Q2 2024 Vista Energy SAB de CV Earnings Call
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Operator: Ladies and gentlemen, please stand by. Today's call will begin momentarily. Thank you for your patience.
Operator: Ladies and gentlemen, please stand by. Today's call will begin momentarily. Thank you for your patience. Good day, and thank you for standing by.
Speaker Change: Ladies and gentlemen, please stand by. Today's call will begin momentarily. Thank you for your patience.
Operator: Good day, and thank you for standing by. Welcome to this the second quarter, 2024 earnings webcast. At the time of participants are really in the only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again.
Operator: Welcome to Vista's second quarter 2024 earnings webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would like to hand the conference over to your speaker today, Alejandro Cheraco. Please go ahead.
Speaker Change: Good day and thank you for standing by. Welcome to Vista's second quarter 2024 earnings webcast at the time all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised.
Operator: Please be advised that today's conference is being recorded.
Speaker Change: To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would like to hand the conference over to your speaker today, Alejandro Cheracov. Please go ahead.
Operator: I want to hand a conference over to you or speaker today. How do you know? Please go ahead.
Operator: Thanks.
Alejandro Cheracov: Thanks. Good morning, everyone. We are happy to welcome you to Vista's second quarter of 2024 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 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 this remark.
Miguel Galuccio: Good morning, everyone. We are happy to welcome you to Vista's second quarter of 2024 results conference calls. I am here with Miguel Galuccio, Vista Chairman and CEO, Pablo Vela Pinto, Vista CFO, and Juan Garobi, Vista COO.
Alejandro Cheracov: Thanks. Good morning, everyone. We are happy to welcome you to Vista's second quarter of 2024 results conference call.
Speaker Change: I am here with Miguel Galuccio, Vista's Chairman and CEO , Pablo Velapinto, Vista's CFO , and Juan Garoby, Vista's COO.
Miguel Galuccio: Before we begin, I would like to draw your attention to our cautionary statement on slide two. Please be advised that a remark 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 this.
Speaker Change: Before we begin, I would like to draw your attention to our cautionary statement on slide two.
Speaker Change: 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.
Miguel Galuccio: to be marked. Our financial figures are stated in US dollars and in accord with the International Financial Reporting Standards, IFRS. However, during this conference call, we may discuss certain non-IFRS financial measures such as adjusted FDA and adjusted net income. Reconciliation of these measures to the closest IFRS measures can be found in the end. Is released that we issue the aesthetics.
Speaker Change: Our financial figures are stated in U.S. dollars and in accordance with the International Financial Reporting Standards, IFRS. However, during this conference call, we may discuss certain non-IFRS financial measures such as Adjusted EVDA and Adjusted Net Income.
Speaker Change: Reconciliations of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday.
Miguel Galuccio: Please check our website for further information. Our company is a Sociedad Anónima Bursátil de Capital Variable, organized under the laws of Mexico, registered in the Wilson-Mestitana de Valores and the New York Stock Exchange. Our stickers are Vista in the Wilson-Mestitana de Valores and BISD in the New York Stock Exchange.
Speaker Change: Please check our website for further information.
Speaker Change: Our company is a Sociedad Anónima Bursátil de Capital Variable organized under the laws of Mexico, registered in the Bolsa Mexicana de Valores and the New York Stock Exchange. Our tickers are VISTA in the Bolsa Mexicana de Valores and VIST in the New York Stock Exchange.
Miguel Galuccio: I will now turn the call over to Miguel. Thanks, Allé.
Alejandro Cheracov: Our financial figures are stated in U.S. dollars and in accordance with the International Financial Reporting Standards, IFRS. However, during this conference call, we may discuss certain non-IFRS financial measures, such as adjusted EVDA and adjusted net. Reconciliations 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 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 tickers are Vista in the Bolsa Mexicana de Valores and VIST in New York. I will now turn the call over to Miguel.
Miguel Matias Galuccio: Thanks, Ale. Good morning, everyone, and welcome to this earnings call. The second quarter of 2024 was marked by strong inter-annual and sequential growth across key operational financial metrics, driven by new oil activity in our development hub in Bacamorte. Total production was 65.3 thousand VOEs per day, an increase of 40% year-over-year and 19% quarter-over-quarter. Oil production was 57.2 thousand barrels per day, 46% above the same quarter of last year. Total revenues during the quarter were $397 million. 66% increase compared to the same quarter of last year. However, lifting cost was $4.5 per VOE, 6% down year over year.
Miguel Galuccio: Good morning, everyone, and welcome to this earnings call. The second quarter of 2024 was marked by a strong inter-annual and sequential growth across key operational financial metrics, driven by new well-activity in our development hub in Bacamorta. Total production was 65.3,000 B.O. East per day, an increase of 40% year over year, and 19% quarter over quarter. Our production was 57.2,000 bars per day, 46% above the same quarter of last year. Total revenues during the quarter were $397 million, a 66% increase compared to the same quarter of last year. Lifting costs was $4.5 B.O.E., 6% down year over year.
Speaker Change: I will now turn the call over to Miguel.
Miguel Matias Galuccio: Thanks Ale, good morning everyone and welcome to this earnings call. The second quarter of 2024 was marked by strong inter-annual and sequential growth across key operational financial metrics.
Miguel Matias Galuccio: Capital expenditure was $346 million, mainly driven by 14 wells drilled and 14 wells completed during the quarter, reflecting the acceleration of capital deployment in new well activity and $63 million in development facilities. Adjusted EVDA was $288 million. 90% above year-over-year, driven by robust revenue growth and lower listing costs per VOE. Adjusted net income was $72 million, implying a quarterly adjusted EPS of $0.7 per share. The pre-cash flow was $8 million during the quarter.
Miguel Matias Galuccio: driven by new well activity in our development hub in Bacamuerta.
Miguel Matias Galuccio: Total production was 65.3 thousand VOEs per day, an increase of 40% year-over-year and 19% quarter-over-quarter.
Miguel Matias Galuccio: Oil production was 57.2 thousand barrels per day, 46% above the same quarter of last year.
Miguel Matias Galuccio: Total revenues during the quarter were $397 million.
Miguel Matias Galuccio: a 66% increase compared to the same quarter of last year.
Miguel Matias Galuccio: Lifting cost was $4.50 per VOE, 6% down year over year.
Miguel Galuccio: Capital expenditure was $346 million, mainly driven by 14 wells drilled and 14 wells complete during the quarter, reflecting the acceleration of capital deployment in new wells activity and $63 million in development facilities. Ashrata de VDA was $288 million, 90% above year over year, driven by robust revenue growth and lower listing costs per B.O.E. Ashrata de VDA was $22 million, applying a quarterly ashrata de VDA of $0.7 per share. Big cash flow was $8 million during the quarter, as higher cash from investing, driven by increase in capital activity, was financed with robust cash from operations, driven by the boost in ashrata de VDA.
Miguel Matias Galuccio: Capital expenditure was $346 million, mainly driven by 14 wells drilled and 14 wells complete during the quarter, reflecting the acceleration of capital deployment in new wells activity and $63 million in development facilities.
Miguel Matias Galuccio: Adjusted EVDA was $288 million, 90% above year-over-year, driven by robust revenue growth and lower listing costs per VOE.
Miguel Matias Galuccio: Adjusted net income was 72 million dollars, implying a quarterly adjusted EPS of 0.7 dollars per share.
Miguel Matias Galuccio: Higher cash-flow investing driven by an increase in CAPEC activity was financed with robust cash-flow operations driven by the boost in adjusted EVDA. The net leverage ratio at quarter end was a solid 0.6 times adjusted EVDA. I will now deep dive into our main operational financial metrics of the quarter. Total production during the quarter was 65.3 thousand VOEs per day, our highest quarter ever.
Miguel Matias Galuccio: Pre-cash flow was $8 million during the quarter.
Miguel Matias Galuccio: as higher cash flow investing driven by increase in CAPEC activity was financed with robust cash flow operations driven by the boost in adjusted EVDA.
Miguel Galuccio: Net level of ratio at quarter end was a solid 0.5 times Ashrata de VDA.
Miguel Matias Galuccio: Net leverage ratio at quarter end was a solid 0.6 times adjusted EVDA.
Miguel Galuccio: I will now dip die into our main operational financial metrics of the quarter. Total production during the quarter was $65.3,000 B.O.E. per day. Our highest quarter ever, production was 40% about on our internal basis, reflecting the ramp up of our new well activity, Ashrata in 48 new wells during the last 12 months. On the sequential basis, production growth was 19%, driven by the connection of 4 parts in Bajá del Palo Este and 1 part in Bajá del Palo Este between the second half of Q1 and the first half of. Q2. Our production was 57.2 thousand barrels of oil per day, an interannual grow of 46% and a sequential grow of 21%.
Miguel Matias Galuccio: I will now deep dive into our main operational financial metrics of the quarter.
Miguel Matias Galuccio: Total production during the quarter was 65.3 thousand VOEs per day.
Miguel Matias Galuccio: Production was 40% above on an inter-annual basis, reflecting the ramp-up of our new oil activity, as we tied in 48 new wells during the last 12 months. On a sequential basis, production growth was 19%, driven by the connection of four parts in Bajada del Palo Este and one part in Bajada del Palo Norte between the second half of Q1 and the first half of Q2. Oil production was 57.2,000 barrels of oil per day, an interannual growth of 46% and a sequential growth of 21%, reflecting that the share of oil in our new wells is above that of our base production.
Miguel Matias Galuccio: Our highest quarter ever. Production was 40% above on our inter-annual basis, reflecting the ramp-up of our new oil activity.
Miguel Matias Galuccio: as we tie in 48 new wells during the last 12 months.
Miguel Matias Galuccio: On a sequential basis, production growth was 19%, driven by the connection of four paths in Bajada del Palo Este and one path in Bajada del Palo Este between the second half of Q1 and the first half of Q2.
Miguel Matias Galuccio: Oil production was 57.2 thousand barrels of oil per day.
Miguel Matias Galuccio: an interannual growth of 46% and a sequential growth of 21%, reflecting that the share of oil in our new wells is above that of our base production.
Miguel Galuccio: Reflecting that the share of oil in our new wells is above that our base production. We expect this trend to continue going forward as we continue to drill in our oil-prone development hub, especially behind the Palo Esti. Natural gas production increased 70% in a year over a year, and 5% quarter over a quarter. Base on our new well-activity plan, our model shows that production is forecast to keep growing on a double-digit basis over the next two quarters, leaving us on track to the liver 85,000 B.O. East per day in Q4. We also rated eight hour guidance of 68 to 70,000 B.O.
Miguel Matias Galuccio: We expect this trend to continue going forward as we continue to drill in our oil prompt development hub, especially Bajada del Palo. Natural gas production increased 70% year over year and 5% quarter over quarter. Based on our new well activity plan, our model shows that production is forecast to keep growing on a double-digit basis over the next two quarters, leaving us on track to deliver 85,000 VOEs per day in Q4. We also rated our guidance of 68,000 to 70,000 BOEs per day on average for the full year, meaning we will likely be on the upper end of this range.
Miguel Matias Galuccio: We expect this trend to continue going forward as we continue to drill in our oil prompt development hub, especially Bajada del Palo Este.
Miguel Matias Galuccio: Natural gas production increased 70% year-over-year and 5% quarter-over-quarter.
Miguel Matias Galuccio: Based on our new well activity plan, our model shows that production is forecast to keep growing on a double-digit basis over the next two quarters, leaving us on track to deliver 85,000 BOEs per day in Q4.
Miguel Matias Galuccio: We also reiterate our guidance of 68,000 to 70,000 BOEs per day on average for the full year.
Miguel Galuccio: East per day on average for the full year, noting that we will likely be on the upper end of this range.
Miguel Matias Galuccio: noting that we will likely be on the upper end of this range. During the second quarter of 2024, we continue to make solid progress in the execution of our annual work program.
Miguel Galuccio: During the second quarter of 2024, we continue to make solid progress in the execution of our annual work program. We tie in four world paths during Q2, Q in the Palo Esti, one in the Palo Esti, and one in our referral for the total of 14 new wells. We connected 25 new wells during the first six months of the year, leaving us on track to the liver of our activity guidance, which is between 50 and 54 new wells for the year. We also achieved the major milestone in terms of production capacity expansion by signing in a contract with SLV for the second-frax set.
Miguel Matias Galuccio: During the second quarter of 2024, we continue to make solid progress in the execution of our annual work program. We tie in 4 well pads during Q2, two in Bajada del Palo Oeste, one in Bajada del Palo Este, and one in Aguada Federal for a total of 14 new wells.
Miguel Matias Galuccio: We tie in a 4-well pass during Q2.
Miguel Matias Galuccio: Two in Bajada del Palo Oeste, one in Bajada del Palo Este, and one in Aguada Federal for a total of 14 new wells.
Miguel Matias Galuccio: We connected 25 new wells during the first six months of the year, leaving us on track to deliver our activity guidance, which is between 50 and 54 new wells for the year. We also achieved a major milestone in terms of production capacity expansion by signing a contract with SLV for the second frack set.
Miguel Matias Galuccio: We connected 25 new wells during the first six months of the year.
Miguel Matias Galuccio: leaving us on track to deliver our activity guidance which is between 50 and 54 new wells for the year.
Miguel Matias Galuccio: We also achieved a major milestone in terms of production capacity expansion by signing a contract with SLV for the second frack set.
Miguel Galuccio: We expect the set to be fully operational for us towards year-end, adding capacity to the three highest-pec drilling rigs and one-frax set we are currently operating. This new contract will give us additional flexibility to potentially accelerate our activity as of 2025.
Miguel Matias Galuccio: They're set to be fully operational for us towards year-end, adding capacity to the three high-spec drilling rigs and one frag set we are currently operating. This new contract will give us additional flexibility to potentially accelerate our activity as of 2025. During Q2 2024, we made solid progress in securing additional oil treatment and mainstream capacity for our growth plan. We finished off our old treatment plant in Entre Lomas and expanded it to a total capacity of 85,000 barrels of oil per day.
Miguel Matias Galuccio: We expect the set to be fully operational for us towards year-end, adding capacity to the three high-spec drilling rigs and one frag set we are currently operating.
Miguel Matias Galuccio: This new contract will give us additional flexibility to potentially accelerate our activity as of 2025.
Miguel Galuccio: During Q2, 2024, we have made solid progress in securing additional oil treatment and minstering capacity for our grow plan. Within it of our oil treatment plan in Entralomas, expanded to a total capacity of 85,000 barrels of oil per day. We also finalized the connection of our development hub to the Bacamortanorte oil pipeline, doubling our capacity to export oil to Chile to a new total of 12,500 barrels of oil per day. Finally, we initiated a project in our oil treatment plan to expand the tracking capacity from 22,000 to 37,000 barrels of oil per day. We expect this to be fully operational by the end of Q3.
Miguel Matias Galuccio: During Q2 2024, we have made solid progress in securing additional oil treatment and mainstream capacity for our growth plan.
Miguel Matias Galuccio: Within it, our oil treatment plant in Entre Lomas expanded to a total capacity of 85,000 barrels of oil per day.
Miguel Matias Galuccio: We also finalized the connection of our development hub to the Vaca Muerta Norte oil pipeline, doubling our capacity to export oil to Chile to a new total of 12,500 barrels of oil per day. Finally, we initiated a project at our oil treatment plant to expand the tracking capacity from 22,000 to 37,000 barrels of oil per day. We expect this to be fully operational by the end of Q3.
Miguel Matias Galuccio: We also finalized the connection of our development hub to the Vaca Muerta Norte oil pipeline, doubling our capacity to export oil to Chile to a new total of 12,500 barrels of oil per day.
Miguel Matias Galuccio: Finally, we initiated a project in our oil treatment plant to expand the tracking capacity from 22,000 to 37,000 barrels of oil per day. We expect this to be fully operational by the end of Q3.
Miguel Galuccio: This will provide us with incremental take-away capacity that is key while the pipeline system is being expanded.
Miguel Matias Galuccio: This will provide us with incremental take-away capacity that is key while the pipeline system is being expanded. In Q2 2024, total revenue amounted to $397 million, a 66% increase compared to Q2 2023, and then 25% above the previous quarter, driven by strong production growth, as well as an increase in realization prices. Realized oil prices were $71.8 per barrel on average, up 12% on an inter-annual basis. Realized oil prices in the domestic market were $73.7 per barrel, including 42% of domestic volumes sold at import parity link
Miguel Matias Galuccio: This will provide us with incremental take-away capacity that is key while the pipeline system is being expanded.
Miguel Galuccio: In Q2, 2024, total revenue saw to $397 million, a 66% increase compared to Q2, 2023, and in 25% about the previous quarter. Driven by a strong production grow, as well as an increase in real estate and price. Realized oil prices was $71.8 per barrel on average, up 12% on international erases. Realized oil price in the domestic market was $73.7 per barrel, including 42% of domestic volumes sold at the property link pricing. Net of tracking costs, domestically realized oil prices were $68.9 per barrel. During Q2 2024, we tracked 23% of the volume sold in the domestic market.
Miguel Matias Galuccio: In Q2 2024, total revenues soared to $397 million, a 66% increase compared to Q2 2023, and 25% above the previous quarter.
Miguel Matias Galuccio: driven by strong production growth as well as an increase in realization prices.
Miguel Matias Galuccio: realized oil prices was $71.8 per barrel on average, up 12% on inter-annual basis.
Miguel Matias Galuccio: Realized oil price in the domestic market was $73.7 per barrel, including 42% of domestic volumes sold at export parity link pricing.
Miguel Matias Galuccio: Net off-tracking cost, domestic realized oil prices were $68.9 per barrel. During Q2 2024, we tracked 23% of our deployment sold in the domestic market. In the export market, our realization price was $76.6 per barrel. We exported 1.9 million barrels of oil, 22% above the previous year, capitalizing on the strong growth of our production. Combining sales to international buyers and domestic buyers paying export parity, 64% of our total sales were sold at export parity.
Miguel Matias Galuccio: Net off-tracking cost, domestic realized oil prices were $68.9 per barrel.
Miguel Matias Galuccio: During Q2 2024, we tracked 23% of our deployment sold in the domestic market.
Miguel Galuccio: In the export market, our realization price was $76.6 per barrel. We sported $1.9 million barrels of oil, 22% above the producer capitalizing on the strong grow of our production. Combining sales to international buyers and domestic buyers paying export parity, 64% of our total sales were sold at export parity. Lifting costs was $26.7 million for a quarter, in play in a listing cost per BIOE of $4.5. The 31% increase in absolute level compared to the same quarter of last year was driven by higher cost and gathering processing, compression, and power generation to accommodate current production and future growth.
Miguel Matias Galuccio: In the export market, our realization price was $76.6 per barrel.
Miguel Matias Galuccio: We exported 1.9 million barrels of oil, 22% above the previous year, capitalizing on the strong growth of our production.
Miguel Matias Galuccio: Combining sales to international buyers and domestic buyers paying export parity, 64% of our total sales were sold at export parity.
Miguel Matias Galuccio: Lifting cost was $26.7 million for a quarter, implying a lifting cost per BOE of $4.5. The 31% increase in absolute level, compared to the same quarter of last year, was driven by higher costs in gathering, processing, compression, and power generation to accommodate current production and future growth. On a unit cost basis, our lifting cost was down 6% compared to the same quarter of last year, reflecting our low-cost operating model now fully focused on shale oil.
Miguel Matias Galuccio: Lifting cost was $26.7 million for a quarter, implying a lifting cost per VOE of $4.5.
Miguel Matias Galuccio: The 31 percent increase in absolute level compared to the same quarter of last year was driven by higher costs in gathering, processing, compression, and power generation to accommodate current production and future growth.
Miguel Galuccio: On a unique cost basis, our lifting cost was down 6% compared to the same quarter of last year, reflecting our low-cost operating model now fully focused on shalloy. We expect a dilution of the thick component of this incremental cost as we continue to ramp up production. Based on our annual work program, our model shows we are on track to deliver on our guidance of $4.5 per barrel for the year. Ashastid VDA, during Q2 2024, was $288 million and increased of 90% year over year, mainly driven by strong revenue growth. On a sequation basis, Ashastid VDA increased by 31%.
Miguel Matias Galuccio: On a unit cost basis, our lifting cost was down 6% compared to the same quarter of last year, reflecting our low-cost operating model now fully focused on shale oil.
Miguel Matias Galuccio: We expect a dilution of the fixed component of this incremental cost as we continue to ramp up production.
Miguel Matias Galuccio: We expect a dilution of the fixed component of this incremental cost as we continue to ramp up production. Based on our annual work program, our model shows we are on track to deliver on our guidance of $4.5 per barrel for the year. Adjusted EVDA during Q2 2024 was $288 million, an increase of 90% year-over-year, mainly driven by strong revenue growth. On a sequential basis, adjusted EVDA increased by 31%
Miguel Matias Galuccio: Based on our annual work program, our model shows we are on track to deliver on our guidance of $4.5 per barrel for the year.
Miguel Matias Galuccio: Adjusted EVDA during Q2 2024 was $288 million, an increase of 90% year-over-year mainly driven by strong revenue growth. On a sequential basis, Adjusted EVDA increased by 31%.
Miguel Galuccio: Ashastid VDA marching was 70% during the quarter, an international increase of 7% points reflecting the benefit of the economy of the scale, as we deliver robust revenue growth wise decreasing lifting cost per Vioe. Netback was $48.5 per Vioe, a 35% increase year over year, reflecting the higher prices and increase in all chugas ratio for our sales. Freakash low during the quarter was $1 million, even as we accelerate capex as strong as activation ratio boosted cash from operating activities. Operating activities cash flow was $281 million, in line with Ashastid VDA, as advance payment for mainstream expansion of $36 million were funded by edicrees in working capital of $33 million.
Miguel Matias Galuccio: Adjusted EVDA margin was 70% during the quarter, an interannual increase of 7% points reflecting the benefit of the economy of scale as we deliver robust revenue growth whilst decreasing lifting costs per VOE. Net back was $48.5 per DOE, a 35% increase year over year, reflecting the higher prices and increase in oil to gas ratio for our. Pre-cash flow during the quarter was $8 million, even as we accelerate CAPEX as strong as activity age generation boosted cash from operating activity.
Miguel Matias Galuccio: Adjusted EVDA margin was 70% during the quarter, an inter-annual increase of 7% points reflecting the benefit of the economy of the scale, as we deliver robust revenue growth whilst decreasing lifting costs per VOE.
Miguel Matias Galuccio: Net VAC was $48.50 per DOE, a 35% increase year-over-year, reflecting the higher prices and increase in oil-to-gas ratio for our sales.
Miguel Matias Galuccio: Pre-cash flow during the quarter was $8 million, even as we accelerate CAPEX as strong as activity generation boosted cash from operating activities.
Miguel Matias Galuccio: Operating Activities Cash Flow was $281 million in line with adjusted EBDA, as advanced payments for mainstream expansion of $36 million were funded by a decrease in working capital of $33 million; cash flow used in investing activities was $273 million, reflecting capex of $346 million for the quarter; partially offset by the $74 million decrease in CAPEX-related working capital; cash at period end was $328 million, as cash from financing activities generated $168 million. The net leverage ratio stood at a very healthy 0.56 times adjusted EVDA at quarter end.
Miguel Matias Galuccio: Operating activities cash flow was 281 million dollars in line with adjusted EVDA as advanced payment for mainstream expansion of 36 million dollars were funded by a decrease in working capital of 33 million dollars.
Miguel Galuccio: Cash flow used in investing activities was $273 million, reflecting capex of $346 million for the quarter, partially upset by the $74 million decrease in capex-related working capital. Capital. Cash at period N was $320 million, and cash from financing activities generated $168 million. Net level of ratio stood at the very healthy 0.56 times asher to the VD8 at Quarter N.
Miguel Matias Galuccio: Cash flow used in investing activities was $273 million, reflecting CAPEC of $346 million for the quarter, partially offset by the $74 million decrease in CAPEC-related working capital.
Miguel Matias Galuccio: Cash at period N was $328 million, as cash from financing activities generated $168 million.
Miguel Matias Galuccio: Net laborer ratio stood at the very healthy 0.56 times asha Tdbd8 at quarter end.
Miguel Galuccio: I will now summarize the key take of ways of today's presentation. During QQ 2024, we continue the level and strong execution of our drilling and completion plan. We tie in 14 new wells in life with our annual guidance for a total of 25 during the first semester of the year. De-generated robust production increase in QQ both on an inter-annual and sequential basis. The strong revenue generation driven by robust web productivity and improved relies on prices, showingly with the focus on cost efficiency boosted at cash at the VD8, which is in the 12 months surpassed $1 billion for the first time in our company history.
Miguel Matias Galuccio: I will now summarize the key takeaways of today's presentation. During Q2 2024, we continue delivering a strong execution of our drilling and completion plan. We tie in 40 new wells in line with our annual guidance for a total of 25 during the first semester of the year.
Miguel Matias Galuccio: I will now summarize the key takeaways of today's presentation.
Miguel Matias Galuccio: During Q2 2024, we continue delivering a strong execution of our drilling and completion plan.
Miguel Matias Galuccio: We tie in 40 new wells in line with our annual guidance for a total of 25 during the first semester of the year. This generated a robust production increase in Q2, both on an inter-annual and a sequential basis.
Miguel Matias Galuccio: This generated a robust production increase in Q2, both on an inter-annual and a sequential basis, strong revenue generation driven by robust web productivity, and improved realized oil prices, showing that the focus on cost efficiency boosted adjusted EVDA, which in the 12 months surpassed 1 billion dollars for the first time in our company history. We also achieved a major milestone in preparing our company for future growth, expanding our oil treatment capacity, and connecting our operation to the Bacamorta Norte pipeline.
Miguel Matias Galuccio: A strong revenue generation driven by robust web productivity and improved realized oil prices.
Miguel Matias Galuccio: jointly with the focus on cost efficiency boosted adjusted EVDA which is in the 12 months surpassed $1 billion for the first time in our company history.
Miguel Galuccio: We also achieved measure milestone in preparation for our company for future growth, expanding our old treatment capacity and connecting our operations to the Bacamorta North Highline. We also secure a second-frax set, which adds flexibility to potentially accelerate our short cycle hard return capital program as of 2025. This reflects the constructive view we have on the dynamics of our industry, both globally and domestically, and is underpinned by our strong conviction on our ability to deliver value to our shareholders. The first semester has ended on a high note for us and put us on track to deliver on our annual guidance.
Miguel Matias Galuccio: We also achieved a major milestone in preparing our company for future growth.
Miguel Matias Galuccio: expanding our oil treatment capacity and connecting our operation to the Bacamarta Norte pipeline. We also secured a second fracset, which adds flexibility to potentially accelerate our short cycle hard return capital program as of 2025.
Miguel Matias Galuccio: We also secured a second FRAC set, which adds flexibility to potentially accelerate our short cycle hard return capital program as of 2025. This reflects the constructive view we have on the dynamics of our industry, both globally and domestically, and is underpinned by our strong conviction in our ability to deliver value to our shareholders. The first semester ended on a high note for us and put us on track to deliver on our annual guidance. Before we move to Q&A, I would like to thank our shareholders for their continued support and congratulate the entire Vista team for their outstanding performance. Operator, please open the line for Q&A. Thank you.
Miguel Matias Galuccio: This reflects the constructive view we have on the dynamics of our industry, both globally and domestically, and is underpinned by our strong conviction on our ability to deliver value to our shareholders.
Miguel Matias Galuccio: The first semester has ended on a high note for us and put us on track to deliver on our annual guidance.
Miguel Galuccio: Before we move to Q&A, I would like to thank our shareholders for their continued support and congratulate the entire VISTA team for their outstanding performance.
Miguel Matias Galuccio: Before we move to Q&A, I would like to thank our shareholders for their continuous support and congratulate the entire Vista team for their outstanding performance. Operator, please open the line for Q&A.
Operator: Operator, please open the line for Q&A. Thank you, and at the same time, welcome to the question and answer session. As a reminder to ask a question, you will need to press start 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press start 1-1 again. One moment for our first question.
Operator: Thank you, and at this time, we'll conduct the question and answer session. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. One moment for our first question. Our first question will come from the line of Vicente Falanga from Berdesco BBI. Your line is open.
Speaker Change: Thank you. And at this time, we'll conduct the question and answer session. As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again. One moment for our first question.
Vicente Falanga: Our first question on offline, Vicente Falanga from Bodesco BBI. The line is open. Thank you very much.
Speaker Change: [inaudible]
Speaker Change: Our first question will come from Vicente Falanga from Berdesco BBI. Your line is open.
Vicente Falanga: Thank you very much. Good morning, everyone.
Vicente Falanga: Good morning, everyone. Miguel, Pablo, Juan, and Alejandro. Congratulations on the great execution. I had two questions.
Vicente Falanga: Thank you very much. Good morning, everyone. Miguel, Pablo, Juan, and Alejandro, congratulations on the
Miguel Matias Galuccio: Miguel, Pablo, Juan, and Alejandro, congratulations on the great execution. I had two questions. The first one, could you please comment on your exit production for the second quarter and how your third quarter should look in terms of output? And then my second question, could you also please provide more details on the reason for the hiring of a second frack crew from Flumbergier? Where should this FACU crew go first, and could that speed up drilling in Aguilar Mora? Thank you very much.
Miguel Galuccio: The first one, could you please comment on your exit production for the second quarter and how your third quarter should look like in terms of outputs. And then my second question, could you also please provide more details on the reason for the hiring of the second FACRU from St. Brigitte? Where should this FACRU crew go first, and could that speed up really in Aguilamora? Thank you very much.
Vicente Falanga: The Great Execution. I had two questions. The first one...
Vicente Falanga: Could you please comment on your exit production for the second quarter and how your third quarter should look like in terms of output? And then my second question, could you also please provide more details on the reason for the hiring of a second flat crew from Schlumberger?
Speaker Change: Where should this FACU crew go first and could that speed up drilling in Aguilar Mora? Thank you very much.
Miguel Galuccio: Hello Vicente. Thank you very much for your question. So starting with the first one, Q2 exit on production. The ramp up of QQ was mainly driven by the Leven Wells in the three paths that we connect in Bajara El Palo estes during the Conjalf of Q1. On average, we see two of those paths performing within the tight curve and one path at the north even performing better than that type curve. When you look at the average per man of QQ, we have 65.3 barol of oil per day. A semanly breakdown would record 60.6 in April, 16.5 in May, and almost 70 in June.
Miguel Matias Galuccio: Hello, Vicente. Thank you very much for your question. So starting with the first one, Q2 exit on production. The ramp up of Q2 was mainly driven by the 11 wells in the three paths that we connected in Bajada del Palo Este during the second half of Q1. On average, we see two of those paths performing within the tight curve and one path at the north even performing better than the tight curve. When you look at the average per month for Q2, we have 65.3 barrels of oil per day as a monthly breakdown. We recorded 60.6 in April, 16.5 in May, and almost 70 in June.
Vicente Falanga: Hello Vicente, thank you very much for your question. So starting with the first one, Q2 exit on production.
Vicente Falanga: The ramp up of Q2 was mainly driven by the 11 wells in the three paths that we connect in Bajada del Palo Este during the second half of Q1.
Vicente Falanga: On average, we see two of those parts performing within the tight curve and one part at the north even performing better than the tight curve.
Vicente Falanga: When you look at the average...
Vicente Falanga: per man of Q2. We have 65.3 barrels of oil per day as a monthly breakdown. We record 60.6 in April , 16.5 in May, and almost 70 in June .
Miguel Matias Galuccio: So if you have to look at the Q3, I will probably go for a double digit growth again, non-list and 10%. This is what I would recommend for your model.
Miguel Galuccio: So, if you have to look at Q3, I will probably go for a double-digit grow again, not least, and 10%. This is what I will recommend for your model.
Vicente Falanga: So, if you have to look at the Q3, I will...
Vicente Falanga: probably go for a double-digit grow again, not less than 10%. This is what I will recommend for your model. Regarding your second question about the second frack set...
Miguel Matias Galuccio: Regarding your second question about the second frag set. The second francette is going to be incorporated. First of all, I mean, there was a very good movement from our people in bringing the second francette and also taking advantage of it. I will describe the special relationship that we have with our service provider, in this case, Schoenberger.
Miguel Galuccio: Regarding your second question about the second fragset, the second fragset is going to be incorporated. First of all, I mean, there was a very good movement from our people in bringing the second front set and also taking advantage of the, I will say, special relationship that we have with our service provider in this case in Brazil. The second fragset is going to arrive in the country in Q4 of this year. I will not impact 2024 plan. The second fragset was thought about gaining optionality and flexibility to accelerate and deliver our 2025 plan. So, that is what we have for the second fragset in May.
Vicente Falanga: The second francet is going to be incorporated, first of all, I mean, there was a very good movement from our people in bringing the second francet and also taking advantage of the
Vicente Falanga: I will set a special relationship that we have with our service provider in this case,
Miguel Matias Galuccio: The second fraction is going to arrive in the country in Q4 of this year. It will not impact the 2024 plan. The second fraction was thought to be... about gaining optionality and flexibility to accelerate and deliver our 2025 plan. So that is what we have for the second fraction in mind. So in terms of additional production for 2024, it will not be impacted. But, of course, it will give us some room to accelerate or bring more production during 2025.
Vicente Falanga: The second fraction is going to arrive in the country in Q4 of this year. I will not impact 2024 plan.
Vicente Falanga: The second fraction was thought...
Vicente Falanga: about gaining optionality and flexibility to accelerate and deliver our 2025 plan.
Miguel Galuccio: So, in terms of additional production for 2024, it will not be impacted. But, of course, it will give us some room to accelerate or to bring more production during 2025.
Vicente Falanga: So that is what we have for the second fraction in mind.
Vicente Falanga: So, in terms of additional production for 2024, it will not be impacted, but of course it will give us some room to accelerate or to bring more production during 2025.
Vicente Falanga: Thank you very much for your answers.
Vicente Falanga: Great, thank you very much for me.
Operator: Thank you, Vicente. One moment for our next question.
Speaker Change: Great, thank you very much for the answers.
Operator: One moment for our next question. The next question comes from Daniel Guardiola Fernandez from BTG Pactual. Your line is open. Thank you.
Speaker Change: Thank you Vicente.
Speaker Change: One moment for our next question.
Daniel Guarriola Fernandez: Next question, Coflinod.
Daniel Guarriola Fernandez: Daniel Guarriola Fernandez from BTG, Pactual, Uranus Open. Thank you. Hi, good morning, guys. I come glad for the great results and the back of the execution.
Speaker Change: Our next question comes from Daniel Guardiola-Fernandez from BTG Pactual. Your line is open.
Daniel Guardiola: Thank you. Hi, good morning, guys. And yeah, congratulations on the great results and the impeccable execution.
Speaker Change: Thank you. Bye. Good morning, guys.
Speaker Change: And yeah, congrats for the great results and impeccable execution.
Daniel Guarriola Fernandez: I have two questions for my client. The first one is related to the approval of the envelope that was a recent history that the government claimed in Congress. And I want to know if you can share with us the main part of the potential effects for this are related to the approval of this deal. And more specifically, if you can comment on the applicability of the rigid chapter, especially to our three products of potential acquisitions of companies or agents in this sector. So, that will be my first question.
Miguel Matias Galuccio: I have two questions for Marianne. The first one is related to the approval of the Omnibus Law, which was a recent victory that the government claimed in Congress. And I want to know if you can share with us the main positive or potential effects for Vista related to the approval of this deal. And more specifically, if you can comment on the applicability of the WeGive chapter, especially to upstream projects or to potential acquisitions of companies or acreage in this sector. So that will be my first question.
Daniel Guardiola: I have two questions for Marianne.
Daniel Guardiola: The first one is related to the approval of the Omnibus Law, that was a recent victory that the government claimed in Congress. And I want to know if you can share with us.
Daniel Guardiola: The main positive or potential effects.
Daniel Guardiola: for Vista related to the approval of this deal. And more specifically, if you can comment on the applicability of the WeGive chapter, especially to upstream products or to potential acquisitions.
Daniel Guardiola: of companies or acreage in this sector. So that would be my first question. My second question, I saw during the presentation that you guys...
Miguel Galuccio: My second question, I saw during the presentations that you guys need to be increased; you're charging up at 37k per day. I wanted to know, Miguel, maybe you can share with us what your expectations are in terms of throughout trucking towards the end of the year? How do you see that evolving in 2025, once, you know, the widely expected additional pipeline capacity comes online? And what are the costs between trucking and using oil pipelines?
Miguel Matias Galuccio: My second question, I saw during the presentation that you guys Uniquely increased your trucking capacity to 27k per day. I wanted to know, Miguel, and maybe you could share with us, what are your expectations in terms of total trucking towards the end of the year? How do you see that evolving in 2025 once, you know, the widely expected additional pipeline capacity comes online? And what are the costs differing between trucking and using oil pipelines?
Speaker Change: to significantly increase your trucking capacity to 27k per day.
Speaker Change: I wanted to know, Miguel, maybe you can share with us, what are your expectations in terms of total trusting?
Speaker Change: How do you see that evolving in 2025 once the widely expected additional pipeline capacity comes online? And what are the costs?
Speaker Change: between trucking and using oil pipelines.
Miguel Galuccio: Thank you, Daniel, for your question. So, starting with the first one, the labasis and the Ruby, the labasis, as you know, I mean, it has two main statements that are important to our industry. Then one is the principle of no price intervention by the government in pricing of crude oil and products, and the second one is the principle of freedom of exports for crude oil and products as well. I will say these are two very important and good principles that are in the law, and now we will have to wait until the fine prime is worked out and how the regulation end up.
Daniel Guardiola: Thank you, Daniel, for your question. So starting with the first one, the Ley Bases and the RIGI. The Ley Bases, as you know, I mean, we have two main Two main statements that are important to our industry. One is the principle of no price intervention by the government in the pricing of crude oil and products. And the second one is the principle of freedom of export for crude oil and products as well. I would say these are two very important and good principles that are in the law.
Miguel Matias Galuccio: Thank you Daniel for your question. So starting with the first one, the Leybases and the Rigi. The Leybases, as you know, I mean, have two main
Miguel Matias Galuccio: Two main statements that are important to our industry, one is the principle of no price intervention by the government in pricing of crude oil and products, and the second one is the principle of freedom of export for crude oil and products as well.
Miguel Matias Galuccio: I would say these are two very important and good principles that are in the law, and now we will have to wait until the fine print is worked out and how the regulation end up.
Miguel Matias Galuccio: And now we will have to wait until the fine print is worked out and how the regulation ends up, of course, is going to be a matter of execution in the sense that how [inaudible] The second related to the RIGI, I will say in my view, it's unclear yet, and again, the RIGI has not been regulated yet. The regulation has to be written. And it's unclear to me the applicability of the RIGI to the upstream business overall.
Miguel Galuccio: Of course, it's going to be a matter of execution in the sense that how fast that principle can be transmitted in real prices in the reality. Of course, we are positive. The spirit of these principles is good. Now, all the players we have to push and apply it, and of course, the fine printing of the regulation is key. So, I get the secretive energy will be focused on that.
Miguel Matias Galuccio: Of course, it's going to be a matter of execution, in the sense that how...
Miguel Matias Galuccio: FASS.
Miguel Matias Galuccio: That principle can be transmitted in real prices.
Miguel Matias Galuccio: [inaudible]
Miguel Galuccio: The second, related to the Ruby, I will set in my view; it's unclear yet, and again, the Ruby has not been regulated yet, and the regulation has to be written. And it's unclear for me the applicability of the reagent to the Austrian business overall. It's probably more clear regards infrastructure, but it's unclear for the Austrian. Nevertheless, I would like to set that for Argentina, and with the potential that Bacamorta have, actually, we have three rigs in the country, and the same volume of resources that you have in U.S. With 500 rigs, using the rig to accelerate Bacamorta is clearly not raining for me for the country.
Miguel Matias Galuccio: The second, related to the rigging...
Miguel Matias Galuccio: I will say, in my view, it's unclear yet, and again, the rules have not been regulated yet.
Miguel Matias Galuccio: The regulation has to be written, and it's unclear for me the applicability of the Regis to the Astrin business overall. It's probably more clear in regards to infrastructure, but it's unclear for the Astrin.
Miguel Matias Galuccio: It's probably more clear as regards infrastructure, but it's unclear for the upstream. Nevertheless, I would like to say that for Argentina, and with the potential that Bacamorta has, actually, we have 30 rigs in the country and the same volume of resources that you have in the U.S. with 500 rigs. [inaudible] Your second question in regard to COS and
Miguel Matias Galuccio: Nevertheless, I would like to say that for Argentina, and with the potential that Bacamorta has, actually we have 30 rigs in the country, and the same volume of resources that you have in the U.S. with 500 rigs.
Miguel Matias Galuccio: Using the riggy to accelerate Vaca Muerta is clearly a no-brainer for me for the country. Now, I cannot comment on the application since it is not clear to me. How it is regulated is going to be key.
Miguel Galuccio: Now, I cannot comment on the application since yet is not clear to me. How is it regulated? It's going to be key.
Miguel Galuccio: Your second question is regarding the volumes of track and cost. So, the cost of tracking for us is approximately in the range of $15 per barred. In Q1, we track around 2,000 barreds; in Q2, we track around 8,000 barreds. This Yes, 18,000 barrels per day. And in Q3, we plan to transport by track around 13,000 barrels per day. So again, in parking costs, it's around 20 billion dollars. Q4, we really depend of the starting of all the Q3, basically make a difference of how much we track in Q4. I will say I will assume around 20,000 barrels per day.
Speaker Change: Your second question in regards to...
Miguel Matias Galuccio: So the cost of tracking for us is approximately in the range of $15 per barrel. In Q1, we tracked around 2,000 barrels. In Q2, we tracked around 8,000 barrels, did have an impact or a cost of $11 million. Yes, 8,000 barrels per day, no? And in Q3, we plan to transport by truck around 13,000 barrels per day. So again, in parking costs, it's around $20 billion.
Speaker Change: Bollings of Trucks and Coasts
Speaker Change: So, the cost of tracking for us is approximately in the range of $15 per barrel.
Speaker Change: In Q1, we tracked around 2,000 barrels, in Q2 we tracked around 8,000 barrels. This has an impact or a cost of $11 million.
Speaker Change: Yes, 8,000 bottles per day, no?
Speaker Change: And in Q3, we plan to transport by truck around 13,000 barrels per day. So again, impact in cost is around $20 billion.
Miguel Matias Galuccio: In Q4, we really depend on the start of Old El Val. So, when starting Q4, Old El Val is going to basically make a difference to how much we track in Q4. I will say I will assume around 20,000 barrels per day.
Speaker Change: Q4, we really depend on the starting of Old El Val.
Speaker Change: So, when starting Q4, Del Valle is going to basically make a difference of how much we track in Q4.
Miguel Matias Galuccio: And Q4, this is Q4. And in 2025, you should see the tracking load down and disappear as Old El Val gets full speed. And also, in the second half of 2025, we should have the second stage of Old El Val coming into place.
Speaker Change: I would say, I would assume around 20,000 barrels per day.
Miguel Galuccio: And Q4, and Q4, this is Q4, and 2025, you should see that tracking is loading down and disappear as all the Q4s that will get full speed, and also in the second half of 2025, we should have this stage of order by coming into place.
Speaker Change: and Q4, this is Q4, and 2025.
Speaker Change: You should see the tracking slowing down and disappear as Old El Val gets full speed. And also in the second half of 2025, we should have the second stage of Old El Val coming into place.
Daniel Guarriola Fernandez: Thank you, Miguel, for a follow-up. Thank you.
Daniel Guardiola: Thank you, Miguel, for...
Speaker Change: Thank you, Miguel, for the answer.
Operator: Thank you. One moment for our next question. And our next question comes from Alejandro Demichelis from Jeffreys. Your line is open. Yes, good morning, gentlemen.
Operator: One moment for our next question.
Speaker Change: Thank you. One moment for our next question.
Alejandro DeMichelis: And our next question of line of Alejandro Demichelis from Jeffries, line is open. Yes, good morning, gentlemen. Congratulations on the quarter. A couple of questions, if I may, please. The first one is, could please give us how you're viewing the local pricing evolving from here. Now you're saying you have about 64% of total volumes sold at export parity. How do you see that evolving?
Speaker Change: And our next question comes from Alejandro Demichelis from Jeffries. Your line is open.
Alejandro Anibal Demichelis: Yes, good morning gentlemen. Congratulations on the quarter.
Alejandro Anibal Demichelis: A couple of questions, if I may, please. The first one is, could you please give us how you're viewing the local pricing evolving from here? Now you're saying you have about 64% of total volume sold at export parity. How do you see that evolving? That's the first. And then, in terms of the second question, how do you see the export volumes also evolving? And Miguel, you mentioned it will depend a little bit on how you see all of the above, but what's your best guess today in terms of the overall situation?
Alejandro Anibal Demichelis: Yes, good morning, gentlemen. Congratulations on the quarter. A couple of questions, if I may, please. The first one is...
Alejandro Anibal Demichelis: Could you please give us how you're viewing the local pricing evolving from here? Now you're saying you have about 64% of total volumes sold at export parity. How do you see that evolving? That's the first question.
Alejandro DeMichelis: That's the first question. And then, in terms of the second question, how do you see the export volumes also evolving? And Miguel, you mentioned it will depend a little bit on how you see all the value, but what's your best guess today in terms of the overall situation?
Alejandro Anibal Demichelis: And then, in terms of the second question, how do you see the export volumes also evolving? And Miguel, you mentioned it will depend a little bit how you see all of that. But what's your best guess today in terms of the overall situation?
Miguel Galuccio: Thank you, Alejandro, for your question. So, in terms of pricing, are you, as we mentioned in the presentation, a bit of racialized price was around $72 in Q2 2024. This was 12% about half a year earlier, and we were 2% above the last quarter. That was mainly driven by the 14% year-early increase in domestic prices. We went from $60 per barrel and Q2 were 68. So that taking consideration in general for the right price, every end of 85, we have a discount of 2.5. So we have a sell price of 82.5, and that gave us a real life price of 76.6 with a net of 8% of export tax.
Miguel Matias Galuccio: Thank you, Alejandro, for your question. So in terms of pricing, as we mentioned in the presentation, Vista's average realized oil price was around $72 in Q2 2024. This was 12% above half year on year, and we were 2% above in the last quarter. That was mainly driven by the 14% year-over-year increase in domestic prices. We went from $60 per barrel, and in Q2, we were at 68.
Speaker Change: Thank you, Alejandro, for your question.
Speaker Change: So, in terms of pricing, as we mentioned in the presentation, Vista Average Realized Oil Price was around $72 in Q2 2024. This was 12% above year-on-year, and we were 2% above in the last quarter.
Speaker Change: That was mainly driven by the 14% year-over-year increase in domestic prices. We went from $60 per barrel, and in Q2 we were at $68.
Miguel Matias Galuccio: That taking into consideration, in general, for the realized price, a rent of $85, we have a discount of $2.5. So we have a selling price of $82.5. And that gives us a realized price of $76.6, with a net of 8% of export tax. Regarding the evolution of that, our total export this quarter was 38% of the total volume, and the export parity total was 64% of the total volume. If we assume that in Q3, our export will move from 38%, let's say, to 50% of the volume.
Speaker Change: So.
Speaker Change: That, taking in consideration, in January for the realized price, a rent of 85, we have a discount of 2.5, so we have a sale price of 82.5, and that gives us a realized price of 76.6, with a net of 8% export tax.
Miguel Galuccio: Regarding the evolution of that, our total export this quarter was 38% of the total volume, and the export parity total was 64% of the total volume. If we assume that the Q3, our export will move from 38% to 50% of the volume, I think we should expect that the export parity over the total will be in Q3, around 70%. So, of course, the key will be, and I think for the volumes that we are putting in production, and we are going to export, I think it's feasible.
Speaker Change: Regarding the evolution of that, our total export this quarter was 38% of the total volume.
Speaker Change: And the export parity total was 64% of the total volume.
Speaker Change: If we assume that in Q3, our export will move from 38%, let's say, toward 50% of the volume,
Miguel Matias Galuccio: I think we should expect that the export parity over the total will be around 70% in Q3. So of course, the key will be, and I think for the volumes that we are putting in production, and we're expecting to put in production in Q3, achieving 50% of our volume going to export is feasible, and I think I answered your two questions, Alejandro.
Speaker Change: I think we should expect that the export parity over the total will be in Q3 around 70%.
Speaker Change: So, of course, the key will be, and I think for the volumes that we are putting in production and we're expecting to put in production in Q3, achieving 50% of our volume going to export, I think it's feasible.
Alejandro DeMichelis: And I think I answered your two questions, Alejandro. Okay, that's great.
Speaker Change: And I think I answered your two questions, Alejandro.
Alejandro Anibal Demichelis: That's great. And Miguel, now you have better visibility going at least into the first half of 2025. How do you see that evolving? Obviously, there are a lot of moving parts there.
Miguel Galuccio: And Miguel, now you have better visibility going at this until the first half of 2025. How do you see that 2025 evolving? Obviously, there are more parts there. 2025, I mean, we clearly, our guidance for 2025, if we exceed this year, 88,000,000 barrels per day, is basically outdated already. Therefore, you need to expect that at some point this year, we will review that guidance. And also, if you are going to model now, we have today no reason to reduce activity since everything is going well. We will end up this year with 54 wells. So, I will take at least the same cup pack to drill another 54 wells for next year.
Miguel Matias Galuccio: Okay, that's great. And Miguel, now you have better visibility going at least into the first half of 2025. How do you see that 2025 evolving? Obviously, there are a lot of moving parts there.
Miguel Matias Galuccio: 2025, I mean, we clearly know what our guidance for 2025, if we exceed this year at 89,000 barrels per day is, is basically outdated already. Therefore, you need to expect that at some point this year we will review that guidance. And also, if you are going to model now, we have no reason today to reuse activity since everything is going well. We will end up this year with 54 wells. So I will take at least the same amount of capex to drill another 54 wells for next year.
Speaker Change: 2025, I mean, we clearly, our guidance for 2025, if we exceed this year at 89,000 barrels per day is, is,
Speaker Change: is basically outdated already. Therefore, you need to expect that at some point this year we will review that guidance.
Speaker Change: And also, if you are going to model now, we have today no reason to reuse activity since everything is going well. We will end up this year with 54 wells.
Speaker Change: So, I will take at least 10 CAPEX to drill another 54 wells for next year.
Alejandro DeMichelis: Okay. Yeah, that's very clear. Thank you very much.
Alejandro Anibal Demichelis: Yeah, that's very clear. Thank you very much. Thank you. One moment for our next question. Our next question comes from Tasso Vasconcellos from UBS. Your line is open.
Tasso Vasconcellos: Thank you. One moment for the next question. Our next question comes from a TASO, bus consejos from UBS.
Speaker Change: Yeah, that's very clear. Thank you very much.
Speaker Change: Thank you. One moment for our next question.
Speaker Change: Our next question comes from Tasso Vasconcellos from UBS. Your line is open.
Tasso Vasconcellos: Irlande is open. Hi, good morning, everyone. Thanks for taking my question, and good to see the great execution from the company. Miguel, maybe I'll follow up a question here on the next year's guidance. We know that it might be updated since you last released in September last year. But if you could, please provide our expectations in terms of the exit rate for this year. What might be the exit rate in terms of production for next year? Because based on the new equipment set and around 55 wells per year, we do have a view here that you might fully anticipate the 2026 guidance for 2025 at some extent.
Operator: Hi, good morning, everyone. Thanks for taking my question and good to see the great execution from the company. Miguel, maybe a follow-up question here on next year's guidance. We know that it might be updated since you last released it in September last year, but if you could at least provide our expectations in terms of the exit rate for this year, what might be the exit rate in terms of production for next year?
Tasso Sousa Vasconcellos: Hi, good morning everyone. Thanks for taking my question and good to see the great execution from the company. Miguel, maybe a follow-up question here on the next year's guidance.
Tasso Sousa Vasconcellos: We know that it might be updated since you last released it in September last year, but if you could at least provide our expectations in terms of the exit rate for this year, what might be the exit rate in terms of production for next year, because based on the new equipment set and...
Operator: Because based on the new equipment and around $55 per year, we do have a view here that you might fully anticipate the 2026 guidance for 2025 to some extent. So it would be great to hear your thoughts on maybe how much production you guys could achieve at the beginning of the year and by the end of the year 2025. My second question is about potential M&As for Vista. We know that Exxon is selling some of the assets, and news in the media reports that you guys and other players are winning this process. So if you could also provide some updates on this investment process from Exxon and maybe other M&A opportunities, I would appreciate that. Those are my questions. Thank you.
Speaker Change: Around 55 barrels per year, we do have a view here that you might fully anticipate the 2026 guidance for 2025 at some extent.
Miguel Galuccio: So, be great to hear your thoughts on maybe how much of production could you guys give at the beginning of the year and by the end of the year of 2025.
Speaker Change: So it would be great to hear your thoughts on maybe how much of production could you guys deliver at the beginning of the year and by the end of the year of 2025.
Tasso Vasconcellos: My second question is on the potential MNAs for Vista. We know that Exxon is selling some of the assets and using the media report that you guys and other players are beating this process. So, if you could also provide some updates on this investment process from Exxon and maybe other MNAs opportunity, I thank you, Tasso, for your question.
Speaker Change: My second question is on the potential M&As for Vista.
Speaker Change: We know that Exxon is selling some of the assets and using the media report that you guys and other players are beating this process.
Speaker Change: So, if you could also provide some updates on this divestment process from Exxon and maybe other M&As opportunities, I would appreciate that. Those are my questions. Thank you.
Tasso Sousa Vasconcellos: Thank you, Tasso, for your question, and let's start with the 2025 forecast. As I mentioned before, again, I mean, you could expect that before the end of the year, we will guide you again since our current forecast seems to be too modest compared with the results that we are having. Nevertheless, you have to look at 2025, when we are starting already with three rigs and three new rigs, because we will have the two that will exist, and we will change one of the ones we have today, in October, with a new state-of-the-art drilling rig that is coming in.
Miguel Galuccio: And look at starting with 2025 forecasts. As I mentioned before, again, I mean, you could expect that before the end of the year, we guide you again since our current forecasts seem to be shy compared with the results that we are having. Nevertheless, you have to look at 2025 that we are starting already with 3 rigs and 3 new rigs because we have the two that we see, and we will change one of the ones we have today in October with a new state-of-the-earth drilling rig that is coming in. And we will have a second frag fleet.
Speaker Change: Thank you, Tasso, for your question and look at starting with 2025 forecast.
Speaker Change: As I mentioned before, again, I mean, you can expect that before the end of the year, we guide you again, since our, our...
Speaker Change: Current forecast seems to be shy compared with the results that we are having.
Speaker Change: Nevertheless, you have to look at 2025, that we are starting already with three rigs, and three new rigs, because we will have the two that will exist, and we will change one of the ones we have today, in October , with a new state-of-the-art drilling rig that is coming in.
Tasso Sousa Vasconcellos: And we will have a second frag fleet. I mean, to execute 54 wells this year with one frag fleet, we were on the limit. So we will have, as I said before, we will build additional optionality and capabilities to accelerate with a second frag set.
Miguel Galuccio: I mean, to execute 54 wells this year, with one frag fleet, we were on the limit. So we will have, as I said before, we will build additional optionality and capabilities to accelerate with a second frag set. Therefore, and we will exceed this year probably if everything goes well, and third core is key at around 89,000 to 90,000 barrels per day.
Speaker Change: And we will have a second FRAC fleet, I mean, to execute 54 wells this year with one FRAC fleet.
Speaker Change: We were on the limit, so we will have, as I said before, we will build additional optionality and capabilities to accelerate with the second frag set.
Miguel Matias Galuccio: And we will probably exceed this year, probably, if everything goes well, and the third quarter is key, at around 89, 90,000 barrels per day. Therefore, you already know that the 2025 number that we put in the guideline is obsolete. So I will assume, in terms of activities, at least, as I said before, 54 wells.
Speaker Change: There are four, and we will exceed this year, probably, if everything goes well, and third quarter is key, at around 89, 90,000 barrels per day.
Miguel Galuccio: Therefore, you already know that 2025 numbers that we put in the guide are obsolete. So, I will assume, in terms of activities, at least, as I said before, 54 wells; that is what we want to deliver in 2024. And I cannot comment on production, but I'm sure we will update that as soon as possible. And this is related to 2025. Related to action, as I said before, and I cannot comment much on that. I'm sure you understand because it's a process where confidentiality is important. We see that we are participating in the process. I think we are a competitive leader.
Speaker Change: Therefore, you already know that 2025 number that we put in the guideline is obsolete.
Speaker Change: So, I will assume, in terms of activities, at least, as I said before, 54 wells. That is what we want to deliver in 2024.
Miguel Matias Galuccio: That is what we want to deliver in 2024. And I cannot comment on production, but I'm sure we will update that as soon as possible. And this is related to 2025. And to Exxon, as I said before, and I cannot comment much on that.
Speaker Change: And I cannot comment on production, but I'm sure we will update that as soon as possible.
Speaker Change: And this is related to 2025. Related to Exxon, as I said before, and I cannot comment much on that, and I'm sure you understand because it's a...
Miguel Matias Galuccio: And I'm sure you understand because it's a process where confidentiality is important. We see that we are participating in the process. I think we are a competitive leader. It's a very competitive process. And again, I mean, it's not going to change the future of Vista at all. As I said before, it's a night to have. And we will compete hard to see what the result is.
Speaker Change: It's a process where confidentiality is important. We see that we are participating in the process. I think we are a competitive leader. It's a very competitive process.
Miguel Galuccio: It's a very competitive process. And again, I mean, it's not going to change the future of this at all. As I said before, it's a night you have. And we will compete hard to see what is the result. That's clear.
Speaker Change: And again, I mean, it's not going to change the future of Vista at all. As I said before, it's a night to have, and we will compete hard to see what is the result.
Tasso Sousa Vasconcellos: That's clear. Thank you. Thank you, Tasso.
Tasso Vasconcellos: Thank you. Thank you, Dustin.
Speaker Change: That's clear. Thank you. Thank you, Tasso.
Marina Mertens: Thank you. One moment for our next question. And our next question comes from Marina Mertens from Latin Securities. Your line is open. Hi, good morning. Thanks for taking my question.
Operator: Thank you. One moment for our next question, and our next question comes from Marina Mertens from Latin Securities. Your line is open.
Speaker Change: And our next question comes from Marina Mertens from Latin Securities. Your line is open.
Marina Mertens: Hi, good morning. Thanks for taking my questions. I have two questions. The first one, regarding your recent equipment update, you mentioned that the new frag set will arrive by the end of the year, but could you provide an update on the current status of the new drilling rig? Is it already operational, or if not, when do you expect it to begin impacting your operations? And the second one: over the last four years, you've been increasing your tracking and transportation while the Old El Val project is underway. If there are any delays, or any additional delays in the Old El Val project, or eventually in the Vaca Muerta Sur project, to what extent could tracking capacity be expanded? Thank Marina. It's a good question.
Marina Mertens: I have two questions. The first one, regarding your recent equipment updates, you mentioned that the new Brexit will arrive by the end of the year. But could you provide an update on the current status of the new drilling grid? Is it already operational, or is it not? When do you expect to be in impact in your operations?
Speaker Change: Hi, good morning. Thanks for taking my questions.
Marina Mertens: I have two questions.
Marina Mertens: The first one, regarding your recent equipment update, you mentioned that the new FRAG set will arrive by the end of the year, but could you provide an update on the current status of the new drilling rig? Is it already operational, or if not, when do you expect to begin impacting
Miguel Galuccio: And the second one, over the last four years, you've been increasing your tracking and transportation while all the valve projects is underway. If there are any delays or any additional delays in the other valve projects or eventually in the Vaca Muerta sewer projects, to what extent could track any capacity to expand?
Marina Mertens: And the second one, over the last four years, you've been increasing your tracking transportation while all the VAL project is underway.
Speaker Change: If there are any delays or any additional delays in the Old El Val project or eventually in the Vaca Muerta Sur project, to what extent could tracking capacity be expanded?
Miguel Galuccio: Marina, good question. Look at in terms of the equipment and in terms of the ferric; we are drilling with a ferric since Q1 this year. The only thing that you will see that in the third quarter, most likely in October, we will change one of those rigs with a new rig that is a state of the rig coming from Houston. So, it should not impact our ability to deliver what we have to deliver, which has exchange rigs. And the fraxec will probably come toward end of the year.
Miguel Matias Galuccio: Thank you, Marina. A good question. Look, in terms of the equipment and in terms of the third rig, we have been drilling with a third rig since Q1 this year. The only thing that you will see is that in the third quarter, most likely in October, we will replace one of those rigs with a new rig that is a state-of-the-art rig coming from Houston. So it should not impact our ability to deliver what we have to deliver. We just exchange rigs.
Speaker Change: Thank you Marina. Good question. Look at, in terms of the equipment,
Speaker Change: and in terms of the third week.
Speaker Change: We are drilling with a third rig since Q1 this year. The only thing that you will see that in the third quarter, most likely in October ,
Speaker Change: We will change one of those rigs with a new rig that is a state-of-the-art rig coming from Houston.
Speaker Change: So, it should not impact...
Speaker Change: Our ability to deliver what we have to deliver, we just exchange rigs. And the FRACSEC will probably come toward the end of the year.
Miguel Matias Galuccio: And FRACSEC will probably come toward the end of the year. In terms of a potential delay in DelVal, Look, I think we are, first of all, I would say that we are not expecting a delay. As we get closer to the date of finalization, we have better visibility on when all the value is going to be delivered. Nevertheless, when you look at our capacity today with all DelVal, it is around 92,000 barrels per day.
Miguel Galuccio: In terms of the potential delay of the valve, or look at I think we are, first of all, I will say that we are expecting a delay. As we get closer to the date of finalization, we have a better visibility on one of the valve is going to be delivered. Nevertheless, when you look at our capacity today with all the valves, it's around 92,000 barrels per day. This is the capacity that we have to have equate. This is composed of 43,000 that we have from the existing Pyligno Holdel valve. We are exporting today 7,200 barrels of oil per day to Chile, but that can be expanded in Q3, probably to 9,000, and the capacity, the total capacity is 12,000.
Speaker Change: In terms of a potential delay of DelVal,
Speaker Change: I think we are, first of all, I would say that we are not expecting a delay. As we get closer to the date of finalization, we have better visibility on when all the value is going to be delivered. Nevertheless,
Speaker Change: When you look at our capacity today without Old El Val, it's around 92,000 barrels per day. This is the capacity that we have to evacuate. This is composed of 43,000 that we have from the existing pipeline of Old El Val.
Miguel Matias Galuccio: This is the capacity that we have to evacuate. This is composed of 43,000 that we have from the existing pipeline of Oil del Val. We are exporting today 7,200 barrels of oil per day to Chile, but that can be expanded in Q3 probably to 9,000, and the capacity, the total capacity is 12,000. And as we said, our new tracking capacity is 30,000 barrels per day, from which, as I mentioned before, in Q3, we probably used 13,000 of that. So, with additional tracking capacity, we are in good shape. In case we have a delay in Q4, we will manage to offload our product.
Speaker Change: We are exporting today 7,200 barrels of oil per day to Chile, but that can be expanded in Q3 probably to 9,000, and the total capacity is 12,000.
Miguel Galuccio: And our new tracking capacity is 30,000 barrels of oil per day, from which, as I mentioned before, in Q3, we probably use 13,000, 13,000 of that. So, with additional tracking capacity, we are in good shape. In case we have a delay on the valve in Q4, we will manage to offload our production.
Speaker Change: And our new tracking capacity is 30,000 barrels per day.
Speaker Change: from which, as I mentioned before, in Q3 we probably used 137,000 of that.
Speaker Change: So, with additional tracking capacity, we are in good shape. In case we have a delay on the loading Q4, we will manage to offload our production.
Marina Mertens: Thank you very much.
Andrés Carolina: You're welcome, right now. One moment for our next question. Our next question of offline of Andrés, Carolina, from City, Elan is open.
Speaker Change: Thank you very much.
Operator: One moment for our next question. Our next question comes from Andres Cardona from Citi. Your line is open.
Speaker Change: You're welcome, Marina.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from Andres Cardona from Citi. Your line is open.
Andrés Carolina: Hi, good morning, everyone. Congratulations on the execution of the program. I have two questions.
Andres Cardona: Hi, good morning, everyone. Congratulations on the execution of the program.
Speaker Change: Hi, good morning everyone. Congratulations on the execution of the program.
Andres Cardona: I have two questions. The very first one is, given the new capacity that you have for drilling and fracking, how do you imagine the time allocation of this capacity to the different asset blocks that you have? And the second one is, there was an increase of some $0.20 in the lifting cost. I know it's in line with the guidance, but I just wanted to understand what drives the delta between the first and the second quarter.
Miguel Galuccio: The very first one is, given the new capacity that you have on drilling and tracking, how do you imagine the time allocation of this capacity to into the different asset blocks that you have? And the second one is, there was an increase of some 20 cents on the lifting cost. I know you're in line with the guidance, but I just wanted to understand what drives the delta between the first and the second quarter. Thank you.
Speaker Change: I have two questions. The very first one is, given the new capacity that you have on drilling and fracking, how do you imagine the time allocation of this capacity to the different asset blocks that you have?
Speaker Change: And the second one is, there was an increase of some 20 cents on the lifting cost. I know it's in line with the guidance, but I just wanted to understand what drives the delta between the first and the second quarter. Thank you.
Miguel Matias Galuccio: Thank you.
Miguel Galuccio: Thank you, Andrés, for your question. So, I mean, in terms of priorities on the development and the new equipment and so on, still the same is our development hub is at the base of the Paloeste and is at the base of the Paloeste and as well is our federal. This is where we are going to concentrate our activity. As you know, we have a deep portfolio there of 1,000 wells with a drill summary of those 30 room for us. And we will continue on what we have our activity there.
Miguel Matias Galuccio: Thank you, Andres, for your question. So, I mean, in terms of priorities for development, new equipment, and so on, it's still the same. It's our development hub, it's Bajada del Palo Este and, as well, it's Agua Federal. This is where we are going to concentrate our activity.
Speaker Change: Thank you, Andres, for your question. So, I mean, in terms of priorities on the development, the new equipment and so on, it's still the same as our development hub.
Speaker Change: and the descent from the West Pole to Madhubali and Saguada Federal.
Miguel Matias Galuccio: As you know, we have a deep portfolio there of thousands of wells; we have drilled hundreds of those, so there is plenty of room for us, and we will continue allocating our activity there. When it comes to lifting costs, in Q2, we recorded 4.5. And basically, I would say two reasons, the 4.5. One, we spend – we have to spend money on gathering, processing, compression, and power generation to accommodate the current production and future production growth. We have to be ahead.
Speaker Change: This is where we are going to concentrate our activity. As you know, we have a deep portfolio there of 1,000 wells. We have drilled a hundred of those. So, plenty of room for us, and we will continue allocating our activity there.
Miguel Galuccio: We come to listing costs Q2, we record 4.5, and basically I would say two reasons, the 4.5. One, we spend money in gathering, processing, compression, and power generation to accommodate the current production and the future production growth. We have to be ahead; usually, all those projects you have to follow it in order to accommodate the production growth. The second part of the listing cost was cost pressure driven by flat effects and pest inflation. We are seeing a bit of a headwind in OPEX; the pest appreciation was 12% in real term between Q1 and Q2. That is approximately $2 million of sequential lifting costs increase that basically came from that trend.
Speaker Change: Welcome to Listing Costs, Q2 we record 4.5
Speaker Change: And basically, I would say two reasons, the 4.5.
Speaker Change: One, we have to spend money in gathering, processing, compression, power generation to accommodate.
Speaker Change: the current production and the future production growth. We have to be ahead, usually all those projects you have to front load it in order to accommodate the production growth.
Miguel Matias Galuccio: Usually, all those projects you have to front load in order to accommodate production growth. The second part of the listing costs was cost pressure driven by flood effects and peso inflation. We are seeing a bit of a headwind in OPEX. The peso appreciation was 12% in real terms between Q1 and Q2. That is approximately $2 million of sequential lifting cost increase that basically came from that trend. No much reading or listing cost. We continue doing a very good job, and we are not going to change our guidance for this.
Speaker Change: The second part of the listing cost was cost pressure driven by flood effects and peso inflation.
Speaker Change: We are seeing a bit of a headwind in OPEX. The peso appreciation was 12% in real term between Q1 and Q2. That is approximately $2 million of sequential lifting cost increase that basically came from that trend.
Miguel Galuccio: No much freezing or lifting costs; we continue doing a very good job and we are not going to change our guidance for this year.
Speaker Change: No much reading or listening course, we continue doing a very good job and we are not going to change our guidance for this year.
Miguel Galuccio: Thank you, Miguel.
Operator: Thank you. And I'm not showing any further questions in the kill.
Speaker Change: Thank you, Miguel.
Miguel Matias Galuccio: And I'm not showing any further questions in the queue. I would now like to turn the call back over to Miguel Galuccio for any closing remarks.
Miguel Galuccio: I would like to try and call back over to Miguel Galuccio for any closure marks. Well, guys, ladies, thank you very much for the questions. It has been a very good quarter to us. We expect to continue delivering on the promise.
Speaker Change: And I'm not showing any further questions in the queue, I would now like to turn the call back over to Miguel Galuccio for any closing remarks.
Miguel Matias Galuccio: Well, guys and ladies, thank you very much for the questions; it has been a very good quarter for us. We expect to continue delivering on the promise. Thank you very much for your participation, and have a good day.
Miguel Matias Galuccio: Well guys and ladies, thank you very much for the questions. It has been a very good quarter to us. We expect to continue delivering on the promise. Thank you very much for your participation and have a good day.
Operator: Thank you very much for your participation. I have a good day.
Operator: Thank you for your participation in today's conference. This doesn't include the program.
Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.
Operator: You may now disconnect everyone. Have a great day.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone have a great day.