VIST — Vista Energy, S.A.B. de C.V.

Summary of VIST Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Production: Total production reached 135,000 BOEs per day, up 59% year-over-year and 7% quarter-over-quarter. Oil production was 118,000 barrels per day, reflecting a 61% increase year-over-year.
• Revenue: Q4 revenues totaled $689 million, a 46% increase year-over-year but a 2% decline from the previous quarter, attributed to lower oil prices.
• Costs: Lifting costs were $4.1 per BOE, down 12% year-over-year and 8% quarter-over-quarter. Selling expenses fell to $4.2 per BOE, a 48% reduction year-over-year.
• Profitability: Adjusted EBITDA was $444 million, a 62% increase year-over-year but down 6% sequentially. Net income was $86 million, with earnings per share of $0.80.
• Cash Flow: Free cash flow was $76 million for the quarter, contributing to a total of $150 million to $200 million expected in 2026.
• Leverage: Net leverage ratio at year-end was 1.5x, stable quarter-over-quarter.

2. Strategic Updates and Business Highlights

• Acquisitions: Completed a significant acquisition of a 50% stake in La Amarga Chica, positioning VIST as the largest independent oil producer in Argentina. An agreement to acquire Equinor's assets in Vaca Muerta was also announced, expected to close around mid-May 2026.
• Operational Performance: Achieved a record low in lifting costs and significant reductions in drilling and completion costs. The company tied in 74 wells in 2025, exceeding prior guidance.
• Environmental Initiatives: Reduced greenhouse gas emissions intensity by 23%, with plans to balance emissions through carbon credits by 2026.

3. Forward Guidance and Outlook

• 2026 Production: Guidance set for total production of 140,000 BOEs per day, with 80 to 90 well tie-ins planned.
• Financial Metrics: Expected adjusted EBITDA of $1.9 billion in 2026, assuming Brent prices average $65 per barrel. Free cash flow is projected to be around $150 million to $200 million.
• Capital Expenditure: Anticipated CapEx of $1.5 billion to $1.6 billion annually from 2026 to 2028, with maintenance CapEx estimated at $700 million to $850 million.

4. Bad News, Challenges, or Points of Concern

• Oil Price Volatility: Realized oil prices averaged $58.9 per barrel, down 12% year-over-year and 9% sequentially, impacting revenue despite increased production.
• Operational Costs: While lifting costs have decreased, there are expectations of potential increases in Q1 due to seasonal maintenance and cost transfers from Q4.
• Regulatory Environment: The new regulatory framework for upstream projects could introduce complexities and uncertainties in capital allocation and operational planning.

5. Notable Q&A Insights

• Capital Allocation: Management emphasized a flexible approach to capital allocation, prioritizing buybacks, dividends, M&A, and debt reduction based on market conditions.
• Service Vendor Expansion: Increased interest from oilfield service companies is anticipated, which could further reduce drilling and completion costs.
• Relationship with YPF: The relationship with YPF is strong, fostering collaboration and synergies that enhance operational efficiency.
• Equinor Acquisition Financing: The initial cash payment for the Equinor acquisition will be funded entirely through debt, with plans to maintain a stable cash balance.

Overall, VIST's Q4 2025 results reflect strong operational performance and strategic growth through acquisitions, despite facing challenges from oil price fluctuations and potential regulatory changes. The company is well-positioned for continued growth in 2026 with clear guidance and a focus on capital efficiency.