What Vista Energy (VIST) Said on Its Q3 Earnings Call

Key Points

• Record production and earnings: Vista Energy’s third-quarter production rose 33% year over year to 169,000 BOE/d, while revenue increased 75% to $1.23 billion and adjusted EBITDA climbed 78% to $841 million.
• Stronger cash generation and lower leverage: Free cash flow reached $334 million, and net leverage fell to 1.12 times adjusted EBITDA. Vista expects leverage to approach one times by year-end, supporting potential acquisitions, buybacks and additional investment.
• Growth outlook remains intact: Vista reiterated its 2027 targets of 185,000 BOE/d production and $3.3 billion in adjusted EBITDA. Pipeline capacity and the planned VMOS pipeline expansion are expected to support continued Vaca Muerta growth without near-term bottlenecks.

Vista Energy NYSE: VIST reported record third-quarter production and higher cash generation, supported by organic growth and the full-quarter consolidation of acquired interests in the Bandurria Sur and Bajo del Toro assets.

Chairman and CEO Miguel Galuccio said total production averaged 169,000 barrels of oil equivalent per day (BOE/d), up 33% from a year earlier and 8% from the prior quarter. Oil production reached 147,100 barrels per day, increasing 34% year over year and 9% sequentially. The company connected 25 new wells during the quarter and said it is operating at a run rate of 100 wells annually.

Third-quarter revenue rose 75% year over year to $1.23 billion, while adjusted EBITDA increased 78% to $841 million. Net income was $293 million, compared with $27 million in the third quarter of 2025 after excluding a non-recurring $288 million gain related to the Petronas acquisition. Earnings per share were $2.60.

Exports, pricing and costs

Vista said oil exports increased 56% from the prior-year quarter to 9.9 million barrels, representing 73% of oil sales volumes. Export revenue totaled $935 million. The company realized an oil price of $84.20 per barrel, 30% above the year-earlier period but 6% below the second quarter, reflecting a decline in Brent crude prices from $97 to $91 per barrel.

The company said it sold all volumes at export-parity prices in domestic and international markets.

Lifting costs were $4.70 per BOE, up 6% year over year, which Vista attributed to inflation in peso-denominated goods and services amid flat foreign-exchange rates. Selling expenses fell 14% to $3.60 per BOE, driven primarily by lower per-barrel ship-or-pay costs on the Duplicar pipeline as production volumes rose.

Adjusted EBITDA margin expanded by one percentage point from a year earlier to 68%, while adjusted EBITDA per BOE increased 34% to $54.10.

Free cash flow and leverage decline

Cash flow from operating activities totaled $773 million in the quarter, including $50 million in income-tax payments. Investing cash flow was negative $479 million, led by $460 million in accrued capital expenditures. Free cash flow reached $334 million, while year-to-date free cash flow excluding merger-and-acquisition payments was $563 million.

Financing cash flow was negative $164 million, reflecting $60 million of net debt repayment, $55 million of share repurchases and $24 million of interest payments. Vista ended the quarter with $775 million in cash.

Net leverage declined to 1.12 times adjusted EBITDA from 1.41 times in the prior quarter. On a pro forma basis that includes the acquired asset’s last 12 months of EBITDA, leverage stood at 1.04 times, down from 1.25 times in the second quarter.

Chief Financial Officer Pablo Vera Pinto said Vista expects leverage to reach about one times adjusted EBITDA by year-end, providing flexibility for potential acquisitions. He said the company is not currently involved in any acquisition process and remains focused on core acreage in the oil window of Vaca Muerta.

Pipeline capacity and VMOS timing

Addressing questions about transportation capacity, Galuccio said Vista currently has pipeline capacity of 180,000 barrels per day, including 36,000 barrels per day of spare capacity. That capacity includes 78,000 barrels per day on Oldelval, 72,000 barrels per day on Duplicar and 32,000 barrels per day on Vaca Muerta Norte.

He said the total also includes 33,000 barrels per day of capacity enabled by drag-reduction agents, of which 9,000 barrels per day had previously been publicly disclosed. Vista expects to add another 24,000 barrels per day through those agents and said it added roughly 2,000 barrels per day of Duplicar capacity following the Equinor acquisition.

Galuccio said mechanical completion of the VMOS pipeline is scheduled for the end of the year, with filling expected to begin in the first quarter. Commercial operation is planned for the first half of the year, initially providing 80,000 barrels per day of capacity, though the company expects 50,000 barrels per day of that amount to become available in the second half. “We don’t see any bottleneck for our growth plan at the moment,” he said.

2027 outlook and capital allocation

Vista reiterated its 2027 production guidance of 185,000 barrels per day and adjusted EBITDA guidance of $3.3 billion, based on an assumed Brent price of $80 per barrel. Galuccio said a $1 change in Brent prices or pricing differentials would affect adjusted EBITDA by approximately $45 million to $50 million.

The company said it may add a drilling rig in 2027, potentially moving activity toward or slightly above the high end of its guidance for 100 to 110 new wells. Additional activity would be primarily associated with Bandurria Norte if its RIGI application is approved, allowing Vista to move that project forward from 2029.

Vista expects fourth-quarter oil production to be around 175,000 barrels per day, according to Galuccio, who said the company remains positioned to meet its 2026 production guidance of 158,000 BOE/d. The company plans to provide a fuller update on 2027 capital spending and activity with fourth-quarter results in February.

On shareholder returns, Alejandro Cherñacov, Vista’s strategic planning and investor relations officer, said the company had executed $55 million of its approved $150 million share-repurchase program during the third quarter, leaving $95 million remaining. He said continued positive free cash flow could support additional buybacks, further deleveraging and accelerated capital spending in 2027 and 2028.

About Vista Energy (NYSE:VIST)

Vista Energy, SAB. de C.V. is an independent oil and gas company focused on the exploration, development and production of hydrocarbons. The company's operations are centered on Argentina's Vaca Muerta shale formation, where it develops unconventional oil and natural gas resources. Its products include crude oil, natural gas and natural gas liquids.

Vista was established in 2017 by Miguel Galuccio, who previously served as chief executive officer of YPF. The company was created to pursue upstream oil and gas opportunities in Latin America and subsequently built its principal operating position in Argentina.

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