Vista Energy(VIST) - 2024 Q4 - Annual Report

Financial Statements The company's 2024 financial statements reflect substantial growth in revenue and assets, alongside a significant increase in liabilities to fund expansion Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income The company reported a 41% revenue increase to $1.65 billion, with net profit rising 20% to $477.5 million in 2024 Consolidated Statement of Profit or Loss (Year Ended Dec 31) | Metric | 2024 (in thousands USD) | 2023 (in thousands USD) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 1,647,768 | 1,168,774 | +41.0% | | Gross profit | 817,743 | 591,249 | +38.3% | | Operating profit | 625,390 | 631,487 | -1.0% | | Profit before income tax | 590,827 | 545,359 | +8.3% | | Profit for the year, net | 477,521 | 396,955 | +20.3% | | Basic earnings per share (USD) | 4.979 | 4.237 | +17.5% | | Diluted earnings per share (USD) | 4.633 | 4.000 | +15.8% | Unaudited interim condensed consolidated statements of financial position Total assets grew 63% to $4.23 billion, funded by a 93% increase in total liabilities to $2.61 billion Consolidated Statement of Financial Position (As of Dec 31) | Metric | 2024 (in thousands USD) | 2023 (in thousands USD) | YoY Change | | :--- | :--- | :--- | :--- | | Total noncurrent assets | 3,180,101 | 2,172,099 | +46.4% | | Total current assets | 1,052,271 | 425,904 | +147.1% | | Total assets | 4,232,372 | 2,598,003 | +62.9% | | Total equity | 1,621,213 | 1,247,015 | +30.0% | | Total noncurrent liabilities | 1,553,405 | 991,602 | +56.7% | | Total current liabilities | 1,057,754 | 359,386 | +194.3% | | Total liabilities | 2,611,159 | 1,350,988 | +93.3% | | Total equity and liabilities | 4,232,372 | 2,598,003 | +62.9% | Unaudited interim condensed consolidated statement of changes in equity Total equity increased by 30% to $1.62 billion, driven by net profit and partially offset by share repurchases Changes in Equity for the Year Ended Dec 31, 2024 | Description | Amount (in thousands USD) | | :--- | :--- | | Equity as of Dec 31, 2023 | 1,247,015 | | Profit for the year, net | 477,521 | | Other comprehensive income | (6,630) | | Share repurchase | (99,846) | | Equity as of Dec 31, 2024 | 1,621,213 | - In 2024, the company reduced its capital stock by $19.9 million to absorb accumulated losses and repurchased shares worth $99.8 million[13] Unaudited interim condensed consolidated statements of cash flows Net cash from operations increased to $959.0 million, while significant investments were funded by new borrowings Consolidated Statement of Cash Flows (Year Ended Dec 31) | Metric | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Net cash flows provided by operating activities | 959,026 | 712,033 | | Net cash flows used in investing activities | (1,051,876) | (699,313) | | Net cash flow provided by financing activities | 641,211 | 19,556 | | Net increase in cash and cash equivalents | 548,361 | 32,276 | | Cash and cash equivalents at end of year | 755,610 | 209,516 | Notes to the unaudited interim condensed consolidated financial statements These notes provide detailed disclosures on accounting policies, segment information, and specific financial statement line items Note 1. Group information This note details the company's oil and gas operations and highlights significant 2024 transactions, including bond issuances and pipeline projects - On December 10, 2024, the company's subsidiary, Vista Argentina, issued a corporate bond (ON XXVII) for $600 million with an average 10-year term and a 7.625% annual interest rate[29] - An agreement was signed with Trafigura on December 16, 2024, for Vista to reacquire Trafigura's interest in farmout agreements I and II in the Bajada del Palo Oeste area, effective January 1, 2025, for which Vista will pay Trafigura $128 million in 48 monthly installments[32][33] - The company joined the Vaca Muerta Sur (VMOS) pipeline project with a 14.1% initial minority interest and secured transportation capacity in the Vaca Muerta Center (VMOC) pipeline[37][40][41] Note 2. Basis of preparation and material accounting policies The company recorded a $4.2 million impairment reversal for its Mexico assets in 2024, contrasting with a $24.6 million impairment in 2023 - For the year ended December 31, 2024, the company recorded a reversal of impairment of $4,207 thousand related to its conventional oil and gas concessions in Mexico[54] - In contrast, for the year ended December 31, 2023, the company recorded an impairment of $22,906 thousand for its Mexico CGU and $1,679 thousand for its non-operating conventional CGU in Argentina[56] Key Assumptions for Impairment Testing (After-tax Discount Rates) | Region | 2024 | 2023 | | :--- | :--- | :--- | | Argentina | 9.9% | 12.9% | | Mexico | 7.4% | 6.0% | Note 3. Segment information The company operates as a single reportable segment in oil and gas E&P, with 99% of 2024 revenues generated from assets in Argentina - The company considers its exploration and production activities as a single operating segment[78] Noncurrent Assets by Geographical Area | Geography | As of Dec 31, 2024 (in thousands USD) | As of Dec 31, 2023 (in thousands USD) | | :--- | :--- | :--- | | Argentina | 3,128,742 | 2,122,735 | | Mexico | 51,359 | 49,364 | | Total | 3,180,101 | 2,172,099 | Note 4. Revenue from contracts with customers Total revenue reached $1.65 billion in 2024, a 41% increase driven primarily by a 43% rise in crude oil sales Revenue by Product Type (Year Ended Dec 31) | Product | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Crude oil sales | 1,573,069 | 1,097,316 | | Natural gas sales | 71,756 | 67,290 | | LPG sales | 2,943 | 4,168 | | Total | 1,647,768 | 1,168,774 | Revenue by Distribution Channel (Year Ended Dec 31) | Channel | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Exports of crude oil | 807,526 | 642,155 | | Local crude oil | 765,543 | 455,161 | | Natural gas (Local & Export) | 71,756 | 67,290 | | LPG sales | 2,943 | 4,168 | | Total | 1,647,768 | 1,168,774 | Note 5. Cost of sales Operating costs and royalties increased in 2024, with royalties and related costs rising to $244.0 million due to higher export duties Operating Costs (Year Ended Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Fees and compensation for services | 62,006 | 48,729 | | Salaries and payroll taxes | 27,310 | 21,072 | | Other | 27,210 | 24,884 | | Total | 116,526 | 94,685 | Royalties and Others (Year Ended Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Royalties | 184,441 | 128,723 | | Export duties | 59,509 | 48,090 | | Total | 243,950 | 176,813 | Note 6. Selling expenses Selling expenses more than doubled to $140.3 million in 2024, driven by a significant rise in transport costs Selling Expenses (Year Ended Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Transport | 88,257 | 33,006 | | Taxes, rates and contributions | 24,960 | 14,908 | | Other | 27,117 | 20,878 | | Total | 140,334 | 68,792 | Note 7. General and administrative expenses General and administrative expenses increased to $109.0 million in 2024, primarily due to higher salaries and share-based payments General and Administrative Expenses (Year Ended Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Salaries and payroll taxes | 37,587 | 23,300 | | Share-based payments | 34,923 | 23,133 | | Fees and compensation for services | 13,377 | 11,764 | | Taxes, rates and contributions | 9,687 | 1,884 | | Other | 13,380 | 10,402 | | Total | 108,954 | 70,483 | Note 8. Other operating income and expenses Other operating income decreased to $54.1 million in 2024, as one-time gains from asset transfers in 2023 were not repeated Other Operating Income (Year Ended Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Gain from Exports Increase Program | 45,201 | 81,232 | | Gain related to the transfer of conventional assets | — | 89,659 | | Gain from farmout agreement | — | 24,429 | | Other income | 8,926 | 8,492 | | Total | 54,127 | 203,812 | Note 9. Financial income (expense), net Net financial expense decreased significantly to $34.6 million in 2024 from $86.1 million in 2023, despite higher interest expense Net Financial Income (Expense) (Year Ended Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Interest income | 4,535 | 1,235 | | Interest expense | (62,499) | (21,879) | | Other financial income (expense) | 23,401 | (65,484) | | Total | (34,563) | (86,128) | Note 10. Earnings per share Reflecting higher net profit, basic EPS rose to $4.979 and diluted EPS increased to $4.633 in 2024 Earnings Per Share (Year Ended Dec 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Profit for the year, net (thousands USD) | 477,521 | 396,955 | | Weighted average ordinary shares (Basic) | 95,906,449 | 93,679,904 | | Basic EPS (USD) | 4.979 | 4.237 | | Weighted average ordinary shares (Diluted) | 103,077,629 | 99,232,919 | | Diluted EPS (USD) | 4.633 | 4.000 | Note 11. Property, plant and equipment The net value of PP&E increased by 45.5% to $2.81 billion, driven by additions of $1.30 billion in works in progress and production facilities PP&E Movement for Year Ended Dec 31, 2024 | Description | Amount (in thousands USD) | | :--- | :--- | | Net Value as of Dec 31, 2023 | 1,927,759 | | Additions | 1,296,764 | | Depreciation | (422,526) | | Reversal of impairment | 4,207 | | Disposals & Other | (234) | | Net Value as of Dec 31, 2024 | 2,805,983 | Note 12. Goodwill and other intangible assets Goodwill remained unchanged at $22.6 million, while other intangible assets increased to $15.4 million due to new additions Goodwill and Other Intangible Assets (As of Dec 31) | Asset | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Goodwill | 22,576 | 22,576 | | Other intangible assets | 15,443 | 10,026 | Note 13. Right-of-use assets and lease liabilities Right-of-use assets increased to $105.3 million due to new additions, with corresponding lease liabilities growing to $95.7 million Right-of-Use Assets and Lease Liabilities (As of Dec 31) | Item | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Right-of-use assets | 105,333 | 61,025 | | Lease liabilities | (95,660) | (70,468) | Note 14. Income tax The company's effective tax rate was 19% in 2024, lower than the 27% rate in 2023 due to inflation adjustments in Argentina Income Tax Expense (Year Ended Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Current income tax | (426,288) | (16,393) | | Deferred income tax | 312,982 | (132,011) | | Total Expense in P&L | (113,306) | (148,404) | - The company's effective tax rate was 19% in 2024, compared to 27% in 2023[116] Note 15. Trade and other receivables Total trade and other receivables increased to $486.8 million, driven by advance payments for transportation and higher VAT credits Trade and Other Receivables (As of Dec 31) | Category | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Noncurrent | 205,268 | 136,351 | | Current | 281,495 | 205,102 | | Total | 486,763 | 341,453 | Note 16. Financial assets and liabilities Total borrowings more than doubled to $1.45 billion due to new corporate bond issuances, while the company remained in covenant compliance Total Borrowings (As of Dec 31) | Category | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Noncurrent | 1,402,343 | 554,832 | | Current | 46,224 | 61,223 | | Total | 1,448,567 | 616,055 | - Vista Argentina issued multiple new corporate bonds (ONs) in 2024, including ON XXIII, XXIV, XXV, XXVI, and XXVII, significantly increasing its long-term debt[128] - The company is subject to financial covenants, including a Net Leverage Ratio below 3.50 and an Interest Coverage ratio above 2.00, and was in compliance as of December 31, 2024[131][133] Note 17. Inventories Total inventories decreased slightly to $6.5 million, with a reduction in materials and spare parts offsetting an increase in crude oil stock Inventories (As of Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Crude oil stock | 4,384 | 2,664 | | Materials and spare parts | 2,082 | 4,651 | | Assigned crude oil stock | 3 | 234 | | Total | 6,469 | 7,549 | Note 18. Cash, bank balances and other short-term investments The company's cash and cash equivalents position strengthened significantly, increasing to $755.6 million at year-end 2024 Cash and Equivalents (As of Dec 31) | Component | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Cash in banks | 520,401 | 21,798 | | Money market funds | 119,841 | 35,292 | | Mutual funds | 115,368 | 152,426 | | Total Cash & Short-term Investments | 764,307 | 213,253 | | Cash and cash equivalents | 755,610 | 209,516 | Note 19. Equity Capital stock decreased due to a $99.8 million share repurchase and a $20.0 million capital reduction, while the repurchase reserve increased - The Board of Directors approved a reduction of the variable portion of the capital stock by $19,965 thousand to absorb accumulated losses on the company's nonconsolidated financial statements[172] - The company repurchased 2,081,198 shares for a total of $99,846 thousand during 2024[171] - On August 6, 2024, shareholders approved a $50,000 thousand increase to the share repurchase reserve, bringing the total to $129,324 thousand[177] Note 20. Provisions Total provisions increased to $37.0 million, primarily due to a rise in noncurrent provisions for well plugging and abandonment Provisions (As of Dec 31) | Category | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Noncurrent | 33,058 | 12,339 | | Current | 3,910 | 4,133 | | Total | 36,968 | 16,472 | Note 21-23. Other Current Liabilities Current liabilities for salaries, taxes, and trade payables increased significantly, reflecting the company's expanded operations Selected Current Liabilities (As of Dec 31) | Liability | 2024 (in thousands USD) | 2023 (in thousands USD) | | :--- | :--- | :--- | | Salaries and payroll taxes | 32,656 | 17,555 | | Other taxes and royalties | 47,715 | 36,549 | | Trade and other payables | 487,186 | 205,055 | Note 24. Employee benefits Net liabilities for long-term employee benefits increased to $16.0 million, mainly due to a $10.2 million loss from actuarial remeasurement Employee Benefits Net Liability Movement (Year Ended Dec 31, 2024) | Description | Amount (in thousands USD) | | :--- | :--- | | Net Liability at beginning of year | (5,703) | | P&L Items (Cost of interest/services) | (489) | | OCI Items (Actuarial remeasurement) | (10,200) | | Payment of contributions | 424 | | Net Liability at end of year | (15,968) | Note 25. Related parties' transactions and balances A new related party transaction in 2024 resulted in a $4.7 million advance to VMOS S.A. for the Vaca Muerta Sur pipeline project - As of December 31, 2024, the Company has an outstanding advance of $4,741 thousand to VMOS S.A. related to the Vaca Muerta Sur pipeline project[185] Note 26. Commitments and contingencies The company committed to pay $26.4 million for a 10-year extension of conventional exploitation concessions in the Province of Río Negro - The Province of Río Negro approved a 10-year extension for conventional exploitation concessions for Vista Argentina in the Entre Lomas, 25 de Mayo - Medanito S.E., and Jagüel de los Machos areas[188] - The extension requires Vista Argentina to pay the province $22.0 million for the extension and a $4.4 million contribution, which will be reimbursed by the operator, Aconcagua[189][190] Note 27. Tax regulations No significant changes in the tax regulations of Argentina and Mexico occurred during the year ended December 31, 2024 - No other significant changes in tax regulations occurred in Argentina or Mexico during the year, beyond what was disclosed in other notes[193] Note 28. Subsequent events Post year-end, the company engaged in significant financing activities, including new loans over $200 million and payments for pipeline projects - In January 2025, Vista Argentina made payments of $16.7 million to VMOS S.A. and $16.7 million to YPF for the VMOS and VMOC pipeline projects, respectively[194] - The company signed multiple new loan agreements in January and February 2025 with various banks, including Banco de la Nacion Argentina, Banco de Galicia, and Citibank, for significant short-term financing[194][197]