Q4 2023 Vista Energy SAB de CV Earnings Call

February 21, 2024

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Good day and thank you for standing by welcome to <unk> fourth quarter 2023 earnings webcast. At this time all participants are in a listen only mode.

Operator: Good day, and thank you for standing by. Welcome to Vista's fourth quarter 2023 earnings webcast. At this time, all participants are in a listen-only mode.

Operator: 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 telephone. You will then hear an automated message advising that your hand is raised.

Seekers presentation, there will be a question and answer session to ask a question. During the session you will need to press star one one on your telephone you will then hear and automate a message of dicing. Your hand this waste to withdraw your question Press Star one again, please be advised that todays call.

Operator: To withdraw your question, press star one one again. Please, we advise that today's conference is being recorded. I would now like to hand the conference over to Visa Strategic Planning and Investor Relations Officer Alejandro Chernicoff. Thanks. Good morning, everyone.

And is being recorded I would now like to hand, the conference over to be so strategic planning and Investor Relations Officer, Alejandro Chinese cough.

Thanks, Good morning, everyone.

Alejandro Chernicoff: We are happy to welcome you to Vista's fourth quarter and full year 2023 results conference. I am here with Miguel Galuccio, Vista's Chairman and CEO, Pablo Verapinto, Vista's CFO, and Juan Garoby, Vista's COO. Before we begin, I would like to draw your attention to our cautionary statement on slide 2. 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 the. Our financial figures are stated in U.S. dollars and in accordance with International Financial Reporting Standards, IFRS. However, during this call, we may discuss certain non-IFRS financial measures, such as Adjusted EVDA and Adjusted Net Profit. Reconciliation of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday.

We're happy to welcome you to discuss fourth quarter and full year 2023 results conference call I am here with me.

<unk>, Chairman and CEO, Pablo Vera Pinto, Vista's, CFO, and one that Obi B C O O.

Before 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 may include forward looking statements.

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 <unk> Alright.

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 fire price measure can be found in the earnings release that we issued yesterday.

Miguel Matias Galuccio: Please check our website for further information. Our company, Vista, is a Sociedad Anonima Bursátil de Capital Variable organized under the laws of Mexico and registered in the Bolsa Mexicana de Valores and the New York Stock Exchange. Our ticket is Vista in the Bolsa Mexicana de Valores and BIST in the New York Stock Exchange. I will now turn the call over to me. Thanks, Ale.

Please check our website for further information.

Our company Vista is associate annually in our satellite capital body outlet organized under the laws of Mexico reduced and there was some kind of level loaded and the New York Stock Exchange article It got.

In the Bolsa Mexicana de Valores <unk> in the New York Stock Exchange I will now turn the call over to Miguel.

Thanks Ali and good morning, and we're going to this earnings call. We have an exceptional year. In 2023, we have continued to deliver strong operational and financial results with double digit growth improved reserves total production and adjusted EBITDA.

Miguel Matias Galuccio: Good morning and welcome to this earnings call. We had an exceptional year in 2023. We continued to deliver a strong operational and financial result with double-digit growth, improved reserves, total production, and adjusted EVDA. We also secured oil-missing capacity in key projects, which underpin our updated production target for 2026. Our outstanding performance was reflected by our stock price performance, which doubled during the year.

We also secured oil mistake capacity in key projects.

Underpinning our updated production target for 2026.

Our outstanding performance reflected by our stock price performance, which doubled during the year.

Miguel Matias Galuccio: I will now present our Q4 2023 results and then move on to our full year results. During Q4, we continued to focus on drilling and completion activities in Bajada del Palo Oeste. [inaudible] surpassing our consolidated production level prior to the transfer of other conventional assets in Q1 2026. Total production was 56.4 thousand BOEs per day during the four quarters, 14% above sequentially and 60% above internally on a pro forma basis. Our production was 48.5 thousand barrels of oil per day, 70% above the previous quarter and 80% above the same quarter of last year also on a performance basis. Total revenues during the quarter were $309 million, 2% above the previous quarter. We continue reducing our lifting costs, reaching $4.3 WOE during the quarter.

I will now present, our Q4 2023 result.

Then move on to our full year results.

During Q4, we continued to focus on drilling and completion activity in bajada del Palo Este.

This led to a sequential growth in total production, surpassing our consolidated production levels prior to the transfer of our conventional assets in Q1 2023.

Total production was $56 4000, Boe's per day during the fourth quarter, 14% above sequentially and 60% above interim annually on a pro forma basis.

Production was 48 5000 barrels oil per day, 70% of all the previous quarter and 87% above the same quarter of last year also on a pro forma basis.

Total revenues during the quarter were $309 million to posting above the previous quarter.

We continue reducing our lifting costs leaching for $3 <unk> during the quarter.

Miguel Matias Galuccio: Capital expenditure was $212 million, mainly driven by 11 wells drilled and seven wells completed during the quarter. In Q4 2023, adjusted EVDA was $288 million. 43% above year-over-year, supported by stable revenues and other operating income growth amid lower lifting costs. Adjusted net income was $240 million, implying a quarterly adjusted EPS of $2.5 per share, mainly driven by higher adjusted EVDA and the positive impact of the reduction in the full year income tax. We recorded positive free cash flow of $107 million during the quarter, driven by strong EBITDA generation and normalization of working capital compared with the previous quarter. The net leverage ratio at the quarter end was a solid 0.46 times adjusted EVDA.

Capital expenditure was $212 million mainly.

Mainly driven by 11 wells drilling in Sterling were completing during the quarter.

In Q4, 2023, adjusted EBITDA was $288 million, 43% above year over year supported by the stable revenues. Another operated income grow Amit lower lifting costs.

Adjusted net income was $240 million.

Implying a quarterly adjusted EPS of $2 $5 per share, mainly driven by higher adjusted EBITDA and the positive impact of the reduction in the full year income tax.

We recorded positive free cash flow $107 million during the quarter.

Given by a strong EBITDA generation and normalization of working capital compared with the previous quarter.

Net leverage ratio at the quarter end was a solid Cedar point 46 times adjusted EBITDA.

I will now deep dive into our main operational and financial metrics of the quarter.

Miguel Matias Galuccio: I will now deep dive into our main operational and financial metrics of the quarter. Total production during Q4 2023 was 56.4 thousand BOE per day, driven by the timing of 11 wells in Bajada del Palo Este during the quarter. This led to a sequential increase of 14%. On an inter-annual basis, production increased 3%, reflecting that we have now surpassed the production level prior to the transfer of the conventional asset back in March 2023. On a pro forma basis, adjusting for the production of such assets, our total production growth was 16% year over year. During the quarter, we recorded an outstanding performance in oil production, which increased by 70% on a sequential basis and 80% on an annual performance basis. On the other hand, gas production decreased 2% quarter over quarter, impacting our Q4 total production target and the exit rate.

Total production during Q4 2023 was $56 4000, Boe's per day, driven by the tie in of 11 wells in Bajada del Palo Este during the quarter.

This led to a sequential increase of 14%.

On an annual basis production increased 3%, reflecting that we have now surpassed the production levels prior to the transfer of the conventional asset back in March 2023.

On a pro forma basis adjusting by the production of such asset our total production growth was 16% year over year.

During the quarter, we recorded an outstanding performance in oil production, which increased by 70% on a sequential basis.

And 80% on annual pro forma basis.

One other can gas production decreased 2% quarter over quarter impacting our Q4 total production target and the exit rate.

This was mainly due to the fact that during the quarter, we tie in to put in the northeast.

Palo Este, which has a lower gas to oil ratio another part of our acreage.

During the fourth quarter of 2023, we continue in full development mode.

With the 100% of the drilling and completion activity.

We are dying 11 wells during the quarter impact.

Our 2019, 2020 one.

The timing is boosted production in Q4 and led to an exit rate close to 60000 Boe's per day.

Miguel Matias Galuccio: This was mainly due to the fact that during the quarter, we tied in two parts in the northeast of Bajada del Palo Oeste, which has a lower gas-to-oil ratio than other parts of our economy. During the fourth quarter of 2023, we continue in full development mode, with 100% of the drilling and completion activity in Bajada del Palo. We tie in 11 wells during the quarter, impacting Bajada del Palo West 19, 20, and 21. The tie-ins boosted production in Q4 and led to an exit rate close to 60,000 VOEs per day. The tying of 23 new wells during the second semester of 2023 reflects full utilization of two drilling rigs and one spud rig, with a run rate of 46 new wells per year in line with our 2024 plan, which we will discuss later on. During Q4 2023, our revenues were stable year over year. Oil Production Growth of Set Lower Reliability Price. Total revenues were $309 million.

The timing of 23, new wells during the second semester of 2023 reflects full utilization of two drilling rigs and one spudder rig.

With a run rate of 46, new wells per year in line with our 2024 plan, which we will discuss later on.

During Q4, 2023 or revenues were stable year over year as oil production growth offset lower realized prices.

Total revenues were $309 million.

2% increase compared.

Water and 3% decline compared to Q4 2022.

This was mainly driven by lower gas production.

Discussed previously a 50% decline in gas prices.

Sales to export market accounted for 49% of the volume.

53 of net oil revenues.

42 million barrel of oil composed by one six barrels through the Atlantic and 0.4 million barrels by pipeline to Chile.

Realized oil price for the quarter averaged $67 $8 per barrel.

Down 2% year over year.

And flat compared to the previous quarter.

The average realized domestic price was $63 $7 per barrel.

Why they realize export price was $72 per barrel.

Miguel Matias Galuccio: 2% increase compared to the previous quarter and a 3% decline compared to Q4 2022. This was mainly driven by lower gas production, as discussed previously, and a 50% decline in gas prices. Sales to the export market accounted for 49% of the oil volume.

We are seeing good recovery in the domestic prices.

In line with the 65% to $66 range for January and February which is key to fund our growth plan.

Lifting cost was $22 3 million for the quarter.

Miguel Matias Galuccio: 53 of Net Oil Revenue. We exported 2 million barrels of oil, composed of 1.6 barrels through the Atlantic and 0.4 million barrels by pipeline to Chile. The realized oil price for the quarter averaged $67.8 per barrel, down 2% year over year and flat compared to the previous quarter. The average realized domestic price was $63.7 per barrel, and the realized export price was $74.2 per barrel. We are seeing good recovery in domestic prices, with crude in line with the $65 to $66 range for January and February, which is key to fund our growth plan. The lifting cost was $22.3 million for the quarter.

38% decrease compared to the same quarter of last year.

Lifting cost per <unk> was $4 $3, a decrease of 40% compared to Q4 2022.

These results continue to reflect the positive impact of our new operating model fully focused on our shale oil asset following the transfer of the conventional assets in the first quarter of the year.

On a sequential basis lifting cost per <unk> was down 11% as the ramp up of production volumes continued to dilute fixed costs.

We expect this trend to continue during 2024.

The devaluation of the peso of approximately 130% led to cost savings in the second half of December.

We are still closely monitoring the full impact of this event on our lifting cost of Q1 2024.

Adjusted EBITDA during Q4, 2023 was $288 million, an increase of 43% year over year.

Our adjusted EBITDA performance was supported by production growth and lower lifting cost.

Miguel Matias Galuccio: 38% decrease compared to the same quarter of last year. Lifting cost per VOE was $4.3, a decrease of 40% compared to Q4 2022. These results continue to reflect the positive impact of our new operating model, fully focused on our shale oil asset, following the transfer of the conventional asset in the first quarter of the year. On a sequential basis, lifting costs per VOE were down 11% as the ramp-up of production volumes continued to dilute fixed costs. We expect this trend to continue during 2024. The devaluation of the peso by approximately 130% led to cost savings in the second half of December.

It also include $81 million in gains from repatriation of 27% of initially export proceed at the Blue chip swap exchange rate.

This game has been accounted for in other income this.

These benefits have been extended.

Im currently allow us to repatriate, 20% of our exports are blue chip swap rate.

We continue to see an expansion of margins.

Adjusted EBITDA margin was 73% during the quarter and in turn will increase of 7% points.

Note that we have added.

Other income from the repatriation of April proceed at the Blue chip to our revenue to calculate our adjusted EBITDA margin.

This provides a more accurate representation of our margins.

For more details. Please see the early notes released yesterday afternoon.

Netback during the quarter was $55 $6 per Boe.

Miguel Matias Galuccio: We are still closely monitoring the full impact of this event on our lifting costs for Q1 2024. Adjusted EVDA during Q4 2023 was $288 million, an increase of 43% year over year. Ashanti DVDA's performance was supported by production growth and lower lifting costs. It also includes $81 million in gains from repatriation of 27% of energy export proceeds at the blue chip swap exchange rate. This gain has been accounted for in other income.

39% increase year over year.

During Q4 2023, we have another positive free cash flow quarter cash.

Cash from operating activities was $347 million, reflecting higher adjusted EBITDA generation and normalization of working capital related to sell collections.

Cash flow used in investing activities was $240 million.

In line with capital expenditures of $212 million.

A $70 million increase in working capital related to Capex.

Free cash flow during Q4, 2023 was therefore $107 million.

Cash used in financing activities was $67 million drill.

Miguel Matias Galuccio: This benefit has been extended and currently allows us to repatriate 20% of our exports at blue chip swap rates. We continue to see an expansion of the market. Ashanti WDA margin was 73% during the quarter, an inter-annual increase of 7% point.

Driven by the prepayment of local bonds asserted by peso inflation as well as born CD three in hard currency.

Net leverage ratio stood at <unk> 46 times adjusted EBITDA at quarter end.

Cash at the end of the period was $213 million.

We now move on to the full year results. During 2023, we made solid progress across our four strategic.

Miguel Matias Galuccio: Note that we have added the other income from the repatriation of export proceeds at the blue chip to our revenues to calculate our adjusted EBDI margin. This provides a more accurate representation of our market. For more detail, please see the earnings notes released yesterday afternoon. Net back during the quarter was $55.6 per VOE.

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We increased reserves and well inventory, reflecting the growth potential and the quality of our asset base.

One reserve increased 27% year over year to 319 million Boe's.

While inventory increased 28% year over year to 1150 west.

Which only 19 eyewear on production at the end of 2023.

Miguel Matias Galuccio: 39% increase year-over-year. During Q4 2023, we will have another positive free cash flow quarter. Cash from operating activities was $347 million, reflecting higher adjusted EBDA generation and normalization of working capital related to sales collection. Cash flow used in investing activities of $240 million dollars, in line with the capital expenditures of $212 million dollars and a $70 million increase in working capital related to Free cash flow during Q4 2023 was therefore $107 million. Cash used in financing activities was $67 million, driven by the prepayment of local bonds adjusted by peso inflation, as well as bond CD3 in hard currency. The net leverage ratio stood at 0.46 times adjusted VDA at quarter end.

We also delivered solid operational performance, maintaining our status as the <unk>.

Leading operator and <unk>.

Total production was 51 1000 Boe's per day.

5% inter annual increase.

Or 80% on a pro forma basis adjusted by the transfer of the conventional assets in March 2023.

The lifting cost was reduced 33% year over year to $5 $1 per <unk>.

Our cost saving delivery.

It was better than planned, reflecting a 7% improvement be savvy, our $5 $5 per Boe guidance.

Additionally, we made strong progress in sustainability, we reduce emission intensity by 13% to 15, six milligram of <unk>, which place our company in the best quartile compared to the comparable upstream player worldwide.

I am also very proud of our safety track record.

Total recordable incident rate, including employees and contractors was below one every year for the last 40 years.

With the Cedar point to for 2023.

Finally during 2023, we continue to deliver robust total shareholder returns.

Miguel Matias Galuccio: Cash at the end of the period was $213 million. We now move on to the full year results. During 2023, we made solid progress across our four strategic. [inaudible] We increased P1 reserves and well inventory, reflecting the growth potential and the quality of our asset base. P1 Reserves increased 27% year-over-year to 319 million BOE.

Adjusted EBITDA was $871 million.

Up 14% compared to 2022.

Our stock price increased 115% from December 31, 2022 up.

To date.

As I mentioned previously <unk> reserves increased 27% compared to 2022 for a total of $318 5 million Boe's estimated at year end 2023.

This implies a total reserve replacement ratio of 458%.

Miguel Matias Galuccio: Well inventory increased 28% year-over-year to 1,150 wells, of which only 99 were on production at the end of 2026. We also delivered solid operational performance, maintaining our status as a leading operator in Bacchus Morte. Total production was 51.1 thousand BOEs per day, a 5% inter-annual increase or 80% on a pro-forma basis adjusted by the transfer of the conventional assets in March 2026. The lifting cost was reduced 33% year over year to $5.1 per DOE.

485% for oil.

Proved reserve life increased by 20% to 17 years.

Net additions were $85 5 million boe's driven by activity in Bajada del Palo Este, where we added 40, new well locations and the highlight by the way, where we added 26 locations.

This resulted in a total of 297 book well locations in our Q1 results.

The certified present value at 10% discount rate attributable to the company interest in <unk> itself is $3 3 billion using a price assumption of $66 $5 per barrel for oil according to the ACC.

Miguel Matias Galuccio: Our cost-saving delivery was better than planned, reflecting a 7% improvement vis-a-vis our $5.50 per BOE guidance. Additionally, we made strong progress in sustainability; we reduced emission intensity by 13% to 15.6 kilograms of CO2 equivalent, which places our company in the best quartile compared to the comparable Astrin player worldwide. I am also very proud of our safety track record; the total recordable incident rate, including employee and contract, was below one every year for the last four years, with a 0.2 in 2026.

<unk> lines.

During 2023, we also achieved significant operating milestones with diene 31, new ways to above our original guidance.

These drilling and completion activity boosted our total production leading to an 18% increase year over year on a pro forma basis.

Most of our drilling and completion activity in the first semester targeted the derisking of our blocks solid productivity resold in annular Moura Amber highlighted Palo Este allowed us to expand our inventory by 250 words.

During the year, we successfully secure.

Take away capacity to deliver on our 2020 plan.

We obtain capacity in two key projects.

12, 5000 barrels of oil per day in the back of mortality by line and 31 5000 barrels of oil per day in the <unk> expansion.

Miguel Matias Galuccio: Finally, during 2023, we continue to deliver robust total shareholder return. Saturday VDA was $871 million, up 14% compared to 2022. Our stock price increased 115% from December 31, 2022 up to today. As I mentioned previously, P-1 reserves increased 27% compared to 2022 for a total of 318.5 million BOEs estimated at year-end 2023. This implies a total resource replacement ratio of 458%, and 485% for oil. The roof reserve life increased by 20% to 17 years. Net additions were 85.5 million BOEs, driven by the activity in Bajada del Palo Oeste. 40 New World Locations, Embajada del Palo Oeste, where we added 26 locations. This resulted in a total of 297 book well locations in our P1 reserve.

The treatment planning our development hub was expanded to 70000 barrels of oil per day.

We are currently working on another project.

Increased total treatment capacity to 85000 barrels of oil per day before year end.

In terms of export volumes in 2023, we increased airport to 52% of total oil stays up.

Up from 44% in 2022.

This was boosted by higher production and the startup of exports to Chile.

<unk> reached $4 7000 barrels of oil per day in Q4 2023.

During 2023, we also made solid progress in our emissions reduction and nature based solution projects.

Or are they kind of monetization projects included the installation of a new base for a recovery unit optimization of glycol.

Hesitation process and the addition of renewable two hour NLC metric among other projects.

The implementation of such projects led to the reduction of the KOB, one and two.

In Greece greenhouse gas emissions by 30% year over year.

Miguel Matias Galuccio: The certified present value at a 10% discount rate attributable to the company's interest in P1 Reserve is $3.3 billion, using a price assumption of $66.5 per barrel for oil, according to the SEC guidelines. During 2023, we also achieved a significant operating milestone. We tie in 31 new wells, two above our original guidance. These drilling and completion activities boost our total production, leading to an 18% increase year-over-year on a pro forma basis. Most of our drilling and completion activity in the first semester targeted the derisking of our blocks.

As previously discussed emission intensity was also reduced by 30% over the same period 215 kilos of <unk>.

Regarding nature based solutions.

Our subsidiary <unk>.

<unk> achieved significant milestones during the year.

We finalized planting our flag ship brushing enrolling way with $2 5 million trees and.

So preparation activities in enabling plot of land in and either.

We have initiated work in our forest conservation projecting shower gel.

Also made good progress in should resonate agriculture and livestock projects.

Miguel Matias Galuccio: Solid Productivity Resolve in Aguila Mora, Embajado del Palo Este, allowed us to expand our inventory by 250 wells. During the year, we successfully secured the take-away capacity to deliver on our 2026 plan; we obtain capacity in two key projects. 12.5 thousand barrels of oil per day in the Vaca Muerta Norte pipeline and 31.5 thousand barrels of oil per day in the Old El Valle expansion. The treatment plan in our development hub was expanded to 70,000 gallons of oil per day.

In parallel we started the process to certify the cutoff grade.

Our projects.

Barbara.

We have consistently delivered strong financial metrics over the last three years, resulting in superior total shareholder returns.

Adjusted EBITDA increased by 14% year over year to $871 million in line with the midpoint of our original guidance.

Ottawa AC was 39% consistently delivering top tier return on capital in the energy sector.

Adjusted EPS per share was $5 $2, an increase of 24% compared to 2022, driven by an adjusted net income of $191 million.

Miguel Matias Galuccio: We are currently working on another project to increase total treatment capacity to 85,000 barrels of oil per day before year end. In terms of export volumes, in 2023, we increased oil exports to 52% of total oil sales, up from 44% in 2021. This was boosted by higher production. [inaudible] 4.7 thousand barrels of oil per day in Q4 2026. During 2023, we also made solid progress in our emissions reduction and nature-based solution projects. Our decarbonization projects included the installation of a new vapor recovery unit, optimization of the glycol dehydration process, and the addition of renewables to our energy metric, among other projects. Implementation of such projects led to the reduction of COP 1 and 2, increase greenhouse gas emissions by 30% year over year. As previously discussed, emission intensity was also reduced by 30% over the same period to 15.6 kilos of CO2 equivalent per VOH.

We maintained healthy financial ratios with gross leverage at Cedar point, 71 times, adjusted EBITDA and net leverage at <unk> 46 times.

This outstanding performance across all financial metrics is reflected in the evolution of our share price, which more than doubled since year end 2022 to this date outperforming our peers in Latam obtain space.

I will now share our 2024 guidance as.

As discussed during our Investor Day last September we plan to increase the number of times to 40 seek by utilizing our existing drilling and completion capacity.

The entire drilling campaign will be focused on our development hub with most was in our flagship development in Buckhead.

Sure.

Based on this activity Capex is forecast to increase two 9 million.

In 2024.

According to our model this activity will boost our production to between 68 and 70000 Boe's per day during 2024.

We expect lifting costs to continue to decrease on the back on focus on efficiency and the dilution of fixed costs by additional production volumes we.

We are forecasting $4 $5 per Boe in 2024.

Miguel Matias Galuccio: Regarding nature-based solutions, our subsidiary, AYKE, achieved significant milestones during the year. We finalized planting our flagship project in Rolón, Cueva, with 2.5 million trees, and initiated Soil Preparation Activities in a Neighboring Plot of Land in Villa Cenayda. We have initiated work on our forest conservation project in Chaguaral and also made good progress on regenerative agriculture and livestock projects. In parallel, we started the process to certify the carbon credits of our projects with VERRA.

Adjusted EBITDA is forecast to increase to between 1 billion and 115 billion using our realized oil price of 65 to $70 per barrel.

Finally, we expect to continue reducing our greenhouse gas emissions intensity during 2024 in line with our 2020 secret action targets.

I will now summarize the key takeaways of today's presentation.

During 2023, we delivered robust operational and financial performance.

With double digit growth improved reserve.

<unk> production and adjusted EBITDA.

The transfer of our conventional asset.

Comparative data into a fully focused <unk> company with lower cost.

Miguel Matias Galuccio: We have consistently derived strong financial metrics over the last three years, resulting in superior total shareholder returns. Adjusted EVDA increased by 14% year-over-year to $871 million, in line with the midpoint of our original guidance. ROAC was 39% consistently delivering top-tier return of capital in the energy sector. Adjusted EPS per share was $5.2, an increase of 24% compared to 2022, driven by an adjusted net income of $191 million. We maintained healthy financial ratios, with gross leverage at 0.71 times adjusted EVDA, and net leverage at 0.46 times.

And higher margins.

Our robust performance during the year continues to prove our ability to deliver on our superior total shareholder return proposition.

Selected by our peer leading share price performance.

We issue an updated strategic plan.

Courted by our large high quality inventory, our operating credentials, our existing drilling and completion capacity.

Having secure midstream capacity to deliver on our production targets.

In this respect we are well on track to double our production to 100000 Boe's per day by 2026.

Our 2024, our guidance is the first step in this direction with production growth of 35% and adjusted EBITDA growth of 23%.

We plan to deliver on our 2024 and 2020 targets using our own cash generation.

Before we move to Q&A.

I would like to thank our investors for their continued support.

The entire team at <unk> for their commitment and hard work during 2023.

I look forward to an equally successful 2024.

And seeing you in our next earnings call operator, Please open the line for Q&A.

And as a reminder to ask a question simply press Star one one on your telephone and wait for your name to be announced to withdraw your question Press Star one again.

Miguel Matias Galuccio: Based on this activity, CAPEC is forecast to increase to $900 million in 2024. [inaudible] According to our model, this activity will boost our production to between 68 and 70,000 BOEs per day during 2024. We expect lifting costs to continue to decrease on the back of a focus on efficiency and the dilution of fixed costs by additional production volumes.

One moment for our first question please.

Alright first question is from Bruno Montanari with Morgan Stanley. Please proceed.

Good morning, everyone. Thanks for taking my question.

Let me give so many great achievements through the year with the reserves the cost evolution in the financial results, which speak for themselves.

So I have two questions one Bob could actually both are about production, but the first question.

Miguel Matias Galuccio: We are forecasting $4.5 per BOE in 2024, and Adjusted EBITDA is forecast to increase to between $1 billion and $1.15 billion using a realized oil price of $65 to $70 per barrel. Finally, we expect to continue reducing our greenhouse gas emissions intensity during 2024 in line with our 2026 reduction target.

EBIT shortfall in production very soon.

Regional targets you have understood. The gas issue you mentioned, but it seems that for audio there was also a little bit less production. So if you could.

Add a little bit more color on why that happened.

What the company is doing to overcome that that would be great.

If you could discuss.

Can you go in 2024, you mentioned that you are fully utilizing the existing equipment. So is there any optionality.

To bringing more equivalent Argentina, what is the likelihood of that happening.

So how should we think about these 60.

68% to 70000 barrels per day for more coincidence.

Miguel Matias Galuccio: I will now summarize the key takeaways of today's presentation. During 2023, we will deliver robust operational and financial performance with Double-Digit Grow, Improved Reserve, Total Production, and Adjusted EVDA. The transfer of our conventional assets has converted Vista into a fully focused back-and-forth company with lower costs and higher margins.

Reaching 70, if there is upside to that number so any color. There would also be super helpful. Thank you very much.

Hi, Bruno.

Thank you very much for your comments on Andrew.

Right.

Our production.

Yes first of all I would have said I mean, we closed.

Let me give you a bit of explanation. We closed Q3 2023 at almost 50000 barrels per day.

At that time, we got we guide on a sequential growth of 20% for Q4.

We achieved really another 20%, we achieved an oil production increase of 70% quarter on quarter, but natural gas production decreased 2%.

Miguel Matias Galuccio: Our robust performance during the year continues to prove our ability to deliver on our superior total shareholder return proposition, reflected by our peer-leading share price performance. We issue an updated strategic plan. Supported by our large.

We've made very good effort to offset the lower production of the queue pilot that we mentioned before.

The Q was a pilot and we were testing two frac one soon.

Miguel Matias Galuccio: High-Quality Inventory, Our Operating Credentials, Our Existing Drilling and Completion Capacity, and having secure ministering capacity to deliver on our production target. In this respect, we are well on track to double our production to 100,000 BOEs per day by 2026. Our 2024 guidance is the first step in this direction, with production growth of 35% and adjusted EVDA growth of 23%. We plan to deliver on our 2024 and 2026 targets using our own cash generation. Before we move to Q&A, I would like to thank our investors for their continued support. And the entire team at Vista for their commitment and hard work during 2023.

At the same time Unclearly.

The intensity of refractory, even though we are evaluating it didn't give the result that we were expecting before.

At the Bu level impact of 2% in quarter of coding decreasing our production explain half of the quarter and meet our gas production decrease by two factor one.

Basically there was that we connected gas lower gas oil ratio in the notice of bajada, Palo Este and.

And also we had higher downtime of the legacy wells.

Or the legacy conventional conventional wells that we have in production.

Regarding our 2012 the forward guidance, we reiterate our target of 2000 20000 barrel oil per day.

You should expect that Q1 2024 is at similar levels compared with Q4 2023.

We plan to tie in this quarter 11 wells, we have three of them already tightening.

As with the in the race.

At the end of Q1.

You should see the second half of.

Operator: I look forward to an equally successful 2024 and seeing you on our next earnings call. Operator, please open the line for Q&A. Thank you. And as a reminder, to ask a question, simply press star 11 on your telephone and wait for your name to be announced. To withdraw a question, press star 11 again.

The first half of Q2 with a robust production growth.

For Q2, then from Q2 onwards, ICU, you should expect between 10 and 50% growth quarter on quarter, arriving around in Q4 to an average of 80000 barrel oil per day.

Regarding the activity. Our current plan is to fully utilize all of our contracted fleet, we have two working rigs and Guan as Butler.

We are working on potentially speeding up the timing of one or two but.

Bruno Montanari: One moment for our first question. All right, the first question is from Bruno Montanari with Morgan Stanley. Please proceed.

That included in 2024 planned hiring and import and export drilling and completion.

Miguel Matias Galuccio: Miguel, many great achievements this year with the reserves, the cost evolution, and the financial results, which speak for themselves. I have two questions, actually both about production, but the first question is about production: there was a bit of a shortfall in production versus the original targets you had. I understand the gas issue you mentioned, but it seemed that for oil, there was also a little bit less production, so if you could add a little bit more color on why that happened and then what the company is doing to overcome that, that would be great. And then you could discuss what more you can do in 2024. You mentioned that you're fully utilizing the existing equipment, so is there any option to bring more equipment to Argentina, what is the likelihood of that happening, so how should we think about these 68,000 to 70,000 barrels per day if you're more confident about reaching 70, if there is upside to that number, so any color there would also be super helpful. Thank you very much.

Rick.

And completion capacity.

So I think this one is <unk>.

Pretty much is going to happen.

In parallel.

We are looking.

We are having discussion with several oil service companies provider to see if we can bring more equipment in term of drilling and completion capacity to the country. So that discussion is ongoing. So you can factor in the fact that we are going to have on us.

A contracting and export drilling rig and sand completion capacity for one or two but the other thing is.

We have said is under negotiation, we will see if we get that right.

The right conditions to really bring more equipment to the country.

Right, so just to confirm.

These potential additional new equipment would be upside to the existing.

Drilling plan right that's correct Bruno.

Okay. Thanks again.

Thank you one moment for our next question. Please.

It comes from the line of parcel Vasconcellos with UBS. Please proceed.

Miguel Matias Galuccio: Hi Bruno, thank you very much for your comments and regards for production. Yes, first of all, I would say, I mean, we closed Q3 2023 at almost 50,000 barrels per day. At that time, we got on a sequential growth of 20% for Q4. We achieved really not 20%.

Jaime Gail Hi, Ali auditing present present, thanks for taking my questions here I have two questions on my side the first one.

It would be great to hear your thoughts on middle East Gulf moment, so far what is going on better or worse than initially initially expected and if we change it.

Miguel Matias Galuccio: We achieved an oil production increase of 70% quarter-on-quarter, but natural gas production decreased 2%. In all, we've made a very good effort to offset the lower production of the Q pilot that we mentioned before. The Q was a pilot, and we were testing to frack one zone, eight wells at the same time. And clearly, the intensity of the fracture, even though we were evaluating it, didn't give the result that we were expecting. At the BOE level, the impact of a 2% quarterly occurring decrease in gas production explains half of the quarterly misses. Gas production decreased by two factors.

Yours company's expectations for the next 1234 years at an extent.

My second question looking forward of course, one of the main drivers for the <unk> production group right.

We already disclosed upbeat on what's dependent on the company the drilling campaigns and so on.

Of course part of this.

Chris.

Production is dependent on investment in infrastructure. So we would also be great to hear your thoughts on how investments in increasing diesel at full capacity. After Walters FEMA is going on if they are all on track and if you see any risks potential delays on these investments those are my questions. Thank you.

Miguel Matias Galuccio: One, basically, the wells that we connected have a lower gas-oil ratio in the northeast of Bajada del Palo Este, and also we have higher downtime for the legacy wells or the legacy conventional conventional wells that we have in production. Regarding our 2024 guidance, we rated a target of 20,000 barrels per day; you should expect that Q1 2024 is at similar levels compared with Q4 2023. We plan to tie in 11 wells this quarter. We have three of them already tied in.

Hi does so.

Thank you very much for your question and welcome to this call I guess is your first time. So good to have you here.

Regarding the first part of your question on how we see the government. So we have a very positive view on some of the proposed changes that Google is making such as non price intervention by the government and freedom of airport.

I believe both.

Both teams are very good to attract investment to Argentina.

Miguel Matias Galuccio: And as we tie in the rest toward the end of Q1, you should see the second half of the first half of Q2 with robust production growth for Q2. Then from Q2 onwards, I think you should expect between 10 and 50% growth quarter on quarter, arriving around in Q4 to an average of 80,000 barrels per day. Regarding the activity, our current plan is to fully utilize all our contracted rigs. We have two walking rigs and one spader.

Argentina.

A very.

Unique opportunity in Denver, bringing more proceeds to Argentina through export.

And clearly this.

Two initiatives.

We will help a lot.

The country in terms of bringing more investment.

And of course exporting more.

This is an example of that so we work on this initiative we support this initiative I think the industry also.

Miguel Matias Galuccio: We are working on potentially speeding up the tying of one or two pads that are included in the 2024 plan, hiring and spot drilling and completion, rig and completion capacity. So I think this one is pretty much going to happen. In parallel, we are looking, and we are having discussions with several oil service company providers to see if we can bring more equipment in terms of drilling and completion capacity to the country. So, that discussion is ongoing. So, you can factor in the fact that we are going to have a contracting and spot drilling rig and some completion capacity for one or two pads. The other thing is, as we said, is under negotiation. We will see if we get the right conditions to really bring more equipment to the country. Great, super clear. And just to confirm, this potential addition of new equipment would be outside the existing drilling plan, right? That's correct, Bruno. Okay, super. Thanks again.

<unk>.

But listen the Congress discussion through the pressing of a chamber that we have invested in companies.

CE BH.

Basically he verbalized that support.

With its precedented Congress, so that is pretty good.

In regard.

Infrastructure.

On.

On the progress that we have on that I think we.

We are basically pretty much on track with the.

With the Chile connection.

And what we call bulk commodity north pit.

That is in place.

We are supporting the volumes that we saw we will be reporting at the time that we so that we will be supporting the one that is delay is the project of all level. So we are experiencing delays on the phase one.

To be finish is opposed to finished the first quarter of 2024 and now it's delayed to October.

In Q1, 'twenty 'twenty four.

We'll project supposed to deliver 120000 barrel per day now.

We believe it's going to be.

Bruno Montanari: Thank you. One moment for our next question, please. It comes from the line of Tasso Vasconcellos with UBS.

We were getting in Denver 120000, 150000 in October.

The by line was not an issue we have an issue they have an issue.

Tasso Vasconcellos: Please proceed. Hi Miguel, hi Ale, how's the team present? Thanks for taking my questions here. I have two questions on my side. The first one: it would be great to hear your thoughts on the Middle East government so far.

With being delayed.

With the provision of pump.

But.

These issues result, so all the equipment is in income so in October we supposed to have discounted 50000 coming in line.

Tasso Vasconcellos: What is going on better or worse than initially expected? And if it changes your company's expectations for the next one, two, three, four years to an extent? My second question, I'm looking forward to it. Of course, one of the main drivers for the case is production growth. We've already discussed it a bit on what's dependent on the company, the drilling campaigns, and so on. But of course, part of this increased production is dependent on investment in infrastructure. So it would also be great to hear your thoughts on how investment in increasing outflow capacity throughout Argentina is going on. If they are all on track and if you see any risks or potential delays in these investments. Those are my questions.

The delay does not impact impact our plan, we have enough capacity on the open access today.

Actually.

Using 44000 barrels per day.

We speak also we have <unk> and we have the tracking.

That give us flexibility so we don't see any issues in infrastructure for 2024.

Great clear thank you.

Thank you one moment for our next question. Please.

Okay.

Comes from the line of Marina Martins with Latin Securities. Please proceed.

Hi, good morning, and thank you.

Two questions.

<unk> on the call he is going on in Argentina politics and economy.

Miguel Matias Galuccio: Thank you. Hi Tasso, thank you very much for your question and welcome to this call. I guess it's your first time, so good to have you here.

Aloha and there is an announcement of globally for restart.

Finally, we already understood the Capex plan.

Yes.

Miguel Matias Galuccio: Regarding the first part of your question and how we see the government, we have a very positive view of some of the proposed changes that the government is making, such as no price intervention by the government and freedom of expression. I believe both are very good to attract investment to Argentina. Argentina has a very unique opportunity in terms of bringing more revenue to Argentina through exports, and clearly, these two initiatives will help a lot the country in terms of bringing in more investment and, of course, exporting more, and Vista is an example of that. So we welcome this initiative; we support this initiative. I think the industry also was present at the congress discussion through the president of a chamber where we have Austrian companies, the CEPH, and basically, he verbalized that support with his president of congress.

Thanks, Sean.

The other one on domestic prices.

Are you all remember Brian from Silicon Valley ready in December.

Continued loan from Shanghai, or what are you anticipating quite a lineup.

Hi, Martin. Thank you very much for your question I will start with the second part.

You Didnt basically the quarter, we were requested additional volume by local refineries.

The price that we reflected by the earning.

Flagged basically amidst a mix between domestic said part of which.

We've been providing.

You said the local price.

On the additional volumes that were paid.

Our export parity.

Of course, we see as a positive trend in domestic market is willing to validated for parity.

And we work on everything that is moving that direction.

Regarding two additional Capex I mean, our plan for 2024 hour. We've said these ambitions.

The growth that we are aiming for is.

It's probably one of the highest in the in the last year is 35%. So therefore, we said this probably little room.

Miguel Matias Galuccio: So that is pretty good, regarding the infrastructure and the progress that we have made on that. I think we are basically pretty much on track with the Chile connection and what we call Bacamuerta Norte that is in place, and we are exporting the volumes that we thought we would be exporting at the time that we thought we would be exporting them. The one that is delayed is the project of Old El Valle. So we are experiencing a delay on phase one, which should be finished. It was supposed to finish in the first quarter of 2024, and now it's been delayed to October.

To aim higher now if you ask me one scene that.

Going forward, we help.

Hi to continue those level of ROE even to aim higher will be.

Free access to.

To be able to a robot dividends.

For proceeds.

<unk> seen in them.

The controller the controls that we have today in Argentina clearly.

We resonate with investor with Us.

Miguel Matias Galuccio: In Q1 2024, the full project is supposed to deliver 120,000 barrels per day. Now, we believe it's going to be, we will get 120,000, and 150,000 in October. The pipeline was not an issue.

The additional growth.

Great. Thank you Youre welcome.

Thank you one moment for our next question. Please.

And it comes from the line of Danielle <unk> with BTG Pactual. Please proceed.

Thank you and good morning, guys.

And congrats for the results.

A couple of questions from my end.

Deferred Ronnie.

Miguel Matias Galuccio: We have an issue, or they have an issue, or experience a delay in the provision of the pump, but this issue is resolved. So all the equipment is in hand.

On the capital structure of the company.

Surely right now you are running.

A very under Levered balance sheets, which makes sense considering that most of your operations here in Argentina, but.

Miguel Matias Galuccio: So in October, we're supposed to have this $150,000 coming in line. The delay does not impact our plan. We have enough capacity in all the open access today. We are actually using 44,000 barrels per day, we speak. And also, we have Vaca Muerta Norte, and we have the tracking that gives us flexibility. So we don't see any issues with infrastructure for 2024. Great.

Bear in mind that the.

The macroeconomic environment may improve towards the second half of the year, you're having a better <unk> tons of pricing dynamics.

Would you consider this a structural low leverage to be sub optimal and can you share with us what we'll be doing for you guys and optimal capital structure. So that would be my first question.

Marina Mertens: All clear. Thank you. Thank you. One moment for our next question, please, comes from the line of Marina Mertens with Latin Securities. Please proceed. Hi, good morning, and thank you for the update. I have two questions.

And my second question is regarding growth I mean, I understand your 2024, our plan is already a very ambitious one.

But looking beyond 2024, what im seeing is that if I can monetize.

Miguel Matias Galuccio: First, considering all the changes going on in Argentina's politics and economy, the favorable outcomes at the Oaxaca-El Palo hub, and the recent announcement of increased food reserves, what would Vista need to accelerate the already ambitious CAPEX plan? And does the omnibus bill play any role in this decision? And the other one on domestic prices. We observed a rebound in the price of the local barrel in December, which continued into January. What are you anticipating for the remainder of the year? Hi Marina.

Very constant traded basin, we a few players.

With not a lot of opportunities, especially our inorganic opportunities.

And I wanted to know if you.

We're taking a look at the current prices that Exxon is running two to basically save there <unk> that will be my two questions.

Hi, Danielle so there was immediate.

First of all also welcome you to this to this call and thank you very much for your question.

As you mentioned I mean, we feel very comfortable at the current stage with the way that we run the company leverage leverage wise.

Miguel Matias Galuccio: Thank you very much for your question. I will start with the second part. During basically the quarter, we were requested additional volume by local refineries. The price that we reflect in the earnings reflects basically a mix between domestic sales, part of which we've been providing, as you said, at the local price, and the additional volumes that were paid at export parity. Of course, we see it as a positive trend that the domestic market is willing to validate export parity, and we welcome everything that is moving in that direction.

Thus.

Also you correctly mentioned the room for us.

Do you have a bit more leverage but for that that we have to have a reason.

As you also mentioned I mean, our our growth program.

Super ambition and we have the luxury to grow using our own cash flow generation and <unk> seen that has been.

Thanks, how are recognized by the market and is part of the overall you see the evolution of the stock price of Bicester village.

This is related to the way that we run the company.

That doesn't mean that you said if it changed this important changing context.

Miguel Matias Galuccio: Regarding additional CAPEX, I mean, our plan for 2024, I would say it's ambitious enough. The growth that we are aiming for is probably one of the highest in the last year; it's 35%. So, therefore, I would say there's probably little room to aim a bit higher.

That we can.

Basically aimed.

For a further grow.

Have a different level of ratio.

On going forward.

One other thing that call for for example changed the dynamics is that we.

Miguel Matias Galuccio: Now, if you ask me one thing that going forward will help to continue those levels of growth, even aim higher, it will be free access to be able to repatriate dividends or proceeds, anything in terms of freeing the control that we have today in Argentina. Clearly, we resonate with investors, with ourselves, and we create additional growth. Great. Thank you. You're welcome.

We have an acquisition.

And of course, we are always active on that front.

We are we are very.

Barry I mean, very active and then in terms of looking for new for new opportunities.

In the particular case that you mentioned, yes, I mean, the cutting that asset on.

Yes, we are looking into that.

Probably nothing more that I can comment at this stage just the fact that yes. We look every single opportunity that allows embark a monitor that is our turf.

Daniel Guardiola: Thank you. One moment for our next question, and it comes from the line of Daniel Guardiola with a BTG back.

Yes. Thank you can I ask Kristina an additional question.

Daniel Guardiola: Please proceed. Thank you and good morning guys, and congrats on the results. I have a couple of questions from my end. The first one is about the capital structure of the company. I mean, clearly, right now, you're running a very underleveraged balance sheet, which makes sense considering that most of your operations are in Argentina, but bear in mind that the macroeconomic environment may improve towards the second half of the year, and you have better visibility in terms of pricing dynamics. Would you consider this structure or this low leverage to be suboptimal, and can you share with us what would be, you know, for you guys, an optimal capital structure? So that would be my first question, and my second question is regarding growth.

Yes go ahead.

Regarding your cost structure I mean, you have done a terrific job streamlining your cost structure, bringing down your lifting cost from our now 13 or 12 and a half.

Five years ago to to very low levels right now are close to 4344.

Do you foresee additional room to streamline your overall cost structure, not only lifting but maybe also in our SG&A.

Please go ahead.

Yes.

Yes look at that.

We come from a long way of reducing particularly the lifting cost on a.

And I believe we have little room left.

As a result of the growing production.

Most of the lifting cost probably 70% of the lifting cost is structured is the cost. So as we grow production, we will be diluting part of that cost 70% of those so I think we have a little room going forward, but.

Miguel Matias Galuccio: I mean, I understand your 2024 plan is already a very ambitious one. But looking beyond 2024, what I'm seeing is that Vaca Muerta is a very concentrated basin with a few players, with not a lot of opportunities, especially inorganic opportunities. And I wanted to know if you're taking a look at the current process that Exxon is running to basically sell their Vaca Muerta assets.

I will say also that we are achieving the technical limit on things that we can do so.

Reduction that you've seen lifting cost is going to be modest in the <unk> number and no bigger reduction we experienced at the beginning.

Understood. Thank you very much.

Thank you.

And for our next question and as a reminder to ask a question simply press star one to get in the queue.

Next question is from Paula <unk> with <unk>. Please proceed.

Hi, Thank you for taking my question I would like now or was there a reason why to meat exports declining 23 again Paul.

Miguel Matias Galuccio: Hi Daniel. Sorry, I was on mute. First of all, I also welcome you to this call and thank you very much for your question. As you mentioned, we feel very comfortable at the current stage with the way that we run the company leverage-wise. Also, you correctly mentioned the room for us to have a bit more leverage. But for that, we have to have a reason.

Paul.

Wilson.

Our next meeting.

Im from local routinely.

Are you willing to do excellent.

Hi, Paula.

I think there was two reasons why that happened.

One is a matter of a dock at the end of the year in the terminal.

Basically.

We experienced almost every year and.

Miguel Matias Galuccio: As you also mentioned, our growth program is super ambitious, and we have the luxury of growing using our own cash flow generation. And I think that has been somehow recognized by the market and is part of what you see in the evolution of the stock price of Vista, which I believe is related to the way that we run the company. That doesn't mean, as you said, if there is a change, there is an important change in context, that we can basically aim for further growth and have a different leverage ratio going forward. One of the things that could, for example, change the dynamics is that we have an acquisition. And, and of course, we are always active on that front. We are very, very active in terms of looking for new opportunities. In the particular case that you mentioned, yes, I mean, they have interest assets.

And the second part is related to the fact that yes, we have more demand on the local market a video of more demand in the local market that has explained before we sold.

For clarity.

So this is pretty much the reason.

Thank you one moment for our next question.

And it comes from the line of Andrew <unk> with Citi. Please proceed.

Hi, good morning, everyone and again, only one or two.

Relations on the solid results and have two very quick questions, perhaps one more detail. It. So the first is what is implied realization price for the local for local sales.

The domestic sales. The second one is what is the assumption in terms of export taxes and if the export tax remain.

Daniel Guardiola: And yes, we are looking into that. Probably nothing more that I can comment on at this stage. Just the fact that, yes, we look at every single opportunity that arises in Bacamorta. That is our turf. Thank you. Can I ask Cristina an additional question? Yes, Daniel.

What is the assumption of volumes exported.

If the export tax remain up 8%.

The yen and the more detailed question is like to consider M&A and not accelerated on the existing portfolio. I mean, you have close to 1153 locations why to pursuit and money at this stage.

Daniel Guardiola: Regarding your cost structure, I mean, you have done a terrific job streamlining your cost structure, you know, bringing down, you know, you're lifting costs from, I don't know, 13 or 12 and a half five years ago to very low levels right now, you know, close to 4.3 or 4.4. Do you foresee additional room to streamline your overall cost structure, not only lifting but maybe also SG&A? Yeah.

Thank you.

And rich.

Hi, Andreas.

So the language is not so good but I think.

I managed to lease and so the Q1 local prices that we are seeing.

So 40 66, so it is quite good.

Tax today.

Is 8%.

Miguel Matias Galuccio: Yes, look, we have come a long way in reducing, particularly lifting costs, and I believe we have little room left. As a result of growing production, most of the lifting costs, probably 70% of the lifting cost structure is the cost. So as we grow production, we will be diluting part of that cost, 70% of it. So I think we have a little room going forward, but I will also say that we are approaching the technical limit on things that we can do. So the reduction that you will see in lifting costs is going to be more asymptotic to a number and not a big reduction as we experienced at the beginning with their suit. Thank you very much.

And I think there was a set of question.

Related to it.

Yes.

The question on the local groups sale prices.

What is incorporated in the guidance and the last question was why to go see it in money at this point and not accelerate on the existing portfolio.

You have over 1000, <unk> hundred drilling locations right.

Okay.

Yes so.

The line is not so good but again I mean in terms of pricing.

What we run in our plan was between $65 70.

Total this is realized price today, we'll look at as a local price.

The refinery is paying for US 66. This is Q1, okay now our guidance was.

Miguel Matias Galuccio: Thank you. One moment for our next question. And as a reminder, to ask a question, simply press star 11 to get in the queue.

Plan between $1 billion of EBITDA on one $1150 Davita.

Looking at the range price range of realized pricing 65 to 70 realized pricing local price Q1 66 today in term of M&A I don't think you will see anything that will impact our planning during 2024, Okay and as I mentioned before.

Paula Greca: Our next question is from Paula La Greca with TPCG. Hi, thank you for taking my question. I would like to know what the reason why crude oil exports declined in 4Q23 in terms of volume sold. Was it because of an increasing real demand from local refineries so you are limited to? Look, Paula. Look, I think there were two reasons why that happened.

We are basically active M&A.

M&A wise ask have we been in the past.

Evaluating opportunities that are today in place that mainly is one that there was.

Or the question I don't remember from before.

Thank you again.

Welcome.

Thank you one moment for our last question. Please.

Miguel Matias Galuccio: One is a matter of stock at the end of the year in the terminal, which basically we experience almost every year. And the second part is related to the fact that yes, we have more demand on the local market, a bit of more demand in the local market as I've explained before. We sold our export parity. So this is pretty much the result. Thank you.

And it comes from the line of Alejandro Demichelis with Jefferies. Please proceed.

Good morning, guys. Thank you for taking my call and congratulations on the call. Just one quick question you are talking about accelerating production if you can or M&A also.

Can you talk about how you see potentially.

Potentially to bringing partners into <unk>. Your acreage is that something that in the current situation of Argentina, improving conditions in Argentina that you could see feasible.

Andres Cardona: One moment for our next question. When it comes from the line of Andres Felipe Cardona with CT, please proceed. Hi, good morning, everyone.

Hi, Alejandro Thank you for your question I mean, yes, I mean, when we talk about M&A, we consider everything.

Andres Cardona: Miguel, Pablo, and Ale, congratulations on the solid results. I have two very quick questions and perhaps one more detailed. So the first is, what is the implied realization price for the local sale? or the domestic sale?

As you know I mean, we have today our activity is concentrated in what we call the development hub and these development copies outfit out of our hubs by the way.

By the way in our became Baroda develop makeup so.

Andres Cardona: The second one is, what is the assumption in terms of export taxes? And if the export tax remains, sorry, what is the assumption of volumes exported and if the export tax remains at 8% at the end? And the more detailed question is, why consider M&A and not accelerate the existing portfolio? I mean, you have close to 1,150 drilling locations. Why pursue M&A at this stage? Andres, Hi Andres! This is Miguel.

Everything that we have in the north.

AGL Amada is a place that in the future, yes, we will consider to bring a partner to us.

At capital.

We are very well I mean, we are recognizing we are very very well position us.

Low cost low carnival and reputable operator, so yes, when we look at M&A. This is something that we will consider in the future.

That's great. Thank you Youre welcome.

Thank you and with that we'll conclude the Q&A session I will turn the call back to me again, John Lucia for final comments.

Miguel Matias Galuccio: So the line was not so good, but I think I managed to listen. So the Q1 local prices that we are seeing so far are 66. So it's quite good. Export tax today is 8%. And I think there was a third question, related to the question on the local crude sale price. What is incorporated in the guidance? And the last question was, why consider M&A at this point and not accelerate the existing portfolio given you have over 1,100 green locations, right? Yeah, so sorry, Andres, the line is not so good.

Hello, guys. Thank you very much for participating for your question for the support and I'm looking forward to see you in next quarter.

Thank you ladies and gentlemen, you may now disconnect.

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Miguel Matias Galuccio: But again, I mean, in terms of pricing, what we ran in our plan was between 65 and 70. Total, this is the real-life price. Today, we are looking at the local price, what the refinery is paying for us, 66. This is Q1. Okay.

Yes.

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Yes.

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Miguel Matias Galuccio: Now, our guidance was a plan between $1 billion and $1,150 of that. Look at the range, price range of real life pricing, 65 to 70 real life prices. Local price, Q1, 66 today. In terms of M&A, I don't think you will see anything that will impact our planning for 2024. Okay. And as I mentioned before, we are basically active in M&A, as we have been in the past, evaluating opportunities that are currently in place. That mainly is one that was the question; I don't remember from who before.

Okay.

Sure.

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Yes.

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Miguel Matias Galuccio: Thank you, Miguel. You're welcome. Thank you. One moment for our last question. It comes from the line between Alejandro Demichelis and Jeffreys.

Okay.

Alejandro Demichelis: Please proceed. Good morning, guys. Thank you for taking my call and congratulations on the call. Just one quick question, Miguel. You're talking about accelerating production if you can or M&A and so on. Can you talk about how you see potentially bringing in partners into into the recreational. That's something that, in the current situation of Argentina, improving conditions in Argentina, that you could see as feasible. Hi, Alejandro.

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Okay.

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Miguel Matias Galuccio: Yeah, thank you for your question. I mean, yes, I mean, when we talk about M&A, we consider everything. As you know, I mean, we have today our activities concentrated in what we call the development hub. And the development hub is Aguada Federal, Bajada del Palo Este, and Bajada del Palo Este has now become part of the development hub. So everything that we have in the north, particularly Aguila Mora, is a place that, in the future, we could consider bringing in a partner to add capital. We are very well, I mean, we are recognized, and we are very, very well positioned as a low cost, low carbon, and reputable operator. So, yes, when we look at M&A, this is something that we could consider in the future. Thank you.

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Miguel Matias Galuccio: Thank you, and with that, we conclude the Q&A session. I will turn the call back to Miguel Galuccio for final comments. Well guys, thank you very much for participating, for your questions, for your support, and I look forward to seeing you next quarter. Thank you, ladies and gentlemen. You may now disconnect. In the name of the Father, and of the Son, and of the Holy Spirit. Amen. Copyright 2019 Mooji Media Ltd. All Rights Reserved. No part of this recording may be reproduced without Mooji Media Ltd.'s express consent.

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Operator: Thank you for watching! Good day, and thank you for standing by. Welcome to Vista's fourth quarter 2023 earnings webcast. At this time, all participants are in a listen only mode.

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Operator: 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 11 on your telephone. You will then hear an automated message advising that your hand is raised.

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Operator: To withdraw your question, press star 11 again. Please, we advise that today's conference is being recorded. I would now like to hand the conference over to Visa Strategic Planning and Investor Relations Officer Alejandro Chernicoff. Thanks. Good morning, everyone.

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Alejandro Chernicoff: We are happy to welcome you to Vista's fourth quarter and full year 2023 results conference. I am here with Miguel Galuccio, Vista's Chairman and CEO, Pablo Verapinto, Vista's CFO, and Juan Garoby, Vista's COO. Before we begin, I would like to draw your attention to our cautionary statement on slide 2. 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 the. Our financial figures are stated in US dollars and in accordance with international financial reporting standards, IFRS. However, during this call, we may discuss certain non-IFRS financial measures, such as Adjusted EVDA and Adjusted Net Cost.

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Alejandro Chernicoff: Reconciliation of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday. Please check our website for further information. Our company, Vista, is a Sociedad Anonima Bursátil de Capital Variable organized under the laws of Mexico, registered in the Bolsa Mexicana de Valores and the New York Stock Exchange. Our ticker is Vista on the Bolsa Mexicana de Valores and BIST on the New York Stock Exchange. I will now turn the call over to me. Thanks, Ale.

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Good day, and thank you for standing by and welcome to this fourth quarter 2023 earnings webcast. 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.

Miguel Matias Galuccio: Good morning, and welcome to this earnings call. We have had an exceptional year in 2023. We have continued to deliver a strong operational and financial result with double-digit growth, improved reserves, total production, and adjusted FDA. We have also secured oil missioning capacity in key projects, which underpin our updated production target for 2026. Our outstanding performance was reflected by our stock price performance, which doubled during the year. I will now present our Q4 2023 results and then move on to our full year results. During Q4, we will continue to focus on drilling and completion activities in Bajada del Palo Oeste.

One one on your telephone you will then hear in Autometer message advising your hand is raised to withdraw your question Press Star. One again. Please be advised that today's conference is being recorded I would now like to hand, the conference over to Lisa strategic planning and Investor Relations Officer Aloha.

Andre Chang of cough.

Thanks. Good morning, everyone. We are happy to welcome you to discuss fourth quarter and full year 2023 results conference call.

I am here with me are Richard with US Chairman and CEO, Pablo Vera Pinto, Vista's, CFO and <unk> <unk> before.

Miguel Matias Galuccio: This led to sequential growth in total production, surpassing our consolidated production level prior to the transfer of the conventional asset in Q1 2021. Total production was 56.4 thousand BOEs per day during the four quarters, 14 percent above sequentially and 60 percent above internally on a pro forma basis. Oil production was 48.5 thousand barrels of oil per day, 70% above the previous quarter and 80% above the same quarter of last year also on a performance basis. Total revenues during the quarter were $309 million, 2% above the previous quarter. We continue reducing our lifting costs, reaching $4.3 per VOE during the quarter.

Before 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 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 <unk>.

However, during this call we may discuss certain non <unk> financial measures such as adjusted EBITDA and adjusted net income.

Reconciliation of these measures to the closest <unk> measure can be found in the earnings release that we issued yesterday.

Please check our website for further information.

Our company Vista is associate annually, our satellite capital already outlet organized under the laws of Mexico, reducing there was kind of <unk> and the New York Stock Exchange article is that in the Bolsa Mexicana de Valores <unk> in the New York Stock Exchange I will now turn the call over to Miguel.

Thanks Ali and good morning, and welcome to this earnings call. We have an exceptional year in 2023, we have continued to deliver strong operational and financial results with double digit grow improve reserve total production and adjusted EBITDA.

Miguel Matias Galuccio: Capital expenditure was $212 million, mainly driven by 11-well drill and seven-well completion activities during the quarter. In Q4 2023, adjusted EVDA was $288 million. 43% above year-over-year, supported by stable revenues and other operating income growth amid lower lifting costs. Adjusted net income was $240 million, implying a quarterly adjusted EPS of $2.5 per share, mainly driven by higher adjusted EVDA and the positive impact of the reduction in the full year income tax. We recorded positive free cash flow of $107 million during the quarter, driven by strong EBITDA generation and normalization of working capital compared with the previous quarter. The net leverage ratio at the quarter end was a solid 0.46 times adjusted EVDA.

We also secured already missed any capacity in key projects.

Which underpin our updated production target for 2026.

Our outstanding performance were reflected by our stock price performance, which doubled during the year.

I will now present, our Q4 2023 results and then move on to our full year results.

During Q4, we continued to focus on drilling and completion activity in bajada del Palo Este.

This led to a sequential growth in total production.

Passing our consolidated production level prior to the transfer of our conventional assets in Q1 2023.

Total production was $56 4000, Boe's per day during the fourth quarter, 14% above sequentially and 60% above interim annually on a pro forma basis.

Miguel Matias Galuccio: I will now deep dive into our main operational and financial metrics of the quarter. Total production during Q4 2023 was 56.4 thousand BOE per day, driven by the timing of 11 wells in Bajada del Palo Este during the quarter. This led to a sequential increase of 14%. On an inter-annual basis, production increased 3%, reflecting that we have now surpassed the production level prior to the transfer of the conventional asset back in March 2026. On a pro forma basis, adjusting for the production of such assets, our total production growth was 16% year over year. During the quarter, we recorded an outstanding performance in oil production, which increased by 70% on a sequential basis and 80% on an annual performance basis. On the other hand, gas production decreased 2% quarter over quarter, impacting our Q4 total production target and the exit rate.

Production was $48 5000 barrels oil per day.

70% of all the previous quarter and 80% percentage above the same quarter of last year also on a pro forma basis.

Total revenues during the quarter were $309 million, 2% above the previous quarter.

We continue reducing our lifting costs leaching for $3 <unk> during the quarter.

Capital expenditure was $212 million mainly.

Mainly driven by 11 wells drilled on seven wells completed during the quarter.

In Q4, 2023, adjusted EBITDA was $288 million, 43% above year over year supported by the stable revenues. Another operated income grow Amit lower lifting costs.

Adjusted net income was $240 million.

Implying a quarterly adjusted EPS of $2 $5 per share, mainly driven by higher adjusted EBITDA and the positive impact of the reduction in the full year in contacts.

We recorded positive free cash flow $107 million during the quarter driven by a strong EBITDA generation and normalization of working capital compared with the previous quarter.

Miguel Matias Galuccio: This was mainly due to the fact that during the quarter, we tied in two parts in the northeast of Bajada del Palo Oeste, which has a lower gas-to-oil ratio than other parts of our economy. During the fourth quarter of 2023, we continue in full development mode, with 100% of the drilling and completion activity in Bajada del Palo. We tie in 11 wells during the quarter, impacting Bajada del Palo West 19, 20 and 21,. The timings boosted production in Q4 and led to an exit rate close to 60,000 VOEs per day. The tying of 23 new wells during the second semester of 2023 reflects full utilization of two drilling rigs and one spud rig, with a run rate of 46 new wells per year in line with our 2024 plan, which we will discuss later on. During Q4 2023, our revenues were stable year over year. Oil Production Growth of Set Lower Reliability Price. Total revenues were $309 million.

Net leverage ratio at the quarter end was a solid Cedar point 46 times adjusted EBITDA.

I will now deep dive into our main operational and financial metrics of the quarter.

Total production during Q4 2023 was $56 4000, Boe's per day, driven by the timing of 11 wells in Bahar led by the way David during the quarter.

This led to a sequential increase of 14%.

On an annual basis production increased 3%, reflecting that we have now surpassed the production levels prior to the transfer of the conventional asset back in March 2023.

On a pro forma basis adjusting by the production of such asset our total production growth was 16% year over year.

During the quarter, we recorded an outstanding performance in oil production, which increased by 70% on a sequential basis and 80% on an annualized pro forma basis.

On other hand gas production decreased 2% quarter over quarter impacting our Q4 total production target and the exit rate.

Miguel Matias Galuccio: 2% increase compared to the previous quarter and a 3% decline compared to Q4 2020. This was mainly driven by lower gas production, as discussed previously, and a 50% decline in gas prices. Sales to export markets accounted for 49% of the oil volume.

This was mainly due to the fact that during the quarter, we tie in to put in the northeast of <unk>, which has a lower gas to oil ratio another part of our acreage.

During the fourth quarter of 2023, we continue in full development mode.

With 100% of the drilling and completion activity in Bajada del Palo Este.

Miguel Matias Galuccio: 53 of Net Oil Revenue. We exported 2 million barrels of oil, composed of 1.6 barrels through the Atlantic and 0.4 million barrels by pipeline to Chile. The realized oil price for the quarter averaged $67.8 per barrel, down 2% year over year and flat compared to the previous quarter. The average Raleigh domestic price was $63.7 per barrel, so the realized export price was $74.2 per barrel. We are seeing good recovery in domestic prices, with crude in line with the $65 to $66 range for January and February, which is key to fund our growth plan. The lifting cost was $22.3 million for the quarter.

We are dying 11 wells during the quarter impact highlighted by the way 2019, 2020 one.

The timing is boosted production in Q4 and led to an exit rate close to 60000 Boe's per day.

The timing of 23, new wells during the second semester of 2023 reflects full utilization of two drilling rigs and one spudder rig.

With a run rate of 40 seeking new ways better year in line with our 2024 plan, which we will discuss later on.

During Q4, 2023 or revenues were stable year over year as oil production grow offset lower realized prices.

Total revenues were $309 million.

2% increase compared his preview.

Water and 3% decline compared to Q4 2022.

This was mainly driven by lower gas production.

Discussed previously and 50% decline in gas prices.

Miguel Matias Galuccio: 38% decrease compared to the same quarter of last year. Lifting cost per VOE was $4.3, a decrease of 40% compared to Q4 2022. These results continue to reflect the positive impact of our new operating model, fully focused on our shale oil assets, following the transfer of the conventional asset in the first quarter of the year. On a sequential basis, lifting costs per VOE were down 11% as the ramp-up of production volumes continued to dilute fixed costs. We expect this trend to continue during 2024. The devaluation of the peso by approximately 130% led to cost savings in the second half of December.

Sales to export market accounted for 49% of the oil volume and 53 of net oil revenues.

We reported 2 million barrel of oil composed by one seek barrel through the Atlantic and 0.4 million borrowers by pipeline to Chile.

Realized oil price for the quarter averaged $67 $8 per barrel.

Down 2% year over year.

And flat compared to the previous quarter.

Average realized domestic price was $63 $7 per barrel.

Why they realize export price was $72 per barrel.

We are seeing good recovery in the domestic prices with crude in line with the 65% to $66 range for January and February which is key to fund our growth plan.

Lifting cost was $22 3 million for the quarter.

88% decrease compared to the same quarter of last year lifting.

Lifting cost per <unk> was $4 $3, a decrease of 40% compared to Q4 2022.

These results continue to reflect the positive impact of our new operating model fully focus on our shale oil asset following the transfer of the conventional assets in the first quarter of the year.

On a sequential basis lifting cost per <unk> was down 11% as the ramp up of production volumes continued to dilute fixed costs.

We expect this trend to continue during 2024.

Miguel Matias Galuccio: These benefits have been extended and currently allow us to repatriate 20% of our exports at blue chip swap rates. We continue to see an expansion of the market. As of today, the VDA margin was 73% during the quarter, an inter-annual increase of 7% point. Note that we have added the other income from the repatriation of export proceeds at the blue chip to our revenues to calculate our adjusted EBDI margin. This provides a more accurate representation of our market. For more detail, please see the earnings notes released yesterday afternoon. The net back during the quarter was $55.6 per VOE.

The devaluation of the peso of approximately 130% lead to cost savings in the second half of December.

We are still closely monitoring the full impact of <unk> on our lifting cost of Q1 2024.

Adjusted EBITDA during Q4 2023 was $288 million.

An increase of 43% year over year.

Adjusted EBITDA performance was supported by production growth and lower lifting cost.

It also include $81 million in gains from repatriation of 27% of energy export proceed at the Blue Chip swap exchange rate.

This game has been accounted for in other income this.

These benefits have been extended.

Im currently allow us to repatriate, 20% of our exports at Blue chip swap rate.

Miguel Matias Galuccio: 39% increase year-over-year. During Q4 2023, we have another positive free cash flow quote. Cash from operating activities was $347 million, reflecting higher adjusted EBDA generation and normalization of working capital related to sales collection. Cash flow used in investing activities of $240 million dollars, in line with the capital expenditures of $212 million dollars and a $70 million increase in working capital related to. Free cash flow during Q4 2023 was therefore $107 million. Cash used in financing activities was $67 million, driven by the prepayment of local bonds adjusted by peso inflation, as well as bond CD3 in hard currency. The net leverage ratio stood at 0.46 times adjusted EVDA at quarter end.

We continue to see an expansion of margins.

Adjusted EBITDA margin was 73% during the quarter and in turn will increase of 7% points.

Note that we have added.

Other income from the repatriation of April proceed at the Blue chip to our revenue to calculate our adjusted EBITDA margin.

This provides a more accurate representation of our margins.

For more details please see the earnings node released yesterday afternoon.

Net back during the quarter was $55 $6 per Boe.

39% increase year over year.

During Q4 2023, we have another positive free cash flow quarter cash.

Cash from operating activities was $347 million, reflecting higher adjusted EBITDA generation and normalization of working capital related to sell collections.

Cash flow used in investing activities was $240 million.

In line with capital expenditures of $212 million.

A $70 million increase in working capital related to Capex.

Miguel Matias Galuccio: Cash at the end of the period was $213 million. We now move on to the full year results. During 2023, we made solid progress across our four strategic objectives. We increased P1 reserves and oil inventory, reflecting the growth potential and the quality of our asset base. P1 Reserves increased 27% year-over-year to 319 million VOE.

Yeah.

Free cash flow during Q4, 2023 was therefore $107 million.

Cash used in financing activities was $67 million.

Even by the prepayment of local bonds.

Good bye peso inflation as well as bone CD three in hard currency.

Net leverage ratio stood at <unk> 46 times adjusted EBITDA at quarter end.

Cash at the end of the period was $213 million.

We now move on to the full year result during 2023, we made solid progress across our four strategic <unk>.

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We increased the one recess and well inventory, reflecting the growth potential and the quality of our asset base.

B warrant reserve increased 27% year over year to 319 million Boe's.

While inventory increased 28% year over year to 1150 wells of which only 19 eyewear on production at the end of 2023.

We also delivered solid operational performance, maintaining our status as a leading operator in the comparator.

Miguel Matias Galuccio: Our cost-saving delivery was better than planned, reflecting a 7% improvement vis-a-vis our $5.5 per DOE guidance. Additionally, we made strong progress in sustainability. We reduce emission intensity by 13% to 15.6 kilograms of CO2 equivalent, which places our company in the best quartile compared to the comparable stringent player worldwide. I am also very proud of our safety track record; the total recordable incident rate, including employee and contract, was below one every year for the last four years, with a 0.2 in 2026.

Total production was 51 1000 Boe's per day a five.

5% inter annual increase or 80% on a pro forma basis.

Adjusted by the transfer of the conventional assets in March 2023.

The lifting cost was reduced 33% year over year to $5 $1 by the UAE.

Our cost saving delivery.

It was better than planned, reflecting a 7% improvement be savvy, our $5 $5 per Boe guidance.

Additionally, we made strong progress in sustainability, we reduce emission intensity by 13% to 15, six kilogram of Cotwo Kubernetes, which place our company in the best quartile compared to the comparable upstream player worldwide.

Miguel Matias Galuccio: Finally, during 2023, we continue to deliver robust total shareholder return. Exhausted EVDA was $871 million, up 14% compared to 2022. Our stock price increased 115% from December 31, 2022 up to today. As I mentioned previously, P1 reserves increased 27% compared to 2022 for a total of 318.5 million BOEs estimated at year-end 2026. This implies a total resource replacement ratio of 458% and 485% for oil. The Roof Reserve life increased by 20% to 17 years. Net additions were 85.5 million BOEs, driven by the activity in Bajada del Palo Oeste, where we are. 40 New World Locations, Embajada del Palo Oeste, where we are in 26 locations. This resulted in a total of 297 book well locations in our P1 reserve.

I am also very proud of our safety track record.

Total recordable incident rate, including employee and contractors was below one every year for the last 40 years with.

With the Cedar point to for 2023.

Finally during 2023, we continue to deliver robust total shareholder returns.

Adjusted EBITDA was $871 million.

Up 14% compared to 2022.

Our stock price increased 115% from December 31, 2022 up to date.

As I mentioned previously <unk> reserves increased 27% compared to 2022 for a total of $318 5 million Boe's.

He made it at year end 2023.

This implies a total reserve replacement ratio of 458%.

485% for oil.

Proved reserve life increased by 20% to 17 years.

Net additions were $85 5 million boe's driven by activity in Bajada, Palo Este, where we added 40, new well locations.

Miguel Matias Galuccio: The certified present value at a 10% discount rate attributable to the company's interest in P1 Reserve is $3.3 billion, using a price assumption of $66.5 per barrel for oil, according to the SEC guidelines. During 2023, we also achieved a significant operating milestone. We tie in 31 new wells, two above our original guidance. This drilling and completion activity boosted our total production, leading to an 18% increase year-over-year on a pro forma basis. Most of our drilling and completion activity in the first semester targeted the de-risking of our blocks.

<unk> highlighted by the way, where we added 26 locations.

This resulted in a total of 297 book well locations in our <unk> reserves.

The certified present value at 10% discount rate attributable to the company interest in <unk> itself is $3 3 billion.

Using a price assumption of $66 $5 per barrel for oil according to the ACC guidelines.

During 2023, we also achieved significant operating milestones with diene 31, new ways to above our original guidance.

These drilling and completion activity boosted our total production leading to an 18% increase year over year on a pro forma basis.

Miguel Matias Galuccio: Solid Productivity Resolve in Aguila Mora, Embajado del Palo Este, allowed us to expand our inventory by 250 wells. During the year, we successfully secured the take-away capacity to deliver on our 2026 plan. We obtain capacity in two Kipro, 12.5 thousand barrels of oil per day in the Vaca Muerta Norte pipeline and 31.5 thousand barrels of oil per day in the Old El Valle expansion. The treatment plan in our development hub was expanded to 70,000 gallons of oil per day.

Most of our drilling and completion activity in the first semester targeted the derisking of our blocks solid productivity resold in annular Mora Amber highlighted by the FDA allowed us to expand our inventory by 250 words.

During the year when we successfully secure the take away capacity to deliver on our 2020 plan.

We obtain capacity in two key projects.

$12 5000 barrels of oil per day in the back of mortality by line and 31 face house embarrassed of oil per day in the older by expansion.

The treatment planning our development hub was expanded to 70000 barrels of oil per day.

We are currently working on another project.

Total treatment capacity to 85000 barrels of oil per day before year end.

In terms of export volumes in 2023, we increased airport to 52% of total oil stays.

Up from 44% in 2022.

This was boosted by higher production and the start up of exports to Chile.

Miguel Matias Galuccio: [inaudible] 4.7 thousand barrels of oil per day in Q4 2025. During 2023, we also made solid progress in our emissions reduction and nature-based solutions projects. Our decarbonization projects included the installation of a new vapor recovery unit, optimization of the glycol dehydration process, and the addition of renewables to our energy metric, among other projects. Implementation of such projects led to the reduction of COP 1 and 2, increasing greenhouse gas emissions by 30% year over year. As discussed earlier, emission intensity was also reduced by 30% over the same period to 15.6 kilos of CO2 equivalent per VOH.

Which reach.

$4 7000 barrels of oil per day in Q4 2023.

During 2023, we also made solid progress in our emissions reduction and nature based solution projects.

Our de Carbonization project included the installation of our new vapor recovery unit optimization of glycol.

Hesitation process and the addition of renewable two hour NLC metric among other projects.

The implementation of such projects led to the reduction of the KOB, one and two.

In Greece greenhouse gas emissions by 30% year over year.

As previously discussed emission intensity was also reduced by 30% over the same period to $15 six kilos of <unk>.

Miguel Matias Galuccio: Regarding nature-based solutions, our subsidiary, IKEA, achieved significant milestones during the year. We finalized planting our flagship project in Rolon Cue, with 2.5 million trees, and initiated Soil Preparation Activities in a Neighboring Plot of Land in Villa Cenayda. We have initiated work on our forest conservation project in Chihuahua and also made good progress on regenerative agriculture and livestock projects. In parallel, we started the process to certify the carbon credits of our projects with VERRA.

Regarding nature based solutions, our subsidiary <unk>.

<unk> achieved significant milestones during the year.

We finalized planting our flag ship brushing enrollment way.

With $2 5 million trees.

And initiated so preparation activities in enabling plot of land in <unk>.

And either.

We have initiated work in our forest conservation projecting shallower.

<unk> also made good progress.

Resonate agriculture and livestock projects.

In parallel we started the process to certify the cutoff grade.

Our project with bearer.

Miguel Matias Galuccio: We have consistently derived strong financial metrics over the last three years, resulting in superior total shareholder returns; adjusted EVDA increased by 14% year over year to $871 million, in line with the midpoint of our original guidance. ROAC was 39% consistently delivering top-tier return of capital in the energy sector. Adjusted EPS per share was $5.2, an increase of 24% compared to 2022, driven by an adjusted net income of $191 million We maintained healthy financial ratios, with gross leverage at 0.71 times adjusted EVDA, and net leverage at 0.46 times.

We have consistently delivered strong financial metrics over the last three years.

<unk> superior total shareholder returns.

Adjusted EBITDA increased by 14% year over year to $871 million in line with the midpoint of our original guidance.

Auto AC was 39% consistently delivering top tier return on capital in the energy sector.

Adjusted EPS per share was $5 $2, an increase of 24% compared to 2022.

Driven by an adjusted net income of $191 million.

We maintained healthy financial ratios with gross leverage at Cedar 0.71 times, adjusted EBITDA and net leverage at Cedar point 46 times.

Miguel Matias Galuccio: This outstanding performance across all financial metrics is reflected in the evolution of our share price, which more than doubled since year-end 2022 to this date, outperforming our peers in LATAM after in space. I will now share our 2024 guidelines. As discussed during our investor day last September, we plan to increase the number of tie-ins to 46 by utilizing our existing drilling and completion capacity in full. The entire drilling campaign will be focused on our development, with most of the wealth in our flagship development in Bajada del Palo Oeste. Based on this activity, CAPEC is forecast to increase to $900 billion in 2024. According to our model, this activity will boost our production to between 68 and 70,000 BOEs per day during 2024. We expect lifting costs to continue to decrease on the back of a focus on efficiency and the dilution of fixed costs by additional production volumes.

I will now share our 2020 for guidance.

As discussed during our Investor Day last September we plan to increase the number of times to 40 seek by utilizing our existing drilling and completion capacity.

The entire drilling campaign will be focused on our development hub with most with in our flagship development in Bajada del Palo Este.

Based on this activity Capex is forecast to increase two 9 billion.

In 2024.

According to our model this activity will boost our production to between 68 and 70000 Boe's per day during 2024.

We expect lifting costs to continue to decrease on the back on focus on efficiency and the dilution of fixed cost by additional production volumes.

Miguel Matias Galuccio: We are forecasting $4.5 per BOE in 2024. Adjusted EBITDA is forecast to increase to between $1 billion and $1.15 billion using a realized oil price of $65 to $70 per barrel. Finally, we expect to continue reducing our greenhouse gas emissions intensity during 2024 in line with our 2026 reduction target. I will now summarize the key takeaways of today's presentation. During 2023, we will deliver robust operational and financial performance, with double-digit growth, improved reserves, total production, and adjusted EVDA. The transfer of our conventional assets has converted Vista into a fully focused back-and-forth company with lower costs and higher margins.

We are forecasting $4 $5 per Boe in 2024.

Adjusted EBITDA is forecast to increase to between 1 billion and 115 billion using our realized oil price of 65 to $70 per barrel.

Finally, we expect to continue reducing our greenhouse gas emissions intensity during 2024 in line with our 2020 secret action targets.

I will now summarize the key takeaways of today's presentation.

During 2023, we delivered robust operational and financial performance.

With double digit growth improved reserve total production and adjusted EBITDA.

The transfer of our conventional asset.

Comparative data into a fully focused back on more tech company with lower cost.

And higher margins.

Our robust performance during the year continues to prove our ability to deliver on our superior total shareholder return proposition.

<unk> by our peer leading share price performance.

We issue an updated strategic plan.

Courted by our large high quality inventory, our operating credentials, our existing drilling and completion capacity.

Miguel Matias Galuccio: High Quality Inventory, Our Operating Credentials, Our Existing Drilling and Completion Capacity, and having secure ministering capacity to deliver on our production target. In this respect, we are well on track to double our production to 100,000 BOEs per day by 2026. Our 2024 guidance is the first step in this direction, with production growth of 35% and adjusted EVDA growth of 23%. We plan to deliver on our 2024 and 2026 targets using our own cash generation. Before we move to Q&A,

Having secured metering capacity to deliver on our production targets.

In this respect we are well on track to double our production to 100000 Boe's per day by 2026.

Our 2024, our guidance is the first step in this direction with production growth of 35% and adjusted EBITDA growth of 23%.

We plan to de lever on our 2024 and 2020, we seek targets using our own cash generation.

Before we move to Q&A.

Miguel Matias Galuccio: I would like to thank our investors for their continued support and the entire team at Vista for their commitment and hard work during 2026. I look forward to an equally successful 2024 and seeing you on our next earnings call. Operator, please open the line for Q&A. Thank you. And as a reminder, to ask a question, simply press star 11 on your telephone and wait for your name to be announced. To withdraw the question, press star 11 again.

I would like to thank our investors for their continued support.

The entire team at <unk> for their commitment and hard work during 2023.

I look forward to an equally successful 2024 and seeing you in our next earnings call. Operator, Please open the line for Q&A.

And as a reminder to ask a question simply press Star one one on your telephone and wait for your name to be announced to withdraw your question Press Star one again.

Operator: One moment for our first question. All right, the first question is from Bruno Montanari with Morgan Stanley. Please proceed.

One moment for our first question please.

Alright.

First question is from Bruno Montanari with Morgan Stanley. Please proceed.

Bruno Montanari: Miguel, many great achievements this year with the reserves, the cost evolution, and the financial results, which speak for themselves. I have two questions, actually both about production, but the first question is about production: there was a bit of a shortfall in production versus the original targets you had. I understand the gas issue you mentioned, but it seemed that for oil, there was also a little bit less production, so if you could add a little bit more color on why that happened and then what the company is doing to overcome that, that would be great. And then you could discuss what more you can do in 2024. You mentioned that you're fully utilizing the existing equipment, so is there any option to bring more equipment to Argentina, what is the likelihood of that happening, so how should we think about these 68,000 to 70,000 barrels per day if you're more confident about reaching 70, if there is upside to that number, so any color there would also be super helpful. Thank you very much. Hi Bruno,

Good morning, everyone and thanks for taking my question.

How many great achievements during the year with the reserves the cost evolution in the financial results, which speak for themselves.

So I have two questions one.

Actually both are about production, but the first question there was a bit of a.

The shortfall in production very soon.

Regional targets you have understood. The gas issue you mentioned, but it seems that for audio there was also a little bit less production. So if you could.

Add a little bit more color on why that happened.

The company is looking to overcome that that would be great.

If you could discuss.

Can you go in 2024, you mentioned that you are fully utilizing the existing equipment. So is there any optionality.

So, bringing more equivalent Argentina, what is the likelihood of that happening.

So how should we think about these 60.

68% to 70000 barrels per day, if you are more confident on the.

Reaching 70, if there is upside to that number so any color. There would also be super helpful. Thank you very much.

Hi, Bruno.

Thank you very much for your comments on Andrew.

Miguel Matias Galuccio: Thank you very much for your comments and for your regards to production. Yes, first of all, I would say, I mean, we closed Q3 2023 at almost 50,000 barrels per day. At that time, we got on a sequential growth of 20% for Q4. We achieved really not a 20%.

And revised real production.

Yes first of all I would have said I mean, we closed let me give you a bit of a applanation. We closed Q3 2023 at almost 50000 barrels per day at.

At that time, we go we guide on a sequential growth of 20% for Q4.

We achieved really another 20%, we achieved an oil production increase of 17% quarter on quarter, but natural gas production decreased 2%.

Miguel Matias Galuccio: We achieved an oil production increase of 70%, quarter on quarter, but natural gas production decreased 2%. In all, we've made a very good effort to offset the lower production of the Q pilot that we mentioned before. The Q was a pilot, and we were testing to frack one zone, eight wells at the same time. And clearly, the intensity of the fracture, even though we were evaluating it, didn't give the result that we were expecting. At the DOE level, the impact of a 2% quarterly occurring decrease in gas production explains half of the quarterly miss. Gas production decreased by two factors.

We've made very good effort to offset the lower production of the queue pilot that we mentioned before.

The Q was a pilot and we were testing two frac one soon.

<unk> at the same time Unclearly.

The intensity of refractory even though we are evaluating you didn't give the result that we were expecting before.

At the <unk> level, the impact of 2% quarter over quarter in decreasing our production explained half of the quarter and meet our gas production decrease.

Miguel Matias Galuccio: One, basically, the wells that we connected have a lower gas-oil ratio in the northeast of Bajada del Palo Este, and we also have higher downtime for the legacy wells or the legacy conventional conventional wells that we have in production. Regarding our 2024 guidance, we rated a target of 20,000 barrels per day. You should expect that Q1 2024 is at similar levels compared with Q4 2023. We plan to tie in 11 wells this quarter. We already have three of them tied in.

Two factor one.

Basically there was that we connected gas lower gas oil ratio in the notice of bajada Palo Este.

And also we had higher downtime of the legacy wells.

Or the legacy conventional conventional wells that we have in production.

Regarding our 2012 before guidance, we reiterate our target of 2000 20000 barrel oil per day.

We expect that Q1 2024 is at similar levels compared with Q4 2023.

We plan to tie in this quarter 11 wells, we have three of them already time.

Miguel Matias Galuccio: And as we tie in the rest toward the end of Q1, you should see the second half of the first half of Q2 with robust production growth for Q2. From Q2 onwards, I think you should expect between 10% and 50% growth quarter on quarter, arriving around in Q4 at an average of 80,000 barrels per day. Regarding the activity, our current plan is to fully utilize all our contracted rigs. We have two walking rigs and one spader. We are working on potentially speeding up the tying of one or two pads that are included in the 2024 plan, hiring and spot drilling and completion, rig, and completion capacity. So I think this one is.

And as we tie in the race.

Towards the end of Q1.

You should see the second half of <unk>.

The first half of Q2 with a robust production growth.

For Q2, then from Q2 onwards, ICU, you should expect between 10 and 50% growth quarter on quarter, arriving around in Q4 to an average of 80000 barrel oil per day.

Regarding the activity. Our current plan is to fully utilize all of our contract day rate, we have two working rigs and Guan as bother.

And we are working on potentially speeding up the timing of one or two but.

That are included in 2024 planned hiring in import and export drilling and completion.

Rick.

And completion capacity.

So I think this one is <unk>.

Miguel Matias Galuccio: Pretty much everything is going to happen. In parallel, we are looking, and we are having discussions with several oil service company providers to see if we can bring more equipment in terms of drilling and completion capacity to the country. So that discussion is ongoing. So you can factor in the fact that we are going to have a contract for a spot drilling rig and some completion capacity for one or two parts. The other thing is, as we said, is under negotiation; we will see if we get the right conditions to really bring more equipment to the country. Great, super clear. And just to confirm, this potential addition of new equipment would be an upside to the existing drilling plan, right? That's correct, Bruno.

<unk> much is going to happen in.

In parallel we.

We are looking.

Were having discussion with several us oil service companies provider to see if we can bring more equipment in term of drilling and completion capacity to the country. So that discussion is ongoing. So you can factor in the fact that we are going to have on us.

A contracting and export drilling rig and sand completion capacity for one or two but the other thing is.

We have said is under negotiation, we will see if we get that right.

The right conditions to really bring more equipment to the country.

So firstly just to confirm these potential additional new equipment would be upside to the existing drilling plan right.

Q4 2023 Vista Energy SAB de CV Earnings Call

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