Q3 2024 Vista Energy SAB de CV Earnings Call
Of 11%.
Natural gas production increased 16% year over year, and 12% quarter over quarter.
Growth was driven by associated Guy had stream coming from our bulk commodity shallowly ways.
During the third quarter of 2024, we continue to make solid progress in the execution of our annual award program.
We connected three pad during Q3.
Two <unk> by the way on one in Bajada del Palo Este for a total of 12 new wells.
We completed an additional pad in bajada del Palo Este and late September which led to the timing of three west earlier this month.
We therefore connected 40, new wells year to date, leaving us on track to deliver on our activity guidance, which is between $15 54, new wells for the year.
Based on the execution of our new well activity plan. Our model shows that production is forecast to expand again by double digit in Q4 to 85000 Boe's per day.
We also reiterate our guidance of 60% to 70000 Boe's per day on average for the full year nothing that we will likely be on the upper end of this range.
In Q3, 2024 total revenues were boosted.
$462 million.
A 53% increase year over year, and 70% above the previous quarter driven by strong production growth.
Realized oil prices were $68 $4 per barrel and avid.
Up 1% on an annual basis.
On a sequential basis oil prices were 5% lower driven by softer international prices.
Domestic realization prices were $67 $8 per barrel net of stacking costs and including volume sold again for clarity.
Realization prices were $68 $9 per barrel.
During Q3, we continued to execute our export oriented strategy.
With an increasing amount of oil sold in international markets driven by the production growth.
With $43 5 million barrel of oil during the quarter, 57% above the previous year.
Additionally, 1 million barrels of oil were sold in the domestic market at export parity prices.
Therefore, combining the sales to international buyers and domestic bias painter poor quality, 72% of our total sales were solid export parity prices.
Lifting cost was 31 $6 million during the quarter, implying a lifting cost per Boe of $4 $7.
20 to 25 guidance.
Our plan is forecast to either more than 40% growth in production and adjusted EBITDA compared to 2024.
Before we move to Q&A I would like to thank our shareholders for their continued support and congratulate the entire <unk> team for their outstanding performance.
Operator, please open the line for Q&A.
Speaker Change: Thank you.
Speaker Change: As a reminder to ask a question. Please press star one to one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one one again.
Speaker Change: Please stand by while we compile the Q&A roster.
Our first question comes from the line of these centers falanga from Bradesco B B I.
Thiago Batista: Hi, good morning, everyone. Thanks for Duluth them through all of these things you've won.
Speaker Change: My question is the following we still had a similar level of a similar level of well drillings.
Speaker Change: Completions in the third quarter versus the second quarter of 2024, but we saw quite a sharp horizon the topics.
Speaker Change: Can we assume that you are drilling longer laterals with more frac stages.
Speaker Change: And if yes, what is the expected the peak production for these kind of wells that you drilled in the third quarter versus the ones that you were drilling before thank you very much.
Speaker Change: Pardon me speakers. Please check your mute button you might be muted on your side.
Speaker Change: Hi, Vincent.
Speaker Change: <unk>.
Speaker Change: Yes, yes, alright, so yes, you're right I mean, when you look at it though that got back in Q3 was.
Speaker Change: Silicon this $89 million compared with $3 46 in Q2 with similar numbers of wood.
Speaker Change: When you look at the breakdown too can be a dominion, we're leading in completion in Q3.
Speaker Change: Bear with Q2 of 267.
Speaker Change: And as you pointed out the main different ink up it came from the <unk>.
Speaker Change: The lateral length of our early Sunday was so within.
Speaker Change: Yes longer lot data's between 3300, 200 meter compared with 2018 they need data.
Speaker Change: Cost of those with golf.
Speaker Change: <unk> from $14 five in the 2800 to a range of 16% to 17 and dependent of delaying it needs to be <unk> 3200 meters.
Speaker Change: On the main different doesn't come from Israel and incentives it come from the number of stages of completion.
Speaker Change: We usually move from.
Speaker Change: From 47 in 2000 and coverage of 50 to 55 in our cities cities are simpler.
Speaker Change: A link.
Speaker Change: The decision of D. C is a super base on a subset of fee. So a subset if you did even on and of course EUR. So with these words are different we moved from one 5 million barrel of total U R.
Speaker Change: Two around probably 1.8.
Speaker Change: So that is the main different then yes, I mean, when you look at NPV Wise every day and that will have a chance to go a bit longer on the lateral.
Speaker Change: B Y MPV why pay offs.
Speaker Change: So that's the main reason of what you have seen.
Speaker Change: The 20 million $23 million capex different between.
Speaker Change: Drilling and completion and between Q3 and Youtube.
Speaker Change: Great that's very clear thank you very much welcome.
Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of Tussle Vasconcelos with UBS.
Speaker Change: Jaime Gail Hi, everyone. Thanks for taking my question here.
Speaker Change: Miguel you said that the company delivered 51, new wells in the past 12 months and Thats actually prior to the full usage of the Nuc, Amit chef and the guidance ahead is a little bit above that figures, but I think the question is what would be the full potential.
Speaker Change: BMO, how many wells can the company deliver maybe on a best case scenario.
Speaker Change: What would be the main bottlenecks in the main risks for search accelerate the development plan.
Speaker Change: My questions. Thank you.
Speaker Change: So for your question, it's a very good question so.
Speaker Change:
Speaker Change: Maybe the best way to look at this is we will look at 2024. When you look at 2024, we will end up tightening between 50 and 54.
Speaker Change: Was.
And that execution.
Speaker Change: Yeah.
Speaker Change: We'd be done with treated in weeks.
Speaker Change: For the full year in.
Speaker Change: Independently, we are replacing the one rig now redone their cover ride that this unusually and Rick when you look at what we have been drilling with drilling rig full year on one product fit.
Speaker Change: Full year.
Speaker Change: Then we use on this.
Speaker Change: Both Brexit.
Speaker Change: I believe twice.
Speaker Change: A year.
Speaker Change: So with that we will achieve between 50, maybe 54 Italians.
Speaker Change: When you look at what we guide for 2025, we guide between 50 to 60.
Speaker Change: <unk> three drilling rig and the main difference that we would have access to a through full frac said for the full year.
Speaker Change: So when you talk about potential really distract said give us their full potential to go beyond this.
Speaker Change: These 50 to 60 Wednesday.
Speaker Change: Uh huh.
Speaker Change:
Speaker Change: Way to notice here that if you want to add.
Speaker Change: Another drilling rig affordably and rig because the conditions out there are the context allow us to do so.
Speaker Change: Getting new rates in the country or getting access to a rig within the country is not is not difficult.
Speaker Change: Getting a new frac fleets, having that optionality red in the country any moment that is what is difficult is what we were staffing time, Inc.
Speaker Change: In case, we wanted to go farther to the safety of the teacher, whether we have guidance.
Speaker Change: That said I've said back to your question is really what gave us flexibility optionality and potential.
Speaker Change: Thank you. Thank you.
Speaker Change: Thank you one moment for our next question.
Our next question comes from the line of Bruno Montanari from Morgan Stanley.
Bruno Montanari: Good morning, Miguel Olea and team thanks for taking my question.
So when we think about your secured evacuation capacity, which I believe you mentioned 124000 barrels per day.
Bruno Montanari: Into next year.
Bruno Montanari: Can you give us a sense of how we should expect or production with whole quarterly into 2025 and perhaps.
Bruno Montanari: Getting closer to that level.
Of around 120000 barrels per day, thank you very much.
Hi, Bruno Thanks for your question, Yeah, we will finish this year with an average of 85000 barrels per day in Q4 on a we are guiding for $2025 95 to 100. So it's a it's a super incrementally freezer, we outline.
Bruno Montanari: In our presentation, 40% increase in production, 40% increase in EBITDA.
Bruno Montanari: Hum.
Bruno Montanari: When you if we wanted to basically finish between 95 <unk> hundred for next year that means that we will have an exit rate in 2025 about 100000 barrel per day for sure.
Bruno Montanari: We were happy about question on capacity in 2025, or 124000 barrels per day that will be composed of 75000 on the violin 44 that we already have the city one that we will add.
Bruno Montanari: <unk> and order timing Chilean Odessa it would've been 12000, so that you're 87000, and we can bring capacity trucking capacity for 30000 barrel per day.
Bruno Montanari: So that make our 124000 total capacity that we have income for 2025.
Bruno Montanari: The reality I believe.
Bruno Montanari: Leave there's going to be a third of capacity in a little while I mean beyond the 31000 that we are that we will use and we have access to.
Bruno Montanari: For me when you look at the capacity, they're going to be put in place in Q1, they most likely will be bad capacity. So.
Bruno Montanari: Even though we don't cover 35 37000 barrels per day and tracking.
It's unlikely that we will use that full capacity in 2025.
Bruno Montanari: Okay.
Speaker Change: That's clear thank you.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of Martino Mertens from Latin Securities.
Martino Mertens: Hi, Good morning, Thanks for taking my question. So in the third quarter, Brent prices decline and local prices remain quite stable.
Martino Mertens: The gap between domestic and international prices narrow significantly how do you foresee this dynamic evolving and in particular.
Martino Mertens: What is your outlook for the price of the local already compared to export <unk> in the upcoming quarters.
Speaker Change: From yes, you're right I mean, when you look at Brent prices Q2 was around 85 Q3 78.
Speaker Change: And we are thinking that Q4 would be in similar range or to what we had in Q3.
Speaker Change: When you do the realized price of our export with 78 or so.
Speaker Change: 78.
Speaker Change: $8 per barrel. It was 68 and when you look at when you see the prices of local.
Speaker Change: In Q3 was 68.
Speaker Change: Very similar.
Speaker Change: We feel that we should see.
Speaker Change: We should not see a change in that dynamic going forward that we will look at the assembly in Miami and that is based in the new law.
Speaker Change: That call for no pricing intervention. So we are optimistic that the regular mentation of this new law will support that conversion.
Speaker Change: Local pricing to international prices so are we.
Speaker Change: We believe that same devalue will continue in Q4, we don't see a major change.
Speaker Change: Okay. Thank you very much.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of Danielle Guadiana from BTG backed one.
Danielle Guadiana: Hi, good morning.
Danielle Guadiana: Miguel Alejandro first of all congrats for the results I would like to touch on inorganic growth I need <unk> SaaS I wanted some magical share with us and navigate on this whole process of Exxon.
Danielle Guadiana: Understanding that Gordon Telecom media is that these processes now a three horse race and I wanted to know if you are in this race.
Danielle Guadiana: You decided to opt out.
Danielle Guadiana: And have you already stealing his race and again I would like to know if you can share with US where are their main merits you have identified from exxon's assets in Argentina.
Danielle Guadiana: Okay.
Danielle Guadiana: Hi, Danielle thank.
Speaker Change: Thank you for the question that I cannot answer, but I will try to do my best to give you some color. So first of all.
Speaker Change: Yes, we continue engage in exon that us as I said the previous quarter was it a competitive process that we.
Speaker Change: We were a Canadian producer Bay, and we continue to be in the race.
Speaker Change: And of course as I said also in the last quarter.
Speaker Change: We will do whatever to make business sense, and if we come to us I mean, it would be welcome.
Speaker Change: Not.
Speaker Change: Move on and we have enough acreage in our costs.
Speaker Change: Two continued with the development of our plans are our future plan.
Speaker Change: Uh huh.
Speaker Change: Excellent assets are good assets.
Speaker Change: And that's why we are we are there.
Speaker Change: He gave us probably a year and I mean, we have two <unk> to 200000 acreage.
Speaker Change: Uh huh.
Speaker Change: We have around 1300, well location from which we have drilled.
Speaker Change: One country or any one country or any of those.
But also we have assets in the north and that will probably allow us to create a new developments have been ignored.
Speaker Change: With Mauro.
Speaker Change: The materiality to the one that we have today, so that is probably the strategic view beyond <unk>.
Speaker Change: Behind that now.
Speaker Change: Again, I mean is building optionality for the future.
Speaker Change: Is is we have enough upside in our own portfolio today to continue with our overall plan, having having a development have been and will add some CTO Vista.
Speaker Change: Hope I gave you some color.
Speaker Change: I cannot say much more than that.
Speaker Change: Thats very good thank you again.
Speaker Change: Yes.
Speaker Change: Thank you one moment for our next question.
Speaker Change: Our next question comes from the line of low notable margolis from Bank of America.
Speaker Change: Well hi, everyone. Thanks for taking my question here.
Speaker Change: Well.
Speaker Change: There is a very interesting exhibits <unk> corp.
Speaker Change: <unk> presentation that I would like to.
Speaker Change: Export explore a little more.
Speaker Change: Corporates presentational cannot there one from this quarter on the slide 11, there's an exhibit showcasing potential.
Speaker Change: Upsides for different landing zones in different blocks right.
Speaker Change: The message I get from <unk> is that there could be.
Speaker Change: Upside in terms of Robinson story right.
Speaker Change: So my question is.
Speaker Change: When do you guys expect to explore or tried to develop the middle <unk> zone of PPO, Delaware carbonated soft the pure in Agua and.
Speaker Change: And also their organic linzo enough BP.
Any color here or.
<unk> on your expectation would be great. Thank you.
Speaker Change: I know none of those thank you for that question I would love to have my tips geology is next to me now to answer that properly, but I will do my best So yes.
Speaker Change: As you pointed out.
Speaker Change: <unk> been testing.
Speaker Change: M D.
Speaker Change: <unk> assumes indifferent field so <unk> for example.
Speaker Change: With the lower kind of one eight we have not yet.
Speaker Change: One eight in a row and I love It I would say that neither in carbonate.
Speaker Change: In <unk>, we have a presence of organic.
Speaker Change: So also I mean, it's something that we would oh, we have an upside for the future.
Speaker Change: This is neither corporate presentation. Thus a show is.
Speaker Change: The area distribution of all those.
Speaker Change: Songs.
Speaker Change: For example, when you look at BP.
Speaker Change: Organic is not present in the block. So they are besides testing the productivity of the sone.
Speaker Change: In some of those things we need to this where those songs are really are more out of their borders.
Speaker Change:
Speaker Change: As you will see in the in the corporate presentation week data.
Speaker Change: Two days.
Speaker Change: Those songs little by little.
Speaker Change: And this what you just pointed out I mean, when you do too.
Speaker Change: Independence American companies on the very thing that people that compare the rock of a commodity with Permian. This is one of the main theme that set us apart.
Speaker Change: And for many of them is one of the thing that may think that come with that even though today have better productivity and Permian has even more upside potential.
Speaker Change: Now, saying all that.
Speaker Change: 2025 for us continued to be.
Speaker Change: A year of full development so.
Speaker Change: We'll see that we will definitely have an opportunity some of those songs, but we will not come with a plan on how to develop those Sony in a different way.
Speaker Change: And in the next year, but yes as you pointed out we will continue assessing those loans because we believe that that will add future reserve to our future development.
Speaker Change: Thank you all very clear.
Speaker Change: Thank you one moment for our next question.
Speaker Change: Our next question comes from the line of Ignacio <unk> from <unk> BBA.
Speaker Change: Hi, everyone.
Speaker Change: Good morning, congratulations on the results.
Speaker Change: Yeah.
Speaker Change: No. My question was about midstream capacity, but maybe could you give us any color on the long term contracted capacity.
Speaker Change: Is there any bowls are above the plan.
Speaker Change: And I would like to understand a bit better.
Speaker Change: Thanks.
Speaker Change: Okay Ignacio things for a question.
Speaker Change: So when come to.
Speaker Change: Additional capacity I mean, the first thing that we are.
Speaker Change: Working on we expect you to have is OLED value function.
Speaker Change: So we expect that full capacity of the Vista share to be in play between February and April of 2025, this or it will be additional city 1000 barrels of oil per day.
Speaker Change: More long term.
Speaker Change: It's become more of a sort of this is a process that we do Ips on other optima producing of debating.
Speaker Change: We are actively participating with equity and in debt.
Speaker Change: In that concept and the building of that by line.
Speaker Change: Today, we are working in the commercial finance financing, a shareholders' agreement or cloud.
We come into place.
Speaker Change: I think the low work has been done in that front.
Speaker Change: And we are confident that this project will take place.
Speaker Change: We have not yet defined our working interest on that one, but I think I mean, I can probably said that it will not be less than 10% of or the stage, one and the phase one full capacity you're actually seeing this around 400000 barrel oil per day. So that is where we are awarded.
Speaker Change: We are looking and we are engaging in in long term capacity, but for now of course, our eyes are on the in the ball on the bullies all the value function that we expect to have a Q1 next year.
Speaker Change: Sure. Thanks.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Okay.
Speaker Change: Our next question comes from the line of Andres Cardona from Citi.
Hi, good morning.
Speaker Change: Although highly.
Speaker Change: <unk> seen the results.
Speaker Change: Yes.
Speaker Change: More short term question.
The name.
Speaker Change: Sure Kian activity for the fourth quarter. If you have any estimate guidance you can provide.
Speaker Change: Would be very helpful.
Speaker Change: Thank you.
Speaker Change: Hi, Andreas.
Speaker Change: King.
Speaker Change: Yes look let me look the number.
Speaker Change: <unk>.
Speaker Change: So in terms of volume tracking we will we will finish Q3.
Speaker Change: With the total volume of around 12003.
Speaker Change: Butter loads per day.
Speaker Change: When you look at going forward, we are forecasting for Q4 of course is an increase but we will increase volumes.
Speaker Change: Although it will not be online so we're thinking that we will.
Speaker Change: Tracking around 23000 barrel per day average in Q4 of.
Speaker Change: Of course that number will come down in Q1, 2025, depending dependent depending on when exactly all the light coming through mutual line, but.
Speaker Change: I mean, you could expect that Q1 will be.
Speaker Change: Between the middle of what we did in Q3 and Q4.
Speaker Change: In demonstrating.
Speaker Change: Okay.
Speaker Change: Thank you again.
Speaker Change: We're working on this.
Speaker Change: Thank you.
One moment for our next question.
Speaker Change: Our next question comes from the line of Andre Correa from J P. Morgan.
Andre Correa: Hi, Thank you a lot of my questions were already asked so mrv's Quinn here.
Andre Correa: Lifting costs increase and acquire despite irrelevant prediction of ramp up.
Andre Correa: So why does the expectations like and drivers going forward, how should that how should the company manage the increase.
Andre Correa: Yeah.
Speaker Change: Yes, I think you're going to get for your question, Yes, I mean.
Speaker Change: Lifting costs increased few cents.
Speaker Change: In Q3.
Speaker Change: And that basically increase is the continued investment that we're doing in gathering and processing and compression our generator power generation.
Speaker Change: To accommodate.
Speaker Change: The production growth in the future production growth so when come to accommodate production grow on future production growth, even though the main teekay night it is capex.
Speaker Change: So how do you accommodate opex sanco.
Speaker Change: So we continue.
Speaker Change: With our guidance of $45 per barrel for the year in demo they average lifting cost for 2024.
Speaker Change: <unk>.
Speaker Change: Going forward with increased production and recovery in lifting cost.
Main component of because I.
Speaker Change: I mean, we are we are very positive.
Speaker Change: With a number going forward.
Speaker Change: And we see a room for even improving that for.
Speaker Change: Fight that we have.
Speaker Change: So no not one set on the lifting costs alone.
Speaker Change: Okay. Thank you Youre welcome.
Speaker Change:
Speaker Change: Yeah.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of Mattia <unk> got that ROTC from add cap securities.
Speaker Change: Good morning, Mr team congratulations on the Q3 numbers on the updated guidance.
Speaker Change: My question goes in the line of.
Speaker Change: Recent oil price volatility.
Speaker Change: Is the company considering implementing a hedging strategy for realized oil prices if regulation allows it or how would you manage these in the future. Thanks.
Speaker Change: Thanks.
Speaker Change: Hi, Thanks for the question.
Speaker Change: Yes first of all as you know I mean regulation that allow today.
Speaker Change: Two.
Speaker Change: Our hedging policy or hedging program since we cannot access to golar for hedging.
Speaker Change: We see ourselves as a low cost operator.
Speaker Change: And we are a very unlevered <unk>.
No measure their maturity in front of us.
Speaker Change: So.
Speaker Change:
Speaker Change: We like to think that our investors today can't hedge down says more efficiently that we can do in the current conditions.
Speaker Change: So again I mean, we don't have a hedging program is very unlikely that we were having in next few EDA kitchen program.
Speaker Change: If conditions change at some point of time in that.
Speaker Change: Yeah.
Speaker Change: Makes sense.
Speaker Change: Well I mean, we will do something but it's not something that we have today in our plan and we are looking at.
Speaker Change: Alright, thank you so much.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of Alejandro Demichelis from Jefferies.
Alejandro DeMichelis: Yes. Good morning, guys. Thank you very much for taking my question, Anthony I would like to understand a bit better your guidance 2025 on how much flexibility you have in that.
Alejandro DeMichelis: You said that you should have all those all.
Alejandro DeMichelis: The expansion, thereby April so that means you should have.
Alejandro DeMichelis: 124000 barrels a day of capacity for at least.
Alejandro DeMichelis: Yes.
Alejandro DeMichelis: So.
Speaker Change: If there is any capacity in the pipeline how quickly can you access that and do you have enough flex.
Speaker Change: Flexibility in your work program to further expand your production.
Speaker Change: Thanks Ali.
Speaker Change: Yes, definitely I mean, you pointed out we would have.
Speaker Change: Different to what we experienced in 2023, we will go to 2025, most likely having almost likely will have a spare capacity even struck kino as better capacity in all while the expansion of capacity will be there.
Speaker Change:
Speaker Change: The other thing that we have and we have proved this year on.
Speaker Change: We will continue to grow and I think going into Q4.
Speaker Change: Is the ability that we have to ramp up and execute I mean.
Speaker Change: We are today.
Speaker Change: Quarterly to discuss it.
Speaker Change: Increased production that we have in Q3, but that has been an amazing achievement and something that we have proof to our cell that we're a couple more to do.
Speaker Change: On a team that is another very important point going forward also a second frac <unk> income.
Speaker Change: And as I've said before that give us optionality to grow because.
Speaker Change: When the opportunity come you have to have the tools to make it happen in this second frac savings are very important.
Speaker Change: We want to go beyond what we have guided in 2025, we will need probably an additional.
Speaker Change: Rick affordability, Rick now, saying on that that will all depend.
Speaker Change: On the context.
Speaker Change: That.
Speaker Change: 2025 bidding, particularly.
Speaker Change: Pricing.
Speaker Change: Of.
Speaker Change: Sure.
Speaker Change: Internationally.
Speaker Change: So if.
Speaker Change: The price is.
Speaker Change: To better equate to the one that we plan, yes, we have flexibility.
Speaker Change: To grow.
Speaker Change:
Speaker Change: We said that in the next three years, we will have.
Speaker Change: Generating around $1 billion of cash we are using this cash.
Speaker Change: DCF.
Speaker Change: Partially to boost that growth.
Speaker Change:
Speaker Change: 2025, we will do exactly the same thing but of course, the context to be there so price of oil will play a role.
Speaker Change: For that we have the risk.
Speaker Change: Okay, great. Thank you.
Speaker Change: Welcome.
Speaker Change: Thank you.
Speaker Change: I'd now like to turn the conference back to <unk> for closing remarks.
Speaker Change: Well. Thank you really guys. Thank you very much guys for the support for the question for the continuous interest in Vista and again I would like to thank you the people in the field that made that possible.
Speaker Change: This plan internally call moonshot for us.
Speaker Change: Reflect or shows.
Speaker Change: How different we saw.
Speaker Change: Was to go through this ramp up of production. So all credit to them. Thank you very much on behalf of a very good day.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: [music].
Speaker Change: [music].
Speaker Change: Good day and thank you for standing by welcome to Vista third quarter 2024 earnings webcast and conference call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question.
Speaker Change: During the session you will need to press star one one on your telephone.
Speaker Change: You will then hear an automated message advising your hand is raised to withdraw your question. Please press star one one again please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today Alejandro children that calls. Please go ahead.
Hi, Good morning, everyone. We are happy to welcome you to <unk> third quarter of two has opened 24 results conference call.
Speaker Change: I am here with me.
Speaker Change: Mr Chairman and CEO Pablo without beautiful.
Speaker Change: So one that Obi CLO 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.
Speaker Change: Our financial figures are stated in U S dollars and in accordance with international financial reporting standards I got for it.
Speaker Change: 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 <unk> measure can be found in the earnings release that we used with yesterday. Please check our website for further information.
Speaker Change: Company is associate and only mobile starting the capital about Yodlee organized under the laws of Mexico registering there was something that you've kind of already in the New York Stock Exchange IP goes out of beta in there was that make you kind of evaluate it and be a USD in the New York Stock Exchange I will now turn the call over to Miguel.
Miguel: Thanks, Kelly good morning, everyone and welcome to this earnings call.
Miguel: The third quarter of 2020, Florida was marked by strong operational and financial performance.
Miguel: Even by new well activity now what developments happened, but come out of that.
Miguel: Total production was 72 eight <unk> per day.
Miguel: An increase of 47% year over year, and 12% quarter over quarter.
Miguel: Oil production was 63 5000 barrels per day.
Miguel: 53% about the same quarter of last year, and 11% up compared to the previous quarter.
Miguel: Total revenues during the quarter, we had a $462 million.
Miguel: A 53% increase compared to the same quarter of last year.
Miguel: Lifting cost was $4 $7 32.
Miguel: 2% down year over year.
Miguel: Capital expenditure was $369 million.
Miguel: Mainly driven by new wells drill 15 wells completed during the quarter was $63 million in development facility.
Miguel: Adjusted EBITDA was $310 million.
Miguel: 37% of all year over year, driven by robust revenue growth and lower lifting cost per <unk>.
Miguel: Adjusted net income was 53 million.
Miguel: Implying a quarterly adjusted EPS of <unk> $6 per share.
Miguel: Free cash flow was $74 million.
Miguel: And you guys did during the quarter driven by higher cash in investing activities as we ramp up the capital expenditure in our development to drive growth.
Miguel: <unk> ratio at quarter end was a solid Cedar point 65 times adjusted EBITDA.
Miguel: I will now deep dive into our main operational and financial metrics of the quarter.
Miguel: Total production during the quarter was 72, eight <unk> per day, our highest quarter ever.
Miguel: On a sequential basis, the actual growth was 12% driven by the connection of 'twenty three ways between May and September.
Miguel: We continue to see solid productivity with new wells performing in line with our type curve.
Miguel: Total production was 47% higher on an annual basis, reflecting the ramp up of our new well activity.
Miguel: <unk> 51, new wells during the last 12 months compared to the 31 during 2023.
Miguel: Oil production was 63 5000 barrels per day, implying an in their annual growth of 53%.
Miguel: Sequential growth of 11%.
Miguel: Natural gas production increased 16% year over year, and 12% quarter over quarter.
Miguel: Growth was driven by associated Guy Dream coming for an hour about commoditization always.
Miguel: During the third quarter of 2024.
Miguel: We continue to make solid progress in the execution of our annual award program.
Miguel: We connected three pad during Q3 two.
Miguel: <unk> by the way on one <unk> by the way for.
Miguel: For the total of 12 new wells.
Miguel: We completed an additional pad in bajada, Palo Este and late September which led to be dying of three words earlier this month.
Miguel: We therefore are connected 40, new with year to date, leaving us on track to deliver on our activity guidance, which is between 50 and 50 for you with for the year.
Miguel: Based on the execution of our new well activity plan, our more than shows that production is forecast to expand again by double digits in Q4 to 85000 Boe's per day.
Miguel: We also rate data our guidance of <unk> hundred 70000, Boe's per day on average for the full year, noting that we will likely be on the upper end of this range.
Miguel: In Q3, 2024 total revenues were boosted to $462 million.
Miguel: At 53% increase year over year, and 70% above the previous quarter driven by strong production growth.
Miguel: Realized oil prices were $68 $4, rather than an average.
Miguel: Up 1% on in their annual basis.
Miguel: On a sequential basis oil prices were 5% lower driven by softer international prices.
Miguel: Domestic realization prices were $67 $8 per barrel net of stacking costs and including volume solid export parity.
Miguel: Realization prices were $68 $9 fare Bartlett.
During Q3, we continued to execute our export oriented strategy with.
Miguel: With an increase in amount of oil sold in international markets driven by the production growth.
Miguel: With $43 5 million barrel of oil during the quarter, 57% above the previous year.
Miguel: Additionally, 1 million barrels of oil were sold in the domestic market at export parity prices.
Miguel: Therefore, combining the sales to international buyers and domestic buyers pay an export parity.
Miguel: 72% of our total loan sales were sold at competitive prices.
Miguel: Lifting cost was $31 $6 million during the quarter, implying a lifting cost per <unk> of $4 $7.
Miguel: On a unit cost basis, our lifting costs were down 2% in debt annually, reflecting dilution of fixed costs as we continue to ramp up production.
Miguel: The effect was partially offset by inflation in U S dollars.
In a sequential basis lifting cost for the UAE increased 5%.
Miguel: Was driven by higher cost in gathering processing gas compression and power generation to accommodate current production on future growth.
Miguel: Based on our annual award program. Our model shows we are on track to deliver on our guidance of $45 per barrel for the year.
Miguel: Adjusted EBITDA during the quarter was $310 million.
Miguel: A solid increase of 37% year over year.
Miguel: Driven by strong production growth amid a stable prices in lifting cost per <unk>.
Miguel: On a sequential basis adjusted EBITDA increased by 8%.
Miguel: Noteworthy is the fact that on LTM basis, adjusted EBITDA has so but $1 1 billion.
Miguel: Adjusted EBITDA margin was 65% during the quarter.
Miguel: The software in their annual putting reflects a temporary increase in trucking expenses.
Miguel: During Q3, we track.
Miguel: 12000 barrels of oil per day for a total cost of $23 million of which $16 million that were allocated to selling expenses in our income statement seven.
Miguel: $7 million were deducted from our revenue line.
Miguel: During the third quarter, we continue week capex acceleration to support production ramp up.
Miguel: Operating activities cash flow was $255 million.
Miguel: Afflicting, an increase in working capital of $52 million.
Miguel: And then balance payments for the maintaining expansion of $20 million.
Cash flow used in investing activities was $329 million.
Miguel: Reflecting accrued capex of 369 million, partially offset by a $42 million decrease in capex related working capital.
Miguel: Cash flow from financing activities reflect proceeds from borrowings of $143 million.
Miguel: The repurchase of shares for $50 million.
Miguel: The repayment of borrowings for $74 million.
Miguel: As a result free cash flow during the quarter was $74 million negative and cash.
Miguel: And was $256 million.
Miguel: Net leverage ratio stood at a very healthy <unk> 65 times adjusted EBITDA at quarter end.
Miguel: During 2024, we have achieved three very significant milestone to deliver on our profitable growth plan.
Miguel: Presently we have accelerated growth in 2024.
Miguel: Ramping up new well activity and leading to a forecast of 85000 Boe's per day on average in Q4.
Miguel: This will imply more than a 50% increase year over year in that quarter.
Miguel: Additionally.
Miguel: We secure all maintaining capacity of 124000 barrels of oil per day by year end in 2025.
Miguel: And finally, we secured a third of the land rig and a second frac fit under a term contract with Iba capacity to grow further during 2025.
Miguel: Based on these milestones we are updating our 2025 guidance, we forecast total production between 95 and 100000 barrel of oil per day, implying I mean, their annual production growth of more than 40%.
Miguel: This plan is based on 52% to 60, new wells during the year.
Miguel: One one to $1 $3 billion of Capex.
Miguel: This excludes potential investment in Banco <unk> Lange export Telemundo.
Miguel: We forecast.
Miguel: And adjusted EBITDA of between one five and $1 65 billion.
Miguel: Also implying an inter annual growth of more than 40%.
Miguel: Our realized oil price assumption is between 67 and $72 per barrel, implying there Brent.
Miguel: 75% to $80 per barrel.
Miguel: This plan is in line with capital allocation priority is disclosed in our last Investor day.
Miguel: Based on the depth of our short cycle high return oil inventory, we are accelerating our profitable growth plan.
Miguel: We continue to assess the impact that this updated guidance we have on our 2026 forecast as a result, we are withdrawing our 2020 guidance and we are working on a new long term plan to be presented to our investor during 2025.
Miguel: I will now summarize the key takeaways of today's presentation.
Miguel: During Q3, 2024, we recorded strong operational and financial performance.
Miguel: We continue to deliver growth with industry, leading return on capital.
Miguel: Growth was driven by the sharp execution of our annual award program, we have connected with in the quarter and 40 with year to date.
Miguel: Onsite with solid well productivity discuss boosted production revenue and net profit.
Miguel: Based on solid growth during the quarter.
Miguel: <unk>, we are well on track to deliver on our 2024 guidance for activity production lifting cost and adjusted EBITDA.
Miguel: During Q3, we have also may focus on return to shareholders.
Miguel: We executed the second tranche of our share buyback plan for $50 million.
Miguel: This adds up to $100 million of buyback during the year.
Miguel: Finally based on our Capex acceleration during the year and having secured additional capacity in drilling completion.
Miguel: Export infrastructure to continue our growth we have updated our 2025 guidance.
Miguel: Our plan is forecast to even more than 40% growth in production and adjusted EBITDA compared to 2024.
Miguel: 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: Operator, please open the line for Q&A.
Miguel: Thank you.
Speaker Change: As a reminder to ask a question. Please press star one to one on your telephone.
Speaker Change: Wait for your name to be announced.
Withdraw your question. Please press star one one again.
Speaker Change: Please stand by while we compile the Q&A roster.
Our first question comes from the line or the center Falanga from Bradesco <unk>.
Speaker Change: Hi, Good morning, everyone. Thank you Valerie chosen to Altice one.
Speaker Change: My question is the following a restart had a similar level.
Speaker Change: Similar level of well drillings.
Speaker Change: Completions in the third quarter versus the second quarter of 2024, but we saw quite a sharp rise in the topics.
Speaker Change: Can we assume that you are drilling longer laterals with more frac stages.
Speaker Change: And if yes, what is the expected.
Speaker Change: Production for these kind of wells that you drilled in the third quarter versus the ones that you were drilling before thank you very much.
Speaker Change: So yes, you are.
Speaker Change: I mean, when you look at the total Capex in Q3 was.
Speaker Change: $369 million compared with $3 46 in Q2 with similar numbers of wood.
Speaker Change: When you look at the breakdown 280 million were dealing in completion in Q3 compared with Q2 of 267.
Speaker Change: And as you pointed out the main different <unk> came from the lots.
Speaker Change: Lateral length of our early Sunday was so we drill.
Speaker Change: Yes longer lateral is between 3003 country to country meter compared with 2800 meter.
Speaker Change: Cost of those wells.
Speaker Change: Go from $14 five in the 2800 to a range of 16% to 17 and dependent of delaying it at 3000 3200 meters on the main different doesn't come from the drilling and sells it come from the number of stages of completion.
Speaker Change: We usually move from.
Speaker Change: From 47 in 2000 currently 250 to 55 cities small cities are simpler.
Speaker Change: A link.
Speaker Change: The decision of this is a super base on.
Speaker Change: Sub surface, so a subset of facility been on and of course.
Speaker Change: So this was a different we moved from one 5 million barrel of total U R.
Speaker Change: To our own probably $1 eight.
Speaker Change: So that is the main different than years I mean, when you look at NPV Wise every day and that will have a chance to go a bit longer on the lateral.
Speaker Change: <unk> pay.
Speaker Change: Pay offs.
Speaker Change: So thats the main reason of what you have seen.
Speaker Change: The $20 million $23 million Capex difference between.
Speaker Change: Drilling and completion and between Q3 and Youtube.
Speaker Change: Great that's very clear thank you very much welcome.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of parcel Vasconcelos with UBS.
Speaker Change: Jaime Gail Hi, everyone. Thanks for taking my question here.
Speaker Change: Miguel you.
Speaker Change: You said that the company delivered 51, new wells in the past 12 months and Thats actually prior to the full usage of the Nuc Amit.
Speaker Change: And the guidance ahead.
Speaker Change: A little bit above that figures, but I assume the question is what did this throughput being showed loopnet had DMR how many wells can the company deliver maybe on a best case scenario and what would be the main bottlenecks in the main risks for our search accelerated development plan.
Speaker Change: My questions. Thank you.
Speaker Change: So part of your question, it's a very good question. So.
Speaker Change: Maybe the best way to look at this is we look at 2024. When you look at 2024, we will end up tightening between 50 and 54.
Speaker Change: Was.
Speaker Change: And that execution.
Speaker Change: We'll be done with freedom in weeks.
Speaker Change: For the full year.
Speaker Change: Independently we are ripped.
Speaker Change: Place in one rig now rig doesn't come out right that this unusually and Rick when you look at what we have been drilling with drilling rig full year on one product set.
Speaker Change: Full year.
Speaker Change: Then we use.
Speaker Change: Both product set.
Speaker Change: I believe twice.
Speaker Change: A year.
Speaker Change: So we that you had.
Speaker Change: We will achieve between 50, maybe 50, Florida.
And.
Speaker Change: When you look at what we gave for 2025.
Speaker Change: Between 50 to 60.
New times, three drilling rig and the main difference is that we.
Speaker Change: With access to a through full frac set for the full year.
Speaker Change: So when you don't get more potential.
Speaker Change: And really what this drug said give us potential to go beyond this.
Speaker Change: These 50 to 60 wells.
Speaker Change: Uh huh.
Speaker Change: His way through notice here that if you want to add.
Speaker Change: Another drilling rig affordable immune rig because the conditions out there are the context allow us to do so.
Getting the new rigs in the country or getting access to a rig within the country is not is not difficult.
Speaker Change: Getting a new frac fleets, having that optionality red in the country any moment that is what is difficult and is what we were tapping con.
Speaker Change: In case, we wanted to go farther to the 60 or 52, whether we have guidance.
Speaker Change: So that's what I said back to your question is really what gave us flexibility optionality and potential.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of Bruno Montanari from Morgan Stanley.
Bruno Montanari: Good morning, Joe and team Thanks for taking my question.
Bruno Montanari: So when we think about your secured evacuation capacity, which I believe you mentioned 124000 barrels per day.
Bruno Montanari: Into next year.
Bruno Montanari: Can you give us a sense of how we should expect a production with a whole quarterly into 2025 and perhaps.
Bruno Montanari: Getting closer to that level of of around 120000 barrels per day. Thank you very much.
Speaker Change: Hi, Bruno Thanks for your question, Yes, we will finish this year with an average of 85000 barrel per day in Q4.
Bruno Montanari: <unk>.
Bruno Montanari: We are guiding for $2025 95 to 100, so I mean, it is a super incrementals excuse that we outlined.
Bruno Montanari: Outlined in our presentation, 40% increase in production, 40% increase in EBITDA.
Bruno Montanari: When you if we want to basically finished between 95 unencumbered for next year that means that we will have an exit rate in 2025 about one country thousand barrel per day for sure.
Bruno Montanari: We will have me about question on capacity in 2025 or 124000 barrels per day that will be composed of 75000 or <unk> 44 that we already have the city one that we will add.
Bruno Montanari: <unk> and order timing Chilean not us it will be 12000, so about <unk> 87, <unk> thousand and we can read capacity trucking capacity for Citi sell somebody I hope so.
Bruno Montanari: So that make our 124000 total capacity.
Speaker Change: Our fee income for 2025.
Bruno Montanari: Reality.
Speaker Change: I believe there's going to be a spare capacity in a little while I mean beyond the 31000.
Bruno Montanari: Of.
Bruno Montanari: We will use and we have access to.
Bruno Montanari: For me when you look at the capacity that's going to be put in place in Q1, they most likely will be pay a capacity so.
Bruno Montanari: Even though we don't cover $35 87000 barrels per day and tracking.
Bruno Montanari: It's unlikely that we will use that capacity in 2025.
Speaker Change: That's clear thank you.
Speaker Change: Thank you.
Speaker Change: One moment for our next question.
Speaker Change: Our next question comes from the line of Marty now Martin from Latin Securities.
Speaker Change: Hi, Good morning, Thanks for taking my question. So in the third quarter, Brent prices decline and local prices remain quite stable. So the gap between domestic and international prices narrow significantly.
Speaker Change: You see this dynamic evolving and in particular what is CRE.
Speaker Change: I would look for the price of the local R&D compare to export <unk>.
Speaker Change: Yes.
Speaker Change: Terry.
Speaker Change #100: Yes, you are right I mean, when you look at Brent prices.
Speaker Change #100: Q2 was around 85 Q3 78.
Speaker Change #100: And we are thinking that Q4 would be.
Speaker Change #100: Similar range or to what we had in Q3.
Speaker Change #100: When you do the realized price of our exports with 78 seven.
Speaker Change #100: 70.
Speaker Change #100: $8 per barrel.
Speaker Change #100: 68, and when you look when you see the prices of local in.
Speaker Change #100: In Q3 was 68.
Speaker Change #100: Very similar.
Speaker Change #100: We feel that we should see.
Speaker Change #100: We should not see a change in that dynamic going forward. We will look at the assembly in Miami and that is based in the new law.
Speaker Change #100: That's called for an operating intervention. So we are optimistic that the regular mentation of this new law will support that conversion.
Speaker Change #100: Between local pricing to international prices so.
Speaker Change #100: We believe that <unk> will continue in Q4, we don't see a major change.
Speaker Change #101: Okay. Thank you very much.
Speaker Change #101: Thank you.
Speaker Change #102: One moment for our next question.
Speaker Change #103: Our next question comes from the line of Danielle Guadiana from BTG Pactual.
Danielle Guadiana: Hi, good morning.
Danielle Guadiana: Gil and Alejandro first of all congrats.
Danielle Guadiana: The results.
Danielle Guadiana: I would like to touch on inorganic growth.
Danielle Guadiana: And is that SaaS I wanted to magical share with us and navigate on the sell process of Exxon.
Danielle Guadiana: My understanding and according to telecom media is that these processes now a three horse race and I wanted to know if you are in this race.
Speaker Change #104: I need to opt out.
Speaker Change #104: Have you already stealing his race and began I would like to know if you can share with US where are the main merits you have identified from excellent assets in Argentina.
Speaker Change #104: Yes.
Speaker Change #104: Okay.
Danielle Guadiana: Thank you Danielle.
Speaker Change #105: Thank you for the question I cannot answer, but I will try to do my best to give you some color.
Speaker Change #105: So first of all.
Speaker Change #105: Yes, we continue engage in excellent eyesight.
Speaker Change #105: Ted.
The previous quarter it was.
Speaker Change #105: A competitive process that we.
Speaker Change #105: We're keen and participate and we continue to be in the race.
Speaker Change #105: And of course as I said also in the last quarter.
Speaker Change #105: We will do whatever to make business sense, and if you come to us.
Speaker Change #105: Welcome.
Speaker Change #105: If you.
Speaker Change #105: Move on and we have enough acreage in our costs.
Speaker Change #105: To continue with the development of our plans our future plan.
Speaker Change #105: <unk>.
Speaker Change #105: Excellent assets out of good assets.
Speaker Change #105: And that's why we are we are there.
Speaker Change #106: You gave us.
Speaker Change #106: Probably view on I mean, we have two <unk>.
Speaker Change #106: 200 <unk> acreage.
Speaker Change #106: You know we have around 1300, well location from which we have drilled.
Speaker Change #106: One company and for any one country on three of those.
Speaker Change #106: But also we have assets in the north and that.
Speaker Change #106: Probably allow.
Speaker Change #106: Allow us to create a new developments have been ignored.
We'd model.
Speaker Change #106: Materiality to the one that we have today, so that is probably the strategic view beyond behind us now.
Speaker Change #106: Again I mean.
Speaker Change #106: Building optionality for the future.
Speaker Change #106: We've got enough upside in our own put about 40 year to date to continue with our overall plan, having having a development have been in Europe, yes. It will have some CTO Vista.
Speaker Change #106: Hope I can give you some color.
Speaker Change #106: I cannot say much more than that.
Speaker Change #107: That's very good thank you I guess.
Speaker Change #107: Youre welcome.
Speaker Change #109: Thank you one moment for our next question.
Speaker Change #110: Our next question comes from the line of no notable Mark on this from Bank of America.
Speaker Change #111: Well hi, everyone. Thanks for taking my question here.
Speaker Change #112: There is a very interesting exhibit in our corporate presentation that I would like to.
Speaker Change #112: Export export a little more.
Speaker Change #112: Corporate presentation, we cannot there one from this quarter on the slide 11, there's connects a bit showcasing potential.
Speaker Change #112: Besides for different landing zones in different blocks right.
Speaker Change #112: The message I get from this extra bits is that there could be an upside in terms of well inventory right.
Speaker Change #112: So my question is.
Speaker Change #113: When do you guys expect to explore or tried to develop the middle <unk> PPO, Delaware carbonated soft the pure in Agua and.
Speaker Change #113: And also their organic zone of BP.
Speaker Change #113: Any color here.
Speaker Change #113: On your.
Speaker Change #113: Expectation would be great. Thank you.
Speaker Change #114: I know none of those things for the technical question I would love to have my <unk> next to me now to answer that properly, but I will do my best So yes.
Speaker Change #114: As you pointed out.
Speaker Change #114: <unk> been testing.
Defending songs in different fields. So <unk> for example.
Speaker Change #114: With the lower kind of one eight we have not.
Speaker Change #114: Eight.
Speaker Change #114: I work with day they needed carbonate.
Speaker Change #114: In BP, we have precedence of organic.
Speaker Change #114: So also I mean, it's something that we face.
Speaker Change #114: So we have an upside for the future.
Speaker Change #114: This is neither corporate presentation, that's a show is.
Speaker Change #114: The area distribution of all those.
Speaker Change #114: <unk>.
Speaker Change #114: For example, when you look at BP.
Speaker Change #114: Organic is not present in the full block. So they are beside 15, the productivity of the sone.
Speaker Change #114: In some of those fee we need to this where those songs are really around water out of the board of this.
Speaker Change #114:
As you as we've seen in the accompanying presentation, we got it started.
Speaker Change #114: Two days.
Speaker Change #114: Those songs little by little.
Speaker Change #114: And this what you just pointed out I mean, when you talked to.
Speaker Change #114: Independence American companies on the very thing that people that compare the ragavan comorbid with Permian. This is one of the main theme that set us apart.
Speaker Change #114: And for many of them is one of the thing that may think that might come out of that even though today have better productivity and Permian has even more upside potential.
Speaker Change #115: Staying on that.
Speaker Change #115: 2025 put us continued to be.
Speaker Change #115: A full development. So you will see that we will that will have an opportunity. Some of those shows but we will not come with a plan on how to develop those Sony in a different way.
Speaker Change #115: In the next year, but yes, as you pointed out.
Speaker Change #115: We will continue assessing those loans, because we believe that that will add future reserve to our future development.
Speaker Change #116: Thank you very clear.
Speaker Change #117: Thank you one moment for our next question.
Speaker Change #118: Our next question comes from the line of Ignacio <unk> from <unk> BBA.
Speaker Change #119: Hi, everyone.
Congratulations on the results.
Speaker Change #119: Great.
Speaker Change #120: No. My question was about midstream capacity, but maybe you can give us any color on the long term contracted capacity I mean 2030 goals are above the plan and I would like to understand that.
Speaker Change #119: Thanks.
Speaker Change #121: Okay Ignacio things for a question.
Speaker Change #121: So when come to.
Speaker Change #121: Additional capacity I mean, the FERC seems that we are.
Speaker Change #121: Working on we expect you to have is all label expansion.
Speaker Change #121: So we expect that full capacity of the Vista share to be in play between February and April of 2025. This out it will be additional city 1000 barrels of oil per day.
Speaker Change #121: More long term.
Speaker Change #121: It's become more of a suite. This is a process that we do Ips.
Speaker Change #121: The other optimum producing of debating whether we are actively participating with equity in in that.
Speaker Change #121: In that concept and the building of that by line.
Speaker Change #121: Today, we are working in the commercial finance financing shareholders' agreement allowed that.
Speaker Change #121: We come into place.
Speaker Change #121: I've seen the low work has been done in that front.
Speaker Change #121: And we are confident that this project will take place.
Speaker Change #121: We have not yet defined the woodwork unique there is on that one but I think I mean, I can probably said that it will not be less than 10% for the stage one and this day one full capacity you have to think we sat around 400000 barrel oil per day. So that is where we are working.
Speaker Change #121: We are looking and we are engaging in long term capacity, but for now of course, what ice alone in the ball on the bullies all the value function that we expect to have a Q1 next year.
Sure. Thanks.
Thank you.
Speaker Change #122: One moment for our next question.
Speaker Change #121: Okay.
Speaker Change #123: Our next question comes from the line of Andres Cardona from Citi.
Speaker Change #124: Hi, good morning.
Speaker Change #125: Although highly.
Speaker Change #126: Constellation is on the results.
Speaker Change #125: Yes.
Speaker Change #127: More short term question.
Speaker Change #127: The name.
Speaker Change #127: Sure Kian activity for the fourth quarter. If you have any estimate guidance that you can provide.
Speaker Change #127: Would be very helpful.
Speaker Change #127: Thank you.
Speaker Change #128: Hi, Andreas.
Speaker Change #128: King.
Speaker Change #128: Yes.
Speaker Change #128: I mean look the number.
Speaker Change #128: <unk>.
Speaker Change #128: So in terms of volume tracking we will we will finish Q3.
Speaker Change #128: With the total volume of around <unk> <unk>.
Speaker Change #128: Butter loads per day.
Speaker Change #128: When you look at going forward, we are forecasting for Q4 of course is in Greece.
Speaker Change #128: We will increase volumes.
Speaker Change #128: <unk> will not be online. So we are thinking that we will.
Speaker Change #128: Tracking our own 23000 barrels per day of at Ash in Q4 of.
Speaker Change #128: Of course, the number would come down in Q1, 'twenty identifying dependably depend depending on when exactly all the light coming through each line, but.
Speaker Change #128: I mean, you could expect that Q1 will be.
Speaker Change #128: Between the middle of what we did in Q3 and Q4.
Speaker Change #128: In demonstrating.
Speaker Change #129: Thank you again.
Speaker Change #129: Andreas.
Andreas: Thank you.
Speaker Change #131: One moment for our next question.
Speaker Change #132: Our next question comes from the line of Andre Correa from J P. Morgan.
Andre Correa: Hi, Thank you a lot of my questions were already asked so more of these Quinn here.
Andre Correa: Lifting costs increase and acquire despite irrelevant production ramp up.
Andre Correa: So why does the expectations like and drivers going forward, how should that how should the company managed to increase.
Speaker Change #133: Yes, I think you're going to get for your question, Yes, I mean.
Speaker Change #134: Lifting costs incurred at <unk> during Q3.
Speaker Change #134: And that basically increase is the continued investment that we're doing in gathering processing and compression power generator.
Speaker Change #134: Our generation two to accommodate.
The production growth in the future production growth so when come to accommodate production grow on future production grow even though the main teekay night it is capex.
Speaker Change #134: To accommodate opex somehow.
Speaker Change #134: So we continue.
Speaker Change #134: With our guidance of $4 $5 per barrel for the year in demo they average lifting cost for 2024.
Speaker Change #134: Going forward with the increase of production and cutting lifting cost.
Speaker Change #134: The main component of because.
Speaker Change #134: I mean, we are we are very positive.
With a number going forward.
Speaker Change #134: We see a room for even improving that four five that we have.
Speaker Change #134: So no noncore instead on the lifting costs alone.
Speaker Change #134: Okay. Thank you Youre welcome.
Speaker Change #134: Thank you.
Speaker Change #135: One moment for our next question.
Speaker Change #136: Our next question comes from the line of Martin <unk> got that ROTC from <unk> Securities.
Speaker Change #137: Good morning, Mr team congratulations on the Q3 numbers on the updated guidance.
Speaker Change #138: My question goes in the line of.
Speaker Change #138: The recent oil price volatility.
Speaker Change #138: Is the company considering implementing a hedging strategy for re pricing.
Speaker Change #138: Prices if regulation allows it.
Speaker Change #138: Or how would you manage these in the future.
Speaker Change #138: Thanks.
Speaker Change #140: Okay. Thanks for the question.
Speaker Change #141: Yes first of all as you know I mean regulation does not allow today.
Speaker Change #140: To have.
Speaker Change #140: <unk> policy or hedging program.
Speaker Change #140: We cannot access too.
Speaker Change #140: Lola for hedging.
Speaker Change #140: We see ourselves as a low cost operator.
Speaker Change #140: We are a very unlevered ash, we know make sure that maturity in front of us so.
Speaker Change #140: We like to think that our investors today can't hedge down says more efficiently that we can do in the current conditions.
Speaker Change #140: So again I mean, we don't have a hedging program is very unlikely that we will have in the next few EDA hedging program.
Speaker Change #140: If conditions change at some point of time in that.
Speaker Change #140: Yeah.
Speaker Change #142: Makes sense.
Speaker Change #142: Well I mean, we will do something but it's not something that we have today.
Speaker Change #142: In our plan and we are looking at.
Speaker Change #142: Alright, thank you so much.
Speaker Change #142: Thank you.
One moment for our next question.
Speaker Change #143: Our next question comes from the line of Alejandro Demichelis from Jefferies.
Alejandro DeMichelis: Yes. Good morning, guys. Thank you very much for taking my question, Anthony I would like to understand a bit better your guidance for 2025 on how much flexibility you have in that so you certainly get you that you should have all.
Alejandro DeMichelis: The expansion, thereby April so that means you should have like 124000 barrels a day of capacity for at least.
Alejandro DeMichelis: Yes.
Alejandro DeMichelis: So.
Alejandro DeMichelis: If if there is any spare capacity in the pipeline how quickly can you access that and do have enough.
Alejandro DeMichelis: Flexibility in your work program to further expand your production.
Speaker Change #144: Thanks Ali.
Speaker Change #144: Yes, definitely I mean, you pointed out we would have.
Different to what we experienced in 2023, we will go to 2025, most likely having almost likely will have a spare capacity even struck kino as better capacity in all while the expansion of the capacity will be there.
Speaker Change #144:
Speaker Change #144: The other thing that we have and we have proved this year on.
Speaker Change #144: We will continue employ and I think going into Q4.
Speaker Change #144: The ability that we have to ramp up and execute I mean.
Speaker Change #144: We are today.
Quietly discuss it.
Speaker Change #144: Increase of production that we have in Q3, but that has been an amazing achievement and something that we have proof to our cell that we're a couple more to do.
Speaker Change #144: On a team that is another very important point going forward also we woke up a second frac hits income.
Speaker Change #144: And as I've said before.
Speaker Change #144: That gives us optionality to grow because.
Speaker Change #144: When the opportunity come you have to have the tools to make it happen in this second frac savings are very important.
Speaker Change #144: We want to go beyond what we have guided in 2025, we will need probably in <unk>.
Speaker Change #144: Sure.
Speaker Change #144: Rick affordability and Rick.
Speaker Change #144: Now, saying that that will all depend.
Speaker Change #144: On the context.
Speaker Change #144: That.
Speaker Change #144: 2025 bidding, particularly.
Pricing.
Speaker Change #144: Of.
Speaker Change #144: Internationally.
Speaker Change #144: No.
Speaker Change #144: The price is.
Speaker Change #144: Better.
Speaker Change #144: Equate to the one that we plan, yes, we have flexibility.
Speaker Change #144: To grow.
Speaker Change #144: We said that in the next three years, we will have.
Speaker Change #144: <unk> down $1 billion of cash we are using this cash.
Speaker Change #144: DCF.
Speaker Change #144: Partially to boost that growth.
Speaker Change #144:
Speaker Change #144: 2025, we will do it.
Speaker Change #144: The same thing but of course, the context to be there so price of oil will play a role for that we have the risk.
Okay, great. Thank you Youre welcome.
Speaker Change #144:
Speaker Change #145: Thank you I would now like to turn the conference back to <unk> for closing remarks.
Well I think you've already got it. Thank you very much guys for the support for the question for the continuous interest in Vista.
Speaker Change #145: Again, I would like to thank you the people in the field that made that possible.
Speaker Change #145: This plan internally call moonshot for us.
Speaker Change #145: Reflect or shows.
Speaker Change #145: How different we saw.
Speaker Change #145: Was to go through this ramp up of production. So all credit to them. Thank you very much on behalf of a very good day.
Speaker Change #146: This concludes today's conference call. Thank you for participating you may now disconnect.