In This Article:
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Total Production: 72.8 Mboe per day, a 47% increase year over year and 12% quarter over quarter.
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Oil Production: 63.5 Mbbl per day, 53% above the same quarter last year and 11% up compared to the previous quarter.
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Total Revenues: $462 million, a 53% increase year over year.
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Lifting Cost: $4.7 per Boe, 2% down year over year.
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Capital Expenditure: $369 million, driven by 12 new wells drilled and 15 wells completed.
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Adjusted EBITDA: $310 million, a 37% increase year over year.
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Adjusted Net Income: $53 million, with an adjusted EPS of $0.6 per share.
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Free Cash Flow: $74 million negative, due to higher cash in investing activities.
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Net Leverage Ratio: 0.65 times Adjusted EBITDA at quarter end.
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Realized Oil Prices: $68.4 per barrel on average, 1% up annually.
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Export Oil Sales: 43.5 million barrels, 57% above the previous year.
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Adjusted EBITDA Margin: 65% during the quarter.
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Cash at End of Quarter: $256 million.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Vista Energy SAB de CV (NYSE:VIST) reported a strong operational and financial performance in Q3 2024, with total production reaching 72.8 Mboe per day, marking a 47% increase year over year.
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Oil production increased by 53% compared to the same quarter last year, reaching 63.5 Mbbl per day.
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Total revenues for the quarter were $462 million, a 53% increase year over year, driven by strong production growth.
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Adjusted EBITDA was $310 million, reflecting a 37% increase year over year, supported by robust revenue growth and lower lifting costs.
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The company has secured additional capacity for future growth, including a third rig and a second frac set, which provides flexibility for further expansion in 2025.
Negative Points
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Free cash flow was negative $74 million during the quarter, primarily due to higher cash used in investing activities as capital expenditures ramped up.
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Lifting costs per BOE increased by 5% sequentially, driven by higher costs in gathering, processing, gas compression, and power generation.
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The company is withdrawing its 2026 guidance, indicating uncertainty in long-term planning.
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Despite strong operational performance, the adjusted net income was relatively modest at $53 million, implying an adjusted EPS of $0.6 per share.
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The company faces challenges in managing oil price volatility, as current regulations do not allow for a hedging strategy.
Q & A Highlights
Q: Vista had a similar level of well drillings in completions in the third quarter versus the second quarter of 2024, but we saw a sharp rise in the capex. Are you drilling longer laterals with more frac stages? If so, what is the expected peak production for these wells compared to previous ones? A: Yes, the increase in capex is due to drilling longer laterals, around 3,200 meters compared to 2,800 meters previously. This results in higher costs, mainly from the increased number of completion stages. The expected ultimate recovery (EUR) for these wells is about 1.8 million barrels, compared to 1.5 million barrels for shorter laterals. This strategy is driven by subsurface conditions and improves net present value (NPV) and payoffs.