Vista Energy(VIST) - 2024 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total production reached 72,800 BOEs per day, a 47% increase year-over-year and a 12% increase quarter-over-quarter [4][6] - Oil production was 63,500 barrels per day, reflecting a 53% year-over-year increase and an 11% quarter-over-quarter increase [4][6] - Total revenues for the quarter were $462 million, a 53$310 million, a 37% increase year-over-year, with an adjusted net income of $53 million, resulting in an adjusted EPS of$0.60 per share [5][9] - Free cash flow was negative at $74 million due to increased capital expenditures [11] Business Line Data and Key Metrics Changes - The company connected 12 new wells in Q3, totaling 40 new wells year-to-date, on track to meet the annual guidance of 50 to 54 new wells [6][13] - Lifting costs were$4.7 per BOE, down 2% year-over-year but up 5% sequentially due to increased costs in gathering and processing [9][10] Market Data and Key Metrics Changes - Realized oil prices averaged $68.4 per barrel, a 1$50 million share buyback plan, totaling 100 million for the year [14] - Management indicated that they are still engaged in the competitive process for Exxon's assets in Argentina, viewing them as valuable for future growth [35][36] Q&A Session Summary Question: CapEx increase despite similar well activity - Management confirmed that the increase in CapEx was due to drilling longer laterals and more frac stages, leading to higher expected peak production [17][18] Question: Future well delivery potential - Management indicated that with the new frac set, there is potential to exceed the guidance of 52 to 60 new wells in 2025 [21][22] Question: Production evolution into 2025 - Management projected an average production of 95,000 to 100,000 barrels per day in 2025, with an exit rate above 100,000 barrels per day [26][27] Question: Local vs. export pricing dynamics - Management expects the pricing dynamics to remain stable, with local prices aligning closely with export prices [31] Question: Update on Exxon sale process - Management confirmed continued engagement in the sale process for Exxon's assets, viewing them as strategically beneficial [35][36] Question: Midstream capacity and long-term goals - Management discussed ongoing expansion plans for midstream capacity, particularly the Oldelval expansion expected in early 2025 [44] Question: Trucking activity guidance for Q4 - Management forecasted trucking volumes to average around 23,000 barrels per day in Q4 [48] Question: Lifting costs expectations - Management maintained guidance of 4.5 per barrel for lifting costs, indicating confidence in managing costs despite recent increases [50] Question: Hedging strategy for oil prices - Management stated that current regulations do not allow for a hedging program, and they do not plan to implement one in the near future [54] Question: Flexibility in 2025 guidance - Management confirmed that they have flexibility in their work program to expand production if market conditions allow [56]