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.