Vista Energy Q1 2025 Earnings Report

Vista Energy EPS Results

• Actual EPS: $0.79
• Consensus EPS: $0.82
• Beat/Miss: Missed by -$0.03
• One Year Ago EPS: N/A

Vista Energy Revenue Results

• Actual Revenue: $420.80 million
• Expected Revenue: $472.61 million
• Beat/Miss: Missed by -$51.81 million
• YoY Revenue Growth: N/A

Vista Energy Announcement Details

• Quarter: Q1 2025
• Date: 4/23/2025
• Time: After Market Closes
• Conference Call Date: Thursday, April 24, 2025
• Conference Call Time: 9:00AM ET

Vista Energy (NYSE:VIST), through its subsidiaries, engages in the exploration and production of oil and gas in Latin America. The company's principal assets located in Neuquina basin, Argentina and Vaca Muerta. It owns producing assets in Argentina and Mexico. In addition, the company involved in drilling and workover activities located in Argentina. The company was formerly known as Vista Oil & Gas, S.A.B. de C.V. and changed its name to Vista Energy, S.A.B. de C.V. in April 2022. Vista Energy, S.A.B. de C.V. was incorporated in 2017 and is based in Mexico City, Mexico.

Vista Energy Q1 2025 Earnings Call Transcript

Key Takeaways

• Production surged 47% year-over-year to 80,009 BOE/d in Q1, driving total revenues to $438 million, a 38% increase versus Q1 2024.
• Adjusted EBITDA grew 25% year-over-year to $275 million and the net leverage ratio remained strong at 0.84x of EBITDA.
• The inauguration of the Oldelba duplicate pipeline added 31,500 bbl/d of capacity, cutting trucking expenses to zero by end-Q3 and reducing selling costs by $27.7 million sequentially.
• The acquisition of 50% of La Amarga Chica from Petronas Argentina adds ~39,800 BOE/d, 140 million BOE of P1 reserves and enhances Vista’s low-cost, high-margin production at highly accretive multiples.
• Vista has withdrawn its 2025 guidance to integrate the new asset and will provide an updated plan and long-term targets during the Q2 earnings call.

Presentation

[Operator]

Good day and thank you for standing by. Welcome to Vista First Quarter twenty twenty five Earnings Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone.

[Operator]

You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alejandro Chernikov, Vista's Strategic Planning and Investor Relations Officer. Please go ahead.

[Alejandro Cherñacov, Co-Founder and Strategic Planning & Investor Relations Officer at Vista Energy]

Thanks. Good morning, everyone. We are happy to welcome you to Vista's first quarter of twenty twenty five results conference call. I am here with Miguel Gallucho, Vista's Chairman and CEO Paulo Verapinto, Vista's CFO Juan Garobi, Vista's CTO and Maria Huisel, Vista's COO. Before we begin, I would like to draw your attention to our cautionary statement on slide two.

[Alejandro Cherñacov, Co-Founder and Strategic Planning & Investor Relations Officer at Vista Energy]

Please be advised that our remarks today, including the answers to your questions, may include forward looking statements. These forward looking statements are subject to risks and uncertainties that could cause actual results to be materially different from expectations contemplated by these remarks. Our financial figures are stated in U. S. Dollars and in accordance with International Financial Reporting Standards, IFRS.

[Alejandro Cherñacov, Co-Founder and Strategic Planning & Investor Relations Officer at Vista Energy]

However, during this conference call, we may discuss certain non IFRS financial measures such as adjusted EBITDA. Reconciliation of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday, so please check our website for further information. Our company I will now turn the call over to Miguel.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Thanks, Ale. Good morning, everyone, and welcome to the returning call.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

As you know, last week, we announced the acquisition of Petronas Argentina. I am personally thrilled by the consolidation of 50% of La Amarga Chica, a low cost, high return asset which is transformational for Vista providing us with a significant large scale. The acquisition brings material flow in production and substantial EBITDA generation, which will strengthen our cash flow profile going forward. Today, I will first go through the quarterly results, then into the details of the acquisition and its merit and the last I will do a Q and A session. During the first quarter of twenty twenty five, we continued to deliver robust growth year over year.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

We also recorded a major milestone with the inauguration of Oldelbao duplicate pipeline, reducing significantly our selling expenses as we scaled down the use of truck to zero by the end of the third quarter. In Q1 twenty twenty five, production was 80,009 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 during the quarter were $438,000,000 30 8 percent above the same quarter of last year. Lifting cost was $4.7 per BOE, 8% above year over year.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Capital expenditure was $268,000,000 driven by 16 wells drilled and 10 wells completed during the quarter, plus $49,000,000 in development facilities. Adjusted EBITDA was $275,000,000 an interannual increase of 25%. Net income was $83,000,000 implying a quarterly EPS of $0.9 per share. Free cash flow was minus $243,000,000 during the quarter as we initiated a year of a very strong growth. And finally, net leverage ratio at quarter end remained strong at 0.84x adjusted EBITDA.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

During Q1, we recorded another quarter of double digit in the annual production growth. This reflects a strong performance from our development hub with 49 wells connected in the last twelve months. We tied in 10 wells in the quarter, back loading activity to make better use of all the Valpoline expansion and minimize trucking expenses. Total production at 80,900 boils per day was 47% above the same quarter of last year and as expected 5% below Q4 twenty twenty four. Oil production was 69,600 barrels of oil per day, 47% above year over year.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And gas production increased 42% on an interannual basis. In Q1 twenty twenty five, total revenues were $438,000,000 30 8 percent higher year over year, driven by the strong increase in oil production. On a sequential basis, the relatively lower increase in total revenues compared to the 47% increase in oil production reflects an inventory buildup of 360,000 barrel points, which will be reflected in the sales of Q2. Realized oil price was $68.6 per barrel on average, down 2% on an interannual basis, mainly driven by the lower international prices. Export realization prices were $68 per barrel with 43,200,000 barrels of oil during the quarter, twice as much as during the same quarter of 2024.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Domestic realization prices were $69.4 per barrel, including volumes sold at export parity. We continue to increase the domestic volumes sold at export parity pricing. During Q1, '70 '8 percent of our domestic volumes and 90% of our total volumes were sold at export parity. Listing cost during Q1 was $4.7 per BOE, flat on a sequential basis reflecting successful cost control despite the lower volumes and the underlying USD cost inflation. Selling expenses per BOE came down 19 on a sequential basis, driven by savings in truck costs, which totaled $27,700,000 13 point 7 million dollars below Q4 twenty twenty four.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

The connection of all the Elba duplicate pipeline during the quarter enabled us to gradually reduce trucking volumes. Importantly, expansion capacity is now fully available. We have incorporated 31,500 barrels of oil per day of pipeline capacity and we forecast not tracking in Q2. Adjusted EBITDA during the quarter was $275,000,000 20 5 percent higher on an interannual basis and flat compared with Q4 twenty twenty four. Adjusted EBITDA margin expanded five percentage points on a sequential basis, driven by higher oil prices and lower selling expenses.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Driven by the same factors, our netback expanded 9% during the quarter to $37.8 per BOE. During Q1 twenty twenty five, cash flow from operating activities was $66,000,000 reflecting an increase in working capital of $59,000,000 and unbanked payment for metering expansion of $36,000,000 Cash flow used in investing activities was $310,000,000 reflecting accrued CapEx of two sixty eight million dollars an increase of $18,000,000 in working capital and an investment in Vaca Muerta Sur of $29,000,000 Free cash flow during the quarter was therefore minus $243,000,000 Cash flow from financing activities was $219,000,000 reflecting proceeds from borrowings of $341,000,000 and partially offset by the repayment of borrowings of $99,000,000 Finally, cash at period end was $740,000,000 and our net leverage ratio stood at 0.84 times adjusted EBITDA. We will now deep dive into the acquisition of Petronas Argentina, which we announced last week. The purchase price was composed of $900,000,000 in cash, a deferred cash payment of $300,000,000 at zero interest and 7,300,000.0 Vista shares. This payment equates to an NPV of approximately 1,300,000,000 leading to a highly accretive acquisition multiples.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

With this transaction we closed last week, we started the consolidation of 50% of La Margha Chica as April 15, a material addition to our portfolio. La Margha Chica spanned 46,000 acres in the core of Vaca Muerta and is right next to Bajada Del Palo Estee and Aguada Ferral. At our share, we estimate it has an inventory of 200 wells to be drilled, increasing and enhancing VISTAS inventory. At our 50% P1 reserves were 140,000,000 BOEs as filed at year end twenty twenty three, a significant addition to the three seventy five million BOEs of P1 reserves booked by Vista. With the two forty seven wells on production at year end twenty twenty four, La Amarga Chica has a solid history of robust well productivity and low lifting costs, very comparable to our development hub.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

It is also the second largest producing block in Vaca Muerta. Production was 79,500 BOEs per day in Q4 twenty twenty four, implying that our 50% we have consolidated 39,800 BOEs per day. This leads to a pro form a production of 125,000 BOEs per day for such a period, of which 109,000 are old. PetroNAS Argentina has secured a material amount of transportation and dispatch midstream sector. Combining the Vaca Muerta Norte and the Odel Valle line, we are adding 57,000 barrels of oil per day of field transportation, 90,000 in Odelba open access, 70,000 in Duplicar and 21,000 in Vaca Muerta Norte.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Based on Q4 twenty twenty four production data, more than 20,000 barrels per day or around 40% of this capacity was either providing ample room for growth and synergies with our development hub. With this strategic transaction, we are doubling down on Vaca Muerta, increasing our exposure to short cycle low breakeven shell assets. This deal improves our short and medium term cash flow profile as well as our long term value proposition for shareholders. This constitutes a highly accretive transaction for our shareholders. A debt to EBITDA of two times, EBITDA per flowing barrel of $33,000 and price to earnings of 3.8 times.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

The transaction multiples comparable very positively to Vista's own trading metrics. We have consolidated a low cost, high margin cash generating asset. La Amarga Chica lifting cost was $4.1 per BOE in 2024, reflecting a robust operating model and solid well productivity. On pro form a basis for 2024, the acquired company improved our adjusted EBITDA by 61%, strengthening our cash flow profile. On the same basis, adjusted EBITDA margin improved by three percentage points from 65% to 68%.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

The transaction also increases our scale and enhance our portfolio. On a pro form a basis, our total production for Q4 twenty twenty four will be 125,000 BOE per day, an increase of 47%. As discussed earlier, P1 reserves and acreage are also significantly enlarged. As per our estimation, La Amarga Chica has an inventory of 200 wells to be drilled at our 50% working interest. We are therefore increasing our inventory by 20%, adding wells located in a premium area of Vaca Muerta, around Bajada Del Palo Oeste, a region we know extremely well and which has consistently delivered extraordinary value to our company.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Based on La Amarga Chica proximity to our development hub, our analysis showed there are very clear synergies we can capture related to sharing facilities, optimizing well placement close to the limit between the blocks, streamlining new well designs and potentially sharing general services. Importantly, the acquired company holds material oil mixing capacity. By adding 57,000 barrels of oil per day of contracted pipeline capacity, we have reached almost 200,000 barrels of oil per day capacity on a pro form a basis, excluding trucks. We are thrilled to be consolidating a high margin, low breakeven asset with very clear synergies with our ongoing operation. Based on the scale and importance of this consolidation, we are currently working on a revised version of our 2025 plan.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

We are therefore removing our 2025 market guidance and we will present an updated guidance in our Q2 earnings call. I will make some closing remarks before we move on to Q and A. On the operational front, we have made solid progress during the quarter. Production increased 47% year over year driven by 49 new wells drilled and connected in the last twelve months. We reached a major milestone as the duplicate pipeline came online, adding 31,500 barrels of oil per day of oil transportation capacity, materially reducing our selling expenses quarter on quarter and fully eliminating trucking volumes after quarter end.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Yet the most important achievement was on the M and A front with execution of a transformational deal for our company. Our track record shows that we are a company that can add value to its upstream operation as well to business development. With acquired assets, we incorporate flowing production, material EBITDA and cash flow generation, premium new well inventory, ferrole metering capacity and potential synergies at accretive acquisition multiples. Following this M and A transaction, Vista emerged with an improved cash flow profile and higher margins, which is very relevant in the backdrop of a high market volatility and I think more importantly reflects our constructive long term vision on Vaca Muerta and long term global oil price fundamentals. Before we move to Q and A, I would like to thank the entire Vista team for their hard work in this quarter.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And specifically, I would like to thank the M and A team for their understanding transaction is just concluded. Operator, we can now move to Q and A.

[Operator]

Thank Our first question comes from the line of Alejandro DeMichelis from Jefferies.

[Alejandro Demichelis, Managing Director - Equity Research at Jefferies Financial Group]

Yes. Good morning, guys. First, congratulations on the deal to the whole team. Miguel, maybe you can deep dive a little bit more on those synergies that you're talking about in terms of how long do you think it's going to take you to achieve those? How are the discussions with the operator to get access to that kind of extra capacity, the sharing of some services, as you mentioned?

[Alejandro Demichelis, Managing Director - Equity Research at Jefferies Financial Group]

And how you see that kind of, say, more of a portfolio development going forward?

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Hi, Ale, thank you for the question. Our synergies are super important, as you know, in any acquisition. We run a very solid decision process, and we have a very good engagement with YPF in the last days. I think both teams, are super concentrating and exciting of working together. I will say the first synergy that we perceive and we see is total transportation capacity.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

That clearly will bring more flexibility to our operated hub. The total capacity is 57,000 barrel of oil per day. That is compared with a current oil production that is around 20,000 leave us with 20,000 barrels of oil per day per capacity. We also see potential upside in sharing oil treatment facilities. La Marca Chica have two oil treatment plants.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Each one of them have 80,000 barrel oil per day capacity. That if you compare with the total production of the block, clearly there is spare capacity that we that is available to us and really will save costs. The other thing that we believe that we can optimize is the drilling of the longer lateral close to the border of the two blocks. Now that we somehow we have ownership in both block, clearly we can optimize the work placement doing probably longer laterals before we sometimes we come short on the borders. So that from the subsurface point of view is also an upside.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And last but not least and probably more important than everything else, We know that we share and I share with Horacio the important I would say target of reducing well contraction costs both on drilling side and on the completion side. There's a lot of things that we can do together in terms of reducing cost of goods, cost of services and also sharing best practice of how we drill and complete those wells. So the last one I think is super important and particularly in the new environment that we have in the oil prices volatility.

[Alejandro Demichelis, Managing Director - Equity Research at Jefferies Financial Group]

That's very useful. Thank you.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Bruno Montanari from Morgan Stanley.

[Bruno Montanari, Executive Director - Equity Research at Morgan Stanley]

Hi, Miguel, Ale. Thanks for taking my question, and very good to see this great acquisition. I understand it's too soon to provide guidance for 2025 in the long term, which we eagerly wait for. But if you can talk about what we expect in the very short term, what are you seeing now for the second quarter? In other words, reaction to activity and CapEx and how to manage the workflow right after the acquisition? That'd be great. Thank you very much.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Thank Bruno, for your question. I think in Q2, will see a sharp growing production as we consolidate La Amarga Chica. We finished Q1 almost at 81,000 barrels day. And I think we should see north of, I would say, 10,000 barrels per in Q2. Since the importance of the takeoff of our part of Bajada Del Palo Este, it will come in the important production will come in, in Q3.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

So I would say you should consider north of 110 for Q2. And then in Q2, we are not planning in changing any drilling or completion activity plan or CapEx at the moment. So yes, 01/2010 Q2. And of course, we will continue growing in Q3 as most of our activity when you see where the load of production completion come in, it will be in Q3. And Q2, you have to consider that Q2 is going to be just seventy five days of the transaction.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

So that is what I'm accounting in the current term.

[Bruno Montanari, Executive Director - Equity Research at Morgan Stanley]

Super. Thank you very much.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

You're welcome.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Daniel Guardiola from BTG Pactual.

[Daniel Guardiola, Executive Director - Equity Research at BTG Pactual]

Hi, good morning and thank you for the presentation. Miguel Alev, congrats for the transaction. I guess my question is on two fronts. One, can you share with us what is the expected leverage deterioration following this acquisition? And regarding the free cash flow generation, can you please elaborate on what happened during the Q and what are your expectations for 2025 and 2026, please?

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Thank you, Daniel. So first of all, probably to say that Pepasa has no debt at the time of the acquisition and a very small amount of cash for working capital purpose. With the acquisition, we have incorporated $300,000,000 of financial debt and we paid $900,000,000 upfront. So after that acquisition on pro form a base in LTM, our net leverage ratio is around one time adjusted EBITDA. You should see or should assume or you should expect that the net leverage ratio to be below 1.5.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And this I will say assuming a burn of $65 during the year. If we have a different Brent, we should adjust at $1.5 This means we will require some additional financing during the year. That is obvious. In terms of cash flow, the negative cash flow that you see is related to CapEx acceleration, and this was basically designed in our guidance. Before the Petronas acquisition, we have between minus $400 and minus 500,000,000 free cash flow based on the growth CapEx and our equity in Vaca Muerta supply line.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

I would say that additionally, in Q1, usually, we have a negative working capital related to the payment activities that we executed last year. So going forward, you should know that Petron acquisition will extend our cash flow profile because we consolidate material with the generation that's coming from that block. And we are reassessing our plan following the consolidation of this block. And we will issue new guidance as we mentioned before in Q2. And then also we will show you a new long term plan sometime in the second half of this year. Hope I have answered your question.

[Daniel Guardiola, Executive Director - Equity Research at BTG Pactual]

Thank you, Miguel.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Bruno Amoury from Goldman Sachs. Bruno Amuri, your line is now open. Please proceed with your question.

[Operator]

One moment for our next question. Our next question comes from the line of Andres Cardona from Citi.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Hi, good morning, everyone.

[Andrés Cardona, Director at Citigroup]

Miguel, Paulo, my congratulations on this. I expect to be very interesting. When looking at the first quarter production numbers, there seems to be a decline versus the fourth quarter results versus the fourth quarter. Can you give us some color on that? What do you expect in particular for La Amarga Chica in the second quarter and for the remainder of the year? Color there?

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Thank you, Andres. Yes, you're right. I mean, at our 50% share, Q4 was around 39,000 barrels per day. There was a lower new well activity in Q1 leading to an average of 34,000 barrel per day. Today, I look at the production yesterday was 35,000 barrel per day.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

So we expect a pickup in production in Q2. A four well we're tied in March 14 in April, and they're planning 10 new well tie ins in May and June. So when you look at Q1 will be completed with 10 tie ins and Q2 we said you should assume between twenty and twenty four tie ins and for the full year around 50 tie ins. So, you should see a pickup coming up, a good pickup coming up that you will see in our production in Q2.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Rodolfo Angel from JPMorgan.

[Rodolfo De Angele, Latam Oil, Gas, Metals & Mining Analyst at JP Morgan]

Hi, good morning. First of all, congrats for the acquisition. My question is on a view on peak production looking forward. Before the acquisition, the the plans were of reaching a 50,000 barrels a day by 02/1930. And I understand there's no guidance yet, but could you comment on what do you see potential volumes for Vista in the long term? That's my question. Thank you very much.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Thanks, Rodolfo for your question. As I mentioned, we are planning to call an Investor Day second half of the year. Clearly, our new plan will accelerate our ambition to reach 150,000 barrels per day in 02/1930. So our new strategic objective, you should assume that we'll be aiming to new high will be about 150,000 barrel per day. And really part of this acquisition was to accelerate this 150 that now is around the corner. You, Robert, for the question.

[Rodolfo De Angele, Latam Oil, Gas, Metals & Mining Analyst at JP Morgan]

Thank you.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Leonardo Marcondes from Bank of America.

[Leonardo Marcondes, VP - Equity Research at Bank of America]

Hi, everyone. Good morning for taking my question. I would like to know if you guys continue to explore other M and A opportunities post the AlaMarkets Chica acquisition. So we know that there are other opportunities in the market. It would be good to know if you continue to assessing these opportunities. Thank you very much.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Thank you, Leo, for the question. Yes. As you know, I mean, we have a good track record of creating value through M and A. So we are not only a good operator, we have a top notch BD team at Vista. It is part of our strategic approach.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

I mean, we will continue doing that. And we are as we increase our scale and our cash flow profile, we will continue assessing opportunities as they come or how we see them. So but of course, we will continue setting very high value in term of value accretion and a strategic fit. So the short answer is yes, We are and we will continue assessing new opportunities and we will not change our strategy. So you wouldn't expect something that come out of what we do.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And yes, the key will be that we maintain our discipline of that acquisition to be accretive our shareholders and to our story.

[Leonardo Marcondes, VP - Equity Research at Bank of America]

That's very clear. Thank you.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Vicente Falanga Neto from Bradesco BBI.

[Vicente Falanga Neto, Analyst at Bradesco BBI]

Good morning. Thank you, Miguel, Alejandro, Juan. I wanted to understand a little bit more what are the key operational advantages and disadvantages that La Amarga Chica has over Bahia de Palo Este. Miele, you also commented that you could potentially drill new well designs. Could you provide more details on that to some extent?

[Vicente Falanga Neto, Analyst at Bradesco BBI]

How much longer laterals could Amarga Chica wells have, more frac stages? And can you get the La Amarga Chica type curves closer to Baja del Palo Este? Thank you.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Vicente, for the question. Look, first of all, these two assets are great assets, okay? They are in the core prime area of Vaca Muerta. The rock quality in both cases, we know then they are very good. I think best in class within Vaca Muerta.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

The brocas you know, they are actually next to each other. We have studied them very well and definitely our geologists see geological continuity. If you look at the productivity per well, they are also very comparable. Maybe BPO in average is slightly better today, okay? But La Amarga Chica start before.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

So I believe they are very close. BPO is in early stage of development. We have less well drilled, less landing zone tested. Therefore, there's more upside in terms of inventory and production growth. You mentioned well designed.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

I mean well designed I think whatever we do next, I mean we are always looking to what we can do differently in order to be more efficient in the placement and the development of the reserve. But also we are looking always and we are looking now on how we can reduce our CapEx in terms of oil cost achieving similar productivity. And I will say whatever we do or whatever recipe we find it will be applicable to La Marca Chica. And as I mentioned before in one of the previous question, part of the key is working also with YPF and sharing the learning from both sides. Okay?

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

YPF people are technical people that we know very well. As you know, we consider them co workers. So what we can do in using the strength of VISTA and the strength of YPF to make the best of both block is part of the key to continue progressing. And we will have that level of cooperation between the two companies. At the end, we have both the same objective that is try to create value from the development of the well.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And as I mentioned before as well, are we coming in a market with more uncertainty in terms of oil prices? Whatever we do to reduce cost of service, goods, capital and applying best practice, it will be key. So, I cannot comment in anything specific today. Probably when we show our Q2 plan, we will go through some specific on what we are doing on that front. Same for your question.

[Vicente Falanga Neto, Analyst at Bradesco BBI]

Thank you very much.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Kevin McCurdy from Pickering Energy Partners.

[Kevin MacCurdy, Managing Director at Pickering Energy Partners]

Hey, good morning, and I appreciate you taking my question. My question is on your outlook for Brent oil prices and the impact on your long term plan. Oil prices have achieved over the past several weeks. Do you have an internal view on mid cycle Brent prices? And have you considered how your long term plans might be impacted by lower prices? Thank you.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Hi, Kevin. Happy to have you on board covering Vista. Thank you for that. So looking to oil prices, today we are below Q1 levels. That is a fact.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Q1 was $75 on average. In April demand to date average is 67 and today is 65. So, we are obviously going through a period of increasing volatility. Especially since the April, okay, we have seen that. However, when you look at the last days, we have seen, I would say, positive correction to the negative announcement that led to the increase in volatility, okay?

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

In the long term, I have no doubt about the trend of the fundamental of oil and gas sector. We continue to see a strong long term oil demand. And also, we're still seeing some uncertainties in terms of long term supply and where that supply will come from. So I have no doubt that the fundamentals for the long term are there. We have to manage to drive through the times of volatility.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And with that I think for that I think we have the right team, the right company and the right asset because our assets are short cycle assets. We have proved that during the COVID-nineteen years. And also Vista have the agility and the contract of the arrangement to accelerate and also to stop or reuse when we have to do that. So, I cannot probably put more comment, more color to your question. I think in Q2, we will give you a new guidance.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And with that new guidance, we will adjust activity and oil prices view. So if you hold and wait for us for Q2, I will give you more precision on your question. And thank you again. Good to have you on board.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of George Gastaut from Latin Securities.

[George Gasztowtt, Research Analyst at Latin Securities]

Hi, good morning, and thank you for taking my question. Prior to the incorporation of the new assets, trucking was expected to pick up slightly in 2026 before Vaca Muerta Sur comes online? With the addition of its new midstream capacity, should we now expect trucking to be fully phased out?

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Hi, Shor. Thanks for the question. So first of all, since April 1, are not tracking oil, okay? We are happy for that and it's saving us a lot of cost. This new acquisition, as we mentioned, brings 57,000 barrels of new midstream capacity.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

With that, the full capacity of Vista is take to a total of 144 barrels if I'm calculating well. Now we are working in a new plan. I mentioned that we accelerated 01/1950 and we will have a new ambition. And for that we will require new capacity. Again, in the new guidance, we will show you what we are planning to do.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And depending on that we may need a bit of tracking capacity. We have that infrastructure in place or we will not. But clearly, if we need it's going to be very little.

[George Gasztowtt, Research Analyst at Latin Securities]

Thank you. That's very clear.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Victor Modenese from UBS.

[Victor Modanese, Equity Research Analyst at UBS Group]

Good morning, Miguel, Alejandro, Juan. Most of my questions have already been answered, so I would just like to confirm one final point regarding the acquisition of La Marga Chica. Can you confirm if the transaction is now complete and the acquired stake is fully incorporated into Vista? Or are there any regulatory approvals and precedent conditions pending?

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Thank you, Victor. And it's a good question. We look into that. So the short answer is the transaction is completed. We are basically currently consolidating Pepasa as A350, which includes 50% of La Amarga Chica.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

We are formally filing the transaction with the antitrust agency and we do not foresee any competition issues based on the precedent cases that we have in Argentina within the oil and gas industry. So there are no other regulation approval pending and there are no condition precedent. So the short answer is this deal is completely closed.

[Victor Modanese, Equity Research Analyst at UBS Group]

Okay. That's very clear. Thank you.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Bruno Amoury from Goldman Sachs.

[Bruno Amorim, VP - Equity Research at Goldman Sachs]

Yes. Hi, good morning. Can you hear me? Hello. Can you hear me?

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Yes, we can hear you.

[Bruno Amorim, VP - Equity Research at Goldman Sachs]

Okay, thank you. So I just have a follow-up question on the recent acquisition that you have made. So the acquisition of Petronas, does it change to some extent your plans for the current assets or should we think about the existing operation and the new asset as independent operations? Thank you.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

Yes, Bruno. So given the consolidation of Amarga Chica, we have removed the guidance of twenty twenty five from the market, and we're already working on the revised plans as we speak. But we are incorporating the activity of the acquirer, Arsen and we are focused on protecting basically balance sheet, maintaining a healthy leverage ratio, as I mentioned, a very volatile environment. And we are reassessing the CapEx plan and making a new plan that consider both operating and non operating CapEx. Believe the new plan will be much more solid to the one that we have today due to the new production that is coming in and the adjusted EBITDA that we are consolidating.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

And of course more importantly probably for this year, it will be that we will have a stronger free cash flow. And with that free cash flow we will have more flexibility. So again, as I said before, if you bear with us, we will issue that new guidance in Q2 during the earnings call. And thanks for the question.

[Bruno Amorim, VP - Equity Research at Goldman Sachs]

Thank you.

[Operator]

Thank you. At this time, I would now like to turn the conference back over to Miguel Gallucho for closing remarks.

[Miguel Galuccio, Founder, Chairman & CEO at Vista Energy]

So thank you very much everybody for participating. Neither you said that we at Vista, we are super happy with this acquisition. It take the company to a different level of scale, different level of trend and of course, different level of flexibility because now we have a bigger playground to play. Again, thank you for the report and thank you for the support. Have a good day.

[Operator]

This concludes today's conference call. Thank you for participating. You may now disconnect.

Participants

Executives

• Alejandro Cherñacov, Co-Founder and Strategic Planning & Investor Relations Officer
• Miguel Galuccio, Founder, Chairman & CEO

Analysts

• Alejandro Demichelis, Managing Director - Equity Research at Jefferies Financial Group
• Bruno Montanari, Executive Director - Equity Research at Morgan Stanley
• Daniel Guardiola, Executive Director - Equity Research at BTG Pactual
• Andrés Cardona, Director at Citigroup
• Rodolfo De Angele, Latam Oil, Gas, Metals & Mining Analyst at JP Morgan
• Leonardo Marcondes, VP - Equity Research at Bank of America
• Vicente Falanga Neto, Analyst at Bradesco BBI
• Kevin MacCurdy, Managing Director at Pickering Energy Partners
• George Gasztowtt, Research Analyst at Latin Securities
• Victor Modanese, Equity Research Analyst at UBS Group
• Bruno Amorim, VP - Equity Research at Goldman Sachs