Financial Data and Key Metrics Changes - In 2024, the company's total oil and gas production averaged almost 34,000 barrels per day equivalent, a decrease of 7% compared to 2023 due to temporary production disruptions and natural declines in main fields in Colombia [4] - Full year 2024 adjusted EBITDA reached $416 million, representing an approximately 8% decrease compared to 2023, attributed to lower production and one-off financial expenses [8] - Net income for the year stood at $96.4 million, a 13% decline from 2023, primarily due to lower production, lower revenues, and a higher effective tax rate [8] - The company concluded the year with $276.8 million in cash and a net leverage of 0.9 times, well below the long-term target of under 1.5 times adjusted EBITDA [9] Business Line Data and Key Metrics Changes - The Vaca Muerta assets delivered approximately $25 million of EBITDA net to the company in the fourth quarter and around $100 million net on a full-year pro forma basis [5] - The production from the newly acquired unconventional hydrocarbon blocks in Vaca Muerta averaged over 15,000 barrels per day gross in Q4 2024, a 19% increase from Q3 2024 and nearly 50% higher than when the transaction was announced [4] Market Data and Key Metrics Changes - The company’s reserves at year-end 2024 reflected an upgrade and recalibration of the asset base through the acquisition in Argentina, with pro forma 2P reserves reaching over 160 million barrels, a 41% year-on-year increase [7] - The reserve life index extended to 13 years on a 2P basis, while 1P reserves of 102 million barrels extended the 1P reserve life index to 8.2 years [8] Company Strategy and Development Direction - The company aims to maximize the potential of its expanded asset base, focusing on enhancing recovery and field productivity through water flooding and polymer flooding projects in Colombia [11] - The strategy includes disciplined capital allocation and evaluating new growth opportunities to enhance scale and long-term value [12] - The company is actively monitoring M&A opportunities, particularly in Colombia, Argentina, and Brazil, while maintaining a focused strategy on large assets and basins [35][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational challenges and a lower oil price environment in 2024 but emphasized the ability to sustain cash generation capacity and deliver the highest annual shareholder cash return in the company's history [4] - Looking ahead to 2025, the company expects continued progress in production and exploration efforts, particularly in Vaca Muerta, with plans to drill additional wells [11][12] Other Important Information - The company declared a quarterly cash dividend of almost $0.15 per share, reinforcing its commitment to long-term value return [10] - The company was included in the S&P Sustainability Yearbook for the first time and maintained an AA rating in the MSCI index, highlighting its commitment to sustainability [10] Q&A Session Summary Question: Details on the USD 152 million recorded as customer advanced payment - The amount relates to a withdrawal made for funding the closing of the Argentina transaction, characterized as a prepayment of oil proceeds [14][15] Question: Why is the closing of the acquisition in Argentina taking longer than expected? - There is no specific pushback; the process is going through normal regulatory approvals, and the company is in constant communication with involved parties [17][18][20] Question: What is the net transportation capacity in the Duplica project? - Current capacity is around 6,800 barrels per day, expected to increase to 19,000 barrels per day with the project coming online [21][22] Question: At which price of Brent would the company consider revising CapEx? - The company tests capital allocation at $60 per barrel to ensure resilience against price volatility, with a mature hedging program in place [26][27][28] Question: How many drilling locations are considered in the reserves reported for Vaca Muerta assets? - Currently, there are 33 wells in Matamora and three in Confuencia, with 148 more wells to drill in Matamora [30][32] Question: What are the next steps in terms of possible M&A after the Repsol transaction did not work out? - The company is regularly monitoring M&A opportunities, focusing on disciplined and patient evaluation of potential deals [47][48] Question: Is the capital expenditure plan sufficient to mitigate declines in Colombia's production? - The capital allocation aims to arrest decline and pursue the best exploration prospects, transitioning from development drilling to well work activity [49][51][53]