Q4 2024 Vista Energy SAB de CV Earnings Call

February 27, 2025

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Operator: Thank you for standing by, and welcome to Vista's Q4 and full year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. I would now like to hand the call over to Alejandro Cherñacov, Strategic Planning and Investor Relations Officer. Please go ahead.

Thank you for standing by and welcome to Vista, <unk> fourth quarter and full year 'twenty 'twenty four earnings conference call.

At this time all participants are in a listen only mode.

After the speaker presentation, there will be a question and answer session too.

Operator: To ask a question during the session, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again.

To ask a question during the session you will need to press star one one on your telephone.

To remove yourself from the queue you May press Star one one again.

Alejandro Cheracov: I would now like to hand the call over to Alejandro Chernakov, Strategic Planning and Investor Relations Officer. Please, go ahead. Thanks. Good morning, everyone. We are happy to welcome you to Vista's fourth quarter and full year 2024 results.

Alejandro: I would now like to hand, the call over to Alejandro <unk> strategic planning and Investor Relations Officer. Please go ahead.

Alejandro Cherñacov: Thanks. Good morning, everyone. We are happy to welcome you to Vista's Q4 and Full Year 2024 Results Conference Call. I am here with Miguel Galuccio, Vista's Chairman and CEO, Pablo Vera Pinto, Vista's CFO, Juan Garoby, Vista's CTO, and Matías Weissel, 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 these remarks. Our financial figures are stated in US dollars and in accordance with International Financial Reporting Standards, IFRS. However, during this conference call, we may discuss certain non-IFRS measures, such as adjusted EBITDA and adjusted net income.

Speaker Change: Thanks, and good morning, everyone. We are happy to welcome you to reach the fourth quarter and full year 2024 results conference call I'm here with me.

Alejandro Cheracov: I am here with Miguel Galuccio, Vista's Chairman and CEO, Pablo Verapinto, Vista's CFO, Juan Garobi, Vista's CTO, and Matias Huesel, Vista's COO.

Speaker Change: As chairman and CEO, followed up with our CFO, one Guy who is the CEO and wasteful youll before.

Alejandro Cheracov: Before we begin, I would like to draw your attention to our cautionary statement of light. Please, the advice that I remarked today, including the answers to your questions, may include overlooking... These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from expectations contemplated by the The financial figures are stated in US dollars and in accordance with international financial reporting standards. However, during this conference call, we may discuss certain non-IFRS measures such as Adjusted WDA and Adjusted Net Cost. Reconciliations of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday.

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.

Speaker Change: Our financial figures are stated in U S dollars and in accordance with international financial reporting standards <unk>.

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

Alejandro Cherñacov: 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 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. I will now turn the call over to Miguel.

Speaker Change: Reconciliations of these measures to the closest <unk> measure can be found in the earnings release that we issued yesterday. Please check our website for further information.

Alejandro Cheracov: Please check our website for further information.

Alejandro Cheracov: Our company is the Sociedad Anónima Bursátil de Capital Variable, organized under the laws of Mexico, registered in the Bolsa Mexicana de Valores and the New York. Our tickets are Vista in the Bolsa Mexicana de Valores and BIST in the New York Stock Exchange.

Speaker Change: Our company is a software only model starting to capital about Yodlee organized under the laws of Mexico registering there was obviously cannot evaluate and the New York stock exchange.

Speaker Change: <unk> out of beta in there was some kind of a loaded <unk>.

Neil: In the New York Stock Exchange I will now turn the call over to Neil.

Miguel Galuccio: I will now turn the call over to me. Thanks, Ale. Good morning, everyone, and welcome to this earnings call. 2024 was another outstanding year for Vista, marked by double-digit growth rates in production and adjusted FDA, having delivered on guidance for both methods. We also secure new drilling, completion, and oil treatment and transportation capacity, which will underpin further growth in the coming years.

Miguel Galuccio: Thanks, Ale. Good morning, everyone, and welcome to this earnings call. 2024 was another outstanding year for Vista, marked by double-digit growth rates in production and adjusted EBITDA, having delivered on guidance for both metrics. We also secure new drilling, completion, and oil treatment and transportation capacity, which will underpin further growth in the coming years. I will kick it off by going over the results of Q4, and later, a deep dive into the highlights of the full year. The Q4 of 2024 was marked by a strong operational and financial performance, driven by new well activity in our development hub in Vaca Muerta. Total production was 85.3 thousand BOEs per day, an increase of 51% compared to the same quarter of last year, and 17% compared to the previous quarter.

Neil: Thanks, and good morning, everyone and welcome to this earnings call.

2024 was another outstanding year for beta Mark by double digit growth rate in production and adjusted EBITDA, having delivered on guidance for both metrics.

Neil: We also secured new drilling completion and on treatment and transportation capacity, which will underpin further growth in the coming years.

Miguel Galuccio: I will kick it off by going over the results of Q4. and later a deep dive into the highlights of the full year. The fourth quarter of 2024 was marked by strong operational and financial performance. driven by new oil activity in our development hub in Bacamorga. Total production was 85.3 thousand DOEs per day, an increase of 51% compared to the same quarter of last year. 70% compared to the previous quarter. Oil production was 73.5 thousand barrels of oil per day, 52% year-over-year, and 16% quarter-over-quarter. Total revenues during Q4 2024 were $471 million. 52% above the same quarter of last year.

Neil: I will kick it off by going over the results of Q4.

Neil: And later, a deep dive into the highlight of the full year.

Neil: The fourth quarter of 2024 was marked by a strong operational and financial performance.

Neil: Even by new well activity in our development hub in bulk commodity.

Neil: Total production was $85 3000 Boe's per day.

Neil: The increase of 51% compared to the same quarter of last year.

Neil: And 70% compare to the previous quarter.

Miguel Galuccio: Oil production was 73.5 thousand barrels of oil per day, 52% year over year, and 16% quarter over quarter. Total revenues during Q4 2024 were $471 million, a 52% above the same quarter of last year. Lifting cost was $4.7 per BOE, almost flat quarter over quarter. Capital expenditure was $340 million, driven by 11 wells drilled and 13 wells completed during the quarter, plus $64 million in development facilities. Adjusted EBITDA was $273 million, 5% below the same quarter of last year. If we net out the income generated by the repatriation of exports at the Blue Chip Swap rate, quarterly adjusted EBITDA grew 27% year over year. Net income was $94 million, implying a quarterly EPS of $0.98 per share. Deducting deferred income tax, adjusted net income during the quarter was $22 million. Free cash flow was $57 million during the quarter.

Neil: While production was $73 5000 barrels oil per day.

Neil: 52% year over year.

Neil: 16% quarter over quarter.

Neil: Total revenues during Q4 2024 were $471 million.

Neil: 52% above the same quarter of last year.

Miguel Galuccio: Lifting cost was $4.7 per DOE, almost flat quarter over quarter. Capital expenditure was $340 million, driven by 11 wells drilled and 13 wells completed during the quarter, plus $64 million in development facilities. adjusted FDA was $273 million, 5% below the same quarter of last year. If we net out the income generated by the repatriation of exports at the blue-cheeked swap rate, quarterly assertive retail grew 27% year-over-year. Net income was $94 million, implying a quarterly EPS of $0.98 per share.

Neil: Lifting cost was $4 $7 per the UAE almost flat quarter over quarter.

Neil: Capital expenditure was $340 million.

Neil: Driven by 11 wells drilled 13 wells completed during the quarter.

Neil: Plus $64 million in development facility.

Neil: Adjusted EBITDA was $273 million.

Neil: 5% below the same quarter of last year.

Neil: We net out the income generated by the repatriation of exports.

Neil: The blue chip swap rate quarterly adjusted EBITDA grew 27% year over year.

Neil: Net income was $94 million.

Neil: Implying that quarterly EPS of <unk> $98 per share.

Miguel Galuccio: The dark team deferred in contact. Adjusted net income during the quarter was $22 million. Ricard's loan was $57 million during the quarter. And finally, net labor ratio at quarter end was a solid 0.63 times adjusted EBDA. During Q4, we record another quarter of double-digit production growth on a sequential and inter-annual basis. Total production at 85.3 thousand VOEs per day was 70% above the previous quarter and 51% above the same quarter last year. Production growth was driven by the acceleration of capital deployment in our core development sectors. New well activities increased from 31 new wells in 2023 to 50 new wells connected during 2024.

Neil: Deducting deferred income tax adjusted net income during the quarter was $22 million.

Neil: Free cash flow was $57 million during the quarter.

Miguel Galuccio: Finally, net leverage ratio at quarter end was a solid 0.63 times adjusted EBITDA. During Q4, we record another quarter of double-digit production growth on a sequential and interannual basis. Total production at 85.3 thousand BOEs per day was 70% above the previous quarter and 51% above the same quarter last year. Production growth was driven by the acceleration of capital deployment in our core development hub. New well activities increased from 31 new wells in 2023 to 50 new wells connected during 2024. 25 new wells were connected between mid-August and early December, driving our outstanding production performance during the last quarter of the year. Oil production was 73.5 thousand barrels of oil per day, following the same trend, 60% above the previous quarter and 52% above the Q4 of last year. Gas production increased 52% on an interannual basis and 27% on a sequential basis.

Neil: And finally net leverage ratio at quarter end was a solid Cedar 0.63 times adjusted EBITDA.

Neil: During Q4, we recorded another quarter of double digit production growth on a sequential uninterruptible basis.

Neil: Total production at $85 3000, Boe's per day was 70% above the previous quarter and 51% about the same quarter last year.

Neil: Production growth was driven by the acceleration of capital deployment in our core development hub.

Neil: You will activities increased from 31, new wells in 2023 to 50, new wells connected during 2024.

Miguel Galuccio: 25 new wells were connected between mid-August and early December. driving our understanding production performance during the last quarter of the year. Oil production was 73.5 thousand barrels of oil per day, following the same trend, 60% above the previous quarter and 52% above the fourth quarter of last year. Gas production increased 52%. on an interannual basis and 27% on a sequential basis. In Q4 2024, total revenues were $471 million. a 52% increase year-over-year, and 2% quarter-over-quarter, mainly driven by oil production growth. On a sequential basis, the relatively lower increase in total revenues compared to the 70% production increase reflects the enormalization of oil inventories from below average level in the previous quarter.

Neil: Quantify new worldwide connected between mid August and early December.

Neil: Driving our understanding production performance during the last quarter of the year.

Neil: Oil production was 73 5000 barrels of oil per day, following the same trend, 60% above the previous quarter and 52% about the fourth quarter of last year.

Neil: Gas production increased 52%.

Neil: On an inter annual basis, and 27% on a sequential basis.

Miguel Galuccio: In Q4 2024, total revenues were $471 million, a 52% increase year over year and 2% quarter over quarter, mainly driven by oil production growth. On a sequential basis, the relatively low increase in total revenues compared to the 70% production increase reflects the normalization of oil inventories from below average level in the previous quarter, as well as the commissioning of Oleoductos del Valle's expansion pipeline will require 70,000 barrels of oil for the line pack. Combining both effects, 280,000 barrels of oil production were not sold during the quarter. Realized oil price was $67.1 per barrel on average, down 1% on an interannual basis, and 2% lower on a sequential basis, mainly driven by slightly lower international prices. Export realization prices were $66.6 per barrel. Domestic realization prices were $67.8 per barrel, including volumes sold at export parity.

Neil: In Q4, 2024 total revenues were $471 million.

Neil: At 52% increase year over year, and 2% quarter over quarter, mainly driven by oil production growth.

Neil: On a sequential basis, they're relatively low increase in total revenues compared to the 70% production increase.

Neil: It reflects the normalization of our inventories from below average level in the previous quarter.

Miguel Galuccio: as well as the commissioning of all the value expansion pipelines. will require 70,000 bottles of oil for the light. Combining both effects. 280,000 barrels of oil production were not sold during the quarter. Realized oil price was $67.1 per barrel on average, down 1% on interannual basis, and 2% lower on a sequential basis, mainly driven by a slightly lower international price. Export realization prices were $66.6 per barrel. Domestic realization prices were $67.8 per barrel, including volumes sold at export parity. During Q4, we continue to execute our export-oriented strategy. with an increasing amount of oil sold in the international market driven by the production growth.

Neil: As well as the commissioning of all the values pension pipeline.

Neil: We require 70000 barrels of oil.

Neil: For the line pack.

Neil: Combining both affect Truecar 80000 barrels of oil production were not sold during the quarter.

Neil: Light oil price were $67 $1, but a waterloo, Nevertheless, down 1% on international basis, and 2% lower on a sequential basis, mainly driven by slightly lower international prices.

Neil: Export realization prices were $66 $6 per barrel.

Neil: The realization prices were $67 $8 per barrel, including volumes sold at the export parity.

Miguel Galuccio: During Q4, we continued to execute our export-oriented strategy with an increasing amount of oil sold in the international market, driven by the production growth. We exported 3.6 barrels of oil during the quarter, 79% above the previous year. Additionally, 1.1 million barrels of oil were sold in the domestic market at export parity prices. Combining the sales to international buyers with the domestic buyers paying export parity, 73% of our total oil sales were sold at export parity prices. Lifting costs during Q4 was $36.6 million, implying a lifting cost per BOE of $4.7. On a unique cost basis, lifting cost was up 8% year over year. This increase was driven by inflation in US dollars, impacting pesos-denominated contracts, and a ramp up in oil field expenditures to accommodate our production growth. This effect were partially offset by the dilution of fixed costs as we continue gaining scale.

Neil: During Q4, we continued to execute our export oriented strategy.

Neil: With an increasing amount of volumes sold in international markets driven by the production growth.

Miguel Galuccio: We exported 3.6 barrels of oil during the quarter, 79% above the previous year. Additionally, 1.1 million barrels of oil were sold in the domestic market at export parity prices. Combining the sales to international buyers with the domestic buyers paying export parity, 73% of our total oil sales were sold at export parity prices. Lifting cost during Q4 was $36.6 million, implying a lifting cost per DOE of $4.7. On a unit cost basis, lifting cost was up 8% year over year. This increase was driven by inflation in US dollars impacting pesos denominated contracts and a ramp up in oil field expenditures to accommodate our production growth.

Neil: We reported three six barrel of oil during the quarter, 79% above the previous year.

Neil: Additionally, $1 1 million barrel of oil were sold in the domestic market.

Neil: Parity prices.

Neil: Combining the sales to international buyer with a domestic buyer pain export parity, 73% of our total oil sales were sold at export parity prices.

Neil: Lifting costs during Q4.

Neil: $36 6 million.

Neil: Implying a lifting cost per <unk> of $4 $7.

Neil: On a unit cost basis lifting cost was up 8% year over year.

Neil: This increase was driven by inflation in U S dollars impacting peso denominated contract.

Neil: Bump up in order to feed expenditures to accommodate our production growth.

Miguel Galuccio: These effects were partially offset by the dilution of feed costs as we continue gaining strength. Adjusted VDA during the quarter was $273 million. 5% lower on an inter-annual basis. This reflects the fact that Q4 of last year included 81 million dollars corresponding to the repatriation of export proceeds at the blue chip swap rate, compared to the 9 million dollars during Q4 2024. Excluding this effect, AYACI-DBDA spans 27% on interannual basis. On a sequential basis, adjusted DBEA was down 12%, reflecting a serious one-off and temporary factor of setting the 70% total production growth. Firstly, the normalization of oil inventories from the previous quarter and the commissioning of oil-oil pipeline, which I already mentioned.

Neil: These effects were partially offset by the dilution of fixed costs as we continue gaming escape.

Miguel Galuccio: Adjusted EBITDA during the quarter was $273 million, 5% lower on an interannual basis. This reflects the fact that Q4 of last year included $81 million corresponding to the repatriation of export proceeds at the Blue Chip Swap rate, compared to the $9 million during Q4 2024. Excluding this effect, adjusted EBITDA expanded 27% on interannual basis. On a sequential basis, adjusted EBITDA was down 12%, reflecting a series of one-off and temporary factor offsetting the 70% total production growth. Firstly, the normalization of oil inventories from the previous quarter and the commissioning of Oleoductos del Valle pipeline, which I already mentioned. Secondly, the increase in trucking expenditure, as trucking volumes increased from 12,000 to 20,000 barrels of oil per day, quarter over quarter. This impacted sales expenses with an increase of $25 million on a sequential basis.

Neil: Adjusted EBITDA during the quarter was $273 million.

Neil: 5% lower on an internal basis.

Neil: Flagged. The fact that Q4 of last year included 81 million corresponding to the repatriation of export proceed at the Blue chip substrate.

Neil: Payout to the $9 million during Q4 2020.

Neil: Excluding this effect adjusted EBITDA expanded 27% on internal basis.

Neil: When you think wetzel basis, adjusted EBITDA was down 12%, reflecting a series of one off and temporary factor offsetting the 70% total production growth.

Neil: Currently the normalization of oil inventories from the previous quarter.

Neil: And the commissioning of all the line by line, which I already mentioned.

Miguel Galuccio: Secondly, the increase in trucking expenditure. as tracking volumes increased from 12,000 to 20,000 barrels of oil per day, quarter over quarter. this impacted sales expenses with an increase of $25 million on a sequential basis.

Neil: Secondly, the increase in tracking expenditure.

Neil: Trucking volumes increased from 12000 to 20000 barrels of oil per day quarter over quarter.

Neil: This impacted sales expenses with an increase of $25 million on a sequential basis.

Miguel Galuccio: Finally, you should note that with this quarterly print, we have achieved our annual Ashanti WDA goal. During Q4 2024, operating activities cash flow was $369 million. reflecting a decrease in working capital of $133 million and an advance payment for military expansions of $27 million. Cash flow used in investing activities was 312 million dollars. reflecting accrued capex of $340 million partially offset by $34 million decrease in capex related to working capex. Precast flow during the quarter was therefore $57 million. Cash flow from financing activities reflects proceeds from borrowings of $836 million and the repayment of borrowings of $340 million.

Miguel Galuccio: Finally, you should note that with this quarterly print, we have achieved our annual adjusted EBITDA guidance. During Q4 2024, operating activities cash flow was $359 million, reflecting a decrease in working capital of $133 million, and an advance payment for maintenance functions of $27 million. Cash flow used in investing activities was $312 million, reflecting accrued CapEx of $340 million, partially offset by $34 million decrease in CapEx related to working capital. Free cash flow during the quarter was therefore $57 million. Cash flow from financing activities reflects proceeds from borrowings of $836 million, and the repayment of borrowings of $340 million. During Q4, we achieved a major milestone by pre-financing all the ramp-up of CapEx activities planned for 2025. Finally, cash at period end was $764 million, and net leverage ratio stood at a very healthy 0.63 times adjusted EBITDA. I will now move to our full-year highlights.

Neil: Finally, you should note that we this quarterly prime we have achieved our annual adjusted EBITDA guidance.

Neil: During Q4 2020 for operating activities cash flow was $369 million.

Neil: Reflecting a decrease in working capital of 133 million and an advanced payment for maintaining expansions of $27 million.

Neil: Cash flow used in investing activities was $312 million.

Reflecting our accrued capex of $340 million, partially offset by $34 million decrease in capex related to working capital.

Neil: Free cash flow during the quarter was there a florida $57 million.

Neil: Cash flow from financing activities reflects proceeds from borrowings of $836 million.

Neil: And the repayment of borrowings of $340 million.

Miguel Galuccio: During Q4, we achieved a major milestone by pre-financing all the ramp-up of CAPEC activities planned for 2024. Finally, cash at period end was $764 million, and net leverage ratio stood at a very healthy 0.63 times adjusted FDA.

Neil: During Q4, we achieved a major milestone by refinancing or the ramp up of Capex activity planned for 2025.

Neil: Finally cash at period end was $764 million.

Neil: Net leverage ratio stood at a very healthy Cedar 0.6 times.

Neil: Adjusted EBITDA.

Miguel Galuccio: I will now move to our full year highlight. During 2024, we achieved major milestones across all four strategic pillars. We have accelerated the development of our deep, short-cycle, well-inventorying back-and-forth. Solid Productivity Results have supported the expansion of our P1 reserve to 375 million barrels of oil equivalent, implying a 323% reserve replacement rate. We continue to prove our peer-leading performance capability. driving total production to an average of 69.7 thousand DOE's per day during the year, up 36% compared to 2020. This increase was down 10% year-over-year for a total of $4.6 per VOE, reflecting our low-cost asset base and our continuous focus on efficiency.

Neil: I will now move to our full year highlight during 2024, we achieved major milestones across all four strategic pillars.

Miguel Galuccio: During 2024, we achieved major milestones across all 4 strategic pillars. We have accelerated the development of our deep short cycle well inventory in Vaca Muerta. Solid productivity results have supported expansion of our P1 reserve to 375 million barrels of oil equivalent, implying a 323% reserve replacement ratio. We continue to prove our peer-leading performance capabilities, driving total production to an average of 69.7 thousand BOEs per day during the year, up 36% compared to 2023. Lifting cost was down 10% year over year for a total of $4.6 per BOE, reflecting our low-cost asset base and our continuous focus on efficiency. We also made solid progress on the sustainability front, recording a greenhouse gas emission intensity of 8.8 kilos of CO2 equivalent per BOE. A 44% reduction compared to the previous year, on the back of the capital expenditure in decarbonization projects.

Neil: We have accelerated the development of our deep shelf cycle, well inventory and bank of America.

Neil: Solid productivity result has supported the expansion of our <unk> wanted to step two 375 million barrels of oil equivalent.

Implying a 323% reserve replacement ratio.

Neil: We continued to prove our peer leading performance capabilities.

Neil: Driving total production to an average of $69 7000 Boe's per day during the year.

Neil: Up 36% compare to 2023.

Neil: Lifting cost was down 10% yet already here for a total of $4 $6, reflecting our low cost asset base and our continuous focus on efficiency.

Neil: We also made solid progress on the sustainability front.

Neil: A recording of greenhouse gas emission intensity of eight eight kilos of <unk> in February.

Neil: A 44% reduction compared to the PUC yet on the back of the capital expenditure and deep Carbonization project.

Miguel Galuccio: Our total recordable incident rate was below our target of 1 for the fifth consecutive year, demonstrating our focus on employee and contractor safety. Adjusted EBITDA expanded 25% compared to 2023 on the back of production growth and cost control. Our share price increased 83% from year-end 2023 to year-end 2024. P1 reserves increased 18% compared to 2023 for a total of 375 million BOEs estimated at year-end 2024. This implies a total reserve replacement ratio of 323 and 339 for oil. Net additions were 82.2 million BOEs, driven by activity in Bajada del Palo Este, where we added 52 new well locations. Bajada del Palo Este, where we added 34 locations, and Aguada Federal, where we added 15 locations. This results in a total of 400 book well locations in our P1 reserves.

Neil: Our total recordable incident rate was below our target of one for the fifth consecutive year, demonstrating our focus on employee and contractor safety.

Miguel Galuccio: Finally, we continue to successfully execute our total shareholder return strategy. adjusted EVDA expanded 25% compared to 2023 on the back of production growth and cost control. Our share price increased 83% from year-end 2023 to year-end 2024. P1 reserves increased 18% compared to 2023 for a total of 375 million VOEs estimated at year-end 2024. This implies a total reserve replacement ratio of 323 and 339 for oil. In addition, we have 82.2 million BOEs driven by activity in Bajada del Palo Oeste, where we added 52 new wealth locations. Bajada del Palo Oeste, WebGadget, 34. locations, and Aguada Federal, where we added 15 locations.

Neil: Finally, we continue to successfully execute our total shareholder return strategy.

Neil: Adjusted EBITDA funded 25% compared to 2023 on the back of production growth and cost control.

Neil: Our share price increased 83% from year end 2023 to year end 2024.

Neil: <unk> sales increased 18% compared to 2023 for a total of 375 million Boe's estimated at year end 2024.

Neil: This implies a total reserve replacement ratio of 323 and 339 quarterly.

Neil: These additions were $82 2 million.

Neil: Driven by activity in Bajada del Palo Este, where we added 52, new west location.

Neil: Because by the way, where we added 34.

Neil: Locations in Hawaii.

Neil: Where we added 15 locations.

Miguel Galuccio: This results in a total of 400 book well locations in our P-1 reserve. The certified present value at a 10% discount rate attributable to the company's interest in P1 Reserve is $4 billion, using a price assumption of $69.4 per barrel for oil, according to SEC guidelines.

Neil: This results in a total of four country book well locations in our <unk> reserves.

Miguel Galuccio: The certified present value at a 10% discount rate attributable to the company interest in P1 reserve is $4 billion, using a price assumption of $69.4 per barrel for oil, according to SEC guidelines. During 2024, we achieved significant operating milestones to continue driving profitability growth. We successfully ramped up our new well activity from 31 new well tie-ins in 2023 to 50 in 2024. This led to a robust interannual production growth and delivery of our annual guidance for new well connections and total production. We increased our oil trucking transportation capacity to 37,000 barrels of oil per day, which was a key enabler to deliver our production growth plan. In turn, production growth led an increase in oil exports. During 2024, we exported 10.6 million barrels of oil, 29% above 2023, for a total of $748 million of net revenues.

Neil: The certify present value at a 10% discount rate attributable to the company interest in B, one that etc is $4 billion using a price assumption of $69 $4 per lateral foot oil according to SEC guidelines.

Miguel Galuccio: During 2024, we achieved significant operating milestones to continue driving profitability growth. We successfully ramped up our new well activity from 31 new well timings in 2023 to 50 in 2024. This led to a robust inter-annual production growth and delivery of our annual guidance for new well connections and total production. We increased our oil tracking transportation capacity to 37,000 barrels of oil per day, which was a key enabler to deliver our production growth plan. In turn, production growth led an increase in oil exports. During 2024, we export 10.6 million barrels of oil, 29% above 2023, for a total of $748 million of net revenue.

Neil: During 2024, we achieved significant operating milestone to continue driving profitability to grow.

Neil: We successfully ramp up our new well activity from 31, new well.

Neil: In 2023 to 50 in 2024.

Neil: This led to a robust in their annual production growth and delivery of our unlike guidance for new well connections and total production.

Neil: We increased our oil trucking transportation capacity to 37000 barrels of oil per day.

Neil: Which was a key enabler to deliver our production below plan.

Neil: In ton production growth led an increase in oil exports during 2024 with port $10 6 million barrel report, 29% of our 2023 for a total of $748 million of net revenues.

Miguel Galuccio: We also achieved a key milestone that will unlock further profitability growth going forward. We secured 3 drilling rigs and 2 frag sets, which enabled us to ramp up to 50 new web connections in 2024, as well as guiding for 52 to 60 connections in 2025. We recently finished upgrading our oil drilling plant. to a capacity of 90,000 barrels of oil per day.

Miguel Galuccio: We also achieved a key milestone that will unlock further profitability growth going forward. We secured 3 drilling rigs and 2 frac sets, which enabled us to ramp up to 50 new well connections in 2024, as well as guiding for 52 to 60 connections in 2025. We recently finished upgrading our oil treatment plants to a capacity of 90,000 barrels of oil per day. We have already identified projects to expand this capacity further and will allocate CapEx to this effort during 2025. We also made cash contributions to fund the expansion of the Oleoductos del Valle expansion pipeline, which is now complete. The pipeline is currently ramping up. We expect it to reach full capacity by quarter end. As a reminder, Vista owns 32,000 barrels of oil per day of firm transportation capacity in this pipeline.

Neil: We also achieved a key milestone that will unlock further profitability growth going forward.

Neil: We secure CDW and rigs and two frac set which enable us to ramp up to 50, new well connections in 2024 as well as the guidance for 52% to 60 connections in 2025.

Neil: We recently finished upgrading our oil drilling plants to.

Neil: To a capacity of 90000 barrels of oil per day.

Miguel Galuccio: We have already identified projects to expand this capacity further, and we'll allocate CAPEX to this effort during 2021. We also made cash contributions to fund the expansion of the El Valpailán, which is now complete. The pipeline is currently ramping up, and we expect it to reach full capacity by quarter end. As a reminder, Vista owns 32,000 barrels of oil per day of film transportation capacity in this pipeline. We have also partnered in Baca Muerta Sur Company, securing an additional 50,000 barrels of oil per day of transportation, storage, and export capacity in the project.

Neil: We have already <unk> five projects to expand its capacity part of it.

Neil: We allocate capex to this effort during 2025.

Neil: We also made cash contributions to fund the expansion of Delta, Thailand, which is now complete.

Neil: The pylon is currently ramping up and we expect it to reach full capacity by quarter end.

Neil: As a reminder, this down 32000 barrels of oil per day of premium transportation capacity in the spine.

Miguel Galuccio: We have also partnered in Vaca Muerta Sur company, securing an additional 50,000 barrels of oil per day of transportation, storage, and export capacity in the project. During 2024, we made solid progress in reducing the carbon footprint in our operations. We reduced our total Scope 1 and 2 emissions by 28% compared to 2023, even as we increased total production during the year. Measured by intensity at 8.8 kilograms of CO2 per BOE for 2024, the decrease was 44% year-over-year. Our single-digit intensity placed Vista well within the first quartile of global oil and gas operations, materializing our ambition to become a low-cost, lower emissions upstream producer. To achieve this, we increased the offtake of renewable energy in our operations, replacing gas-fired power generation. This includes the start-up of the first gas compression station powered by renewable energy in Latin America.

Neil: We have also bottleneck in Bakken water sewer company, securing an additional 50000 barrels oil per day of transportation.

Neil: Our network capacity in the project.

Miguel Galuccio: During 2024, we made solid progress in reducing the carbon footprint in our operation. We reduced our total SCOPE 1 and 2 emissions by 28% compared to 2023, even as we increased total production during the year. measured by intensity at 8.8 kilograms of CO2 per VOE for 2024. The decrease was 44% year-over-year. Our single-digit intensity placed Vista well within the first quartile of global oil and gas operations, materializing our ambition to become a low-cost, lower-emissions, upstream producer. To achieve this, we increase the uptake of renewable energy in our operations. Replacing Gas-Fired Power Generators. This includes the start-up of the first gas compression station powered by renewable energy in Latin America.

Neil: During 2024, we made solid progress in reducing the carbon footprint in our operations.

Neil: We reduced our total scope, one and two emissions by 28% compared to 2023, even as we increased total production during the year.

Neil: Measured by intensity at $8, eight Quito and unless you are too.

Neil: For 2024.

Neil: <unk> was 44% yet already yet.

Neil: Our single digit intensity plays beat that way within the first quarter theme of global oil and gas operation materialized in our ambition to become a low cost lower emissions upstream producer.

Neil: To achieve this we increased the offtake of renewable energy in our operation.

Neil: Replacing gas fired power generation.

Neil: These include the start up of deferred gas compression station power about renewable energy in Latin America.

Miguel Galuccio: We also made improvements in vapor recovery units to improve reliability. and construct a gas pipeline from Aguada Federal to Bajada del Palo Oeste to increase gas evacuation capacity.

Miguel Galuccio: We also made improvements in vapor recovery unit to improve reliability and construct a gas pipeline from Aguada Federal to Bajada del Palo Este to increase gas evacuation capacity. Moving to nature-based solution front, our subsidiary, iQED, made solid progress across all verticals. We planted 1,800 hectares combining afforestation and reforestation projects in Corrientes and Formosa provinces. We also completed critical facilities, including fire protection, fences, water wells, and housing in our forest conservation project in Salta. Finally, we increased the amount of hectares under management in our regenerative livestock and agriculture project in San Luis, Córdoba, and Buenos Aires. During 2024, we have continued to deliver strong financial metrics, resulting in superior total shareholder returns. Adjusted EBITDA increased by 25% year over year to $1.1 billion, above the midpoint of our annual guidance range. ROCE remained strong at 24%, specifically as it is measured at year-end.

Neil: We also made improvements in vapor recovery unit to improve.

Neil: And construct a gas by line from <unk> to <unk> by the way to introduce gas evacuation capacity.

Miguel Galuccio: Moving to nature-based solutions front, our subsidiary ICET made solid progress across all verticals. We planted 1,800 hectares combining afforestation and reforestation projects in Corrientes and Formosa provinces. We also completed critical facilities, including fire protection, fences, water wells, and housing in our forest conservation project in Salva. Finally, we increased the amount of hectares under management in our regenerative livestock and agricultural projects in San Luis, Córdoba and Buenos Aires.

Neil: Moving to natural based solutions front, our subsidiary <unk> made solid progress across all verticals.

Neil: We planted 1800 excess combining afforestation and reforestation projects in Korea, <unk> and <unk>.

Neil: Most of the provinces.

Neil: We also completed physical facilities, including fire protection fences water west on housing.

Neil: Our forest Conservation project insult them.

Neil: Finally, we increased the amount of excess under management in our reaching at 80 livestock and agriculture pressured given salary Cordoba Moreno situs.

Miguel Galuccio: During 2024, we have continued to deliver strong financial metrics, resulting in superior total shareholder returns. Accessibility increased by 25% year-over-year to $1.1 billion, about the midpoint of our annual guidance right now. Roses remain strong at 24%. specifically as it is measured at ERM, it was negatively impacted by the issuance of $300 million of debt, which will be applied to high-return new oil capex during 2024. Without such effects, Rossi in 2024 would have been closer to 30%. strong operational and financial performance during the last three years allow us to deliver an average gross rate of 35%.

Neil: During 2024, we have continued to deliver strong financial metrics, resulting in superior total shareholder returns.

Neil: Adjusted EBITDA increased by 25%, yet already year to $1 1 billion.

Neil: Above the midpoint of our guidance range.

Neil: Proceeds remain strong at 24% at.

Neil: Specifically it is.

Neil: Mitchell at year end it was negatively impacted by the issuance of $600 million of debt, we would be applied to high returning new wave capex during 2025.

Miguel Galuccio: It was negatively impacted by the issuance of $600 million of debt, which will be applied to high return new well CapEx during 2025. Without such effect, ROCE in 2024 would have been closer to 30%. A strong operational and financial performance during the last 3 years allow us to deliver an average ROCE of 35%. EPS per share increased 18% year over year to $5 per share, reflecting solid bottom-line performance in 2024. Moreover, we continue to maintain robust financial ratios. We successfully tapped to the local and international debt market to fund the acceleration of our CapEx plan, maintaining a healthy net leverage ratio at 0.6 times adjusted EBITDA, and gross leverage ratio of 1.3 times adjusted EBITDA. Finally, we repurchased $100 million of company stock during 2024 at an average price of $48 per share.

Without such effect.

Neil: <unk> in 2024, we have been closer to 30%.

Neil: The strong operational and financial performance during the last three years allow us to deliver nevertheless proceeds of 35%.

Miguel Galuccio: EPS per share increased 18% year-over-year to $5 per share, reflecting solid bottom-line performance in 2024. Moreover, we continue to maintain robust financial relations. We successfully tapped to the local and international debt market to fund the acceleration of our CAPEX plan, maintaining a healthy net leverage ratio at 0.6 times adjusted EVDA and gross leverage ratio of 1.3 times adjusted EVDA. Finally, we repurchased $100 million of company stock during 2024 and an average price of $48 per share. This outstanding performance across all financial metrics was recognized by the market and is reflected in the evolution of our share price, which increased 83% from year-end 2023 to year-end 2021.

Neil: EPS per share increased 18% year over year to $5 per share, reflecting solid bottom line performance in 2024.

Neil: Moreover, we continue to maintain a robust financial ratios.

Neil: We successfully tapped to the local and international debt markets to fund.

Neil: The acceleration of our Capex plan, maintaining a healthy net leverage ratio at Cedar 0.6 times, adjusted EBITDA and gross Levered at a ratio of one three times adjusted EBITDA.

Neil: Finally, we repurchased $100 million of company stock during 2024, and an average price of $48 per share.

Miguel Galuccio: This outstanding performance across all financial metrics was recognized by the market and is reflected in the evolution of our share price, which increased 83% from year-end 2023 to year-end 2024. I will make some closing remarks before we move to Q&A. During 2024, we completed another year of robust operational and financial performance, having delivered again on our annual guidance. We record a solid 36% increase in total production and a P1 reserve replacement ratio of 323%. We updated our 2025 targets after securing our third drilling rig and second frac set. This allow us to bring forward the target we have initially planned for 2026 to 2025. Additionally, we secure enough oil treatment, transportation, and export capacity to deliver on our updated 2025 production target and our 2030 vision.

Neil: These are the stunning performance across all financial metrics were recognized by the market and is reflected in the evolution of our share price, which increased 83% from year end 2023, <unk> and 2024.

Miguel Galuccio: I will make some closing remarks before we move to Q&A. During 2024, we completed another year of robust operational and financial performance, having delivered again on our annual guidance. we record a solid 36% increase in total production and a P1 reserve replacement ratio of 323%. We updated our 2025 targets after securing our third drilling rig and second frag set. is allow us to bring forward the target we have initially planned for 2026 to 2024. Additionally, we secured enough oil treatment, transportation, and export capacity to deliver on our updated 2025 production target and our 2030 vision.

Neil: I will make some closing remarks before we move to Q&A.

Neil: During 2024, we completed another year of robust operational and financial performance, having delivered again on our annual guidance.

Neil: We recorded a solid 36% increase in total production.

Neil: And at <unk>, 1% replacement ratio of 323%.

Neil: We updated our 2025 target after securing our February new rig on circumflex hit.

Neil: This allow us to bring forward the target we have initially planned for 2026 to 2025.

Neil: Additionally, we secured a novel treatment transportation and export capacity to deliver on our updated 2025 production target.

Neil: Our 2030 mission.

Miguel Galuccio: We made significant reduction in greenhouse gas emissions through solid execution of the decarbonization project and made good progress in the development of our MBS portfolio. We recorded a strong financial result with an adjusted EBDA of $1.1 billion and delivered robust return measured by adjusted EBDA margin and roster. We also deliver on our superior total shareholder return proposition with a 83% stock price appreciation and a share repurchase of $100 million.

Miguel Galuccio: We made significant reduction in greenhouse gas emissions through solid execution of the carbonization project and made good progress in the development of our NBS portfolio. We recorded a strong financial result with an adjusted EBITDA of $1.1 billion and deliver robust return measured by adjusted EBITDA margin and ROCE. We also deliver on our superior total shareholder return proposition with a 83% stock price appreciation and a share repurchase of $100 million. In summary, 2024 has been an outstanding year for our company. A final comment from my side, I am very proud of our staff, their commitment and passion, which have always been key to our success. Many thanks to all of them. Operator, we can now move to Q&A.

Neil: We made significant reduction in Green house gas emissions through solid execution of the Carbonization project and me.

Neil: Made good progress in the development of our MBS portfolio.

Neil: We recorded strong financial results with an adjusted EBITDA of $1 1 billion.

Speaker Change: And deliver robust return Mitchell by adjusted EBITDA margin on a royalty.

Speaker Change: We also deliver on our superior total shareholder return proposition.

Speaker Change: 83% stock price appreciation in the share repurchase of $100 million.

Miguel Galuccio: In summary, 2024 has been an outstanding year for our company.

Speaker Change: In summary, 2024 has been an outstanding leader for our company.

Miguel Galuccio: A final comment from my side. I am very proud of our staff, their commitment and passion. We have always been key to our success. Many thanks to all of you.

Speaker Change: A final comment from my side.

Speaker Change: I am very proud of our staff their commitment and passion, we have always been key to our success.

Speaker Change: The thing to all of them.

Operator: Operator, we can now move to Q&A. Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone. To remove yourself from the queue, you may press star 11 again. We ask that you please limit yourself to one question. Please stand by while we compile the Q&A roster.

Speaker Change: Operator, we can now move to Q&A.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone. To remove yourself from the queue, you may press star one one again. We ask that you please limit yourself to one question. Please stand by while we compile the Q&A roster. Our first question comes from Bruno Montanari of Morgan Stanley. Your question, please, Bruno.

Speaker Change: Thank you as a reminder to ask a question you will need to press star one one on your telephone.

Speaker Change: Move yourself from the queue you May press Star one again.

Speaker Change: We ask that you please limit yourself to one question. Please standby, while we compile the Q&A roster.

Bruno Montanari: Our first question comes from Bruno Montanari of Morgan Stanley. Your question, please, Bruno. Good morning, Miguel, Alejandro, and Jim. Thanks for taking my question. I wanted to focus on production. If you could talk about the setup for production now in the first quarter of the year and how we should think about the trajectory throughout the following quarters, by the end of the year, it would be great. Thank you very much.

Speaker Change: Our first question.

Bruno Montanari: Comes from Bruno Montanari.

Bruno Montanari: Morgan Stanley Your question please Bruno.

Bruno Montanari: Good morning, Miguel, Ale, and team. Thanks for taking the question. I wanted to focus on production. If you could talk about the setup for production now in Q1 of the year, and how we should think about the trajectory throughout the following quarters by the end of the year, it would be great. Thank you very much.

Good morning.

Bruno Montanari: Thanks for taking my question.

Bruno Montanari: Just a follow up.

Bruno Montanari: Any production.

Bruno Montanari: Talk about the setup for <unk>.

Bruno Montanari: Reduction in the first quarter first quarter of the year.

Bruno Montanari: How we should think about that trajectory throughout the following quarters by the end of the year. It would be great. Thank you very much.

Miguel Galuccio: Hi, Bruno, and thanks for your question. I would like to take the opportunity of that question to explain how we plan our development that drive our production forecast. I think you were spot on with your comment in your report when you said that we have to look to the fully agro number.

Miguel Galuccio: Hi, Bruno. Thanks for your question. I would like to take the opportunity of that question to explain how we plan our development that drive our production forecast. I think you were spot on with your comment in your report when you state that we have to look to the full year growth numbers. The two principal things that guide our development plan are how to optimize our operational efficiency and also how we optimize the productivity of our wells. Every time that our people plan the development for the year and for the life of the well, they are looking at the NPV. They are not looking at how I will report quarterly to you. Unfortunately, that will make my work a bit more difficult. I'm sure if you do it the other way, they will destroy value.

David: David Thanks for your question.

David: I'd like to take the opportunity of that question to explain how we plan our development that drive our production forecast.

David: I think you are spot on with your comment and your reported when you state that we have to look to the full year growth numbers.

Miguel Galuccio: The two principal. Things that guide our development plan are how to optimize our operational efficiency. and also how we optimize the productivity of our wealth. So every time that we, our people plan the development for the year and for the life of the well, they are looking at the NPV. They are not looking at how I will report accordingly to you. And unfortunately that will make my... might work a bit more difficult, but I'm sure if you do it the other way, they will destroy value. In 2024, we grew 36% year-on-year, and we grew 51% Q4 2023 to Q4 2024.

David: The two principal.

David: Since that guide our development plan.

David: How to optimize our operational efficiency.

David: And also how we optimize the productivity of our what.

David: So every time that we our people.

David: The development for the year.

David: For the life of the well they are looking at the NPV. They are not looking at how I would've reported quarterly to you.

David: Unfortunately that will make my.

David: My work a bit more difficult, but I am sure. If you do it in a way that will be through value.

Miguel Galuccio: In 2024, we grew 36% year on year. We grew 51% Q4 2023 to Q4 2024. We average, in the year, 70,000 barrel oil per day. For 2025, we have guide 95 to 100 barrel oil per day, would imply a growth of 35% to 40%. This is the number that we have to look at. Now, if we go to Q1, and then back to your question, Q1 2025, we are expecting flat to a bit lower production on sequential basis. This is driven by two factors. When we planned Q1, new well connection will slightly delay activity to time with all the expansion ramp-up. We peak at around 17,000 barrel oil per day of tracking around mid-December. Planning for production growth in Q1 will have implied increasing the tracking fleet in January, prior to a ramp down in February, in line with all the well commissioning.

David: In 2020 before do we grow we grew 36%.

David: One year and we grew 51%.

David: Q4, 2023 to Q4 2024.

Miguel Galuccio: We average, in the year, 70,000 barrels per day. For 2025, we have gained 95 to 100 barrels per day, which implies a growth of 35% to 40%. This is the number that we have to look at. Now, if we go to Q1, and then back to your question, Q1 2025, we are expecting flat to a bit lower production of sequential basis. This is driving by two factors. When we plant Q1, new well connection with slightly delayed activity to time with the Old Elba expansion ramp. We pick up a series of tracking around mid-December. and planning for production growth in Q1, we have implied increasing the tracking fleet in January prior to a rundown in February in line with all the VAL commissioning.

David: We are.

David: In the year 70000 barrels of oil per day.

David: For 2025, we have Guy 95, two <unk> per day.

David: It would imply a growth of 35% to 40%.

David: This is a number that we have to look at now.

David: We go through Q1, and then back to your question.

David: Q1, 2025, we are expecting flat to a bit lower production on a sequential basis.

David: It is driving by two factors when we planned Q1, new well connections with slightly delay activity to time, we do really well by the function ramp up.

David: We began sampling silicon battlefield tracking around mid December.

David: I'm planning for production grow in Q1, we have implied increasingly attracting fitness January a year or two.

David: To ramp up to a run down in February in language or the value Commission.

Miguel Galuccio: So that will be complicated from logistic and contractual point of view. So we end up planning for the quarter, as I said, with flat to probably a slightly lower production. Additionally, it's fair to comment that we entered January with a slightly lower production than we expected, as we have delay in connecting four parts for the year. Now, again, to achieve the 95K or 100K average in 2025, we plan to ramp up production with a big ramp up in Q3 and Q4. And also, we will see a bit of ramp up in time in Q2.

Miguel Galuccio: That will be complicated from logistic and contractual standpoint of view. We end up planning for the quarter, as I said, with flat to probably a slightly lower production. Additionally, it's fair to comment that we enter January with a slightly lower production than we expected, as we have delay in connecting 4 pads for the year. Again, to achieve the 95,000 or 100,000 at average in 2025, we plan to ramp up production with a big ramp-up in Q3 and Q4. Also, we will see a bit of ramp-up in time in Q2. I hope I have answered your question. Again, thank you for your comment in your report.

David: So that will be complicated from logistic and contractual exterior view. So we ended up planning for the quarter as I said with flat to probably slightly lower production.

David: Additionally, it's fair to comment that we entered January with slightly lower production than we expected we have delay in connecting 45 for the year.

David: Now again to achieve the knife fight.

David: 95, <unk> hundred paid.

David: I'll be at Ash in 2025.

David: We plan to ramp up production.

David: With a big ramp up in Q3, and Q4 and also we will see maybe the ramp up in dine in future.

Miguel Galuccio: So I hope I have answered your question. And again, thanks for your comment in your report.

David: So I hope I have Ontario question and again same for your comment in the report.

Bruno Montanari: Super. Thank you very much, Miguel. Thank you.

Bruno Montanari: Super. Thank you very much, Miguel.

David: Thank you very much.

Operator: Thank you. Our next question comes from Andrés Cardona of Citi. Please go ahead, Andre.

Andres Cardona: Our next question. comes from Andres Cardona of Citi. Please go ahead, Andres. Thank you. Good morning, everyone.

Speaker Change: Thank you our next question.

Speaker Change: Comes from Andres Cardona with Citi. Please go ahead Andre.

Andrés Cardona: Thank you. Good morning, everyone. Miguel, following on the how to forecast production of maybe going towards 2026, linking it with the Vaca Muerta Sur expansion, could you please provide us an update about the status of the project, the key dates of midstream capacity addition? How are you planning the production evacuation between whenever you feel the capacity at Oleoductos del Valle until the first capacity from Vaca Muerta Sur is available?

Andre Cardona: Thank you and good morning, everyone.

Andres Cardona: Miguel, following on how to forecast production of baby going towards 2026. and linking it with the Bacamuerta South expansion.

Speaker Change: Michel following on the on how to forecast for the auction maybe going towards 2026.

Andre Cardona: Linking it with the about commodity.

Speaker Change: Solid expansion could you. Please provide us an update on the status of the project debates key rates of capacity midstream capacity and he's.

Andres Cardona: Could you please provide us an update about the status of the project, the dates of key dates of capacity, mixing capacity addition? How are you planning the production, evacuation between whenever you feel the capacity along until the first capacity from Bacamuerta South?

Andre Cardona: He has shown how are you planning.

Andre Cardona: The prolonged Sean.

Andre Cardona: Equation between.

Andre Cardona: Whenever you feel.

Andre Cardona: <unk> bile.

Andre Cardona: The bears.

Andre Cardona: Thank you.

<unk> is already known.

Andres Cardona: Hi, Andres. Thank you for your question.

Miguel Galuccio: Hi, Andrés, thank you for your question. I think the main part of evacuation capacity that today is under contraction or under discussion is VMOS. Let me give you an update on that one to begin with. We are seeing very good progress in that project. We already signed all the relevant documents related to the shareholder rights. I think also we need security field transportation for capacity. That capacity, as a reminder, is 50,000 barrel oil per day for us. We know that the main EPC contractors has been awarded the construction of the pipe, also the storage tank at the terminal, and as well the port. Also, we know that the purchase order for the long-lead items has been placed. In our estimation, we expect that project to be ready in mid 2027. The rest of the capacity is Oleoductos del Valle.

Andre Cardona: Hi, Andres and thank you for your question I think the main part of my question.

Andres Cardona: I think the main part of evacuation capacity that today is under contraction or under discussion is BEMO. So let me give you an update on that one to begin with. So we are seeing very good progress in that project. We already signed all the relevant documents related to the shareholder rights. I think also we need securing field transportation for capacity. That capacity, as a reminder, is $50,000 per day for us. We know that the main EPC contractors have been awarded the construction of the pipe, also the storage tank at the terminal, and as well the port.

Andre Cardona: <unk> capacity.

Andre Cardona: Today is.

Andre Cardona: Under construction or under discussion is very much. So let me give you an update on that one too.

Andre Cardona: To begin with.

Andre Cardona: So we are seeing very good progress in that project.

Andre Cardona: We already signed.

Andre Cardona: All the Revlon document related to the shareholder right. I think also we did securing firm transportation capacity.

Andre Cardona: That capacity.

Andre Cardona: A reminder, a 50000 barrel of oil per day for us.

Andre Cardona: We know that the main EPC contractor has been award the contraction of the pipe.

Andre Cardona: Also the storage tank at the terminal as.

Andre Cardona: Well report.

Andres Cardona: Also, we know that the purchase order for the loan-lid items has been placed, and in our estimation, we expect that project to be ready in mid-2027.

Andre Cardona: Also we note that the purchase order for the long lead items have been placed.

Andre Cardona: And in.

Andre Cardona: In our estimation, we expect that project to be ready in week 2027.

Andres Cardona: The rest of the capacity is Sol del Val, that we know that, as you know, is going to be ready in Q2. And the rest, we have all in hand.

Andre Cardona: The rest of the capacity sold in bulk.

Miguel Galuccio: That we know that, as you know, is going to be ready in Q2. The rest we have all in hand. I think, going forward and looking to the future, the main thing for the medium long term for us is Vaca Muerta Sur.

Andre Cardona: But we know that the as you know.

Andre Cardona: We're going to be ready in Q2.

Andre Cardona: And the rates that we have already done so.

Andres Cardona: So, I think, going forward and looking to the future, the main thing for the medium-long term for us is Vaca Muerta Sol. Thank you.

Andre Cardona: So I think.

Andre Cardona: Going forward and looking to the future. The main theme for the medium long term for us is <unk>.

Operator: Thank you. Our next question comes from Tasso Vasconcellos of UBS. Please go ahead, Tasso.

Andre Cardona: Thank you.

Tasso Vasconcellos: Our next question comes from Tasso Vasconcellos of UBS. Please go ahead, Tasso. Hi, Miguel. Hi, everyone. Thanks for taking my question here. Miguel, Vista has been able to increase the equipment set in the past two years, bringing additional drilling rigs and preg set and so on. So a question we have is on the internal process, the mindset from the company to evaluate eventually signing a fourth drilling rig. And, of course, eventually increasing further the potential of annual wells drilling.

Speaker Change: Our next question comes from <unk> Vasconcellos of UBS. Please go ahead also.

Tasso Vasconcellos: Hi, Miguel. Hi, everyone. Thanks for taking my question here. Miguel, Vista has been able to increase the equipment set in the past years, bringing additional drilling rigs and frac set and so on. A question we have is on the internal process, the mindset from the company to evaluate eventually signing a fourth drilling rig, and of course, eventually increasing further the potential of annual wells drilling. Maybe split the question here in two parts. What are the main metrics, the main drivers vis-à-vis the main risks and bottlenecks that the company look at when deciding to bring additional drilling rigs? The second part of the question, if you do decide to bring this additional drill rig, the fourth one, what could be the timing for such decision, and how could this impact the current guidance of 52 to 6 wells per year?

Speaker Change: Jaime Gail Hi, everyone. Thanks for taking my question here.

Speaker Change: You get LTE visa has been able to increase the Depomed said in the past two years, bringing additional drilling rigs and frac sand and so on so a question. We have is on the <unk>.

Speaker Change: There are no process.

Speaker Change: <unk> said from the company to evaluate eventually signing up for Julian week and of course, eventually increase even further the potential of annual wells.

Tasso Vasconcellos: So maybe split the question here into parts. What are the main metrics, the main drivers, vis-à-vis the main risks and bottlenecks that the company looks at when deciding to bring additional drilling rigs? And the second part of the question, if you do decide to bring this additional drilling rig, the fourth one, what could be the timing for the decision? And how could this impact the current guidance of 52 to 60 wells per year? This is my question. Thank you.

Speaker Change: So maybe split the question in two parts what are the main metrics. The main drivers of this.

Speaker Change: Are these the main risks and bottlenecks that the company look at when deciding to bring additional Julien weeks and the second part of the question.

Speaker Change: If you do decide to break these additional <unk> week the 401.

Speaker Change: What could be the timing for <unk> decision and how could this impact the current guidance of 52 to six wells per year using my question. Thank you.

Tasso Vasconcellos: This is my question. Thank you.

Tasso Vasconcellos: Thank you Tasso, very good question. We have discussed and we have the option to get the four rigs from NABOR, a company we have in a strategic relationship, as you know, all rigs that we run today are coming from them and this discussion is always ongoing. So, we have a board rig available to bring in at the same term of condition that we have had due to the relationship that we have with them. In terms of the decision-making process to make that call. I would say there are two probably main elements. that we are following and it will have to be positive for us to consider that.

Miguel Galuccio: Thank you, Tasso. Very good question. We have discussed, and we have the option to get a fourth rig from Nabors, a company we have on a strategic relationship, as you know. All rigs that we run today are coming from them, and this discussion is always ongoing. We have the fourth rig available to bring in at the same terms of condition that we have had due to the relationship that we have with them. In terms of the decision-making process to make that call, I will say there are two probably main elements that we are following, and it will have to be positive for us to consider that. One is related to Andrés' question before, is the midstream project. Having the capacity in hand to have evacuation. I will say the second one, in my view, is Brent prices.

Speaker Change: Thank you Doug so very good question so.

Speaker Change: We have discussed and we have the option to redeem four leak through enabled.

Speaker Change: A company we have on a strategic relationship as you know.

Speaker Change: All rigs that we're running today coming from then on this discussion is always ongoing.

Speaker Change: So.

Speaker Change: We have a rig available to begin at the same time a condition that we have.

Speaker Change: Due to the relationship that we have we then in term of the decision making process to make that call.

Speaker Change: <unk> said that they.

Speaker Change: They are two probably main.

Speaker Change: Elements.

Speaker Change: We are following.

Speaker Change: We have to be positive for us to consider that.

Tasso Vasconcellos: One is related to Andres' question before, is the midstream project. So having the capacity in hand to have evacuation. And I will say the second one, in my view, is brand prices. I think we know we are looking at 2025 with softer brand prices that we saw in 2024. And if it's within our forecast range, I think it's something that we will consider at some point of time. If it's something changed, it's clearly a no-go. So those are the main two factors that we will be looking into. All right, thank you. Thank you.

Speaker Change: One is related to <unk> question before.

Speaker Change: Midstream project, so having the capacity income.

Speaker Change: To have evacuation.

Speaker Change: And as we've said the second one in my view is Brent prices.

Miguel Galuccio: I think, as we know, we are looking at 2025 with softer Brent prices than we saw in 2024. If it's within our forecast range, I think it's something that we will consider at some point of time. If something change, it's clearly a no-go. That are the main two factors that we will be looking into.

Speaker Change: I think.

Speaker Change: So we are looking at 2025.

Speaker Change: Softer Brent.

Speaker Change: Prices that we saw in 2024.

Speaker Change: In our forecast range I think it's something that we would consider at some point of time, if he has something changed.

Speaker Change: It's clearly a novel so that are the main two factor that we will we will be looking each.

Tasso Vasconcellos: All right. Thank you.

Speaker Change: Alright, thank you.

Operator: Thank you. Our next question comes from Alejandro Demichelis of Jefferies. Please go ahead, Alejandro.

Speaker Change: Thank you.

Speaker Change: Our next question comes from Alejandro Demichelis of Jefferies. Please go ahead Alejandro.

Alejandro Demichelis: Yes. Good morning, gentlemen. Thank you very much for taking my question. Miguel, I think you mentioned in your remarks that the pipe and the Oldelval expansion is completed, and you expect the full ramp up by the end of this quarter. Is that right? Just to confirm that. If that is the case, how do you see your cost evolving during the rest of the year?

Speaker Change: Yes, good morning, gentlemen, thank you very much for taking my question.

Speaker Change: I think you mentioned.

Speaker Change: Our remarks that the pipe <unk> is completed and you expect the full ramp up by the end of this quarter is I'll try just to confirm that.

Alejandro DeMichelis: And if that is the case, how do you see your cost evolving during the rest of the Hi, Alejandro. Thank you for your question. So in case of LLVAL, the pipeline contraction is already finalized. The line pipe is in the pipe now. And we are already seeing a ramp up in flowing volumes. So based on the information that we have, we expect a continued ramp up and have full capacity available in Q1 and early Q2. As you know, this will add 315,000 barrels of oil per day to the system, what corresponds 31,500 barrels of oil per day for Vista.

Speaker Change: And if that is the case, how do you see your cost evolving during the rest of the.

Miguel Galuccio: Hi, Alejandro. Thank you for your question. In case of Oldelval, the pipeline construction is already finalized. The line pipe is in the pipes now, and we are already seeing a ramp up in flowing volumes. Based on the information that we have, we expect a continued ramp up and have full capacity available end of Q1 and early Q2. As you know, this will add 315,000 barrels per day to the system, what corresponds 31,500 barrels of oil per day for Vista. We also know that the expansion of the port terminal is also moving forward. Also we have been informed that it's a good progress on the storage tank and dock. I believe Oldelval is a reality already, and we have access to that.

Alejandro DeMichelis: Hi, Alejandro.

Alejandro DeMichelis: Thank you for your question so.

Speaker Change: <unk> engaged overlaid by the byline contraction is already finalized.

Alejandro DeMichelis: The line is.

Alejandro DeMichelis: <unk> seen the pipe now and we are already seeing a ramp up in <unk>.

Alejandro DeMichelis: Flowing volumes.

Alejandro DeMichelis: So based on the information that we have we expect a continued ramp up on.

Alejandro DeMichelis: Full capacity available annual Q1.

Alejandro DeMichelis: Early Q2.

Alejandro DeMichelis: As you know this will add 350000 barrels per day to the system with current Poland 31500 barrel of oil.

Alejandro DeMichelis: For beta.

Alejandro DeMichelis: We also know that the expansion of the port terminal is also moving forward. So also we have been informing that it's a good progress on the storage tank and dock.

Alejandro DeMichelis: We also know that the function of the board terminology social moving forward.

Alejandro DeMichelis: So also we have been informing that is a good progress on the storage tanks and book so.

Alejandro DeMichelis: So. I believe all that value is a reality already, and we have access to that. In terms of cost, clearly that will have a big impact to us on the tracking front. In mid-December, we picked 30,000 barrels per day on tracking, and the cost went up all the way up north of $20 per barrel. So in Q2, all that cost is going to disappear, and clearly that will impact heavy debt. So it's good news for us that Old El Valle finally came through.

Alejandro DeMichelis: I believe <unk> Valley Sad reality already and we have access to that in Denmark course.

Miguel Galuccio: In terms of cost, clearly that will have a big impact to us on the trucking front. In mid-December, we peaked at 30,000 barrels per day on trucking, the cost went up all the way up north of $20 per barrel. In Q2, all that cost is going to disappear, clearly that will impact EBITDA. It's good news for us that Oldelval finally came through.

Alejandro DeMichelis: Clearly that we have.

Alejandro DeMichelis: A big impact to us on the tracking from.

Alejandro DeMichelis: In mid December we pick a 30000 barrel per day on collecting on.

Alejandro DeMichelis: Because wind went up all the way up north of $20 provided.

Alejandro DeMichelis: So in Q2 was that cost is going to disappear.

And clearly that will impact EBITDA.

Alejandro DeMichelis: So.

Alejandro DeMichelis: Is it good news for us.

Alejandro DeMichelis: Well finally came through.

Alejandro Demichelis: That's great. Thank you. In terms of the other costs, so lifting costs and drilling costs, how are you thinking about those evolving?

Alejandro DeMichelis: Great, thank you. And in terms of the other course, so lifting course and drilling course, how are you thinking about those? A drilling cost, I think, we don't see the drilling cost going up. during the year and lifting costs. As you know, we are planning to be slightly down to 2024. Thank you.

That's great. Thank you.

Alejandro DeMichelis: And in terms of the other costs, so lifting cost in drilling cost.

Alejandro DeMichelis: How are you thinking about those evolving.

Miguel Galuccio: Drilling costs, I think we don't see the drilling costs going up during the year. Lifting costs, as you know, we are planning to be slightly down to 2024.

Alejandro DeMichelis: Our drilling cost I think is.

Alejandro DeMichelis: We don't see the unit cost.

Alejandro DeMichelis: Going up.

Alejandro DeMichelis: During the year.

Alejandro DeMichelis: <unk>.

Alejandro DeMichelis: And lifting costs as you know we are planning to be slightly down to 2024.

Alejandro Demichelis: That's clear. Thank you.

Alejandro DeMichelis: Okay. Thank you.

Operator: Thank you. Our next question comes from Bruno Amorim of Goldman Sachs. Your line is open, Bruno.

Alejandro DeMichelis: Thank you our.

Alejandro DeMichelis: Our next question comes from Bruno Amorim Goldman Sachs. Your line is open Bruno.

Bruno Amorim: Thank you. Good morning, everybody. Hi, Miguel, Alejandro, and team. Thanks for taking my question. Can you please comment on your views for the overall M&A environment in Vaca Muerta? Some foreign players decided to leave, but not all of them necessarily operate the assets. Are those still your potential targets, given some assets are operated by your local competitors? What can you comment on the M&A environment? Thank you.

Speaker Change: Thank you good morning, everybody, Hi, Miguel Alejandro and team. Thanks for taking my question.

Bruno Amarim: Can you please comment on your views for the overall M&A environment in Vaca Muerta? You know, some foreign players decided to leave, but not all of them necessarily operate the assets. You know, are those still your potential targets, given some assets are operated by your local competitors? You know, what can you comment on the M&A environment?

Speaker Change: Can you please comment on your views for the overall M&A environment, and Viacom where it some.

Speaker Change: Some foreign players decided to leave but not not all of them necessarily operate the assets are relative to your potential targets. Given some assets are operated by your local competitors. What can you comment on the M&A environment. Thank you.

Miguel Galuccio: Thanks, Bruno, for your question. As you know, I mean, we called for a shareholder meeting that will take place next Monday to prepare Vista to be prepared for potential M&A activity. Our attitude, the way that we are, we are always very pragmatic. As we said, discipline and opportunistic on the M&A front. So we are always looking at everything that is happening that match with our focus that is still being back and forth at Shale Oil. So I think to answer your question, you have to take that we are disciplined, pragmatic, and opportunistic. So we will look at everything that is on the table on that respect.

Miguel Galuccio: Thanks, Bruno, for your question. As you know, we called for a shareholder meeting that will take place next Monday to prepare Vista to be prepared for potential M&A activity. Our attitude, the way that we are, we are always very pragmatic. I will set discipline and opportunistic on the M&A front. We are always looking on everything that is happening that match with our focus that is still being Vaca Muerta shale oil. I think, to answer your question, you have to take that we are disciplined, pragmatic, and opportunistic. We will look at to everything, okay, that is on the table on that respect. We've been proving to be pretty good on the buy side as well. Thanks for your question, Bruno.

Speaker Change: Thanks <unk> for your question.

Speaker Change: As you know.

Speaker Change: We call for the shareholder meeting that will take place next Monday to prepare Mr. <unk>.

Speaker Change: <unk> been up there for potential M&A activity.

Speaker Change: I would actually do the way that we are we are always very pragmatic.

Speaker Change: We sit.

Speaker Change: <unk> discipline.

Speaker Change: On.

Speaker Change: And opportunistic on the M&A front.

Speaker Change: So we are always looking and everything that this company that much with our focus that are still being.

Speaker Change: But come out of the shale oil.

Speaker Change: So I think.

Speaker Change: To answer your question you have to take that we are disciplined pragmatic opportunistic. So we will look at to everything that is on the table on that respect.

Miguel Galuccio: and we've been proven to be pretty good on the big side as well.

Speaker Change: And we've been proving to be pretty good on the <unk> side as well.

Bruno Amarim: Thanks for your questions, Bruno. Thank you.

Thank you for your question Bruno.

Bruno Amorim: Thank you.

Speaker Change: Thank you.

Operator: Thank you. Our next question comes from Milene Carvalho of JPMorgan. Please go ahead, Milene.

Speaker Change: Thank you.

Melin Carvalho: Our next question comes from Melin Carvalho of J.P. Morgan. Please go ahead, Melin.

Speaker Change: Next question comes from Merlin Carvajal.

Speaker Change: J P. Morgan. Please go ahead.

Melin Carvalho: Hello, everyone, thank you so much for the opportunity and congrats on the results. One of the things that we have been discussing with investors is whether brand prices could change and how operations impact. We are seeing accommodation at the lower level, and at JP we do expect it to go a little bit lower. So if you could please comment on how do you see those impacting operations and how the flexibility of CAPEX considers the brand prices at lower levels.

Milene Carvalho: Hello, everyone. Thank you so much for the opportunity, and congrats on the results. One of the things that we have been discussing with investors is whether Brent prices could change somehow operations and CapEx. We are seeing accommodation at a lower level, and at GP, we do expect it to go a little bit lower. If you could please comment on how do you see this impacting operations, and how the flexibility of CapEx considers the Brent prices at lower levels?

Merlin Carvajal: Hello, everyone. Thank you so much for your for Attunity and congrats on the results.

Merlin Carvajal: One of the things that we have been discussing with investors is rather brand prices could change somehow operations and Capex we are seeing.

Merlin Carvajal: Accommodation of a lower level and at JP with helix pocketed to go a little bit lower so he can't please comment on how do you see that impacting operations and how the flexibility of Capex considers that brand prices at lower levels.

Miguel Galuccio: Jaime Lene, thank you very much for your question. When we look at the downside risk in Brent, And we look at this year, I mean, we see, as I mentioned before, a supply-demand fundamental to be with a market that would be softer than we have seen in in 2024. This is mainly driven by the low oil demand, which is forecast to grow only one million barrels during this year. And on the other hand, on the supply side, we see at least 1.2 million barrels coming in, driven by Brazil, USA. Guyana also is coming with an increase.

Miguel Galuccio: Hi, Milene. Thank you very much for your question. When we look at the downside risk in Brent, and we look at this year, we see, as I mentioned before, the supply-demand fundamentals to be with a market that will be softer than we have seen in 2024. This is mainly driven by the low oil demand, which is forecast to grow only 1 million barrels during this year. On the other hand, on the supply side, we see at least 1.2 million barrels coming in, driven by Brazil, USA, Guyana also is coming with an increase, Canada, and interestingly enough, Argentina also appear in the list with an increase of 100,000 barrels per day. We have built our plan with a price assumption of Brent in a range of $70 to $80. This implies $63 to $72 of reliable prices.

Merlin Carvajal: Thank you very much for your question.

Merlin Carvajal: When.

Merlin Carvajal: When we look at the downside risk in brand.

Merlin Carvajal: Sure.

Merlin Carvajal: And we look at this year I mean, we see as I mentioned before the supply demand fundamentals to be with the market that would be softer than we have seen.

Merlin Carvajal: In 2024.

Merlin Carvajal: This is mainly driven by the low oil demand, which is forecast to grow only one medium barrel during this year.

Merlin Carvajal: On the other to come on the supply side.

Merlin Carvajal: We see a lease.

Merlin Carvajal: One 2 million barrels coming in.

Merlin Carvajal: Driven by Brazil USAID.

Merlin Carvajal: China also is coming with increased Canada.

Miguel Galuccio: Canada and, interestingly enough, Argentina also appear in the list with an increase of 100,000 barrels per day.

And interesting enough Argentina also appear in the lease with an increase of 100000 barrels per day.

Miguel Galuccio: So we have built our plan. with a price assumption of a range of $70 to $80. This implies $63 to $72 of rally oil prices. And we are currently seeing Q1 prices on the higher part of this range that we have forecast. So Q1 is coming ahead of what we planned. If the reliable prices are between 65 and 67, we will probably maintain our current price. In case, as we said, that the real life prices go below 55, then we will consider adjusting our capital investment for the year. As you know, we have a super flexible portfolio.

Merlin Carvajal: So we have built our plan.

Merlin Carvajal: With a price assumption of brand of we're in a range of 70 to $80. This implies 63 to <unk> 72.

Merlin Carvajal: <unk> prices.

Miguel Galuccio: We are currently seeing Q1 prices on the higher part of this range that we have forecast. Q1 is coming ahead of what we planned. If the reliable prices are between $65 and $67, we will probably maintain our current plan. In case, as we said, that the reliable prices go below $55, we will consider adjusting our capital investment for the year. As you know, we have a super flexible portfolio. We always said that we have a short cycle CapEx since the drilling and the completion take almost a month. We always have the flexibility to stop and also to accelerate. These are the parameters that you need to think that will drive for us to review our CapEx plan. I don't forecast that we will be below $55 this year, but we have the ability to react if that happens.

Merlin Carvajal: We are currently see Q Q1 prices.

Merlin Carvajal: Hi, Ed on the higher part of this range.

Merlin Carvajal: We have forecast for Q1 is coming.

Merlin Carvajal: Ahead of where we planned.

Merlin Carvajal: So.

Merlin Carvajal: If either a local prices.

Merlin Carvajal: <unk> 65.

67.

Merlin Carvajal: We will probably maintain our current plan.

In case, we said that the.

Merlin Carvajal: Realized prices go below 55.

Merlin Carvajal: Then we will consider adjusting our capital investment for the year.

Merlin Carvajal: As you know we have a super flexible portfolio, we always said that we have a shorter cycle.

Melin Carvalho: We always said that we have a short cycle. CAPEX sees the drilling and the completion take almost a month so we always have the flexibility to stop and also to accelerate. So, but these are the parameters that you need to think that will drive for us to review our CAPEX plan. I don't forecast that we will be below 55 this year, but we have the ability to react if that happens. All right, thank you very much. You're welcome, Milene. Thank you.

Merlin Carvajal: Capex.

Merlin Carvajal: Since the beginning the completion take.

Merlin Carvajal: Almost demand.

Merlin Carvajal: So we are always and have the flexibility to adopt and also to escalate.

Merlin Carvajal: But this Saturday, but I met a bit of a unique thing that will drive for us to review our Capex plan.

Merlin Carvajal: I don't forecast that we will be below 50, <unk> here, we have the ability to react quickly if your desktop it.

Merlin Carvajal: Okay.

Milene Carvalho: All right. Thank you very much.

Merlin Carvajal: Alright. Thank you very much you are welcome.

Miguel Galuccio: You're welcome, Milene.

Operator: Thank you. Our next question comes from Walter Chiarvesio of Santander. Please go ahead, Walter. Walter, your line is open. Please make sure your line isn't muted.

Speaker Change: Thank you. Our next question comes from Walter <unk> of Santander. Please go ahead Walter.

Speaker Change: Walter Your line is open please make sure your line is muted using a speaker phone lift your handset.

Walter Chiarvesio: Can you hear me?

Speaker Change: Can you hear me, yes, Sir please proceed.

Operator: Yes, sir. Please proceed.

Walter Chiarvesio: Yes. Oh, sorry. Yes, hello. Thank you for taking the question. Going back to the lifting and CapEx cost, can you develop a little bit what is the impact of the super peso on that? I know that the netback margins are strong, but is that something that, or if you can quantify how much has impacted in 2024, and how do you see 2025 and looking forward, if this is something that we should be concerned, I mean, the impact of the stronger currency in Argentina? That's it from me.

Yes.

Walter Gervesio: Thank you for taking my question. Going back to the listing and capex cost, can you develop a little bit, what is the impact of the super peso on that? I know that the NEDVAC margins are strong, but is that something that, or if you can quantify how much has impacted in 2004 and how do you see 2035 and looking forward if this is something that we should be concerned? I mean, the impact of the stronger currency in Argentina.

Speaker Change: Yes, Hello, Thank you for taking my question.

Speaker Change: I mean going back to the lifting and capex costs.

Speaker Change: Yeah.

Speaker Change: Can you develop a little bit what is the impact of the super peso on that they know that the mid <unk> margins are strong but.

Speaker Change: Is that something that you can quantify how much impact in terms of <unk>, how do you see.

Speaker Change: And then finally on looking forward. If this is something that we should be.

Speaker Change: The concern I mean, the impact of the <unk>.

Speaker Change: Stronger currency in Argentina.

Walter Gervesio: That's it from me. Hi, Walter, thanks for the question. Probably starting with the lifting cost. So, as you know, I mean, we record in Q4 $4.7 per barrel. this uplifting cause that was 1% down vis-a-vis our Q3. And basically I'm explaining that because the reason of that was that we start to, we continue capturing the benefits of economy of scale. and the dynamic on the lifting cost that every time that we ramp up production, we dilute our feed cost. We also, as you mentioned, we see cost pressure during 2024 driven by the flat effects and the peso inflation.

Speaker Change: Thats It from me.

Miguel Galuccio: Hi, Walter, and thanks for the question. Probably starting with the lifting cost. As you know, we record in Q4, $4.7 per barrel. This of lifting cost, that was 1% down vis-a-vis our Q3. I'm basically explaining that because the reason of that was that we continue capturing the benefits of economy of scale and the dynamic on the lifting cost, that every time that we ramp up production, we reduce our fixed cost. We also, as you mentioned, we see cost pressure during 2024 driven by the FX effects and the peso inflation. This effect will still play a role in the cost dynamic and will continue offsetting some of the savings that we continue putting in place. We think that this effect will have a lower impact in 2025 as we assume that peso inflation continue to decelerate.

Speaker Change: Hi.

Speaker Change: Thanks for the question.

Speaker Change: Probably starting with the lifting cost.

Speaker Change: So as you know I mean, we recorded in Q4 $4 $7 per barrel.

Speaker Change: This.

Speaker Change: Lifting cost that was 1% down <unk>.

Speaker Change: Our Q3.

Speaker Change: And basically I'm playing in that because the reason of that was that we started to we continued capturing the benefits of economy of scale.

Speaker Change: And.

Speaker Change: On the dynamic on the lithium growth that every time that will ramp up production, we reviewed our feed cost.

Speaker Change: We also as you mentioned, we see cost pressure during 2024, driven by the flood effects and the peso inflation.

Walter Gervesio: These effects will still play a role in the co-dynamic and will continue offsetting some of the savings that we continue putting in place. Now, we think that this effect will be lower and will have a lower impact in 2025. As we assume that personal inflation continues to decelerate. So during 2025, we expect a slight reduction in lifting costs. as we continue to invest in cost-cutting initiatives and also as we continue increasing production. So we are guiding lifting costs between $4.3 and $4.5 per barrel. On the CAPEX side, 70% of our CAPEX, as you know, is U.S.

Speaker Change: This effect will still playing a role in the coffee NAMIC and we'll continue offset offsetting some of the savings that we continue putting in place.

Speaker Change: Now we've seen that this effect will be lower and we have.

Speaker Change: A lower impact in 2025.

Speaker Change: Yes.

Speaker Change: We assume that based on inflation continued to decelerate.

Miguel Galuccio: During 2025, we expect a slight reduction in lifting costs as we continue to invest in cost-cutting initiative and also as we continue increasing production. We are guiding lifting costs between $4.3 and 4.5 per barrel. On the CapEx side, 70% of our CapEx, as you know, is US dollar denominated, and 30% is peso denominated. We are assuming our plan that our cost of well is going to be between $14 to 14.5 million. There, I will say that one thing that we are doing that we have not communicated, but I'm happy to share with you. With the new promotion of Matías Weissel as CEO of the company, we have the benefit of having Juan Garoby, that have run the operations since the start of Vista.

Speaker Change: So during 2025, we expect a slight reduction in lifting cost.

Speaker Change: And we continue to invest in cost cutting initiative and also as we continue increase in production. So we are guiding lifting goes.

Speaker Change: Between four three and $4 $5 per barrel.

Speaker Change: On the Capex side.

Speaker Change: 70% of our topic as you know is U S dollar denominated on 30% is peso denominated.

Walter Gervesio: dollar denominated and 30% is peso denominated. We are assuming in our plan that our cost of oil is going to be between $14 and $14.5 million. There, as we said, one thing that we are doing that we have not communicated, but I'm happy to share with you, with the new, promotion of Matias Hueso, CEO of the company, we have the benefit of having Juan Garobi that have run the operation since since the start of Vista, and is not only an international and very seasoned manager, but also within his skill set, he comes from the oil contraction side.

Speaker Change: We are.

Speaker Change: We are assuming in our plan.

Speaker Change: Our cost of well is going to be between 14 and $14 five.

Speaker Change: <unk>.

Speaker Change: There are we said the one thing that we are doing that we have not communicated but I'm happy to share with you.

Speaker Change: With the with the new.

Speaker Change: <unk>.

Speaker Change: Promotion of material way to the CEO of the company.

Speaker Change: We have.

Speaker Change: <unk>.

Speaker Change: The benefit of having <unk>.

Speaker Change: Backup run the operations teams.

Speaker Change: Since the start of Vista.

Miguel Galuccio: He's not only an international and very seasoned manager, but also within his skillset, he come from the well construction side. We have asked him to start a multi-year plan to look at what we can do, not to improve the efficiency of our CapEx, but look into what we can do to change the game in term of what we do in term of well construction. We have put with him, he has built a full team, a task force, that will be focused in a multi-year effort with one really unique assignment to try what we can do to change the game and to change the way that we do things on the well construction side. I have high hope for that initiative as well. Thank you for your question.

Speaker Change: And half is not only in international.

Speaker Change: And very soon manage it but also winning key skill set he come from their well construction sites.

Walter Gervesio: So we have asked him to start a multi-year plan to look at what we can do not to. improve the efficiency of our CAPEX. but look into what we can do to change the game in terms of what we do in terms of oil contraction. So we have put with him, he has built a full team, a task force, that will be focused in a multi-year effort. with one Riri Henrique assigned to try what we can do to change the game and to change the way that we do things on the oil contraction side.

Speaker Change: So we have a scheme to got a multiyear plan to look at what we can do not to.

Speaker Change: Improved efficiency of our Capex.

Speaker Change: But look into what we can do to change the game in <unk>.

Speaker Change: <unk> of what we do in term of world contraction.

Speaker Change: So we have put with him he has built a.

Speaker Change: Team at passport.

Speaker Change: That will be focused in a multiyear effort.

Speaker Change: With one really unique assigned to.

Speaker Change: <unk> tried or what we can do.

Speaker Change: To change the game on to change the way that we do things on the world contraction site.

Walter Gervesio: So I have high hope for that initiative as well.

So I got Sky cope for that initiative as well.

Walter Gervesio: Thank you very much.

Speaker Change: Thanks for your question.

Walter Gervesio: Thank you very much for the interview.

Walter Chiarvesio: Thank you very much for the answer.

Speaker Change: Thank you very much for the answer.

Walter Gervesio: Thank you.

Operator: Thank you. Our next question comes from Leonardo Marcondes of BofA. Please go ahead, Leonardo.

Speaker Change: Thank you. Our next question comes from Leonardo Mccandless.

Leonardo Macondas: Our next question comes from Leonardo Macondas of B of A. Please go ahead, Leonardo. Hi, everyone. Thanks for my question here.

Speaker Change: Please go ahead Leonardo.

Leonardo Marcondes: Hi, everyone. Thanks for putting my question here. My question is why don't you guys accelerate the production growth by bringing more equipment to drill more wells in Argentina? If the answer is limited capital availability, why not think about potential follow-on capital increase, given that Vista has one of the best valuations in Latin America? Thank you very much.

Leonardo Mccandless: Hi, everyone. Thanks for taking my question here.

Leonardo Macondas: So my question is, why don't you guys accelerate the production growth by bringing more equipment, more wells in Argentina? And if the answer is limited capital availability, why not think about potential follow-on capital increase, given that Vista has one of the best valuation being in Latin America? Thank you very much. Thank you, Leo.

Speaker Change: My question is.

Why don't you guys accelerate the <unk>.

Speaker Change: <unk> growth by bringing more.

Speaker Change: Our equipment grew more wells in Argentina.

Bob.

Speaker Change: And if the answer is limited capital availability.

Speaker Change: I not think about.

Speaker Change: Sure.

Speaker Change: <unk> kept our inquiry.

Speaker Change: That vehicle has gone off the bat valuation.

Speaker Change: The America. Thank you very much.

Miguel Galuccio: Thank you, Leo. Very good question. I think the reason why we trade one of the highest in LATAM is because we provide a high growth with the best-in-class operational track record. As I mentioned before, Chubut last year we grow 36% year over year. This year we plan to grow again between 35% and 40%. It's not really a capital issue. As I mentioned to Kim as well, they are on track to find a sweet spot that combines the activity intensity that is required to fulfill the plan. As well as being very cautious of what is the velocity that we apply to the development of our field in order to optimize the output and NPV of the production that we put in place.

Speaker Change: Thank you very good question.

Leonardo Macondas: Very good question. I think the reason why we trade one of the highest in LATAM It's because we provide a higher growth with the best-in-class operational track record. As I mentioned before, Chubruno last year grew 36% year-over-year, and this year we plan to grow again between 35% and 40%. So it's not really a capital issue. As I mentioned to him as well, there's an art to find a sweet spot that combines the activity intensity that is required to fulfill the plan. as well as being very cautious of what is the velocity that we apply to the development of our field.

Speaker Change:

Speaker Change: I think the reason why we today one of the highest in Latam.

Speaker Change: Sure.

Speaker Change: Is because we provide the higher grow with the best in class operational track record.

Speaker Change: As I mentioned before June of last year, We grew 30 sequel, seemingly at Odeon and this year we.

Speaker Change: We plan to run again.

Speaker Change: Between $35, 40%.

Speaker Change: So it's not really a <unk>.

Speaker Change: Capital issue.

Speaker Change: As I mentioned to team as well.

Speaker Change: They are.

Speaker Change: Now to find the sweet spot.

Speaker Change: Combined.

Speaker Change: The.

Speaker Change: Activity intensity that is required to fulfill the plan.

Speaker Change: As well as being very cautious so what is the velocity.

That we apply to the development of our field.

Leonardo Macondas: in order to optimize. the output and the NPV of the production that we put in place. So as you know, as we develop our plan and we develop our field, we have a combination of intensity in development and the risking at the same time. We have to de-risk areas to make sure that we will continue drilling the best well that we can drill to maximize the value of the development of those fields.

Speaker Change: In order to optimize.

Speaker Change: The output and NPV of the production that we put in place.

Miguel Galuccio: As you know, as we develop our plan and we develop our field, we have a combination of intensity in development and de-risking at the same time. We have to de-risk areas to make sure that we will continue drilling the best well that we can drill to maximize the value of the development of those fields. Back to your question, I think it's not a matter of CapEx. I think we are growing super fast. I mean, double digits, 35%, 40% growth. We believe we are optimizing the way that we manage the reservoir, and we optimize NPV of what we are putting in place. Yes, as you mentioned, we have probably one of the best multiples. Now, I believe we also continue to be cheap. When you go back to US and you look at companies like Vista growing 35%, 40% a year.

Speaker Change: So.

Speaker Change: You know as we develop our plan and we will develop our field.

Speaker Change: We have a combination of intensity in development and the risky.

Speaker Change: At the same time, we have to be at least areas to make sure that we will we will continue drilling the best wells, we can drill.

Speaker Change: To maximize the value of.

Speaker Change: The development of those fields.

Leonardo Macondas: So. Back to your question, I think it's not a matter of CAPEX. I think we are growing super fast. I mean, double digits, 35%, 40% growth. And we believe we are optimizing the way. that we manage the reservoir and we optimize the NPV of what we are putting in place. And yes, as you mentioned, we have probably one of the best multiples. Now, I believe we also continue to be cheap when you go back to the U.S. and you look at companies like Vista growing 35%, 40% a year. Back 10 years ago, their multiple was around eight, and we're multiple today is about four.

Speaker Change: So.

Speaker Change: Back to your question I think is not a model.

Speaker Change: Capex I think we are growing super fast.

Speaker Change: This is 35, 40% growth.

Speaker Change: And we believe we are optimizing.

Speaker Change: The way.

Speaker Change: That we manage the reservoir and we optimize NPV.

Speaker Change: We are putting in place.

Speaker Change: Yes, as you mentioned we have.

Speaker Change: Probably one of the best multiples.

Speaker Change: Now I believe we also.

Speaker Change: Continue to be cheap.

Speaker Change: When you go back to U S and you look at company level, EBITDA growing 35%, 40% a year.

Miguel Galuccio: Back 10 years ago, their multiple was around 8. Our multiple today is about 4. I feel we're still cheap for the growth that we are delivering. Thanks for your question, Leo.

Speaker Change: Back 10 years ago, there are multiple was around eight.

Speaker Change: And we'll move the book today is about four so.

Leonardo Macondas: So, I feel we're still cheap for the growth that we are delivering. And thank you for your question, Leo.

Speaker Change: I feel we are still cheap for the growth that we're delivering.

Speaker Change: Thanks for your question there.

Leonardo Macondas: Thank you very much. Thank you.

Leonardo Marcondes: Got it. Thank you very much.

Speaker Change: Got it thank you very much.

Operator: Thank you. Our next question comes from Juan Jose Munoz Rios of BTG. Please go ahead, Juan.

Speaker Change: Thank you.

Juan Jose Munoz Rios: Our next question. Comes from Juan Jose Munoz Rios of BTG. Please go ahead, Juan. Hi everyone and thank you for the opportunity. Just in the Bacón Huertas project, I want to ask how much is the CAPEX associated to the project in 2025 to be deployed for by you. Thank you.

Speaker Change: Our next question.

Speaker Change: It comes from Juan Jose <unk>.

Speaker Change: BTG. Please go ahead Juan.

Juan Jose Munoz Rios: Hi, everyone, and thank you for the opportunity. Just in the Vaca Muerta project, I want to ask how much is the CapEx associated to the project in 2025 to be deployed for value? Thank you.

Speaker Change: Hi, everyone. Thank you for the opportunity.

Speaker Change: Just in the background more tasks for project.

Speaker Change: To ask how much of the Capex capex associated to the project and plant a new high speed <unk> for you.

Speaker Change: Thank you.

Juan Jose Munoz Rios: Hi Juan José, thanks for your question. So first, probably, we want to comment that we separate CAPEX from investment. So CAPEX, we still expect to be between $1.1 and $1.3 billion. And that does not include the background worth of food investment. The total project investment for Bacamorta Sur is estimated at around $3 billion. There is a potential bank financing of 40-60% of that project. So in our calculation, we are assuming that our equity investment will be. in the range of $120 to $180 million. is how you have to look at our CAPEC and investment for the year.

Miguel Galuccio: Hi, Juan Jose. Thanks for your question. First, probably will be worth to comment that we separate CapEx from investment. CapEx, we still expect to be between $1.1 to 1.3 billion, and that does not include the Vaca Muerta Sur investment. The total project investment for Vaca Muerta Sur is estimated around $3 billion. There is a potential bank financing of 40% to 60% of that project. In our calculation, we are assuming that our equity investment will be in the range of $120 to 180 million. That is how you have to look our CapEx and investment for the year.

Speaker Change: I want to say thanks for your question.

Speaker Change: <unk>.

Speaker Change: So first broadly we reward to comment that we set payout capex from investment.

Speaker Change: So capex, we still expect to be between one one and $1 $3 billion.

Speaker Change: And that does not include the back more towards food investment.

Speaker Change: The total project investment product Gomorrah.

Speaker Change: Estimated around $3 billion.

Speaker Change: There is a potential bank financing of 40% to 60% of that project.

Speaker Change: So in our calculation, we are assuming that our equity investment will be.

Speaker Change: In the range of.

Speaker Change: $120 million to $180 million.

Speaker Change: So that.

Speaker Change: It <unk> have to look our capex and investment for the year.

Juan Jose Munoz Rios: Okay, thanks.

Juan Jose Munoz Rios: Great, thanks. Thank you.

Speaker Change: Great. Thanks.

Operator: Thank you. Our next question comes from Marina Mertens of Latin Securities. Please go ahead, Marina.

Speaker Change: Thank you.

Marina Mertens: Our next question.

Speaker Change: Our next question.

Marina Mertens: comes from Marina Mertens of Latin Securities. Please go ahead, Marina. Hi, good morning, and thank you for taking my question. So regarding the potential lifting of capital controls, what would be the main benefits for Vista? Do you expect any improvements at an operational level, and could it eventually lead to accelerating your growth plan? Thank you, Marina. Good question. I think the ease or lift of capital control will benefit the full industry. And of course, it's going to benefit us.

Comments from Marina merchants of Latin Securities. Please go ahead Marina.

Marina Mertens: Hi, good morning, and thank you for taking my question. Regarding the potential lifting of capital controls, what would be the main benefits for Vista? Do you expect any improvements at an operational level? Could it eventually lead to accelerating your growth plan?

Speaker Change: Hi, Good morning, and thank you for taking my question. So regarding the potential use of capital going forward what.

Speaker Change: What would be the main benefits for Vista.

Speaker Change: We expect any improvement on I don't know Grace in Atlanta and good.

Speaker Change: Good evening slightly leading to accelerating growth.

Miguel Galuccio: Thank you, Marina. Good question. I think the ease or lift of capital control will benefit the full industry. Of course, it's going to benefit us. If I think about what could be the main benefit, probably I think about two elements. The first element is it will make us more competitive. It will make us more competitive because we will probably have two impacts. One is more investment coming into Argentina. Again, more competition, more companies, I think that is good. I've always believed that as we scale up our activity, we all benefit. Today, Vaca Muerta run with 33 rigs. US run between 400 and 500 rigs. If you will go to 100, 150 rigs, the cost of drilling, it will be a completely different one, therefore we'll become more competitive.

Speaker Change: Thank you Martina good question.

Speaker Change: I think the E <unk> lead to capital control.

Speaker Change: We benefit the food industry.

Speaker Change: And of course is going to benefit us.

Marina Mertens: If you think about what could be the main benefit, probably I think about two elements. The third element is... it will make us more competitive. It will make us more competitive because we will probably have to impact. One is more investment coming into Argentina. So again, more competition, more companies. And I think that is good. I always believe that as we scale up our activity, we all benefit. So today, Bacamorta run with 33 rigs. US run between 400 and 500 rigs. So if you will go to 100, 150 rigs, the cost of drilling, it will be a completely different one.

Speaker Change: If you if you if you think about what could be the main benefit probably I think about two elements.

Speaker Change: The first element.

Speaker Change:

Speaker Change: Yes.

Speaker Change: It will make us more competitive.

Speaker Change: It will make us more competitive because.

Speaker Change: We probably have.

Speaker Change: Two impacts.

Speaker Change: One is more investment coming into Argentina, So again more competition more companies and I think that is good.

Speaker Change: I've always believed that.

Speaker Change: As do.

Speaker Change: Can we scale up our activity, we all benefit.

Speaker Change: So today by commodity or around <unk> 33 rigs.

Speaker Change: U S run between 405 hundred rigs.

Speaker Change: So if you will go to <unk> hundred 50 rigs.

The cost of drilling.

Speaker Change: It will be a completely different one.

Marina Mertens: And therefore, it will become more competitive. Also, for service companies to come over to Argentina or to increase the capacity that they have today, I think an ease or lift on capital control will make a big difference. As you know, I mean, I used to run a service company, so I know how much it means for them. So it will be super good news, and it will make the whole industry in Baca Muerta more competitive due to these two effects. Thank you.

Speaker Change: Therefore, we will become more competitive also for service companies.

Miguel Galuccio: Also for service companies, to come over to Argentina or to increase the capacity that they have today, I think an ease or lift on capital control will make a big difference. As you know, I used to run a service company, so I know how much it means for them. It will be a super good news, and it will make the whole industry in Vaca Muerta more competitive due to these two effects.

Speaker Change: To come over to Argentina or to increase the capacity that we have to date.

Speaker Change: I see on east.

Speaker Change: Leif and capital control will make a big difference.

Speaker Change: As you know I used to run a service company. So I know how much you mean for them.

Speaker Change: So it will be a super good news and we will make the whole industry in Bakken water more competitive due to these two effects.

Marina Mertens: Thank you.

Miguel Galuccio: I have no other questions. Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Operator: Thank you. Our next question comes from Oriana Covault of Balanz. Please go ahead, Oriana.

Speaker Change: Thank you.

Oriana Covault: Our next question comes from Oriana Covault of Bolands. Please go ahead, Oriana. Hi, thanks for taking my question. This is Oriana Covault with Balance. I have, you mentioned Brent pricing and potential volatility impacting your cap expense and so on. So I'm curious to know if you've considered establishing any hedging policy just to mitigate the potential effects of volatility. Thank you.

Speaker Change: Our next question. Our next question comes from Ariana Cobalt Avalanche <unk>.

Speaker Change: Please go ahead Arianna.

Oriana Covault: Hi. Thanks for taking my question. This is Oriana Covault with Balanz. You mentioned Brent pricing and potential volatility impacting your CapEx spends and so on. I'm curious to know if you've considered establishing any hedging policy just to mitigate the potential impact of volatility. Thank you.

Speaker Change: Hi, Thanks for taking my question would you say you Nicola.

Speaker Change: I have you mentioned.

Speaker Change: Brent pricing and potential volatility impacting your tap expenses. Your line. So I'm curious to know if you would consider.

Speaker Change: And so listen any hedging policy is to mitigate the potential effects on our community.

Speaker Change: Thank you.

Oriana Covault: Hi, Oriana. Thanks for your question. Yeah, we have done that exercise, and we have had the discussion many times during the last. several years that we've been running business in Argentina. And the answer is... That the answer that we have come up with is that we are already naturally hedged. Being a very low cost producer, having no large dematurities. And also having that flexibility of a short-cycle CAPEX where we can accelerate and stop at any time. And I think we proved that during the COVID-19. Year. Also, I mean, let's face it, I mean, many, many of our investors can fetch themselves more efficiently than we do.

Miguel Galuccio: Hi, Oriana. Thanks for your question. Yeah, we have done that exercise, and we have had the discussion many times during the last several years that we've been running business in Argentina. The answer that we have come up with is that we are already naturally hedged. Being a very low-cost producer, having no large debt maturities, and also having that flexibility of a short cycle CapEx where we can accelerate and stop at any time, and I think we proved that during the COVID-19 years. Let's face it, many of our investors can hedge themselves more efficiently than we do. If we hedge and we end up being successful in the hedging strategy, it will be considered one-off. If we hedge and we miss it will damage us. No, the answer is we don't plan to hedge.

Speaker Change: Hi, Irina Thanks for your question.

Speaker Change: Yes, we have done that exercise and we have the discussion many time.

Speaker Change: During the <unk>.

Speaker Change: Yes.

Speaker Change: Several years that we've been writing business in Argentina.

Speaker Change: On the on cities.

Speaker Change: That's the answer that we have come up with is that we are already naturally hedged.

Speaker Change: Being a very low cost producer.

Speaker Change: Having no large.

Speaker Change: The maturities.

Speaker Change: And also having industrial community of short cycle, Capex, where we can accelerate and installed by anytime.

Speaker Change: We proved that during the COVID-19.

Yes.

Speaker Change: Also I mean, let's face it I mean, many many of our investor.

Speaker Change: Catch then cells more efficiently that we do.

Oriana Covault: And, and also, if we catch and we, we, we end up. Having been successful in the hedging strategy, it will be considered one-off. And if we hedge and we miss it, it will damage us. So, no, the answer is we don't plan to hedge. And every time that we go through that discussion, we convince ourselves that being natural hedge is the best way that we can hedge our business. Thank you very much.

Speaker Change: And also if you can catch and we end up having.

Speaker Change: Having.

Speaker Change: Being successful on the hedging strategy you will be considered a one off on a few we hedge and we missed it.

Speaker Change: Will it will damage.

So no. The answer is we don't plan to hedge and then every time that we go through that discussion.

Miguel Galuccio: Every time that we go through that discussion, we convince ourselves that being naturally hedged is the best way that we can hedge our business.

Speaker Change: We are convinced our itself.

Speaker Change: Natural hedging diverse ways that we can hedge our business.

Oriana Covault: Thank you very much.

Speaker Change: Thank you very much.

Oriana Covault: Thank you.

Operator: Thank you. I would now like to turn the conference back to Miguel Galuccio for closing remarks. Sir?

Miguel Galuccio: I would now like to turn the conference back to Miguel Galuccio for closing remarks, sir. Well, thank you very much for participating, for your questions, for your reports, and I take the opportunity to thank also all... The team of Vista that has made this 2024 possible. It was a difficult plan to deliver. We intentionally not, but we make it happen. So thanks to them and all the credit to the people that work with us.

Speaker Change: Thank you I would now like to turn the conference back to Magellan Coluccio for closing remarks, Sir.

Miguel Galuccio: Well, thank you very much for participating, for your questions, for your reports. I take the opportunity to thank also all the team of Vista that has made this 2024 possible. It was a difficult plan to deliver, because we internationally not, but we make it happen. Thanks to them and all the great people that work with us. Thank you very much and have a good day.

Magellan Coluccio: Well, thank you very much for participating and for your questions for your report.

Speaker Change: And I'd take the opportunity to just things also.

Magellan Coluccio: Oil.

Magellan Coluccio: The team of Vista.

Magellan Coluccio: That have made these 2024 possible.

Magellan Coluccio: <unk> it was a difficult plan to deliver.

Magellan Coluccio: With in depth shortly.

Magellan Coluccio: But we make it happen so.

Magellan Coluccio: Thank you there are no liquidated to the people that were with US. Thank you very much and have a good day.

Miguel Galuccio: Thank you very much and have a good day.

Operator: This concludes today's conference call. Thank you for participating.

Operator: I would now like to hand the call over to Alejandro Cherñacov, Strategic Planning and Investor Relations Officer. Please go ahead.

Magellan Coluccio: This concludes today's conference call. Thank you for participating you may now disconnect.

Operator: You may now disconnect.

Magellan Coluccio: [music].

Magellan Coluccio: Yes.

Magellan Coluccio: Okay.

Magellan Coluccio: [music].

Magellan Coluccio: Yes.

Magellan Coluccio: Okay.

Magellan Coluccio: [music].

Magellan Coluccio: Okay.

Magellan Coluccio: [music].

Operator: Thank you for standing by and welcome to Vista's fourth quarter and full year 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker 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. To remove yourself from the queue, you may press star 11 again.

Speaker Change: Thank you for standing by and welcome to Vista is fourth quarter and full year 2024 earnings conference call.

Magellan Coluccio: At this time all participants are in a listen only mode.

Magellan Coluccio: After the speaker presentation, there will be a question and answer session.

Magellan Coluccio: To ask a question during the session you will need to press star one one on your telephone.

Magellan Coluccio: To remove yourself from the queue you May press Star one one again.

Alejandro Cheracov: I would now like to hand the call over to Alejandro Cheracov, Strategic Planning and Investor Relations Officer. Please go ahead. Thanks. Good morning, everyone. We are happy to welcome you to Vista's fourth quarter and full year 2024 results. I am here with Miguel Galuccio, Vista's Chairman and CEO, Pablo Verapinto, Vista's CFO, Juan Garobi, Vista's CTO, and Matias Huesel, Vista's COO.

Alejandro: I would now like to hand, the call over to Alejandro <unk> strategic planning and Investor Relations Officer. Please go ahead.

Alejandro Cherñacov: Thanks. Good morning, everyone. We are happy to welcome you to Vista's Q4 and full year 2024 results conference call. I am here with Miguel Galuccio, Vista's Chairman and CEO, Pablo Vera Pinto, Vista's CFO, Juan Garoby, Vista's CTO, and Matías Weissel, Vista's COO. Before we begin, I would like to draw your attention to our cautionary statement on slide 2. Please be advised that our remarks today, including the answers to your questions, may include forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from expectations contemplated by these remarks. Our financial figures are stated in USD and in accordance with International Financial Reporting Standards, IFRS. However, during this conference call, we may discuss certain non-IFRS measures such as adjusted EBITDA and adjusted net income.

Alejandro: Thanks, and good morning, everyone. We are happy to welcome you to reach the fourth quarter and full year 2024 results conference call I'm here with me.

Speaker Change: <unk>, Chairman and CEO, Oh, no without being adult with the CFO, one guy Mr. CTO and not yet wasteful missteps youll before we begin I would like to draw your attention to our cautionary statement on slide two.

Alejandro Cheracov: Before we begin, I would like to draw your attention to our cautionary statement of life. Please, the advice that are remarked today, including the answers to your questions, may include forward-looking. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from expectations contemplated by the Our financial figures are stated in US dollars and in accordance with international financial reporting standards. However, during this conference call, we may discuss certain non-IFRS measures, such as Adjusted WDA and Adjusted Net Cost. Reconciliations of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday.

Speaker Change: Our financial figures are stated in U S dollars and in accordance with international financial reporting standards <unk>.

Speaker Change: Right.

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

Alejandro Cherñacov: 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 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. I will now turn the call over to Miguel.

Speaker Change: Reconciliations of these measures to the closest <unk> measure can be found in the earnings release that we issued yesterday. Please check our website for further information.

Alejandro Cheracov: 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 Bolsa Mexicana de Valores and the New York. Our tickets are Vista in the Bolsa Mexicana de Valores and BIST in the New York Stock Exchange.

Speaker Change: Our company is a software only model starting to capital.

Speaker Change: Organized under the laws of Mexico, registering there was something that you kind of evaluate and the New York stock exchange.

Neil: It goes out of beta in there was something he kind of allowed it <unk> in the New York Stock Exchange I will now turn the call over to Neil.

Miguel Galuccio: I will now turn the call over to me. Thanks, Ale. Good morning, everyone, and welcome to this earnings call. 2024 was another outstanding year for Vista, marked by double-digit growth rates in production and adjusted EVDA, having delivered on guidance for both methods. We also secure new drilling completion and oil treatment and transportation capacity, which will underpin further growth in the coming years.

Neil: Thanks Al Good morning, everyone and welcome to this earnings call.

Speaker Change: 2024 was another outstanding year for Vista marked by double digit growth rates in production and adjusted EBITDA, how in the liver and guidance for both metrics.

Speaker Change: We also secured new drilling completion and on treatment and transportation capacity, which will underpin further growth in the coming years.

Miguel Galuccio: I will kick it off by going over the results of Q4. and later a deep dive into the highlights of the full year. The fourth quarter of 2024 was marked by strong operational and financial performance. driven by new oil activity in our development hub in Bacamor. Total production was 85.3 thousand DOEs per day, an increase of 51% compared to the same quarter of last year. 17% compared to the previous quarter. Oil production was 73.5 thousand barrels of oil per day, 52% year-over-year, and 16% quarter-over-quarter. Total revenues during Q4 2024 were $471 million. 52% above the same quarter of last year.

Speaker Change: I will kick it off by going over the results of Q4.

Speaker Change: And later, a deep dive into the highlight of the full year.

Speaker Change: The fourth quarter of 2024 was marked by strong operational and financial performance.

Speaker Change: Given by new well activity in our development hub in bulk commodity.

Speaker Change: Total production was $85 3000 Boe's per day.

Speaker Change: An increase of 51% compared to the same quarter of last year.

And 17% compare to the previous quarter.

Miguel Galuccio: Oil production was 73.5 thousand barrels of oil per day, 52% year-over-year, and 16% quarter-over-quarter. Total revenues during Q4 2024 were at $471 million, at 52% above the same quarter of last year. Lifting cost was $4.70 per BOE, almost flat quarter-over-quarter. Capital expenditure was $340 million, driven by 11 wells drilled and 13 wells completed during the quarter, plus $64 million in development facilities. Adjusted EBITDA was $273 million, 5% below the same quarter of last year. If we net out the income generated by the repatriation of exports at the blue chip swap rate, quarterly adjusted EBITDA grew 27% year-over-year. Net income was $94 million, implying a quarterly EPS of $0.98 per share. Deducting deferred income tax, adjusted net income during the quarter was $22 million. Free cash flow was $57 million during the quarter.

Speaker Change: While production was $73 5000 barrels of oil per day.

Speaker Change: <unk>, 52% yet already yet.

Speaker Change: 16% quarter over quarter.

Speaker Change: Total revenues during Q4 2024, we had a $471 million at 50.

Speaker Change: 52% above the same quarter of last year.

Miguel Galuccio: Lifting cost was $4.7 per DOE, almost flat quarter over quarter. Capital expenditure was $340 million, driven by 11 wells drilled and 13 wells completed during the quarter, plus $64 million in development facilities. Adjusted FDA was $273 million, 5% below the same quarter of last year. If we net out the income generated by the repatriation of exports at the blue-chip swap rate, quarterly assertive retail grew 27% year-over-year. Net income was $94 million, implying a quarterly EPS of $0.98 per share. deducting the first income tax adjusted by the U.N. during the quarter was $22 million. Precast low was $57 million during the quarter.

Speaker Change: Lifting cost was $4 $7 per the UAE almost flat quarter over quarter.

Speaker Change: Capital expenditure was $340 million.

Driven by 11 wells drilled 13 wells completed during the quarter.

Speaker Change: $64 million in development facility.

Speaker Change: Adjusted EBITDA was $273 million.

Speaker Change: 5% below the same quarter of last year.

Speaker Change: We net out the income.

Speaker Change: Income generated by the repatriation of exports.

Speaker Change: The new chief swap rate quarterly adjusted EBITDA grew 27% year over year.

Speaker Change: Net income was $94 million.

Speaker Change: Implying that quarterly EPS of <unk> $98 per share.

Deducting deferred income tax adjusted net income during the quarter was $22 million.

Speaker Change: Free cash flow was $57 million during the quarter.

Miguel Galuccio: And finally, net liberal ratio at quarter end was a solid 0.63 times adjusted EVDA. During Q4, we record another quarter of double-digit production growth on a sequential and inter-annual basis. Total production at 85.3 thousand VOEs per day was 70% above the previous quarter and 51% above the same quarter last year. Production growth was driven by the acceleration of capital deployment in our core development sectors. New well activities increased from 31 new wells in 2023 to 50 new wells connected during 2024. 25 new wells were connected between mid-August and early December. driving our understanding production performance during the last quarter of the year.

Miguel Galuccio: Finally, net leverage ratio at quarter end was a solid 0.63 times adjusted EBITDA. During Q4, we record another quarter of double-digit production growth on a sequential and interannual basis. Total production at 85.3 thousand BOEs per day was 70% above the previous quarter and 51% above the same quarter last year. Production growth was driven by the acceleration of capital deployment in our core development hub. New well activities increased from 31 new wells in 2023 to 50 new wells connected during 2024. 25 new wells were connected between mid-August and early December, driving our outstanding production performance during the last quarter of the year. Oil production was 73.5 thousand barrels of oil per day, following the same trend, 60% above the previous quarter and 52% above Q4 of last year. Gas production increased 52% on an interannual basis and 27% on a sequential basis.

Speaker Change: And finally net leverage ratio at quarter end was a solid Cedar 0.63 times adjusted EBITDA.

Speaker Change: During Q4, we recorded another quarter of double digit production growth on a sequential uninterruptible basis.

Total production at $85 3000, Boe's per day was 70% above the previous quarter and 51% about the same quarter last year.

Speaker Change: Production growth was driven by the acceleration of capital deployment in our core development hub.

You will activities increased from 31, new wells in 2023 to 50, new wells connected during 2024.

Speaker Change: 25, new wells were connected between mid August and early December.

Speaker Change: Driving our understanding production performance during the last quarter of the year.

Miguel Galuccio: Oil production was 73.5 thousand barrels of oil per day, following the same trend, 60% about the previous quarter and 52% about the fourth quarter of last year. Gas production increased 52%. on an interannual basis and 27% on a sequential basis. In Q4 2024, total revenues were $471 million. a 52% increase year-over-year, and 2% quarter-over-quarter, mainly driven by oil production growth. On a sequential basis, the relatively lower increase in total revenues compared to the 70% production increase reflects the enormalization of oil inventories from below average level in the previous quarter. as well as the commissioning of all the value expansion payments.

Speaker Change: Oil production was 73 5000 barrels of oil per day following the same.

Speaker Change: 60% above the previous quarter, and 52% above the fourth quarter of last year.

Speaker Change: Gas production increased 52%.

Speaker Change: On an international basis, and 27% on a sequential basis.

Miguel Galuccio: In Q4 2024, total revenues were $471 million, a 52% increase year-over-year and 2% quarter-over-quarter, mainly driven by oil production growth. On a sequential basis, the relatively lower increase in total revenues compared to the 70% production increase reflects the normalization of oil inventories from below average level in the previous quarter, as well as the commissioning of the Oleoductos del Valle expansion pipeline will require 70,000 barrels of oil for the line pack. Combining both effects, 280,000 barrels of oil production were not sold during the quarter. Realized oil price was $67.1 per barrel on average, down 1% on an interannual basis and 2% lower on a sequential basis, mainly driven by slightly lower international prices. Export realization prices were $66.6 per barrel. Domestic realization prices were $67.8 per barrel, including volumes sold at export parity.

In Q4, 2024 total revenues were $471 million.

Speaker Change: At 52% increase year over year, and 2% quarter over quarter, mainly driven by oil production growth.

Speaker Change: On a sequential basis, they're relatively low increase in total revenues compared to the 70% production increase.

It reflects the normalization of oil inventories from below average level in the previous quarter.

As well as the commissioning of all the values pension pipeline.

Miguel Galuccio: will require 70,000 bottles of oil for the light. Combining both effects, 280,000 barrels of oil production were not sold during the quarter. Realized oil price was $67.1 per barrel on average, down 1% on interannual basis, and 2% lower on a sequential basis, mainly driven by a slightly lower international price. Export realization prices were $66.6 per barrel. Domestic realization prices were $57.8 per barrel, including volumes sold at export parity. During Q4, we continue to execute our export-oriented strategy. with an increasing amount of oil sold in the international market driven by the production growth. We exported 3.6 barrels of oil during the quarter, 79% above the previous year.

Speaker Change: We require 70000 barrels of oil.

For the line pack.

Speaker Change: Combining both effects to Cali 80000 barrels of oil production were not sold during the quarter.

Speaker Change: Light oil price was $67 $1, but rather low nevertheless, down 1% on international basis, and 2% lower on a sequential basis, mainly driven by slightly lower international prices.

Speaker Change: Export realization prices were $66 $6 per barrel.

Speaker Change: The realization prices were $67 $8 per barrel, including volumes sold at the export parity.

Miguel Galuccio: During Q4, we continued to execute our export-oriented strategy with an increasing amount of oil sold in the international market, driven by the production growth. We exported 3.6 barrels of oil during the quarter, 79% above the previous year. Additionally, 1.1 million barrels of oil were sold in the domestic market at export parity prices. Combining the sales to international buyers with the domestic buyers paying export parity, 73% of our total oil sales were sold at export parity prices. Lifting costs during Q4 was $36.6 million, implying a lifting cost per BOE of $4.7. On a unit cost basis, lifting cost was up 8% year over year. This increase was driven by inflation in US dollars impacting pesos-denominated contracts and a ramp-up in oil field expenditures to accommodate our production growth. This effect were partially offset by the dilution of fixed costs as we continue gaining scale.

Speaker Change: During Q4, we continued to execute our export oriented strategy.

Speaker Change: With an increasing amount of volumes sold in international markets driven by the production growth.

Speaker Change: We reported three six barrel of oil during the quarter, 79% above the previous year.

Miguel Galuccio: Additionally, 1.1 million barrels of oil were sold in the domestic market at export parity prices. Combining the sales to international buyers with the domestic buyers paying export parity, 73% of our total oil sales were sold at export parity prices. Lifting cost during Q4 was $36.6 million, implying a lifting cost per DOE of $4.7. On a unit cost basis, lifting cost was up 8% year-over-year. This increase was driven by inflation in US dollars impacting pesos denominated contracts and a ramp up in oil field expenditures to accommodate our production growth. These effects were partially offset by the dilution of feed costs as we continue gaining strength.

Speaker Change: Additionally, $1 1 million barrel of oil were sold in the domestic market.

Speaker Change: Parity prices.

Speaker Change: Combining the sales to international buyer with a domestic buyer pain export parity, 73% of our total oil sales were solid at export parity prices.

Speaker Change: Lifting costs during Q4.

Speaker Change: $36 6 million.

Speaker Change: Implying a lifting cost per the UAE of $4 $7.

Speaker Change: On a unit cost basis lifting cost was up 8% year over year.

Speaker Change: This increase was driven by inflation in U S dollars impacting peso denominated contract and a ramp up in order to feed expenditures to accommodate our production growth.

Speaker Change: These effects were partially offset by the dilution of fixed costs as we continue gaming escape.

Miguel Galuccio: A chassis WDA during the quarter was $273 million. 5% lower on an inter-annual basis. This reflects the fact that Q4 of last year included 81 million dollars corresponding to the repatriation of export proceeds at the blue cheese swap rate, compared to the 9 million dollars during Q4 2024. Excluding this effect, a chassis DVDA spans 27% on inter-annual basis. On a sequential basis, adjusted EVA was down 12%, reflecting a serious one-off and temporary factor of setting the 70% total production growth. Firstly, the normalization of oil inventories from the previous quarter and the commissioning of all the oil pipelines, which I already mentioned.

Miguel Galuccio: Adjusted EBITDA during the quarter was USD 273 million, 5% lower on an interannual basis. This reflects the fact that Q4 of last year included USD 81 million corresponding to the repatriation of export proceeds at the Blue Chip Swap rate, compared to the USD 9 million during Q4 2024. Excluding this effect, adjusted EBITDA expanded 27% on an interannual basis. On a sequential basis, adjusted EBITDA was down 12%, reflecting a series of one-off and temporary factor offsetting the 70% total production growth. Firstly, the normalization of oil inventories from the previous quarter and the commissioning of the Oleoductos del Valle pipeline, which I already mentioned. Secondly, the increase in trucking expenditure. Trucking volumes increased from 12,000 to 20,000 barrels of oil per day, quarter over quarter. This impacted sales expenses with an increase of USD 25 million on a sequential basis.

Speaker Change: Adjusted EBITDA during the quarter was $273 million.

Speaker Change: 5% lower on that annual basis.

Speaker Change: Flagged. The fact that Q4 of last year included $81 million corresponding to develop affiliation of export proceed at the Blue chip substrate.

Speaker Change: Payout to the $9 million during Q4 2020.

Speaker Change: Excluding this effect adjusted EBITDA expanded 27% on that annual basis.

Speaker Change: On a sequential basis, adjusted EBITDA was down 12%, reflecting a series of one off and temporary factor offsetting the 70% total production growth.

Speaker Change: Currently the normalization of oil inventories from the previous quarter.

Speaker Change: And the commissioning of all the line by line, which I already mentioned.

Speaker Change: Secondly, the increase in tracking expenditure.

Speaker Change: Trucking volumes increased from 12000 to 20000 barrels of oil per day quarter over quarter.

Speaker Change: This impacted sales expenses with an increase of $25 million on a sequential basis.

Miguel Galuccio: Finally, you should note that with this quarterly print, we have achieved our annual adjusted EBITDA guidance. During Q4 2024, operating activities cash flow was $369 million, reflecting a decrease in working capital of $133 million and an advanced payment for maintenance functions of $27 million. Cash flow used in investing activities was $312 million, reflecting accrued CapEx of $340 million, partially offset by $34 million decrease in CapEx related to working capital. Free cash flow during the quarter was therefore $57 million. Cash flow from financing activities reflects proceeds from borrowings of $836 million and the repayment of borrowings of $340 million. During Q4, we achieved a major milestone by pre-financing all the ramp-up of CapEx activities planned for 2025. Finally, cash at period end was $764 million, and net leverage ratio stood at a very healthy 0.63 times adjusted EBITDA.

Speaker Change: Finally, you should note that with this quarterly prime we have achieved our annual adjusted EBITDA guidance.

Miguel Galuccio: During Q4 2024, operating activities cash flow was $369 million. reflecting a decrease in working capital of $133 million and an advance payment for military expansions of $27 million. Cash flow used in investing activities was $312 million. reflecting accrued capex of 340 million dollars partially offset by 34 million dollar decrease in capex related to working capital. free cash flow during the quarter was therefore $57 million. Cash flow from financing activities reflects proceeds from borrowings of $836 million and the repayment of borrowings of $340 million. During Q4, we achieved a major milestone by pre-financing all the ramp-up of CAPEC activities planned for 2024.

Speaker Change: During Q4 2020 for operating activities cash flow was $369 million.

Speaker Change: Reflecting a decrease in working capital of 133 million and an advanced payment for maintaining expansions of $27 million.

Speaker Change: Cash flow used in investing activities was $312 million.

Speaker Change: Reflecting our accrued capex of $340 million, partially offset by $34 million decrease in capex related to working capital.

Speaker Change: Free cash flow during the quarter was there a $457 million.

Speaker Change: Cash flow from financing activities reflects proceeds from borrowings of $836 million.

Speaker Change: And the repayment of borrowings of $340 million.

Speaker Change: During Q4, we achieved a major milestone by refinancing or the ramp up of Capex activities planned for 2025.

Miguel Galuccio: Finally, cash at period end was $764 million, and net leverage ratio stood at a very healthy 0.63 times adjusted EBITDA.

Speaker Change: Finally cash at period end was $764 million.

Speaker Change: Our net leverage ratio stood at a very healthy Cedar 0.6.

Speaker Change: <unk> adjusted EBITDA.

Miguel Galuccio: I will now move to our full year highlight. During 2024, we achieved major milestones across all four strategic pillars. We have accelerated the development of our deep, short-cycle, well-inventorying back-and-forth. Solid Productivity Results have supported the expansion of our P1 reserve to 375 million barrels of oil equivalent, implying a 323% reserve replacement rate. We continue to prove our peer-leading performance capability. driving total production to an average of 69.7 thousand DOEs per day during the year, up 36% compared to 2020. This increase was down 10% year-over-year, for a total of $4.6 per BOE, reflecting our low-cost asset base and our continuous focus on efficiency.

Miguel Galuccio: I will now move to our full year highlights. During 2024, we achieved major milestones across all four strategic pillars. We have accelerated the development of our deep short cycle well inventory in Vaca Muerta. Solid productivity results have supported expansion of our P1 reserve to 375 million barrels of oil equivalent, implying a 323% reserve replacement ratio. We continue to prove our peer-leading performance capabilities, driving total production to an average of 69.7 thousand BOEs per day during the year, up 36% compared to 2023. Lifting cost was down 10% year over year for a total of $4.6 per BOE, reflecting our low-cost asset base and our continuous focus on efficiency. We also made solid progress on the sustainability front, recording a greenhouse gas emission intensity of 8.8 kilos of CO2 equivalent per BOE.

Speaker Change: I will now move to our full year highlight during 2020, we achieved major milestones across all of our strategic pillars.

Speaker Change: We have accelerated the development of our deep shelf cycle, well inventory and bank of America.

Speaker Change: Solid productivity result has supported the expansion of our <unk> wanted to step two 375 million barrels of oil equivalent.

Speaker Change: Implying a 323% reserve replacement ratio.

Speaker Change: We continued to prove our peer leading performance capabilities.

Speaker Change: Driving total production to an average of $69 7000 Boe's per day during the year.

Up 36% compared to 2023.

Speaker Change: Listing cost was down 10% yet already here for a total of $4 $6, reflecting our low cost asset base and our continuous focus on efficiency.

Miguel Galuccio: We also made solid progress on the sustainability front, recording a greenhouse gas emission intensity of 8.8 kilos of CO2 equivalent per VOE. 44% reduction compared to the previous year on the back of the capital expenditure in decarbonization projects. Our total recordable incident rate was below our target of one for the fifth consecutive year, demonstrating our focus on employee and contractor sectors. Finally, we continue to successfully execute our total shareholder return strategy. adjusted EVDA expanded 25% compared to 2023 on the back of production growth and cost control. Our share price increased 83% from year-end 2023 to year-end 2021.

Speaker Change: We also made solid progress on the sustainability front.

Speaker Change: Recording a greenhouse gas emission intensity of eight eight kilos of <unk> in February.

Miguel Galuccio: A 44% reduction compared to the previous year, on the back of the capital expenditure in decarbonization projects. Our total recordable incident rate was below our target of one for the fifth consecutive year, demonstrating our focus on employee and contractor safety. Finally, we continue to successfully execute our total shareholder return strategy. Adjusted EBITDA expanded 25% compared to 2023 on the back of production growth and cost control. Our share price increased 83% from year-end 2023 to year-end 2024. P1 reserves increased 18% compared to 2023, for a total of 375 million BOEs estimated at year-end 2024. This implies a total reserve replacement ratio of 323 and 339 for oil. Net additions were 82.2 million BOEs, driven by activity in Bajada del Palo Este, where we added 52 new well locations. Bajada del Palo Este, where we added 34 locations, and Aguada Federal, where we added 15 locations.

Speaker Change: A 44% reduction compared to the PUC, yet on the back of the capital expenditure and decarbonization projects.

Speaker Change: Our total recordable incident rate was below our target of one <unk> for the fifth consecutive year, demonstrating our focus on employee and contractor safety.

Speaker Change: Finally, we continue to successfully execute our total shareholder return strategy.

Speaker Change: Adjusted EBITDA expanded 25% compared to 2023 on the back of production growth and cost control.

Speaker Change: Our share price increased 83% from year end 2023 to year end 2024.

Miguel Galuccio: P1 reserves increased 18% compared to 2023 for a total of 375 million VOEs estimated at year-end 2024. This implies a total reserve-replacement ratio of 323 and 339 for oil. Net additions were 82.2 million BOEs driven by activity in Bajada del Palo Oeste, where we added 52 new wells locations. Bajada del Palo Oeste, Werner Janitz, 34. locations, and Aguada Federal, where we added 15 locations. This results in a total of 400 book well locations in our P-1 reserve. The certified present value at a 10% discount rate attributable to the company's interest in P1 Reserve is $4 billion using a price assumption of $69.4 per barrel for oil, according to SEC guidelines.

Speaker Change: Q1 sales increased 18% compared to 2023 for a total of 375 million Boe's estimated at year end 2024.

Speaker Change: This implies a total <unk> replacement ratio of 323 and 339 quarterly.

Speaker Change: In addition were $82 2 million.

Speaker Change: Driven by activity in Bajada del Palo Este.

Speaker Change: Where we added 52, new west location.

Speaker Change: By the way, where we added 34.

Speaker Change: Locations in Hawaii.

Speaker Change: Where we added 15 locations.

Miguel Galuccio: This results in a total of 400 book well locations in our P1 reserves. The certified present value at a 10% discount rate attributable to the company interest in P1 reserve is $4 billion, using a price assumption of $69.4 per barrel for oil, according to SEC guidelines. During 2024, we achieved significant operating milestones to continue driving profitability growth. We successfully ramped up our new well activity from 31 new well tie-ins in 2023 to 50 in 2024. This led to a robust interannual production growth and delivery of our annual guidance for new well connections and total production. We increased our oil trucking transportation capacity to 37,000 barrels of oil per day, which was a key enabler to deliver our production growth plan. In turn, production growth led an increase in oil exports.

Speaker Change: This result in a total of four country book well locations in our <unk> reserves.

Speaker Change: The certify present value at a 10% discount rate attributable to the company interest in B, one that etc is $4 billion.

Speaker Change: Using a price assumption of $69 $4 per lateral foot oil according to SEC guidelines.

Miguel Galuccio: During 2024, we achieved significant operating milestones to continue driving profitability growth. We successfully ramped up our new well activity from 31 new well times in 2023 to 50 in 2024. This led to a robust inter-annual production growth and delivery of our annual guidance for new well connections and total production. We increased our oil tracking transportation capacity to 37,000 barrels of oil per day, which was a key enabler to deliver our production growth plan. In turn, production growth led an increase in oil exports. During 2024, we export 10.6 million barrels of oil, 29% above 2023, for a total of $748 million of net revenue.

Speaker Change: During 2020 total we achieved significant operating milestone to continue driving profitability to grow.

Speaker Change: We successfully ramp up our new well activity from 31, new well in 2023 to 50 in 2024.

Speaker Change: This led to a robust in their annual production growth and delivery of our unlike guidance for new well connections and total production.

Speaker Change: We increased our oil trucking transportation capacity to 37000 barrels of oil per day.

Speaker Change: Each was a key enabler to deliver our production growth plan.

Speaker Change: In turn production growth led an increase in oil exports during 2024 with port $10 6 million barrel of oil, 29%. Our 2023 for a total of $748 million of net revenues.

Miguel Galuccio: During 2024, we exported 10.6 million barrels of oil, 29% above 2023 for a total of $748 million of net revenues. We also achieved a key milestone that will unlock further profitability growth going forward. We secured 3 drilling rigs and 2 frac sets, which enabled us to ramp up to 50 new well connections in 2024, as well as guiding for 52 to 60 connections in 2025. We recently finished upgrading our oil treatment plants to a capacity of 90,000 barrels of oil per day. We have already identified projects to expand this capacity further and will allocate CapEx to this effort during 2025. We also made cash contributions to fund the expansion of the Oil Pipeline, which is now complete. The pipeline is currently ramping up, and we expect it to reach full capacity by quarter end.

Miguel Galuccio: We also achieved a key milestone that will unlock further profitability growth going forward. We secured three drilling rigs and two frag sets, which enabled us to ramp up to 50 new web connections in 2024, as well as guiding for 52 to 60 connections in 2025. We recently finished upgrading our oil drilling plant. to a capacity of 90,000 barrels of oil per day. We have already identified projects to expand this capacity further, and we'll allocate CAPEX to this effort during 2021. We also made cash contributions to fund the expansion of the Old Elbal pipeline, which is now complete.

Speaker Change: We also achieved a key milestone that will unlock further profitability growth going forward.

Speaker Change: We secure CDW and rigs and two frac set which enable us to ramp up to 50, new well connections in 2024 as well as the guidance for 52% to 60 connections in 2025.

We recently finished upgrading our oil drilling plans to.

Speaker Change: To a capacity of 90000 barrels of oil per day.

Speaker Change: We have already identified projects to expand its capacity further.

Speaker Change: We allocate capex to this effort during 2025.

Speaker Change: We also made cash contributions to fund the expansion of valuable by line, which is now complete.

Miguel Galuccio: The pipeline is currently ramping up, and we expect it to reach full capacity by quarter end. As a reminder, Vista owns 32,000 barrels of oil per day of firm transportation capacity in this pipeline. We have also partnered in Baca Muerta Sur Company, securing an additional 50,000 barrels of oil per day of transportation, storage, and export capacity in the project. During 2024, we made solid progress in reducing the carbon footprint in our operation. will reduce our total Scope 1 and 2 emissions by 28% compared to 2023, even as we increase total production during the year. measured by intensity at 8.8 kilograms of CO2 per VOE for 2024.

Speaker Change: The pipeline is currently ramping up and we expect it to reach full capacity by quarter end.

Miguel Galuccio: As a reminder, Vista owns 32,000 barrels of oil per day of firm transportation capacity in this pipeline. We have also partnered in Vaca Muerta Sur company, securing an additional 50,000 barrels of oil per day of transportation, storage, and export capacity in the project. During 2024, we made solid progress in reducing the carbon footprint in our operations. We reduced our total Scope 1 and 2 emissions by 28% compared to 2023, even as we increased total production during the year. Measured by intensity at 8.8 kilograms of CO2 per BOE for 2024, the decrease was 44% year over year. Our single-digit intensity placed Vista well within the first quartile of global oil and gas operations, materializing our ambition to become a low-cost, lower emissions upstream producer. To achieve this, we increased the uptake of renewable energy in our operations, replacing gas-fired power generation.

Speaker Change: As a reminder, this down 32000 barrels of oil per day of premium transportation capacity in this by line.

Speaker Change: We have also bottleneck in Bakken water sewer company, securing an additional 50000 barrels oil per day of transportation.

Speaker Change: Our network capacity in the project.

Speaker Change: During 2024, we made solid progress in reducing the carbon footprint in our operations.

We reduced our total scope, one and two emissions by 28% compared to 2023, even as we increased total production during the year.

Speaker Change: Mitchell of intensity at $8, eight Quito and NFC are too.

Speaker Change: For 2024, the decrease was 44% year over year.

Miguel Galuccio: The decrease was 44% year-over-year. Our single-digit intensity placed Vista well within the first 14 of global oil and gas operations, materializing our ambition to become a low-cost, lower-emissions, upstream producer. To achieve this, we increase the uptake of renewable energy in our operations. Replacing Gas-Fire Power Generation. This includes the start-up of the first gas compression station powered by renewable energy in Latin America. We also made improvements in vapor recovery units to improve reliability. and construct a gas pipeline from Aguada Federal to Bajada del Palo Oeste to increase gas evacuation capacity.

Speaker Change: Our single digit intensity plays that way within the first quarter of.

Speaker Change: Global oil and gas operation materialized in our ambition to become a low cost lower emissions African producer.

Speaker Change: To achieve this we increased the offtake of renewable energy in our operation.

Speaker Change: <unk> gas fired power generation.

Miguel Galuccio: This includes the start-up of the first gas compression station powered by renewable energy in Latin America. We also made improvements in vapor recovery units to improve reliability and construct a gas pipeline from Aguada Federal to Bajada del Palo Este to increase gas evacuation capacity. Moving to nature-based solution front, our subsidiary, iQED, made solid progress across all verticals. We planted 1,800 hectares combining afforestation and reforestation projects in Corrientes and Formosa provinces. We also completed critical facilities, including fire protection, fences, water wells, and housing in our forest conservation project in Salta. Finally, I increased the amount of hectares under management in our regenerative livestock and agriculture project in Salta, Córdoba, and Buenos Aires. During 2024, we have continued to deliver strong financial metrics, resulting in superior total shareholder returns. Adjusted EBITDA increased by 25% year-over-year to $1.1 billion, above the midpoint of our annual guidance range.

Speaker Change: These include the start up of deferred gas compression station power about renewable energy in Latin America.

Speaker Change: We also made improvements in vapor recovery unit to improve reliability.

Speaker Change: And construct a gas by line for an hour fatal to a high by the way to introduce gas evacuation capacity.

Miguel Galuccio: Moving to nature-based solutions front, our subsidiary ICET made solid progress across all verticals. We planted 1,800 hectares combining afforestation and reforestation projects in Corrientes and Formosa provinces. We also completed critical facilities, including fire protection, fences, water wells, and housing in our forest conservation project in Salda. Finally, we increased the amount of hectares under management in our regenerative livestock and agricultural projects in San Luis, Córdoba, and Buenos Aires.

Speaker Change: Moving to natural based solutions front, our subsidiary <unk> made solid progress across all verticals.

Speaker Change: We planted 1800 excess combining afforestation and reforestation projects in Korea and for most of the provinces.

Speaker Change: We also completed physical facilities, including fire protection fences water West on housing in our Forest Conservation project insulted.

Speaker Change: Finally, we increased the amount of acres under management in our reaching at 80 livestock and agriculture pressured given salary Cordoba monocytes.

Miguel Galuccio: During 2024, we have continued to deliver strong financial metrics, resulting in superior total shareholder returns. Accessibility increased by 25% year-over-year to $1.1 billion, above the midpoint of our 100-mile-wide guidance range. Rossi remains strong at 24%. specifically as it is measured at ERM, it was negatively impacted by the issuance of $300 million of debt, which will be applied to high-return new oil capex during 2021. Without such effect, ROCE in 2024 would have been closer to 30%. strong operational and financial performance during the last three years allow us to deliver an average gross rate of 35%. EPS per share increased 18% year-over-year to $5 per share, reflecting solid bottom-line performance in 2024.

Speaker Change: During 2024, we have continued to deliver strong financial metrics, resulting in superior total shareholder returns.

Speaker Change: Adjusted EBITDA increased by 25% year over year to $1 1 billion.

Speaker Change: Above the midpoint of our guidance range.

Miguel Galuccio: ROCE remains strong at 24%. Specifically, as it is measured at year-end, it was negatively impacted by the issuance of $600 million of debt, which will be applied to high return new well CapEx during 2025. Without such effect, ROCE in 2024 would have been closer to 30%. A strong operational and financial performance during the last 3 years allow us to deliver an average ROCE of 35%. EPS per share increased 18% year over year to $5 per share, reflecting solid bottom-line performance in 2024. Moreover, we continue to maintain robust financial ratios. We successfully tapped to the local and international debt market to fund the acceleration of our CapEx plan, maintaining a healthy net leverage ratio at 0.6 times adjusted EBITDA and gross leverage ratio of 1.3 times adjusted EBITDA. Finally, we repurchased $100 million of company stock during 2024 at an average price of $48 per share.

Speaker Change: Proceeds remain strong at 24%.

Speaker Change: Specifically.

Keith Mitchell at year end, it was negatively impacted by the issuance of $600 million of debt will be applied to high return new wave Capex during 2025.

Speaker Change: Without such effect.

Speaker Change: <unk> in 2024, we've got being closer to 30%.

Speaker Change: The strong operational and financial performance during the last three years allow us to deliver nevertheless proceeds of 35%.

Speaker Change: EPS per share increased 18% year over year to $5 per share, reflecting solid bottom line performance in 2024.

Miguel Galuccio: Moreover, we continue to maintain robust financial relations. We successfully tapped to the local and international debt market to fund the acceleration of our CAPEX plan, maintaining a healthy net leverage ratio at 0.6 times adjusted EVDA and gross leverage ratio of 1.3 times adjusted EVDA. Finally, we repurchased $100 million of company stock during 2024 and an average price of $48 per share. This outstanding performance across all financial metrics was recognized by the market and is reflected in the evolution of our share price, which increased 83% from year-end 2023 to year-end 2023.

Speaker Change: Moreover, we continue to maintain a robust financial ratios.

We successfully tapped to the local and international debt markets to fund the acceleration of our Capex plan, maintaining a healthy net leverage ratio at Cedar 0.6 times, adjusted EBITDA and gross leverage ratio of one three times adjusted EBITDA.

Speaker Change: Finally, we repurchased $100 million of company stock during 2024, and an average price of $48 per share.

Speaker Change: These are the stunning performance across all financial metrics were recognized by the market.

Speaker Change: And is reflected in the evolution of our share price, which increased 83% from year end 2023 to year end 2024.

Miguel Galuccio: I will make some closing remarks before we move to Q&A. During 2024, we completed another year of robust operational and financial performance, having delivered again on our annual guidance. we record a solid 36% increase in total production and a P1 reserve replacement ratio of 323%. We updated our 2025 targets after securing our third drilling rig and second frag set. This allows us to bring forward the target we have initially planned for 2026 to 2025. Additionally, we secured enough oil treatment, transportation, and export capacity to deliver on our updated 2025 production target and our 2030 vision.

Speaker Change: I will make some closing remarks before we move to Q&A.

Speaker Change: During 2024, we completed another year of robust operational and financial performance, having delivered again on our annual guidance.

Speaker Change: We recorded a solid 36% increase in total production.

Speaker Change: And at <unk>, 1% replacement ratio of 323%.

Speaker Change: We updated our 2025 target after securing our <unk> rig and second Frac site.

Speaker Change: These allow us to bring forward the target we have initially planned for 2026 to 2025.

Speaker Change: Additionally, we secured a novel treatment transportation and export capacity to deliver on our updated 2025 production target.

Speaker Change: Our 2003 mission.

Miguel Galuccio: We made significant reduction in greenhouse gas emissions through solid execution of decarbonization projects and made good progress in the development of our NBS portfolio. We recorded a strong financial result with an adjusted EBITDA of $1.1 billion and deliver robust return measured by adjusted EBITDA margin and ROCE. We also deliver on our superior total shareholder return proposition with a 83% stock price appreciation and a share repurchase of $100 million. In summary, 2024 has been an outstanding year for our company. A final comment from my side, I am very proud of our staff, their commitment and passion, which have always been key to our success. Many thanks to all of them. Operator, we can now move to Q&A.

Speaker Change: We made significant reduction in getting our gas emissions through solid execution of the Carbonization project and made good progress in the development of our MBS portfolio.

Speaker Change: We recorded strong financial results with an adjusted EBITDA of $1 1 billion.

Speaker Change: And deliver robust return Mitchell by adjusted EBITDA margin on a royalty.

We also deliver on our superior total shareholder return proposition.

Speaker Change: 83% stock price appreciation in the share repurchase of $100 million.

Miguel Galuccio: In summary, 2024 has been an outstanding year for our company. A final comment from my side. I am very proud of our staff, their commitment and passion. We have always been key to our success. Many thanks to all of you.

Speaker Change: In summary, 2024 has been an outstanding year for our company.

Speaker Change: A final comment from my side.

Speaker Change: I am very proud of our staff their commitment and passion, we have always been key to our success.

Speaker Change: Listen to all of them.

Operator: Operator, we can now move to Q&A. Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone to remove yourself from the queue. You may press star one one again. We ask that you please limit yourself to one question. Please stand by while we compile the Q and a roster.

Speaker Change: Operator, we can now move to Q&A.

Speaker Change: Thank you as a reminder to ask a question you will need to press star one one on your telephone.

Speaker Change: Move yourself from the queue you May press Star one one again.

Speaker Change: We ask that you please limit yourself to one question. Please standby, while we compile the Q&A roster.

Bruno Montanari: Our first question comes from Bruno Montanari of Morgan Stanley. Your question, please, Bruno. Good morning, Miguel, Ale, and Tim. Thanks for taking my question. I wanted to focus on production. If you could talk about the setup for production now in the first quarter of the year and how we should think about the trajectory throughout the following quarters, by the end of the year, it would be great. Thank you very much. Hi, Bruno, and thanks for your question. I would like to take the opportunity of that question to explain how we plan our development that drive our production for.

Speaker Change: Our first question.

Bruno Montanari: Comes from Bruno Montanari Morgan Stanley Your question. Please Bruno.

Bruno Montanari: Good morning, Miguel, Ale, and team. Thanks for taking the question. I wanted to focus on production. If you could talk about the setup for production now in Q1 of the year, and how we should think about the trajectory, throughout the following quarters, by the end of the year, it would be great. Thank you very much.

Speaker Change: Good morning.

Bruno Montanari: Thanks for taking my question.

Speaker Change: Just a follow up.

Speaker Change: Any production.

Speaker Change: If you could talk about the setup for production all in the first quarter first quarter of the year.

Speaker Change: How we should think about that trajectory throughout the following quarters by the end of the year. It would be great. Thank you very much.

Miguel Galuccio: Hi, Bruno, thanks for your question. I would like to take the opportunity of that question to explain how we plan our development that drive our production forecast. I think you were spot on with your comment in your report when you state that we have to look to the full year growth numbers. The two principal things that guide our development plan are how to optimize our operational efficiency and also how we optimize the productivity of our wells. Every time that our people plan the development for the year and for the life of the well, they are looking at the NPV. They are not looking at how I will report quarterly to you. Unfortunately, that will make my work a bit more difficult, but I'm sure if they do it the other way, they will destroy value.

David: David Thanks for your question.

David: I would like to take the opportunity of that question to explain how we plan our development that drive our production forecast.

Miguel Galuccio: I think you were spot on with your comment in your report when you state that we have to look to the fully agro number. The two principal... Things that guide our development plan are how to optimize our operational efficiency. and also how we optimize the productivity of our wealth. So every time that our people plan the development for the year and for the life of the well, they are looking at the NPV. They are not looking at how I will report accordingly to you. And unfortunately, that will make my... might work a bit more difficult, but I'm sure if you do it the other way, they will destroy value.

David: I think you are spot on with your comment and your reported when you state that we have to look to the full year growth numbers.

David: The two principal.

David: Since that guide our development plan on how to optimize our operational efficiency.

David: And also how we optimize the productivity of our width.

David: So every time that we our people.

David: The development for the year.

David: For the life of the well they are looking at the NPV non looking how I wouldn't report quarterly to you.

David: Sure.

David: Unfortunately that will make my <unk>.

David: My work a bit more difficult but.

David: Surely if we do it in a way that will be through value.

Miguel Galuccio: In 2024, we grew 36% year-on-year, and we grew 51% Q4 2023 to Q4 2024. We average in the year 70,000 barrels per day. For 2025, we have gained 95 to 100 barrels per day, what implies a growth of 35 to 40%. This is the number that we have to look at. Now, if we go to Q1, and then back to your question, Q1 2025, we are expecting flat to a bit lower production of sequential basis. This is driving by two factors. When we plant Q1, new well connection with slightly delayed activity to time with the Old Elba expansion ramp.

Miguel Galuccio: In 2024, we grew 36% year on year. We grew 51% Q4 2023 to Q4 2024. We averaged, in the year, 70,000 BOE per day. For 2025, we have guided 95 to 100 BOE per day, would imply a growth of 35% to 40%. This is a number that we have to look at. If we go to Q1, and then back to your question. Q1 2025, we are expecting flat to a bit lower production on sequential basis. This is driven by 2 factors. When we planned Q1, new well connection will slightly delay activity to time with Oldelval expansion ramp-up. We peak around barrel of tracking around mid-December. Planning for production growth in Q1 will have implied increasing the tracking fleet in January, prior to a ramp down in February, in line with Oldelval commissioning.

David: In 2020 before do we grow.

David: 36%.

David: One year, and we grew $51 in Q.

David: Q4, 2023 to Q4 2024.

David: We are.

David: In the year 70000 barrels of oil per day.

David: For 2025, we have Guy 95, two <unk> per day.

David: It would imply a growth of 35% to 40%.

David: This is a number that we have to look at now.

David: We go through Q1, and then back to your question.

David: Q1, 2025, we are expecting flat to a bit lower production on a sequential basis.

David: Driving by two factors when we planned Q1, new well connections with slightly delay activity to time, we do a well by the function ramp up.

Miguel Galuccio: We pick up a series of tracking around mid-December. and planning for production growth in Q1, we have implied increasing the tracking feed in January prior to a rundown in February in line with all the valid commissioning. So that will be complicated from logistic and contractual point of view. So we end up planning for the quarter, as I said, with flat to probably a slightly lower production. Additionally, it's fair to comment that we entered January with a slightly lower production than we expected as we have delay in connecting four parts for the year. Now, again, to achieve the 95K or 100K average in 2025, we plan to ramp up production with a big ramp up in Q3 and Q4.

David: We began sampling silicon battlefield tracking around mid December.

David: I'm planning for production grow in Q1, we have implied increasingly attracting fitness January.

David: Year to ramp up to a run down in February in language or the value Commission.

Miguel Galuccio: That will be complicated from logistics and contractual point of view, we end up planning for the quarter, as I said, with flat to probably a slightly lower production. Additionally, it is fair to comment that we enter January with a slightly lower production than we expected, as we have delay in connecting 4 pads for the year. Now, again, to achieve the 95,000 or 100,000 on average in 2025, we plan to ramp up production with a big ramp-up in Q3 and Q4. Also, we will see a bit of ramp-up in tie-in in Q2. I hope I have answered your question. Again, thank you for your comment in your report.

David: So that will be complicated from logistic and contractual exterior view. So we ended up planning for the quarter as I said with flat to probably is slightly lower.

David: <unk>.

David: Additionally, it's fair to comment that we entered January with a slightly lower production than we expected we have delay in collecting.

David: For the year now.

David: Now again to achieve the 95.

David: 95, <unk> hundred Kate.

David: I'll be at Ash in 2025.

David: We plan to ramp up production.

David: With a big ramp up in Q3, and Q4 and also we will see a bit of ramp up in <unk> in Q2.

Miguel Galuccio: And also, we will see a bit of ramp up in time in Q2. So I hope I have answered your question. And again, thanks for your coming in your report. Super. Thank you very much, Miguel. Thank you.

Speaker Change: So I hope I have Ontario question and again same for Yoko menu report.

Bruno Montanari: Super. Thank you very much, Miguel.

Brian: So Brian Thank you very much again.

Operator: Thank you. Our next question comes from Andrés Cardona of Citi. Please go ahead, Andre.

Andres Cardona: Our next question. comes from Andres Cardona of Citi. Please go ahead, Andres. Thank you. Good morning, everyone. Miguel, following on how to forecast production of baby going towards 2026. and linking it with the Bacamuerta South expansion. Could you please provide us an update about the status of the project, the dates of key dates of capacity, mixing capacity addition? How are you planning the production, evacuation between whenever you feel the capacity along until the first capacity from Bacamuerta South? Hi Andres. Thank you for your question. I think the main part of evacuation capacity that today is under contraction or under discussion is BEMO.

Speaker Change: Thank you our next question.

Comes from Andres Cardona of Citi. Please go ahead Andre.

Andrés Cardona: Thank you. Good morning, everyone. Miguel, following on the how to forecast production of maybe going towards 2026, linking it with the Vaca Muerta Sur expansion, could you please provide us an update about the status of the project, the key dates of maximum capacity, addition. How are you planning the production evacuation between whenever you feel the capacity at Oldelval until the first capacity from Vaca Muerta Sur is available?

Speaker Change: Thank you and good morning, everyone.

Speaker Change: Following on the on how to forecast for the auction maybe going towards 2026.

Speaker Change: Linking it with their bulk commodity.

Speaker Change: Solid expansion could you. Please provide us an update on the status of the project the dates of key rates of capacity midstream capacity leave.

Speaker Change: He has shown how are you planning.

Speaker Change: The prolonged Sean a lot Quey Sean between.

Speaker Change: Whenever you feel.

Speaker Change: <unk> file.

Speaker Change: Along the way.

Speaker Change: Capacity from a commodity suite is already known.

Miguel Galuccio: Hi, Andrés, thank you for your question. I think the main part of evacuation capacity that today is under construction or under discussion is VMOS. Let me give you an update on that one to begin with. We are seeing very good progress in that project. We already signed all the relevant documents related to the shareholder rights. I think also we did secure field transportation for capacity. That capacity, as a reminder, is 50,000 barrel oil per day for us. We know that the main EPC contractors have been awarded the construction of the pipe, also the storage tank at the terminal, and as well the port. Also, we know that the purchase order for the long-lead items have been placed, and in our estimation, we expect that project to be ready in mid-2027. The rest of the capacity is Oldelval, okay?

Speaker Change: Hi, Andres and thank you for your question I think the main part of my question.

Speaker Change: Why shouldn't capacity.

Speaker Change: Today is.

Speaker Change: Under our contract channel under discussion is very much. So let me give you an update on that one too.

Andres Cardona: So let me give you an update on that one to begin with. So we are seeing very good progress in that project. We already signed all the relevant documents related to the shareholder rights. I think also we need securing field transportation for capacity. That capacity, as a reminder, is $50,000 per day for us. We know that the main EPC contractors have been awarded the construction of the pipe, also the storage tank at the terminal, and as well the port. Also, we know that the purchase order for the loan-lid items has been placed, and in our estimation, we expect that project to be ready in mid-2027.

Speaker Change: To begin with.

So we are seeing very good progress in that project.

Speaker Change: We already signed.

Speaker Change: All the Revlon document related to the shareholder right. I think also we did secure infield transportation capacity.

Speaker Change: That capacity.

A reminder, a 50000 barrel oil per day for us.

Speaker Change: We know that the main EPC contractor has been award the contraction of the pipe.

Speaker Change: Also the storage tank at the terminal dwell.

Speaker Change: Well report.

Also we know that the purchase order for the long lead items has in place.

Speaker Change: In our estimation, we expect that project to be ready in mid 2027.

Andres Cardona: The rest of the capacity is Sol del Val, that we know that, as you know, is going to be ready in Q2. And the rest, we have all in hand. So, I think, going forward and looking to the future, the main thing for the medium-long term for us is Vaca Muerta Sol. Thank you.

Speaker Change: The rest of the capacity Soleil one okay that we know that the as you know.

Speaker Change: He is going to be ready in Q2.

Speaker Change: And the rates that we have all income.

Speaker Change: So I think.

Speaker Change: Going forward and looking to the future. The main theme for the medium long term for us is <unk>.

Operator: Thank you. Our next question comes from Tasso Vasconcellos of UBS. Please go ahead, Tasso.

Speaker Change: Thank you.

Tasso Vasconcellos: Our next question comes from Tasso Vasconcellos of UBS. Please go ahead, Tasso. Hi, Miguel. Hi, everyone. Thanks for taking my question here. Miguel, Vista has been able to increase the equipment set in the past two years, bringing additional drilling rigs and prac set and so on. So a question we have is on the internal process, the mindset from the company to evaluate eventually signing a fourth drilling rig. And of course, eventually increasing further the potential of annual wells drilling. So maybe split the question here into parts. What are the main metrics, the main drivers, vis-à-vis the main risks and bottlenecks that the company looks at when deciding to bring additional drilling rigs?

Speaker Change: Our next question comes.

Speaker Change: From <unk> Vasconcellos of UBS. Please go ahead also.

Tasso Vasconcellos: Hi, Miguel. Hi, everyone. Thanks for taking my question here. Miguel, Vista has been able to increase the equipment set in the past years, bringing additional drilling rigs and frac set and so on. A question we have is on the internal process, the mindset from the company to evaluate eventually signing a 4th drilling rig, and of course, eventually increasing further the potential of annual wells drilling. Maybe split the question here in 2 parts. What are the main metrics, the main drivers vis-a-vis the main risks and bottlenecks that the company look at when deciding to bring additional drilling rigs? The second part of the question, if you do decide to bring this additional drill rig, the 4th one, what could be the timing for such decision, and how could this impact the current guidance of 52 to 60 wells per year?

Speaker Change: Jaime Gail Hi, everyone. Thanks for taking my question here.

Speaker Change: You get LTE Vista has been able to increase the Depomed said in the past two years, bringing additional drilling rigs and Brexit and so on so a question. We have is not that there are no process.

Speaker Change: Mindset from the company to evaluate eventually signing up for three week and of course eventually increase even further the potential of annual wells.

Speaker Change: So maybe split the question two parts what are the main metrics. The main drivers vis a vis the main risks and bottlenecks that the company look at when deciding to bring additional during weeks and the second part of the question.

Tasso Vasconcellos: And the second part of the question, if you do decide to bring this additional drilling rig, the fourth one, what could be the timing for the decision? And how could this impact the current guidance of 52 to 62 wells per year? This is my question. Thank you. Thank you Tasso, very good question. We have discussed and we have the option to get the four rigs from NABOR, a company we have in a strategic relationship, as you know, all rigs that we run today are coming from them and this discussion is always ongoing. So, we have a board rig available to bring in, at the same term of condition that we have had, due to the relationship that we have with them.

Speaker Change: If you do decide to break these additional <unk> week the 401.

Speaker Change: What could be the timing for the decision and how could this impact the current guidance of 52 to six wells per year. This is my question. Thank you.

Tasso Vasconcellos: This is my question. Thank you.

Miguel Galuccio: Thank you, Tasso. Very good question. We have discussed, and we have the option to get a fourth rig from Nabors, a company we have a strategic relationship. As you know, all rigs that we run today are coming from them, and this discussion is always ongoing. We have a fourth rig available to bring in at the same term of condition that we have due to the relationship that we have with them. In terms of the decision-making process to make that call, I will say there are two probably main elements that we are following, and it will have to be positive for us to consider that. One is related to Andrés' question before, is the midstream project. Having the capacity in hand to have evacuation. I will say the second one, in my view, is Brent prices.

Speaker Change: Thank you Doug.

Speaker Change: Very good question so.

Speaker Change: We have discussed and we have the option to redeem four leak through neighborhoods.

Speaker Change: A company, we have a strategic relationship as you know.

All rigs that we run today coming from then in this discussion is always ongoing.

Speaker Change: So.

Speaker Change: We have a rig available to begin at the same time a condition that we have.

Speaker Change: Due to the relationship that we have we then in term of the decision making process to make that call.

Tasso Vasconcellos: In terms of the decision-making process to make that call, I would say there are two probably main elements. that we are following and it will have to be positive for us to consider that. One is related to Andres' question before, is the midstream project, so having the capacity in hand to have evacuation. And I will say the second one, in my view, is brand prices. I think we know we are looking at 2025 with softer brand prices that we saw in 2024. And if it's within our forecast range, I think it's something that we will consider at some point of time.

Speaker Change: <unk> said that they.

Speaker Change: They are two probably main.

Speaker Change: Elements.

Speaker Change: We are following.

Speaker Change: We've got to be positive for us to consider that.

Speaker Change: One is related to <unk> question before.

Speaker Change: <unk> III project.

Speaker Change: Having the capacity income.

Speaker Change: To have evacuation.

Speaker Change: And as we've said the second one in my view is Brent prices.

Miguel Galuccio: I think, as we know, we are looking at 2025 with softer Brent prices that we saw in 2024. If it's within our forecast range, I think it's something that we will consider at some point of time. If something change, it's clearly a no-go. That are the main two factors that we will be looking into.

Speaker Change: I think.

Speaker Change: No we are looking at 2025.

Speaker Change: Softer Brent.

Speaker Change: Prices that we saw in 2024.

Speaker Change: In our forecast range I think it's something that we would consider at some point of time, if he has something changed.

Tasso Vasconcellos: If it's something changed, it's clearly a no-go. So those are the main two factors that we will be looking into. All right, thank you. Thank you.

Speaker Change: It's clearly a novel so that are the main two factors that we will we will be looking each.

Tasso Vasconcellos: All right. Thank you.

Speaker Change: Alright, thank you.

Operator: Thank you. Our next question comes from Alejandro Demichelis of Jefferies. Please go ahead, Alejandro.

Speaker Change: Thank you.

Alejandro DeMichelis: Our next question comes from Alejandro Demichelis of Jeffries. Please go ahead, Alejandro. Yes, good morning, gentlemen. Thank you very much for taking my question. Miguel, I think you mentioned in your remarks that the pipe and the oil valve duplicar is completed and you expect the full ramp-up by the end of this quarter. Is that right? Just to confirm that. And if that is the case, how do you see your cost evolving during the rest of the Hi, Alejandro. Thank you for your question. So in case of LLVAL, the pipeline contraction is already finalized. The line pipe is in the pipe now.

Speaker Change: Our next question comes from Alejandro Demichelis of Jefferies. Please go ahead Alejandro.

Alejandro Demichelis: Yes. Good morning, gentlemen. Thank you very much for taking my question. Miguel, I think you mentioned in your remarks that the pipe and the Oleoductos del Valle duplicate is completed, and you expect the full ramp-up by the end of this quarter. Is that right? Just to confirm that. If that is the case, how do you see your cost evolving during the rest of the year?

Alejandro DeMichelis: Yes, good morning, gentlemen, thank you very much for taking my question.

Speaker Change: I think you mentioned.

Speaker Change: Our remarks that the pipe <unk> is completed on do you expect the full ramp up by the end of this quarter.

Speaker Change: Just to confirm that.

Speaker Change: And if that is the case, how do you see your cost evolving during the rest of the.

Miguel Galuccio: Hi, Alejandro. Thank you for your question. In case of Oleoductos del Valle, the pipeline construction is already finalized. The line pipe is in the pipes now, and we are already seeing a ramp-up in flowing volumes. Based on the information that we have, we expect a continued ramp-up and have full capacity available end of Q1 and early Q2. As you know, this will add 350,000 barrels per day to the system, what corresponds 31,500 barrels of oil per day for Vista. We also know that the expansion of the port terminal is also moving forward. Also, we have been informed that it's a good progress on the storage tank and dock. I believe Oleoductos del Valle is a reality already, and we have access to that. In term of cost, clearly that will have a big impact to us on the trucking front.

Alejandro DeMichelis: Hi, Alejandro.

Alejandro DeMichelis: Thank you for your question so.

Alejandro DeMichelis: <unk> engaged overwhelmed by the pylon contraction is already finalized.

Alejandro DeMichelis: The line pipe.

Alejandro DeMichelis: Is in the pipe now and we are already seeing a ramp up in <unk>.

Alejandro DeMichelis: And we are already seeing a ramp up in flowing volumes. So based on the information that we have, we expect a continued ramp up and have full capacity available in Q1 and early Q2. As you know, this will add 315,000 barrels of oil per day to the system, what corresponds to 31,500 barrels of oil per day for Vista. We also know that the expansion of the port terminal is also moving forward. So also we have been informing that it's a good progress on the storage tank and dock. So. I believe Old El Valle is a reality already and we have access to that.

Alejandro DeMichelis: <unk> volumes.

Alejandro DeMichelis: So based on the information that we have we expect continue ramp up.

Alejandro DeMichelis: Full capacity available annual Q1.

Alejandro DeMichelis: Early Q2.

Alejandro DeMichelis: As you know this will add 350000 barrels per day to the system with current Poland 31500 barrels of oil per day.

Alejandro DeMichelis: Mr.

Alejandro DeMichelis: We also know that the expansion of the board terminology social moving forward.

Alejandro DeMichelis: So also we have been informing that is a good progress on the storage tank and book So.

Alejandro DeMichelis: I believe <unk> Valley Sad reality already and we have access to that and demo course.

Alejandro DeMichelis: In terms of cost, clearly that will have a big impact to us on the tracking front. In mid-December, we picked 30,000 barrels per day on tracking and the cost went up all the way up north of $20 per barrel. So in Q2, all that cost is going to disappear. And clearly that will impact heavy debt. So, it's good news for us that Old El Val finally came through. Thank you. And in terms of the other costs, so lifting costs and drilling costs, how are you thinking about those? A drilling cost, I think, we don't see the drilling cost going up.

Alejandro DeMichelis: Clearly that we have.

Alejandro DeMichelis: A big impact to us on the tracking from.

Miguel Galuccio: In mid-December, we peaked at 30,000 barrels per day on trucking, and the cost went up all the way up north of $20 per barrel. In Q2, all that cost is going to disappear, and clear that will impact EBITDA. It's a good news for us that Oleoductos del Valle finally came through.

Alejandro DeMichelis: In mid December we picked a 30000 barrel per day on collecting on.

Alejandro DeMichelis: Sure.

Alejandro DeMichelis: Because wind went up all the way up north of $20 provided.

Alejandro DeMichelis: So in Q2 was that cost is going to disappear.

Alejandro DeMichelis: And clearly that will impact EBITDA.

Alejandro DeMichelis: So.

Alejandro DeMichelis: Is it good news for us.

Alejandro DeMichelis: Well finally came through.

Alejandro Demichelis: That's great. Thank you. In terms of the other costs, so lifting costs and drilling costs, how are you thinking about those evolving?

That's great. Thank you and in terms of the other costs, so lifting cost in drilling cost.

Alejandro DeMichelis: How are you thinking about those evolving.

Miguel Galuccio: Drilling costs, I think we don't see the drilling costs going up during the year. Lifting costs, as you know, we are planning to be slightly down to 2024.

Alejandro DeMichelis: Our drilling cost I think is.

Alejandro DeMichelis: We don't see the dividend cost.

Alejandro DeMichelis: Yep.

Alejandro DeMichelis: during the year and lifting costs. As you know, we are planning to be slightly down to 2024. Yeah, thank you. Thank you.

Alejandro DeMichelis: During the year.

Alejandro DeMichelis: On.

Alejandro DeMichelis: And lifting cost that you know we are planning to be slightly down to 'twenty 'twenty four.

Alejandro Demichelis: That's clear. Thank you.

Alejandro DeMichelis: Okay. Thank you.

Operator: Thank you. Our next question comes from Bruno Amorim of Goldman Sachs. Your line is open, Bruno.

Bruno Amarim: Our next question comes from Bruno Amarim of Goldman Sachs. Your line is open, Bruno. Thank you. Good morning, everybody. Hi, Miguel, Alejandro, and Gene. Thanks for taking my question. Can you please comment on your views for the overall M&A environment in Vaca Muerta? You know, some foreign players decided to leave, but not all of them necessarily operate the assets. You know, are those still your potential targets given some assets are operated by your local competitors? You know, what can you comment on the M&A environment? Thanks, Bruno, for your question. As you know, I mean, we called for a shareholder meeting that will take place next Monday to prepare Vista to be prepared for potential M&A activity.

Alejandro DeMichelis: Thank you.

Speaker Change: Our next question comes from Bruno Amorim Goldman Sachs. Your line is open Bruno.

Bruno Amorim: Thank you. Good morning, everybody. Hi, Miguel Galuccio, Alejandro Cherñacov, and team. Thanks for taking my question. Can you please comment on your views for the overall M&A environment in Vaca Muerta? Some foreign players decided to leave, but not all of them necessarily operate the assets. Are those still your potential targets given some assets are operated by your local competitors? What can you comment on the M&A environment? Thank you.

Speaker Change: Thank you good morning, everybody, Hi, Miguel Alejandro and team. Thanks for taking my question.

Speaker Change: Can you please comment on your views for the overall M&A environment, and Viacom where it some.

Speaker Change: Some foreign players decided to leave but not not all of them necessarily operate the assets are those just you your potential targets given some assets are operated by your local competitors. What can you comment on the M&A environment. Thank you.

Miguel Galuccio: Thanks, Bruno, for your question. As you know, we called for a shareholder meeting that will take place next Monday to prepare Vista to be prepared for potential M&A activity. Our attitude, the way that we are always very pragmatic. I will set discipline and opportunistic on the M&A front. We are always looking on everything that is happening that match with our focus that is still in Vaca Muerta shale oil. To answer your question, you have to take that we are disciplined, pragmatic, and opportunistic. We will look at everything, okay, that is on the table on that respect. We've been proving to be pretty good on this side as well. Thanks for your question, Bruno.

Bruno Montanari: Thank you Bruno for your question.

Speaker Change: As you know.

Speaker Change: We call for the shareholder meeting that will take place next Monday to prepare a beast.

Speaker Change: To wrap it up there for potential M&A activity.

Bruno Amarim: Our attitude, the way that we are, we are always very pragmatic. I would say discipline and opportunistic on the M&A front. So we are always looking at everything that is happening that match with our focus that is still being back and worth the shade oil. So I think to answer your question, you have to take that we are disciplined, pragmatic, and opportunistic. So we will look at everything that is on the table on that respect. and we've been proven to be pretty good on the business side as well. Thanks for your questions, Bruno. Thank you.

Speaker Change: I would actually do the way that we are we are always very pragmatic.

Speaker Change: We sit.

Speaker Change: Disciplined on.

Speaker Change: And opportunistic on the M&A front.

Speaker Change: So we are always looking and everything that this company that much with our focus that is still being.

Speaker Change: But come out of the shale oil.

Speaker Change: So I think.

Speaker Change: To answer your question you have to take that we are disciplined pragmatic opportunistic. So we will look at to equity. Okay that is on the table on that respect.

Speaker Change: And we've been proven to be pretty good on the <unk> side.

Bruno Montanari: Thank you for your question Bruno.

Bruno Amorim: Thank you.

Bruno: Thank you.

Operator: Thank you. Our next question comes from Milene Carvalho of JPMorgan. Please go ahead, Milene.

Bruno Montanari: Thank you.

Melin Carvalho: Our next question comes from Malin Carvalho of J.P. Morgan. Please go ahead, Malin. Hello, everyone. Thank you so much for the opportunity and congrats on the results. One of the things that we have been discussing with investors is whether brand prices could change and how operations impact We are seeing accommodation at the lower level, and at JP we do expect it to go a little bit lower. So if you could please comment on how do you see those impacting operations and how the flexibility of CAPEX considers the brand prices at lower levels. Jaime Lene, thank you very much for your question.

Speaker Change: Our next question comes from Merlin Carvajal of Jpmorgan. Please go ahead.

Milene Carvalho: Hello, everyone. Thank you so much for the opportunity. Congrats on the results. One of the things that we have been discussing with investors is whether Brent prices could change somehow operations and CapEx. We are seeing accommodation at a lower level. At JPMorgan, we do expect it to go a little bit lower. If you could please comment on how do you see this impacting operations and how the flexibility of CapEx considers these Brent prices at lower levels.

Hello, everyone. Thank you so much for your for Attunity and congrats on the results.

Speaker Change: One of the things that we have been discussing with investors.

Our brand prices could change somehow operations and Capex, we are seeing.

Speaker Change: Accommodation of a lower level and at J P would you expect it to go a little bit lower so he can't please comment on how do you see that impacting operations and how the flexibility of Capex considering stance brand prices at lower levels.

Speaker Change: Thank you very much for your question.

Miguel Galuccio: When we look at the downside risk in Brent, And we look at this year, I mean, we see, as I mentioned before, a supply-demand fundamental to be with a market that would be softer than we have seen in in 2024. This is mainly driven by the low oil demand, which is forecast to grow only one million barrels during this year. And on the other hand, on the supply side, we see at least 1.2 million barrels coming in, driven by Brazil, USA. Guyana also is coming with an increase. Canada and, interestingly enough, Argentina also appear in the list with an increase of 100,000 barrels per day.

Speaker Change: When.

Speaker Change: When we look at the downside risk in brand.

<unk>.

Speaker Change: And we look at this year I mean, we see as I mentioned before the supply demand fundamentals to be a market that would be softer than we have seen.

Speaker Change: In 2024.

Speaker Change: This is mainly driven by the low oil demand, which is forecast to grow only 1 million barrel during this year.

Speaker Change: On the other to come on the supply side.

Speaker Change: We see a lease.

Speaker Change: One 2 million barrels coming in.

Speaker Change: Driven by Brazil USAID.

Speaker Change: We are now also is coming with increased Canada.

Speaker Change: And interestingly enough Argentina also appear in the lease with an increase.

Speaker Change: 100000 barrel oil per day.

Miguel Galuccio: So we have built our plan. with a price assumption of a range of $70 to $80. This implies $63 to $72 of reliable prices. And we are currently seeing Q1 prices on the higher part of this range that we have forecast. So Q1 is coming ahead of what we planned. If the reliable prices are between $65 and $67, we will probably maintain our current price. In case, as we said, that the real life prices go below 55, then we will consider adjusting our capital investment for the year. As you know, we have a super flexible portfolio.

Speaker Change: So we have built our plan.

Speaker Change: With a price assumption of brand of where.

Speaker Change: In a range of 70 to $80. This implies 63 to <unk> 72.

Speaker Change: <unk> prices.

Miguel Galuccio: We are currently seeing Q1 prices on the higher part of this range that we have forecast. Q1 is coming ahead of what we planned. If the reliable prices are between $65 and $67, we will probably maintain our current plan. In case, as we said, that the reliable prices go below $55, then we will consider adjusting our capital investment for the year. As you know, we have a super flexible portfolio. We always said that we have a short cycle CapEx since the drilling and the completion take almost a month. We always have the flexibility to stop and also to accelerate. These are the parameters that you need to think that will drive for us to review our CapEx plan. I don't forecast that we will be below $55 this year, but we have the ability to react if that happens.

Speaker Change: We are currently see Q Q1 prices.

Speaker Change: Higher on the higher part of this range.

Speaker Change: That we have forecast so Q1 is coming.

Speaker Change: Our hit what we plan.

Speaker Change: So.

Speaker Change: If either a local prices.

Speaker Change: <unk> 65.

Speaker Change: 67.

Speaker Change: We will probably maintain our current plan.

Speaker Change: In case that we said that the.

Speaker Change: Realized prices go below 55, then we will consider adjusting.

Speaker Change: Our capital investment for the year.

Speaker Change: As you know we have a super flexible portfolio, we always said that we have a shorter cycle.

Miguel Galuccio: We always said that we have a short cycle. CAPEX sees the drilling and the completion take almost a month, so we always have the flexibility to stop and also to accelerate. So, but these are the parameters that you need to think that will drive for us to review our CAPEX plan. I don't forecast that we will be below 55 this year, but we have the ability to react if that happens. All right, thank you very much. You're welcome, Milene. Thank you.

Speaker Change: Capex.

Speaker Change: <unk> dividend and the completion take.

Speaker Change: Our amongst demand.

Speaker Change: We are always and have the flexibility to adopt and also to escalate.

Speaker Change: But this Saturday parameter that is a unique thing that will drive for us to review our Capex plan.

Speaker Change: I don't forecast that we will be below 50, <unk> here, we have the ability to react quickly.

Speaker Change: Thats helpful.

Milene Carvalho: All right. Thank you very much.

Speaker Change: Alright. Thank you very much you are welcome.

Miguel Galuccio: You're welcome, Milene.

Operator: Thank you. Our next question comes from Walter Chiarvesio of Santander. Please go ahead, Walter. Walter, your line is open. Please make sure your line is unmuted. You can press speakerphone with your handset.

Walter Gervesio: Our next question comes from Walter Gervesio of Santander. Please go ahead, Walter. Walter, your line is open. Please make sure your line is unmuted and you can ask a speaker from the... Can you hear me? Yes, sir. Please proceed. Yes, oh sorry. Yes, hello. Thank you for taking my question. Going back to the listing and CapEx costs, can you develop a little bit, what is the impact of the super peso on that? I know that the NEDVAC margins are strong, but is that something that, or if you can quantify how much has impacted in 2004, and how do you see 2035 and looking forward if this is something that we should be concerned, I mean the impact of the stronger currency in Argentina?

Speaker Change: Thank you. Our next question comes from Walter <unk> of Santander. Please go ahead Walter.

Speaker Change: Walter Your line is open please make sure. Your line is muted from a speaker phone lift your handset.

Walter Chiarvesio: Can you hear me?

Speaker Change: Can you hear me, yes, Sir please proceed.

Operator: Yes, sir. Please proceed.

Walter Chiarvesio: Yes. Oh, sorry. Yes, hello. Thank you for taking my question. Going back to the lifting and CapEx cost, can you develop a little bit what is the impact of the super peso on that? I know that the netback margins are strong, but is that something that, or if you can quantify how much has impacted in 2024, and how do you see 2025 and looking forward, if this is something that we should be concerned? I mean, the impact of the stronger currency in Argentina. That's it from me.

Speaker Change: Yes, Hi, also yes, Hello, and thank you for taking my question.

Speaker Change: I think going back to the lifting and capex costs.

Speaker Change: Yeah.

Speaker Change: Can we develop a little bit what is the impact of the super peso on that they know that the mid <unk> margins are strong but.

Speaker Change: Is that something that you can quantify how much impact in terms of <unk>, how do you see.

Speaker Change: Finally on looking forward. If this is something that we should be.

Speaker Change: Well, certainly I mean the impact of.

Speaker Change: The stronger currency in Argentina.

Walter Gervesio: That's it from me. Hi, Walter, thanks for the question. Probably starting with the lifting cost. So, as you know, I mean, we record in Q4 $4.7 per barrel. this uplifting cause that was 1% down vis-a-vis our Q3. and basically I'm playing that because the reason of that was that we start to, we continue capturing the benefits of economy of scale. and the dynamic on the lifting cost that every time that we ramp up production, we dilute our feed cost. We also, as you mentioned, we see cost pressure during 2024 driven by the flood effects and the peso inflation.

Speaker Change: Thats It from me.

Miguel Galuccio: Hi, Walter, and thanks for the question. Probably starting with the lifting cost. As you know, we record in Q4, $4.7 per barrel. This lifting cost, that was 1% down vis-a-vis our Q3. Basically, I'm explaining that because the reason of that was that we continue capturing the benefit of economy of scale and the dynamic on the lifting cost, that every time that we ramp up production, we dilute our fixed cost. As you mentioned, we see cost pressure during 2024 driven by the FX effects and the peso inflation. This effect will still play a role in the cost dynamic and will continue offsetting some of the savings that we continue putting in place.

Speaker Change: Hi, Walter Thanks for the question.

Speaker Change: Probably starting with the lifting cost.

Speaker Change: <unk>.

Speaker Change: So as you know I mean, we recorded in Q4 $4 $7 per barrel.

Speaker Change: This.

Speaker Change: <unk> of lifting cost that was 1% down vis vis our Q3.

Speaker Change: And basically I'm playing in that because the reason of that was that we started to we continued capturing the benefits of economy of scale.

Speaker Change: On the dynamic on the lifting cost that every time that we will ramp up production, we reduced our fixed costs.

Speaker Change: We also as you mentioned, we see cost pressure during 2024.

Speaker Change: Driven by the flood effects and the peso inflation.

Walter Gervesio: These effects will still play a role in the co-dynamic and will continue offsetting some of the savings that we continue putting in place. Now we think that this effect will be lower, will have a lower impact in 2025. As we assume that personal inflation continues to decelerate. So during 2025, we expect a slight reduction in lifting costs. as we continue to invest in cost-cutting initiatives and also as we continue increasing production. So we are guiding lifting costs between $4.3 and $4.5 per barrel. On the CAPEX side, 70% of our CAPEX, as you know, is U.S.

Speaker Change: This effect will still playing a role in the Gulf dynamic and we'll continue offset offsetting some of the savings that we continue putting in place.

Miguel Galuccio: We think that this effect will have a lower impact in 2025 as we assume that peso inflation continue to decelerate. During 2025, we expect a slight reduction in lifting costs as we continue to invest in cost-cutting initiatives and also as we continue increasing production. We are guiding lifting costs between $4.3 and $4.5 per barrel. On the CapEx side, 70% of our CapEx, as you know, is US dollar denominated, and 30% is peso denominated. We are assuming our plan that our cost of well is going to be between $14 and $14.5 million. There, as we said, one thing that we are doing that we have not communicated, but I'm happy to share with you. With the new promotion of Matías Weissel as CEO of the company, we have the benefit of having Juan Garoby, that have run the operations since the start of Vista.

Speaker Change: Now we've seen that this effect will be lower but we have a lower impact in 2025.

Speaker Change: Us.

Speaker Change: We assume that based on inflation continues to decelerate.

Speaker Change: So during 2020, we have taken as late reduction in lifting costs.

Speaker Change: And we continue to invest in cost cutting initiative and also as we continue increase in production. So we are guiding lifting goes.

Speaker Change: Between four three and $4 $5 per barrel.

Speaker Change: On the Capex side.

Speaker Change: 70% of our topic as you know is U S dollar denominated on 30% is peso denominated.

Walter Gervesio: dollar denominated, and 30% is peso denominated. We are assuming in our plan that our cost of oil is going to be between $14 and $14.5 million. um There, I will say the one thing that we are doing that we have not communicated, but I'm happy to share with you, with the new... promotion of Matias Huesel, CEO of the company, we have the benefit of having Juan Garobi that has run the operation since. since the start of Vista, and is not only an international and very seasoned manager, but also within his skill set, he comes from the oil contraction side.

Speaker Change: We are.

Speaker Change: We are assuming in our plan that well our cost of well is going to be between 14 and $14 five.

Speaker Change: <unk>.

Speaker Change: There are we said the one thing that we are doing that we have not communicated but I'm happy to share with you.

Speaker Change: With the with the new.

Speaker Change: Promotion of material way to the CEO of the company.

We have.

Speaker Change: The benefit of having one guide.

Speaker Change: Yes.

Speaker Change: Run the operations teams.

Speaker Change: <unk>.

Speaker Change: In the start of Vista.

Miguel Galuccio: He's not only an international and very seasoned manager, but also within his skillset, he comes from the well construction side. We have asked him to start a multi-year plan to look at what we can do, not to improve the efficiency of our CapEx, but look into what we can do to change the game in terms of what we do in terms of well construction. We have put with him, he has built a full team, a task force, that will be focused in a multi-year effort with one really rig assigned to try what we can do to change the game or to change the way that we do things on the well construction side. I have high hope for that initiative as well. Thank you for your question.

Speaker Change: And half is.

Speaker Change: He is not only in international.

Speaker Change: Im very soon manage it but also we didn't see the skill set he come from the world contraction sites.

Speaker Change: So we've got a scheme to got a multiyear plan to look at what we can do not to.

<unk>.

Speaker Change: Improved efficiency of our Capex.

Speaker Change: But look into what we can do to change the game in terms of what we do in term of well contraction.

Speaker Change: So we have put with him.

Speaker Change: I believe.

Speaker Change: A task for that will be focused in a multiyear effort.

With one rig assigned.

Speaker Change: To drive what we can do.

Speaker Change: To change the game on to change the way that we do things on the world contraction site. So.

Speaker Change: K Cup for that initiative.

Walter Gervesio: Thank you for your question. Thank you very much for the answer. Thank you.

Speaker Change: Thanks for your question.

Walter Chiarvesio: Thank you very much for the answer.

Speaker Change: Thank you very much for the answer.

Operator: Thank you. Our next question comes from Leonardo Marcondes of BofA. Please go ahead, Leonardo.

Leonardo Macondas: Our next question comes from Leonardo Macondas of B of A. Please go ahead, Leonardo. Hi, everyone. Thanks for my question here. So my question is, why don't you guys accelerate the production growth by bringing more equipment to do more wells in Argentina? And if the answer is limited capital availability, why not think about potential follow-on capital increase, given that Vista has one of the best being in Latin America? Thank you very much. Thank you, Leo. Very good question. I think the reason why we trade one of the highest in LATAM It's because we provide a higher growth with the best-in-class operational track record.

Speaker Change: Thank you. Our next question comes from Leonardo Mccandless Bofa. Please go ahead Leonardo.

Leonardo Marcondes: Hi, everyone. Thanks for taking my question here. My question is, why don't you guys accelerate the production growth by bringing more equipment to drill more wells in Argentina? If the answer is limited capital availability, why not think about potential follow on capital increase, given that Vista has one of the best valuations in Latin America? Thank you very much.

Leonardo Mccandless: Hi, everyone. Thanks for taking my question here.

Speaker Change: So my question is.

Speaker Change: Why didn't you guys accelerate.

Speaker Change: Production growth by bringing more.

Speaker Change: More wells in Argentina.

Speaker Change: And if the answer is no.

Speaker Change: Limited capital availability why not think about.

Speaker Change: <unk> kept our inquiry even.

Speaker Change: With that has one of the best valuation.

Speaker Change: The America. Thank you very much.

Miguel Galuccio: Thank you, Leo. Very good question. I think the reason why we trade one of the highest in LATAM, is because we provide a high growth, with the best-in-class operational track record. As I mentioned before, Chubut last year we grow 36% year over year, and this year we plan to grow again between 35% and 40%. It's not really a capital issue. As I mentioned to him as well, there is an art to find the sweet spot that combines the activity intensity that is required to fulfill the plan. As well as being very cautious of what is the velocity that we apply to the development of our field in order to optimize the output and NPV of the production that we put in place.

Thank you very good question.

Speaker Change:

I think the reason why with today that one of the highest in Latam.

Is because we provide a higher grow with the best in class operational track record.

Leonardo Macondas: As I mentioned before, Chubruno last year grew 36% year-over-year, and this year we plan to grow again between 35% and 40%. So it's not really a capital issue. As I mentioned to him as well, there's an art to find a sweet spot that combines the activity intensity that is required to fulfill the plan. as well as being very cautious of what is the velocity that we apply to the development of our field. in order to optimize. the output and MPV of the production that we put in place. So, as you know, as we develop our plan and we develop our field, we have a combination of intensity in development and the risking at the same time.

Speaker Change: As I mentioned before June of last year, we grew 30 simple seemingly at Odeon and this year we.

Speaker Change: We plan to run again.

Speaker Change: Between 30 and 40%.

Speaker Change: So it's not really a <unk>.

Speaker Change: Capital issue.

Speaker Change: As I mentioned <unk> as well.

Speaker Change: They are.

Speaker Change: I will now have to find the sweet spot.

Speaker Change: That combined the.

Speaker Change: Activity intensity that is required to fulfill the plan.

Speaker Change: As well as being very cautious so what is the velocity.

Speaker Change: We applied to the development of our field.

Speaker Change: In order to optimize.

Speaker Change: The output and NPV of the production that we put in place.

Miguel Galuccio: As you know, as we develop our plan and we develop our field, we have a combination of intensity in development and de-risking at the same time. We have to de-risk areas to make sure that we will continue drilling the best well that we can drill to maximize the value of the development of those fields. Back to your question, I think it's not a matter of CapEx. I think we are growing super fast. I mean, double digits, 35% to 40% growth. We believe we are optimizing the way that we manage the reservoir, and we optimize the NPV of what we are putting in place. Yes, as you mentioned, we have probably one of the best multiples. Now, I believe we also continue to be cheap.

Speaker Change: So.

Speaker Change: You know as we develop our plan and we will develop our field.

Speaker Change: We have a combination of intensity in development and the risky they're listening at the same time, we have to be at least areas to make sure that we were.

Leonardo Macondas: So we have to de-risk areas to make sure that we will continue drilling the best well that we can to maximize the value of the development of those fields. Back to your question, I think it's not a matter of CAPEX. I think we are growing super fast. I mean, double digits, 35%, 40% growth. And we believe we are optimizing the way. that we manage the reservoir and we optimize the NPV of what we are putting in place. And yes, as you mentioned, we have probably one of the best multiples. Now, I believe we also continue to be cheap when you go back to the U.S.

Speaker Change: Bill.

Speaker Change: We will continue drilling the best wells, we can drill.

Speaker Change: To maximize the value of.

Speaker Change: The development of those fields.

So.

Speaker Change: Back to your question I think is not a model.

Speaker Change: Capex I think we are growing super fast.

Speaker Change: Double digit 35, 40% grow.

Speaker Change: And we believe we are optimizing.

Speaker Change: The way.

Speaker Change: That we manage the reservoir and we optimize NPV.

Speaker Change: We are putting in place.

Speaker Change: Yes, as you mentioned we have.

Speaker Change: Probably one of the best multiples.

Speaker Change: Now I believe we also.

Speaker Change: Continue to be cheap.

Miguel Galuccio: When you go back to US and you look at companies like Vista growing 35%, 40% a year. Back 10 years ago, their multiple was around 8. Our multiple today is about 4. I feel we're still cheap for the growth that we are delivering. Thank you for your question, Leo.

Leonardo Macondas: and you look at companies like Vista growing 35%, 40% a year. Back 10 years ago, their multiple was around eight, and we're multiple today is about four. So I feel we're still cheap for the growth that we are delivering. And thanks for your question, Leo. Thank you very much.

Speaker Change: When you go back to U S and you look at company level, EBITDA growing 35%, 40% a year.

Speaker Change: Back 10 years ago, there are multiple was around eight.

Speaker Change: Our multiple today is about four so.

Speaker Change: I feel we are still cheap for the growth that we're delivering.

Speaker Change: Thanks for your question there.

Leonardo Marcondes: Got it. Thank you very much.

Speaker Change: Got it thank you very much.

Juan Jose Munoz Rios: Thank you. Our next question. Comes from Juan Jose Munoz Rios of BTG. Please go ahead, Juan. Hi, everyone, and thank you for the opportunity. Just in the Bacón-Huertas project, I want to ask how much is the CAPEX associated to the project in 2025 to be deployed for by you. Thank you. Hi Juan José, thanks for your question. So first, probably, we want to comment that we separate CAPEX from investment. So CAPEX, we still expect to be between $1.1 and $1.3 billion. And that does not include the background worth of food investment. The total project investment for Bacamorta Sur is estimated at around $3 billion.

Operator: Thank you. Our next question comes from Juan Jose Munoz Rios of BTG. Please go ahead, Juan.

Speaker Change: Thank you.

Speaker Change: Our next question.

Speaker Change: It comes from Juan Jose <unk> of BTG. Please go ahead Juan.

Juan Jose Munoz Rios: Hi, everyone, and thank you for the opportunity. Just in the Vaca Muerta Sur project, I want to ask how much is the CapEx associated to the project in 2025 to be deployed for by you? Thank you.

Juan Jose: Hi, everyone and thank you for the opportunity.

Juan Jose: Yes, indeed back on one project I want to ask how much of the Capex capex associated to the project and plan to make high speed deploy for them.

Juan Jose: No.

Juan Jose: Thank you.

Miguel Galuccio: Hi, Juan Jose. Thanks for your question. First, probably, we were to comment that we separate CapEx from investment. CapEx, we still expect to be between $1.1 to 1.3 billion, and that does not include the Vaca Muerta Sur investment. The total project investment for Vaca Muerta Sur is estimated around $3 billion. There is a potential bank financing of 40% to 60% of that project. In our calculation, we are assuming that our equity investment will be in the range of $120 to 180 million. That is how you have to look our CapEx and investment for the year.

Juan Jose: I want to say thank you for your question.

Juan Jose: So first probably we reward to comment that we set payout capex from investment.

Juan Jose: So capex, we still expect to be between one one and $1 3 billion.

Juan Jose: And that does not include the back more of that full investment.

Juan Jose: The total project investment product Gomorrah Vasu is estimated at around $3 billion.

Juan Jose Munoz Rios: There is a potential bank financing of 40 to 60% of that project. So in our calculation, we are assuming that our equity investment will be. in the range of $120 to $180 million. is how you have to look at our CAPEC and investment for the year. Great, thanks. Thank you.

Juan Jose: There is a potential bank financing of 40% to 60% of that project.

Juan Jose: In our calculation, we are assuming that our equity investment will be.

Juan Jose: In the range of <unk>.

Juan Jose: $120 million to $180 million.

Juan Jose: So that.

Juan Jose: The scale you have to look our capex and investment for the year.

Juan Jose Munoz Rios: Okay. Thanks.

Juan Jose: Great. Thanks.

Operator: Thank you. Our next question comes from Marina Mertens of Latin Securities. Please go ahead, Marina.

Juan Jose: Thank you.

Marina Mertens: Our next question. comes from Marina Mertens of Latin Securities. Please go ahead, Marina. Hi, good morning, and thank you for taking my question. So regarding the potential lifting of capital controls, what would be the main benefits for Vista? Do you expect any improvements at an operational level, and could it eventually lead to accelerating your growth plan? Thank you, Marina. Good question. I think the ease or lift of capital control will benefit the full industry. And of course, it's going to benefit us. If you think about what could be the main benefit, probably I think about two elements.

Juan Jose: Our next question.

Speaker Change: Comments from Marina merchants of Latin Securities. Please go ahead Marina.

Marina Mertens: Hi. Good morning, and thank you for taking my question. Regarding the potential lifting of capital controls, what would be the main benefits for Vista? Do you expect any improvements at an operational level? Could it eventually lead to accelerating your growth plan?

Speaker Change: Hi, Good morning, and thank you for taking my question so regarding the potential use of capital.

Speaker Change: What would be the main benefits.

Speaker Change: Thanks Beth.

And then John I don't know operational.

Speaker Change: And could could even slightly needed to accelerating your growth plan.

Miguel Galuccio: Thank you, Marina. Good question. I think the ease or lift of capital control will benefit the full industry. Of course, it's going to benefit us. If I think about what could be the main benefit, probably I think about two elements. The first element is, it will make us more competitive. It will make us more competitive because we will probably have two impacts. One is more investment coming into Argentina, so again, more competition, more companies, and I think that is good. I've always believed that as we scale up our activity, we all benefit. Today, Vaca Muerta run with 33 rigs. US run between 400 and 500 rigs. If you will go to 100, 150 rigs, the cost of drilling, it will be a completely different one, and therefore we'll become more competitive.

Marina: Thank you Marina.

Speaker Change: Good question.

Speaker Change: I think the E <unk> lead to capital controller.

Speaker Change: We benefit the food industry.

Speaker Change: And of course is going to benefit us.

Speaker Change: If you if you if you think about what could be the main benefit probably I think about two elements.

Marina Mertens: The third element is... It will make us more competitive. It will make us more competitive because we will probably have to impact. One is more investment coming into Argentina. So again, more competition, more companies. And I think that is good. I've always believed that as we scale up our activity, we all benefit. So today, Bacamorta run with 33 rigs. US run between 400 and 500 rigs. So if you will go to 100, 150 rigs, the cost of drilling, it will be a completely different one. And therefore, it will become more competitive. Also, for service companies to come over to Argentina or to increase the capacity that they have today, I think an ease or lift on capital control will make a big difference.

Speaker Change: The first element.

Speaker Change: Is.

Speaker Change: It will make us more competitive.

Speaker Change: It will make us more competitive because.

Speaker Change: We will probably have.

Speaker Change: Two impacts.

Speaker Change: One is more investment coming into Argentina.

Speaker Change: So again more competition more companies.

Speaker Change: And I think that is good.

Speaker Change: I always believe that.

Speaker Change: As we.

Speaker Change: Can we scale up our activity, we all benefit.

Speaker Change: So today by commodity around with 33 rigs.

Speaker Change: U S run between 405 hundred rigs.

Speaker Change: So if you go to can be can be in 50 rigs.

Speaker Change: The cost of drilling.

Speaker Change: It will be a completely different one.

Speaker Change: Therefore, we will become more competitive also for service companies.

Miguel Galuccio: Also for service companies, to come over to Argentina or to increase the capacity that they have today, I see an ease or lift on capital control will make a big difference. As you know, I used to run a service company, so I know how much it means for them. It will be a super good news, and it will make the whole industry in Vaca Muerta more competitive due to these two effects.

Speaker Change: To come over to Argentina or to increase the capacity that we have to date.

Speaker Change: I see on east.

Speaker Change: Lift on capital control will make a big difference.

Marina Mertens: As you know, I mean, I used to run a service company, so I know how much it means for them. So it will be super good news. I mean, it will make the whole industry in Baca Muerta more competitive due to these two effects. Thank you for your questions, yeah. Thank you.

Speaker Change: As you know I used to run a service company. So I know how much you mean for them.

So it will be a super good news and we will make the whole industry embark on water more competitive due to these two effects.

Marina Mertens: Thank you.

Miguel Galuccio: No more questions. Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Operator: Thank you. Our next question comes from Oriana Covault of Balanz. Please go ahead, Oriana.

Speaker Change: Thank you.

Oriana Covault: Our next question comes from Oriana Covault of Bolland, please go ahead Oriana. Hi, thanks for taking my question. This is Oriana Covault with Balance. I have, you mentioned Brent pricing and potential volatility impacting your cap expense and so on. So I'm curious to know if you've considered establishing a hedging policy just to mitigate the potential effects of volatility. Thank you. Hi, Oriana. Thanks for your question. Yeah, we have done that exercise, and we have had the discussion many times during the last. several years that we've been running business in Argentina. And the answer is... But the answer that we have come up with is that we are already naturally hedged.

Our next question. Our next question comes from Ariana Cobalt Avalanche <unk>.

Speaker Change: Please go ahead Arianna.

Speaker Change: Hi, Thanks for taking my question did you say you Nicola Mallard.

Speaker Change: You mentioned.

Speaker Change: Brent pricing and potential volatility impacting your cap expense is from the line. So I'm curious to know if you can see then.

Speaker Change: And any.

Speaker Change: Any hedging policy is to mitigate the potential impact on our community.

Speaker Change: You.

Miguel Galuccio: Hi, Oriana. Thank you for your question. Yeah, we have done that exercise, we have had the discussion many times during the last several years that we've been running business in Argentina. The answer that we have come up with is that we are already naturally hedged. Being a very low-cost producer, having no large debt maturities, and also having that flexibility of a short cycle CapEx where we can accelerate and stop any time, and I think we proved that during the COVID-19 years. Also, let's face it, many of our investors can hedge themselves more efficiently than we do. Also, if we hedge and we end up being successful in the hedging strategy, it will be considered one-off. If we hedge and we miss it will damage us. No, the answer is we don't plan to hedge.

Speaker Change: Hi, Irina Thanks for your question.

Speaker Change: Yes, we have done that exercise and we have the discussion many time during the.

Speaker Change: Less.

Speaker Change: Several years that we've been running business in Argentina.

Speaker Change: On the on cities.

Speaker Change: That's the answer that we have come up with is that we are already naturally hedged.

Oriana Covault: Being a very low cost producer, having no large dematurities. And also having that flexibility of a short cycle CAPEX where we can accelerate and stop at any time. And I think we proved that during the COVID-19 pandemic. the earth. Also, I mean, let's face it, I mean, many, many of our investors can fetch themselves more efficiently than we do. And, and also, if we fetch and we, we, we end up Having been successful in the hedging strategy, it will be considered one-off. And if we hedge and we miss it, it will damage us. So no, the answer is we don't plan to hedge.

Speaker Change: Being a very low cost producer.

Speaker Change: Having no lost their maturities.

Speaker Change: And also having industrial community of short cycle, Capex, where we can accelerate and installed by anytime.

We proved that during the COVID-19.

Yes.

Speaker Change: Also I mean, let's face it I mean, many many of our investor.

Speaker Change: Catch then cells more efficiently that we do.

Speaker Change: <unk>.

Speaker Change: And also if we catch them, we end up having.

Speaker Change: Having.

Speaker Change: <unk> been successful in the hedging strategy you will be considered a one off and if you we hedge and we missed it.

Speaker Change: It will damage.

Speaker Change: So no. The answer is we don't plan to hedge and then every time that we go through that discussion, we convinced ourselves that being natural hedging diverse ways that we can hedge our business.

Miguel Galuccio: Every time that we go through that discussion, we convince ourselves that being natural hedge is the best way that we can hedge our business.

Oriana Covault: And every time that we go through that discussion, we convince ourselves that being natural hedge is the best way that we can hedge our business. Thank you very much. Thank you.

Oriana Covault: Thank you very much.

Speaker Change: Thank you very much.

Operator: Thank you. I would now like to turn the conference back to Miguel Galuccio for closing remarks. Sir?

Speaker Change: Thank you I would now like to turn the conference back to Magellan Coluccio for closing remarks, Sir.

Miguel Galuccio: Well, thank you very much for participating, for your questions, for your reports. I take the opportunity to thank also all the team of Vista that have made this 2024 possible. It was a difficult plan to deliver, because we're internationally remote, but we make it happen. Thanks to them and all the great people that work with us. Thank you very much and have a good day.

Magellan Coluccio: Well. Thank you very much for participating for your questions for your report.

Speaker Change: Take the opportunity just things also.

Speaker Change: Bill.

Speaker Change: <unk>.

Speaker Change: The team of Vista.

Speaker Change: Cut made these 2024 possible.

Speaker Change: It was a difficult it was a difficult plan to deliver.

Speaker Change: With in depth shortly.

Speaker Change: But we make it happen. So thank you there are no liquidated to the people that work with us. Thank you very much and have a good day.

Miguel Galuccio: Thank you very much and have a good day.

Operator: This concludes today's conference call.

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

Operator: Thank you for participating.

Operator: You may now disconnect.

Q4 2024 Vista Energy SAB de CV Earnings Call

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