Q1 2026 Vista Energy SAB de CV Earnings Call

April 30, 2026

Operator: Good day, and thank you for standing by. Welcome to Vista's Q1 2026 earnings webcast conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, we'll open up for questions. Please be advised that today's call is being recorded. I would now like to hand it over to our first speaker, Alejandro Cherñacov. This is Strategic Planning and Investor Relations Officer. Please go ahead.

Speaker #1: Good day, and thank you for standing by. Welcome to Vista's first quarter 2026 earnings webcast conference call. At this time, all participants are on a listen-only mode.

Speaker #1: After the speakers' presentation, we'll open up for questions. To ask a question during the session, you will need to press star 11 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's call is being recorded, and I'd like to hand it over to our first speaker, Alejandro Cheracov, Vista's strategic planning and investor relations officer.

Speaker #1: Please go ahead.

Speaker #2: Thanks. Good morning, everyone. We are happy to welcome you to Vista's first quarter 2026 results conference call. I am here with Miguel Galuccio, Vista's chairman and CEO, Pablo Verapinto, Vista's CFO, Juan Garobi, Vista's CTO, and Matías Weisel, Vista's COO.

Alejandro Cherñacov: Thanks. Good morning, everyone. We are happy to welcome you to Vista's Q1 2026 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 the 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 financial measures such as Adjusted EBITDA and Adjusted Net Income.

Alejandro Cherñacov: Thanks. Good morning, everyone. We are happy to welcome you to Vista's Q1 2026 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 the 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 financial measures such as Adjusted EBITDA and Adjusted Net Income.

Speaker #2: 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.

Speaker #2: These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks.

Speaker #2: 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 financial measures such as adjusted EBITDA and adjusted net income, reconciliations of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday.

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 #2: 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.

Speaker #2: 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 #3: Thanks, Ale. Good morning and welcome to this earning call. During the first quarter of 2026, we may solid progress in our annual work program.

Miguel Galuccio: Thanks, Ale. Good morning, and welcome to this earnings call. During Q1 of 2026, we made solid progress in our annual work program on the back of a robust new well productivity. Total production was 135,000 BOEs per day, up 67% year-over-year. Oil production was 117,000 barrels per day, an increase of 68% vis-à-vis the previous year. Total revenues during the quarter were $694 million, 58% above the same quarter of last year. Lifting cost was $4.3 per BOE, 8% below year-over-year. Capital expenditure was $391 million, driven by a strong progress in new well activity during the quarter. Adjusted EBITDA was $451 million, an interannual increase of 64%.

Speaker #3: On the back of a robust new work productivity. Total production was 135,000 BOEs per day. Up 67% year over year. All production was 117,000 barrels per day, an increase of 68% vis-à-vis the previous year.

Speaker #3: Total revenues during the quarter were 394 million dollars. 58% above the same quarter of last year. Lifting costs was 4.3 dollars per BOE, 8% below year over year.

Speaker #3: Capital expenditure was 391 million dollars, driven by a strong progress in new work activity during the quarter. Adjusted EBITDA was 451 million dollars, and inter-annual increase of 64%.

Speaker #3: Net income was 108 million dollars, leading to earnings per share of 1 dollar during the quarter. Free cash flow was minus 341 million dollars, impacted by 331 million dollars of non-recurring items of which 206 million dollars corresponded to the initiation of VESA operation on a delivery basis.

Miguel Galuccio: Net income was $108 million, leading to earnings per share of $1 during the quarter. Free Cash Flow was -$341 million, impacted by $331 million of non-recurring items, of which $206 million corresponded to the initiation of BEESA operation on a delivery basis. Without these non-recurring items, Free Cash Flow in the quarter would have been almost neutral. Finally, our Net Leverage Ratio at quarter end was 1.7x Adjusted EBITDA. During Q1 2026, we tied in 23 wells, 12 in Bajada del Palo Oeste, 4 in Bajada del Palo Oeste, and 7 net wells in La Amarga Chica. This represent very good progress compared to our guidance of 80 to 90 wells for the full year.

Speaker #3: Without these non-recurring items, free cash flow in the quarter would have been almost neutral. Finally, our net leverage ratio at quarter end was 1.7 times adjusted EBITDA.

Speaker #3: During Q1 2026, we tie in 23 wells. 12 embajada de Palo Oeste, 4 embajada de Palo Oeste, and 7 net wells in La Marga Chica.

Speaker #3: This represents very good progress compared to our guidance of 80 to 90 wells for the full year. Solid work productivity of the tie-in wells drove a material production increase from 127.4 thousand BOEs per day in January to 143.2 thousand BOEs per day in March.

Miguel Galuccio: Solid well productivity of the tying wells drove a material production increase from 127.4 thousand BOEs per day in January to 143.2 thousand BOEs per day in March. Total production during Q1 averaged 134.7 thousand BOEs per day. This represents an interannual increase of 67%, reflecting organic growth and our larger scale after the acquisition of La Amarga Chica. Oil production was 116.7 thousand barrels per day, 68% higher year over year. Gas production increased 62% on an interannual basis. In Q1 2026, total revenues were $694 million, 58% above the previous year, driven by a solid increase in oil production, which more than offset lower oil prices.

Speaker #3: Total production during Q1 averaged 134.7 thousand BOEs per day. This represents an inter-annual increase of 67%, reflecting organic growth and our largest scale after the acquisition of La Marga Chica.

Speaker #3: All production was 116.7 thousand barrels per day, 68% higher year over year. Gas production increased 62% on an inter-annual basis. In Q1 2026, total revenues were 394 million dollars.

Speaker #3: 58% above the previous year, driven by a solid increase in all production which morphed and offset lower oil prices. Oil exports more than doubled year over year, reaching 7.2 million barrels in the quarter, representing 67% of our total sales volume.

Miguel Galuccio: Oil export more than doubled year over year, reaching 7.2 million barrels in the quarter, representing 67% of our total sales volume. Realized oil price in Q1 was $60.1 per barrel on average, down 12% on interannual basis and up 2% on a sequential basis, in both cases driven by Brent. We sold 100% of oil volumes at export parity prices, both domestically and internationally. Higher oil prices owing to war in Middle East has a minor impact in Q1 revenues, as we have mostly locked in March prices when the conflict started in 28 February. We expect higher oil prices to significantly boost Adjusted EBITDA and Free Cash Flow during Q2 2026 and onwards.

Speaker #3: Reliable price in Q1 was 60.1 dollars per barrel on average, down 12% on inter-annual basis and up 2% on a sequential basis, in both cases driven by Brent.

Speaker #3: We sold 100% of oil volumes at equitative prices, both domestically and internationally. Higher oil prices owing to work in the Middle East have a minor impact in Q1 revenues.

Speaker #3: As we have mostly locked-in March prices, when the conflict started in February 2028, we expect higher oil prices to significantly boost adjusted EBITDA and free cash flow during Q2 2026 and onwards.

Speaker #3: In Q4, lifting costs was 4.3 dollars per BOE, 8% below the same quarter of last year, reflecting our low-cost asset base and fixed cost dilution as we continue to gain scale.

Miguel Galuccio: In Q4, lifting cost was $4.3 per BOE, 8% below the same quarter of last year, reflecting our low-cost asset base and fixed cost dilution as we continue to gain scale. Selling expenses were $3.8 per BOE, down 41% on interannual basis, mainly driven by the elimination of oil tracking as of the end of Q1 2025. Adjusted EBITDA during the quarter was $451 million, 64% higher interannually, mainly driven by the consolidation of 50% working interest in La Amarga Chica and organic production growth in our core development hub, which more than offset lower oil prices. On a sequential basis, Adjusted EBITDA increased 2%, driven by higher realized oil prices.

Speaker #3: Selling expenses were 3.8 dollars per BOE, down 41% on inter-annual basis, mainly driven by the elimination of oil tracking as of the end of Q1 2025.

Speaker #3: Adjusted EBITDA during the quarter was 451 million dollars. 64% higher inter-annually, mainly driven by the consolidation of 50% working interest in La Marga Chica and organic production growth in our core development hub, which more than offset lower oil prices.

Speaker #3: On a sequential basis, adjusted EBITDA increased 2%, driven by higher realized oil prices. Adjusted EBITDA margin was 65%, up 3 percentage points compared to the same quarter of last year.

Miguel Galuccio: Adjusted EBITDA margin was 65%, up 3 percentage points compared to the same quarter of last year, driven by lower export duties, selling expenses, and lifting costs, which offset lower oil prices. In Q1 2026, cash flow from operating activities was $86 million, mostly impacted by two one-off negative items. First, a working capital impact of $206 million as a consequence of ramping up our train operation, which moved a large part of our export from FOB to delivered basis and at a higher Brent price. Second, an outflow of $46 million corresponding to a tax payment in Mexico, which has been booked in previous quarters.

Speaker #3: Driven by lower export duties, selling expenses, and lifting costs, which offset lower oil prices. In Q1 2026, cash flow from operating activities was 86 million dollars.

Speaker #3: Mostly impacted by Q1 of negative items. First, a working capital impact of 206 million dollars, as a consequence of ramping up our trading operation which moved a large part of our export from FOB to deliver basis.

Speaker #3: And at a higher Brent price. Second, an outflow of 46 million dollars corresponding to a tax payment in Mexico which has been booked in previous quarters.

Speaker #3: Cash flow used in investing activities was 427 million dollars. Reflecting accrued CAPEX of 391 million dollars, a decrease in CAPEX-related working capital of 53 million dollars, and the 80 million dollars deposit-related to the Kinora acquisition.

Miguel Galuccio: Cash flow use in investing activities was $427 million, reflecting accrued CapEx of $391 million, a decrease in CapEx-related working capital of $53 million, and the $80 million deposit related to the Equinor acquisition. As a result, free cash flow was -$341 million during the quarter. Net of the working capital, one-off impacts, and the Equinor deposit, recurring free cash flow was -$10 million during the quarter. These impacts were expected and do not change our positive free cash flow forecast for the year, excluding payment to Equinor. As we will show in the following slide, free cash flow is forecast to be materially higher than our original expectations.

Speaker #3: As a result, free cash flow was minus 341 million dollars during the quarter. Net of the working capital, one-off impacts, and the Kinora deposit recurring free cash flow was minus 10 million dollars during the quarter.

Speaker #3: These impacts were expected and do not change our positive free cash flow forecast for the year, excluding payment to Kinora. Additionally, as we will show in the following slide, free cash flow is forecast to be materially higher than our original expectations.

Speaker #3: Cash flow from financing activities was 118 million dollars, driven by proceeds from borrowings for 590 million dollars, partially offset by the repayment of borrowings for 130 million and the interest payments of 27 million dollars.

Miguel Galuccio: Cash flow from financing activities were $118 million, driven by proceeds from borrowings for $590 million, partially offset by the repayment of borrowings for $130 million, and the interest payments of $27 million. Our cash position remains very strong, standing at $315 million at the end of the quarter. Our Net Leverage Ratio stood at 1.7x Adjusted EBITDA. We are updating our annual guidance to reflect the impact of robust production performance as well as a more contracted view of oil prices.

Speaker #3: Finally, our cash position remains very strong. Standing at 315 million dollars at the end of the quarter. Our net leverage ratio stood at 1.7 times adjusted EBITDA.

Speaker #3: Today, we are updating our annual guidance to reflect the impact of robust production performance as well as a more contracted view of oil prices.

Miguel Galuccio: Based on the solid progress of our new well campaign, with 23 tie-in to date and robust productivity, we are increasing our full-year production guidance from 140,000 to 143,000 BOEs per day, more than 1 million barrels of oil equivalent for the year. Importantly, our CapEx guidance remain unchanged. We forecast to spend between $1.5 and $1.6 billion of CapEx in 2026. Considering the current oil price volatility, we are showing different scenarios for Q2 through Q4, $75, $85, and $95 Brent. Based on this new production and oil price assumptions, we are forecasting a material increase in our financial metrics. In the $85 per barrel scenario, our Adjusted EBITDA guidance increased to $2.6 billion, an improvement of $700 million from our previous guidance.

Speaker #3: Based on the solid progress of our new oil campaign, with 23 tie-in to date, and robust productivity, we are increasing our full-year production guidance from 140,000 to 143,000 BOEs per day.

Speaker #3: More than a million barrels of oil equivalent for the year. Importantly, our CAPEX guidance remains unchanged. We forecast to spend between 1.5 and 1.6 billion dollars of CAPEX in 2026.

Speaker #3: Considering the current oil price volatility, we are showing different scenarios for Q2 through Q4: $75, $85, and $95 Brent. Based on these new production and oil price assumptions, we are forecasting a material increase in our financial metrics.

Speaker #3: In the $85 per barrel scenario, our adjusted EBITDA guidance increased to $2.6 billion, an improvement of $700 million from our previous guidance.

Speaker #3: Assuming 95 dollars Brent for Q2 through Q4, adjusted EBITDA will be 2.9 billion dollars and at 75 dollars Brent it will be 2.3 billion dollars.

Miguel Galuccio: Assuming $95 Brent for Q2 through Q4, Adjusted EBITDA will be $2.9 billion, and at $75 Brent, it will be $2.3 billion. Our 2026 Free Cash Flow guidance increased to $700 million, assuming our best case of $85 Brent in Q2 through Q4. This is half a billion dollars more than the original guidance. Assuming $75 for the same period, Free Cash Flow for the year will be $400 million, whereas at $95 it will be $1 billion of Free Cash Flow for the year. This updated guidance does not reflect the closing of Equinor Argentina acquisition. Last week, we completed all the condition precedent to close the transaction.

Speaker #3: Our 2026 free cash flow guidance increased to 700 million dollars assuming our best case of 85 dollars Brent in Q2 through Q4. This is half a billion dollars more than in the original guidance.

Speaker #3: Assuming 75 dollars for the same period, free cash flow for the year will be 400 million dollars whereas at 95 dollars it will be 1 billion dollars of free cash flow for the year.

Speaker #3: This updated guidance does not reflect the closing of a Kinora Argentina acquisition. Last week, we completed all the condition precedent to close the transaction.

Speaker #3: We expect closing to occur in early May and guidance will be updated probably after. On a preliminary basis, after consolidating the acquired asset, we forecast 2026 adjusted EBITDA guidance to increase to 3 billion dollars.

Miguel Galuccio: We expect closing to occur in early May and guidance will be updated promptly after. On a preliminary basis, after consolidating the acquired asset, we forecast 2026 Adjusted EBITDA guidance to increase to $3 billion, assuming $85 Brent for Q2 to Q4. To conclude this call, and before we move to Q&A, I will make some closing remarks. Solid execution of our annual work program delivered material production growth during the quarter. Based on our production performance and a more contracted view on oil prices, we have updated our 2026 guidance, which now reflects more production as well as a material improvement to Adjusted EBITDA and Free Cash Flow projections. Our new scale following the execution of two important M&A transactions that add up to our 70,000 BOEs per day, place us in an excellent position to benefit from this positive oil pricing cycle.

Speaker #3: Assuming 85 dollars Brent, for Q2 to Q4. To conclude this call, and before we move to Q&A, I will make some closing remarks. Solid execution of our annual work program delivered material production growth during the quarter.

Speaker #3: Based on our production performance, and a more contracted view on oil prices, we have updated our 2026 guidance. Which now reflects more production, as well as a material improvement to adjusted EBITDA and free cash flow projections.

Speaker #3: Our new scale following the execution of two important M&A transactions that add up to our 70,000 BOEs per day, places us in an excellent position to benefit from this positive oil pricing cycle.

Speaker #3: We expect a significant boost to adjusted EBITDA and free cash flow as of Q2 2026. This additional cash generation will allow us to strengthen our balance sheet by significantly reducing our leverage ratios during 2026.

Miguel Galuccio: We expect a significant boost to Adjusted EBITDA and Free Cash Flow as of Q2 2026. This additional cash generation will allow us to strengthen our balance sheet by significantly reducing our leverage ratios during 2026, emerging from this price cycle as a strong and more flexible company. Before we move to Q&A, I would like to thank all our employees for their hard work during the quarter. Operator, we can now move to Q&A.

Speaker #3: Emerging from this price cycle as a strong and more flexible company. Before we move to Q&A, I would like to thank all our employees for their hard work during the quarter.

Speaker #3: Operator, we can now move to Q&A.

Speaker #2: Thank you. And as a reminder, to ask a question, you will need to press star 11 on your telephone. And wait for a name to be announced to withdraw your question.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for a name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. One moment for our first question. Our first question will come from the line of Leonardo Marcondes from Bank of America. Your line is open.

Speaker #2: Please press star 11 again. Please stand by while we compile the Q&A roster. One moment for a first question. Our first question will come from Lionel Leonardo Marcondes from Bank of America.

Speaker #2: Your line is open.

Speaker #3: Hi everyone. Thank you for picking my questions. So my question here is regarding the revision of the guidance for production. Could you walk us through the main drivers behind the increase in this year's production guidance?

Leonardo Marcondes: Hi, everyone. Thank you for taking my questions. My question here is regarding the revision of the guidance for production. Could you walk us through the main drivers behind the increase in this year's production guidance? Given that CapEx remains unchanged, what is effectively enabling this uplift? Should we attribute it mainly due to better than expected well productivity? Thank you very much.

Speaker #3: Given that CAPEX remains unchanged, what is effectively enabling this uplift? Should we attribute it mainly due to better-than-expected well-productivity? Thank you very much.

Miguel Galuccio: Hi, Leonardo. Thanks for the question. I think there are two things. One, and the more important is that we feel super confident due to the results of the 23 wells that we connect in Q1. All of them has very robust productivity. We decide basically that we will up the day 66, as you saw, from 140 to 143 barrels of oil equivalent per day. That basically add 1 million barrels during 2026. If you go and try to understand a bit the quarter breakdown, I think you have to expect that Q2 will be around the production level that we are recording now in March.

Speaker #4: Hi Leonardo. Thanks for the question. Yeah. Look, I think there are two things. One, and the more important is that we feel super confident due to the results of the 23 wells that we connect in Q1.

Speaker #4: All of them have very robust productivity. So we decided, basically, that we will update the 2026, as you saw, from 140 to 143 barrels of oil equivalent per day.

Speaker #4: That basically adds 1 million barrels during 2026. If you go and try to understand a bit the quarter breakdown, I think you have to expect that Q2 will be around the production level that we are recording now in March.

Speaker #4: And then progressively, you see increases in Q3 and in Q4. That will lead us to a total of 143,000 barrels per day average for the year.

Miguel Galuccio: Progressively, you see increases in Q3 and in Q4 that will lead us to a total of 143,000 barrels per day average for the year. As I mentioned in the presentation, this does not include the consolidation of Equinor assets. Thanks for the question.

Speaker #4: And as I mentioned in the presentation, this not include the consolidation of a Kinora assets. Thanks for the question.

Speaker #3: Thank you.

Leonardo Marcondes: Thank you.

Speaker #2: One moment for our next question. Our next question will come from Lionel Guillerme Martins from Goldman Sachs. Your line is open.

Operator: One moment for our next question. Our next question will come from the line of Guilherme Martins from Goldman Sachs. Your line is open.

Speaker #5: Thank you. Thank you for taking my question. I have a quick one on capital allocation. I understood you guys have maintained your CAPEX guidance for the year despite this number of higher oil prices.

Guilherme Martins: Thank you. Thank you for taking my question. I have a quick one on capital allocation. I understood you guys have maintained your CapEx guidance for the year despite the scenario of higher oil prices since your last investor day last year, right? Having said this, what should we think in terms of capital allocation this year? Miguel, you mentioned the company could use this additional cash flow from higher oil prices to pay down debt, right? What is the target Net Debt EBITDA we should think of? Thank you.

Speaker #5: Since your last Investor Day last year, right? Having said this, what should we think in terms of capital allocation this year? Miguel, you mentioned the company could use this additional cash flow from higher oil prices to pay down debt, right?

Speaker #5: What is the target net EBITDA we should think of? Thank you.

Speaker #4: Thank you, Jeremy, for the question. And the answer is in line with what you mentioned. We should go back and we should go back to the capital allocation framework that we've been basically commenting for the last few years.

Miguel Galuccio: Thank you, Guilherme, for the question. Yes, the answer is in line what you mentioned. You should go back and we should go back to the capital allocation framework that we've been basically commenting for the last few years. We use our balance sheet to close 70,000 barrels of oil per day in acquisitions, when you take in consideration the acquisition of Petronas and Equinor. Now that we enter in a higher oil price scenario, and that we almost double the production in the last year, we believe that we should delever us using that momentum that we are living and regain financial flexibility to the one that we have prior to the acquisition.

Speaker #4: We use our balance sheet to close 70,000 barrels of oil per day in acquisitions when you take in consideration the acquisition of Petronas and a Kinora.

Speaker #4: Now that we enter in a higher oil prices scenario, and that we almost double the production in the last year, we believe that we should deliver using that momentum that we are living and regain financial flexibility the one that we have prior to the acquisition.

Speaker #4: That means for us, going back to around the 1 net leverage ratio I would say by year end. Additionally, we said on Tuesday we announced that the shareholders approved the extension of the share buyback plan for 150 million dollars for 2026.

Miguel Galuccio: That mean for us, going back to around the 1 Net Leverage Ratio we set by year-end. Additionally, we said on Tuesday, we announced that the shareholders approved the extension of the share buyback plan for $150 million for 2026. You also should assume that we will use the cash during this year to complete that acquisition of the buyback. That is pretty much how you should think of the year. You're correct. I mean, our priority now will be delivery.

Speaker #4: So you also should assume that we will use the cash during this year to complete that acquisition of the buyback. So that is pretty much how you should think of the year.

Speaker #4: So, you are correct. I mean, our priority now will be delivering.

Speaker #5: Understood. Thank you.

Guilherme Martins: Understood. Thank you.

Speaker #4: You're welcome.

Miguel Galuccio: You're welcome.

Operator: Our next question will come from the line of Bruno Montanari from Morgan Stanley. Your line is open.

Speaker #2: And our next question will come from Lionel Bruno Montanari from Morgan Stanley. Your line is open.

Operator: Our next question will come from the line of Bruno Montanari from Morgan Stanley. Your line is open.

Speaker #6: Good afternoon, everyone. Thanks for taking my question. I wanted to explore a little bit more the pricing situation, Miguel. You mentioned that you were unable to capture the full benefits in the first quarter because you closed the prices ahead of the March rally.

Bruno Montanari: Good afternoon, everyone. Thanks for taking my question. I wanted to explore a little bit more the pricing situation, Miguel. You mentioned that you were unable to capture the full benefits in Q1 because you closed the prices ahead of the March rally. Can you comment on what you have been able to secure now in the beginning of Q2? If there is any commercial strategy change that could allow you to capture more spot prices without eventually fixing the prices 1 month ahead? Thank you very much.

Speaker #6: So can you comment on what you have been able to secure now in the beginning of Q2? And if there is any commercial strategy change that could allow you to capture more spot prices without eventually fixing the prices one month ahead?

Speaker #6: Thank you very much.

Speaker #4: Yeah. Thanks, Bruno, for the question. A lot of noise in the line. But I think I managed to catch the question. So first, I would like to say that we are not changing our commercial strategy.

Miguel Galuccio: Yeah. Thanks, Bruno, for the question. A lot of noise in the line. I think I managed to catch the question. First, I just said that we are not changing our commercial strategy. You are going to see that we capture 100% of the higher prices starting in Q2. There is always part of those sales, as you know, of the next month, which have locked in in advance. We've been doing that for many years. The rationale is always been working capital management. As we said in the presentation, we sold essentially all the March volume before the conflict in Middle East started, and the price of such a sale was locked in or previous to the event, you know.

Speaker #4: You are going to see that we capture 100% of the higher oil prices starting in Q2. There is always part of the oil sales, as you know, of the next month, which have locked in in advance.

Speaker #4: We've been doing that for many years. The rationale is always been working capital management. I would say in the presentation, we saw essentially all the March volume before the conflict in the Middle East started.

Speaker #4: And the price of such a sale was locked in—well, previous to the event, no? As of today, less than a third of Q2 production is priced.

Miguel Galuccio: As of today, less than a third of Q2 production is priced at an average price of around $90 Brent, while the rest of the production will continue to price at the current and future price levels. Summarizing, I mean, for that, we are exposed to full Brent volatility for the rest of the volume that we have not yet closed. Basically no change in the strategy and also no change in the practice of locking in 1 month ahead that we are selling.

Speaker #4: At an average price of around $90 brent. While the rest of the production will continue to price, at the current and future price levels.

Speaker #4: So summarizing, I mean, for that, we are exposed to full brent volatility for the rest of the volume that we have not yet closed.

Speaker #4: So basically, not changing the strategy. And also not changing the practice of locking in one month ahead that we are selling.

Bruno Montanari: Very clear. Thank you very much.

Speaker #5: Very clear. Thank you very much.

Speaker #4: You're very welcome.

Miguel Galuccio: You're very welcome.

Speaker #2: Thank you. And our next question will come from Lionel Daniel Guarriola from BTG Pactual. Your line is open.

Operator: Thank you. Our next question will come from the line of Daniel Guardiola from BTG Pactual. Your line is open.

Speaker #7: Hi. Good morning, Miguel and team. And thanks for the presentation. I have a question on cost inflation. Especially considering the current environment of higher prices, I wanted to ask if you're seeing any early signs of service cost inflation in REITs, brokerage, logistics, SAND, etc.

Daniel Guardiola: Hi. Good morning, Miguel and team, and thanks for the presentation. I have a question on cost inflation, especially considering the current environment of higher prices. I wanted to ask if you're seeing any early signs of service cost inflation in rigs, crackers, logistics, sand, et cetera. How should we think about the balance going forward between pricing tailwinds and potential cost pressure? To what extent do you believe your efficiency gains can somehow offset this potential inflation? That would be my question.

Speaker #7: And how should we think about the balance going forward between pricing tailwinds and potential cost pressure? And to what extent do you believe your efficiency gains can somehow offset this potential inflation?

Speaker #7: So that would be my question.

Miguel Galuccio: Thanks, Daniel, for the question. A very good question. First of all, probably the best thing for me to say and to clarify that we have not have any tariff change. Okay. We will not allow any tariff change. Now, the existing contract, as are some of them, I would say many of them, are adjust using gasoline prices. We are seeing some tariff adjustment on those cases that we could consider inflation. We are also seeing some impact on the peso component due to the flood effects. Now, saying all that, and as you mentioned, we have a very solid cost reduction plan in place. The projects that we are executing will allow us to offset most of those effects.

Speaker #4: Thanks, Daniel, for the question. A very good question. So first of all, probably the best things for me to say and to clarify that we have not had any tariff change.

Speaker #4: Okay? And we will not allow any tariff change. Now, the existing contract has some of them, I would say many of them, are adjusted using gasoline prices.

Speaker #4: So we are seeing some tariff adjustment on those cases. That we could consider inflation. We are also seeing some impact on the peso component due to the flood effects.

Speaker #4: Now, saying all that, and as you mentioned, we have a very solid cost reduction plan in place. So the project that we are executing, we allow us to offset most of those effects.

Speaker #4: So we are on track. And we are basically confirming our guidance of 11.7 million dollars for drilling and completion cost per well. And also the 4.3 dollars that we mentioned in terms of lifting costs.

Miguel Galuccio: We are on track, and we are basically confirming our guidance of $11.7 million for drilling and completion cost per well, and also the $4.3 that we mentioned in terms of lifting costs. We are super confident. Yes, we are seeing some pressure or adjustment on the contract due to the price of gasoline, but the plan that we have in place will allow us to offset that small, that small impact.

Speaker #4: So we are super confident. Yes, we are seeing some pressure or adjustment on the contract due to the price of gasoline. But the plan that we have in place will allow us to offset that small impact.

Speaker #2: Thank you, Miguel.

Daniel Guardiola: Thank you, Miguel.

Speaker #4: You're very welcome.

Miguel Galuccio: Very wel-

Speaker #2: Thank you. And our next question will come from Lionel Alejandro Demichelis from Jefferies. Your line is open.

Operator: Thank you. Our next question will come from the line of Alejandro Demichelis from Jefferies. Your line is open.

Speaker #8: Yes. Good morning. Thank you very much for taking my question. Miguel, you just talked about your hedging strategy and how you're dealing with the commercial part.

Alejandro Demichelis: Yes. Good morning. Thank you very much for taking my question. Miguel, you just talked about your hedging strategy and how you're dealing with the commercial part. Maybe you can talk about how the new trading vehicle should be operating, how much risk it should be taking, and how can that kind of, you know, continue to improve your commercial cost.

Speaker #8: Maybe you can talk about how the new trading vehicle should be operating? How much risk it should be taking? And how can that kind of continue to improve your commercial cost?

Speaker #4: Thank you, Ale, for the question. Yes. So first, I mean, the reason that why we create a trading company the main reason, and we explained it before, is to access to new market.

Miguel Galuccio: Thank you, Ale, for the question. Yes. First, I mean, the reason that why we create a trading company, the main reason, and we explained it before, is to access to new market. That basically we generate more demand from the Medanito oil, and also, we create an additional margins since we are selling our own oil on delivering basis. I will said, I mean, when we look at what we have done, we are achieving both. We are reaching new markets, and as an example, Malaysia, Australia, Thailand, Singapore, that we didn't reach before, we are reaching it now. We are also capturing additional margins on the 25 million barrels that BEESA expect to trade during 2026. We are not a trading company. BEESA goal is not to take any trading risk.

Speaker #4: That basically we generate more demand from the Melanito oil. And also we create an additional margins since we are selling our own oil on delivering basis.

Speaker #4: I will say, I mean, when we look at what we have done, we are achieving both. We are reaching new markets. And as an example, Malaysia, Australia, Thailand, Thailand, Singapore, that we didn't reach before.

Speaker #4: We are reaching now. And we are also capturing additional margins on the 25 million barrels that base expect to trade during 2026. So we are not a trading company.

Speaker #4: So base a goal is not to take any trading risk. That's the only take position to cover the volume that we sold. And usually, also only for the following month until the oil is delivered.

Miguel Galuccio: They only take position to cover the volume that we sold, usually also, only for the following month until the oil is delivered. I mean, I think it's super important to clarify because we did BEESA for that reason, we should not look at BEESA as a trading company. Of course, I mean, the two objectives that we put as in line of the creation of BEESA, we are achieving it.

Speaker #4: So I mean, I think it's super important to clarify because we did base a for that reason. And we should not look at base a as a trading company.

Speaker #4: And of course, I mean, the true objective that we put as in line of the creation of base a, we are achieving it.

Speaker #8: That's very clear. Thank you.

Alejandro Demichelis: That's very clear. Thank you.

Speaker #4: You're welcome.

Miguel Galuccio: You're welcome.

Speaker #2: Thank you. And our next question will come from Lionel Enrique Cuna from JP Morgan. Your line is open.

Operator: Thank you. Our next question will come from the line of Henrique Cunha from JPMorgan. Your line is open.

Henrique Cunha: Hi. Good morning. Thanks for taking our question here. We have a question on working capital. Could you provide more color on the impact if it had on Free Cash Flow in the quarter? Specifically in the report, you mentioned around $200 million related to BEESA, which was not included in our estimates here. Could you elaborate on the contract effects from BEESA and what should we expect going forward?

Speaker #8: Hi. Good morning. Thanks for taking our question here. We have a question on working capital. Could you provide more color on the impact it had on free cash flow in the quarter?

Speaker #8: Specifically, in the report, you mentioned around 200 million, related to the ESA, which was not included in our estimates here. So could you elaborate on the contract effects from the ESA?

Speaker #8: And what should we expect going forward?

Speaker #4: Yes, Enrique. Of course. I mean, happy to elaborate on that. So basically, the ramp-up of base operation generate two one-offs. As we explained, one is related to the fact that base a sold most of its production on a deliver basis.

Miguel Galuccio: Yes, Henrique, of course. I mean, happy to elaborate on that. Basically, the ramp-up of BEESA operations generate two one-offs, as we explained. One is related to the fact that BEESA sold most of its production on a delivery basis instead of FOB. That was what we were doing before, that is what we were doing with all the trading company that we were using before the creation of BEESA. This extended the revenue collection cycle by the transit of the ship. Just let me give you an example. An oil vessel that take around 20 to go from Puerto Rosales to West Coast in US. Now we are seeing more demand from the Asian buyers, but also will take that transit time, much more time, I would say probably 40 days of transit time.

Speaker #4: In terms of FOB, that was what we were doing before. Which is that is what we were doing with all the trading company that we were using before the creation of base a.

Speaker #4: This extended the revenue collection cycle by the transit of the ship. So just let me give you an example. An oil base that an oil vessel that take around 25 to go from Puerto Rosales to West Coast in US, also now we are seeing more demand from the Asian buyers, but also will take that transit time much more time, I would say, probably 40 days.

Speaker #4: Of transit time. And that is basically the change that we have what we did before, what we have today. This is the first one-off.

Miguel Galuccio: That is basically the change that we have, what we did before, what we have today. This is the first one-off. The second effect is related to BEESA short-term we consist on buying physical oil from Vista Argentina and selling a forward contract at the same price to lock in that revenue. For example, in the month of March, with significant price volatility or whatever that reflect the realization of price of USD 60, but the invoice to be collected by BEESA reflect the market price that was between USD 90 and USD 100, leading to an increase in working capital. That are the two effects that we have. One is related to the realization of the price and the shorter hedge that BEESA take every time they sell.

Speaker #4: The second effect is related to base, short term. We consist on buying physical oil from base Argentina and selling a forward contract at the same price to lock in that revenue.

Speaker #4: So for example, in the month of March, we significant price volatility. Our EBITDA reflect the realization of price of $60. But the invoice to be collected by base a reflect the market price.

Speaker #4: That was between 90 and $100. Leading to an increase in working capital. So that are the two effects that we have. One is related to the realization of the price and the short hedge that base a take every time they sell.

Speaker #4: And the other one is the change of us that today we are selling on delivery basis in terms of FOB that we were doing before.

Miguel Galuccio: The other one is the change of us, that today we are selling on delivery basis instead of FOB that we were doing before. Hope that answer your question, Henrique.

Speaker #4: FOB that answer your question.

Henrique Cunha: Okay. Thank you.

Speaker #2: Thank you. Our next question will come from Lionel Tesla Gonzalez from UBS. Your line is open.

Operator: Thank you. Our next question comes from the line of Tasso Vasconcellos from UBS. Your line is open.

Tasso Vasconcellos: Hi, Miguel. Hi, Ale. Miguel, you already mentioned a little bit about your pricing, the discount or premium to Brent prices, Medanito and so on. Can you also comment on that agreement that you had with the local refineries in Argentina in terms of setting some kind of limit on pricing when oil prices are too high, but also some kind of protection when it moves to lower in determined periods? That's more for us to understand how we should think about this agreement looking forward. Thank you.

Speaker #9: Hi, Miguel. Hi, Ale. Miguel, you already mentioned a little bit about your pricing and the discount or premium to brand prices Melanito and so on.

Speaker #9: But can you also comment on that agreement that you had with the local refineries in Argentina in terms of setting some kind of limit on pricing when oil prices are too high, but also some kind of protection when it moves to lower in determined periods?

Speaker #9: That's good for us to understand how should think about the disagreement looking forward. Thank you.

Miguel Galuccio: Hi, Tasso. Thank you very much for the question. So first, probably prices in the domestic market continue to fully reflect Export Parity. I think that is super important to understand. There was no agreement to fix prices. What we did was to discuss an agreement to mitigate the financial impact of raising crude oil prices resulting from the conflict that we have in Middle East. That agreement was that the buyer will recognize full Export Parity, but paying up to $95 to 100 Brent for April and May. Any positive difference between the price that they pay and the international market price will be deferred and paid no later than July 31.

Speaker #4: Hi, Tesla. Thank you very much for the question. So first, probably prices in the domestic market continue to fully reflect a poor parity. And I think that is super important to understand.

Speaker #4: There was no agreement to fix prices. Now, what we did was to discuss an agreement to mitigate the financial impact of raising crude oil prices resulting from the conflict that we have in the Middle East.

Speaker #4: So that agreement was that the buyer will recognize full export parity but paying up to 95 to $100 brand for April and May. So any positive difference between the price that they paid and the international micro price will be deferred and pay no later than July 31st.

Miguel Galuccio: This agreement does not have any material impact on our cash flow, as you know, as it's only applied to a third of our local sales, equivalent to 15,000 barrels of oil per day or around 10% of our total sale. That is what we did. I think was very smart. It took the consensus of very few people. Again, we are continue receiving and reflecting full equity in the local market.

Speaker #4: This agreement does not have any material impact on our cash flow, as you know. At least only applied to a third of our local sale.

Speaker #4: Equivalent to 15,000 barrels of oil per day or around 10% of our total sale. The rest of the volume continued to be price and pay at export parity.

Speaker #4: So that is what we did. I think was very smart. It took the consensus of very few people. And again, we have we are continue receiving and reflecting full export parity in the local market.

Tasso Vasconcellos: That's very clear. Thank you, Miguel.

Speaker #9: That's very clear. Thank you, Miguel.

Speaker #2: Thank you. And our next question will come from Lionel Andres Cardona from City. Your line is open.

Operator: Thank you. Our next question will come from the line of Andres Cardona from Citi. Your line is open.

Speaker #8: Hi, good morning, Miguel. I'm being the price of Buenos Aires oil is considering to do a new round of some 15 blocks per what I see on the media.

Andres Cardona: Good morning, Miguel and team. The province of Buenos Aires, the governor, sorry, is considering to do a new round of some 15 blocks, from what I see on the media. Could you share your thoughts about this opportunity, timing, if the assets are located in a relatively core acreage, or it's more type of frontier? Any color that you could share is appreciated.

Andrés Cardona: Good morning, Miguel and team. The province of Buenos Aires, the governor, sorry, is considering to do a new round of some 15 blocks, from what I see on the media. Could you share your thoughts about this opportunity, timing, if the assets are located in a relatively core acreage, or it's more type of frontier? Any color that you could share is appreciated.

Speaker #8: Could you share your thoughts about this opportunity timing? Are the assets located in relatively core acreage, or is it more a type of frontier?

Speaker #8: Any color that you could share is appreciated.

Speaker #4: Thank you, Andres. Yes, I think look at I mean, very good timing of the province to put this to put this out. We have we always going to look into anything that is on the basin that we can participate.

Miguel Galuccio: Thank you, Andres. Yes, I think, look at, very good timing of the province to put this, to put this out. We always going to look into anything that is on the basin that we can participate. Nevertheless, when you look at what basically they are offering, I will say there's a lot of border of the basin on gas, okay? As you know, our strategy is very concentrating in oil. There could be some oil block that we will look at it, but very early to tell you if we will do anything. We believe very good initiative from the province.

Speaker #4: Nevertheless, I mean, when you look at what we what basically they are offering, I would say there's a lot of border of the basin and gas.

Speaker #4: Okay? As you know, our strategy is very concentrated in oil. There could be an oil block that we will look at it. But I mean, very early to tell you if we will do anything.

Speaker #4: But we believe it is a very good initiative from the province.

Andres Cardona: Miguel, do these blocks have the same royalties scheme or are they introducing any incremental rate?

Andrés Cardona: Miguel, do these blocks have the same royalties scheme or are they introducing any incremental rate?

Speaker #8: Miguel, do these blocks have the same royalties scheme or are they introducing any incremental rate?

Miguel Galuccio: Could you repeat? Sorry.

Speaker #4: Could you repeat? Sorry.

Speaker #8: Yes. If the new blocks may have the same royalties rate that the traditional shale acreage as in Bacamarte?

Andres Cardona: Yes. If the new blocks may have the same royalties rate that the traditional shale acreage as in Vaca Muerta. Regalías.

Andrés Cardona: Yes. If the new blocks may have the same royalties rate that the traditional shale acreage as in Vaca Muerta. Regalías.

Miguel Galuccio: Andres, yes. Yes, Andres. I understand it's the same, okay? To be honest, I cannot give you detail. We will look how the process evolve, but there should not be any change on the scheme.

Speaker #4: Andres, yes, Andres. I understand it's the same. Okay? And to be honest, I cannot give you detail. We will look how the process evolve.

Speaker #4: But there should not be any change on the on the scheme.

Operator: Thank you. One moment for our next question. Our next question will come from the line of Michael Furrow from Pickering Energy Partners. Your line is open.

Speaker #2: Thank you. One moment for our next question. Our next question will come from Lionel Michael Furrow from Pickering Energy Partners. Your line is open.

Speaker #10: Hello, and thanks for taking our question. Look, we were just hoping to get a quick update regarding the Equinor deal. I know it's still a bit early.

Michael Furrow: Hello, and thanks for taking our question. Look, we were just hoping to get a quick update regarding the Equinor deal. I know it's still a bit early for the company to issue pro forma guidance until that deal closes in early May, but what do you see as a good run rate for annual net turning lines on the Vendimia Sur assets, and what could the associated CapEx look like?

Speaker #10: For the company to issue pro forma guidance until that deal closes in early May. But what do you see as a good run rate for annual net turn-in lines on the Venduria Sur assets?

Speaker #10: And what could the associated CapEx look like?

Speaker #4: Yeah, Michael, thank you for the question. So as we mentioned, we now received the pending approval that we have from the Chilean Antitrust Authorities.

Miguel Galuccio: Yeah, Michael, thank you for the question. As we mentioned, we now received the pending approval that we have from the Fiscalía Nacional Económica. All conditions precedent basically has been met, and we are planning to close this deal early May. Regarding the CapEx, it will be around USD 200 million. Also assuming that the deal close early May, the consolidation will be as 1 May. The assets are producing around 20,000 barrels per day at Vista working interest. I think there could be a little upside on this on the coming quarter. With that production assumption, you should assume that we generate around USD 3 billion of EBITDA.

Speaker #4: So all conditions present basically have been met. And we are planning to close this deal early May. Regarding the the CapEx, it will be around $200 million.

Speaker #4: And also, assuming that the deal close early May, the consolidation will be as first of May. The assets are producing around 20,000 barrel oil per day at Vista working interest.

Speaker #4: And I think there could be a little upside on this on the coming quarter. With that production assumption, you should assume that we will generate around $3 billion of EBITDA.

Speaker #10: Great. Thank you.

Michael Furrow: Great. Thank you.

Speaker #4: You're welcome.

Miguel Galuccio: You're welcome.

Speaker #2: And our next question will come from Lionel George Castout from Latin Securities. Your line is open.

Operator: Our next question will come from the line of George Costout from Latin Securities. Your line is open.

Speaker #8: Good afternoon, Miguel. And thank you for taking my question. Clearly, it's a very volatile oil environment. But I was wondering if you could comment on the Medianito discount to Brent?

George Costout: Good afternoon, Miguel, and thank you for taking my question. Clearly it's a very volatile oil environment, I was wondering if you could comment on the Medanito discount to Brent. Are you seeing that move a lot, and how should we think about the differential in Q2 and beyond?

George Gasztowtt: Good afternoon, Miguel, and thank you for taking my question. Clearly it's a very volatile oil environment, I was wondering if you could comment on the Medanito discount to Brent. Are you seeing that move a lot, and how should we think about the differential in Q2 and beyond?

Speaker #8: Are you seeing that move a lot? And how should we think about the differential in Q2 and beyond?

Speaker #4: Yeah, thank you for the question. And we're happy with this one. So yes, we have seen significantly stronger Medianito differentials. This is driven by the supply tightness of Asia.

Miguel Galuccio: Yeah. Thank you for the question, and we're happy with this one. Yes, we have seen significantly stronger Medanito differentials. This is driven by the supply tightness of Asia and this also contributing to the higher realization price that you saw in Q2. We saw a low volatility in the last month from basically $ -3 prior to the Middle East event to a range of $ +6 tonight. That was more recently. We believe that this trend will continue, depending on how the oil market dynamic is unfold. I mean, there's still a lot of uncertainty there. I will say, you should assume that we will continue selling on a premium price at least for the near future.

Speaker #4: And this also contributing to the higher realization price that you saw in Q2. We saw a low volatility in the last month from basically minus 3 prior to the Middle East event to a range of plus 6 tonight.

Speaker #4: That was more recently. We believe that this trend will continue depending on how the oil market dynamic unfolds. I mean, there's still a lot of uncertainty there.

Speaker #4: But I will say, you should assume that we will continue selling at a premium price, at least for the near future.

Speaker #8: Thank you. Very clear.

George Costout: Thank you. Very clear.

George Gasztowtt: Thank you. Very clear.

Speaker #4: Thank you, George.

Miguel Galuccio: Thank you, George.

Operator: Our next question will come from the line of Ignacio Sabelli from Itaú BBA. Your line is open.

Speaker #2: And our next question will come from Lionel Ignacio Sabelli from Ital BBA. Your line is open.

Operator: Our next question will come from the line of Ignacio Sabelli from Itaú BBA. Your line is open.

Ignacio Sabelli: Yes. Hi, everyone. Congrats on the results, and thanks for taking my question. I would like to understand how the new scope of the RIGI benefits you. What are the plans? Are there any blocks developments that could be targeted here? Maybe understand what are the time frames, when are you going to submit any project, and also until when can you submit any project? Thanks.

Ignacio Sabelle: Yes. Hi, everyone. Congrats on the results, and thanks for taking my question. I would like to understand how the new scope of the RIGI benefits you. What are the plans? Are there any blocks developments that could be targeted here? Maybe understand what are the time frames, when are you going to submit any project, and also until when can you submit any project? Thanks.

Speaker #8: Yes. Hi, everyone. Congrats on the results and thanks for taking my question. I would like to understand how the new scope of the Rigi benefits you.

Speaker #8: What are the plans? Are there any blocks developments that could be targeted here? And maybe understand what are the time frames when are you going to submit any project?

Speaker #8: And also, until when can you submit any projects? Thanks.

Speaker #4: Yes. Thank you, Ignacio, for the question. Yes, we are currently preparing the documentation to apply for Rigi for two future development blocks. One is Águila Mora, and the other one is Vandurria Norte.

Miguel Galuccio: Yes. Thank you, Ignacio, for the question. Yes, we are currently prepare the documentation to apply for RIGI for 2 our future development blocks. One is Aguila Mora. The other one is Bandurria Norte. After closing the Equinor deal, we will have also better understanding of Bajada del Toro, which we believe also could apply to the RIGI, but the application of that in particular have to be submitted by its operator, YPF. We are quite confident that also that one will apply. Regarding your second question on timing, we plan to submit the documentation by the end of Q2. The Minister of Energy then have to analyze all the information before the approval. Based on what we've seen is happening with other companies that have asked for the RIGI, that will take probably a few months.

Speaker #4: After closing the Kinor deal, we will have also better understanding of Bajada del Toro with we believe also could apply to the Rigi. But the application of that in particular has to be submitted by his operator, the YPF.

Speaker #4: But we are quite confident that also that one will apply. Regarding your second question on timing, we plan to submit the documentation by the end of Q2.

Speaker #4: The Ministry of Energy then have to analyze all the information before the approval. And based on what we've seen is happening with others, companies that have asked for the Rigi that will take probably a few months.

Miguel Galuccio: I would like to add that the impact of RIGI is very positive. For what we saw on the evaluation that the 2 block that we present, it creates fiscal incentives and also it move us to accelerate the CapEx of investment in those block that otherwise will be at the tail of our plan. Very good initiative for the government on this one. It will help to bring that block from the north a bit closer in our plan.

Speaker #4: I would like to add that the impact of Rigi is very positive. We, from what we saw on the evaluation, that the two blocks that we present—it creates fiscal incentives and also moves us to accelerate the CapEx of investment in those blocks that otherwise would be at the tail of our plan.

Speaker #4: So very good initiative for the government on this one. And it will help to bring that block from the north a bit closer in our plan.

Speaker #8: Awesome. Thanks. Very clear.

Ignacio Sabelli: Awesome. Thanks. Very clear.

Ignacio Sabelle: Awesome. Thanks. Very clear.

Speaker #2: Thank you. And our next question will come from Lionel Oriana Cavall from Balance. Your line is open.

Operator: Thank you. Our next question will come from line of Oriana Covault from Balanz. Your line's open.

Oriana Covault: Hi. Thanks for taking the question. I have a quick one regarding the non-operated assets. Specifically, how do you see the contribution from these areas within La Amarga Chica evolving through the year? Thank you.

Speaker #11: Hi. Thanks for taking my question. I have a quick one regarding the non-operated assets, specifically how do you see the contribution from this areas?

Speaker #11: Before you market speaker, we've all been through the years. Thank you.

Speaker #8: Thank you, Oriana, for the question. Yeah, look, at La Marga Chica is performing quite well. When we're acquire the block, if you remember, we were producing around 38,000 barrel oil per day.

Miguel Galuccio: Thank you, Oriana, for the question. Yeah, look, La Amarga Chica is performing quite well. When we acquire the block, if you remember, we were producing around 38,000 barrel oil per day. This is with our working interest. In Q1, we produced around 48 barrel of oil per day. A 25% increase. For the rest of the year, as we said, we are expecting a flattish forecast or even on a slightly growth. Okay? Yes, happy with the acquisition, happy with the performance, happy with the relationship that we have today with YPF, the operational level. Everything is working pretty well.

Speaker #8: This is Vista working interest. And in Q1, we produced around 48 barrel of oil per day. So a 25% increase. For the rest of the year, I will say we have played we are expecting a flattish forecast or even a slightly growth.

Speaker #8: Okay? But yes, happy with the acquisition, happy with the performance, happy with the relationship that we have today with YPF. The operational level. Everything is working pretty well.

Speaker #11: Thank you.

Oriana Covault: Thank you.

Speaker #4: You're welcome.

Miguel Galuccio: You're welcome.

Speaker #2: Thank you. And our next question will come from Lionel Matthias Cattaruzzi from Adcap. Your line is open.

Operator: Thank you. Our next question will come from line of Matias Cattaruzzi from AdCap. Your line is open.

Matias Cattaruzzi: Hello. Good day, Miguel Galuccio and management team. My question is as follows: How would the 2026 EBITDA and Free Cash Flow guidance look at a Brent of $105 or $115 per barrel in the new guidance framework?

Matías Cattaruzzi: Hello. Good day, Miguel Galuccio and management team. My question is as follows: How would the 2026 EBITDA and Free Cash Flow guidance look at a Brent of $105 or $115 per barrel in the new guidance framework?

Speaker #12: Hello. Good day, Miguel, and management team. My question is as follows. How would the 2026 EBITDA and free cash flow guidance look at Brent of 105 or 115 dollars per barrel in the new guidance framework?

Miguel Galuccio: Thank you, Matias. I like this question. I think as a rule of thumb, the way you call it, if you consider that every $10 increase between Q2 and Q4, you have to think that we will capture around $275 million of EBITDA and $250 million of Free Cash Flow. Back to your numbers, we show early $95 Brent for Q2 to Q4. EBITDA will be estimated around $2.9 in 2026. At $105, that same EBITDA will be $3.2. At $115 Brent, it will be almost $3.5 billion.

Speaker #8: Thank you, Matthias. I like this question. So I think as a rule of thumb, the way you got it, if you consider that every $10 increase between Q2 and Q4, you have to think that we will capture around 275 million dollars of EBITDA.

Speaker #8: And 250 million dollars of free cash flow. So back to your numbers. I mean, we show early $95 Brent. For Q2 to Q4, EBITDA will be estimated around 2.9 in 2026.

Speaker #8: And at 35, that same EBITDA will be 3.2. And at 115 dollars Brent, it will be almost 3.5 billion dollars. In the case of free cash flow, a $95 Brent scenario, the free cash flow will be around 1 billion dollars for the full year.

Miguel Galuccio: In the case of free cash flow, a $95 Brent scenario, the free cash flow will be around $1 billion for the full year, and 105, $1.25 billion, and 115, $1.5 billion of free cash flow during the year. Thank you for the question.

Speaker #8: And 105, 1.25. And 115, 1.5 billion dollars of free cash flow during the year. Same for the question.

Matias Cattaruzzi: Thanks to you.

Matías Cattaruzzi: Thanks to you.

Speaker #2: Thank you. Thank you. I'm not showing any further questions at this time. I want to turn the call back over to Miguel for any closing remarks.

Operator: Thank you. I'm not showing any further questions at this time. I will now turn call back over to Miguel for any closing remarks.

Miguel Galuccio: Guys, thank you very much for the participation, for the good question. Very positive about what is coming up. We are starting the year, from the operational point of view and the production point of view in good grounds, and very confident for Q3 and Q4. It should be an excellent year for us. Thank you very much for the continued support, and have a good day.

Speaker #4: So guys, thank you very much for the participation, for the good question. Very positive about what is coming up. We are starting the year from the operational point of view and the production point of view.

Speaker #4: In good grounds. And very confident for Q3, Q4, and Q4. This should be an excellent year for us. Thank you very much for the continued support and have a good day.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

Q1 2026 Vista Energy SAB de CV Earnings Call

Request DemoDemo

Vista

Earnings