until delivery.

Q: On working capital impact on free cash flow in the quarter?

A: Ramp-up of VEISA operations has two one-offs: extended revenue collection cycle and short hedge leading to working capital change.

Q: On agreement with local refineries in Argentina?

A: Agreement to mitigate financial impact of high oil prices, applies to a third of local sales, rest at export parity.

Q: On Equinor deal, update on run rate and CapEx?

A: Closing in early May, CAPEX around $200M, assets producing ~20,000 bbl oil/day at Vista working interest, expected to generate ~$3B EBITDA.

Q: On Medanito discount to Brent?

A: Seen stronger Medanito differentials driven by supply tightness in Asia, trend expected to continue.

Q: On RIGI, plans for blocks?

A: Preparing documentation to apply for RIGI for Aguilamora and Bandurria Norte, plan to submit by end of Q2.

Q: On non-operated assets, contribution?

A: La Marga Chica performing well, production increased from ~38,000 bbls/day when acquired to ~48,000 bbls/day in Q1.

Q: On 2026 EBITDA and free cash flow guidance at different Brent prices?

A: Rule of thumb, every 10 increase in Brent between Q2 - Q4 leads to ~$275M EBITDA and $250M free cash flow increase.