Core Viewpoint - The article emphasizes the importance of value investing and highlights Vista Energy, S.A.B. de C.V. (VIST) as a strong candidate for value investors due to its attractive valuation metrics and earnings outlook [2][4][7] Valuation Metrics - VIST has a P/E ratio of 5.57, significantly lower than the industry average of 12.50, indicating potential undervaluation [4] - The stock's P/B ratio stands at 1.51, compared to the industry average of 1.82, suggesting it is undervalued relative to its book value [5] - VIST's P/CF ratio is 3.23, which is attractive when compared to the industry's average of 6.28, further supporting the notion of undervaluation [6] Earnings Outlook - The strong earnings outlook for VIST, combined with its favorable valuation metrics, positions it as one of the market's strongest value stocks [7]

Core Insights - Vista Energy SAB de CV (NYSE:VIST) has shown strong performance, with its stock price increasing by 18.66% to close at $47.50, marking a four-day winning streak driven by JP Morgan's price target upgrade [1][2] Financial Performance - Vista Energy reported a net income of $315 million for Q3, up from $165 million year-on-year, indicating significant growth [4] - Revenues for the company increased by 52.8% to $706 million compared to $462 million in the same period last year, attributed to higher oil production and rising oil prices [4] - Oil production rose to 109,677 barrels per day (bbpd) from 63,499 bbpd year-on-year, despite a 5% decline in crude oil prices to an average of $64.6 per barrel [5] Analyst Recommendations - JP Morgan raised its price target for Vista Energy to $56 from $50, maintaining a "buy" recommendation for the stock [2]

Financial Data and Key Metrics Changes - Total production reached 127,000 BOEs per day, a 74% increase year over year and a 7% increase quarter on quarter [4][6] - Total revenues for the quarter were $706 million, up 53% year over year and 16% sequentially [4][7] - Adjusted EBITDA was $472 million, reflecting a 52% year-over-year increase and a 70% sequential increase [4][9] - Net income was $315 million, including a non-recurring gain of $288 million from the Petronas Argentina acquisition [5][10] - Free cash flow was nearly neutral at minus $29 million, driven by higher adjusted EBITDA and a decrease in working capital [5][10] Business Line Data and Key Metrics Changes - Oil production was 110,000 barrels per day, a 73% increase year over year and a 7% increase quarter on quarter [4][6] - Gas production increased by 87% year over year and 9% quarter on quarter [7] - Lifting cost was $4.4 per BOE, down 6% year over year [9] - Selling expenses per BOE decreased by 24% year over year due to the elimination of oil trucking services [9] Market Data and Key Metrics Changes - Oil exports increased by 84% year over year to 6.3 million barrels for the quarter [8] - Realized oil prices averaged $64.6 per barrel, down 5% year over year but up 4% sequentially [8] - 100% of oil volumes were sold at export parity prices during the quarter [9] Company Strategy and Development Direction - The company plans to accelerate New World activity in Q4, with plans to connect between 12 and 16 Tains [6][11] - The focus remains on profitable growth, cost efficiency, and cash generation, with an updated strategic plan to be presented at the upcoming Investor Day [11][12] - The company maintains a strong appetite for M&A opportunities, emphasizing a proven track record in creating value through acquisitions [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model, stating that the upcoming elections would not alter the company's growth plans [51][52] - The company is positioned to over-deliver on production guidance for the year, with Q4 production expected to be around 130,000 BOEs per day [27][28] - Management highlighted strong well productivity and financial flexibility as key drivers for future growth [6][11] Other Important Information - The net leverage ratio at the end of the quarter was 1.5 times on a performance basis [5][10] - Cash at period end was $320 million, with cash flow from operating activities at $304 million [10] Q&A Session Summary Question: Price realization and expectations for coming quarters - Management noted that strong realization prices were driven by flexibility in pricing and high oil demand from the West Coast U.S. [15][16] Question: Rationale for increased well times and future expectations - The increase in well times was attributed to regained financial flexibility and improved productivity, with expectations to maintain the drilling rhythm in Q4 [21][22] Question: Production outlook for Q4 - Management confirmed that Q4 production is expected to be around 130,000 barrels per day, exceeding previous guidance [27][28] Question: Evolution of drilling and completion costs - Current drilling and completion costs are slightly below previous figures, with expectations for further savings through ongoing initiatives [31][32] Question: Key challenges and opportunities in La Margachica - The relationship with YPF has been collaborative, with good production performance and cost efficiency noted [36] Question: M&A appetite and current opportunities - The appetite for M&A remains strong, with ongoing discussions but no formal processes currently [39][40] Question: CAPEX required to maintain production levels - Estimated CAPEX to maintain production at 100,000 barrels per day is around $700 million, while for 150,000 barrels per day, it would be approximately $800 million [46][47] Question: Impact of midterm elections on operations - Management indicated that the elections would not affect the company's plans or operations in Vaca Muerta [51][52] Question: EBITDA sensitivity to oil prices - For every dollar change in realized oil prices, adjusted EBITDA is expected to change by approximately $8 million to $9 million [58]

Production Highlights - Total production reached 127 Mboe/d, a 74% year-over-year increase and a 7% quarter-over-quarter increase[12] - Oil production specifically hit 110 Mbbl/d, showing a 73% year-over-year increase and a 7% quarter-over-quarter increase[12] - Strong productivity from new well tie-ins boosted Q3 2025 production growth by 7% quarter-over-quarter[14] Financial Performance - Revenues increased to $706 million, a 53% year-over-year increase and a 16% quarter-over-quarter increase[13] - Adjusted EBITDA reached $472 million, a 52% year-over-year increase and a 17% quarter-over-quarter increase[12] - Net income was $319 million, while adjusted net income was $155 million[12] - Earnings per share (EPS) was $30, while adjusted EPS was $15[12] Costs and Pricing - Lifting cost decreased to $44 per barrel of oil equivalent (boe), a 6% year-over-year decrease and a 5% quarter-over-quarter decrease[12] - Average realized oil price was $646 per barrel[20] Cash Flow and Leverage - Pro forma net leverage ratio was 15x Adjusted EBITDA[12] - Operating activities cash flow reflects income tax payments of $179 million, partially offset by a decrease in working capital of $43 million[31]

Exhibit 1 VISTA ENERGY, S.A.B. DE C.V. Unaudited interim condensed consolidated financial statements as of September 30, 2025 and December 31, 2024 and for the nine-month periods ended September 30, 2025 and 2024 VISTA ENERGY, S.A.B. DE C.V. Unaudited interim condensed consolidated financial statements as of September 30, 2025 and December 31, 2024 and for the nine-month periods ended September 30, 2025 and 2024 TABLE OF CONTENTS 2 • Unaudited interim condensed consolidated statements of profit or loss and ...

Group 1 - Vista Energy, S.A.B. de C.V. (NYSE:VIST) is recognized as one of the most profitable oil stocks currently available for investment [1] - ABS Direct Equity Fund LLC acquired a new stake in Vista Energy, purchasing 20,000 shares, amounting to an investment of approximately $956,000, making it the fund's twenty-fourth largest holding [1] - The company is a significant player in Argentina's Vaca Muerta basin, indicating strong potential for medium-term production growth [2] Group 2 - Vista Energy's strategic alignment with national energy policy and its leadership in the industry present a compelling investment opportunity [2] - The potential of Vaca Muerta is likened to the Permian Basin's potential a decade ago, suggesting significant future growth [3] - Vista Energy, founded in 2017, operates in Latin America and holds assets covering nearly 205,600 acres [4]

Core Viewpoint - Vista Energy, S.A.B. de C.V. has experienced a significant stock price increase of 9.8% in the last two trading sessions, attributed to a favorable commodity price environment and strong production outlook in the Vaca Muerta shale region of Argentina [1][2] Company Overview - Vista Energy is engaged in the exploration and production of oil in the Vaca Muerta region, which is known for its rich oil and gas reserves [2] - The company has identified untapped premium drilling locations in Vaca Muerta, expected to support future production activities [2] Financial Performance - The upcoming quarterly earnings are projected at $1.16 per share, reflecting a year-over-year increase of 110.9% [3] - Expected revenues for the quarter are $614.51 million, representing a 32.9% increase from the same quarter last year [3] Market Sentiment - Despite the positive earnings and revenue growth expectations, the consensus EPS estimate has been revised down by 9.4% over the last 30 days, which may impact future stock price appreciation [4] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [5]

Group 1: Company Overview - Vista Energy, S.A.B. de C.V. (NYSE:VIST) is headquartered in Mexico City and focuses on exploring and producing oil and gas in Latin America, having been founded in 2017 [4] - The company is recognized as a key player in Argentina's Vaca Muerta basin, which is expected to experience rapid growth, comparable to the Permian Basin's potential a decade ago [2] Group 2: Investment Potential - Mirae Asset Global ETFs Holdings Ltd. increased its stake in Vista Energy by 13.9% in the first quarter, acquiring 109,483 shares, bringing its total ownership to 896,300 shares valued at $41,732,000 [1] - Vista Energy's leadership, particularly CEO Miguel Galuccio, is noted for its strong direction, which has facilitated significant acquisitions, including the Argentine subsidiary of Petronas and the Aconcagua Energía purchase through Tango Energy [3]

Group 1 - Vista Energy is a significant player in the Vaca Muerta region, second only to YPF [1] - The company is focused on medium-term production growth, indicating a positive outlook for its operations [1] - The analyst emphasizes the importance of companies with sustained free cash flows, low leverage, and sustainable debt levels, which Vista Energy appears to align with [1] Group 2 - The analyst seeks value in companies within the commodities sector, particularly those in emerging markets, which may present good investment opportunities [1] - A solid pro-shareholder attitude, including buyback programs and dividend distributions, is highlighted as a key factor for investment consideration [1] - The analyst's background includes a financial master's degree with a specialization in company valuation, enhancing the credibility of the analysis [1]

Group 1 - Vista Energy will host a virtual investor day on November 12, 2025, at 9:00 a.m. ET to update on its Strategic Plan aimed at delivering industry-leading growth and superior total shareholder returns [1] - The event is open to institutional investors and sell-side analysts, with registration available at www.vistainvestorday.com [2] - A webcast replay and slide presentation will be accessible after the event [2] Group 2 - Vista Energy is the largest independent producer and oil exporter in Argentina, focusing on the Vaca Muerta shale oil and gas play [2] - The company's strategy includes developing a high-return shale oil drilling inventory of up to 1,200 ready-to-drill wells across more than 229,000 acres in Vaca Muerta, emphasizing cost efficiency and lower carbon intensity production [2]