Vista Energy, S.A.B. de C.V 6-K, filed Feb 25, 2021
Vista Energy, S.A.B. de C.V. (VIST)
About this 6-K
Vista Energy, S.A.B. de C.V filed this 6-K on February 25, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER SECURITIES EXCHANGE ACT OF 1934
For the month of February 2021
Commission File No. 001-39000
Vista Oil & Gas, S.A.B. de C.V.
(Exact Name of the Registrant as Specified in the Charter)
N.A.
(Translation of Registrant’s Name into English)
Calle Volcán 150, Floor 5
Colonia Lomas de Chapultepec, Alcaldía Miguel Hidalgo
Mexico City, 11000
Mexico
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:
Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.
Contents of this Form 6-K
This Form 6-K for Vista Oil & Gas, S.A.B. de C.V. (“Vista” or the “Company”) contains the following exhibit:
Exhibit 1: Vista Oil & Gas Full Year and Fourth Quarter of 2020 Results.
Forward-Looking Statements
Any statements contained herein regarding Vista 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. 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 prospectus filed with the United States Securities and Exchange Commission (“SEC”) and other applicable filings with the SEC and the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores).
Enquiries:
Investor Relations
ir@vistaoilandgas.com
Mexico: +52.55.1167.8250
Argentina: +54.11.3754.8532
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: February 25, 2021
| VISTA OIL & GAS, S.A.B. DE C.V.
| ||
| By: | ||
| /s/ Alejandro Cherñacov | ||
|
Name: |
Alejandro Cherñacov | |
|
Title: |
Strategic Planning and Investor Relations Officer | |
Exhibit 1
| Vista Oil & Gas Results of 2020 and Fourth Quarter of 2020 |
February 25, 2021, Mexico City, Mexico
Vista Oil & Gas, S.A.B. de C.V. (“Vista” or the “Company”) (NYSE: VIST in the New York Stock Exchange; BMV: VISTA in the Mexican Stock Exchange), reported today financial and operational results for Full Year 2020 and Q4 2020.
Full year 2020 highlights:
| ◾ | In a challenging year such as 2020, Vista made substantial achievements: we quickly established a Covid-19 protocol to protect employees, made structural reductions to development and operating costs, unlocked export markets as international oil demand recovered, and returned to a profitable growth path during the second half of the year. |
| ◾ | Total proved reserves1 as of December 31, 2020 totaled 128.1 MMboe, a 26% increase compared to the 101.8 MMboe proved reserves as of December 31, 2019. The implied reserves replacement ratio was 371%, while the oil reserves replacement ratio was 512%. The increase was driven by the addition of 30 new well locations, an improvement of the expected ultimate recovery (EUR) per well in Bajada del Palo Oeste and the reduction of lifting cost extending well economic limit. |
| ◾ | During 2020, total production was 26,594 boe/d, composed of 18,324 bbl/d of oil, representing 69% of the total production, 1.22 MMm3/d of natural gas, representing 29% of the total production, and 589 boe/d of NGL, representing the remaining 2%. Total production in 2020 decreased 9% vis-à-vis total production of 2019, when total production was 29,112 boe/d. |
| ◾ | During 2020, we completed and tied-in three 4-well pads (pad #3, #4 and #5), adding 12 shale oil wells and taking the shale oil well count in Bajada del Palo Oeste to 20 at year end. During 2020, total shale production reached 8,528 boe/d, out of which 8,385 boe/d correspond to the shale production of Bajada del Palo Oeste, that reached 20.2 Mboe/d by the end of the year. |
| ◾ | During 2020 the average realized crude oil price was 37.2 $/bbl, 30% lower than during 2019, driven by a reduction in oil demand in the context of the Covid-19 pandemic, which caused a contraction in Brent prices. Realized natural gas price during 2020 was 2.0 $/MMbtu, 38% lower than during 2019 mainly driven by a lower price in the industrial segment due to softer demand. |
| ◾ | Total revenue during 2020 was 273.9 $MM, a 34% decline compared to 416.0 $MM during 2019. The decrease was mainly driven by lower realized prices and lower production. |
| ◾ | During 2020 we further reduced the lifting cost per boe by revising more than 20 oilfield services contracts, which led to a re-based cost structure. Operating expenses per boe were 9.0 $/boe during 2020, a 17% reduction compared to 10.8 $/boe during 2019. |
| ◾ | Adjusted EBITDA for 2020 was 95.6 $MM, resulting in an Adjusted EBITDA margin of 35%. Such figure represents a 44% decline compared to an Adjusted EBITDA of 170.9 $MM during 2019, in which we had an Adjusted EBITDA margin of 41%. |
| ◾ | Total 2020 CAPEX was 223.9 $MM, of which 177.1 $MM were invested in the Company’s shale oil operated projects, 4.8 $MM in conventional projects and 58.0 $MM in facilities, other projects and non-operated conventional concessions. |
1 Please refer to glossary for definition
Page 2
| ◾ | Net loss during 2020 totaled 102.7 $MM, compared to 32.7 $MM during 2019. In addition to the decrease in Adjusted EBITDA by 75.3 $MM, the 2020 net loss was mainly driven by (i) a variation in Income Tax expense, which reached a gain of 10.1 $MM during 2020 compared to a loss of 16.2 $MM the previous year; (ii) a loss in Financial Results of 42.9 $MM during 2020, compared to a loss of 31.1 $MM during 2019; (iii) Depreciation, depletion and amortization equal to 147.7 $MM during 2020 compared to 153.0 $MM the previous year; and (iv) a loss for Impairment of long-lived assets of 14.4 $MM, compared to nil the previous year. |
Q4 2020 highlights:
| ◾ | Q4 2020 total production was 30,648 boe/d, a 20.7% increase q-o-q and a 2.1% increase compared to Q4 2019 total production, whilst oil production increased 31.5% sequentially and 23.2% y-o-y. Both increases were driven by the solid productivity of pad #4 and the early tie-in of pad# 5, which added 4 shale oil wells each. |
| ◾ | In Q4 2020, shale wells contributed with a production of 14,563 boe/d, out of which 14,488 boe/d correspond to shale oil wells in Bajada del Palo Oeste. |
| ◾ | Revenues in Q4 2020 were 79.5 $MM, 13.8% above the 69.9 $MM generated in Q3 2020, mainly driven by the aforementioned production increase. Revenues in Q4 2020 decreased 17.5% compared to the 96.4 $MM generated in Q4 2019, impacted by both lower production and realized prices. In addition, we kept tapping the international markets, and sold 17% of oil volumes outside Argentina. |
| ◾ | In Q4 2020, the average realized crude oil price was 40.1$/bbl, a 2.6% increase compared to Q3 2020. In turn, Q4 2020 average realized crude oil price was 16.6% lower compared to the average realized crude oil price of Q4 2019. |
| ◾ | Realized natural gas price for Q4 2020 was 1.6 $/MMBTU, resulting in 27.3% decrease both sequentially and y-o-y, mainly driven by lower realized prices in the industrial segment (in turn, driven by softer demand due to lower industrial activity amid Covid-19 lockdown restrictions) and softer prices in the regulated distribution segment. |
| ◾ | Total lifting cost during Q4 2020 was 22.6 $MM, a 12.2% decrease y-o-y and a 1.9% decrease q-o-q. The combination of a lower cost structure and the increase in production levels resulted in a lifting cost per boe during Q4 2020 of 8.0 $/boe, representing a 13.9% decrease compared to the average lifting cost per boe in Q4 2019 and a 18.7% decrease compared to the average lifting cost per boe during the previous quarter. |
| ◾ | Adjusted EBITDA for Q4 2020 was 35.9 $MM, a sequential increase of 48.3% and a 0.6% increase compared to Q4 2019. In a context of low realized prices, and after ramping up the shale oil production, we delivered an Adjusted EBITDA margin of 45%, 8p.p. and 10p.p. above Adjusted EBITDA margin in Q4 2019 and Q3 2020, respectively. |
| ◾ | During Q4 2020, we tied-in pads #4 and #5 to continue the Vaca Muerta development in Bajada del Palo Oeste, and we tied-in pad #6 in February 2021. We drilled, completed and tied-in 4-well pads #5 and #6 with improved efficiency, achieving a 37% reduction in cost per lateral foot and a 45% decrease in completion cost per stage, in both cases when comparing pad #6 to pad #1, which was completed in 2019. This improvement resulted in an average well cost (normalized to 2,800 meters lateral length and 47 stages) of 10.9 $MM for pad #5 and 9.9 $MM for pad #6, 7% and 15% below the new well design budget cost, respectively and 4% and 13% below the average well cost of pad #4, respectively. |
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| ◾ | In Q4 2020, capex was 97.5 $MM, mainly driven by the drilling and completion activity in Bajada del Palo Oeste during the quarter. |
| ◾ | We maintained a solid financial position with cash at period end of 202.9 $MM. We also achieved a positive cash flow from operations of 27.0 $MM. In addition, after ramping activity, cash flow from investing activities reached an outflow of 55.9 $MM. Finally, financing activities totaled a cash inflow of 6.8 $MM during Q4 2020, resulting in a total cash outflow during Q4 2020 of 22.0 $MM. Gross debt totaled 539.8 $MM as of quarter end, resulting in a net debt of 336.8 $MM. During the quarter we also raised 20 $MM in the Argentine capital markets. |
| ◾ | Q4 2020 net loss was 19.7 $MM, impacted by: (a) financial results for a total loss of 13.4 $MM, compared to a loss of 21.2 $MM in Q4 2019, (b) an impairment of 9.5 $MM, and (c) an increase in Depreciation, depletion and amortization to 44.9 $MM compared to 38.4 $MM in Q4 2019. |
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Vista Oil & Gas FY 2020 and Q4 2020 results
Reserves
Proved reserves as of December 31, 2020 were 128.1 MMboe, a 26% increase compared to the 101.8 MMboe as of one year earlier. Proved reserves were certified by DeGolyer and MacNaughton (for Argentina assets) and Netherland, Sewell International, S. de R.L. de C.V. (for Mexico assets), under SEC methodology.
The increase in proved reserves was mainly driven by:
| ● | the addition of 30 new shale oil well locations in Bajada del Palo Oeste |
| ● | the increment of EUR per well by ~10% based on current producing well productivity |
| ● | the extension of well life due to a 10% reduction in lifting cost |
The proved reserves as of December 31, 2020 were calculated with a price of 42.0 $/bbl for oil, 19.2 $/boe for LPG and 2.81 $/Mcf, compared to 55.9 $/bbl for oil, 22.8 $/boe for NGL and 3.72 $/Mcf as of December 31, 2019. The current producing well productivity and development cost reductions offset the 25% decrease in the oil price assumption.
As of December 31, 2020, the developed proved reserves totaled 53.3 MMboe, a 7% increase compared to 49.7 MMboe as of December 31, 2019, mainly driven by 6 additional new well locations. Additionally, we booked 74.9 MMboe proved undeveloped reserves, a 44% increase y-o-y, when we booked 52.1 MMboe, mainly driven by 24 additional new well locations.
The table below details the proved reserves breakdown by type:
|
Proved reserves breakdown by type
|
2020
|
2019
|
p y/y (MMboe)
|
p y/y (%)
| ||||||||||||
| Proved developed reserves |
53.3 | 49.7 | 3.6 | 7% | ||||||||||||
| Proved undeveloped reserves
|
74.9
|
52.1
|
22.8
|
44%
| ||||||||||||
|
Total proved reserves
|
128.1
|
101.8
|
26.3
|
26%
| ||||||||||||
The implied reserves replacement ratio was 371%, whereas reserves life ratio was 13.2 years, as shown below:
|
Reserves replacement ratio
|
Oil (MMbbl)(1)
|
Natural Gas (MMboe)
|
Total (MMboe)
| |||||||||
| Proved reserves YE 2019 |
71 | 31 | 102 | |||||||||
| (-) Production |
(6.9) | (2.8) | (9.7) | |||||||||
| (+) Additions
|
35.4
|
0.7
|
36.1
| |||||||||
| Proved reserves YE 2020
|
99.5
|
28.6
|
128.1
| |||||||||
|
|
||||||||||||
| Reserves replacement ratio
|
512%
|
23%
|
371%
| |||||||||
| Reserves life ratio
|
14.4
|
10.2
|
13.2
| |||||||||
| (1) | Oil includes crude oil and condensate and NGL; NGLs represent less than 1% of total reserves |
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In addition, the table below details the proved reserves breakdown by concession:
| Net reserves by concession
|
Oil (MMbbl)(1)
|
Natural Gas
|
Total
| |||||||||
|
Bajada del Palo Oeste Conventional |
3.7 | 6.4 | 10.1 | |||||||||
| Bajada del Palo Oeste Shale |
75.2 | 13.6 | 88.8 | |||||||||
| Bajada del Palo Oeste Total |
78.9 | 20.0 | 98.9 | |||||||||
| Bajada del Palo Este |
1.2 | 1.0 | 2.2 | |||||||||
| Charco del Palenque |
1.0 | 0.2 | 1.2 | |||||||||
| Coirón Amargo Norte |
0.8 | 0.2 | 1.0 | |||||||||
| Coirón Amargo Sur Oeste |
1.3 | 0.2 | 1.5 | |||||||||
| Entre Lomas Rio Negro |
5.4 | 4.2 | 9.6 | |||||||||
| Entre Lomas Neuquén |
1.8 | 1.0 | 2.8 | |||||||||
| Jagüel de los Machos |
3.7 | 1.0 | 4.7 | |||||||||
| Jarilla Quemada |
0.0 | 0.0 | 0.0 | |||||||||
|
25 de Mayo–Medanito Sudeste |
5.2 | 0.3 | 5.5 | |||||||||
| Acambuco |
0.0 | 0.4 | 0.4 | |||||||||
| CS-01 |
0.2 | 0.0 | 0.2 | |||||||||
| A-10
|
0.0
|
0.1
|
0.1
| |||||||||
| Total
|
99.5
|
28.6
|
128.1
| |||||||||
| (1) | Oil includes crude oil and condensate and NGL; NGLs represent less than 1% of total reserves |
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Production
Total average net daily production
| Q4-20 | Q3-20 | Q4-19 | p y/y | p q/q | 2020 | 2019 | p y/y | |||||||||||
|
|
|
|
|
|
|
|
| |||||||||||
| Total (boe/d) |
30,648 | 25,394 | 30,026 | 2.1% | 20.7% | 26,594 | 29,112 | (8.6)% | ||||||||||
| Oil (bbl/d) |
23,056 | 17,534 | 18,720 | 23.2% | 31.5% | 18,324 | 18,244 | 0.4% | ||||||||||
| Natural Gas (MMm3/d) |
1.12 | 1.16 | 1.69 | (33.5)% | (2.7)% | 1.22 | 1.62 | (24.5)% | ||||||||||
| NGL (bbl/d)
|
518
|
587
|
675
|
(23.2)%
|
(11.7)%
|
589
|
700
|
(15.9)%
| ||||||||||
Average daily production during Q4 2020 was 30,648 boe/d, comprised of 23,056 bbl/d of oil, representing 75.2% of total production, 1.12 MMm3/d of natural gas and 518 boe/d of NGL.
Total operated production during Q4 2020 was 30,224 boe/d, which amounts to 98% of total production. Total shale production was 14,563 boe/d, including 14,488 boe/d of shale operated production in Bajada del Palo Oeste and 76 boe/d of shale non-operated production in Coirón Amargo Sur Oeste.
Q4 2020 shale production was boosted by the tie-in of pad#4 in September 2020. Additionally, we tied-in 4-well pads #5 and #6 in late November 2020 and in February 2021, respectively. In pads #5 and #6 we landed two wells in La Cocina and two in Orgánico. Pad #5 was completed with 196 stages, whereas pad #6 was completed with 223 stages.
Q4 2020 Average net daily production by asset
| Interest
|
Oil
|
Natural Gas
|
NGL
|
Total
|
% Total daily
| |||||||
|
|
|
|
|
|
|
| ||||||
|
Net production per concession
|
23,056
|
1.12
|
518
|
30,648
|
100%
| |||||||
|
|
|
|
|
|
|
| ||||||
| Entre Lomas |
100% | 3,434 | 0.21 | 445 | 5,224 | 17% | ||||||
| Bajada del Palo Este |
100% | 369 | 0.07 | 60 | 896 | 3% | ||||||
| Bajada del Palo Oeste (conventional) |
100% | 866 | 0.36 | - | 3,135 | 10% | ||||||
| Bajada del Palo Oeste (shale) |
100% | 13,022 | 0.23 | - | 14,488 | 47% | ||||||
| Agua Amarga |
100% | 230 | 0.04 | 13 | 488 | 2% | ||||||
| 25 de Mayo-Medanito |
100% | 2,308 | 0.02 | - | 2,460 | 8% | ||||||
| Jagüel de los Machos |
100% | 2,344 | 0.12 | - | 3,123 | 10% | ||||||
| Coirón Amargo Norte |
85% | 266 | 0.00 | - | 282 | 1% | ||||||
| Águila Mora (shale) |
90% | - | 0.00 | - | - | 0% | ||||||
| Acambuco (non-operated) |
1.5% | 23 | 0.02 | - | 174 | 1% | ||||||
| Coirón Amargo Sur Oeste (shale / non-operated) |
10% | 70 | 0.00 | - | 76 | 0% | ||||||
| Concessions CS-01, A-10 and TM-01 (Mexico) |
50% | 124 | 0.03 | - | 301 | 1% | ||||||
During Q4 2020, Entre Lomas (including Entre Lomas Neuquén and Entre Lomas Río Negro) concessions represented 17% of total production, 25 de Mayo-Medanito and Jagüel de los Machos concessions represented 18%, Bajada del Palo Oeste represented 58%, Bajada del Palo Este block represented 3%, Agua Amarga (Jarrilla Quemada and Charco del Palenque concessions) represented 2%, and Coirón Amargo Norte represented 1% of the quarterly total production. The production from concessions in Mexico represented 1% of total average daily production. The remaining 1% was production from Acambuco and CASO, non-operated concessions in Argentina. For further information on production, please see Annex “Historical operational data”.
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Revenues
| Revenues per product – in $MM | Q4 2020 | Q3 2020 | Q4 2019 | p y/y | p q/q | 2020 | 2019 | p y/y | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| Total |
79.5 | 69.9 | 96.4 | (17.5)% | 13.8% | 273.9 | 416.0 | (34.1)% | ||||||||
| Oil |
72.5 | 60.4 | 82.8 | (12.5)% | 19.9% | 236.6 | 338.3 | (30.1)% | ||||||||
| Natural Gas |
6.2 | 8.6 | 13.1 | (52.5)% | (27.8)% | 33.6 | 71.5 | (53.1)% | ||||||||
| NGL and others |
0.9 | 0.8 | 0.5 | 61.4% | 5.6% | 3.8 | 6.2 | (39.0)% | ||||||||
Average Realized Prices
| Product | Q4 2020 | Q3 2020 | Q4 2019 | p y/y | p q/q | 2020 | 2019 | p y/y | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| Oil ($/bbl) |
40.1 | 39.1 | 48.1 | (16.6)% | 2.6% | 37.2 | 53.0 | (29.8)% | ||||||||
| Natural Gas ($/MMBTU) |
1.6 | 2.2 | 2.2 | (27.3)% | (27.3)% | 2.0 | 3.3 | (39.4)% | ||||||||
| NGL ($/tn) |
212 | 177 | 234 | (9.4)% | 19.5% | 205 | 272 | (24.6)% | ||||||||
During Q4 2020, total revenues were 79.5$MM, 17.5% lower than Q4 2019, but 13.7% higher q-o-q, driven by crude oil revenues.
Crude oil revenues in Q4 2020 totaled 72.5 $MM, representing 91.1% of total revenues, a 12.5% decrease compared to Q4 2019, impacted by lower realized prices, but a 19.9% increase compared to Q3 2020, mainly driven by the boost in shale oil production. During Q4 2020, we exported 17% of the sales of crude oil volumes, and the balance was sold to domestic refineries in Argentina. Resulting average realized oil price was 40.1 $/bbl, 16.6% below Q4 2019 but 2.6% above Q3 2020, in both cases impacted by variations in the Brent price, which decreased 27% y-o-y and increased 4% sequentially.
Natural gas revenues represented 7.8% of total revenues. During Q4 2020, sales were made to a diversified portfolio of industrial clients, representing 44% of total natural gas volumes, at an average realized price of 1.2 $/MMBTU, 40% to distribution companies and CNG clients at an average price of 2.2 $/MMBTU, and the 16% remaining sales were made to the power generation segment at an average price of 2.1 $/MMBTU. The average realized natural gas price for the quarter was 1.6 $/MMBTU, a 27.3% decrease compared to Q4 2019 and Q3 2020, mainly driven by lower realized prices in the industrial segment (in turn, driven by softer demand due to lower industrial activity amid Covid-19 lock down restrictions) and softer prices in the regulated distribution segment.
NGL sales were 0.9 $MM during Q4 2020, representing 1.1% of total sales. NGL volumes were allocated to the Argentine market at an average price of 212 U.S. dollars per ton ($/tn).
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Lifting Cost
| Q4 2020 | Q3 2020 | Q4 2019 | p y/y | p q/q | 2020 | 2019 | p y/y | |||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| Lifting Cost ($MM) |
22.6 | 23.0 | 25.7 | (12.2)% | (1.9)% | 88.0 | 114.4 | (23.1)% | ||||||||
| Lifting cost ($/boe) | 8.0 | 9.9 | 9.3 | (13.9)% | (18.7)% | 9.0 | 10.8 | (16.7)% | ||||||||
During Q4 2020, a quarter during which we were back at Q4 2019 activity levels, total lifting cost was 22.6 $MM, a 12.2% decrease y-o-y, and a 1.9% decrease q-o-q, which reflects the savings generated by Vista’s rebased cost structure. The resulting average lifting cost per boe in Q4 2020 was 8.0 $/boe, a 13.9% decrease compared to Q4 2019, which reflects cost efficiencies at similar production levels, and a 18.7% decrease compared to Q3 2020, impacted by a higher production level with similar lifting costs .
Adjusted EBITDA
| Adjusted EBITDA reconciliation ($MM) | Q4 2020 | Q3 2020 | Q4 2019 | p y/y | p q/q | 2020 | 2019 | p y/y | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| Net (loss) / profit for the period |
(13.8) | (28.4) | (44.2) | (102.7) | (32.7) | |||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| (+) Income tax (expense) / benefit |
(17.4) | (5.6) | 17.8 | (10.1) | 16.2 | |||||||||||
| (+) Financial results, net |
13.4 | 12.9 | 21.2 | 42.9 | 31.1 | |||||||||||
| (+) Investments results |
- | - | 0.1 | - | - | |||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| Operating profit |
(17.8) | (21.1) | (5.2) | (70.0) | 14.6 | |||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| (+) Depreciation, depletion and amortization |
44.9 | 38.9 | 38.4 | 147.7 | 153.0 | |||||||||||
| (+) Restructuring expenses(1) |
(0.6) | 1.5 | 2.5 | 3.5 | 3.2 | |||||||||||
| (+) Impairment of long - lived assets |
9.5 | 5.0 | - | 14.4 | - | |||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| Adjusted EBITDA(2) |
35.9 | 24.2 | 35.7 | 0.6% | 48.3% | 95.6 | 170.9 | (44.0)% | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
| Adjusted EBITDA Margin (%)(3) | 45% | 35% | 37% | +8p.p. | +10p.p. | 35% | 41% | (6)p.p. | ||||||||
(1) In Q4 2020 includes a gain for Bargain purchase on business combination of 1.4 $MM
(2) Adj. EBITDA = Net (loss) / profit for the period + Income tax (expense) / benefit + Financial results, net + Depreciation, depletion and amortization + Restructuring and Reorganization expenses + Loss for impairment of assets+ Other adjustments
| (3) | Change expressed as a difference in percentage points. |
Adjusted EBITDA was 35.9 $MM in Q4 2020, a 0.6% increase compared to Q4 2019. Adjusted EBITDA was boosted by higher oil production amid flat lifting cost, leading to a 48% growth q-o-q. Adjusted EBITDA margin was 45%, improving 10 p.p. sequentially and 8 p.p. vis-à -vis Q4 2019. This Adj. EBITDA margin was achieved with a realized crude oil price of 40.1 $/bbl, which is 17% down y-o-y.
Page 9
Net Profit / Loss
Q4 2020 net loss was 13.8 $MM, impacted by: (a) financial results for a loss of 13.4 $MM, (b) an impairment of 9.5 $MM, and (c) an increase in Depreciation, depletion and amortization to 44.9 $MM compared to 38.4 $MM in Q4 2019.
As of December 2020, Vista performed an impairment test that resulted in a 9.5 $MM impairment loss, mainly driven by prices of crude oil, natural gas and NGL and an increase in the discount rate.
Financial results in Q4 2020 resulted in a total loss of 13.4 $MM, compared to a loss of 21.2 $MM in Q4 2019. This change was mainly driven by the loss for the valuation of warrants.
Capex
Capex during Q4 2020 was 97.5 $MM, which reflects the activity of the Vaca Muerta development in Bajada del Palo Oeste. During the quarter, we invested 82.5 $MM in the Vaca Muerta project in Bajada del Palo Oeste, of which 75.3 $MM correspond to drilling and completion of wells, 7.2 $MM to development of facilities and less than 0.1 $MM to workovers. Additionally, capex in conventional assets, non-operated assets, other facilities, IT projects, and G&G studies, accounted for the remaining 15.0 $MM.
Financial overview
During Q4 2020, we maintained a solid balance sheet in a low demand and price environment, with a cash position at the end of the quarter of 202.9 $MM. We also achieved a strong cash flow from operating activities of 27.0 $MM, a 41% increase q-o-q. In addition, after ramping up activity, cash flow from investing activities was 55.9 $MM (when CAPEX was 97.5 $MM, as detailed above). Gross debt totaled 539.8 $MM as of quarter end, resulting in a net debt of 336.8 $MM.
Additionally, in Q4 2020 we raised 20 $MM in a two-series bond issuance in the Argentina capital market, as follows:
| - | Reopening of ON class V10 $MM in a dollar-linked bond, 32 months bullet, with zero coupon at a price of $ 0.9685 |
| - | ON class VI:10 $MM in a dollar-linked bond, 48 months bullet, with a 3.24% coupon paid quarterly |
In January 2021, we repaid a 45 $MM installment of the term loan, 27 $MM of that installment were refinanced for 18 months in an Argentine peso loan that we had entered into Q3 2020, and 3 $MM were extended for 18-months at the same conditions of the term loan. In addition, we entered into an agreement to refinance the payment of 38 $MM corresponding to the July 2021 maturity of the term loan with a new 18-months Argentine peso loan. The remaining 7 $MM will be settled in July 2021.
Page 10
Outstanding bonds
| Instrument
|
Issuer
|
Issue date
|
Maturity
|
Gross proceeds
|
Type
|
Interest
|
Currency
|
Market
| ||||||||
| ON class I |
Vista Oil & Gas Argentina S.A.U. |
31/7/2019 | 31/7/2021 | 50 | Bullet at maturity | 7.88% | USD | BCBA Argentina | ||||||||
| ON class II |
Vista Oil & Gas Argentina S.A.U. |
7/8/2019 | 7/8/2022 | 50 | Bullet at maturity | 8.50% | USD | BCBA Argentina | ||||||||
| ON class III |
Vista Oil & Gas Argentina S.A.U. |
21/2/2020 | 21/2/2024 | 50 | Bullet at maturity | 3.50% | USD | BCBA Argentina | ||||||||
| ON class IV |
Vista Oil & Gas Argentina S.A.U. |
7/8/2020 | 7/2/2022 | 10 | Bullet at maturity | BADLAR + 1.37% |
ARS | BCBA Argentina | ||||||||
| ON class V(1) |
Vista Oil & Gas Argentina S.A.U. |
7/8/2020 | 7/8/2023 | 30 | Bullet at maturity | Zero coupon |
ARS in USD- linked |
BCBA Argentina | ||||||||
| ON class VI |
Vista Oil & Gas Argentina S.A.U. |
4/12/2020 | 4/12/2024 | 10 | Bullet at maturity | 3.24% | ARS in USD- linked |
BCBA Argentina | ||||||||
(1) 20 $MM were issued on August 7, 2020 at a price of $ 1.0000, while the remaining 10 $MM were issued on December 4, 2020 at a price of $ 0.9685
Page 11
Vista Oil & Gas S.A.B. de C.V.
Historical operational data
Average daily production by concession, totals and by product
| Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | 2020 | 2019 | ||||||||
|
|
|
|
|
|
|
|
| |||||||
| Total production by field (Mboe/d) |
30,648 | 25,394 | 23816.98 | 26,485 | 30,026 | 26,594 | 29,112 | |||||||
|
|
|
|
|
|
|
|
| |||||||
| Entre Lomas |
5,224 | 5,629 | 6,289 | 6,804 | 7,648 | 5,984 | 8,438 | |||||||
| Bajada del Palo Este |
896 | 830 | 1,036 | 1,122 | 1,281 | 971 | 1,377 | |||||||
| Bajada del Palo Oeste (conventional) |
3,135 | 3,327 | 3,679 | 4,661 | 5,499 | 3,698 | 4,828 | |||||||
| Bajada del Palo Oeste (shale) |
14,488 | 8,320 | 5,065 | 5,599 | 6,687 | 8,385 | 4,922 | |||||||
| Agua Amarga (Jarilla Quemada, Charco del Palenque) |
488 | 373 | 476 | 596 | 621 | 483 | 674 | |||||||
| 25 de Mayo-Medanito |
2,460 | 2,663 | 2,881 | 2,879 | 3,177 | 2,720 | 3,534 | |||||||
| Jagüel de los Machos |
3,123 | 3,313 | 3,525 | 3,705 | 3,991 | 3,415 | 4,306 | |||||||
| Coirón Amargo Norte |
282 | 366 | 268 | 260 | 214 | 294 | 257 | |||||||
| Águila Mora (shale) |
0 | 0 | 0 | 197 | 147 | 49 | 37 | |||||||
| Acambuco |
174 | 173 | 178 | 180 | 182 | 176 | 191 | |||||||
| Coirón Amargo Sur Oeste (shale) |
76 | 88 | 102 | 113 | 159 | 94 | 175 | |||||||
| CS-01 |
127 | 140 | 163 | 166 | 210 | 149 | 190 | |||||||
| A-10 |
174 | 173 | 152 | 173 | 189 | 168 | 175 | |||||||
| TM-01 |
0 | 0 | 4 | 29 | 19 | 8 | 5 | |||||||
|
|
|
|
|
|
|
|
| |||||||
| Crude oil production by field (Mboe/d)(1) |
23,056 | 17,534 | 15672.17 | 16,991 | 18,720 | 18,324 | 18,244 | |||||||
|
|
|
|
|
|
|
|
| |||||||
| Entre Lomas |
3,434 | 3,415 | 3,716 | 4,043 | 4,244 | 3,651 | 4,674 | |||||||
| Bajada del Palo Este |
369 | 353 | 463 | 553 | 554 | 434 | 583 | |||||||
| Bajada del Palo Oeste (conventional) |
866 | 819 | 916 | 1,051 | 1,111 | 913 | 1,057 | |||||||
| Bajada del Palo Oeste (shale) |
13,022 | 7,251 | 4,508 | 4,900 | 5,862 | 7,435 | 4,403 | |||||||
| Agua Amarga (Jarilla Quemada, Charco del Palenque) |
230 | 119 | 182 | 242 | 268 | 193 | 321 | |||||||
| 25 de Mayo-Medanito |
2,308 | 2,507 | 2,741 | 2,701 | 2,965 | 2,563 | 3,337 | |||||||
| Jagüel de los Machos |
2,344 | 2,505 | 2,645 | 2,775 | 3,014 | 2,567 | 3,252 | |||||||
| Coirón Amargo Norte |
266 | 326 | 222 | 218 | 184 | 258 | 223 | |||||||
| Águila Mora (shale) |
0 | 0 | 0 | 197 | 147 | 49 | 37 | |||||||
| Acambuco |
23 | 23 | 25 | 24 | 22 | 23 | 23 | |||||||
| Coirón Amargo Sur Oeste (shale) |
70 | 80 | 92 | 96 | 141 | 84 | 156 | |||||||
| CS-01 |
124 | 137 | 159 | 162 | 190 | 124 | 172 | |||||||
| A-10 |
0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
| TM-01 |
0 | 0 | 4 | 29 | 19 | 0 | 5 | |||||||
|
|
|
|
|
|
|
|
| |||||||
| Natural Gas production by field (Mboe/d)(2) |
6,899 | 7,273 | 7539.21 | 8,848 | 10,631 | 7,681 | 10,167 | |||||||
|
|
|
|
|
|
|
|
| |||||||
| Entre Lomas |
1,345 | 1,685 | 2,018 | 2,180 | 2,799 | 1,805 | 3,135 | |||||||
| Bajada del Palo Este |
468 | 430 | 533 | 522 | 673 | 488 | 739 | |||||||
| Bajada del Palo Oeste (conventional) |
2,269 | 2,508 | 2,763 | 3,610 | 4,388 | 2,786 | 3,771 | |||||||
| Bajada del Palo Oeste (shale) |
1,466 | 1,069 | 557 | 699 | 825 | 949 | 519 | |||||||
| Agua Amarga (Jarilla Quemada, Charco del Palenque) |
245 | 244 | 284 | 337 | 336 | 278 | 337 | |||||||
| 25 de Mayo-Medanito |
151 | 156 | 140 | 178 | 212 | 156 | 197 | |||||||
| Jagüel de los Machos |
779 | 807 | 879 | 930 | 978 | 849 | 1,054 | |||||||
| Coirón Amargo Norte |
16 | 40 | 46 | 42 | 31 | 36 | 35 | |||||||
| Águila Mora (shale) |
0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
| Acambuco |
151 | 150 | 154 | 156 | 161 | 153 | 168 | |||||||
| Coirón Amargo Sur Oeste (shale) |
6 | 7 | 10 | 17 | 19 | 10 | 19 | |||||||
Page 12
| CS-01 |
3 | 3 | 4 | 4 | 20 | 3 | 18 | |||||||||||||||||||||
| A-10 |
174 | 173 | 152 | 173 | 189 | 174 | 175 | |||||||||||||||||||||
| TM-01
|
0
|
0
|
0
|
0
|
0
|
0
|
0
| |||||||||||||||||||||
|
NGL production by field (boe/d)
|
518
|
587
|
605.60
|
645
|
675
|
589
|
700
| |||||||||||||||||||||
| Entre Lomas |
445 | 529 | 555 | 582 | 606 | 528 | 629 | |||||||||||||||||||||
| Bajada del Palo Este |
60 | 48 | 41 | 47 | 53 | 49 | 55 | |||||||||||||||||||||
| Bajada del Palo Oeste (conventional) |
0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
| Bajada del Palo Oeste (shale) |
0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
|
Agua Amarga (Jarilla Quemada, Charco del Palenque) |
13 | 10 | 10 | 17 | 16 | 12 | 16 | |||||||||||||||||||||
Notes:
(1) Acambuco includes condensate.
(2) Excludes natural gas consumption, flared or reinjected natural gas.
| Oil and Gas concessions | WI (%) | Operated
/
|
Target | Basin | Country | |||||||||||||||
| Entre Lomas Neuquén |
100% | Operated | Conventional | Neuquina | Argentina | |||||||||||||||
| Entre Lomas Río Negro |
100% | Operated | Conventional | Neuquina | Argentina | |||||||||||||||
| Bajada del Palo Oeste / Este |
100% | Operated | Conventional | Neuquina | Argentina | |||||||||||||||
| Bajada del Palo Oeste |
100% | Operated | Shale | Neuquina | Argentina | |||||||||||||||
| Agua Amarga |
100% | Operated | Conventional | Neuquina | Argentina | |||||||||||||||
| 25 de Mayo-Medanito |
100% | Operated | Conventional | Neuquina | Argentina | |||||||||||||||
| Jagüel de los Machos |
100% | Operated | Conventional | Neuquina | Argentina | |||||||||||||||
| Coirón Amargo Norte |
85% | Operated | Conventional | Neuquina | Argentina | |||||||||||||||
| Coirón Amargo Sur Oeste |
10% | Non-operated | Shale | Neuquina | Argentina | |||||||||||||||
| Águila Mora |
90% | Operated | Shale | Neuquina | Argentina | |||||||||||||||
| Acambuco |
1.5% | Non-operated | Conventional | Noroeste | Argentina | |||||||||||||||
| CS-01 |
50% | Operated | Conventional | Del Sureste | México | |||||||||||||||
| A-10 |
50% | Non-operated | Conventional | Del Sureste | México | |||||||||||||||
Note: Not showing Concessions without production, Bajada del Palo Este (shale), Sur Rio Deseado Este and TM-01.
Page 13
Vista Oil & Gas S.A.B. de C.V.
Bajada del Palo Oeste operational data
Shale oil wells detail
| Well name |
Pad number |
Landing zone |
Lateral length (mts) |
Total frac stages | ||||
| 2013 |
#1 | Organic | 2,483 | 33 | ||||
| 2014 |
#1 | La Cocina | 2,633 | 35 | ||||
| 2015 |
#1 | Organic | 2,558 | 34 | ||||
| 2016 |
#1 | La Cocina | 2,483 | 34 | ||||
| 2029 |
#2 | Organic | 2,189 | 37 | ||||
| 2030 |
#2 | La Cocina | 2,248 | 38 | ||||
| 2032 |
#2 | Organic | 2,047 | 35 | ||||
| 2033 |
#2 | La Cocina | 1,984 | 33 | ||||
| 2061 |
#3 | La Cocina | 2,723 | 46 | ||||
| 2062 |
#3 | Organic | 2,624 | 44 | ||||
| 2063 |
#3 | La Cocina | 3,025 | 51 | ||||
| 2064 |
#3 | Organic | 1,427 | 36 | ||||
| 2025 |
#4 | Lower Carbonate | 2,186 | 26 | ||||
| 2026 |
#4 | La Cocina | 2,177 | 44 | ||||
| 2027 |
#4 | Lower Carbonate | 2,551 | 31 | ||||
| 2028 |
#4 | La Cocina | 2,554 | 51 | ||||
| 2501 |
#5 | La Cocina | 2,538 | 52 | ||||
| 2502 |
#5 | Organic | 2,436 | 50 | ||||
| 2503 |
#5 | La Cocina | 2,468 | 50 | ||||
| 2504 |
#5 | Organic | 2,332 | 44 | ||||
Page 14
Vista Oil & Gas S.A.B. de C.V.
Key results
(Amounts expressed in thousand U.S. dollars)
| Key Results - in $M | Q4-20 | Q3-20 | Q2-20 | Q1-20 | Q4-19 | 2020 | 2019 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Total Revenues |
79,536 | 69,863 | 51,219 | 73,320 | 96,445 | 273,938 | 415,976 | |||||||||||||||||||||
| Oil |
72,461 | 60,438 | 41,712 | 61,985 | 82,833 | 236,596 | 338,272 | |||||||||||||||||||||
| Natural Gas |
6,213 | 8,609 | 8,640 | 10,113 | 13,078 | 33,575 | 71,524 | |||||||||||||||||||||
| NGL and others |
862 | 816 | 867 | 1,222 | 534 | 3,767 | 6,180 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Cost of Sales |
(73,952) | (70,934) | (58,623) | (67,996) | (78,064) | (271,505) | (328,130) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Operating expenses |
(22,589) | (23,032) | (18,564) | (23,833) | (25,716) | (88,018) | (114,431) | |||||||||||||||||||||
| Stock fluctuation |
5,529 | 598 | (3,481) | 449 | (698) | 3,095 | 310 | |||||||||||||||||||||
| Depreciation, depletion and amortization |
(44,883) | (38,876) | (30,447) | (33,467) | (38,361) | (147,674) | (153,001) | |||||||||||||||||||||
| Royalties |
(12,009) | (9,624) | (6,131) | (11,145) | (13,289) | (38,908) | (61,008) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Gross profit |
5,584 | (1,071) | (7,404) | 5,324 | 18,381 | 2,433 | 87,846 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Selling expenses |
(6,137) | (5,434) | (6,300) | (6,152) | (6,745) | (24,023) | (27,138) | |||||||||||||||||||||
| General and administrative expenses |
(7,259) | (9,063) | (8,229) | (9,367) | (13,248) | (33,918) | (42,400) | |||||||||||||||||||||
| Exploration expenses |
(106) | (241) | (168) | (131) | (65) | (646) | (676) | |||||||||||||||||||||
| Other operating income |
342 | 1,380 | 1,698 | 2,153 | 907 | 5,573 | 3,165 | |||||||||||||||||||||
| Other operating expenses, net |
(761) | (1,690) | (1,285) | (1,253) | (4,426) | (4,989) | (6,180) | |||||||||||||||||||||
| Impairment of long -lived assets |
(9,484) | (4,954) | - | - | - | (14,438) | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Operating profit (loss) |
(17,821) | (21,073) | (21,688) | (9,426) | (5,196) | (70,008) | 14,617 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Adjusted EBITDA Reconciliation ($M) | Q4-20 | Q3-20 | Q2-20 | Q1-20 | Q4-19 | 2020 | 2019 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Net (loss) / profit for the period |
(13,812) | (28,402) | (39,203) | (21,332) | (44,248) | (102,749) | (32,723) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| (+) Income tax (expense) / benefit |
(17,435) | (5,552) | 8,304 | 4,571 | 17,797 | (10,113) | 16,232 | |||||||||||||||||||||
| (+) Financial results, net |
13,426 | 12,881 | 9,211 | 7,335 | 21,172 | 42,854 | 31,108 | |||||||||||||||||||||
| (+) Investments results |
- | - | - | - | 84 | - | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Operating profit (loss) |
(17,821) | (21,073) | (21,688) | (9,426) | (5,196) | (70,008) | 14,617 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| (+) Depreciation, depletion and amortization |
44,883 | 38,876 | 30,447 | 33,467 | 38,361 | 147,674 | 153,001 | |||||||||||||||||||||
| (+) Restructuring expenses |
(636) | 1,465 | 1,430 | 1,244 | 2,542 | 3,503 | 3,244 | |||||||||||||||||||||
| (+) Impairment of long - lived assets |
9,484 | 4,954 | - | - | - | 14,438 | - | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Adjusted EBITDA |
35,910 | 24,222 | 10,189 | 25,285 | 35,707 | 95,607 | 170,862 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Adjusted EBITDA Margin (%) |
45% | 35% | 20% | 34% | 37% | 35% | 41% | |||||||||||||||||||||
| Q4-20 | Q3-20 | Q2-20 | Q1-20 | Q4-19 | 2020 | 2019 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
| Lifting Cost ($MM) |
22.6 | 23.0 | 18.6 | 23.8 | 25.7 | 88.0 | 114.4 | |||||||||||||||||||||
| Lifting cost ($/boe) |
8.0 | 9.9 | 8.6 | 9.9 | 9.3 | 9.0 | 10.8 | |||||||||||||||||||||
Page 15
Vista Oil & Gas S.A.B. de C.V.
Consolidated Balance Sheet
(Amounts expressed in thousand U.S. dollars)
| As of December 31, 2020 | As of December 31, 2019 | |||||||
| Property, plant and equipment |
1,002,258 | 917,066 | ||||||
| Goodwill |
28,484 | 28,484 | ||||||
| Other intangible assets |
21,081 | 34,029 | ||||||
|
Right-of-use assets |
22,578 | 16,624 | ||||||
| Trade and other receivables |
29,810 | 15,883 | ||||||
| Deferred income tax |
565 | 476 | ||||||
| Total non-current assets |
1,104,776 | 1,012,562 | ||||||
| Inventories |
13,870 | 19,106 | ||||||
| Trade and other receivables |
51,019 | 93,437 | ||||||
| Cash, bank balances and other short-term investments |
202,947 | 260,028 | ||||||
| Total current assets |
267,836 | 372,571 | ||||||
| Total assets |
1,372,612 | 1,385,133 | ||||||
| Deferred income tax liabilities |
135,567 | 147,019 | ||||||
| Leases liabilities |
17,498 | 9,372 | ||||||
| Provisions |
23,909 | 21,146 | ||||||
| Borrowings |
349,559 | 389,096 | ||||||
| Warrants |
362 | 16,860 | ||||||
| Employee defined benefit plans obligation |
3,461 | 4,469 | ||||||
| Accounts payable and accrued liabilities |
- | 419 | ||||||
| Total non-current liabilities |
530,356 | 588,381 | ||||||
| Provisions |
2,084 | 3,423 | ||||||
| Leases liabilities |
6,183 | 7,395 | ||||||
| Borrowings |
190,227 | 62,317 | ||||||
| Salaries and social security payable |
11,508 | 12,553 | ||||||
| Income tax payable |
- | 3,039 | ||||||
| Other taxes and royalties payable |
5,117 | 6,040 | ||||||
| Accounts payable and accrued liabilities |
118,619 | 98,269 | ||||||
| Total current liabilities |
333,738 | 193,036 | ||||||
| Total liabilities |
864,094 | 781,417 | ||||||
| Total equity |
508,518 | 603,716 | ||||||
| Total liabilities and equity |
1,372,612 | 1,385,133 | ||||||
Page 16
Vista Oil & Gas S.A.B. de C.V.
Consolidated Income Statement
(Amounts expressed in thousand U.S. dollars)
| For the period from October 1st to December 31, 2020 |
For the period from October 1st to December 31, 2019 |
For the year 2020 | For the year 2019 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Revenue from contract with customers |
79,536 | 96,445 | 273,938 | 415,976 | ||||||||||
| Revenues from crude oil sales |
72,461 | 82,833 | 236,596 | 338,272 | ||||||||||
| Revenues from natural gas sales |
6,213 | 13,078 | 33,575 | 71,524 | ||||||||||
| Revenues from NGL |
862 | 534 | 3,767 | 6,180 | ||||||||||
| Cost of sales |
(73,952) | (78,064) | (271,505) | (328,130) | ||||||||||
| Operating expenses |
(22,589) | (25,716) | (88,018) | (114,431) | ||||||||||
| Crude oil stock fluctuation |
5,529 | (698) | 3,095 | 310 | ||||||||||
| Depreciation, depletion and amortization |
(44,883) | (38,361) | (147,674) | (153,001) | ||||||||||
| Royalties |
(12,009) | (13,289) | (38,908) | (61,008) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Gross profit |
5,584 | 18,381 | 2,433 | 87,846 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Selling expenses |
(6,137) | (6,745) | (24,023) | (27,138) | ||||||||||
| General and administrative expenses |
(7,259) | (13,248) | (33,918) | (42,400) | ||||||||||
| Exploration expenses |
(106) | (65) | (646) | (676) | ||||||||||
| Other operating income |
342 | 907 | 5,573 | 3,165 | ||||||||||
| Other operating expenses |
(761) | (4,426) | (4,989) | (6,180) | ||||||||||
| Impairment of long - lived assets |
(9,484) | - | (14,438) | - | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Operating profit (loss) |
(17,821) | (5,196) | (70,008) | 14,617 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Investments in associates |
- | (84) | - | - | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Interest income |
19 | 3,073 | 822 | 3,770 | ||||||||||
| Interest expense |
(14,224) | (13,854) | (47,923) | (34,163) | ||||||||||
| Other financial results |
779 | (10,391) | 4,247 | (715) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Financial results, net |
(13,426) | (21,172) | (42,854) | (31,108) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| (Loss) Profit before income taxes |
(31,247) | (26,452) | (112,862) | (16,491) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Current income tax (expense) |
25 | (3,473) | (184) | (1,886) | ||||||||||
| Deferred income tax (expense)/ benefit |
17,410 | (14,324) | 10,297 | (14,346) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||
| Income tax expense |
17,435 | (17,797) | 10,113 | (16,232) | ||||||||||
|
|
|
|
|
|
||||||||||
| Net (loss) profit for the year/ period |
(13,812) | (44,249) | (102,749) | (32,723) | ||||||||||
|
|
|
|
|
|
||||||||||
| Other comprehensive loss |
11 | (1,163) | 346 | (1,183) | ||||||||||
|
|
|
|
|
|
||||||||||
| Total comprehensive (loss) profit for the period |
(13,801) | (45,412) | (102,403) | (33,906) | ||||||||||
|
|
|
|
|
|
||||||||||
Page 17
Vista Oil & Gas S.A.B. de C.V.
Consolidated Statement of Cash Flows
(Amounts expressed in thousand U.S. dollars)
| For the period from October 1st to December 31, 2020 |
For the period from October 1st to December 31, 2019 |
For the year 2020 | For the year 2019 | |||||||||
|
|
|
|
|
|
|
| ||||||
| Net profit / (loss) for the period |
(13,812) | (44,249) | (102,749) | (32,723) | ||||||||
| - | - | |||||||||||
| Adjustments to reconcile net cash flows provided by (used in) operating activities: |
||||||||||||
| Non-cash items related with operating activities: |
||||||||||||
| (Reversal in)/Allowances for expected credit losses |
- | 284 | (22) | (118) | ||||||||
| Foreign currency exchange difference, net |
(4,146 | ) | 1,600 | (3,068) | 2,991 | |||||||
| Unwinding of discount on asset retirement obligation |
621 | 514 | 2,584 | 1,723 | ||||||||
| Increase of provisions, net |
14 | 718 | 103 | 2,210 | ||||||||
| Interest expense leases |
533 | 821 | 1,641 | 1,561 | ||||||||
| Effect of discount of assets and liabilities at present value |
1,406 | (849 | ) | 3,432 | 10 | |||||||
| Share-based payment expense |
2,751 | 3,123 | 10,494 | 10,655 | ||||||||
| Burgain purchase on business combination |
(1,383 | ) | - | (1,383) | - | |||||||
| Employee defined benefits obligation |
46 | (345 | ) | 250 | 220 | |||||||
| Income tax |
(17,435 | ) | 17,797 | (10,113) | 16,232 | |||||||
| Non-cash items related with investing activities: |
||||||||||||
| Depreciation and depletion |
44,142 | 37,798 | 145,106 | 151,483 | ||||||||
| Amortization of intangible assets |
741 | 563 | 2,568 | 1,518 | ||||||||
| Impairment of long - lived assets |
9,484 | - | 14,438 | - | ||||||||
| Interest income |
(19 | ) | (3,073 | ) | (822) | (3,770) | ||||||
| Change in the fair value of financial assets |
475 | (6,131 | ) | 645 | (873) | |||||||
| Investments in associate |
- | 84 | - | - | ||||||||
| Non-cash items related with financing activities: |
||||||||||||
| Interest expense |
14,224 | 13,854 | 47,923 | 34,163 | ||||||||
| Changes in the fair value of Warrants |
107 | 14,278 | (16,498) | (6,840) | ||||||||
| Amortized costs |
838 | 607 | 2,811 | 2,076 | ||||||||
| Impairment of financial assets |
- | - | 4,839 | - | ||||||||
| Changes in working capital: |
||||||||||||
| Trade and other receivables |
(13,328 | ) | 12,834 | 3,915 | (2,073) | |||||||
| Inventories |
(5,197 | ) | 277 | (2,861) | (609) | |||||||
| Accounts payable and other payables |
6,326 | (6,073 | ) | 2,397 | (22,105) | |||||||
| Employee defined benefits obligations |
(206 | ) | (181 | ) | (798) | (631) | ||||||
| Salaries and social security payable |
2,309 | 4,660 | (2,570) | 5,406 | ||||||||
| Other taxes and royalties payable |
(312 | ) | (703 | ) | (2,080) | 2,377 | ||||||
| Provisions |
(622 | ) | (429 | ) | (1,672) | (2,298) | ||||||
| Income taxes paid |
(544 | ) | (1,235 | ) | (4,731) | (26,327) | ||||||
|
|
| |||||||||||
| Net cash flows generated by operating activities |
27,013 | 46,544 | 93,779 | 134,258 | ||||||||
|
|
| |||||||||||
| Cash flows from investing activities: |
||||||||||||
| Payments for acquisition of property, plant and equipment |
(54,914 | ) | (49,968 | ) | (153,257) | (240,315) | ||||||
| Payments for acquisition of other intangible assets |
(957 | ) | (1,156 | ) | (3,664) | (4,225) | ||||||
| Proceeds from other financial assets |
- | 1,073 | - | 5,761 | ||||||||
| Proceeds from interest received |
19 | 3,073 | 822 | 3,770 | ||||||||
Page 18
|
|
|
| ||||||||||||||||||||
| Net cash flows (used in) investing activities |
(55,852) | (46,978) | (156,099) | (235,010) | ||||||||||||||||||
|
|
|
| ||||||||||||||||||||
| Cash flows from financing activities |
||||||||||||||||||||||
| Proceeds from capitalization of Serie A shares net of issue costs | - | (760) | - | 146,144 | ||||||||||||||||||
| Proceeds from borrowings |
27,763 | 59,729 | 201,728 | 234,728 | ||||||||||||||||||
| Payments of borrowing´s cost |
(187) | - | (2,259) | (1,274) | ||||||||||||||||||
| Payments of borrowing´s principal |
(8,389) | (62,233) | (98,761) | (90,233) | ||||||||||||||||||
| Payments of borrowing´s interests |
(8,100) | (8,319) | (43,756) | (32,438) | ||||||||||||||||||
| Payments of leases |
(2,261) | (7,619) | (9,067) | (7,619) | ||||||||||||||||||
| Payments of other financial liabilities, net of restricted cash and cash equivalents | - | 16,993 | (16,993) | 16,993 | ||||||||||||||||||
|
|
|
| ||||||||||||||||||||
| Net cash flows generated by financing activities |
8,826 | (2,209) | 30,892 | 266,301 | ||||||||||||||||||
|
|
|
| ||||||||||||||||||||
|
|
For the period from October 1st to December 31, 2020
|
|
|
For the period from October 1st to December 31, 2019
|
|
For the year 2020 | For the year 2019 | |||||||||||||||
|
|
|
| ||||||||||||||||||||
| Net (decrease) in cash and cash equivalents |
(20,013) | (2,643) | (31,428) | 165,549 | ||||||||||||||||||
|
|
|
| ||||||||||||||||||||
| - | - | |||||||||||||||||||||
| Cash and cash equivalents at the beginning of the period |
222,365 | 236,367 | 234,230 | 66,047 | ||||||||||||||||||
| Effects of exchange rate changes on cash and cash equivalents | (1,038) | 506 | (1,488) | 2,634 | ||||||||||||||||||
| Net (decrease) in cash and cash equivalents |
(20,013) | (2,643) | (31,428) | 165,549 | ||||||||||||||||||
|
|
|
| ||||||||||||||||||||
| Cash and cash equivalents at the end of the period |
201,314 | 234,230 | 201,314 | 234,230 | ||||||||||||||||||
|
|
|
| ||||||||||||||||||||
Page 19
Glossary, currency and definitions:
| - | Note: Amounts are expressed in U.S. dollars, unless otherwise stated, and in accordance with International Financial Reporting Standards (IFRS). All the amounts are unaudited. Amounts may not match with totals due to rounding up. |
| - | Conversion metrics |
| ● | 1 cubic meter of oil = 6.2898 barrels of oil |
| ● | 1,000 cubic meters of gas = 6.2898 barrels of oil equivalent |
| - | p q/q : Represents the percentage variation quarter on quarter |
| - | p y/y: Represents the percentage variation year on year |
| - | $MM: Million US Dollars |
| - | $M: Thousand US Dollars |
| - | $/bbl: US Dollars per barrel of oil |
| - | $/boe: US Dollars per barrel of oil equivalent |
| - | $/MMbtu US Dollars per million British thermal unit |
| - | boe: barrels of oil equivalent (see conversion metrics above) |
| - | Adj. EBITDA / Adjusted EBITDA: Net (loss) / profit for the period + Income tax (expense) / benefit + Financial results, net + depreciation, depletion and amortization + Restructuring and Reorganization expenses + Loss for impairment of assets+ Other adjustments |
| - | Adjusted EBITDA margin: Adjusted EBITDA divided by total revenues |
| - | boe/d: Barrels of oil equivalent per day |
| - | bbl/d: Barrels of oil per day |
| - | CNG: Compressed natural gas |
| - | FY 2020: Full year 2020 |
| - | Lifting cost: Includes production, transportation, treatment and field support services; excludes crude stock fluctuations, depreciation, depletion and amortization, royalties, direct taxes, commercial, exploration and G&A costs. |
| - | MMboe: Million barrels of oil equivalent |
| - | MMm3/d: Million cubic meters per day |
| - | Proved reserves: the information included regarding estimated quantities of proved reserves is derived from estimates of the proved reserves as of December 31, 2020. The proved reserves estimates are derived from the report dated February 1, 2020 prepared by DeGolyer and MacNaughton (“D&M”), for Vista’s concessions located in Argentina, and the report dated February 5, 2020 prepared by Netherland, Sewell International, S. de R.L. de C.V. (“NSI”) for Vista’s concessions located in Mexico. D&M and NSI are independent reserves engineering consultants. The 2020 Reserves Report prepared by D&M is based on information provided by Vista and presents an appraisal as of December 31, 2020 of oil and gas reserves located in the Entre Lomas Río Negro, Entre Lomas Neuquén, Bajada del Palo Oeste, Bajada del Palo Este, Charcho del Palenque, Jarilla Quemada, Coirón Amargo Norte, Coirón Amargo Sur Oeste, Acambuco, Jagüel de los Machos, 25 de Mayo-Medanito blocks in Argentina. The 2020 Reserves Report prepared by NSI is based on information provided by Vista and presents an appraisal as of December 31, 2020 of our oil and gas reserves located in the CS-01 and A-10 blocks in Mexico. |
| - | Reserves life ratio: calculated as the proved reserves divided by the annual production |
| - | Reserves replacement ratio: calculated as the proved reserves additions divided by the annual production |
| - | TED: Total effective days – days in which shale oil wells were producing |
| - | Q#: Q followed by 1, 2, 3 or 4 represents the corresponding quarter of a certain year |
| - | q-o-q: Quarter on quarter |
| - | y-o-y: Year on year |
Page 20
DISCLAIMER
Additional information about Vista Oil & Gas, S.A.B. de C.V., a sociedad anónima bursátil de capital variable organized under the laws of Mexico (the “Company” or “Vista”) can be found in the “Investors” section on the website at www.vistaoilandgas.com.
This presentation does not constitute an offer to sell or the solicitation of any offer to buy any securities of the Company, in any jurisdiction. Securities may not be offered or sold in the United States absent registration with the U.S. Securities Exchange Commission (“SEC”), the Mexican National Securities Registry held by the Mexican National Banking and Securities Commission (“CNBV”) or an exemption from such registrations.
This presentation does not contain all the Company’s financial information. As a result, investors should read this presentation in conjunction with the Company’s consolidated financial statements and other financial information available on the Company’s website. All the amounts contained herein are unaudited.
Rounding amounts and percentages: Certain amounts and percentages included in this presentation have been rounded for ease of presentation. Percentage figures included in this presentation have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this presentation may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this presentation may not sum due to rounding.
This presentation contains certain metrics that do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies. Such metrics have been included herein to provide readers with additional measures to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.
No reliance may be placed for any purpose whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given or will be given by or on behalf of the Company, or any of its affiliates (within the meaning of Rule 405 under the Act, “Affiliates”), members, directors, officers or employees or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation or any other material discussed verbally, and any reliance you place on them will be at your sole risk. In addition, no responsibility, obligation or liability (whether direct or indirect, in contract, tort or otherwise) is or will be accepted by the Company or any of its Affiliates, members, directors, officers or employees or any other person in relation to such information or opinions or any other matter in connection with this presentation or its contents or otherwise arising in connection therewith.
This presentation also includes certain non-IFRS (International Financial Reporting Standards) financial measures which have not been subject to a financial audit for any period.
The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to verification, completion and change without notice.
This presentation includes “forward-looking statements” concerning the future. The words such as “believes,” “thinks,” “forecasts,” “expects,” “anticipates,” “intends,” “should,” “seeks,” “estimates,” “future” or similar expressions are included with the intention of identifying statements about the future. For the avoidance of doubt, any projection, guidance or similar estimation about the future or future results, performance or achievements is a forward-looking statement. Although the assumptions and estimates on which forward-looking statements are based are believed by our management to be reasonable and based on the best currently available information, such forward-looking statements are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond our control.
There will be differences between actual and projected results, and actual results may be materially greater or materially less than those contained in the projections. The inclusion of the projected financial information in this document should not be regarded as an indication that we or our management considered or consider the projections to be a reliable prediction of future events. As such, no representation can be made as to the attainability of projections, guidances or other estimations of future results, performance or achievements. We have not warranted the accuracy, reliability, appropriateness or completeness of the projections to anyone. Neither our management nor any of our representatives has made or makes any representation to any person regarding our future performance compared to the information contained in the projections, and none of them intends to or undertakes any obligation to update or otherwise revise the projections to reflect circumstances existing after the date when made or to reflect the occurrence of future events in the event that any or all of the assumptions underlying the projections are shown to be in error. We may or may not refer back to these projections in our future periodic reports filed under the Exchange Act. These expectations and projections are subject to significant known and unknown risks and uncertainties which may cause our actual results, performance or achievements, or industry results, to be materially different from any expected or projected results, performance or achievements expressed or implied by such forward-looking statements. Many important factors could cause our actual results, performance or achievements to differ materially from those expressed or implied in our forward-looking statements,
Page 21
including, among other things: uncertainties relating to future government concessions and exploration permits; adverse outcomes in litigation that may arise in the future; general political, economic, social, demographic and business conditions in Argentina, Mexico and in other countries in which we operate; changes in law, rules, regulations and interpretations and enforcements thereto applicable to the Argentine and Mexican energy sectors, including changes to the regulatory environment in which we operate and changes to programs established to promote investments in the energy industry; any unexpected increases in financing costs or an inability to obtain financing and/or additional capital pursuant to attractive terms; any changes in the capital markets in general that may affect the policies or attitude in Argentina and/or Mexico, and/or Argentine and Mexican companies with respect to financings extended to or investments made in Argentina and Mexico or Argentine and Mexican companies; fines or other penalties and claims by the authorities and/or customers; any future restrictions on the ability to exchange Mexican or Argentine Pesos into foreign currencies or to transfer funds abroad; the revocation or amendment of our respective concession agreements by the granting authority; our ability to implement our capital expenditures plans or business strategy, including our ability to obtain financing when necessary and on reasonable terms; government intervention, including measures that result in changes to the Argentine and Mexican, labor markets, exchange markets or tax systems; continued and/or higher rates of inflation and fluctuations in exchange rates, including the devaluation of the Mexican Peso or Argentine Peso; any force majeure events, or fluctuations or reductions in the value of Argentine public debt; changes to the demand for energy; uncertainties relating to the effects of the Covid-19 outbreak; environmental, health and safety regulations and industry standards that are becoming more stringent; energy markets, including the timing and extent of changes and volatility in commodity prices, and the impact of any protracted or material reduction in oil prices from historical averages; changes in the regulation of the energy and oil and gas sector in Argentina and Mexico, and throughout Latin America; our relationship with our employees and our ability to retain key members of our senior management and key technical employees; the ability of our directors and officers to identify an adequate number of potential acquisition opportunities; our expectations with respect to the performance of our recently acquired businesses; our expectations for future production, costs and crude oil prices used in our projections; increased market competition in the energy sectors in Argentina and Mexico; and potential changes in regulation and free trade agreements as a result of U.S., Mexican or other Latin American political conditions.
Forward-looking statements speak only as of the date on which they were made, and we undertake no obligation to release publicly any updates or revisions to any forward-looking statements contained herein because of new information, future events or other factors. In light of these limitations, undue reliance should not be placed on forward-looking statements contained in this presentation. Further information concerning risks and uncertainties associated with these forward-looking statements and Vista’s business can be found in Vista’s public disclosures filed on EDGAR (www.sec.gov) or at the web page of the Mexican Stock Exchange (www.bmv.com.mx).
You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements. This presentation is not intended to constitute, and should not be construed as investment advice.
Other Information
Vista routinely posts important information for investors in the Investor Relations support section on its website, www.vistaoilandgas.com. From time to time, Vista may use its website as a channel of distribution of material information. Accordingly, investors should monitor Vista’s Investor Relations website, in addition to following Vista’s press releases, SEC filings, public conference calls and webcasts.
INVESTORS CONTACT:
ir@vistaoilandgas.com
Phone in Argentina +54.11.3754.8532
Phone in Mexico +52.55.1167.8250
Page 22