1. Vista has acquired 100% of PEPASA for $900 million. 2. LACh holds 280 MMboe P1 reserves with potential for 400 new wells. 3. Vista strengthens market position in Vaca Muerta through low-cost asset. 4. Acquisition enhances long-term profitability and cash flow. 5. Strong production rates are indicated by LACh with low lifting costs.
The acquisition of a high-quality asset can significantly enhance VIST's production capacity and profitability. Historical acquisitions in the sector often lead to increased stock prices due to expanded reserves and market confidence.
This acquisition positions Vista to capitalize on the growing oil demand and strengthens its output capabilities in an important sector. Given the current macroeconomic conditions favoring oil production, this development is crucial for VIST's future success.
The positive effects of the acquisition on VIST's production and cash flow will unfold over several years, especially as new wells are drilled. Similar cases in the oil sector demonstrate that long-term investments yield greater returns as operational efficiencies ramp up.
Vista Energy, S.A.B. de C.V. ("Vista") (NYSE: VIST in the New York Stock Exchange; BMV: VISTA in the Mexican Stock Exchange) announced today that its subsidiary Vista Energy Argentina S.A.U ("Vista Argentina") has acquired 100% of the capital stock of Petronas E&P Argentina S.A. ("PEPASA"), which holds a 50% working interest in La Amarga Chica unconventional concession ("LACh"), located in Vaca Muerta, Argentina, from Petronas Carigali Canada B.V. and Petronas Carigali International E&P B.V. (jointly, the "Sellers") (the "Transaction"). The purchase price is comprised of US$ 900 million in cash, US$ 300 million in deferred cash payments and 7,297,507 American Depositary Shares representing Vista's series A shares ("ADSs") paid to the Sellers and subject to lock-up restrictions that will expire (i) with respect to 50% of the ADSs on October 15, 2025, and (ii) with respect to the remaining 50% of the ADSs on April 15, 2026. The deferred cash payments will be paid 50% on April 15, 2029, and 50% on April 15, 2030, without accruing interest.
LACh spans across 46,594 acres in the black oil window of Vaca Muerta. As of December 31, 2024, it had 247 wells on production. In addition, as of December 31, 2023, LACh had 280 million barrels of oil equivalent ("MMboe") of P1 reserves according to the Argentine Secretary of Energy (at 100% working interest). During the fourth quarter of 2024, LACh produced 79,543 barrels of oil equivalent per day ("boe/d") at 100% working interest, of which 71,471 barrels per day ("bbl/d") were oil, according to the Argentine Secretary of Energy. Vista estimates LACh could potentially hold 400 new well locations to be drilled in its inventory (at 100% working interest). The remaining 50% of LACh is held by YPF S.A. ("YPF"), which is the operator of the concession.
Miguel Galuccio, Vista's Chairman and CEO, commented, "With this acquisition we gain significant scale in Vaca Muerta with a premium block that has growing production and low operating costs, enabling the acceleration of our long-term plan and strengthening our free-cashflow profile. The acquisition both increases our profitability and enhances our portfolio of ready-to-drill locations in the core area of Vaca Muerta. Importantly, in the current global macro and oil price environment we are consolidating a high-margin, low-breakeven asset, with strong synergies with our ongoing operation, reflecting our constructive long-term view on crude oil demand and supply dynamics. I firmly believe this represents a unique opportunity to create long-term value for our shareholders."
In order to carry out the Transaction, own funds and funds from the Transaction financing were used, consisting of a credit agreement between Vista Argentina as borrower and Banco Santander, S.A. as lender, for a total amount of US$ 300 million. This credit agreement has a term of four years.
PEPASA is a company incorporated under the laws of Argentina and founded in 2014. PEPASA's main asset is a 50% working interest in the unconventional hydrocarbons concession La Amarga Chica, located in the Vaca Muerta play in the Neuquina Basin, Argentina. For the development of the asset, PEPASA entered into a joint venture with YPF, the operator of the concession. The LACh unconventional concession expires in December 2049.
Driven by oil and gas production from La Amarga Chica block, during 2024, PEPASA's total revenues were US$ 909 million. In addition, Adj. EBITDA of PEPASA during 2024 was US$ 667 million, leading to an Adj. EBITDA margin of 73%. Net profit for the period was US$ 349 million for the fiscal year 2024.
| Key Stats | 100% WI | 50% WI |
|---|---|---|
| Surface area, acres | 46,594 | 23,297 |
| Total Production, boe/d | 79,543 | 39,772 |
| Oil production, bbl/d | 71,471 | 35,735 |
| P1 reserves, MMboe | 280 | 140 |
| Wells on production | 247 | 124 |
| Lifting cost, $/boe | 4.1 | 4.1 |
Vista is an oil and gas company fully focused on the Vaca Muerta play located in the Neuquina Basin, Argentina. Founded in 2017, it is currently listed on the Bolsa Mexicana de Valores (Ticker: VISTA) and the New York Stock Exchange (Ticker: VIST). According to the Argentine Secretary of Energy, during 2024 Vista was the second largest oil producer in Vaca Muerta, and the third largest oil producer of Argentina. Vista constitutes a unique pure play public investment opportunity in Vaca Muerta.
| Description | Year ended December 31, 2024 | Pro forma adjustments 2024 | Year ended December 31, 2024 Proforma | |
|---|---|---|---|---|
| Revenues from sales to clients | 1,647,768 | 908,923 | 2,556,691 | |
| Cost of sales: | Operating costs | (116,526) | (55,119) | (171,645) |
| Fluctuation in crude oil inventory | 1,720 | (422) | 1,298 | |
| Royalties and other | (243,950) | (104,245) | (348,195) | |
| Depreciation, depletion and amortization | (437,699) | (262,081) | (699,780) | |
| Gross profit | 817,743 | 487,056 | 1,304,799 | |
| Cost of sales | (140,334) | (45,324) | (185,658) | |
| Overhead and administration costs | (108,954) | (25,395) | (134,349) | |
| Operating income | 625,390 | 404,652 | 1,030,042 | |
| Net income for the year | 477,521 | 348,782 | 826,303 |
Any statements contained herein or in the attachments hereto regarding Vista or any of its subsidiaries that are not historical or current facts are forward-looking statements. These forward-looking statements convey Vista's current expectations or forecasts of future events. Vista undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated events. Forward-looking statements regarding Vista involve known and unknown risks, uncertainties and other factors that may cause Vista's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the "Risk Factors," "Forward-Looking Statements" and other applicable sections of Vista's annual report filed with the SEC on Form 20-F and other applicable filings with the SEC and Vista's latest annual report available on the Mexican Stock Exchange's (Bolsa Mexicana de Valores, S.A.B. de C.V.) website: www.bmv.com.mx, the Mexican National Banking and Securities Commission's (Comisión Nacional Bancaria y de Valores) website: www.gob.mx/cnbv and our website: www.vistaenergy.com.
Investor Relations: [email protected]
Argentina: +54 11 3754 8500
Mexico: +52 55 1555 7104
1 Financial performance figures in this paragraph based on Unaudited pro forma consolidated statement of profit or loss and other comprehensive income for the year ended December 31, 2024, shown above. 2 Except P1 Reserves, which are stated as of December 31, 2023, according to filing with the Argentine Secretary of Energy, and lifting cost, which is stated for FY-2024.
SOURCE Vista Energy, S.A.B. de C.V.