Q3 2021 Vista Oil & Gas SAB de CV Earnings Call
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Today's conference is scheduled to begin shortly please continue to standby. Thank you for your patience. Today's conference is scheduled to begin shortly please continue to standby. Thank you for your patience.
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Good day and thank you for standing by welcome to the Vista third quarter 2021 results Conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your tele.
Phone.
Please be advised that today's conference is being recorded.
If you require any further assistance. Please press star zero I would now like to hand, the conference over to your speaker today Alejandro Chip Nicole. Please go ahead.
Thanks. Good morning, everyone. We are happy to welcome you to reach out to third quarter consulting I'm thinking one results conference call and here with me.
<unk>, Chairman and CEO Pablo went up even though he's the CFO of one guy that we feel.
T O.
We begin I would like to draw your attention to our cautionary statement on slide two.
Please be advised that our remarks today, including the answers to your questions.
They 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.
All financial figures are stated in U S dollars in accordance with international reporting standards.
However, during this conference call, we may discuss certain non-GAAP financial.
<unk> financial measures such as adjusted EBITDA.
Reconciliations of these measures to the closest measure can be found in the earnings release that we issued yesterday. Please check our website for further information.
Our company be stolen God, He said for fear that it doesn't matter what's happening they got they got about Yodlee organized under the laws with Mexico, but just didn't know whether somebody can I notice in the New York stock exchange.
You guys have like almost broke out of beta and the one time items.
And B, how you see in the New York Stock Exchange.
If you get off I want to be TWD four O a debate.
I will now turn the call over to them together.
Thanks Ali good morning, everyone and thank you for showing the 17 call.
I'm delighted to share with you all would it be sort of the first quarter of 2021.
Which we have continued our profitable growth, but quite.
Core to be positive free cash flow.
During Q3, 2021 total production of about 40 people in cities Holcim deal He's got a day.
59% increase year over year.
Production was up 77% you had to wait a year boosted by a lot of development in Bajada del Palo Este, where we have already done 16, you with year to date.
Total revenues in Q3, 2021 we're at $175 million.
If somebody a 50% increase year over year.
Even by increasing oil production and a stronger realized oil and gas prices.
Lifting costs.
He was seven three for the quarter.
The 26% transaction, you had already yet, reflecting the low marginal costs being buffeted by the way continue to dilute our fixed cost base.
Adjusted EBITDA was one country coupon of $9 million.
Blaine, it's solely that chassis the EBITDA margin of 59%.
Capital expenditure for the quarter was $74 $1 million in language execution of our 2021 guidance and reflecting the completion of our affordable, but what are they getting buffeted by the way.
During Q3, 2021 we should hit eight positive free cash flow of $51 million driven by global cash flow from operations and malware.
Hey on the transactions.
Cash at the end of the BDO was $266 million net debt stood at $347 million.
And the healthy net levered at a ratio of one one times adjusted EBITDA.
We will now deep dive into the main operation and financial.
Financial metrics.
Total production during Q3 2021 was 43000 boe's per day up 59%.
Annually.
Production group continues to be driven by our flagship development in bajada del Palo Este, where.
Where we tell you three but in the first half of the year.
We'd also buying for a part number nine in late September.
London to west and local C. Now I'm too with in the organic growth. We don't know that I shouldn't then of 3007 P. E meters for well 61, I would actually say cheese spread of wood.
Note that this did not contribute with production during the quarter.
Even the site all neat because by the way there was we'd see how you get a little of both production right.
Which increased 77% year over year.
During Q3, 2021 we also tying it got well enormous concession.
Is that a good thing the boondocks off automation.
These well.
He's driving our sequential production growth.
Actually higher realization prices in the winter with a small capex unbelievably well now where it belongs as commitments.
Both of them waiting to see Who's city 2021 we're at a $175 million.
Drone instead on what you could eat.
And by the Booth.
And realized oil prices.
Realized oil prices for the quarter of.
57, well, let's put a button up 46% you had already yet.
40% quarter over quarter.
So there's two export market accounted for 18% of those volumes.
We have sales contract signed with Brent trading around 72 goes I forget about it.
We still see pricing of our exported oil discounts to Brent.
Then to go let's put a battery.
It'll make it market accounted for 82% of our total sales in the quarter.
With the crude oil prices of approximately $55.
We continue to execute our strategy of building the St. Luke L. Young she looking revenues I'm finding investment activities.
The entire Q4, let's say volumes with approximately 30% of export volumes.
I've already been looking at it nevertheless realized prices of around $60 I spoke about it.
Realized gas prices increased 18, 8% year over year to $41 per million Btu boosted by day Gosplan winter price of $41 per million Btu, a bleak coupled with approximately 67% of our total volumes.
Additionally, industry prices increased from $2 2 million.
With you to $4 three go lives he had already yeah.
Moving to slide six.
When we look at our lifting cost performance.
Total lifting cost for the quarter was $27 $2 million, we have managed to maintain lifting cost beautiful flat quarter over quarter. Despite FX appreciation in real time.
Lifting cost for the UAE was seven three go lives.
<unk>, 26% year over year.
You could have meant that the live action film Bajada del Palo Este continues to absorb our fixed cost base.
Sequentially, we maintained flat lifting cost for the UAE with a stable production.
Adjusted EBITDA for Q3, 2021.
$102 9 million.
We shop quadruple adjusted EBITDA instead of annually, reflecting a boost in revenues I mean stable leasing cost.
Adjusted EBITDA is two slot be savvy the previous quarter.
Even though it does not include operating income generated by this JV with Este Lauder, which added approximately $5 million in Q2, 2021.
Our adjusted EBITDA margin in this back half remain strong in the quarter at 59% and $27 respectively.
Moving to slide eight I will review our financial situation.
Q3, 2021 week off another positive free cash flow quarter for a total of $51 million.
Cash flow for nobody can that D V diesel with the $110 million six times higher than in Q3 'twenty 'twenty.
Cash flow used in investing activities was $79 $3 million, partially upset by the cash received.
Through the acquisition of Conoco Phillips, Washington Operation.
On the mixture of castle to shell for a net of $58 9 million recorded for the quarter.
Cash flow used in for 19 activities was $22 million.
It's a similar levels, we pay interest for $25 $5 million, including the semiannual payment on our syndicated loan.
The full interest costs to date.
Oh, so you any softness.
That's where it comes in during the quarter.
In Q3, we repaid a total.
$112 1 million loans.
The nominating bonds.
We also raised the keyword in country and $10 million in Washington, and capital market, each hudler lien bonds.
So do you see living was $92 million bullet doing.
40 years with a coupon of 348%.
Td's toys was country point $8 million.
I've seen you in 10 years with a coupon of 585%.
This issuance constitute almost a step to refinance 2022 maturities.
So there are a dozen deputy Asia have increased from 1.4 years at the end of Q2 2021 to 2.7 years at the end of Q3 2021.
Net leverage ratio decreased from one seven times adjusted EBITDA at the end of the previous quarter to one one times adjusted EBITDA at the end of Q3 2021.
Let them help cash flow from the operation.
Organic deliberate action.
Moving to the business development thrown on September 16, we acquired a 50% working interest in the welfare.
Louisiana North of concessions from clinical Covid.
Does that mean, no upfront payment with control of the acquired entity.
So $6 $2 million in cash.
And I assume the understanding and investment.
A $77 million due.
Q2 win there shall be a 50% JV operating partner for the block.
We also obtained from the center.
The Buda and line of credit of $25 million.
Available for 24 months.
LIBOR plus 2%.
The rationality for resale infection is strong.
It fits perfectly into our development of thought this thing.
The price to sell semi country, rollouts, particularly low compared to the recent M&A transactions.
It would be then.
We spun our portfolio with them in ways.
Approximating one countries 50, new well locations.
We expect to contribute our back on.
These are local somebody you can drop a rig or two there shouldn't be.
Finally, the proximity to bajada del Palo Este of their purchase assets and particularly our figure that could lead to important CNET assisting them of contract for three months affinity and logistics.
Sure.
Section, we have added core acreage to our portfolio without stressing our balance sheet.
Strongly contributing to our growth potential and shareholder value creation.
During Q3 2021 we also made good progress on the ESG front.
We are currently executing three bullshit aiming at the Covid loose.
One country sell some tons of C O two a TBD on annualize basis.
We expect to achieve a 30% reduction in our emissions density two approximating 20, Nike live with COPD with Tmall in 2021.
You can leave us in a good starting point to continue reducing emissions intensity in 2022.
In the meantime, we continue to work on our long term greenhouse gas reduction goals.
Three we have identified material projects in northern Quebec, Our decarbonization plan.
We are currently finalizing our carnival.
I've been called <unk>, which is the cornerstone of our multi year action plan to reduce greenhouse gas emissions.
Corporate production goals.
Moving to slide 12, I would put a stand out with revised guidance for the year.
Which have improved on the back of strong execution and higher realization prices.
Note that the big guys I thought you said life.
Compared against the guidance issue in the previous quarter, which was an improvement compared to the reaching our guidance from 2021.
We are on the track to die in the steep part of the year.
For a total of 20 was by yearend.
We shall finish drilling the spot I'm going to start completion in November.
As we move to a new location to be in the thickest.
Part of the year and is expected to remove that affordability from wells drilled and uncompleted wells by year end.
Our father, who was a teacher to have somebody that.
We brought on the spot.
Set of Pizza intermediate sections of three parts of the 2022 drilling campaign.
We forecast this acceleration in activity, we felt it most of the impact.
Our 2022 production plants.
We are completing our revised production guidance in the range of.
<unk> 38 to 39000, you'll hear quite a bit.
Year to date production.
$38 one person.
By the way.
We expect the production from the fourth part of the yet at least can be time to drive Q4 production to carrier levels.
We are also confirming our lifting costs of approximately seven five door a lot of that would be your <unk> for the year, yes.
Yeah.
Of course, it was seven point affordable.
We forecast this metric to remain in this range in Q4.
By pressure on course by peso appreciation with real time, we have seen in Houston.
We are revising upwards, our adjusted EBITDA guidance.
325 to three funding $17 million.
Adjusted EBITDA has been positively impacted by additional production higher realization prices from Q2 onwards, and lower lifting cost per <unk>.
Based on that we shouldn't elected eating the hired by the way.
We are increasing our capex guidance and until you kind of thing to city kind of a $30 million.
A quick comparison of dig it out of the bolt on it for what it could even shows we are not allocating the entire increasing adjusted EBITDA to capital expenditure.
Clean foreseen, our capital discipline and focus on free cash flow generation.
Finally, we are improving our net leverage ratio goes down from one one to one times adjusted EBITDA by getting.
These reflect our success.
And therefore, you didn't have yet.
Well go to Daniel deliberate action driven by the operating cash flow generation.
That guidance increased from $500 million to $600 million, how do you get in reflecting the successful thinking of a pin number one issue on usage.
3021.
And that attracted us to refinance 2022 maturity.
To finalize this call.
Recapping them too big headlines.
In Q3, 2021 we have seen a strong performance across all key operational and financial metrics.
Quoting a $51 million out of free cash flow.
Uh-huh Palo Este continues to show solid report.
Our Florida portal wipe out the ear to date, which he moves.
On track to the legal drinking you with guidance for the year affiliate 18, our 2022 work program.
In terms of cash.
If you could eat 2021 we successfully issued $110 million newborns.
The competitive right.
Bending that duration to two seven years.
Pre financing granted 22 maturity.
On the business development from we acquired 25000 quota acreage in that come out of the oven approximately one company 50, net new well locations to our portfolio.
Finally.
As shown in the previous is right we updated our 2021 guidance on the back of our strong year to date performance.
Before we move to Q&A.
I would like to announce that we've called for the shareholder meeting scheduled for December 14th.
In this meeting we will initiate the process to seek formal approval for a potential share buyback program.
Or even payment in early 2022.
Today, we are announcing this the first Investor day excuse me should take place on December nine and hosted by the executive team you.
You didn't miss it when we present, our web based strategy, a new medium term targets.
I will now take a moment to thank our investors for their continued support and interest in our story and a special thanks to all the talented people that work at the stuff.
So that would be not a commitment to our company.
And with that operator, please open the line for Q&A.
As a reminder, task a question you will need to press star one on your telephone to withdraw your question press the pound key base camp.
Can't buy when we compile the Q&A roster.
Our first question comes from the line of work that can be S. T. L. From Santander. Your line is now open.
Oh Hello. Good morning. Thank you for all the color today shows for the good results and performance in the year the water.
Three quick questions. The first one is regarding the thing that makes it between the exports.
Before we even a subpoena.
Look I think I can see.
Basically or in particular why would you why couldn't you sports a little to nothing to increase the average price that you are receiving that's my first question. The second question is.
Creasing the prices have gone up.
And the last one why is that.
You are planning to agree to the four new wells in the first quarter that is not completed.
Completed but will be completed in the first part.
Two is that correct.
So those are my three my three questions. Thank you.
Hi, Walter and thank you for your questions. Let me start first with the pricing related transportation probably.
Two quick questions.
So it's tough to put them from the body.
We still don't know where W.
Big picture or hub in Madison deal with the pricing.
The prices in Argentina, where that we are receiving as a combination of their local price.
Ah the paper price of.
The balloon that we afford it now I think the important thing. So you have to understand is that the volume that we have brought it you'd be Ben how much Argentina all at all.
Produce to be ashamed of different and I think we're war.
There are probably eight or 10 years ago, we had a clear and well.
<unk> been having no problem and in fulfilling the demand.
The local market and becoming a year about a year a bit more or if they need to support that.
When you look at the situation you have the capacity of the refineries pop up. So we are not building any new refinery merchant peanuts in the and then you've got a future therefore, our demand.
And our capacity to a better use of gasoline for the country.
And everything that we produce them exist. We go to the market now when you look at what we have produced year to really make fits in 'twenty 'twenty. One are we have been getting somewhat production, 7% from both Kevin and stable production.
<unk> 31 per cent come from back on more of the conventional fees have declined 1%.
Staying on that what I'm, saying today, we are not in the situation of the country, we used to be in Argentina, when we got to border.
Importantly, the oil well.
We're a domestic market is if we feel.
On every single vibrant that we produce on the top.
You go to the export market.
Going to the sport market.
First of all the local price today.
Our realized price has been around 55, we have not seen we have seen prices increased during the year, but we have not seen price increases in the last few years and we have seen international pricing going up. So two day, we have an issue and the issue is that we ought to be to the couple of the Porta potty.
And we believe we will have a correlation and election many years no matter what room. He's in charge, we have always seen a delay on the transfer of pricing to the pump.
I believe after the elections, we should see a movement coming from.
They integrate it.
Integrated player in the country when it come to the board.
Well, we see really the pricing that we are realizing Ah you know fully aligned with the with the export with the.
But in practice.
Nah, we discount that this didn't come that we know.
We have a discount on quality.
The last time that we have with less than one on a and we have.
Import tax.
And that would give you 10, 11% a reduction on derivative pricing and and then we've been very successful basically that clean.
Market when you look at between 'twenty and 2021 we did stuff and now these additional categories that we export this year for us that portion represents today, a 30% of our production for the year. So does that mean city production of <unk>.
Production of the year we.
We have allocated to the export market.
So that's your.
Christian.
Let me go to your second question related to drilling none in Q4. So we finished drilling our fifth part of the year.
And what we call or what you've seen in our marks are for you guys. It's something we know not read a lateral length of two something in kind of a neutral.
Currently it's gotta be completion, we plan to tell you.
These went in Q4.
Nike will be December.
We are then moving Dominion breakthrough new location that.
Six of the years or where it sits as part of the year and that is expected to be spent into the neighborhood or additional green uncomplete wells by year end. Okay. So that's where it's going to be completed in 2022.
Also we brought on it further.
And instead of pizza and Dominion sections for three part.
And that's he's already on today are starting to work with.
That is more related to that campaign that he didn't campaign of 2022.
That leads to a Saturday activity.
But for sure we have had positive impact in our production plan in 2022.
Going forward your last question related to the valuation impact.
Well, we've been through that before devaluation impact costs are usually much Indiana it positive impact on the Capex.
Sitting back on the lifting cost because you'd our batesville spotting a.
When come to to basically close of both development leasing I am having a negative impact you should keep particularly in our top line because.
We see on your bike.
Oh devaluation or a drop on the top line that is difficult to transfer at.
At the same moment instantaneously.
Two into their funds, usually take a few months to recover.
I've seen before opinion evaluation, we need to see a recovery in our price pricing in the in the Pan.
And that is that I mean, if you we have our name.
And their valuation is evaluation effect clearly, we said our top line.
If you go onto your opinion than it does on the cost side.
But what they are called back off on the answer to your question.
Yeah. Thank you very much to the other was perfect.
Yeah.
Thank you. Our next question comes from the line of Regis Cardoso from Credit Suisse. Your line is now open.
Hi, Good morning, Miguel good morning, congratulations on the results.
Two questions from my side the first one.
The last flight on presentation, where you talk about distribution.
Distributions either in the form of dividends or buybacks.
How do you I mean, how do you remember that.
That capital.
Capital allocation.
Between accelerating the development of Vaca <unk>.
Given that you still have a very substantial inventory of wells in Bahar does it follow Andrew Dinnerware acquired additional assets. So we have plenty to do.
And in your existing assets.
At the same time of course shares have been.
Very undervalued.
As a result of.
You know the very very high discount rates in Oregon machine and so on so of course, the buyback would also make sense from that perspective. So my question really is how do you how do you balance that.
Is it the additional.
No cash generation that you're real views do you need to set some money or some some cash aside for.
Or.
Oh for servicing the debt because you might not have access to dollars because of capital restrictions or foreign capital restrictions in Argentina.
If you could comment on what are you know how do you balance capital allocation, where did you get the resources for them and give them the capital flow restrictions.
How did you balance between distributions and Pam.
Reinvesting in the existing assets.
So that's one of the questions. Oh go ahead with the second one just very briefly it's something you already touched on but when we think of.
The spread between Brent prices and realized oil prices in Argentina.
What do you think are the discussions that are still open is there anything in the hydrocarbon law that could change that spread is it still mostly the dynamics of what are the refiners are able to pass a true.
Is it something that you believe you will develop more of an export market for your oil I mean can you actually reduce that spread between our realized oil price of Brent prices.
Thank you for your question on your first question too broadly.
He is 70 to set up the stage for really the detailed discussion that we are going to have in that way.
In the survey in December.
But it's a very good question and let me touch briefly on that so first of all the I would've said the important thing is the most important themes is that Ah I would operation the resources of our operation basically our proforma.
In term of.
Of course lifting development you know we have we have managed to take the operation from the cities that we were all the way down to probably 14 between seven development costs and lifting costs due.
Due to the performance of operation also performer of our restaurateur warning.
Our strategy for completion high intensity.
So that keen on AR and the placement of the well and also the strategy of cube that we have.
To cover an operation that churn at a consistently and that is very important positive free cash flow.
And we are now without a doubt the stage.
How are we seeing that a utility.
Utilization of these pretty positive cash flow.
Going forward.
You said in the environment that we are okay.
With all the different constraints as well board first of all we have the ambition and we plan.
Continue growing okay. We are we are.
Growing company and we will continue growing at double digit rate not only in production, but more importantly in broth pizza maybe the.
So that is our main priority.
With the free cash flow that we plan to have I mean, we we believe we can do more than that and the second thing that.
So you will see that we will address them.
I would say that none of my base is to use that cash flow that we have.
To be clear at ash they come.
Okay, and it's not that we have a broad enough labor that's who they are we will probably end up the year at one.
A ratio of net debt medicines have you that are probably lower okay, but I think it's a good policy for us.
Now we are having.
That cash is to.
<unk> continued to liberate I've seen the company.
And then second.
Oh, so the way that we think about distribution.
We see this dilution a total return to shareholders okay.
And that's sort of a general shareholders can be in two firms. Okay. One is going to be a plan to buy back shares.
April he make a lot of sense.
And I'd say equally come a point of time that we can have a D.
This policy, we have never make a decision on that but where we have to make a decision.
And that's why we are preparing our holding company to receive this new positive result.
From Q4 onward is too.
I'll be able to distribute.
In one of those for them.
Of our.
Our free cash flow that we're generating okay.
So that is for your first question.
Brent to realized prices.
Again, I think is back to the previous question.
Wildcat.
Yes, it will be depend on.
In this bucket will depend on our ability as an industry.
Continue growing.
Unless the country, because he's needed for them to get easier for the country as well.
To move.
Moving.
To continue growing our Howard production base that afford to have more excess of Barbara is a choice.
She was born I think this is the name of the game production Tina.
Do you feel comfortable law.
If suddenly there was kind of a law, but I don't think it's touching the local prices.
He was already chine detour that is part of the constraint that we thought that you mentioned that you know.
The distribution of our cross border that I would said cross border.
To be able to move proceed could avoid the AR in the country today that we are exporting on what.
We continue to lead in both of them because he loved it too little.
Our production basically continue to need investment among we need we need motive east some more company coming to Argentina. So I think that was the origin of the idea of having.
And load that incentivize that investment.
I think if you did the lower grades that I think we are we are winning something.
Before that you don't need more than 40 articles and the law are too big we ought to be discussing country I seem that this would be too much okay.
No need it we.
We have a low that we passed in 2014.
He has been working it could even be willing to come up with the legal framework of the Utica well look what we need is Florida.
Articles and the law.
To incentivize investment to grow production to create work for the country and to become a reality.
And the Cds Nic portal in the country that we have that potential.
He doesn't know we'd go forward out of because I think that's.
It would be a good thing that these at Goldman.
Okay.
Very clear thank you very much for the complete answer.
Thank you. Our next question comes from the line of.
Army Levy from Morgan Stanley. Your line is now open.
Hi, good morning, everyone and thank you very much for taking my questions.
My questions are.
Actually related to the newly acquired acreage from Conocophillips. So I just wanted to understand how should we think about investments in these new blocks that.
Our operated by Winter Shaw, how does the operator, you think about the production ramp up into the coming years and the drilling campaign that those areas are and also if you could comment on the on the expected attractiveness.
And productivity of those areas.
Comparing those with what we have seen at Bajada del Palo Westy I. Thank you very much.
Yeah.
Since the same for the year made for a four year to question on.
Look at first of all you said that it.
He worked for a very good.
Acquisition for us.
Blow Cogs went up there on Monday.
The other concessions that we know extremely well.
We were in the process at the time that kind of fulfilling both dose and so forth.
It's nothing new.
You with fog that we have managed to make a transaction with no down payment.
Even oh.
I assumed understanding embedding in February that we could sell.
With their I think he was a very it would be.
That's it.
First of all but it's typically our strategy because he is not only the high quality asset also at a neighborhood assets to our operation.
Very strategic value for us, particularly I would've said are our favorite items.
With Wintershall, we've got very very good relation.
It's in the company or the British and 11 line also on the top.
We have discussed already I have discussed with the.
We'd Marty on the V I used to cooperate and collaborate.
In the plan.
For 2022, what is the plan we are chassis studying technical discussion.
Having said all that we cannot on that technical discussion.
He is not new for the country needed for you guys that are assigned but eight doors today.
We rank in between their most efficient operation of the basin.
And therefore of course, we have featured on they're worried that the structure of the JV.
Of course, we have a saying on the on the program for 2022. So we together we've got two already what exactly that brought on.
We're going to implement so we are in that discussion.
I don't see yet we have a clear a clear program for next year.
Thank you Brian.
Sorry.
So I mean, you have another question or not because I thought.
So that's.
Yeah.
Thank you. Our next question comes out kind of I'm, just kind of going down from Citigroup. Your line is now open.
Good morning.
Continental congratulations for the results.
My questions have been asked but I still have to.
Miguel if maybe you can comment about the cost of patent number ninth.
And also if you have some b C reality about legislation prices for the fourth quarter. If you have to keep your strategy of selling in advance because it has been very good guidance.
Over the last couple of quarters. So there would be for my son and again congratulations on the results.
Thank you.
Andre for your question on Yes, let me tell you first about about nine.
No.
We complete on time by 19 September Okay, we land.
Two words in a casino on two ways. He knows and you go on the avid has loved it a link if you remember globally.
Close to 3100 meters.
We placed 61 other suspicious better what that was.
Operationally, we win even part of it.
We used to ROE and also we managed to place not ready that's more if they choose.
We used to do and that was part of the plan.
Yes.
We have a sidetrack in one of the ways. So we view it it wasn't without issues and we have one was of the part that's due to technical issues. When we were running casing.
We would have two sites that are basically what we need is we didn't cover.
The casing on AR and then.
And basically we run again, we send then we say project.
This operation.
Basically it was pushing 20 to 25 days.
Our production what is today of the box.
Around 30000 barrels per day.
Not fully clean so.
Putting up.
What pushed 25 days from September to October or so we have in that particular, well I know we're around cost so.
All of those with today, we are really in a normal basis around $10 million in this way we have a 4 million. Dollar addition, and so that was the full impact of the sidetrack, a one well in the in the complete but okay. So nothing I mean.
I mean, we have drilled already 10 bucks.
The platform our company is exceptional.
Of course, we invest D gave we do we group and so on but yes. It is.
Part of it's part of running an operation So no no Miss your insights.
And there is not an impact.
And the program team from the production today.
Uh huh.
Joke.
Yes.
Looking is looking good is looking around.
One was like.
That is your first question. Your second question was related.
Prices for them.
Q4, okay.
So as I mentioned in the Cogs in Q4.
We have already look one.
100% of our revenues.
We might not.
Q4, two plays two categories that means 30% of our to put on volume.
So that one.
It can be done.
Basically.
That was good but I see what will happen in October was that in <unk>.
73, we met together or like types of what I see.
And in December we said I know that I've got to.
Two and up okay.
But then at that time was at 183.
It is nice to realized prices of 76, okay.
And I think the volume where place to basically roughly were a whiteboard and others. So that is.
What we have already.
Looking for.
For Q4, so you when you look at the whole team you should expect that all operators sale prices would.
We'd be at around $60 provider.
For the for the basket.
Yeah.
Answer to your question Linda.
Okay.
Thank you. Our next question comes from the line of his account Fernandez from Golan. Your line is now open.
Hi, good morning.
Gil Columbia somebody thank you for taking the time to the cold and windy complete materials portfolio.
I have three questions I would like to go one by one if you don't mind. The first one is relating to pricing it has two parts.
Going back a little bit to what that's going to work.
Asking we had some news articles in Argentina recently talking about.
The internal price of crude going towards $60 per barrel at the moment I don't know if you could confirm that.
That is for the Ah <unk>.
Later, well that's up to them.
So and also what's the discount.
Versus Brent on your export sales during the third quarter.
Okay.
Well. Thank you very much for your question as to kill Okay.
Simply related to your first questions on $60 per barrel in the local market.
The reality is we have not seen those prices in the local market okay.
We would have probably seen prices more of a two day or 155.
Uh huh.
We see if anybody is getting 60 miles.
Congratulation to them.
I think we should go through those numbers.
Hum.
You know I mean, those numbers will look at a number we've done many many things, but one is.
If the price of the bonds negotiation with the refineries okay.
So we have not seen prices up 50.
So blindly.
And second in term of the sport.
Well, it's exactly what I said to you.
Okay.
Discounts of around 10% in the sport.
You can you can you can basically play.
Probably 141 $5.
All of the time that we see today to wirelessly, okay, depending on the tender we see a range.
Been very successful no long ago.
That price was around five okay on which they are talking about 1152 are on the other part.
Therefore, some of the products.
<unk> is today around another $8.
So that is gone, though we are awaiting an export is very straight forward on the Audi the only variance is.
Quality on the quality of back on more of that and the recognition of equality.
He said he said Super positive story.
I mean, no no difficulties when we got to sport again back to the previous question the key for us, but for the industry the deepwater or we can do that is to.
To create more volumes a bit more in order then to have more volumes going through the airport does he said we used with tuition for everybody.
Great. Thank you my second question is related to income taxes.
Given your investment pace during the past two years.
We still have not been paying income taxes up to now if I'm not.
He's taken I wanted to get a sense.
Yes.
You are budgeting or thinking that you're going to be.
You'll start paying some next year.
Yeah.
Yes, that's.
That's correct you can see in the balance in the balance of EBITDA in our statement.
That's everything that we call them.
Call it a cooling.
But it is basically what we are forecasting a wish.
We paid during the next year.
Okay, Great and my final question and this might be a little bit early to ask tell me if it's so yeah.
If you could comment a little bit of your lower carbon and ESG initiatives or next year.
Yeah.
Well, thank you for that instead of that on a on a and I think we put a sensitivity of that are in the presentation.
We basically we are really using it all in one country is wholesome bonus here to a key learning.
Normalized <unk>.
And this is what we are doing that.
Can be won.
No.
For the next CFO.
We expect.
As part of our reaction.
On December nine email, our Investor day, but I think he will put us in exactly what we would do.
We are super excited about the plan that we have a formal plans our capex assigned to that.
And I think in demo.
Becoming a low carnival and operator.
We are already low cost low carbon operator.
We are reserving for December nine day news.
2% there so if you excuse me.
I will.
Let me, let me hold that kind of northern to give it to everybody. During the day that is going to be an important thing for us.
That's perfect. That's all from my side. Thank you very much.
Thank you very much.
Again.
Thank you. Our next question comes from the line of Konstantinos Papalia from one day. Your line is now.
Thank you very much good morning, and congratulations on your results business clearly being quite a fruitful call I have two quick questions for you. The first one for you. The first one is the following we got a follow up regarding dividends just to make sure how.
How are you planning on paying dividends. This is a decision reached by the shareholders' meeting.
Is there a need for authorization from the central bank to actually distribute dividends and my second question is.
Regarding what the net leverage for the next year or so what what could you expect in terms of net leverage for 2022 of 2023 does it make a difference if you decide to accelerate production growth and if so are you considering accessing the international markets and funds too.
Yes.
Once again, thank you very much.
Thank you Konstantinos for part of your question on the and again I mean, we are talking to them that we for sure will cover it in December of 90 day full exhibiting now but.
But to what we discussed before I mean, the booties you've seen is that we are creating a consistently.
He discussed flow from the operation So back to what I said before our first priority because it's our ability to continue growing on a on the we are planning to continue growing and we will present that plan in the then.
Against in December at night, but we will continue growing in double digit rate.
Then.
But to your second question.
When you look at our DZ reaction from the point of view or net.
Goodbye.
EBITDA, we've been coming down are we on landing in one this year, where they say super number on and I believe you will see as part of that reaction in 2022, no. Besides that.
We are planning to use part of the cash too David.
Did you have at Ash.
Absolute.
Number of debt okay.
So.
You should expect that part of the cash we have that.
Of course, there's a caveat there I mean.
And for everything that we do with cash.
If I could addiction, that'd be something that we don't have control, okay, and it's something also that can change from one year to already merchant Tina.
We will adapt to that.
On the third element of our cash.
Distribution, we think in total she had of course the returns. Okay that is how we think so that distribution is normally study even it could be there, but also could be share buybacks, okay, what else would make more sense to our shareholders.
Basically we will ever make more sense to restart okay. So we are not broken out the dividend. We are booking the portion of the cash is going to be distributed as a total.
She had a call every time.
Very clear thank you very much.
Yeah.
Thank you.
This time I am showing no further questions I would like to turn the call back over to began carluccio for closing remarks.
Well, thank you very much schindler months on ladies.
Another great quarter for us.
On.
Thank you for the support and the photo continue being I'll say that.
Looking forward to see you in December at night.
Our Investor Day, where we will give you an update on the strategy going forward. Thank you very much have a good day.
This concludes today's conference call. Thank you for participating you may now disconnect.
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