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

Good day, everyone, and thank you for standing by. Welcome to VISTA's second quarter 2026 earnings webcast. 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, you will need to press star 1-1 on your telephone. You will then hear a message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. Now it's my pleasure to hand the conference to VISTA's Strategic Planning and Investor Relations Officer, Alejandro Chernacov. Please proceed.

Thanks. Good morning, everyone. We are happy to welcome you to VISTA's second quarter of 2026 results conference call. I am here with Miguel Galuccio, VISTA's chairman and CEO, Pablo Vera Pinto, VISTA's CFO, Vista CTO, and Matias Weissel Vista 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 . However, during this conference call, we may discuss certain non-IFRS financial measures such as adjusted EBITDA and adjusted net income. Reconsiderations 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 Sociedad Anónima Bursátil de Capital Variable, organized under the laws of Mexico, registered in the Bolsa Mexicana de Valores at 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 and welcome to this evening call. The second quarter of 2026 was marked by the closing of that position for 18-year-old asset in Vaca Muerta. This milestone, in combination with the organic growth, took our company to a new scale, leaving us in an excellent position to capture the upside of higher oil prices. As a result, adjusted EVDA and free cash flow generation record substantial interannual and sequential increases. Total production was 156,000 units per day, 32% above the previous year. All production was 135,000 barrels per day, up 33% vis-a-vis the previous year. Total revenues during the quarter were $1.15 billion, an impressive growth of 89% compared to the same quarter of last year. Lifting costs was $4.5 per VOE, 4% below year over year. Capital expenditure was $467 million, driven by strong progress in new well activities during the quarter. Adjusted EVA was $805 million, an inter-annual increase of 99%. Net income was $322 million, an increase of 37% compared to the same quarter of last year, and 199% versus the previous quarter. Excluding the gain from La Marga Chica acquisition in Q2 2025, Net income expanded by more than nine times year over year. We record earnings per share of $3 during the quarter. Net of the Keynote Acquisition Payment free cash flow was $491 million, reflecting a significant boost in adjusted EBITDA generation and a meaningful improvement in working capital. Finally, our net leverage ratio at quarter end was 1.41 times adjusted EBITDA. On a performance basis, reflecting last 12 months figures for the acquired asset, the ratio was 1.25 times adjusted EBITDA, marking a significant reduction year on year and reflecting a very strong balance sheet. Total production during Q2 averaged 156.1 thousand VOs per day. This represents an internal increase of 32% and a sequential increase of 16%. There are two drivers behind this boost. The first is organic growth. We connected 90 new wells in the last 12 months with very solid productivity, generating a 20% production growth compared to Q2 last year. On top of this, the consolidation of our working interest in Bandurria Sur, Embajada del Toro, as of May 1st, added 14.2 thousand barrels of oil equivalent per day on average for the quarter. This reflects a run rate about 21,000 VOEs per day, which will impact fully in the third quarter. Our total production in May and June was, on average, 161.6 thousand buoys per day. Quarterly average oil production was 135.4 thousand barrels per day, 33 percent higher year over year, and 60 percent above the previous quarter. Gas production increased 30 percent on an interannual basis and 15 percent sequentially. Total revenues during the Q2 were $1.15 billion, a material growth of 89% compared to the previous year and 66% versus the previous quarter, driven by a solid increase in oil production and higher oil prices. Oil exports increased 54% year-over-year, reaching 8.6 million barrels in the quarter, representing 72% of our oil sales volume. Tradizol prices in Q2 was $89.4 per barrel, 44% above the previous year, and 49% above the previous quarter, in both cases driven by higher brands and an improvement in differentials. We sold 100% of our oil volumes at export parity prices, both domestically and internationally. In Q2, lifting costs was $4.5 per VOE, an interannual reduction of 4% reflecting our low-cost asset base and fixed-cost dilution as we continue to gain scale. On a sequential basis, lifting costs increased driven by the impact of inflation on peso-denominated goods and services amid flat effect rates. Selling expenses were $4.1 per VOE, an 8% increase year-over-year, mainly driven by higher oil prices impacting turnover tax. Adjusted EVDA during the quarter was $805 million, 99% higher interannually and 79% higher sequentially, driven by a material expansion of revenues amid flat unit cost. A adjusted EBITDA margin was 70%, an expansion of 3 percentage points compared to the same quarter of last year, and 5 percentage points above the previous quarter. Net back increased 51% year-over-year to $57 per BOE. In Q2 2026, cash flow from operating activities was $985 million. reflecting a decrease in working capital of $274 million, mostly driven by the full normalization of the working capital position of our trading subsidiary, EVEISA. We also made an income tax payment of $53 million. Cash flow used in investment activities was $886 million. reflecting accrued CAPEC of $467 million, the $392 million payment related to the QNOR acquisition, and an increase in CAPEC-related working capital of $21 million. Net of the QNOR acquisition, free cash flow was $491 million during the quarter, leaving us well-placed to deliver on our annual guidance. Cash flow from financing activities was negative $110 million, driven by the repayment of borrowings for $810 million, and interest payments of $88 million, partially offset by proceeds from borrowings for $856 million. Finally, our cash position remains very strong. standing at $605 million at end of Q2. Our net leverage ratio stood at 1.41 times adjusted EVDA or 1.25 on a pro forma basis considering the last 12 months of adjusted EVDA for the acquired assets. To conclude this call and before we move to Q&A, I will make some closing remarks. During Q2, we materially increased the scale of our company on the back of a solid organic growth and the successful closing of the acquisition of our interest in the Bandurria Sur and Bajada del Toro blocks in Vaca Muerta. These allow us to capture the benefit of the oil price spike in Q2, leading to a substantial boost to adjusted EVDA and free cash flow generation. In line with our Capital Allocation Framework, we plan to use part of the free cash flow to reduce our net leverage ratio to our target of around one times by the end of the year. We made very good progress on our annual work program and are well on track to deliver our 2026 guidance. We are maintaining our $3 billion HACCP DBA guidance at $85 per barrel as of now. but I want to provide a sensitivity due to the prevailing volatility in oil prices. For every $10 per barrel change in the second semester, adjusted EVDA changes approximately $200 million. Before we move to Q&A, I would like to thank all VISTA employees for their hard work during the quarter, as well as our investors for their continued support. Operator, we can now move to Q&A.