• Total Production: 85,300 BOEs per day, 51% increase year over year, 17% increase quarter over quarter.
• Oil Production: 73,500 barrels per day, 52% increase year over year, 16% increase quarter over quarter.
• Total Revenues: $471 million, 52% increase year over year.
• Lifting Cost: $4.7 per BOE, almost flat quarter over quarter.
• Capital Expenditure: $340 million, with 11 wells drilled and 13 wells completed.
• Adjusted EBITDA: $273 million, 5% decrease year over year; 27% increase excluding export repatriation effects.
• Net Income: $94 million, EPS of $0.98 per share.
• Adjusted Net Income: $22 million after deducting deferred income tax.
• Free Cash Flow: $57 million during the quarter.
• Net Leverage Ratio: 0.63 times adjusted EBITDA.
• Realized Oil Price: $67.1 per barrel, 1% decrease year over year.
• Exported Oil: 3.6 million barrels, 79% increase year over year.
• Cash at Period-End: $764 million.
• Full-Year Adjusted EBITDA: $1.1 billion, 25% increase year over year.
• EPS for Full Year: $5 per share, 18% increase year over year.
• Share Price Increase: 83% from year-end 2023 to year-end 2024.
• Share Repurchase: $100 million at an average price of $48 per share.

• Warning! GuruFocus has detected 4 Warning Signs with CARS.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Vista Energy SAB de CV (NYSE:VIST) achieved a 51% increase in total production in Q4 2024 compared to the same quarter last year, driven by new oil activity in Vaca Muerta.
• The company reported a 52% year-over-year increase in total revenues for Q4 2024, reaching $471 million.
• Vista Energy SAB de CV (NYSE:VIST) successfully ramped up its new well activity from 31 new wells in 2023 to 50 in 2024, supporting robust production growth.
• The company achieved a significant reduction in greenhouse gas emissions, with a 44% decrease in emission intensity compared to the previous year.
• Vista Energy SAB de CV (NYSE:VIST) delivered an 83% increase in share price from year-end 2023 to year-end 2024, reflecting strong shareholder returns.

Negative Points

• Adjusted EBITDA for Q4 2024 was 5% lower on an inter-annual basis, partly due to a decrease in income from the repatriation of export proceeds.
• The company faced an 8% year-over-year increase in lifting costs per BOE, driven by inflation in US dollars and increased oilfield expenditures.
• Realized oil prices were slightly lower, with a 1% decrease on an inter-annual basis and a 2% decrease sequentially, impacting revenue growth.
• Vista Energy SAB de CV (NYSE:VIST) experienced a temporary increase in trucking expenditures, which impacted sales expenses by $25 million on a sequential basis.
• The company anticipates flat to slightly lower production in Q1 2025 due to logistical challenges and delays in well connections.

Q & A Highlights

Q: Can you discuss the production setup for the first quarter of 2025 and the expected trajectory for the rest of the year? A: Miguel Galuccio, CEO, explained that production in Q1 2025 is expected to be flat or slightly lower due to logistical planning around the Oldelval expansion. However, Vista plans to ramp up production significantly in Q3 and Q4 to achieve the annual target of 95,000 to 100,000 barrels per day, representing a 35% to 40% growth.

Q: Could you provide an update on the Vaca Muerta South expansion and its impact on production capacity? A: Miguel Galuccio, CEO, stated that the Vaca Muerta South project is progressing well, with key contracts signed and construction underway. The project is expected to be ready by mid-2027, providing an additional 50,000 barrels of oil per day capacity. The Oldelval expansion will be ready by Q2 2025, ensuring sufficient evacuation capacity in the interim.

Q: What factors does Vista consider when deciding to bring in additional drilling rigs, and what is the potential impact on well drilling guidance? A: Miguel Galuccio, CEO, mentioned that the decision to add a fourth drilling rig depends on securing evacuation capacity and favorable Brent prices. If conditions are met, Vista could consider increasing its well drilling guidance beyond the current 52 to 60 wells per year.

Q: How will the completion of the Oldelval pipeline impact Vista's costs and operations? A: Miguel Galuccio, CEO, confirmed that the Oldelval pipeline is operational, which will significantly reduce trucking costs that previously exceeded $20 per barrel. This reduction will positively impact EBITDA, as the pipeline will handle 31,500 barrels of oil per day for Vista.

Q: What is Vista's approach to potential M&A opportunities in Vaca Muerta? A: Miguel Galuccio, CEO, stated that Vista remains disciplined, pragmatic, and opportunistic regarding M&A. The company is prepared for potential opportunities that align with its focus on Vaca Muerta shale oil, maintaining a strategic and flexible approach to acquisitions.

Q: How does Vista plan to manage CapEx in light of potential Brent price volatility? A: Miguel Galuccio, CEO, explained that Vista's CapEx plan is based on Brent prices ranging from $70 to $80. If realized prices fall below $55, Vista may adjust its capital investment. The company maintains flexibility with short-cycle CapEx, allowing it to adapt quickly to market changes.

Q: What impact does the Argentine peso's strength have on Vista's lifting and CapEx costs? A: Miguel Galuccio, CEO, noted that while peso inflation has impacted costs, Vista expects these effects to diminish in 2025. The company anticipates a slight reduction in lifting costs, targeting $4.3 to $4.5 per barrel, and maintains a well cost estimate of $14 million to $14.5 million.

Q: Why doesn't Vista accelerate production growth by increasing equipment and well drilling in Argentina? A: Miguel Galuccio, CEO, emphasized that Vista is already achieving significant growth, with plans to increase production by 35% to 40% in 2025. The company focuses on optimizing reservoir management and NPV, balancing growth with operational efficiency and risk management.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.