Vista Energy S.A.B. de C.V.

Good day and thank you for standing by. Welcome to the VISTA's fourth quarter 2022 earnings and full year webcast conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alejandro Chernacov. Please go ahead.

Thanks. Good morning, everyone. We are happy to welcome you to VISTA's fourth quarter and full year 2002 results conference call. I am here with Miguel Galuccio, VISTA's Chairman and CEO, Pablo Vera Pinto, VISTA's CFO, and Juan Garoby, VISTA's COO. Before we begin, I would like to draw your attention to our cautionary statement on slide two. Please be advised that our remarks today, including the answers to your questions, may include forward-looking statements. These forward-looking statements are subject to risk 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 . However, during this conference call, we may discuss certain non-IFRS financial measures, such as adjusted WBA and adjusted net income. Conciliation of these measures to the closest IFRS measure can be found in our earnings relief that was issued yesterday. Please check our website for further information. Our company, Vista, 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. The ticker of our common stock are Vista in the Bolsa Mexicana de Valores, BISP in the New York Stock Exchange. And the ticker of our warrants is BTW4088. I will now turn the call over to Miguel. Thanks, Ale. Good morning, everyone. Today, I will share with you the four-quarter and full-year results of 2022, during which we have continued to deliver a strong operational and financial performance. First, I will present the four-quarter results, and I will later move on to full-year results and 2023 guidance. And I will also comment on the transaction we closed and announced yesterday. During Q4 2022, total production averaged 54,700 DOGs per day, a 33% increase year-over-year. Oil production was up 41% year-over-year, driven by the tie-in of one four-wheel path in Bajada del Palo Oeste and another in Aguada Federal. Total revenues were $308 million for the quarter, an interannual increase of 57%, and many others, driven by higher production and strongly realized oil prices. Lifting costs per VOE was $7.2 for the quarter, reflecting our success in continuing cost pressures through a number of efficiency measures, as well as through dilution of the feed costs through incremental production volumes. Capital expenditure was $145 million, including the drilling of eight wells and the completion of seven wells during the quarter. Adjusted EBITDA during Q4 2022 was $202 million, a 73% increase year-over-year, driven by higher production and realization prices and lower lifting costs per VOE. During Q4 2022, we recorded positive pre-cash flow of $57 million, driven by robust adjusted EBITDA generation. Net leverage ratio at quarter end was 0.4 times adjusted EBITDA. Adjusted income was a solid $171 million, including a not recurring positive adjusted of $98 million in contacts, implying a quarterly adjusted EPS of $2 per share. We will now deep dive into our main operational and financial metrics for the quarter. Total production during Q4 2022 was 54.7 thousand BOEs per day. Up 33% interannually and 8% sequentially. Oil production was up 41% year over year, mainly driven by the tie-in of PADs Bajada del Palo Oeste 14 and Aguada Federal 3. Total shale oil production, which also includes Bajada del Palo Oeste, increased to 36.2 thousand barrels of oil per day, representing 79% of oil production. Moving to slide 5, I will share some details on our projects in Vaca Muerta. In Bajada del Palo Este, we continue to record robust well productivity. We have tie-in 60 wells today, from which 40 have exceeded 360 days of production and are producing on average 3% above Bajada del Palo Este type. During Q4, we completed Pat Bajada del Palo Oeste 15, which was tied in late in the year. This pad has five wells, of which three were landed in La Cocina and two in D'Organico. We are seeing very good productivity readings in these wells, which are performing above our tight curve after 40 days on production. Also, we recently started to drill four-well Pat Bajada del Palo Oeste 16, which we plan to tie in during Q2. In Aguada Federal, production increased to 5.8 thousand BOE per day during Q4 2022. The block contributed 14% of our total share production, boosted by path Aguada Federal 2 and Aguada Federal 3. We have recently finished drilling four-well path Aguada Federal 4, landing two wells in La Cocina, one well in Organico, and one well in Middle Carbon Age. which we have not tested in Aguada Federal so far. We plan to complete and tie in this path by the end of Q1.

During Q4 2022, we make good progress in our pilot in Bajada del Palo Este.