Core Viewpoint - The focus is on identifying undervalued stocks with a strong potential for growth while managing risks effectively [1] Group 1 - The investment strategy emphasizes the importance of understanding the assets owned to limit risks and maximize potential returns [1] - There is a belief that the most effective investment ideas are often straightforward, and a contrarian approach can yield better results [1]

Core Insights - Vista Energy S.A.B. de C.V. reported third-quarter 2025 adjusted earnings per share of $1.48, exceeding the Zacks Consensus Estimate of $1.24 and improving from $0.55 in the prior-year quarter [1][9] - The company's quarterly revenues reached $706 million, significantly up from $462 million in the same period last year, and also surpassed the Zacks Consensus Estimate of $663 million [1][9] Production and Performance - Total production averaged 126,752 barrels of oil equivalent per day (Boe/d), marking a 74% increase from 72,825 Boe/d in the year-ago quarter, with 86.5% of the output being crude oil [3][4] - Crude oil production rose to 109,677 barrels per day (Bbls/d) from 63,499 Bbls/d year over year, while natural gas output increased by 87% to 2.65 million cubic meters per day (MMm/d) [4] Pricing and Costs - The average realized crude oil price was $64.6 per barrel, down 5% from $68.4 a year ago, while the average realized natural gas price decreased to $3.30 per million British thermal units (MMBtu) from $3.80 [5] - Lifting costs totaled $51.8 million, a 64% increase year over year, with costs per barrel of oil equivalent at $4.4, down 6% from $4.7 in the prior-year quarter [6] Financial Position - As of September 30, 2025, Vista Energy had $319.7 million in cash and short-term investments, with gross financial debt at $2.92 billion [7] - Capital expenditure for the quarter was $351 million, and net cash from operating activities was $303.9 million [7] Future Guidance - The company expects total production in the fourth quarter to be around 130,000 Boe/d, with full-year production projected between 112,000 and 114,000 Boe/d for 2025 [8] - Adjusted EBITDA guidance for 2025 has been raised to $1.65-$1.85 billion, up from the previous estimate of $1.30-$1.35 billion at a $60 per barrel oil price [8]

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]

Revenue and Profitability - Revenue from contracts with customers for the nine-month period ended September 30, 2025, reached $1,755,133 thousand, a 49% increase from $1,176,450 thousand in the same period of 2024[8] - Gross profit for the nine-month period ended September 30, 2025, was $834,340 thousand, up 39% from $601,103 thousand in the prior year[8] - Operating profit increased significantly to $1,038,071 thousand for the nine-month period ended September 30, 2025, compared to $495,976 thousand in the same period of 2024, representing a 109% growth[8] - Net profit for the period was $633,368 thousand, a 65% increase from $383,750 thousand in the nine-month period ended September 30, 2024[8] - The company reported a basic earnings per share of $6.215 for the nine-month period ended September 30, 2025, compared to $3.992 in the same period of 2024, indicating a 56% increase[8] - For the nine-month period ended September 30, 2025, the net profit was $633,368 thousand, a 65.2% increase compared to $383,750 thousand in the same period of 2024[22] - Revenues from crude oil sales significantly increased to $1,683,594, up 50% from $1,118,366 year-over-year[77] - The company reported a profit for the period of $633,368, which is a 65% increase from $383,750 in the previous year[95] - Basic earnings per share rose to $6.215, up from $3.992 in the same period last year, reflecting a 56% increase[95] Assets and Equity - Total assets as of September 30, 2025, amounted to $6,739,254 thousand, up from $4,232,372 thousand as of December 31, 2024, reflecting a 59% increase[11] - Total equity increased to $2,407,619 thousand as of September 30, 2025, compared to $1,621,213 thousand at the end of 2024, marking a 48% rise[11] - As of September 30, 2025, the company's noncurrent assets in Argentina were valued at $5,937,735, a significant increase from $3,128,742 as of December 31, 2024[72] - The company’s total noncurrent assets as of September 30, 2025, amounted to $5,992,013, up from $3,180,101 as of December 31, 2024[72] Cash Flow and Investments - Cash flows from operating activities for the nine-month period were $360,895 thousand, down from $589,541 thousand in the same period of 2024, reflecting a decrease of 38.8%[22] - Total cash flows used in investing activities amounted to $1,989,407 thousand for the nine-month period ended September 30, 2025, compared to $739,499 thousand in 2024, indicating a substantial increase of 168.9%[24] - The company received a net amount of $1,975 under the Argentine promotion plan to stimulate natural gas production for the nine-month period ended September 30, 2025, compared to $2,387 for the same period in 2024[59] Borrowings and Financial Liabilities - Borrowings increased to $2,369,659 thousand as of September 30, 2025, compared to $1,402,343 thousand at the end of 2024, reflecting a 69% increase[11] - Total borrowings increased to $2,927,948 thousand as of September 30, 2025, up from $1,448,567 thousand as of December 31, 2024, representing an increase of 102.5%[121] - Current borrowings surged to $558,289 thousand as of September 30, 2025, from $46,224 thousand as of December 31, 2024, marking an increase of 1,107.5%[121] - The company maintained compliance with all financial covenants associated with its borrowings as of September 30, 2025[126] - The total financial liabilities at amortized cost were $2,927,948 thousand as of September 30, 2025, reflecting the company's significant leverage position[148] Expenses and Depreciation - The company reported a significant increase in depreciation and depletion expenses, totaling $507,433 thousand for the nine-month period ended September 30, 2025, compared to $293,964 thousand in 2024, representing a 72.7% increase[22] - Interest expense for the nine-month period ended September 30, 2025, was $113,260 thousand, significantly higher than $37,138 thousand in the same period of 2024, marking an increase of 205.5%[22] - The total income tax expense for the nine-month period ended September 30, 2025, was $(232,244) thousand, compared to $(77,181) thousand for the same period in 2024, showing an increase of 201.5%[109] - The effective tax rate for the nine-month period ended September 30, 2025, was 27%, up from 18% in the same period of 2024[109] Shareholder Activities - The company has created a share repurchase reserve of $179,324 thousand as of September 30, 2025, up from $129,324 thousand at the end of 2024[14] - The company repurchased 1,213,371 Series A shares for a total amount of $50,000 during the nine-month period ended September 30, 2025[170] - The company's share repurchase reserve increased to $179,324 as of September 30, 2025, compared to $129,324 as of December 31, 2024, reflecting a growth of approximately 38.7%[175] Business Combinations and Acquisitions - The company completed the acquisition of Petronas E&P Argentina S.A. for a total consideration of $1,406,441 thousand, which included $899,687 thousand paid in cash[34] - The company recognized the acquisition of Vista Lach as a business combination during the nine-month period ended September 30, 2025[55] - Vista Lach contributed $433,746 in revenue from contracts with customers and $187,214 to the company's profit before income tax since the acquisition date[199] - The company recorded a gain from the business combination of $490,530, classified under "Other operating income" due to the difference between the consideration paid and the net identifiable assets[198] Other Financial Metrics - The company recognized an impairment of $38,252 for the nine-month period ended September 30, 2025, which includes $38,229 related to property, plant, and equipment, and $23 related to other intangible assets[45] - The company recorded a loss from investments in associates of $3,746 for the nine-month period ended September 30, 2025, compared to a loss of $2,767 for the same period in 2024[163] - The company's total inventories increased to $12,772 as of September 30, 2025, compared to $6,469 as of December 31, 2024, reflecting a growth of approximately 97.5%[164]

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]