Q3 2022 Vista Energy SAB de CV Earnings Call
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Good day, and thank you for standing by and welcome to the Vista <unk> third quarter 2022 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 this.
Session, you will need to press star one one on your telephone you will then hear an automated message.
I see your hand is raised please be advised that today's conference is being recorded.
I'd now like to hand, the conference over to your speaker today.
I'll turn the call. This does strategic planning and IR. Please go ahead.
Good morning, everyone. We are happy to welcome you to <unk> third quarter 2022 results conference call I am here with me.
Oh, I don't know what happened.
So why don't we see if.
Well, 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 answer 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 the expectations for completed by these remarks.
Our financial figures are stated in U S dollars and in accordance with international financial.
Hi, Yeah Forest however.
However, during this call.
We may discuss certain non <unk> financial measures such as adjusted EBITDA and adjusted net income.
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 Vista Energy is also Sheila.
Capital body.
Organized under the laws of Mexico reduced hearing that bolt on that you kind of evaluate it and the New York stock exchange.
Because of our common stock.
In the Bolsa Mexicana de Valores.
In the New York stock exchange that we set up our water.
T W O eight eight.
I'll now turn the call over to Miguel.
Thanks, Doug Good morning, everyone and welcome to the 17 quarters.
I'm pleased to share with you our results for the third quarter of 2022.
We will continue to deliver strong operational and financial performance.
So thats production.
57000 Boe per day, a 26% increase year over year production was up 75% you had already yet boosted by the timing of the last three pad in bajada del Palo Este.
Total revenue in Q3 2022 were <unk>.
$333 6 million and 91% increase you had already yet.
Given by higher production and stronger oil prices.
Selecting our success in containing cost pressure as well as the notion of the cost.
Capital expenditure was $162 8 million, including.
Six wells on the completion of <unk>, but during the quarter.
With a strong reputation prices.
$233 7 million for the quarter more than doubling year over year.
Q3, 2020 to record positive free cash flow of $44 4 million driven by robust adjusted EBITDA generation.
Imply quarterly adjusted EPS of <unk> $90 per share.
Total production during Q3 2022 was $50 seven <unk> per day up 26% inter annual.
Total C&I production, including.
I will now share some more details on each of these projects.
Currently reading the finite were impacted.
By the way the 15, which we plan to tie in December .
Will lead to <unk> for the year in this block.
I'm very excited by the production that we saw.
We have seen in a while.
The asset we acquired a year ago and have successfully integrated into our core development.
At the end of Q2, we have completed our first two with CME coming operators in this block.
Any milestone we are seeing kind of DVT in line with by the way.
In particular, there where we landed in a casino they need better and IP 30.
<unk> thousand 500, Boe's per day and.
And is currently producing 20% above our highlight.
And by the way thank God.
That 120 days on a normalized basis.
We also completed four words, but in our phase III, which was tightening ltvs mark.
Finally, the pipeline connected <unk> by the way. It is currently operating this is a major milestone leading to fiduciary degradation or blocks.
I think Houston lifting cost and environmental footprint.
By the way two words with tightening in late February and data what ongoing pilot program continued to show understanding our results.
180 days, the average production of bode well for the team about what about <unk>.
The west at eight quarter on normalized basis.
Initial resource constraints that the quality of the barrel is look I mean, not 50 wells to our inventory for a total of 900 wells, including because by the way on our payout.
We are planning convenient three additional ways to further de risk acreage in the eastern part of this block in Q4.
Also to treat the crude oil producing this block we have recently finalized a model it upgrades to the oil treatment planning discipline, leading.
Leading to an increase in processing capacity from 40 to 47000 barrels of oil per day.
The next step is to increase the plant capacity to 63000 barrels of oil per day during the first half of 2023.
During Q3, we achieved a measure matched dollar related commodity rhythm as we started producing our own sand mine and washing plant.
The plant is located 260 kilometers from <unk> by the way, they're saving more than 1000 kilometers of some traction.
The plant is currently producing 50000 tons of sand per month, which is roughly 50% of these 10 requirement at the current drilling and completion of run rate.
Designed to sort of a 100%, which we estimate can be achieved during the first half of next year.
This project is a significant contribution to our cost saving efforts.
This forecasted to enable savings of roughly $200000.
Almost 2% of our total drilling and completion cost.
Capex of this plan was $16 million. So we expect a payback period of less than two years.
Total revenues in Q3, 2022 were $333 6 million.
91% increase you had already yet.
But your production growth.
Actual improvement in realized oil prices.
Livestock prices for the quarter of $76 $6 per barrel.
Up 34% year over year.
They are annualized domestic price was $64 $2 per barrel.
The realized price of the export market was $92 per barrel on that redemption.
Crude oil volumes sold during the quarter past production by approximately 2003 countries barrels of oil per day.
Reducing inventories to sale.
Phase two export market accounted for 48% of our volumes up 56% support revenues.
Ported for cargoes during the quarter or $1 9 million barrels of oil in total.
We expect to maintain this level of export volumes during the coming quarter as always.
Regarding prices.
Current brand levels for Q4, we expect total.
Light oil prices were down 5% below Q3.
Realized gas prices increased 7% to be elevated here.
$4 $4 per million Btu.
Mainly boosted by the sales to industrial customers at $4 $9 per million Btu.
Applicable to 32% of our taxable years.
Blank gas price was $4 $1 per million btu applicable to 65% of our sales volumes.
Finally volumes were exported to Chile.
Total lifting cost for the quarter was $34 $8 million, we have successfully implemented tactical cost saving initiatives in water flooding projects in our conventional asset, bringing services and associated materials and click Lange <unk> <unk>.
Mmhmm class I mean, the reduce of impacting materials.
All that to offset cost increases driven by the appreciation of the peso in real terms.
Additionally.
The boost in production volumes continues to lead you to seek cost therefore on sequential basis would reduce lifting cost per <unk>.
By 4%.
We really did it our guidance of $7 $5 February for the full year.
Adjusted EBITDA for the quarter was $233 7 million implying.
Implying an annualized growth of one company, 27% on a sequential growth of 16%.
This reflects strong revenue growth and our successful efforts to maintain a stable leasing cost.
Our ear to the adjusted EBITDA is $563 million. So we are well positioned to surpass our $750 million guidance for the full year.
Adjusted EBITDA margin was a robust 70% during the quarter, an improvement of 11 percentage points yet already yet.
Netback was $51 per <unk>.
And 80% inter annual increase and in line with our previous quarter.
And you can see 2022, and we continue to generate positive free cash flow, while also reducing gross debt.
Cash from operating activities was $196 1 million.
Impacted by advance payments of income tax for $26 million.
Cash flow used in investing activities was $151 $7 million.
Mostly driven by $104 million in drilling and completion activities in our core development project by color by the way.
Fade out.
Other investments include at the gathering agreement on the evacuation facilities, leading to a total capex of $162 $8 million during the quarter on an accrual basis.
The cash flow during the quarter was a robust $44 $4 million.
Good evening to our year to date free cash flow of $140 million.
Cash flow used in financing activities stood at one country at $12 7 million mainly.
Mainly driven by the debt repayments of $78 million, including $22 5 million of principal of our syndicated loan and $50 million of our bond series too.
Interest paid amounted to $10 $4 million.
Gross debt stood at $522 million at the end of Q3, our plan is to maintain that balance such a level by year end in line with our latest guidance.
Leverage ratio stood at a very at Cedar point.
Adjusted EBITDA at quarter end.
Using Q3 2022, we delivered a strong operational and financial performance.
Our Bakken water projects continued to drive production growth, we recorded 57, south CBOE per day during the quarter and 26% increase year over year.
Adjusted EBITDA was $233 $7 million for the quarter.
Adjusted net income was $79 $4 million for the quarter and.
And it's currently.
$201 million year to date.
Adjusted EPS was <unk> 90 per share for the quarter.
Based on the year to date performance, we are reiterating our guidance for the year.
We continue to make good progress in projects to reduce emissions footprint of our operation with forecast to reduce emissions intensity eight kilos per.
25% reduction vis vis 2021.
On the A&D front, we closed the second block of modern development JV with a few water, marking a record acreage evaluation for the basin, which depending on how international prices of oil should range between 59 and $140000 per acreage.
This agreement contribute to increase our free cash flow generation beyond the objectives laid out by our five year plan.
Further reduce group debt distribute capital to shareholders through share buyback or dividends and accelerating investment in by commodity in particularly in the midstream infrastructure.
Infrastructure projects.
On October four quarters.
Quarters meeting approved our proposed amendment to beat that warrants indentures provide immediate centered on the number of funded standing shares of the company approximately $89 7 million share after one country of the warrants are exercised.
This is a significant milestone to improve our capital structure limiting dilution of shareholder value.
The correct price formation of Vista shares.
Finally, this morning I have called for shareholders meeting is scheduled to take place in December seven.
To vote on the proposal to approve our sequential share buyback program.
$55 million.
This is another important step in our strategy.
To deliver shareholder return.
Partially paralyzed.
Understanding shifts.
To the warrant exercises.
Ill take this opportunity to thank our investors for their continued support.
What a great team at <unk> for their hard work passion and commitment.
With that operator, please open the lines for Q&A.
Thank you and as a reminder to ask a question you will need to press star one on your telephone please standby, while we compile the Q&A roster.
One moment for our first question.
Our first question comes from the line of Andres Cardona with Citi. Please go ahead.
Hi, good morning Pablo.
Yes, congratulations on the results.
Recent developments have two questions. The first one is 2000.
It doesn't 26 production with.
No.
Okay.
50000 barrels.
Do you think aloud does it seems to be now concerned about people or how should we think about the second one is on.
Despite.
It seems fairly results.
I'm behind.
Betty in court. So what do you think the services strategy to develop this feels like continue to the risk it on a sold basis seek partners firming and Kelly you.
On the Capex may be a slowdown in focus on behalf Palo is how do you think about the strategy for at least two in there.
Again.
Assets.
Thank you.
Okay.
Hello, and good morning.
Thank you very much for the congratulations on the questions.
Starting with your first part of your question.
2020 target on how realistic.
They are today.
We finished 2020 to $53 54000 barrels per day.
And we are really.
Having a very good 'twenty.
EBITDA was 2022 and we see 2023.
Growing in the similar range that we've been growing so fast. So we said for for you to calculate you should assume that we will be continue growing around 15% to 20% growth in production volumes you had already.
On your statement is right I mean, if you do that calculation you will find that probably at the end of 'twenty 2020 think we should be about the number that we proposed in the Investor day that was 80000 barrel per day. So yes, we are coming.
And and definitely if we continue growing.
But I don't see why we should not do that.
We will have a higher target.
Related to our offer at all.
By the way.
On the operational model and business model that we use to develop.
I think you have to consider that.
That will continue developing our says.
The deal that we have with Trafigura is have worked really well.
But in Europe , but is something that we would do in.
And basically when we need when we need to add more.
More capex about what we have.
Our plan is going to be conceded on the economic basis. The reality is that while I paid I think it's going to be integrated into <unk> by the way it is already integrated.
There was performing excellent.
We have the same result that we have and because by the way.
And by the way, but number one.
Roof.
The east side of our colored by the way it did.
With that.
Pretty good.
We cannot put it.
Really.
Nice portion of it by the way also two hour abide by the order book.
So all that you have to consider that from the operation point of view, if one fee for US one operational set up so.
Nothing we are adding.
More acreage is making our position through 2020 seek very strong because the portfolio is very strong.
And of course.
As we develop we will inquire encounter more challenge, but thats much acquisition that we have of the quality that we got more robust is our plan and our performance.
Does that answer your question Andres.
It does thank you.
Thank you one moment for our next question. Please.
Our next question comes from the line of Walter <unk> with Santander.
Hello, Good morning, congratulations for the very strong quarter.
Microsoft.
Regarding the infrastructure.
Rand.
In the country.
How important do you see that.
Over the long term growth for the company.
Some information that was released publicly.
Medium mostly.
But.
I would like to ask you kind of.
Could you how do you see those projects evolving over time.
But the private sector companies.
These studies.
Some intervention and those proceeds but again, although positive towards us.
That's from my side. Thank you.
Thank you for your question.
Yes, we are participating in all of that our strategy is basically to upkeep actively participate in this bunch on projects of all the advice side of it.
But come with the.
No.
Also we are using in considering other options in order to maximize.
The optionality on the potential of evacuation.
Starting with our device.
No I mean, we have the made by line.
280000 barrel per day.
Currently our full capacity.
Mr. Today, they're important around 42000 barrels per day in the world.
And as you said and is probably key publicly no different.
<unk> expansion project.
Of 225, South somebody look better rate that is aimed to that.
Capacity early 'twenty 'twenty photo or the beginning of 2025, we have a public tender for expansion that took place last week, we participate on it.
One of the results that we saw it.
It's a clear.
Aim of a clear ambition of most of the participants to increase production above what the market was expecting.
And now under one is analyzing those beat on.
Basically consider how to allocate our capacity and probably even look at the offshore to offer to even larger expansion or more capacity. So we remain super confident in.
In that location.
Meanwhile, something that we are doing as well is tracking.
Part of our relationship with Trafigura.
We have set up.
A wave of trucking.
Around 5000 barrel per day, we are using <unk>.
<unk> not.
<unk> come off drugs.
Of course this is costly.
But taking in consideration the knickerbocker.
It's super profitable for us to use that option.
Nishu.
Optionality that we are looking at and we are working on.
One is.
Basically.
Something that we call the reversal of a conductor.
Using the existing facilities I mean, therefore, sending.
There's about a two by atlantica.
Rerouting.
Well look on the crucial.
And also we are looking with a consortium.
And the option to export to Chile. So.
We have a super active.
One question I think as an industry, we are a bit behind.
Nevertheless, we don't see that compromising our current plans don't work 2026.
We will have a seasonality we are beating and optionality.
Yeah, and we will deliver the numbers that we that we put on it.
Perfect. Thank you very much.
The work on this.
Well thank you.
And for our next question please.
Comes from the line of Regis Cardoso with credit Suisse. Your line is open.
Thank you good morning, everyone. Good morning, Congratulations Michelle.
Excellent results.
Two topics I would like to discuss with you one is balanced between.
Capex reinvestment and shareholder remuneration.
And maybe bring to the discussion.
Kind of the pace or.
The level of your exports. So are you expect it to continue increase in your.
Share of exports and therefore generate more of your revenue picture international prices.
That would be a driver.
For to have higher cash from operations on the same production, let's say.
And if you do have more cash from operations there.
Yeah.
Are you going to redirect it to two topics or do you plan to do more of shareholder remuneration, either buybacks or dividends.
Likewise.
We discussed this in the previous question.
As you reinvest in and you will continue to growing production what are your next hurdles in terms of logistics as well as your piece of pie.
Do you are you required at any point to let's say.
We'll keep mortgage capital lower returning assets like midstream.
So I mean, it's more of a discussion and a specific question, but overall do you expect to generate more cash how do you redirect it from.
Between investments and shareholder remuneration.
Particular touching on those points of share of exports.
And the pace of additional wells and requirements in midstream. Thank you.
Hi. This is call you on thank you very much for your question so look at it.
Related to the port that is probably the most straightforward once every single barrel that we at igo to export if you remember in our Investor Day, We said that we say, we calculate that we would have probably a mix of 60% and 40% in the local market.
Considering the volume that we have calculated that time that it was an avalanche of 80000 barrels a day of production.
In 2026.
So that 60 40.
Today, we have more production.
Could it be higher than 60% of the reality today any additional Nevada scene, we have we.
We have the local market as the industry fully supplier.
Us too.
Two airports and if you follow.
The export market that the percentage beat under risk you see in the incremental in the industry.
Mine by mine quarter by quarter, how we are.
Adding more cargoes, another even more more importation.
Quarter by quarter in terms of cash flow.
Yes of course, we will have more production.
A better price is that the one that we calculated when we have the Investor day. There were 226, there were 60.
Therefore, they are I think we signaled that.
On that plan.
Luke's generation toward 2026 of our $2 5 billion.
If you remember correctly.
Therefore.
I think we will have additional cash now.
Today, the cash that we have seen at <unk>.
We are taking care of course of the Capex.
We have a rate of growth that we want to meet.
And also.
Is in language infrastructure that we have that is around 15% to 20% in terms of production.
The address.
We are.
You've seen it using it for buyback programs of course, we are at the moment that we have to front end infrastructure to meet that plan. So that would be capex that is going to be in the first two years.
Medicaid it not only to us, but now we will have and in fact the infrastructure component.
The main case.
Expansions are all day goodbye.
After that 'twenty 'twenty four 'twenty five 'twenty five 'twenty six.
We will have we will aim to continue probably reducing debt.
Seen buyback or dividends or whatever is the best means that we've got two really.
Re rent review to our shareholders.
We don't have another plan of course, we can always come up with a plan with additional capex in order to have higher growth.
One that we have seen out to the market and this is something that we will consider based on performance and based on oil prices.
Yes.
But we said that decision will be 2025 onward.
So that is the way that we're thinking.
Basically what we are doing so in demo Capex you have to think that two.
<unk> thousand 20, <unk> work, we've got enough cash to.
Sure.
Think on orders and we have to do from now to 'twenty to 'twenty three 'twenty four infrastructure buybacks.
And continue.
The overall story that we have today.
Very clear. Thank you. Thank you and I would assume the majority of that activity will be in bajada del Palo Este and not necessarily.
No.
You need to start to think that bajada del Palo <unk>.
And the worst part.
Hello.
This is juan.
One operation for Us So we will start to develop that.
A unified that operation, but yes that is the main.
The core of our operations.
Understood. Thank you so much congratulations on the excellent.
Results so far.
Thank you very much.
Thank you for our next question please.
Thank you Rodrigo niche start with Latin Securities. Please go ahead.
Hi, good morning, everyone and congratulations on a strong quarter.
I was wondering if you could comment on Argentina school or pricing dynamics or they were making market and also exports. If you recently see an increase.
The increase in discount to international benchmark for me that equal.
And if so what's driving it then when do you expect it to normalize.
Yeah.
Thank you for the question and also for your report.
Yes.
In terms of the local market.
We have seen in Q4.
Something very similar to Q3.
Three we have.
Local prices between <unk> 60.
64, 65 range I think you should expect that Q4 will be around.
Around those numbers.
In terms of export.
As you know.
<unk>.
So first of all we plan to have four export cargoes in Q4.
As you know we saw higher discounts.
In the last.
Uh huh.
Troy.
It was September .
On October .
And that the worst impact us we all know of the lower demand that we have in the U S West coast, because sun maintenance scheduled in the refinery.
The oversupply in the end.
In the U S was cost due to the European season.
I think also that was capital.
We look at things the company one was the overlap of the secretary of energy were weak.
We have a change in Argentina, and we have a bit of delay on the water permit.
Also with us.
<unk> maintenance and refinery is ongoing in Argentina that suncor create a compounding effect. So as you know we saw these countries of $16 per barrel.
In September and now we see that coming back to normal so we see.
Probably around 13 to us in October and we see December normalizing.
At the level, probably five $4 discount.
Remember we come from one.
In July and Cedar 0.6 in August so we should continue going on.
Going through a normal discount so back to Q4, we see four cargoes.
First going October we just kind of 13 last cargo in December to go.
Florida.
Got you take an average of the discount that we have there.
On oil prices Brent prices.
We said I would consider in the range of.
92 to $95.
So we work up we believe that we will have a beat softening in dividend price in Q4 compared with Q3.
That was really helpful. Thank you.
Thank you one moment for our next question. Please.
Our next question comes from Alejandro Demichelis with.
<unk> Securities. Please go ahead.
Yes, good morning, gentlemen, congratulations on the results a couple of questions that'd be one clarification one question.
The clarification is you.
Set for next year expect 15% to 20% growth on production.
What kind of Capex should we then a few product kind of level of growth for next year. Please first question.
Hi, Alejandro.
Yes, so yes, that's correct.
We saw we see production growth in the 15, 20% rate and the Capex.
Working right now on the Capex number that we are exactly now doing the budget exercise.
But.
I think you should consider that the capex will be.
In line with the Capex that we spend.
Sure.
And this year was.
Around.
500 million total.
So you could consider a $5 1 million or a bit higher.
So the 500 include although.
All the rest here.
No.
No.
Normal capex okay.
And then for the law and all the infrastructure.
Yes, all the above.
We need to see how it goes but yes, if fee we have on the bulk is going to be additional to that.
Okay.
Okay. That's great. Thank you.
Second question is.
101.
One thing you need to consider that all they'll buy it.
The way that this structure they beat their.
The way the structure of the deal.
We've got some.
Cash at bank and whatnot, but is not really capex that way that is set up to do.
Okay. That's great. Thank you.
And then the second question is more that.
Can you tell if you want so bought 15 youre dealing with five wells is that right.
That's correct.
So is that the way you think you're going to develop.
Buckeye panel.
Going forward.
Not necessarily we have.
We keep the flexibility to do it but between Florida and six what we are you seeing.
I would've said that technology with process called cube.
If you want at some point of time.
The handoff, one or any of our guys come in can introduce to you to what we are doing.
Q is aim to avoid.
Any kind of interference between wells.
And therefore, the pain of the show at a fee that we have to be developed in a particular area where that bodies.
How our engineers and geologists and Geophysicists and look at.
Possibly interference interference between wells.
We decide if we do it by the four or five week will do part of six okay.
Of course, that's also the economic part of that.
And the delay of production and put in production and our production targets that play a role but.
Usually the main.
I would say the main factor.
That is taken into consideration on the decision of the number of but if it.
Is the rest of our management.
Managing the reservoir there.
Where possible so.
The answer is no.
Okay, we will not develop.
But you can see that we can do for <unk> dependent depending of what our technical people see it the best way to develop the rest of it.
Okay, but then can we see like we are seeing in say the U S base.
I think he will review the well spacing, we start seeing much better economics on efficiency.
We're always looking and really calculating.
The model in term of.
The sweet spot in terms of productivity.
And also.
Uh huh.
Reset of development. So we are always looking at that we are always challenging ourselves with a lender well.
This time between between debt, whereas with the positions of the wells how many window, we do choose a casino company, we don't need organic this.
It's an ongoing discussion so telling you that we will change the <unk>.
<unk> been doing with today I don't want you said I mean, we are okay with what we've got today, but it is not unthinkable that we we changed one of those parameters in the future if fee our reservoir model our.
Our reservoir model said that the best way.
Better way to develop and we have been changing okay skewing changing language change in Frac design with changing.
The.
Intensity of proppant that we put in the formation so all that viable.
Go together. So today, we are super going forward, though we are doing the work that we're doing it but we are open to change over time.
Okay. That's great. Thank you.
Yes.
Thank you and as a reminder to ask a question simply press star one on your telephone one moment for our next question. Please.
It comes from the line of SA kiosk Fernandez with the balance. Please go ahead.
Hi, good morning, everybody.
Gil tremendous from Berlin.
Thank you <unk>.
Cereals, very complete it's always and congratulations.
<unk> results.
I have three questions I would like to go one by one if you don't mind. The first one is related to.
I don't know if with the positive result in your view.
Oh hub.
Sure.
Okay.
Under the consultancy.
Are you, putting maybe more on the back burner. If you will continue to work on that next year.
So it's a.
That is no no no at all.
We are planning to do two wells in Angola Moura.
Between the end of the year beginning of next year. So nothing we go ahead with the plan or continue the risk in that block.
Yeah.
Okay, great. Thank you.
I would like to <unk> sorry for the.
Systems, maybe to some of the topics that Walter.
Budgets.
I'll handle mentioned on all the while and the expansion of the coastal terminals.
Securing that capacity or at least a portion of that capacity for a bit though.
You mentioned that.
You should not face significant one equity investment upfront for that.
So should we conclude that it should be mostly about signing.
Long term take or pay contracts for securing that capacity.
Yes, Ethan advancement.
It's not capex, but we got Pablo their opinion.
Because.
Cedar phone line and shipping.
Following that tender I don't know Paul if you want to add something to that.
Sure in terms of sort of financially what it means this would be under the structure contemplated by all the advanced payments, but I'd say that would not be recognized the capex that they would be in cash outflow.
Towards the end of this year in the course of next year.
Process is still open and they're being we're having discussions with all the advisors.
Other producers to accommodate our needs with the capacity.
I can offer and obviously, we think there is more capacity to be offered.
Then what they have tendered so far.
Our preliminary assessment is that we should not have issues accommodating the production ramp up that we have presented in the Investor day presentation.
Okay.
That's great. Thank you very much my final question is related to the old viral expansion.
A little bit more than 200000 barrels per day right.
That would mean, one third of the current nationwide production in Argentina.
So could.
Could we expect.
Pipe expansion to be field, maybe in three four years and maybe all those barrels go to the export market.
Hearing that there are no refinery expansions planned in Argentina or would that be too optimistic.
Right.
Great.
We model.
The production of Argentina and of course, we have a view for that.
The reality is.
I think so first of all what we saw in the in the in the beat was that.
Basically everybody half.
Probably greatest ambitions to further our plan to grow in the next few yet and no doubt about.
You said piece of that as I mentioned before we are looking to other options.
All the while if any is an important one.
It will add the low capacity, but the reversal overdose can be back somewhat.
To achieve that.
A potential back somewhat.
South pipeline.
There are discussions about that I think you will see all those projects as we move along.
Coming together at a wee bit late today, yes, I think we are the latest industry.
In having the second by lineup led by and another thing to happen is that all that I can see that in two half.
If Atlanta carrier capacity to the one that was software I mean, all that discussions are today online.
Okay. That's great. Thank you for the general color and.
Quick question.
Thank you and I'm not showing any further questions in the queue, Sir I will pass it back to management for any final remarks.
Okay.
Alright.
Once again, thank you very much for your support for the questions for the report.
I take the opportunity to thank the team.
So, Florida hard work for the understandably so that we have this quarter.
And with that we close the line.
All of you have a good date.
Thank you for participating in today's program.
Includes the Q&A and the presentation you may now disconnect.
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