Vista Energy, S.A.B. de C.V. 6K Current report | VIST 23 Feb 23

Vista Energy, S.A.B. de C.V. (VIST) 6-KCurrent report (foreign)

Exhibit 1

LOGO

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021, and for the years and for the three-month periods ended December 31, 2022 and 2021

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021, and for the years and for the three-month periods ended December 31, 2022 and 2021

TABLE OF CONTENTS

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars)


	Notes	Year ended December 31, 2022			Year ended December 31, 2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Revenue from contracts with customers	4		1,143,820			652,187			308,105			196,004
Cost of sales:
Operating costs	5.1		(133,385	)		(107,123	)		(36,113	)		(30,311	)
Crude oil stock fluctuation	5.2		(500	)		(905	)		4,722			(1,362	)
Depreciation, depletion and amortization	12/13/14		(234,862	)		(191,313	)		(63,148	)		(46,886	)
Royalties			(144,837	)		(86,241	)		(39,410	)		(25,858	)

Gross profit			630,236			266,605			174,156			91,587

Selling expenses	6		(59,904	)		(42,748	)		(18,847	)		(11,865	)
General and administrative expenses	7		(63,826	)		(45,858	)		(19,615	)		(14,764	)
Exploration expenses	8		(736	)		(561	)		(169	)		(124	)
Other operating income	9.1		26,698			23,285			3,715			5,477
Other operating expenses	9.2		(3,321	)		(4,214	)		(715	)		(2,317	)
Reversal of impairment of long- lived assets	2.4.2		—			14,044			—			14,044

Operating profit			529,147			210,553			138,525			82,038

Interest income	10.1		809			65			425			23
Interest expense	10.2		(28,886	)		(50,660	)		(6,545	)		(9,330	)
Other financial income (expense)	10.3		(67,556	)		(7,194	)		(23,729	)		(1,013	)

Financial income (expense), net			(95,633	)		(57,789	)		(29,849	)		(10,320	)

Profit before income tax			433,514			152,764			108,676			71,718

Current income tax (expense) benefit	15		(92,089	)		(62,419	)		54,560			(15,162	)
Deferred income tax (expense)	15		(71,890	)		(39,695	)		(87,732	)		(21,001	)

Income tax (expense)			(163,979	)		(102,114	)		(33,172	)		(36,163	)

Profit for the year / period, net			269,535			50,650			75,504			35,555

Other comprehensive income
Other comprehensive income that shall not be reclassified to profit or loss in subsequent periods
- (Loss) from actuarial remediation related to employee benefits	25		(4,181	)		(4,513	)		(974	)		(1,463	)
- Deferred income tax benefit	15		1,463			2,048			341			512

Other comprehensive income that shall not be reclassified to profit (loss) in subsequent periods, net of taxes			(2,718	)		(2,465	)		(633	)		(951	)

Total comprehensive profit for the year / period			266,817			48,185			74,871			34,604

Earnings per share
Basic (in US dollars per share)	11		3.068			0.574			0.861			0.402
Diluted (in US dollars per share)	11		2.755			0.543			0.762			0.374

Notes 1 through 29 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statements of financial position as of December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars)


	Notes		As of December 31, 2022			As of December 31, 2021
Assets
Noncurrent assets
Property, plant and equipment		12		1,606,339			1,223,982
Goodwill		13		28,288			28,416
Other intangible assets		13		6,792			3,878
Right-of-use assets		14		26,228			26,454
Investments in associates				6,443			2,977
Trade and other receivables		16		15,864			20,210
Deferred income tax assets				335			2,771

Total noncurrent assets				1,690,289			1,308,688

Current assets
Inventories		18		12,899			13,961
Trade and other receivables		16		90,406			46,096
Cash, bank balances and other short-term investments		19		244,385			315,013

Total current assets				347,690			375,070

Total assets				2,037,979			1,683,758

Equity and liabilities
Equity
Capital stock		20.1		517,873			586,706
Other equity instruments		20.1		32,144			—
Legal reserve		20.2		2,603			—
Share-based payments				40,744			31,601
Share repurchase reserve		20.2		49,465			—
Other accumulated comprehensive income (losses)				(8,694	)		(5,976	)
Accumulated profit (losses)				209,925			(47,072	)

Total equity				844,060			565,259

Liabilities
Noncurrent liabilities
Deferred income tax liabilities				243,411			175,420
Lease liabilities		14		20,644			19,408
Provisions		21		31,668			29,657
Borrowings		17.1		477,601			447,751
Warrants		17.4		—			2,544
Employee benefits		25		12,251			7,822
Trade and other payables		24		—			50,159

Total noncurrent liabilities				785,575			732,761

Current liabilities
Provisions		21		2,848			2,880
Lease liabilities		14		8,550			7,666
Borrowings		17.1		71,731			163,222
Salaries and payroll taxes		22		25,120			17,491
Income tax liability				58,770			44,625
Other taxes and royalties		23		20,312			11,372
Trade and other payables		24		221,013			138,482

Total current liabilities				408,344			385,738

Total liabilities				1,193,919			1,118,499

Total equity and liabilities				2,037,979			1,683,758

Notes 1 through 29 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statement of changes in equity for the year ended December 31, 2022

(Amounts expressed in thousands of US Dollars)


	Capital stock			Other equity instruments			Legal reserve		Share-based payments			Share repurchase reserve		Other accumulated comprehensive income (losses)			Accumulated profit (losses)			Total equity
Amounts as of December 31, 2021		586,706			—			—		31,601			—		(5,976	)		(47,072	)		565,259

Profit for the year		—			—			—		—			—		—			269,535			269,535
Other comprehensive income for the year		—			—			—		—			—		(2,718	)		—			(2,718	)

Total comprehensive income		—			—			—		—			—		(2,718	)		269,535			266,817

Ordinary and Extraordinary General Shareholders’ meeting on April 26, 2022 ⁽¹⁾:
Creation of legal reserve		—			—			1,255		—			—		—			(1,255	)		—
Creation of share repurchase reserve		—			—			—		—			23,840		—			(23,840	)		—
Board of Directors’ meeting on September 27, 2022 ⁽¹⁾:
Reduction of capital stock		(39,530	)		—			—		—			—		—			39,530			—
Warrant Holders’ meeting on October 4, 2022 ⁽¹⁾:
Cashless exercises of warrant		—			32,144	⁽²⁾		—		—			—		—			—			32,144
Ordinary and General Shareholders’ meeting on December 7, 2022 ⁽¹⁾:
Creation of legal reserve		—			—			1,348		—			—		—			(1,348	)		—
Creation of share repurchase reserve		—			—			—		—			25,625		—			(25,625	)		—
Share repurchase ⁽¹⁾		(29,304	)		—			—		—			—		—			—			(29,304	)
Share-based payments		1			—			—		9,143	⁽³⁾		—		—			—			9,144

Amounts as of December 31, 2022		517,873			32,144			2,603		40,744			49,465		(8,694	)		209,925			844,060

⁽¹⁾	See Note 20.

⁽²⁾	Including 32,894 of cashless exercise of warrant (Note 17.4.1.1). net of 750 related to expenses.

⁽³⁾	Including 16,576 share-based payment expenses (Note 7), net of tax charges.

Notes 1 through 29 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statement of changes in equity for the year ended December 31, 2021

(Amounts expressed in thousands of US Dollars)


	Capital stock			Share-based payments			Other accumulated comprehensive income (losses)			Accumulated profit (losses)			Total equity
Amounts as of December 31, 2020		659,400			23,046			(3,511	)		(170,417	)		508,518

Profit for the year		—			—			—			50,650			50,650
Other comprehensive income for the year		—			—			(2,465	)		—			(2,465	)

Total comprehensive income		—			—			(2,465	)		50,650			48,185

Ordinary and General Shareholders’ meeting on December 14, 2021 ⁽¹⁾:
Reduction of capital stock		(72,695	)		—			—			72,695			—
Share-based payments		1			8,555	⁽²⁾		—			—			8,556

Amounts as of December 31, 2021		586,706			31,601			(5,976	)		(47,072	)		565,259

⁽¹⁾	See Note 20.

⁽²⁾	Including 10,592 share-based payment expenses (Note 7), net of tax charges.

Notes 1 through 29 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statements of cash flows for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars)


	Notes		Year ended December 31, 2022			Year ended December 31, 2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Cash flows from operating activities:
Profit for the year / period, net				269,535			50,650			75,504			35,555
Adjustments to reconcile net cash flows
Items related to operating activities:
(Reversal of) allowance for expected credit losses		6		(36	)		406			—			406
Net changes in foreign exchange rate		10.3		(33,263	)		(14,328	)		6,597			(3,587	)
Discount for well plugging and abandonment		10.3		2,444			2,546			619			738
Net increase in provisions		9.2		2,790			1,930			715			698
Interest expense on lease liabilities		10.3		1,925			1,079			360			324
Discount of assets and liabilities at present value		10.3		2,561			2,300			(2,229	)		4,958
Share-based payments		7		16,576			10,592			4,800			2,494
Employee benefits		25		502			247			143			84
Income tax expense		15		163,979			102,114			33,172			36,163
Items related to investing activities:
Depreciation and depletion		12/14		231,746			187,858			62,376			46,076
Amortization of intangible assets		13		3,116			3,455			772			810
(Reversal) of impairment of long-lived assets		2.4.2		—			(14,044	)		—			(14,044	)
Interest income		10.1		(809	)		(65	)		(425	)		(23	)
Gain from farmout agreement		9.1		(18,218	)		(9,050	)		—			(4,525	)
Changes in the fair value of financial assets		10.3		17,599			(5,061	)		(528	)		1,198
Gain from assets disposal		9.1		—			(9,999	)		—			—
Items related to financing activities:
Interest expense		10.2		28,886			50,660			6,545			9,330
Changes in the fair value of warrants		10.3		30,350			2,182			7,762			(7,096	)
Amortized cost		10.3		2,365			4,164			827			630
Remeasurement in borrowings		10.3		52,817			19,163			15,148			7,144
Other financial results		10.3		2,515			—			2,515			—
Changes in working capital:
Trade and other receivables				(46,272	)		7,475			9,696			18,706
Inventories		5.2		500			905			(4,722	)		1,362
Trade and other payables				40,183			16,209			18,978			(2,528	)
Payments of employee benefits		25		(254	)		(399	)		(68	)		(64	)
Salaries and payroll taxes				2,877			3,929			5,289			4,480
Other taxes and royalties				(8,024	)		(7,311	)		(15,569	)		1,926
Provisions				(2,265	)		(1,918	)		(510	)		(1,501	)
Income tax payment				(74,354	)		(4,296	)		(12,397	)		(866	)

Net cash flows provided by operating activities				689,771			401,393			215,370			138,848

Cash flows from investing activities:
Payments for acquisitions of property, plant and equipment				(479,361	)		(321,286	)		(148,613	)		(79,656	)
Payments for the acquisition of AFBN assets		1.2.1		(115,000	)		—			(6,250	)		—
Payments received from farmout agreement		9.1		20,000			10,000			—			5,000
Payments for acquisitions of other intangible assets		13		(6,030	)		(1,611	)		(3,374	)		(502	)
Proceeds from disposal of oil and gas properties ⁽¹⁾				—			14,150			—			—
Payments for acquisitions of investments in associates				(3,466	)		(2,977	)		(744	)		(900	)
Cash received by AFBN assets acquisition ⁽²⁾				—			6,203			—			—
Interest received		10.1		809			65			425			23
Proceeds from disposal of other financial assets				336			—			336			—

Net cash flows (used in) investing activities				(582,712	)		(295,456	)		(158,220	)		(76,035	)

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statements of cash flows for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars)


	Notes		Year ended December 31, 2022			Year ended December 31, 2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Cash flows from financing activities:
Proceeds from borrowings		17.2		128,788			358,093			52,618			—
Payment of borrowings cost		17.2		(1,670	)		(3,326	)		(1,086	)		—
Payment of borrowings principal		17.2		(195,091	)		(284,695	)		(30,096	)		(1,593	)
Payment of borrowings interest		17.2		(34,430	)		(54,636	)		(4,238	)		(3,748	)
Payment of lease		14		(11,494	)		(8,911	)		(2,892	)		(2,788	)
Share repurchase		20.1		(29,304	)		—			(5,500	)		—

Net cash flow (used in) provided by financing activities				(143,201	)		6,525			8,806			(8,129	)

Net (decrease) increase in cash and cash equivalents				(36,142	)		112,462			65,956			54,684
Cash and cash equivalents at beginning of year /period		19		311,217			201,314			180,793			261,424
Effect of exposure to changes in the foreign currency rate of cash and cash equivalents				(33,119	)		(2,559	)		(4,793	)		(4,891	)
Net (decrease) increase in cash and cash equivalents				(36,142	)		112,462			65,956			54,684

Cash and cash equivalents at end of year / period		19		241,956			311,217			241,956			311,217

Significant transactions that generated no cash flows
Acquisition of property, plant and equipment through increase in trade and other payables				138,543			80,321			138,543			80,321
Changes in well plugging and abandonment with an impact in property, plant and equipment		12		(713	)		2,112			3,433			3,899
AFBN assets acquisition ⁽²⁾				—			69,693			—			—
Acquisition of Mexico’s exploration assets ⁽³⁾				—			6,174			—			—
Disposal of Mexico’s exploration assets ⁽³⁾				—			(5,126	)		—			—

⁽¹⁾	Including 15,000 received from the transfer of the working interest in the Coirón Amargo Sur Oeste concession (“CASO”) net of 850 payments related to Mexico exploratory assets transfer. (See Note 1.3 and 1.4 to the annual consolidated financial statements as of December 31, 2021).

⁽²⁾	Related to acquisition of 50% non-operating working interest in the unconventional concessions of Aguada Federal and Bandurria Norte. (See Note 1.5 and 13 to the annual consolidated financial statements as of December 31, 2021).

⁽³⁾	Related to transfer of assets in Mexico to increase working interest to 100% in the CS-01 operated area (See Note 1.4, 13 and 14 to the annual consolidated financial statements as of December 31, 2021).

Notes 1 through 29 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 1. Group information

1.1 Company general information, structure and activities

Vista Energy, S.A.B. de C.V. (“VISTA”, the “Company” or the “Group”), formerly known as Vista Oil & Gas, S.A.B. de C.V., was organized as a variable-capital stock company on March 22, 2017, under the laws of the United Mexican States (“Mexico”). The Company adopted the public corporation or “Sociedad Anónima Bursátil de Capital Variable” (“S.A.B. de C.V.”) on July 28, 2017.

It is listed on the New York Stock Exchange (“NYSE”) under ticker symbol “VIST” as from July 26, 2019.

On April 26, 2022, Vista Oil & Gas, S.A.B. de C.V. changed the Company’s corporate name to “Vista Energy, S.A.B. de C.V.”.

Its main office is located in the City of Mexico, Mexico, at Pedregal 24, floor 4, Colonia Molino del Rey, Alcaldía Miguel Hidalgo, zip code 11040.

Through its subsidiaries, the Company engages in oil and gas exploration and production (upstream segment).

These unaudited interim condensed consolidated financial statements were approved for publication by the Board of Directors on February 23, 2023.

Other than mentioned in Note 1.2 there were no changes in the Group’s structure and activities as from the date of issuance of the annual consolidated financial statements as of December 31, 2021.

1.2 Significant transactions for the period

1.2.1 Acquisition of 50% of operated working interest in the unconventional concessions of Aguada Federal and Bandurria Norte in Vaca Muerta (“acquisition of AFBN assets”)

On January 17, 2022, the Company, through its subsidiary Vista Energy Argentina S.A.U, formerly known as Vista Oil & Gas Argentina S.A.U (“Vista Argentina”), acquired a 50% operated working interest in the Aguada Federal and Bandurria Norte concessions (“the Assets”), from Wintershall DEA Argentina S.A. (“Wintershall”).

Vista agreed to pay a purchase price of 140,000, of which 90,000 was paid on the date of the transaction, and the remaining 50,000 will be payable in 8 (eight) equal quarterly instalments starting on April 2022. During the year ended December 31, 2022, Vista paid to Wintershall, 4 (four) equal instalments of 6,250, and the liabilities related to such transaction stand at 23,880, recognized at present value (see Note 24).

As result of this transaction, Vista recognized an addition of 68,743 in “Property, plant and equipment” (see Note 12), and the transaction effectively cancels the carry consideration of 77,000 the Company had assumed on September 16, 2021.

The effective date of the transaction was January 1, 2022. On September 14, 2022, the Province of Neuquén issued Presidential Decrees No. 1,851/22 and No. 1,852/22 approving the assignment by Wintershall to Vista Argentina of the assets located in the Bandurria Norte and Aguada Federal areas, respectively.

1.2.2 Joint investment agreement (“farmout agreement II”) signed with Trafigura Argentina S.A. (“Trafigura”) in Bajada del Palo Oeste area

On October 11, 2022, the Company, through its subsidiary Vista Argentina entered into a second farmout agreement with Trafigura, whereby it undertook to develop 3 (three) pads in Bajada del Palo Oeste area.

By virtue of the farmout agreement II, a joint venture was established and Trafigura was entitled to contractual rights for 25% of hydrocarbon output in the pads under the agreement and bear 25% of investment costs, as well as royalties and direct taxes. As part of the farmout agreement II, Trafigura agreed to pay to Vista Argentina 1,700 for each tied-in well (equivalent to 6,800 for a 4-well pad). As of December 31, 2022, no wells have been connected

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Vista Argentina maintains the operation in Bajada del Palo Oeste and 100% of the ownership. It also maintains its rights over 75% of hydrocarbon output in relation to the pads included in the farmout agreement II, and bear 75% of investment costs, as well as royalties, direct taxes and remainder operating and midstream costs.

The effective date of the transaction was October 1, 2022.

Note 2. Basis of preparation and significant accounting policies

2.1 Bases of preparation and presentation

The unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021, and for the years and for the three-month periods ended December 31, 2022 and 2021 were prepared in accordance with the International Accounting Standard (“IAS”) 34 – “Interim Financial Reporting”, issued by the International Accounting Standards Board (“IASB”). The Company prepared its interim financial statements on a condensed basis pursuant to IAS 34. Certain explanatory notes are included to describe the events and transactions that are relevant to understand the changes in the financial position as of December 31, 2022, and the results of operations for the year ended December 31, 2022. Therefore, these interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read together with the Company’s annual consolidated financial statements as of December 31, 2021.

These unaudited interim condensed consolidated financial statements were prepared using the same accounting policies as used in preparing the Company’s consolidated financial statements as of December 31, 2021.

They were prepared on a historical cost basis, except for certain financial assets and liabilities that were measured at fair value. The figures contained herein are stated in US Dollars (“USD”) and are rounded to the nearest thousand, unless otherwise stated.

2.2 New effective accounting standards, amendments and interpretations issued by the IASB adopted by the Company

The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

2.3 Basis of consolidation

These unaudited interim condensed consolidated financial statements contain the financial statements of the Company and its subsidiaries. Other than the transactions mentioned in Note 1.2 there were no changes in interest in Company subsidiaries during the year ended December 31, 2022.

2.4 Summary of significant accounting policies

2.4.1 Going concern

The Board oversees the Group’s cash position regularly and liquidity risk throughout the year to ensure that there are sufficient funds to meet expected financing, operating and investing requirements. Sensitivity tests are conducted to disclose the latest expense expectations, oil and gas prices and other factors so that the Group may manage risk.

Considering the macroeconomic context, the result of operations and the Group’s cash position, as of December 31, 2022 and 2021, the Directors asserted, upon approving the financial statements, that the Group may reasonably be expected to fulfill its obligations in the foreseeable future. Therefore, these interim condensed consolidated financial statements were prepared on a going concern basis.

2.4.2 Impairment testing of goodwill and nonfinancial assets other than goodwill

Nonfinancial assets, including identifiable intangible assets, are tested for impairment at the lowest level in which there are separately identifiable cash flows largely independent of the cash flows of other groups of assets or Cash Generated Units (“CGUs”). To such end, oil and gas properties in Argentina were grouped into 3 (three) CGUs: (i) operated concessions of conventional oil and gas exploration and production; (ii) operated concessions of unconventional oil and gas exploration and production; and (iii) non-operating concessions of conventional oil and gas exploration and production. The Company also identified just 1 (one) CGU in Mexico: (i) operated concessions of conventional oil and gas exploration and production.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

The Company conducts its impairment test of nonfinancial assets when there is an indication that the carrying amount may be impaired. Moreover, Goodwill is tested every December. The Company bases the impairment test on the calculation of value in use and reviews the relationship between the recoverable amount and the carrying amount of its assets.

As of December 31, 2021, the Company recognized a reversal for 14,044 related to the CGU of operated concessions of conventional oil and gas exploration and production in Mexico, mainly driven by an increase in estimated recoverable volumes and an increase in oil and prices.

As of December 31, 2022 the Company did not identify indications of impairment related with goodwill and nonfinancial assets other than goodwill.

Main assumptions used

The Company’s calculation of the value in use related to the aforementioned CGUs is more sensitive to the following assumptions:


	As of December 31, 2022						As of December 31, 2021
	Argentina			Mexico			Argentina			Mexico
Discount rates (after taxes)		11.9	%		7.9	%		10.4	%		6.1	%
Discount rates (before taxes)		18.7	%		11.6	%		16.6	%		10.0	%
Prices of crude oil, Liquefied Petroleum Gas (“LPG”) and natural gas
Crude oil (USD/bbl.) ⁽¹⁾
2022		—			—			73.0			65.8
2023		80.3			72.2			70.1			63.0
2024		92.8			88.3			70.5			63.5
2025		84.0			79.9			65.9			58.9
As from 2026		79.3			78.3			64.6			58.9
Natural gas - local prices (USD/MMBTU) ⁽²⁾
As from		3.9			3.0			3.3			3.0
LPG – local prices (USD/tn.)
As from		250.4			—			300			—

⁽¹⁾	The prices correspond to Brent and Maya, for Argentina and Mexico, respectively.

⁽²⁾	Millions of British Themal Unit (“MMBTU”).

2.5 Regulatory framework

A-	Argentina

2.5.1 Gas market

2.5.1.1 Argentine promotion plan to stimulate natural gas production: 2020-2024 supply and demand system (“Gas IV Plan”)

On November 13, 2020, through Presidential Decree No. 892/2020, the Argentine Executive approved Gas IV Plan, whereby it declared that the promotion of natural gas production is both a matter of public interest and a priority.

Moreover, through Presidential Decree No. 730/2022 of November 3, 2022, the Argentine government replaced Presidential Decree No. 892/2020, thus extending the term of the Gas IV Plan through December 31, 2028.

On December 15, 2020, through Resolution No. 391/2020, the Department of Energy awarded volumes and prices, for which the Company entered into agreements with Compañía Administradora del Mercado Mayorista Eléctrico SA (“CAMMESA”), Integración Energética Argentina S.A (“IEASA”) and other distribution licensees or subdistributors to supply natural gas for electric power generation and residential consumption, respectively.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

The Company, through its subsidiary Vista Argentina, was awarded a base volume of 0.86 Mcm/day at an average price of 3.29 USD/MMBTU for a four-year period as from January 1, 2021, which was extended through December 31, 2028, by Resolution No. 860/2022 of December 22, 2022.

In 2022, the Company was granted a permit by the Department of Energy to export natural gas to Chile according to the following volumes:

(i)	0.15 Mcm/day for the period elapsed from January through April 2022;

(ii)	a variable volume for May through September 2022, and

(iii)

0.45 Mcm/day for the period elapsed from October 2022 through April 2023.

The Company exported a total of 51.4 Mcm to Chile during the year ended December 31, 2022.

For the years ended December 31, 2022 and 2021, the Company received a net amount of 3,149 and 3,660, respectively.

As of December 31, 2022 and 2021, the receivables related to such plan stand at 3,772 and 1,729, respectively (see Note 16).

Other than mentioned above, there have been no significant changes in Argentina’s regulatory framework for the year ended December 31, 2022 (see Note 2.5 to the annual consolidated financial statements as of December 31, 2021).

B-	Mexico

There have been no significant changes in Mexico’s regulatory framework during the year ended December 31, 2022 (see Note 2.5 to the annual consolidated financial statements as of December 31, 2021).

Note 3. Segment information

The Chief Operating Decision Maker (the “Committee” or “CODM”) is in charge of allocating resources and assessing the performance of the operating segment. It supervises operating profit (loss) and the performance of the indicators related to its oil and gas properties on an aggregate basis to make decisions regarding the location of resources, negotiate with international suppliers and determine the method for managing contracts with customers.

The CODM considers as a single segment the exploration and production of crude oil, natural gas and LPG (including E&P commercial activities), through its own activities, subsidiaries and interests in joint operations and based on the nature of the business, customer portfolio and risks involved. The Company aggregated no segment as it has only one.

For the years ended December 31, 2022 and 2021, the Company generated 99% and 1% of its revenues related to assets located in Argentina and Mexico, respectively.

The accounting criteria used by the subsidiaries to measure profit or loss, assets and liabilities of the segments are consistent with those used in these unaudited interim condensed consolidated financial statements.

The following chart summarizes noncurrent assets per geographical area:


	As of December 31, 2022		As of December 31, 2021
Argentina		1,638,973		1,260,851
Mexico		51,316		47,837

Total noncurrent assets		1,690,289		1,308,688

Note 4. Revenue from contracts with customers

Year ended
December 31, 2022

Year ended
December 31, 2021

Period from
October 1 through
December 31, 2022

Period from
October 1 through
December 31, 2021

Goods sold

1,143,820

652,187

308,105

196,004

Total revenue from contracts with customers

1,143,820

652,187

308,105

196,004

Recognized at a point in time

1,143,820

652,187

308,105

196,004

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

4.1 Information broken down by revenue from contracts with customers


Type of products	Year ended December 31, 2022		Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Revenues from crude oil sales		1,067,997		593,060		285,365		182,088
Revenues from natural gas sales		70,237		54,301		21,171		12,244
Revenues from LPG sales		5,586		4,826		1,569		1,672

Total revenue from contracts with customers		1,143,820		652,187		308,105		196,004


Distribution channels	Year ended December 31, 2022		Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Exports from crude oil		559,563		182,156		159,864		70,545
Refineries		508,434		410,904		125,501		111,543
Industries		20,093		17,320		6,421		4,291
Retail natural gas distribution companies		18,829		18,351		2,599		2,736
Natural gas for electric power generation		16,210		18,461		1,323		5,048
Exports from natural gas		15,105		169		10,828		169
LPG sales		5,586		4,826		1,569		1,672

Total revenue from contracts with customers		1,143,820		652,187		308,105		196,004

Note 5. Cost of sales

5.1 Operating costs


	Year ended December 31, 2022		Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Fees and compensation for services		66,155		53,024		18,349		13,176
Salaries and payroll taxes		22,344		16,591		6,545		5,729
Consumption of materials and spare parts		16,824		15,912		3,672		5,283
Easements and fees		11,427		9,572		2,295		2,561
Employee benefits		6,481		4,877		2,063		1,437
Transport		5,963		3,274		2,058		1,069
Other		4,191		3,873		1,131		1,056

Total operating costs		133,385		107,123		36,113		30,311

5.2 Crude oil stock fluctuation


	Year ended December 31, 2022			Year ended December 31, 2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Crude oil stock at beginning of year / period (Note18)		5,222			6,127			—			6,584
Less: Crude oil stock at end of year / period (Note 18)		(4,722	)		(5,222	)		(4,722	)		(5,222	)

Total crude oil stock fluctuation		500			905			(4,722	)		1,362

Note 6. Selling expenses


	Year ended December 31, 2022			Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Transport		28,686			19,554		11,745		5,509
Taxes, rates and contributions		16,522			13,921		4,008		3,427
Tax on bank account transactions		9,595			6,061		2,637		1,592
Fees and compensation for services		5,137			2,806		457		931
(Reversal of) allowances for expected credit losses		(36	)		406		—		406

Total selling expenses		59,904			42,748		18,847		11,865

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 7. General and administrative expenses


	Year ended December 31, 2022		Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Salaries and payroll taxes		27,178		20,242		7,830		6,187
Share-based payments		16,576		10,592		4,800		2,494
Fees and compensation for services		9,848		7,412		2,728		2,700
Employee benefits		3,360		2,124		1,147		647
Institutional promotion and advertising		2,066		2,237		710		1,014
Taxes, rates and contributions		1,859		1,311		1,045		925
Other		2,939		1,940		1,355		797

Total general and administrative expenses		63,826		45,858		19,615		14,764

Note 8. Exploration expenses

Year ended
December 31, 2022

Year ended
December 31, 2021

Period from
October 1 through
December 31, 2022

Period from
October 1 through
December 31, 2021

Geological and geophysical expenses

736

561

169

124

Total exploration expenses

736

561

169

124

Note 9. Other operating income and expenses

9.1 Other operating income


	Year ended December 31, 2022		Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Gain from farmout agreement ⁽¹⁾		18,218		9,050		—		4,525
Other services charges ⁽²⁾		8,480		4,236		3,715		952
Gain from assets disposal⁽³⁾		—		9,999		—		—

Total other operating income		26,698		23,285		3,715		5,477

⁽¹⁾

For the years ended December 31, 2022 and 2021, including 20,000 and 10,000 of payments received by Trafigura, related to the farmout agreement celebrated on June 28, 2021 (“farmout agreement I”), net of disposals of oil and gas properties and goodwill for 1,654 and 882, and 128 and 68, respectively. See Note 12 and 13. (See Note 1.2 to the Company’s annual consolidated financial statements as of December 31, 2021).

⁽²⁾	Services not directly related to the Company’s main activity.

⁽³⁾

For the year ended December 31, 2021 including: (i) 9,788 related to the transfer of the working interest in CASO; (ii) 198 related to Mexico exploratory assets transfer and; (iii) 13 related to the expiration of Sur Rio Deseado Este exploitation concession. (See Note 1.3, 1.4 and 30.3.9 to the annual consolidated financial statements as of December 31, 2021).

9.2 Other operating expenses


	Year ended December 31, 2022			Year ended December 31, 2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Provision for environmental remediation ⁽¹⁾		(2,133	)		(1,029	)		(702	)		(454	)
Restructuring and reorganization expenses ⁽²⁾		(531	)		(2,284	)		—			(1,619	)
Provision for contingencies ⁽¹⁾		(379	)		(652	)		(77	)		(278	)
Provision for materials and spare parts obsolescence ⁽¹⁾		(278	)		(249	)		64			34

Total other operating expenses		(3,321	)		(4,214	)		(715	)		(2,317	)

⁽¹⁾	These transactions did not generate cash flows.

⁽²⁾	The Company booked restructuring expenses including payments, fees and transaction costs related to the changes in the Group’s structure.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 10. Financial income (expense), net

10.1 Interest income


	Year ended December 31, 2022		Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Financial interest		809		65		425		23

Total interest income		809		65		425		23

10.2 Interest expense


	Year ended December 31, 2022			Year ended December 31, 2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Borrowings interest (Note 17.2)		(28,886	)		(50,660	)		(6,545	)		(9,330	)

Total interest expense		(28,886	)		(50,660	)		(6,545	)		(9,330	)

10.3 Other financial income (expense)


	Year ended December 31, 2022			Year ended December 31, 2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Amortized cost (Note 17.2)		(2,365	)		(4,164	)		(827	)		(630	)
Changes in the fair value of warrants (Note 17.4.1.1)		(30,350	)		(2,182	)		(7,762	)		7,096
Net changes in foreign exchange rate		33,263			14,328			(6,597	)		3,587
Discount of assets and liabilities at present value		(2,561	)		(2,300	)		2,229			(4,958	)
Changes in the fair value of financial assets		(17,599	)		5,061			528			(1,198	)
Interest expense on lease liabilities (Note 14)		(1,925	)		(1,079	)		(360	)		(324	)
Discount for well plugging and abandonment		(2,444	)		(2,546	)		(619	)		(738	)
Remeasurement in borrowings ⁽¹⁾		(52,817	)		(19,163	)		(15,148	)		(7,144	)
Other ⁽²⁾		9,242			4,851			4,827			3,296

Total other financial income (expense)		(67,556	)		(7,194	)		(23,729	)		(1,013	)

⁽¹⁾	Related to borrowings in purchasing value units (“UVA”, by Spanish acronym) adjusted by the benchmark stabilization coefficient (“CER”, by its Spanish acronym). See Note 17.2.

⁽²⁾	Including 2,515 from loss for negotiable obligations (“ON” by its Spanish acronym) swapping. See Notes 17.1 and 17.2.

Note 11. Earnings per share

Basic

Basic earnings per share is calculated by dividing the Company’s profit by the weighted average number of ordinary shares outstanding during the year / period.

b)	Diluted

Diluted earnings per share is calculated by dividing the Company’s profit by the weighted average number of ordinary shares outstanding during the year / period, plus the weighted average of dilutive potential ordinary shares.

Potential ordinary shares will be considered dilutive when their conversion to ordinary shares may reduce earnings per share or increase losses per share. They will be considered antidilutive when their conversion to ordinary shares may result in an increase in earnings per share or a reduction in loss per share.

The calculation of diluted earnings per share does not involve a conversion; the exercise or other issue of shares that may have an antidilutive effect on loss per share, or when the exercise price is higher than the average price of ordinary shares during the period, no dilution effect is booked, as diluted earnings per share is equal to basic earnings per share.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)


	Year ended December 31, 2022		Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Profit for the year / period, net		269,535		50,650		75,504		35,555
Weighted average number of ordinary shares		87,862,531		88,242,621		87,664,094		88,473,206

Basic earnings per share		3.068		0.574		0.861		0.402


	Year ended December 31, 2022		Year ended December 31, 2021		Period from October 1 through December 31, 2022		Period from October 1 through December 31, 2021
Profit for the year / period, net		269,535		50,650		75,504		35,555
Weighted average number of ordinary shares		97,830,538		93,273,978		99,147,328		95,190,469

Diluted earnings per share		2.755		0.543		0.762		0.374

As of December 31, 2022, the Company holds the following ordinary shares that, on the date of this unaudited interim condensed consolidated financial statements, are currently out of the money. Consequently, they are not included in the weighted average number of ordinary shares to calculate diluted earnings per share: (i) 4,854,408 Series A shares to be used in the Long-Term Incentive Plan (“LTIP”).

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 12. Property, plant and equipment

The changes in property, plant and equipment for the year ended December 31, 2022 are as follows:


	Land and buildings			Vehicles, machinery, facilities, computer hardware and furniture and fixtures			Oil and gas properties				Production wells and facilities			Works in progress			Materials and spare parts			Total
Cost
Amounts as of December 31, 2021		2,709			23,070			446,291				1,174,699			91,245			27,796			1,765,810
Additions		8,550			285			—				—			433,942			97,243			540,020
Transfers		—			20,171			—				433,909			(371,239	)		(82,841	)		—
Disposals		(465	)		(4	)		(1,870	)	⁽¹⁾		(713	) ⁽²⁾		—			(240	)		(3,292	)
Incorporation for the acquisition of AFBN assets		—			—			68,743		⁽³⁾		—			—			—			68,743

Amounts as of December 31, 2022		10,794			43,522			513,164				1,607,895			153,948			41,958			2,371,281

Accumulated depreciation
Amounts as of December 31, 2021		(294	)		(10,834	)		(53,623	)			(477,077	)		—			—			(541,828	)
Depreciation		(17	)		(4,756	)		(14,540	)			(204,031	)		—			—			(223,344	)
Disposals		11			3			216		⁽¹⁾		—			—			—			230

Amounts as of December 31, 2022		(300	)		(15,587	)		(67,947	)			(681,108	)		—			—			(764,942	)

Net value
Amounts as of December 31, 2022		10,494			27,935			445,217				926,787			153,948			41,958			1,606,339

Amounts as of December 31, 2021		2,415			12,236			392,668				697,622			91,245			27,796			1,223,982

⁽¹⁾	See Note 9.1.

⁽²⁾	Related to the re-estimation of well plugging and abandonment. This transaction did not generate cash flows.

⁽³⁾	See Note 1.2.1.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 13. Goodwill and other intangible assets

Below are the changes in goodwill and other intangible assets for the year ended December 31, 2022:


	Goodwill			Other intangible assets
Cost
Amounts as of December 31, 2021		28,416			12,216
Additions		—			6,030
Disposals ⁽¹⁾		(128	)		—

Amounts as of December 31, 2022		28,288			18,246

Accumulated amortization
Amounts as of December 31, 2021		—			(8,338	)
Amortization		—			(3,116	)

Amounts as of December 31, 2022		—			(11,454	)

Net value
Amounts as of December 31, 2022		28,288			6,792

Amounts as of December 31, 2021		28,416			3,878

⁽¹⁾	See Note 9.1.

Note 14. Right-of-use assets and lease liabilities

The carrying amount of the Company’s right-of-use assets and lease liabilities, as well as the changes for the year ended December 31 2022, are detailed below:


	Right-of-use assets									Total lease liabilities
	Buildings			Plant and machinery			Total			Total lease liabilities
Amounts as of December 31, 2021		1,211			25,243			26,454			(27,074	)

Additions		—			449			449			(449	)
Re-estimations		348			9,206			9,554			(9,554	)
Depreciation ⁽¹⁾		(573	)		(9,656	)		(10,229	)		—
Payments		—			—			—			11,494
Interest expense ⁽²⁾		—			—			—			(3,611	)

Amounts as of December 31, 2022		986			25,242			26,228			(29,194	)

⁽¹⁾	Including the depreciation of drilling services capitalized as “Works in progress” for 1,827.

⁽²⁾	Including drilling agreements capitalized as “Works in progress” for 1,686.

Short-term and low-value lease agreements were recognized under “General and administrative expenses” in the statements of profit or loss and other comprehensive income for 118 and 152 for the years ended December 31, 2022 and 2021, respectively.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 15. Income tax

The most significant components of the income tax expense in the statements of profit or loss and other comprehensive income of these interim condensed consolidated financial statements are as follows:


	Year ended December 31, 2022			Year ended December 31, 2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Income tax
Current income tax		(92,089	)		(62,419	)		54,560			(15,162	)
Deferred income tax		(71,890	)		(39,695	)		(87,732	)		(21,001	)

Income tax (expense) disclosed in the statement of profit or loss		(163,979	)		(102,114	)		(33,172	)		(36,163	)

Deferred income tax charged to other comprehensive income		1,463			2,048			341			512

Total income tax (expense)		(162,516	)		(100,066	)		(32,831	)		(35,651	)

For the year ended December 31, 2022, the Company’s effective rate was 38%. The significant differences between the effective and statutory rate include (i) the application of the tax adjustment for inflation in Argentina (See Note 28); (ii) the depreciation of the Argentine peso (“ARS”) with respect to the USD affecting the Company’s tax deductions of nonmonetary assets; and (iii) the accumulative tax losses not recognized in the period. (See Note 33.1 to the annual consolidated financial statements as of December 31, 2021).

Note 16. Trade and other receivables


	As of December 31, 2022		As of December 31, 2021
Noncurrent
Other receivables:
Prepayments, tax receivables and other:
Prepayments and other receivables		13,630		15,236
Value added tax (“VAT”)		940		4,010
Turnover tax		493		765

		15,063		20,011
Financial assets:
Loans to employees		801		199

		801		199

Total noncurrent trade and other receivables		15,864		20,210


	As of December 31, 2022		As of December 31, 2021
Current
Trade:
Oil and gas accounts receivable (net of allowance for expected credit losses)		38,978		25,224

		38,978		25,224

Other receivables:
Prepayments, tax credits and other:
VAT		22,939		9,131
Prepaid expenses		13,864		3,633
Income tax		2,921		860
Turnover tax		634		42

		40,358		13,666

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)


	As of December 31, 2022		As of December 31, 2021
Financial assets:
Receivables from joint operations		3,854		2,286
Gas IV Plan (Note 2.5.1.1)		3,772		1,729
Accounts receivable from third parties		2,172		2,025
LPG price stability program		574		293
Advances to directors and loans to employees		444		491
Other		254		382

		11,070		7,206

Other receivables		51,428		20,872

Total current trade and other receivables		90,406		46,096

Due to the short-term nature of current trade and other receivables, it carrying amount is considered similar to its fair value. The fair values of noncurrent trade and other receivables do not differ significantly from it carrying amounts either.

As of December 31, 2022, in general, accounts receivable has a 15-day term for sales of oil and a 50-day term for sales of natural gas and LPG.

The Company sets up a provision for trade receivables when there is information showing that the debtor is facing severe financial difficulties and that there is no realistic probability of recovery, for example, when the debtor goes into liquidation or files for bankruptcy proceedings. Trade receivables that are derecognized are not subject to compliance activities. The Company recognized an allowance for expected credit losses of 100% against all trade receivables that are 90 days past due because based on its history these receivables are generally not recovered.

As of December 31, 2022 and 2021 an allowance for expected credit losses was recorded for 231 and 406 respectively.

As of the date of these interim condensed consolidated financial statements, maximum exposure to credit risk is related to the carrying amount of each class of accounts receivable.

Note 17. Financial assets and liabilities

17.1 Borrowings


	As of December 31, 2022		As of December 31, 2021
Noncurrent
Borrowings		477,601		447,751

Total noncurrent		477,601		447,751

Current
Borrowings		71,731		163,222

Total current		71,731		163,222

Total Borrowings		549,332		610,973

Below are the maturity dates of Company borrowings (excluding lease liabilities) and their exposure to interest rates:


	As of December 31, 2022		As of December 31, 2021
Fixed interest
Less than 1 year		48,588		109,016
From 1 to 2 years		154,895		112,860
From 2 to 5 years		232,279		214,491
Over 5 years		65,427		75,468

Total		501,189		511,835

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)


	As of December 31, 2022		As of December 31, 2021
Variable interest
Less than 1 year		23,143		54,206
From 1 to 2 years		—		44,932
From 2 to 5 years		25,000		—
Over 5 years		—		—

Total		48,143		99,138

Total Borrowings		549,332		610,973

See Note 17.4 for information on the fair value of the borrowings.

The carrying amount of borrowings as of December 31, 2022 and 2021 of the Company through its subsidiary Vista Argentina, is as follows:

Company

Execution

date

Currency

Principal

Interest

Annual
rate

Maturity

date

As of December
31, 2022

As of December
31, 2021

Banco Galicia, Banco Itaú Unibanco, Banco Santander Rio and Citibank NA

July, 2018

USD

150,000

Variable

LIBOR +

4.50%

July, 2023

69,121

⁽¹⁾

184,581

150,000

Fixed

8.00%

Banco BBVA S.A.

July, 2019

USD

15,000

Fixed

9.40%

July, 2022

—

5,081

Santander International

January, 2021

USD

11,700

Fixed

1.80%

January, 2026

^(1) (2)

137

⁽²⁾

Santander International

July, 2021

USD

43,500

Fixed

2.05%

July, 2026

^(1) (2)

⁽²⁾

Santander International

January, 2022

USD

13,500

Fixed

2.45%

January, 2027

^(1) (2)

—

ConocoPhillips Petroleum Holding B.V.

January, 2022

USD

25,000

Variable

LIBOR +

2.00%

September, 2026

25,594

⁽¹⁾

—

Bolsas y Mercados Argentinos S.A.

December, 2021

ARS

917,892

Fixed

32.00%

March, 2022

—

3,191

⁽³⁾

Total

94,890

193,050

⁽¹⁾	See Note 29.

⁽²⁾	The carrying amount is related to interest, and the principal is collateralized.

⁽³⁾	Net amount of 6,793 from short-term investments granted as securities.

Moreover, Vista Argentina issued nonconvertible debt securities, under the name “Programa de Notas” approved by the National Securities Commission in Argentina (“CNV” by its Spanish acronym). The following chart shows the carrying amount of ON as of December 31, 2022 and 2021:

Company

Execution

date

Currency

Principal

Interest

Annual
rate

Maturity
date

As of December
31, 2022

As of December
31, 2021

ON II

August, 2019

USD

50,000

Fixed

8.50%

August, 2022

—

50,492

ON III

February, 2020

USD

50,000

⁽²⁾

Fixed

3.50%

February, 2024

9,607

⁽¹⁾

50,316

ON IV

August, 2020

ARS

725,650

Variable

Badlar +

1.37%

February, 2022

—

7,427

ON V

August, 2020

USD

20,000

⁽³⁾

Fixed

0.00%

August, 2023

—

19,869

December, 2020

USD

10,000

⁽³⁾

Fixed

0.00%

August, 2023

—

9,931

ON VI

December, 2020

USD

10,000

Fixed

3.24%

December,

2024

9,968

9,940

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)


Company	Execution date		Currency		Principal			Interest		Annual rate			Maturity date		As of December 31, 2022		As of December 31, 2021
ON VII		March, 2021		USD		42,371			Fixed		4.25	%		March, 2024		42,200		41,970
ON VIII		March, 2021		ARS		3,054,537	⁽⁴⁾		Fixed		2.73	%		September, 2024		45,185		40,888
ON IX		June, 2021		USD		38,787	⁽³⁾		Fixed		4.00	%		June, 2023		—		38,551
ON X		June, 2021		ARS		3,104,063	⁽⁴⁾		Fixed		4.00	%		March, 2025		40,765		36,891
ON XI		August, 2021		USD		9,230			Fixed		3.48	%		August, 2025		9,214		9,196
ON XII		August, 2021		USD		100,769			Fixed		5.85	%		August, 2031		102,504		102,452
ON XIII		June, 2022		USD		43,500			Fixed		6.00	%		August, 2024		43,211		—
ON XIV		November, 2022		USD		40,511	⁽²⁾		Fixed		6.25	%		November, 2025		36,408		—
ON XV		December, 2022		USD		13,500			Fixed		4.00	%		January, 2025		13,413		—
ON XVI		December, 2022		USD		63,450	⁽³⁾		Fixed		0.00	%		June, 2026		63,079		—
ON XVII		December, 2022		USD		39,118			Fixed		0.00	%		December, 2026		38,888		—

Total																454,442		417,923

Total Borrowings																549,332		610,973

⁽¹⁾	See Note 29.

⁽²⁾	On November 10, 2022, the Company settled in part ON III by issuing ON XIV for 40,511, net of 4,135 of treasury stock, which generated no cash flows. As of December 31, 2022 the carrying amount related to ON III include 118 of interest.

⁽³⁾

On December 6, 2022, the Company settled ON V and IX for a total amount of 68,787, out of which: i) 60,935 issued ON XVI and; ii) 7,852 are related to the payment of principal remaining. Therefore, the Company issued ON XVI for a total amount of 63,450, out which: i) 60,935 are related to the swap mentioned above and; ii) 2,515 related to the loss from the issuance (see Note 10.3).

⁽⁴⁾	Amount in UVA, adjusted by CER (see Note 10.3).

Under the aforementioned program, Vista Argentina may list and issue debt securities in Argentina for a total principal up to 800,000 or its equivalent in other currencies at any time.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

17.2 Changes in liabilities from financing activities

Changes in the borrowings were as follows:


	As of December 31, 2022			As of December 31, 2021
Amounts at beginning of year		610,973			539,786
Proceeds from borrowings ⁽¹⁾		228,614			361,203
Borrowings interest ⁽²⁾ (Note 10.2)		28,886			50,660
Payment of borrowings cost		(1,670	)		(3,326	)
Payment of borrowings interest		(34,430	)		(54,636	)
Payment of borrowings principal ⁽¹⁾		(294,917	)		(284,695	)
Amortized cost ⁽²⁾ (Note 10.3)		2,365			4,164
Remeasurement in borrowings ⁽²⁾ (Note 10.3)		52,817			19,163
Changes in foreign exchange rate ⁽²⁾		(45,821	)		(21,346	)
Other financial expense ⁽²⁾ (Note 10.3)		2,515			—

Amounts at end of year		549,332			610,973

⁽¹⁾

As of December 31. 2022, borrowings received and principal payments include 99,826 related to the ON swapping mentioned in note 17.1. As of December 31, 2021, including 358,093 from borrowings received and 3,110 from the release of government bonds granted as security of prior Borrowings. These transactions did not generate cash flows.

⁽²⁾	These transactions did not generate cash flows.

17.3 Financial instruments by category

The following chart includes the financial instruments broken down by category:


As of December 31, 2022	Financial assets / liabilities at amortized cost		Financial assets / liabilities FVTPL		Total financial assets / liabilities
Assets
Plan assets (Note 25)		1,055		5,703		6,758
Trade and other receivables (Note 16)		801		—		801

Total noncurrent financial assets		1,856		5,703		7,559

Cash, bank balances and other short-term investments (Note 19)		41,516		202,869		244,385
Trade and other receivables (Note 16)		50,048		—		50,048

Total current financial assets		91,564		202,869		294,433

Liabilities
Borrowings (Note 17.1)		477,601		—		477,601
Lease liabilities (Note 14)		20,644		—		20,644

Total noncurrent financial liabilities		498,245		—		498,245

Borrowings (Note 17.1)		71,731		—		71,731
Trade and other payables (Note 24)		221,013		—		221,013
Lease liabilities (Note 14)		8,550		—		8,550

Total current financial liabilities		301,294		—		301,294

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)


As of December 31, 2021	Financial assets / liabilities at amortized cost		Financial assets / liabilities FVTPL		Total financial assets / liabilities
Assets
Plan assets (Note 25)		7,594		—		7,594
Trade and other receivables (Note 16)		199		—		199

Total noncurrent financial assets		7,793		—		7,793

Cash, bank balances and other short-term investments (Note 19)		185,546		129,467		315,013
Trade and other receivables (Note 16)		32,430		—		32,430

Total current financial assets		217,976		129,467		347,443

Liabilities
Borrowings (Note 17.1)		447,751		—		447,751
Trade and other payables (Note 24)		50,159		—		50,159
Warrants (Note 17.4.1.1)		—		2,544		2,544
Lease liabilities (Note 14)		19,408		—		19,408

Total noncurrent financial liabilities		517,318		2,544		519,862

Borrowings (Note 17.1)		163,222		—		163,222
Trade and other payables (Note 24)		138,482		—		138,482
Lease liabilities (Note 14)		7,666		—		7,666

Total current financial liabilities		309,370		—		309,370

Below are income, expenses, profit, or loss from each financial instrument:

For the year ended December 31, 2022:


	Financial assets / liabilities at amortized cost			Financial assets / liabilities at FVTPL			Total financial assets / liabilities
Interest income (Note 10.1)		809			—			809
Interest expense (Note 10.2)		(28,886	)		—			(28,886	)
Amortized cost (Note 10.3)		(2,365	)		—			(2,365	)
Changes in the fair value of warrants (Note 10.3)		—			(30,350	)		(30,350	)
Net changes in foreign exchange rate (Note 10.3)		33,263			—			33,263
Discount of assets and liabilities at present value (Note 10.3)		(2,561	)		—			(2,561	)
Changes in the fair value of financial assets (Note 10.3)		—			(17,599	)		(17,599	)
Interest expense on lease liabilities (Note 10.3)		(1,925	)		—			(1,925	)
Discount for well plugging and abandonment (Note 10.3)		(2,444	)		—			(2,444	)
Remeasurement in borrowings (Note 10.3)		(52,817	)		—			(52,817	)
Other (Note 10.3)		9,242			—			9,242

Total		(47,684	)		(47,949	)		(95,633	)

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

For the year ended December 31, 2021:


	Financial assets/liabilities at amortized cost			Financial assets/liabilities at FVTPL			Total financial assets / liabilities
Interest income (Note 10.1)		65			—			65
Interest expense (Note 10.2)		(50,660	)		—			(50,660	)
Amortized cost (Note 10.3)		(4,164	)		—			(4,164	)
Changes in the fair value of warrants (Note 10.3)		—			(2,182	)		(2,182	)
Net changes in foreign exchange rate (Note 10.3)		14,328			—			14,328
Discount of assets and liabilities at present value (Note 10.3)		(2,300	)		—			(2,300	)
Changes in the fair value of financial assets (Note 10.3)		—			5,061			5,061
Interest expense on lease liabilities (Note 10.3)		(1,079	)		—			(1,079	)
Discount for well plugging and abandonment (Note 10.3)		(2,546	)		—			(2,546	)
Remeasurement in borrowings (Note 10.3)		(19,163	)		—			(19,163	)
Other (Note 10.3)		4,851			—			4,851

Total		(60,668	)		2,879			(57,789	)

17.4 Fair value

This note includes information on the Company’s method for assessing the fair value of its financial assets and liabilities.

17.4.1 Fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis

The Company classifies the measurements at fair value of financial instruments using a fair value hierarchy, which shows the relevance of the variables applied to carry out these measurements. The fair value hierarchy has the following levels:

•

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

•

Level 2: data other than the quoted prices included in Level 1 that are observable for assets or liabilities, either directly (that is prices) or indirectly (that is derived from prices).

•

Level 3: data on the asset or liability that are based on information that cannot be observed in the market (that is, non-observable data).

The following chart shows the Company’s financial assets and liabilities measured at fair value as of December 31, 2022 and 2021:


As of December 31, 2022	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss
Short-term investments		202,869		—		—		202,869
Plan assets		5,703		—		—		5,703

Total assets		208,572		—		—		208,572

As of December 31, 2021

Level 1

Level 2

Level 3

Total

Assets

Financial assets at fair value through profit or loss

Short-term investments

129,467

—

129,467

Total assets

129,467

—

129,467

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

As of December 31, 2021

Level 1

Level 2

Level 3

Total

Liabilities

Financial liabilities at fair value through profit or loss

Warrants

—

2,544

Total liabilities

—

2,544

The value of financial instruments traded in active markets is based on quoted market prices as of the date of these accompanying unaudited interim condensed consolidated financial statements. A market is considered active when quoted prices are available regularly through a stock exchange, a broker, a specific sector entity or regulatory agency, and these prices reflect regular and current market transactions between parties at arm’s length. The quoted market price used for financial assets held by the Company is the current offer price. These instruments are included in Level 1.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. These valuation techniques maximize the use of observable market data, when available, and minimize the use of Company’s specific estimates. Should all significant variables used to establish the fair value of a financial instrument be observable, the instrument is included in Level 2.

Should one or more variables used in determining the fair value not be observable in the market, the financial instrument is included in Level 3.

There were no transfers between Level 1 and Level 2 from December 31, 2021, through December 31, 2022.

17.4.1.1 Warrants


	As of December 31, 2022		As of December 31, 2021
Noncurrent
Warrants		—		2,544

Total noncurrent		—		2,544

On October 4, 2022 the meeting of holders of the Warrants issued by the Company (identified with the ticker symbol “VTW408A-EC001” - the “Warrants”), approved the amendments to the warrant indenture and the global certificate that covers such Warrants, by means of which a cashless exercise mechanism was implemented that entitles the holders, to obtain 1 Series A share representative of the capital stock of the Company for each 31 Warrants owned. As a result, a maximum of 3,215,483 shares will become outstanding once all Warrants are converted. Thus, as of December 31, 2022, a total of 2,038,643 Series A shares were issued (For further information see Note 29). They have no nominal value.

As of October 4, 2022, the liability for warrants was settled for 32,894, an amount equal to the 3,215,483 series “A” shares and was recognized under “Other equity instruments” (See Note 20).

Reconciliation of level 3 measurements at fair value:


	As of December 31, 2022			As of December 31, 2021
Warrants liability amount at beginning of year:		2,544			362
Loss from changes in the fair value of warrants (Note 10.3)		30,350			2,182
Other equity instruments		(32,894	)		—

Amount at end of year		—			2,544

The fair value of warrants was determined using the Black & Scholes model considering the expected volatility of the Company’s ordinary shares upon estimating the future volatility of Company share price. The risk-free interest rate for the expected useful life of warrants was based on the available return of benchmark government bonds with an equivalent remainder term upon the grant. The expected life was based on the contractual terms.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

17.4.2 Fair value of financial assets and liabilities that are not measured at fair value (but require fair value disclosures)

Except for the information included in the following chart, the Company considers that the carrying amounts of financial assets and liabilities recognized in the interim condensed consolidated financial statements approximate to its fair values, as explained in the related notes.

As of December 31, 2022

Carrying amount

Fair value

Level

Liabilities

Borrowings

549,332

459,122

Total liabilities

549,332

459,122

17.5 Risk management objectives and policies concerning financial instruments

17.5.1 Financial risk factors

The Company’s activities are exposed to several financial risks: market risk (including exchange rate risk, interest rate risk and price risk), credit risk and liquidity risk.

Financial risk management is included in the Company’s global policies, and it adopts a comprehensive risk management policy focused on tracking risks affecting the entire Company. This strategy aims at striking a balance between profitability targets and risk exposure levels. Financial risks are derived from the financial instruments to which the Company is exposed during period-end or as of every period-end.

The Company’s financial department, controls financial risk by identifying, assessing and covering financial risks. The risk management systems and policies are reviewed regularly to show the changes in market conditions and the Company’s activities. The Company reviewed its exposure to financial risk factors and identified no significant changes in the risk analysis included in its annual consolidated financial statements as of December 31, 2021, except for the following:

17.5.1.1 Market risk

Exchange rate risk

The Company’s financial position and results of operations are sensitive to exchange rate changes between USD and ARS. As of December 31, 2022 and 2021, the Company performed foreign exchange currency hedge transactions, and the impact in the results of the year is recognized in “Other financial income (expense)”.

Most Company sales are denominated in USD, or the changes in sales follow the changes in USD listed price.

During the years ended December 31, 2022 and 2021, ARS depreciated by about 72 % and 22%, respectively.

The following chart shows the sensitivity to a reasonable change in the exchange rates of ARS to USD while maintaining the remainder variables constant. Impact on profit before taxes is related to changes in the fair value of monetary assets and liabilities denominated in currencies other than the USD, the Company’s functional currency. The Company’s exposure to changes in foreign exchange rates for the remainder currencies is immaterial.


		As of December 31, 2022
Changes in interest rates in Argentine pesos		+/- 78 %
Effect on profit or loss		(57,193) / 57,193
Effect on equity		(57,193) / 57,193

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Interest rate risk

For the years ended December 31, 2022 and 2021, the average interest rate was 57 % and 40%, respectively.

The purpose of interest rate risk management is to minimize finance costs and limit the Company’s exposure to interest rate increases.

Variable-rate indebtedness exposes the Company’s cash flows to interest rate risk due to the potential volatility. Fixed-rate indebtedness exposes the Company to interest rate risk on the fair value of its liabilities as they could be considerably higher than variable rates. As of December 31, 2022 and 2021, about 9% and 16% of indebtedness was subject to variable interest rates. For the years ended December, 31 2022 and 2021, the variable interest rate of loans denominated in USD stood at 4.55% and 4.81%, respectively, and it amounted to 36.31% and 35.55%, respectively, for loans denominated in ARS.

The Company expects to lessen its interest rate exposure by analyzing and assessing (i) the different sources of liquidity available in domestic and international financial and capital markets (if available); (ii) alternative (fixed or variable) interest rates, currencies and contractual terms available for companies in a sector, industry and risk similar to the Company’s; and (iii) the availability, access and cost of interest rate hedge contracts. Hence, the Company assesses the impact on profit or loss of each strategy on the obligations that represent the main positions to the main interest-bearing positions.

In the case of fixed rates and in view of current market conditions, the Company considers that the risk of a major decrease in interest rates is low; therefore, it does not expect substantial fixed rate debt risk.

For the years ended December 31, 2022 and 2021, the Company did not use derivative financial instruments to mitigate interest rate risks.

Note 18. Inventories


	As of December 31, 2022		As of December 31, 2021
Materials and spare parts		8,177		8,739
Crude oil stock (Note 5.2)		4,722		5,222

Total		12,899		13,961

Note 19. Cash, bank balances and other short-term investments


	As of December 31, 2022		As of December 31, 2021
Mutual funds		202,165		126,204
Cash in banks		23,910		78,098
Money market funds		15,881		106,915
Government bonds		2,429		3,796

Total		244,385		315,013

Cash and cash equivalents include cash on hand and at bank and investments maturing within 3 (three) months. For the consolidated statement of cash flows purposes below is the reconciliation between cash, bank and short-term investments and cash and cash equivalents:


	As of December 31, 2022			As of December 31, 2021
Cash, bank balances and other short-term investments		244,385			315,013
Less
Government bonds		(2,429	)		(3,796	)

Cash and cash equivalents		241,956			311,217

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 20. Equity

20.1 Capital stock

The following chart shows a reconciliation of the movements in the Company’s capital stock for the years ended as of December 31, 2022 and 2021:


	Series A			Series C		Total
Amounts as of December 31, 2020		659,400			—		659,400
Number of shares		87,851,286			2		87,851,288

Reduction of share capital adopted at the Ordinary General Shareholders’ meeting on December 14, 2021		(72,695	)		—		(72,695	)
Number of shares		—			—		—
Series A shares to be granted in LTIP		1			—		1
Number of shares		778,591			—		778,591

Amounts as of December 31, 2021		586,706			—		586,706
Number of shares		88,629,877			2		88,629,879
Reduction of capital stock adopted at the Board of Directors’ meeting on September 27, 2022		(39,530	)		—		(39,530	)
Number of shares		—			—		—
Cashless exercises of warrant adopted at Warrant Holders’ meeting on October 4, 2022		—			—		—
Number of shares		2,038,643			—		2,038,643
Share repurchase		(29,304	)		—		(29,304	)
Number of shares repurchased		(3,234,163	)		—		(3,234,163	)
Series A shares to be granted in LTIP		1			—		1
Number of shares		972,121			—		972,121

Amounts as of December 31, 2022		517,873			—		517,873
Number of shares		88,406,478			2		88,406,480

On December 14, 2021, the Ordinary General Shareholders’ Meeting approved the reduction of the variable portion of the Company’s capital stock of 72,695, for the absorption of accumulated losses as of September 30, 2021, shown on the Company’s nonconsolidated financial statements. This transaction did not require the cancellation of Series A shares as they have no nominal value. Likewise, this operation did not generate any tax effect in Mexico.

On September 27, 2022, the Board of Directors Meeting approved the reduction of the variable portion of the Company’s capital stock of 39,530, for the absorption of accumulated losses as of August 31, 2022, shown on the Company’s nonconsolidated financial statements. On December 7, 2022, through Ordinary General Shareholders’ Meeting this transaction was ratified .This transaction did not require the cancellation of Series A shares as they have no nominal value. Likewise, this operation did not generate any tax effect in Mexico.

On October 4, 2022 the meeting of holders of the Warrants issued by the Company (identified with the ticker symbol “VTW408A-EC001” - the “Warrants”), approved the amendments to the warrant indenture and the global certificate that covers such Warrants, by means of which a cashless exercise mechanism was implemented that entitles the holders, to obtain 1 Series A share representative of the capital stock of the Company for each 31 Warrants owned (See Note 17.4.1.1). As a result, a maximum of 3,215,483 shares will become outstanding once all Warrants are converted. Thus, as of December 31, 2022, a total of 2,038,643 Series A shares were issued (For further information see Note 29). They have no nominal value, and the remaining amount was recognized under “Other equity instruments”.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

On April 26 and December 7, 2022, through the Extraordinary and Ordinary General Shareholders’ Meeting, the Company’s shareholders approved the creation of a fund to acquire own shares for 23,840 and 25,625 based on the Company’s nonconsolidated financial statements (See Note 20.2). During the year ended as of December 31, 2022 the Company repurchased 3,234,163 Series “A” share for a total amount of 29,304, which, as of the date of issuance of these condensed consolidated financial statements, are held in treasury. As of the date of these interim condensed consolidated financial statements this operation did not generate any tax effect in Mexico.

As of December 31, 2022 and 2021, the Company’s authorized capital includes 40,385,761 and 40,162,362 Series A ordinary shares, respectively, held in Treasury that may be used with warrants and LTIP.

20.2 Legal reserve and share repurchase reserve

Under Mexican Business Associations Law, the Company is required to allocate 5% of net profit for the year to increase the legal reserve until it is equal to 20% of capital based on the Company’s nonconsolidated financial statements.

On April 26, 2022, through the Ordinary and Extraordinary General Shareholders’ Meeting, the Company’s shareholders approved the creation of a fund to acquire own shares for 23,840, and the creation of the legal reserve for 1,255, both based on the Company’s nonconsolidated financial statements.

On December 7, 2022, through the Ordinary General Shareholders’ Meeting, the Company’s shareholders approved an increase of a fund to acquire own shares for 25,625 and the creation of the legal reserve for 1,348, both based on the Company’s nonconsolidated financial statements.

Note 21. Provisions


	As of December 31, 2022		As of December 31, 2021
Noncurrent
Well plugging and abandonment		31,389		28,920
Environmental remediation		279		737

Total noncurrent		31,668		29,657


	As of December 31, 2022		As of December 31, 2021
Current
Environmental remediation		1,542		862
Well plugging and abandonment		1,135		1,876
Contingencies		171		142

Total current		2,848		2,880

Note 22. Salaries and payroll taxes


	As of December 31, 2022		As of December 31, 2021
Current
Provision for bonuses and incentives		17,599		12,102
Salaries and social security contributions		7,521		5,389

Total current		25,120		17,491

Note 23. Other taxes and royalties


	As of December 31, 2022		As of December 31, 2021
Current
Royalties		12,642		9,547
Tax withholdings		7,205		873
Turnover tax		102		—
VAT		10		33
Other		353		919

Total current		20,312		11,372

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 24. Trade and other payables


	As of December 31, 2022		As of December 31, 2021
Noncurrent
Other accounts payables:
Payables to partners of joint operations ⁽¹⁾		—		50,159

Total other noncurrent accounts payable		—		50,159

Total noncurrent		—		50,159

Current
Accounts payable:
Suppliers		196,484		119,255

Total current accounts payables		196,484		119,255

Other accounts payables:
Payables to third parties ⁽²⁾		23,880		—
Extraordinary fee for Gas IV Plan		488		220
Payables to partners of joint operations ⁽¹⁾		161		19,007

Total other current accounts payables		24,529		19,227

Total current		221,013		138,482

⁽¹⁾	As of December 31, 2021, including 50,159 and 18,913 in noncurrent and current accounts, respectively, related to the carry agreement, recognized at present value (see Note 1.5 to the annual consolidated financial statements as of December 31, 2021).

⁽²⁾	See note 1.2.1.

Other than mentioned above, due to the short-term nature of current trade and other payables, their carrying amount is deemed to be the same as its fair value. The carrying amount of noncurrent trade and other payable does not differ considerably from its fair value.

Note 25. Employee benefits

The following chart summarizes net expense components and the changes in the liability for long-term employee benefits in the unaudited interim condensed consolidated financial statements:


	Year ended December 31,2022			Year ended December 31,2021			Period from October 1 through December 31, 2022			Period from October 1 through December 31, 2021
Cost of services		(44	)		(28	)		(9	)		(9	)
Cost of interest		(458	)		(219	)		(134	)		(75	)

Total		(502	)		(247	)		(143	)		(84	)


	As of December 31, 2022
	Present value of the obligation			Plan assets			Net liabilities
Amounts at beginning of year		(15,416	)		7,594			(7,822	)
Items classified as loss or profit
Cost of services		(44	)		—			(44	)
Cost of interest		(806	)		348			(458	)
Items classified in other comprehensive income
Actuarial remediation (losses)		(3,911	)		(270	)		(4,181	)
Benefit payments		1,168			(1,168	)		—
Payment of contributions		—			254			254

Amounts at end of year		(19,009	)		6,758			(12,251	)

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

The fair value of plan assets as of every year end per category, is as follows:


	As of December 31, 2022		As of December 31, 2021
US government bonds		5,703		—
Cash and cash equivalents		1,055		7,594

Total		6,758		7,594

See Note 23 to the Company’s annual consolidated financial statements as of December 31, 2021.

Note 26. Related parties transactions and balances

As of December 31, 2022 and 2021, the Company carries no balances with related parties and relevant transactions other than those included in Note 27 to the annual consolidated financial statements as of December 31, 2021.

Note 2.3 to the Company’s annual consolidated financial statements as of December 31, 2021 and Note 1.2 of these unaudited interim condensed consolidated financial statements provide information on the Group’s structure, including information on Company subsidiaries.

Note 27. Commitments and contingencies

Duplicar Plus Project implemented by Oleoductos del Valle SA (“Oldelval”)

On December 21, 2022, the Company, through its subsidiary Vista Argentina, was awarded a crude oil transportation capacity of 5,010 m3/day under the project to extend the current line from Allen to Puerto Rosales implemented by Oldelval (transportation concession holder) for 50,000 m3/day. Thus, the Company undertook to make an upfront investment of 118,000 between 2023 and 2025, to be recovered from the service monthly fee. As of the date of issuance of these financial statements, the Company made disbursements related to this commitment for a total amount of 16,378.

Other than mentioned above, there were no significant changes in commitments and contingencies for year ended December 31, 2022. For a description on the Company’s contingencies and investment commitments related to its oil and gas properties see Notes 29 and 30 to the annual consolidated financial statements as of December 31, 2021.

Note 28. Tax regulations

28.1 Income tax

General Resolution No. 5,248/2022

On August 16, 2022, the Federal Public Revenue Agency (“AFIP”) in Argentina issued General Resolution No. 5,248/2022 whereby it established one-time payment towards income tax.

For taxpayers whose tax assessed as of December 31, 2021, was equal to or higher than ARS 100,000,000 and which calculation base for the advance payments for the following tax period exceeded 0 (zero), the one-time payment towards income tax will amount to 25% of such calculation base. Such amount was paid in three equal and consecutive installments equivalents to 8,300 and computed as payment towards income tax for the year ended as of December 31, 2022.

Law No. 27,701

Law No. 27,701, published in the Official Bulletin on December 1, 2022, set forth the option to defer the tax adjustment for inflation for the first two fiscal years beginning as from January 1, 2022. Thus, a third of such positive adjustment may be distributed to the fiscal year in which the adjustment is assessed and the remaining two thirds, in equal parts, to the two subsequent fiscal years.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

This alternative applies to the companies promoting investments in property, plant and equipment for an amount equal to or higher than ARS 30,000,000 during each of the two fiscal periods subsequent to the computation of the first third. Failing to comply with this requirement will result in the forfeiture of the benefit.

As of December 31, 2022, the Company, through its subsidiary Vista Argentina, applied the option mentioned above.

Other than mentioned above there were no changes in Argentina’s and Mexico’s tax regulations during the year ended December 31, 2022 (see Note 33 to the annual consolidated financial statements as of December 31, 2021).

Note 29. Subsequent events

The Company assessed events subsequent to December 31, 2022, to determine the need of a potential recognition or disclosure in these interim condensed consolidated financial statements. The Company assessed such events through February 23, 2023, date in which these financial statements were made available for issue.

•

On January 4, 2023, Vista Argentina paid interest for an amount of 111 corresponding to loan agreements signed with Banco Santander International in July 2021 and January 2022.

•

On January 13, 2023, Vista Argentina paid interest for a total amount of 639 corresponding to loan agreement signed with ConocoPhillips BV.

•

On January 19 and 21, 2023, Vista Argentina paid interest for an amount of 72 corresponding to loan agreement signed with Banco Santander International in January 2021.

•

On January 20, 2023, Vista Argentina paid principal and interest for a total amount of 24,340 corresponding to loan agreement signed with Banco Galicia, Banco Itaú Unibanco, Banco Santander Rio and Citibank NA (“Syndicated Loan”).

•

On January 27, 2023, the Company, through its subsidiary Vista Argentina, was awarded a storage and dispatch capacity of 35,644 m3 and 5,944 m3/day, respectively, under the program to extend Puerto Rosales marine terminal and pumping station, in which Oiltanking Ebytem S.A. bidded for a storage and dispatch capacity of 300,000 m3 and 50,000 m3/day, respectively.

Thus, the Company undertook to make an upfront investment of 28,400 between 2023 and 2025, to be recovered from the service monthly fee as from 2026. As of the date of issuance of these financial statements, the Company made no disbursements related to this commitment.

•

On February 22, 2023, Vista Argentina paid interest for a total amount of 167 corresponding to ON III.

•

During January and February 2023, the Company issued 352,965 Serie A shares related to the cashless exercise of Warrants mentioned in Note 17.4.1.1. They have no nominal value.

•

On February 23, 2023, the Company approved the agreement signed by its subsidiary Vista Argentina with Petrolera Aconcagua Energía S.A. (“Aconcagua”) for the operations of the following concessions in the Neuquina Basin, Argentina (the “Transaction”): (i) the Entre Lomas upstream concession, located in the Province of Neuquén; (ii) the Entre Lomas, Jarilla Quemada, Charco del Palenque, Jagüel de los Machos and 25 de Mayo-Medanito S.E. upstream concessions, located in the Province of Río Negro; (iii) the Entre Lomas and Jarilla Quemada gas transportation concession, located in the Province of Río Negro; and (iv) the 25 de Mayo-Medanito SE crude oil transportation concession, located in the Province of Río Negro (the “Concessions”).

The Transaction consist in a two-phased agreement. The first phase will be effective as of March 1, 2023 (the “Effective Date”) and will end no later than February 28, 2027. Under the terms of the Transaction, from the Effective Date:

(i) Aconcagua will become operator of the Concessions;

(ii) Aconcagua will pay to Vista 26,468 in cash (10,000 on February 15, 2023, and 10,734 and 5,734 to be paid in March 2024 and 2025, respectively);

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021 and for the years and for the three-month periods ended December 31, 2022 and 2021

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

(iii) Vista will retain 40% of the crude oil and natural gas reserves and production, and 100% of liquified petroleum gas reserves and production, from the Concessions, until the earliest of (i) February 28, 2027, or (ii) the date when Vista has received a cumulative production of 4 million barrels of crude oil and 300 million m3 of natural gas (the “Final Closing Date”). Aconcagua will keep 60% of the crude oil and natural gas production from the Concessions;

(iv) Aconcagua will pay 100% of Vista’s share of the capex, opex, and any other costs associated to the operation of the Concessions, including royalties and taxes;

(v) Vista will have the right to purchase up to Aconcagua’s 60% share of the natural gas (net of internal consumption) produced by the Concessions at a price of 1 USD/MMBtu until the Final Closing Date;

(vi) Vista Argentina and Aconcagua will work jointly with the Provinces of Río Negro and Neuquén to negotiate an extension of the exploitation and transportation concession titles governing the Concessions, including an upfront payment and an investment commitment, as per the terms set forth in the applicable regulation in Argentina;

(vii) Vista Argentina will retain the right to explore and develop the Vaca Muerta formation in the Exploitation Concessions and seek to obtain one or more independent and separate unconventional concessions to develop such resources;

(viii) Vista will remain concession title holder until no later than the Final Closing Date, when the Concessions will be transferred to Aconcagua, on an “as is where is basis”, subject to Provincial approvals.

There are no other events or transactions between the closing date and the date of issuance of these unaudited interim condensed consolidated financial statements that could significantly affect the Company’s financial position or profit or loss.

Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the years and for the three-month periods ended December 31, 2022 and 2021

Unaudited interim condensed consolidated statements of financial position as of December 31, 2022 and 2021

Unaudited interim condensed consolidated statements of changes in equity for the years ended December 31, 2022 and 2021

Unaudited interim condensed consolidated statements of cash flows for the years and for the three-month periods ended December 31, 2022 and 2021

Notes to the unaudited interim condensed consolidated financial statements as of December 31, 2022 and 2021, and for the years and for the three-month periods ended December 31, 2022 and 2021