VIST - Earnings call transcript Q4 2020 | Vista Energy, S.A.B. de C.V.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Vista's Fourth Quarter and Full Year 2020 Results Conference Call. [Operator Instructions]. It is now my pleasure to introduce Strategic Planning and Investor Relations Officer, Alejandro Cherñacov.

Alejandro Cherñacov

Thanks. Good morning, everyone.

welcome Results Vista's Conference to Full Quarter happy XXXX Year Call. are you Fourth to and We I am here CEO; and with Miguel Galuccio, Pablo Pinto, Vista's Vera Vista's CFO. with Chairman and

your results to I forward-looking forward-looking like actual on begin, could statements. be X. advised the These today, be risks statements different that from our Please our cause questions, answers we Before to Slide to draw your and cautionary materially attention uncertainties would to contemplated statement remarks including subject these by that are to may include expectations remarks.

are U.S. Financial Our stated financial with accordance and International figures Standards, IFRS. in dollars in Reporting

measure may that for as during Reconciliations to further Please of issued call, we financial IFRS in non-IFRS measures yesterday. website adjusted be earnings the discuss can However, we check found release EBITDA. information. such measures our these this closest certain the

the registered variable de de Our the Exchange. laws company, anónima York New of call Stock sociedad Vista to The Mexico, bursátil common VTWXXXA. VISTA in I is our The turn the ticker Stock the over a Stock Mexican Oil stock tickers Gas, our of warrant under in organized Exchange and and now And is the will in Bolsa capital the New are call York the VIST & of Exchange. Miguel. Valores Mexicana

Miguel Galuccio

cost. the lower the proud on challenges. task. I'm our emerged today believe reflect for will you shows the V-shaped call. indicators Thanks, I development In back recovery crisis. And we XXXX say I up thank us a morning, you joining from this most share have earnings Alejandro. of of multiple and structurally presentation stronger everyone, short, Good key with The how and operating a year we The presented to to are

been COVID to has response pandemic firm. Our

home This health by reached staff established July, More to and Palo day and XX,XXX from restart X a that by pads business March to four-well of activities. XXXX. us allow new pulling was of del than the and we XX% our tie-in adopted foremost, Bajada our protocol essential BOE a continuity, we per Oeste, our boosting year-end. operations. by protecting production for working In protocol ensuring drilling, completion in First quickly staff end oilfield

Our to continued gave focus efficiency results. way on solid

redesigned productivity During unexpected XXXX, well to This cost development led $X we on cost per approximately of type our based increased has BOE. and reductions.

vis-à-vis is per barrel increase mentioning We early. key increased reduction XX% oil turned to QX. in we of also XXXX, and Therefore, cost costs to BOE XXXX economics. even XX replace XXX.X ratio oil year-end a per run though a time contracts. year-end implied By a of for This equivalent. more compared operating per increased that a oilfield an barrel barrels of of $X lowered proved price This this We environment. XXXX, we reflection by resilience reserve, in prices million realized used our reserves XXXX. the company renegotiating to of This clear base result in $XX led XXX%, reserve with than more our oil to to $XX I reserve was lifting even services to low resilient is

Bajada meter lateral. our the X,XXX Carbonate with by X well Lower landing Oeste, in increased also inventory We with wells derisking zone Palo successful del

to sustainability. economic focus Solid In enabling maintained XXXX, on inventory, play, XXX XXX well to drill estimated of Lower which strong now productivity the an we our a totals wells us proved add wells. also an Carbonate as

years completely to less Our safety metrics improve, continue operation safety and X ago. over procedures standards reworked since took this having we than

X.XX XXXX X was international standards. with X.XX, down Tier for Our in total which from recordable line XXXX, already was rate incident in

QX in would it of days. pad #X, with The than sustainability development, production to April. published our takes above pad before and us be XX XXXX, we XXXX-meter XXX% than drilling improvement boosting in pro allow was days. curve. date, XX tie for our the will Today, pad forma less a see report end take learning #X, lateral oil in Drilling us the consistent at speed metrics. rate X restarting to speed first scheduled more drilling in the exit XX a continue remarkable days Our completion When After shale well us in improvement our year. started drilling we

captured was that pad lateral XX% down XXXX, In cost for #X, to well per to #X in rates XX%. #X. tool reduction foot pad a drilling as we cost was and down compared completion Similarly, pad the drilling flat proppant cost costs. $XXX, During are drilling service and improvement completion

was Finally, improvement pad million drilling XX% completion for per cost #X, well and pad #X. to compared $X.X a

Additional by efficiency design. was obtained improving well

to length shown lateral increasing development right well pad At As and the below the These per to total BOE. we in be reduce are $X of target to costs per per of would million increase development actually and are our productivity the key approximately #X, a costs BOE. cost $X.X stations. achieved drivers to slide, well frac $X

is del well above We our curve, slides. shows all the in production production La Palo X in line. next Oeste. X pad you XX% set XX-day give black. will The into the corresponding shows Cocina, peak in X for records oil. productivity average our The of Vaca of we shown performance. will is wells performance XXXX the left the which blue our landed in and X, in gray I color to Each wells, additional wells Muerta deep some chart type line on dive on Bajada well

and rate second December, XXXX, Palo our This #X. del #X half our more in activity, production exit in drilling production per tripling Bajada XX,XXX of and and boosted completion year-on-year. to than we accelerated tie-in Oeste an the BOE During day pad of

increases artificial system, half X first for horizontal achieved in pads, it this In we of Permian our previous pad basin. the and peer of same. conversion is is our started X version fit after year, message Muerta shared the Muerta the X wells. production #X lift of lift. a a comparison preliminary in second around we Slide The good Finally, wells #X. of year the of result chart this gas wells and the shows Vaca Vaca to the in gas pilot XX% the and ago, against I

year-on-year. the Our best Compared ability comparison to our still graph, In the XX%. deliver top is wells the XX intact. compared well, Vista quartile, at fall on that wells whereas purple XX%, is rank graph, wells bottom of wells are the our top world-class top shown in normalized XXXX top XXXX shown our are in productivity The productivity Muerta to the all XX%. Permian is within black, wells ranking whereas to the Vaca our wells, are and in in wells XX basis. top best X of wells our better highlighting

XXX.X XXX.X Our of at up XXXX stood end at at audit million from BOEs, the end of the million XXXX. reserve proved

Our was now group additions XXX% XXX% locations total by Net were new in reserves driven incorporation XX% replacement ratio reserves. XX Shale Bajada in of well for of del mainly total the reserves are and our Oeste. oil. Palo

EUR in XX% Our improvement important are than more XX% increasing realized costs. lifting decrease Such driver, of a and type well, lower prices. offset oil we

very macroeconomic position in a cash a XXXX, environment. During we challenging solid maintained

prices operating Cash million. activities respect realized outflow to were that cash flow $XXX.X XX% at $XX.X was XXXX. from Our down solid million, investment from was activities with despite oil average

we of positive second visibility QX response and from rig $XX.X price oil main down run go year-on-year, additional our sharp QX X% activity million XX,XXX per for recovering, below metrics of We CapEx demand per the oil were and year-on-year stopped XX% investing Xx than Realized advantage del the in production. December greater crude QX activities realized XXXX oil the the international Oeste, oil XXX.X $XXX the capture presented During embedded lower and at it COVID-XX I our the our now a of a will as QX, more by million, reduction as day, up before XX,XXX in Bajada demand year-on-year, In were and million, of as of to a by in completion on oil contraction down by more ramp-up year-end. drill Therefore, upside on Lifting August, which at to improved in up reduce QX, QX. single million Proof raised XX% successfully demand driven $XXX production bonds has was barrel BOEs drilling with for to an million per positioning digit. barrels Argentine the XXXX. per up cash ramp demand. well use of XXXX. in rate. down market reserves design contraction year. by Oil Total of impacted will during flexibility the We XXXX, all from through production XX% prices. activity with XXXX pad, the our of activities and oil year, BOE average $X from a the XXXX, Vista from oil BOE, effect prices tie costs $XX.X new at activities were capital in Palo in in Revenues summary again. prices. production caused $XX.X X.X% impacted XX% stood during to day, Cash XX% in prices. $XX.X took the in the was financing and to QX in than contract recovery we was

with set XXXX, the on right. EBITDA can structure more recovery sequential XX% rebase the XXXX QX, cost efficiency. line see showing for year we down rate force plan renegotiate oilfield guidance. million in the specific the Adjusted our year, up savings CapEx a service vis-à-vis million, and than the with chart our and permanently for XXXX $XXX lower XX During original but as in contracts to XX% year was higher and task a $XX strong you than to during was key cost lower on

came and was position period metrics at recovery, the end was the shown successfully solid, XXXX weathered leaves are QX X,XXX cash XXXX. Adjusted million a $XXX year, we have due cost XX% but sequentially improved in to the $XX at QX $X of solid diluted XX% have discuss under expenditures the slides. BOE challenging the us EBITDA which XX% to our Bajada to XX,XXX showing XXXX In levels. solid Production quarter-on-quarter driven thanks million, will improvement was per $XX price. million, barrels following increasing V-shaped a Revenue quarter storm. production in a investing fund increased and sum, production including volumes XXXX by quarter-on-quarter, activity day. del were by XXXX, per activity in metrics of production in Oil costs. XXXX EBITDA, keep very during amid lifting driven I Palo as control adjusted quarter. a on right. per day, Key to XXXX Finally, the Oeste. to progress QX the QX in efforts prepandemic increases barrel, XX% production improvements fixed vis-à-vis to ramp-up vis-à-vis total fourth for

it mentioned ramp up in is X% importantly, for adjusted reaching More QX the the margin by quarter, activity up CapEx of driven million was $XX XX%. year-on-year, EBITDA an I earlier.

the keep Oeste developing Bajada million at the cash solid constitutes Finally, million. $XXX net starting at This of del period with Palo $XXX XXXX. was to a debt in robust a end point

to Moving it COVID-XX X% production and up from is pandemic is fully Total XX. the year-on-year. Slide impacts, recovered actually

decline Bajada in and Realized of mainly profitable driven Oeste is sequentially during quarter-on-quarter, respect production development as price #X Revenues up by del del still We gas Bajada Palo quarter with production. continue due XX% associated X% the was but our growth, a focus our to we flat are on XX% which of sequentially to essentially asset tie-in by Brent. Gas oil is our but by higher the production back to year-on-year, oil XX% impacted crude decreased the is the light #X. and production. Oil pad pad result year-on-year early development. for Palo quarter QX, Oeste, down increased XX% with oil in driven

realized In XX% by per QX, XX% in lower. by severely represented discount came margin V-shaped expansion XX%, Gas QX was were of barrel, Cash offset segment, $X effort year-on-year. for for driven of revenue marketing impacted XXXX down XXXX, Adjusted BOE. expansion to at netback our million. Lifting improved quarantine in of the performance del Therefore, competitive were Vista's price reduce Palo our quarter-on-quarter. below flat higher prices was BOE XX market QX only and investing $X Approximately XXXX, per $XX.X in oil by per an and of discount QX at down of QX is very was to activities We We to realizing down quarter. came Brent have gas adjusted achieved QX per Netback the QX was that $XX.X by sequentially $XX in XXXX that with XX% XXXX, million, cash year-on-year, higher we was as Brent QX QX softer price was cost recovery. evidence which tender measures. dilution oil efficiency. continue in to clear have EBITDA further ramp-up below this we the oil margin oil. strategy EBITDA oil. crude continue I around XXXX was this a QX is are was industrial higher million, revenues Bajada $XX oil fixed year-on-year. XX% Adjusted increase evidence and demand $X potential XXXX, per same barrel. of very realized costs, operation in latest driven flow the XX% barrel, by with $XX.X effect plan our the from and of a We export the commercial adjusted driven a was our a Oeste, $XXX achieved average Adjusted at the Cash to quarter-on-quarter, activity export at prices reduction year-on-year. EBITDA Lifting efforts or solid explained as our generation. XX% barrel boosted year-on-year. in QX XX% to through and affected EBITDA partially from mainly $XX.X by X% This XX% of point and This today. end obtained In million earlier. XXXX, X% leading EBITDA XX as a solid increased per a cost cost was realized points XXXX lifting production above XXXX, costs higher prices million,

QX I $XX will Finally, considering exciting, we present Argentine XXXX cash bond from flow months. quite which capital the financing of XXXX guidance another is and as positive dollar-linked went in activities for XX we challenge market the in in raised maturity through. was with XX now XXXX, in million our

drilling Bajada Palo and current del we in at X terms with in core In activities rig of completion keep drilling run Oeste, operation plan to our rate acreage.

total of wells producing year-end. tie-in during the for year We XX wells expect oil to by shale XX a

pad per per an XX,XXX growth is rate day, Our quarter. improvement year-on-year. XX,XXX between be We production forecast guidance for XXXX to and a each tie-in exit in XX% XX,XXX want We BOE BOE day. sequential all and quarters, about

cost plan Our a least, at for reflects $X per BOE lifting year. at, the

compared We pooling reduction but are to due a quarters in QX of will a with least reduction total ramp-up show slight annual sequential a XXXX activity, a at expecting XXXX. all in XX% to increase year-on-year

oil on adjusted targeting our price. realized $XX tripling EBITDA adjusted a EBITDA $XXX are We barrel per at million, based XXXX conservative

For million. oil $X dollar EBITDA every grow to added could price, realized adjusted

$XXX in line to for XXXX We oil conservative with are million be price adjusted our scenario. capital expenditure at planning EBITDA at

at gross achieve of to now plan I ratios main normalization leverage presentation. current to points will quick of XXXX. Finally, levels by maintain a today's our QX on recap debt we the

continue in We deliver world-class Bajada core to our Palo well del acreage. productivity

the of production, stage in well is in of ramp-up Vaca performing of Vista curve growth Muerta average XXXX. our for The our XXXX XX%. setting and Our QX top boosted our in ranked well activity continued type XX% XX%

a QX when and QX Our XX% margins $XX lifting barrel. EBITDA structure oil This of per rebased cost XXXX BOE of in $XXX maintained plan. price prices million to per the XXXX fully the cost XXXX, adjusted proved margin an We balance levels, led QX above were at $X future. of and solid cash with to CapEx in face end lower resilience XXXX at sheet lifts in prepared XX% a our oil scenarios higher to over our

solid expect year-on-year XX% million. growth EBITDA XXXX, to production we with tripling $XXX and increasing For metrics adjusted

We with realized expect per barrel. oil margin EBITDA adjusted above $XX prices at XX%

thank very our for at would like all a hard I section, Vista support, for Q&A challenging and continued to year. work their team passion their the move we to Before and investors during

move will Q&A. to We now

Operator

[Operator Instructions].

of comes Citi. Andres first from Cardona with question line the Our

Andres Cardona

Alejandro, Pablo.

questions. three have We

test market? when there? and you prices six? and five to and are very question the impressive test pads at a the at second the The in How like in areas production. drill. But first unconventional do it in one are to cost. in first split number is, quarter? we what new targeting How to is guidance, how and similar reduction is, the The local It's Are zones pad to targeting understand you And that The question look with your to of would with The there lifting, I given number four levels. quarter-on-quarter is, think restrictions expect targeting conventional about XX% each you -- between you strategy has derisk do last should to lifting new the that them? see are you year with particular in of XXXX next we what guidance the look solid Or realization the block? for oil the can for XXXX, does second has to the prices. question the do that and you it an production

Miguel Galuccio

Andres, tackling question XXXX. starting just our to in with you. are first to thank Look tackle, the your for campaign relating to good that XXXX XXXX. I going and the strategy for between Well, question, talk mean, are to of end we you development of we

have carbonate zones say moment. but want are that the are in the mean the develop not going derisk X XXXX. a not to vertically. don't at have is pad that is to change, but with on result plan the I the that, proven We It is I wells to we to amazed plan further carbonate, of we new where means -- not in planning we carbonate don't

Of optionality ago. about course, those that us few optionality. a wells not should that quite that type closely following production the gives And we again, did our And of months performing are we continue have then curve.

we way sort yes, a of geographically, to yes, north. the was somehow way derisk Pad all the the some the #X that east. of placed Pad all went in that us And say we to position are therefore, been our the where Now pads, have helping area. can area. is derisking to the #X

ahead in X, pad all in Now have are Muerta. core and X we what Vaca acreage that XXXX, X, X, is of the

So XXXX the on really. focus focus that, results. guidance, are And is on drilling production we the focus for on financial

is that the So much strategy. pretty

see will are those Bajada you of the the core So del Palo have we X, pads basically and X Oeste. X, X in of core what

you with in of we dynamic are barrel QX one with us $XX realized XXXX numbers We XXXX are $XX. our is to have for guidance. pricing, -- seen, Argentina important prices of plan is terms In giving understand finished for running our we basically on thing of pricing. per And the

see also, ever. down, as reduction it. we Brent immediately, from of see price a sometimes months factor, November. Basically, the we Argentina. both a coming never Argentina, just for or Therefore, have revenues, on our pricing ahead close something price in with reduction Export we pump source prices a We the price And And living pump, to the the Brent ahead don't QX, goes inertia that be it's or have X closed export that we've basically, refineries fair, pump quarter is neither been export. in Argentina production. that we few dynamic there's in and don't up, a of and refineries of seen agreement from local ways. December in when we it When in the of one our in of of come But prices refinery of one of pump. come coming

QX, prices average be slightly should to our realized but our for it's I expect So to think okay? -- going prices be close guidance, close we will guidance. above, It to

mentioned for oil us For above be realized believe, for yes, will whatever before. I I QX, quite guidance prices,

kind mentioning names, were, pricing-wise QX a of in local any that want be costs. So sense where our where we gives today, where to last you okay? in above barrel, The question we're regard be guess that seeing we where If pricing QX. is per you we $XX are without of refinery and we are I expect today, going are to lifting

platform cost don't conventional our an are the lifting mean, Our if But split at know between have lifting as because that cost of of facilities. terms somehow look in unconventional first the unconventional. I we conventional, I -- cost we of we in for unconventional incremental we lifting -- we can the all, cost can lifting using

tackle of tasks. Some of the some people the that

lifting for unconventional so from production $X operation are is this say $XX, per unconventional. probably no today, our would started and I we close with And to with we $X, barrel. cost that having And coming

costs bit whole So down percentage continue we cost unconventional further It the of we feed for dilute we production. increase lifting lifting. plan as a that the that the probably have our to going

separate clearly, lifting lifting lifting to can think decreasing. add But of costs barrel total true exercise. will we So we going from a production I conventional, that at costs our per don't $X unconventional. see unconventional cost, as be is we

Operator

comes Our of Demichelis Nau the Securities. next from question Alejandro with line

Alejandro Demichelis

guiding question. be understand more dynamics couple see on Yes. we of CapEx That's you're please. in us that Argentina. Could of high, to in now? the Miguel, evolving of you the give you're see unconventional, But you I focusing core? completion remain first what some can kind And than second costs and on guidance now A then is, probably what prices terms saying the up going you're drilling your the pricing how if much question going questions,

Miguel Galuccio

Alejandro, you, your Thank for question.

a lot. overall it's come their and and up a during based all have bit, and pandemic. that been that the development basically renegotiation we before also contracts that performance we companies, completion of is basically service contracted costs the the proud the services not drilling a we for measured So One And if strategy something company. service performance, where split on has down we come for are drilling more mean scheme -- I know but very When -- also since competition don't with rigs did a bit in than and And operation, rebasing and performance. drilling that probably with costs pandemic, performance. call I mainly we our that services, you we the way recall based is common that is that us and main And a pay performance only of Team, as also pay the the

So even reward as people $XX.X the million something believe Main similar X is with down sure. with million. in from rig to million service we the pad scheme that we main companies would Drilling reduction be, our I see create people -- and side in that to another said, come team continue for spirit. at order the our we we same has $X.X well, reducing we X, you from And cost developing. cost Slide first for example, X source say, to Sand for continue have could room sand. of probably, per as

developing source. are our in thinking own We

looking reduction things that are mobilize few been this modification also sand. tested logistic, could doing And of that bring believe another have we CapEx in we terms cost investing process, further the and year. that in are We else the also a how we somewhere

improve short we've there's there. room to so believe drilling costs, been continue that could but at probably we you the yes, the the we for So is, still not answer speed reducing doing far,

in no have are plan at we express look change that, In CapEx, terms fill have where we a And guidance a we we is plan QX. to but to basically call what to a what of as plan. drill we

more So aggressive QX, that quite if is a of a very precise, or to and plan, room our lower in we prices prices, plan show about have are be plan. our we us realized and

in an to or performance. it of understanding situation be So terms has pricing

our option an been have increase in QX. activity probably plan team to toward and We our in

remember was contracts, and You me, them bold long-term a one for building but have of things lot during service flexibility. that was, the did commit the we a of that key in to we companies, to movement very that with pandemic

a few have we fleet a years. for frac So contracted

commanding with wells. and our of and And timing a with basically flexibility in performance for stop. and flexibility, rig the today, We contract years contracted speed start have our the are drilling that to few we to the

where that with we other time, reduce we those own equipments are those at cost are us. to because But sharing We the same contracts. contracts those order to not the command in dedicated companies

So that was helping or be activity QX. in take of if it If scenario, a to we better to the scenario able is price price us to move a advantage the really also increase that require. want new

Alejandro Demichelis

And just the Okay. activity, see we follow-up, when rig to increase book? about second you a the talked into can coming in

Miguel Galuccio

I #XX. will an model, QX, more pad pad, X -- for we pad consider in additional your

Operator

with comes Marcelo question from next of Our the line Gumiero Crédit Suisse.

Marcelo Gumiero

the on Congratulations results. two I have questions today. for

still Plan one, unconventional, restriction much regarding the impacting? much expect, would side, you way, second if X to some the general mean conventional? breakdown. next impact? on topic. Central going restriction us is And is more the a I productions Gas Bank? mean, where mean, maybe capital I provide mean, few Vista I there we First I CapEx from kind in CapEx I is in is any, a And say? years, And of could the how much how probably And how does it should

Miguel Galuccio

a Thank good you, question. very Marcelo,

we unconventional in So the million, which $XXX majority for breakdown, reporting from so drilling, the for are completions. CapEx well guidance, Vaca is the the drilled the XX and Muerta XX

portion there you unconventional of around a small conventional, Then for Capex. you around $XXX So million. $XX probably have million have

You Mexico. have $XX million in

a it. have on than $XX Andres to -- and of question million the Alejandro, You sand initiative that's less previous related

million, the $XXX is breakdown. mainly that the complete to others have but You

split Bajada related investment and be have more Vaca to the Palo, development, you of -- drilling completion. And between Muerta precise. there, to most So is del also a you have

You and studies. in other have investment in investment facilities, have you

our of the investment. is that bulk So

Your next question was related to?

Marcelo Gumiero

CapEx I the a is Maybe I quick X? any just Plan follow-up there impact there be mean, much on Plan Gas of how a would Gas on X if mean previous not CapEx? the was questions. follow-up, the

Miguel Galuccio

Okay.

in Gas, are mean, So drilling Plan not for we I gas.

So per around we that to us oil all additional have Plan our that give the gas The an -- development. $X BTU. million get Gas associated pricing is of is regard

business We margins, our nature plan upside. our Because is in Gas. Plan we Vista participate our and is good pricing. we main all Gas strategy from changed to in due of we get I we Plan a what all see think in is how resources our not have related that forward or focused. and very at our going that because to your It's that. development So But oil next terms saw of question. the the development main question, mean I development

I in also base has a put Vista if in of we that efficiencies where cost take the elements, in -- XXXX, price, year X The think is, had as think, of have and position performance. a lifting less reservoir restructure $XX. our been a the it a So main of through margins to we today, cost better it EBITDA. XXXX we what total development I based $X presentation, teams than in probably fact margin A mentioned and have late margin you go us, operational operation in main the XX% of have the -- the and I ago achievement where is with cost

profitable are unit years frac Argentina, mean with we that frac -- is with what is create and operational achievement. the In returning fleet back that secure. everybody secure, we we a we X the that rigs also we only profitable and rig I scheme XXXX, with and higher same not with a in efficiency returning for are same the doing the are that on that the fleet, ago. of based crew, prices same growth returning So frac and to we has fighting X moment minimum rig, with In have X the on fighting been same for stronger to growth. main And demand, and fleet. that of restructuring

seeing minimum operational free and this rig flow. Going -- going commitment, forward even a minimum we and that we with and mentioned, onwards, scenario to continue X going growth with on cash frac growth a XXXX that we to that creating that X are unit be company But with going are we fleet. that in be

So free we cash be generating going to are flow.

we And that plays And going I this, if of XXXX the to free us flow to Vista. we cost we have do question. going make hope in have for that the answered cash and -- now with I the decision to have is everything what XXXX, have and other decision -- And I context. scenarios. onward the ideas, it's terms what cash. generation of different right mean, going development in done and next But depend for your context to different we good us the numbers. harvest the company The do on that the really restructuring, to very free XXXX course, of onward, then XXXX is are with going cost lifting are we're

Operator

from Our [indiscernible]. the of line next comes question

Unidentified Analyst

like one, Thank go you the for the materials I and one to would I questions. congratulations performance you new mind. wells. by the recent X on have of don't if

that something in should seen this if we producers the something? about and to forward? you is Or we crude The crude in prices is price. industry certain conversations, related first in players one regarding expect the have an comment, becomes media really what before maybe higher talks really please, to internal conversations or see it's this press, Would moving refineries in crude

Miguel Galuccio

paying I you $XX refineries Thank think you as Look, as the for we before I question. said, today, per the above barrel. presentation, think, I Yes. mentioned are start with, during

where So that today. barrel. per above $XX This are we is is

inertia cycle we we that that we between what when The and see I through inertia before. As I export. volumes I capture in have they're don't been prices, difference means that market. that is And be and can mentioned additional immediately this lived before what international crude before, in local Argentina, that have in we in an increase, the have today have

portion in our Back our and from have -- periods a industry we prices, a and export. prices to where get basically to of realized inertia, the bucket pricing to together prices been that of pricing. manage local comes now So the through are that seen agree in I've that X crude they the transition that local how is past and order

even export for parity or for between fight parity have to is We the and seen to never import something fight parity. not industry export that

will the and or agreement to get dynamic export of there. So be refineries between get to market producers, in it how basically we parity, an the order operators

people together. that on surprised of getting the not there I'm press So and rumors are

not again, prices increase a of participated been But refinery in parity We we have conversations, dynamic I an oil prices. more pump to when the they've and to this the Argentina conversation. get the think in does any past, it into that, of see yet not come than crude to this international export immediately on

Unidentified Analyst

see That's day Hopefully, growth going production. we to per you're in great. barrels XXXX-XXXX. in will XX,XXX barrels And this my close equivalent second question be is related year, to getting more facilities. -- to Hopefully,

where think your capacity? to in treatment And is now terms where you will you need go? So limit of do

Miguel Galuccio

good Yes. question. Look, a it's

be that before, have to cash be course, can I of of we locations decide continue we As carbonate, have growing. we'll company do generating drilled. be XXXX, have with more adding option XXXX, will base that. of probably we a the what rigs north in where that growing, addition a do we XXX and the the we mentioned mentioned we Since with will one situation And I think reserve and continue to that, will be

accelerate for of rigs mainly terms So oil just what in to If and the much barrel probably refinery in question treatment XX,XXX want go cash have plan, we facilities, X facilities, to development, around will today, terms we really handle with plan scenario the we will issues, drill can that facilities, day plants. on, additional scenario no of CapEx additional some this is means rigs, and X that a go with generating per we without have incremental it's small stations CapEx. very fill, and batteries to in that be adding more In our what facilities. to CapEx we call that our That we is pace.

Unidentified Analyst

M&A right finally, And you or now? are not looking Great. really into

Miguel Galuccio

look what to and we it's exercise are that we We -- the we have. with we to is that an a and do. difficult just economics at The that quality always one the focus we are have. element It's, resources that the very M&A. of have of do, quality pragmatic. very the good us, that And that also, opportunity and of to to we We what reality even to find we continuous we the know for that agile match very And have. keep is to compare keep looking probably just

that, So always saying yes, we're looking.

we proved It to in what have We hand. have that looked it. get even never at close

answer. is next in So years. give Today, you this Palo short just in focus we're is to the Bajada a where Muerta. the where going concentrated Vaca to we X Oeste, in be are del And

we pure doing focused do. also very a a play, value in player, We see what being

Operator

further And questions. no showing I'm

with closing call turn any I'll back So to that, over the management for remarks.

Miguel Galuccio

guys, Well, much you for very thank participating.

We are here truly of having costs excited pandemic with opportunity, really growth plan. XXXX a revising being and our happy the very taken and of as tackling an

a your for you have thank your good participation, support. and So for day. you Thank

Operator

gentlemen, thank you in conference. today's you may now conclude program, participating disconnect. This and does for Ladies and the

Vista Energy, S.A.B. de C.V. (VIST) 26 Feb 212020 Q4 Earnings call transcript