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

Thank you for standing by. Welcome to the VISTA's fourth quarter and full year 2025 earnings webcast conference call. At this time, all participants are in 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 11 on your telephone. 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 conference is being recorded. I would like to hand the conference over to your speaker today, Alejandro Shevnakov, Vista 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 2025 results conference call. I am here with Miguel Galucho, Vista's Chairman and CEO, Pablo Verapinto, Vista's CFO, Juan Garobi, Vista's CTO, and Matias Weisel, 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 U.S. 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 with 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 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 BIST in the New York Stock Exchange. I will now turn the call over to Miguel.

Thanks, Ale. Good morning, everyone, and welcome to this earning call. 2025 was a year of many achievements for Vista, marked by the substantial value creation for our shareholders through growth in our core development, significant well-cost savings, and an accretive M&A. The acquisition of 50% stake in La Marga Chica marked a major milestone in our successful growth journey, turning Vista into the largest independent oil producer of Argentina. We also held our third investor day, during which we unveiled an updated strategic plan targeting to produce more than 200,000 DOEs per day by end of the decade. We will go in over our Q4 results and a summary of the highlights of the full year. During the fourth quarter of 2025, we continue to deliver robust production growth on the back of new well tie-ins and strong productivity in Bajada del Palo Oeste, Aguada Federal, and La Marga Chica. Total production was 135,000 BOEs per day, an increase of 59% year-over-year and 7% quarter-over-quarter. Oil production was 118,000 barrels per day, an interannual increase of 61% and 8% sequentially. Total revenues during the quarter were $689 million, 46% above the same quarter of the last year, and 2% below the previous quarter, driven by lower oil prices. Lifting costs was $4.1 per VOE, 20% below year-over-year, and 8% below VISA VQ3. Capital expenditure was $355 million, driven by new well activity during the quarter. Associate VGA was $444 million, an interim increase of 62%. Net income was $86 million, leading to earnings per share of $0.8 during the quarter. Free cash flow was $76 million, driven by a strong cash flow of operations. And finally, our net leverage ratio at ERN was 1.5 times on a performance basis, flat quarter on quarter. Total production during Q4 was 135.4 thousand VOEs per day. As in the previous quarter, We record a solid 7% growth on a sequential basis, driven by robust web productivity and 60 net tie-ins during the quarter, nine in Bajada del Palo Oeste, three in Bajada del Palo Oeste, and four corresponding to our 50% share in La Amargachita. On an interannual basis, production growth was 59%, reflecting our larger scale after the acquisition of La Marga Chica, combined with organic growth. Oil production was 118.3 thousand barrels per day, 8% above Q3, and 61% higher year over year. Gas production increased 45% on an interannual basis. In Q4 2025, total revenues were $689 million. 46% higher than the previous year, driven by a robust increase in oil production, which more than offset lower oil prices. Oil exports doubled year over year, reaching 7.1 million barrels in Q4 2025, representing 64% of our total sales volume. Realized oil price was $58.9 per barrel on address, down 12% on interannual basis and 9% on a sequential basis, in both cases driven by lower oil prices. During Q4 again, we sold 100% of all volumes at export parity prices, both domestically and internationally. In Q4, lifting cost was $4.1 per DOE, 12% below the same quarter of last year, and 8% below the previous quarter, reflecting our low-cost asset base and fixed-cost dilution as we continue to gain scale. Selling expenses were $4.2 per UEE, down 48% on interannual basis, driven by the elimination of oil tracking as of the end of Q1. Ashasti-DVDA during the quarter was $444 million, 62% 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, Ashasti-DVDA declined 6%, as lower oil and natural gas prices offset production growth. Associate EBITDA margin was 64%, up 8 percentage points compared to the same quarter of last year, as the decrease in selling expenses upset lower oil prices. Similarly, net back was $35.6 per VOE, up 2% on an inter-annual basis. During Q4 2025, airflow from operating activities was very robust at $435 million, even after income tax payment of $32 million and an increase in working capital of $16 million. Cash flow used in investing activities was $360 million, reflecting accrued capex of $355 million and a decrease in capex-related working capital of $16 million. As a result, free cash flow was positive at $76 million during the quarter and $47 million during the second semester. Hence, we achieved our positive free cash flow guidance for the second half of 2025. Cash flow from financial activities was $143 million, driven by proceeds from borrowings for $618 million partially upset by the repayment of borrowings for $368 million and interest payment of $75 million. Finally, our position remains very strong, standing at $538 million at ERN. Our net leverage ratio on a performance basis, reflecting the Petronas-Argentina transaction, stood at 1.5 times as a CDBDA, flat vis-à-vis the previous quarter. The fourth quarter of 2025 marks the completion of an outstanding year at VISTA, and these are some of our key achievements, combining the successful de-risk of the Structural 4 Area Embajada del Palo Oeste with the acquisition of a 50% working interest in La Marga Chica. we enlarged our well inventory to more than 1,600 wells. T1 reserves increased by 57% year-over-year to 588 million BOEs, with strong additions both on the organic and inorganic side, leading to a reserve replacement ratio of 605%. Our organic reserves replacement ratio stood at 260%. We tie in 74 wells during the year, up from 50 in 2024, reflecting the capex acceleration in our strong portfolio of a short cycle, high return wells in the oil window of Vaca Muerta. This boosts total production to over 115,000 barrels of oil per day, 66% about 2024. Our solid operational performance was also reflected by the cost reduction, with 3% lifting cost savings and 15% DNC cost savings compared to 2024. Operational excellence remains one of our top priorities. In 2025, our total recordable incident rate remained below one for the sixth consecutive year. By investing in monthly, In the carbonization process in our facilities, we reduce COP 1 and 2 greenhouse gas emissions intensity by 23% to 6.8 kilos of CO2 equivalent per DOE. This plays VISTA's operation within the first decide at the global level. We continue to invest in nature-based solutions in Argentina to develop our own carbon credits. We have made progress in 2025 to ensure that in 2026, we will have enough credit to balance the scope one and two emissions of our operated oil and gas production. Finally, in 2025, we continue delivering a strong financial performance. Assisted EBITDA grew 46% compared to the previous year, reaching $1.6 billion. Earnings per share amounted to $7 and ROC was 29%. Finally, we executed a share buyback program of $50 million, buying 1.2 million shares at an average price of $41.2 per share, a significant discount relative to current prices. Our 2025 performance leaves us well poised to continue our growth trajectory in 2026. Total production at 115,000 VOEs per day was about the 112 to 114 guidance rate. Production during the second semester was also about guidance, 131,000 VOEs per day compared to the guidance of 125 to 128,000. Adjusted VBA was $1.6 billion. and stood at the top end of the range we guided at mid-year. We also met the adjusted EBITDA guidance for the second semester, recording $0.92 billion, or an equivalent of $1.83 billion on an annualized basis. Lifting costs at $4.4 per VOE marked an overdelivery with respect of our $4.5 guidance. We were also very efficient with the use of the capital by delivering 74 wealth tie-ins with $1.3 billion of CAPEC, we outperformed the original guidance of 59 tie-ins with $1.2 billion. Importantly, the delivery of 2025 full-year results, in particular the momentum achieved in the fourth quarter, leave us very well placed to deliver on 2026 guidance. As a reminder, This guidance includes 140,000 BOEs per day of total production, reflecting 80 to 90 vuelta-ins, $1.5 to $1.6 billion of CAPEX, and $1.9 billion of adjusted EBDA, assuming rent at $65 per barrel on average. Early this month, we announced an agreement to acquire Equinor's assets in Vaca Muerta. a highly attractive transaction for our shareholders, as reflected by the implied EV to EBITDA and EV per flow in barrels metrics compared to Vista market value. The acquired asset will enhance our portfolio by adding more than 27,000 net acreage, which currently produce around 22,000 barrels of oil per day and generate positive trickle flow. Importantly, The blocks have production growth potential as they add 244 net wells to our drilling inventory. As shown on the map, the new blocks are next to our existing blocks, which create many opportunities for synergies in the subsurface characterization, service facilities, meeting capacity, crews, scheduling, and oil field services contracting. As disclosed in our filings, the agreement is subject to two conditions present. The first one was already achieved last week. We were informed that Shell had waived its right of fair refusal over Bandurria Sur. Regarding the second one, we have already filed the relevant documents with the Chilean Antitrust Authority on February 11th. Based on the timeline of this process, we expect the transaction to close around mid-May. To conclude this call and before we move to Q&A, I will make some closing remarks. Q4 marked the completion of a transformational year for the company, during which we gained significant scale and delivered on an annual guidance across all key metrics. During 2025, we record robust operation performance, increasing total production, P1 reserve, and expanding well inventory. We achieved material lifting costs and selling cost savings that improved our margin, offsetting lower oil prices. We also captured significant DNC cost reductions through the commercial, supply chains, and technological innovation. This strong operational performance, combined with the acquisition of 50% worth of interest in La Marga Chica, led to superior profitable growth during the year, materially expanding adjusted VDA and earnings per share. More recently, we continue to demonstrate our unique ability to execute a creative M&A, gaining further scale, enhancing portfolio debt, and long-term cash flow generation through the acquisition of participation in Bandurria Sur and Bajo del Toro, two premium assets in Vaca Muerta. Before we move to Q&A, I would like to express my gratitude to our staff for having delivered another remarkable year for our company. I am also thankful to our shareholders for their continued support. 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 and wait for a name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. One moment for our first question.

Our first question will come from Walter from Santander.

Your line is open.

Yes, hello. Can you hear me?

Yes, we hear you, Walter.

Perfect. Okay. Thank you for taking my question, and congratulations for such a moving year for the company. My question is regarding the acquisition of Banduria Sur. What are the next steps in terms of, especially in terms of CapEx free allocation? If there is any, I see that the numbers of words for the years remain the same. But if you think that there will be some CapEx free allocation, what is the situation regarding facilities with the new situation of the company and acquisition of all the blocks in 2025? Thank you.

Thank you, Walter, for your question. So the main milestone, so starting with your first part of the question, the next step, the main milestone, which was Shell's right of fair refusal, was already clear. We are now going through the Chilean antitrust process that was filed on February 11, jointly with Equinor. So the relevant documents are already in the Fiscalía Nacional of Economía. So based on all that precedence, we believe we should be closing during Q2. Related to capital allocation and the Quignor acquisition, going to the Quignor deal, we are currently focused on the process of closing the deal, and it's for us a bit premature to comment anything related to the new plan. But in terms of general principles that we assume in $65 Brent, the CAGPET plan for the existing asset is not affected by the new asset. That means we will continue having the plan as we have, and the decision that we have done will be self-funded by the EBITDA and CAGPET generation of the asset that we have acquired. You asked it also, another question related to the So we don't see any issues with the facilities in the acquisition of Bandurria Sur. We have plenty of facilities there. They have spare capacity. Also, we have spare capacity. Different will be for the development of Bajada del Toro, where it's very close to one of the assets there, Aguila Mora. but that will require new facilities. As far as we know, Duplicar Norte is ongoing. So one option that we have is to tap into that pipeline that is being, I think it's being linked by other companies, Blue Petrol, CVX, and Tech Petrol. So that could be an option, but that will not happen in the, in the next year and even in the next few years.

Okay, perfect. Thank you very much, Miguel.

Thank you for that question. One moment for our next question. Our next question comes from Bruno from Morgan Stanley. Your line is open.

Good morning, Miguel, Ale, everyone. Thanks for taking my question. My question is also about capital allocation, but more on a broad perspective. So the company is generating cash, and we believe that that cash generation should increase substantially in 2026 and beyond. So can you help us how to think about options, such as accelerating drilling activity in case oil prices increase, or pursuing acquisitions around your existing acreage and or distributing cash back to shareholders. So how do you think about using that incremental cash that will be generated in the coming years?

Thank you very much.

Thank you for your question. The actual operation is running between four and five rigs. uh from now to 2028 and we have an inventory life of 15 years so we are we think that we are close to the optimum activity level relative to the size of the asset that we have if you will see the oil price go above assumptions in our plan you could see that we add some wells to the plan but wouldn't expect that we will have anything that is completely material change compared to what we have in the plan today toward 2028. Most of the cash that we will generate will be allocated through our capital allocation framework that we present in Investor Day, that is buyback and dividends, M&As, and debt reductions. how we are going to split between the three. I mean, we would like to maintain that flexibility based on the options that we have at the moment, but this is basically what we plan to do with the cash. Thanks for your question, Bruno.

Thank you. One moment for our next question. Our next question comes from Alejandro Demichelis from Jefferies. Your line is open.

Yes, good morning. Thank you very much for taking my question. Miguel, you mentioned the very sharp decrease in drilling and completion cost that you have achieved, and that has been great. Could you please kind of comment? Where do you see kind of drilling completion costs right now? Where do you think that those could end up, say, over the next few quarters? And also, are you seeing also similar kind of decreases in your non-operated acreage?

Thank you, Ale, for your question. Yes, we are one of the things and one of the initiatives that we are very proud of. is the reduction of DNC costs where we are putting a lot of effort and a lot of innovation. So we made very good progress during the second semester. We fully implemented the use of bulk wet sand, as well as our property FRAC real-time monitoring tool, streaming the completion short. We talk about that tool a bit during our investor day. On the contractual side, we renegotiated our contract with our measure provider, and debunding the drilling services. All that led to an important saving. In all, this initiative led to a DNC cost of 12.1 million per well in the second half of 2025 in Bajada del Palo Oeste. This taking consideration a normalized well of 2,800 meters with 47 track stages. We are currently working on other cost reduction projects. Last week we started operating the sand washing plant that we moved from Bajada del Palo Este, sort from our new mine in Basin. This new mine is 100 kilometers from our operation, so it's probably the closest one to any operation in Baja Muerta today. With that, we plan to save some logistic costs for the entire core development hub. We are also working on the debundling of completion services. We are testing new pump technology that can replace diesel for natural gas. And also we are testing new casing design that reduces steel costs. This project will drive 2026 and 2027 world cost savings. We are on track to deliver 11.7 per well this year and 11.3 in 2027. And my personal opinion that we can go further down on that target if all these come into place. That's clear. Thank you. Yeah, you're welcome.

Thank you. One moment for our next question. Our next question will come from the line of Andres Cardona from Citi. Your line is open.

Good morning, Miguel and Tim. Congratulations on the group. And my question has to do with the recent inclusion of the option business to the RIGI and how it could change the development plan of the cluster of Baja del Toro and Aguila Mora. Thank you.

Thank you, Andres, for the question. And so first, probably to put that question in context, I will talk a bit about the RIGI. So the new REI scheme consists of incorporating basically Aftrin projects. During the lay basis, Aftrin were not part of the scope of the REI. In our view, this is a very positive change in regulation, a clear condition to accelerate investment and growth on the basin. Under the terms outlined by the decree, there is a minimum investment commitment of $600 million of which 40% need to be spent on the first two years. Also, there is a ratio between cash from operation and total capex. The benefits that they really bring include accelerated amortization, a decrease in corporate tax from 35% to 25%, zero export taxes after the third year, and being able to keep partially export proceeds abroad also after the third year. So we are analyzing the scheme in detail. By base on our preliminary analysis, we believe that that could be applicable to some of our developed blocs. As you mentioned, one is Bandurria Norte, the other one could be Avila Mora, and eventually also can be applied to Bajo del Toro. So very good initiative from the government, very welcomed by us and by the industry.

Thank you. One moment for our next question.

Our next question will come from Milene Carvalho from J.P. Morgan. Your line is open.

Good morning, everyone, and thank you for the opportunity. After all those questions on the strategic deals, I would like to go back a little bit on the operational side. So this quarter, we reported record low lifting costs. Can you explain a little bit further what were the efficiency measures that have been supporting results besides all the cost dilutions with the production growth? And again, you're very well positioned for the guidance in 2026, but what can we expect as trend for the coming quarters? Thank you.

Hi, Milene, and thanks for your question, and thanks for being back to operations. During Q4, we captured some savings related to wealth services. As in previous quarter, we continued to capture savings as we increased production, which dilute fixed costs, and we have seen that effect for many years since we ran the operation in Vista. This led to a lifting cost of $4.1 that you pointed out during the quarter. In my view, that number, based on what I said before, is an exceptional number. For 2026, our plan shows a lifting cost that will continue with the trend of basically reducing. We guide 2026 for a lifting cost of 4.4. That is 2% below 2026. In Q1, we see lifting costs that probably we expect the lifting cost will probably go sequentially upward, which is typically what happened at the start of the year. with some costs moving from Q4 last year to Q1 this year. And also, usually, in the first quarter, we have some one-off maintenance projects that are allocated to lifting costs. But what you should expect is the 4.4 that we have guide that is 2% below 2026. Perfect.

Thank you.

Thank you. One moment for our next question. Our next question comes from Bruno Amorim from Goldman Sachs. Your line is open.

Thank you. Good morning, everybody. So my question is a follow-up on the 2026 guidance, which you have reconfirmed. Can you provide us with your expectations for the evolution during the year for production EBITDA and free cash flow, please? Thank you so much.

Good question. I hope you're doing well. So the 2026 plan includes the pickup in DNC activity with 80 to 90 times during the year. We plan 20 to 22 well-in time during the Q1, of which 10 were put on production in January with very good productivity reading so far. This will lead It will lead to production rate of 132,000 barrels of oil per day in February. We are all placed for March and estimated a very good because surprising the 140,000 barrels per day for March. So we believe in all Q1 will be flattish or slightly below Q4. but with a very good momentum in Q2. In Q2, we expect a substantial sequential growth, then relatively flat also against in Q3, and another very nice and good step in Q4. We will reiterate our guidance of 140,000 barrels per day for 2026. And of course, this does not include the acquisition that will come into place later on when it's closed. In terms of EBITDA, we have reiterated our widening of $1.9 billion of adjusted EBITDA for 2026. And as a reminder, this also excludes the effect of a keynote transaction. Q1, you should expect that will be flattish or maybe slightly lower than Q4 on adjusted EBITDA. Then should increase that steadily in the coming quarter. And we expect to reach an annualized run rate of around $2 billion in or $2 billion in Q4, assuming, of course, a brand of 65. In terms of free cash flow, free cash flow turned positive in line with the strategic plan of 2026. This new phase of the company combines, as we mentioned in Investor Day, growth and free cash flow generation. In 2026, total free cash flow will be around $150 to $200 million, a $65 brand. Always, I mean, we should expect that free cash flow could be affected by working capital variation, tax payment, and can negatively impact in some quarter. But also, you should expect a negative free cash flow in Q1, turn it into positive in Q2 and onward. So, that gives you maybe a quarterly picture of what we think will happen in 2026. Thank you.

welcome thank you one moment for our next question next question comes right of daniel guardiola from btg patchwork your line is open hi good morning miguel and team and thank you for presentation my question is on on the acquisition of the assets of ekinor narantina and i wanted to know miguel if you could provide us more color on the tight curves and productivity you're seeing in Bandurria Sur and Bajo el Toro. And also during the presentation, you mentioned that there is material upside potential in Bajo el Toro. So it'd be great to hear if you could share with us what is the potential growth opportunity that you're seeing in both assets.

Okay. Yeah. Thank you, Daniel, for the question. Maybe starting with the first part. Well-type curve, I think, for Bandurria Sur, very similar to the ones that we have present of our asset. It's a neighbor asset. We evaluated that. We don't expect anything different. Bajo del Toro, you should wait for us because it's probably too early to comment on that. Then related to the second part of your question, based on the formation that we have, and the analysis that we have done so far. And this is a very preliminary view. Our stake of these assets is currently 22,000 barajos per day. And we think we can double that by 2030, driven by the growth in Bajada del Toro once we move Bajada del Toro to full development plan. So we will probably see a couple of years with a small growth and frequent flow generation, followed by the growth of Bajada del Toro. As our working capital interest in Maduria Sur, we produce approximately 19,000 barrels of oil per day in Q4, an increase to 20,000 in January. Based on the inventory site, 106 wells are allocated to our working interest. the field can continue producing on the current rate until probably 2030. So also in Bandur-Riyazur, we see some growth potential. In Baja del Toro today, they are producing around 2,000 barrels per day. And that is pretty much the same that we saw in January at our working interest. This block for us present significant upside based on the inventory, and we're still analyzing the scenario to go to full development. But that will happen during the next three years. And based on the question that we have before, also we will have to think about infrastructure, evacuation infrastructure there.

Thank you. One moment for our next question.

Our next question comes from Kevin McCurdy from Pickering Energy Partners. Your line is open.

Hello and good morning. We've noticed a meaningful progress in the country backdrop along with increased attention on Argentina and the basin overall. Is this thus seeing an expansion in oil-filled service vendors or equipment entering the country? And if so, would you expect this to translate into further improvement in drilling and completion costs?

Hi, Kevin. Thank you. Very good question. Yeah, the short answer is yes. We are seeing a lot of interest from service companies to come down to Argentina based on the increase of activities, as you mentioned also, based on the normalization of the macro and the ability to have more cross-border freedom in terms of repatriating dividends and proceeds. And I will say that is interest. Now, one thing that we are seeing is most of the companies that are today in the country are adding capacity. And also that is helping today in, as you saw in the presentation, on the reduction of the DNC cost. Also, we continue evolving in terms of innovation and practices are changing. We are a clear example of that, where you can see, for example, on the completion site, a lot of integration between sand, delivering the sand, the logistic, wet sand project, and now probably demanding the completion services to have better numbers and better rates on services. There are many we have seen or we have inquired of many service companies that are today working in the Permian, looking what they can do in Argentina.

Thank you, Miguel. Thank you, Miguel. I'll look forward to seeing you at our PA conference in a few weeks. Super. Looking forward, Nicolas, Kevin.

Thank you. One moment for our next question. Our next question will come from the line of Nicolas Barros from Bank of America. Your line is open.

Hello, good morning. Just one question here. So we saw that your trading arm started operations this quarter, right? So just interested to see if you could provide more color on Visa, right, and your expectations on how it can help you to unlock more value in the company. Thank you.

Thank you, Nicolas. Yes, that was a great initiative. I visited them a few weeks ago. The creation of BEISA is part of our export-oriented strategy. Oil exports have increased significantly in the past years. In 2025, we export 22 million barrels of oil. That is an increase of 110% vis-a-vis 2024. That generates 1.4 billion of export revenues. So, according when you look at our plans, we plan to double that in 2028. So BESA is a fully-owned subsidiary. The rationale behind moving into the trading business is to improve our market reach. Higher volume means that we need to develop more clients in different markets. And we believe that selling cargoes and delivering basis will allow us to be more competitive. So it's very preliminary to common and merchant we believe it will not be very material to the results of the entire company. So having our own trading units adds flexibility to our short-term hedging program, allowing us to hedge all sales on a short-term basis and basically to manage the cash flow on a quarterly basis. So we are not planning today to make any hedge on long-term, But short term, we believe we will have a benefit having VESA.

Thank you.

One moment for our next question. Our next question comes from the line of George Gastel from Latin Securities. Your line is open.

Good morning, Miguel, and thank you for taking my question. You mentioned earlier free cash flow. Expectations at around $150 to $200 million this year. Prices have started to get a little bit above the assumption of $65 Brent. And I was wondering how you're thinking about capital deployment and the capital deployment framework you also mentioned in the current price context.

Thank you for your question. So, I mean, we said that we are very happy with the Brent prices on Q1 this year. um it was not expected and uh and i think this we believe is mainly based on the volatility that we see in the market related to geopolitical issues i think it's very early to change our plan for the entire year so of course we will watch what happened with your price but uh i don't think that it will affect any short-term decision. Regarding long-term, it's related to the question that Bruno said. I mean, we have our capital allocation framework, and anything that we can do in reducing debt and buybacks, dividends of M&A acquisition, cash in hand would be helpful to be more aggressive or less aggressive, depending how we build up that cash during the years to come.

Very good. Thank you.

Thank you. One moment for our next question. Our next question comes from Jao Barichello from UBS. Your line is open.

Hi, Miguel and team. Thanks for taking my questions. I have only a very quick one from my side. So regarding the acquisition of Valdel Toro and Mandu Resur, the company stated that the transaction will be financed by a combination of both cash and bank financing. So could you provide an update on this financing plan? What are the expectations for the breakdown of cash and banking finance funds? That is from my side. Thanks.

Thank you, Joao, for your question. Yes, I mean, the initial $387 million cash payment will be funded 100% with debt, and we plan to keep the cash balance stable at Vista. Pablo and Ale have agreed with the three top tier banks, a bridge loan of $300 million of acquisition financing, which should be used and will be used and should be enough to cover our initial cash payment. So, again, I mean, we'll do something with that later on, but it will not affect our balance sheet today and our plan and capping that we have for the year.

One moment for our next question. Our next question will come from the line of Oriana Cobalt from Balance. Your line is open.

Hi. Thanks for taking my questions and congratulations on the results for the quarter. I'm just perhaps going into or directly into potential shareholder returns. in the more constructive pricing scenario? What are the alternatives you have in place for 2016? And mainly, do you have any thoughts to renew and or expand the buyback program this year? Thank you.

Hi, Oriana. Oriana, thank you for your question. So in August, we executed the $50 million buyback plan that was approved by the shareholder meeting in April last year. We purchased 1.2 million shares. at $41.2 per share. So we are considering the current share price. Considering the current share price, we are super happy with the outcome of that buyback plan. We plan to request an extension of the program in the coming shareholder meeting that is coming now in April. And we believe it will be larger in size than the one that we plan for 2025.

Perfect. Thank you very much.

Thank you. One moment for our next question. Our next question will come from Francisco Cascaron from Don Capital. Your line is open.

Hi. Thank you for taking my question. Given that you announced a cap of $1.5 to $1.6 billion, between 2006 and 2008. What is your maintenance capex expectation in the foreseeable future?

Hi, Francisco. Thanks for your question. Using 100,000 barrels per day of production as a reference, you need around 700 to 750 million dollars of capex to keep production flat going forward. And assuming that by the end of the year, We will be around 150,000 barrels per day. This, of course, is including equinox asset. We will need around 60 wells to keep production flat. So that will equate of around $850 million capex to keep production flat. So you should take more or less those numbers.

Thank you. Thank you.

One moment for our next question. Our next question will come from Matias Cateruzzi from ADCAP Securities. Your line is open.

Thank you, Miguel and Alejandro. Good morning. How could you characterize Vista's relationship with YTF today after the Marga Chica's acquisition and now the Equinor deal? where YPF is also an operator.

Hi, Matias, and thanks for your question. The short answer is the relationship with YPF is great. We have very high hope after the acquisition of Petronas asset on how the relationship will be put in place and will evolve. And to be honest with you, it turned out even better than we expect. is working very well at all levels. I would say that at the top, the strategies are aligned. Both companies want to continue, and that makes the relationship very easy because we have the same target. The technical teams are working side by side, and that, for me, is the more important part. We see them sharing geological information, collaborating, meeting, but more importantly, there has been synergies that have been captured, sharing all treatment capacity that have led to safe of capex, sharing well services, enabling both companies to optimize headcount, discussing artificial lease strategies that will help to improve the long-term productivity of the well and reduce lifting costs. So, all in all, I will set a great relationship And that, of course, that was the fact that gave us confidence also to execute the eking order. That was something that we took in consideration at the time that we made the decision.

Okay, great. Thanks so much.

Thank you. I'm not showing any further questions at this time. I want to try to back over to Miguel for any closing remarks.

Ladies and gentlemen, thank you very much once again for the support. Very good quarter, and we are pretty much on track to deliver our guidance in 2026. Very good start of the year. Thank you, everybody.

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