Earnings Call Transcript - VIST Q4 2025

Operator, Operator

Good day, and thank you for standing by. Welcome to Vista's Fourth Quarter and Full Year 2025 Earnings Webcast Conference Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alejandro Chernacov, Vista's Strategic Planning and Investor Relations Officer. Please go ahead.

Alejandro Chernacov, Strategic Planning and Investor Relations Officer

Thanks. Good morning, everyone. We are happy to welcome you to Vista's Fourth Quarter and Full Year 2025 Results Conference Call. I am here with Miguel Galuccio, Vista's Chairman and CEO; Pablo Vera Pinto, Vista's CFO; Juan Garoby, Vista's CTO; and Matias Weissel, Vista's COO. Before we begin, I would like to draw your attention to our cautionary statement on Slide 2. Please be advised that our remarks today, including the answers to your questions, may include forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks. Our financial figures are stated in U.S. dollars and in accordance with International Financial Reporting Standards, IFRS. However, during this conference call, we may discuss certain non-IFRS financial measures such as adjusted EBITDA and adjusted net income. Reconciliations of these measures with the closest IFRS measure can be found in the earnings release that we issued yesterday. Please check our website for further information. Our company is a Sociedad Anónima de Capital Variable, organized under the laws of Mexico, registered in the Bolsa Mexicana de Valores and the New York Stock Exchange. Our tickers are VISTAA in the Bolsa Mexicana de Valores and VIST in the New York Stock Exchange. I will now turn the call over to Miguel.

Miguel Galuccio, Chairman and CEO

Thanks, Ale. Good morning, everyone, and welcome to this earnings call. 2025 was a year of many achievements for Vista, marked by substantial value creation for our shareholders through growth in our core development, significant well cost savings and accretive M&A. The acquisition of a 50% stake in La Amarga Chica marked a major milestone in our successful growth journey, turning Vista into the largest independent oil producer in Argentina. We also held our third Investor Day, during which we unveiled an updated strategic plan targeting to produce more than 200,000 BOEs per day by the end of the decade. Today, we will be going over our Q4 results and a summary of the highlights of the full year. During the fourth quarter of 2025, we continued to deliver robust production growth on the back of new well tie-ins and strong productivity in Bajada del Palo Oeste, Aguada Federal and La Amarga Chica. Total production was 135,000 BOEs per day, an increase of 59% year-over-year and 7% quarter-over-quarter. Oil production was 118,000 barrels per day, an interannual increase of 61% and 8% sequentially. Total revenues during the quarter were $689 million, 46% above the same quarter of last year and 2% below the previous quarter, driven by lower oil prices. Lifting cost was $4.1 per BOE, 12% below year-over-year and 8% below versus Q3. Capital expenditure was $355 million, driven by new well activity during the quarter. Adjusted EBITDA was $444 million, an interannual increase of 62%. Net income was $86 million, leading to earnings per share of $0.8 during the quarter. Free cash flow was $76 million, driven by strong cash flow from operations. And finally, our net leverage ratio at year-end was 1.5x on a pro forma basis, flat quarter-on-quarter. Total production during Q4 was 135,400 BOEs per day. As in the previous quarter, we recorded a solid 7% growth on a sequential basis, driven by robust well productivity and 16 net tie-ins during the quarter: 9 in Bajada del Palo Oeste, 3 in Aguada Federal, and 4 corresponding to our 50% share in La Amarga Chica. On a year-over-year basis, production growth was 59%, reflecting our larger scale after the acquisition of La Amarga Chica, combined with organic growth. Oil production was 118,300 barrels per day, 8% above Q3 and 61% higher year-over-year. Gas production increased 45% year-over-year. In Q4 2025, total revenues were $689 million, 46% higher than the previous year, driven by a robust increase in oil production, which more than offset lower oil prices. Oil exports doubled year-over-year, reaching 7.1 million barrels in Q4 2025, representing 64% of our total sales volume. Realized oil price was $58.9 per barrel on average, down 12% year-over-year and 9% sequentially in both cases, driven by lower oil prices. During Q4, again, we sold 100% of oil volumes at export parity prices, both domestically and internationally. In Q4, lifting cost was $4.1 per BOE, 12% below the same quarter of last year and 8% below the previous quarter, reflecting our low-cost asset base and fixed cost dilution as we continue to gain scale. Selling expenses were $4.2 per BOE, down 48% year-over-year, driven by the elimination of oil tracking as of the end of Q1. Adjusted EBITDA during the quarter was $444 million, 62% higher year-over-year, mainly driven by the consolidation of a 50% working interest in La Amarga Chica and organic production growth in our core development hub, which more than offset lower oil prices. On a sequential basis, adjusted EBITDA declined 6% as lower oil and natural gas prices offset production growth. Adjusted EBITDA margin was 64%, up 8 percentage points compared to the same quarter of last year as the decrease in selling expenses offset lower oil prices. Similarly, netback was $35.6 per BOE, up 2% year-over-year. During Q4 2025, cash flow from operating activities was very robust at $435 million even after an income tax payment of $32 million and an increase in working capital of $16 million. Cash flow used in investing activities was $360 million, reflecting accrued CapEx of $355 million and a decrease in CapEx-related working capital of $16 million. As a result, free cash flow was positive at $76 million during the quarter and $47 million during the second semester. Hence, we achieved our positive free cash flow guidance for the second half of 2025. Cash flow from financing activities was $143 million, driven by proceeds from borrowings of $618 million, partially offset by the repayment of borrowings for $368 million and interest payment of $75 million. Finally, our cash position remains very strong, standing at $538 million at year-end. Our net leverage ratio on a pro forma basis, reflecting the Petronas Argentina transaction, stood at 1.5x adjusted EBITDA, flat versus the previous quarter. The fourth quarter of 2025 marks the completion of an outstanding year at Vista, and these are some of our key achievements. Combining the successful derisking of the structural area in Bajada del Palo Oeste with the acquisition of a 50% working interest in La Amarga Chica, we enlarged our well inventory to more than 1,600 wells. P1 reserve increased by 57% year-over-year to 588 million BOEs, with strong additions both on the organic and inorganic side, leading to a reserve replacement ratio of 605%. Our organic reserves replacement ratio stood at 260%. We tied in 74 wells during the year, up from 50 in 2024, reflecting the CapEx acceleration in our strong portfolio of short-cycle, high-return wells in the oil window of Vaca Muerta. This boosted total production to over 115,000 barrels of oil per day, 66% above 2024. Our solid operational performance was also reflected by cost reductions with 3% lifting cost savings and 15% D&C cost savings compared to 2024. Operational excellence remains one of our top priorities. In 2025, our total recordable incident rate remained below 1 for the sixth consecutive year. By investing mainly in decarbonization processes in our facilities, we reduced Scope 1 and Scope 2 greenhouse gas emissions intensity by 23% to 6.8 kilos of CO2 equivalent per BOE. This placed Vista's operation within the first decile at the global level. We continue to invest in nature-based solutions in Argentina to develop our own carbon credits. We have made progress in 2025 to ensure that in 2026 we will have enough credits to balance the Scope 1 and Scope 2 emissions of our operated oil and gas production. Finally, in 2025, we continued delivering strong financial performance. Adjusted EBITDA grew 46% compared to the previous year, reaching $1.6 billion. Earnings per share amounted to $7 and ROC was 29%. Finally, we executed a share buyback program of $50 million, buying 1.2 million shares at an average price of $41.2 per share, a significant discount relative to current prices. Our 2025 performance leaves us well poised to continue our growth trajectory in 2026. Total production at 115,000 BOEs per day was above the 112,000 to 114,000 guidance range. Production during the second semester was also above guidance, 131,000 BOEs per day compared to the guidance of 125,000 to 128,000. Adjusted EBITDA was $1.6 billion and stood at the top end of the range we guided at midyear. We also met the adjusted EBITDA guidance for the second semester, recording $0.92 billion or an equivalent of $1.83 billion on an annualized basis. Lifting costs at $4.4 per BOE marked an over-delivery with respect to our $4.5 guidance. We were also very efficient with the use of capital by delivering 74 well tie-ins with $1.3 billion of CapEx. We outperformed the original guidance of 59 tie-ins with $1.2 billion. Importantly, the delivery of 2025 full year results, in particular the momentum achieved in the fourth quarter, leave us very well placed to deliver on 2026 guidance. As a reminder, this guidance includes 140,000 BOEs per day of total production, reflecting 80 to 90 well tie-ins, $1.5 billion to $1.6 billion of CapEx and $1.9 billion of adjusted EBITDA, assuming Brent at $65 per barrel on average. Early this month, we announced an agreement to acquire Equinor's assets in Vaca Muerta. This constitutes a highly accretive transaction for our shareholders as reflected by the implied EV to EBITDA and EV per flowing barrel metrics compared to Vista's market value. The acquired asset will enhance our portfolio by adding more than 27,000 net acres, which currently produce around 22,000 barrels of oil per day and generate positive free cash flow. Importantly, the blocks have production growth potential as they add 244 net wells to our drilling inventory. As shown on the map, the new blocks are next to our existing blocks, which creates many opportunities for synergies in subsurface characterization, surface facilities, midstream capacity, crew scheduling and oilfield services contracting. As disclosed in our filings, the agreement is subject to two conditions precedent. The first one was already achieved last week: we were informed that Shell has waived its right of first refusal over Bandurria Sur. Regarding the second one, we have already filed the relevant documents with the Chilean antitrust authority on February 11. Based on the timeline of this process, we expect the transaction to close around mid-May. To conclude this call and before we move to Q&A, I will make some closing remarks. Q4 marked the completion of a transformational year for the company, during which we gained significant scale and delivered on annual guidance across all key metrics. During 2025, we recorded robust operational performance, increasing total production, P1 reserves and expanding well inventory. We achieved material lifting cost and selling cost savings that improved our margins, offsetting lower oil prices. We also captured significant D&C cost reductions through the commercial supply chain and technological innovation. This strong operational performance, combined with the acquisition of a 50% working interest in La Amarga Chica, led to superior profitable growth during the year, materially expanding adjusted EBITDA and earnings per share. More recently, we continue to demonstrate our unique ability to execute accretive M&A, gaining further scale, enhancing portfolio depth and long-term cash flow generation through the acquisition of participation in Bandurria Sur and Bajo del Toro, two premium assets in Vaca Muerta. Before we move to Q&A, I would like to express my gratitude to our staff for having delivered another remarkable year for our company. I am also thankful to our shareholders for their continued support. Operator, we can now move to Q&A.

Operator, Operator

Our first question will come from the line of Walter Chiarvesio from Santander.

Walter Chiarvesio, Analyst

Yes. Can you hear me? Perfect. Congratulations on such a strong year for the company. My question is regarding the acquisition of Bandurria Sur. What are the next steps in terms of especially CapEx reallocation, if there is any? I see that the number of wells for the year remain the same. But do you think there will be some CapEx reallocation? And what is the situation regarding facilities with the new situation of the company and the acquisition of all the blocks in 2025?

Miguel Galuccio, Chairman and CEO

Thank you, Walter, for your question. The main milestone, Shell's waiver of its right of first refusal, was already cleared. We are now going through the Chilean antitrust process that was filed in February, jointly with Equinor. The relevant documents are already with the Fiscalía Nacional Económica, and based on the timeline we expect to close during Q2. Related to capital allocation and the Equinor acquisition, we are currently focused on the process of closing the deal and it's a bit premature to comment on any changes to the plan. In general terms, assuming $65 Brent, the CapEx plan for the existing assets is not affected by the new assets. We expect the acquisition to be self-funded by the EBITDA and CapEx generation of the assets we are acquiring. Regarding facilities, we don't see any issues with the acquisition of Bandurria Sur. There is spare capacity in the existing facilities and we also have spare capacity. The main difference will be for the development of Bajo del Toro, where it's very close to one of our assets, Águila Mora, but that will require new facilities. As far as we know, Duplicar Norte is ongoing. One option is to tap into that pipeline that is being linked by other companies, such as Pluspetrol, CVX (Chevron), and Tecpetrol. That could be an option, but that will not happen in the next year or even in the next few years.

Operator, Operator

Our next question comes from the line of Bruno Montanari from Morgan Stanley.

Bruno Montanari, Analyst

My question is also about capital allocation, but more from a broad perspective. The company is generating cash, and we believe that cash generation should increase substantially in 2026 and beyond. Can you help us think about options such as accelerating drilling activity if oil prices increase, pursuing acquisitions around your existing acreage, and/or distributing cash back to shareholders? How do you think about using that incremental cash that will be generated in the coming years?

Miguel Galuccio, Chairman and CEO

Thank you for your question. The operation is planned to run between 4 and 5 rigs from now to 2028, and we have an inventory life of around 15 years. We think we are close to the optimal activity level relative to the size of the asset we have. If oil prices go above the assumptions in our plan, you could see us add some wells to the plan, but I would not expect a completely material change compared to what we have in the plan today toward 2028. Most of the cash we generate will be allocated through our capital allocation framework presented at Investor Day: buybacks and dividends, M&A, and debt reduction. How we split among those three will depend on opportunities, and we want to maintain flexibility.

Operator, Operator

Our next question comes from the line of Alejandro Demichelis from Jefferies.

Alejandro Anibal Demichelis, Analyst

Miguel, you mentioned the very sharp decrease in drilling and completion costs that you have achieved, and that has been great. Could you please comment where do you see drilling and completion costs right now? Where do you think those could end up over the next few quarters? And also, are you seeing similar decreases in your non-operated acreage?

Miguel Galuccio, Chairman and CEO

Thank you, Ale. One of the initiatives we are most proud of is the reduction of D&C costs, where we have put a lot of effort and innovation. We made very good progress during the second semester. We fully implemented the use of bulk wet sand as well as our proprietary frac real-time monitoring tool, streaming the completion short. We discussed that tool at Investor Day. On the contractual side, we renegotiated our contract with our major provider and rebundled drilling services. All that led to important savings. Overall, this initiative led to a D&C cost of $12.1 million per well in the second half of 2025 in Bajada del Palo Oeste, considering a normalized well of 2,800 meters with 47 frac stages. We are currently working on other cost reduction projects. Last week we started operating the sand washing plant that we moved to Bajada del Palo Oeste, sourced from our new mine in the basin. This new mine is 100 kilometers from our operation, probably the closest one to any operation in Vaca Muerta today. With that, we plan to save logistics costs for the entire core development hub. We are also working on rebundling completion services. We are testing new pump technology that can replace diesel for natural gas, and we are testing new casing designs that reduce steel cost. These projects will drive well cost savings in 2026 and 2027. We are on track to deliver $11.7 million per well this year and $11.3 million in 2027. My personal view is that we can go further down on that target if all these projects come into place. Regarding non-operated acreage, we are seeing improvements across the basin as service companies add capacity and as best practices spread, but exact savings timing and magnitude can vary by operator.

Operator, Operator

Our next question will come from the line of Andres Cardona from Citi.

Andres Cardona, Analyst

Congratulations on the good set of results. My question is about the recent inclusion of the upstream business in the RIG regime and how it could change the development plan of the cluster of Bajo del Toro and Águila Mora?

Miguel Galuccio, Chairman and CEO

Thank you, Andres. To put this in context, the new RIG scheme consists of incorporating upstream projects that previously were not part of the regime. In our view, this is a very positive change in regulation and creates clearer conditions to accelerate investment and grow the basin. Under the terms outlined by the decree, there is a minimum investment commitment of $600 million, of which 40% needs to be spent in the first two years. There is also a ratio between cash from operations and total CapEx. The benefits include accelerated amortization, a decrease in corporate tax from 35% to 25%, zero export taxes after the third year and the ability to keep partially export proceeds abroad also after the third year. We are analyzing the scheme in detail, but based on preliminary analysis we believe it could be applicable to some of our developed blocks, such as Bandurria Norte, Águila Mora, and potentially Bajo del Toro. This is a very good initiative from the government, welcomed by us and by the industry.

Operator, Operator

Our next question comes from the line of Milene Carvalho from JPMorgan.

Milene Carvalho, Analyst

After all those questions on the strategic deals, I would like to go back to operations. This quarter, Vista reported record low lifting costs. Can you explain a little further what efficiency measures have been supporting results besides cost dilution from production growth? And you're very well positioned for the guidance in 2026, but what can we expect as a trend for the coming quarters?

Miguel Galuccio, Chairman and CEO

Milene, thanks for the question. In Q4 we captured savings related to well services and, as in previous quarters, we continue to capture savings as we increase production which dilutes fixed costs. This effect has been present for many years since we run the operation. That led to a lifting cost of $4.1 during the quarter. In my view, that number is exceptional. For 2026, our plan shows lifting costs continuing the trend of reduction. We guided 2026 for a lifting cost of $4.4, which is 2% below 2025. In Q1, we expect lifting costs to probably go up sequentially—typically at the start of the year some costs move from Q4 to Q1. Also, usually in Q1 we have some one-off maintenance projects that are allocated to lifting costs. What you should expect is the $4.4 guidance for the year, which is 2% below 2025.

Operator, Operator

Our next question comes from the line of Bruno Amorim from Goldman Sachs.

Bruno Amorim, Analyst

My question is a follow-up on the 2026 guidance, which you have reconfirmed. Can you provide expectations for the evolution during the year for production, EBITDA and free cash flow, please?

Miguel Galuccio, Chairman and CEO

Bruno, good question. The 2026 plan includes a pickup in D&C activity with 80 to 90 tie-ins during the year. We plan 20 to 22 well tie-ins during Q1, of which 10 were put on production in January with very good productivity readings so far. This led to a production rate of 132,000 barrels of oil per day in February. We are well placed for March and estimate a strong pickup, surpassing 140,000 barrels of oil per day for March. We believe Q1 will be flattish or slightly below Q4, but with very good momentum entering Q2. In Q2, we expect substantial sequential growth, then relatively flat in Q3 and another very good step in Q4. We reiterate our guidance of 140,000 barrels per day for 2026. This does not include the Equinor acquisition. In terms of EBITDA, we reiterated guidance of $1.9 billion of adjusted EBITDA for 2026, excluding Equinor. In Q1 you should expect flattish or maybe slightly lower adjusted EBITDA than Q4, then steady increases across the year, and we expect to reach an annualized run rate of around $2 billion in Q4, assuming Brent at $65. For free cash flow, 2026 will combine growth and free cash flow generation. Total free cash flow is expected to be around $150 million to $200 million at $65 Brent. Free cash flow can be affected by working capital variation and tax payments that can negatively impact some quarters, and you should expect negative free cash flow in Q1 turning positive in Q2 and onward.

Operator, Operator

Next question comes from the line of Daniel Guardiola from BTG Pactual.

Daniel Guardiola, Analyst

My question is on the acquisition of Equinor's assets in Argentina. Could you provide more color on the type curves and productivity you're seeing in Bandurria Sur and Bajo del Toro? You mentioned material upside potential in Bajo del Toro during the presentation—what is the potential growth opportunity you see in both assets?

Miguel Galuccio, Chairman and CEO

Thank you, Daniel. For Bandurria Sur, the type curves are very similar to the ones we have for our neighboring assets. We evaluated it and do not expect material differences. On Bajo del Toro, it's probably too early to provide full detail publicly. Based on the information and analysis we have so far, our stake in these assets currently produces approximately 22,000 barrels of oil per day, and we think we can double that by 2030, driven by growth in Bajo del Toro once it moves to a full development plan. We expect a couple of years with modest growth and free cash flow generation, followed by the growth of Bajo del Toro. For Bandurria Sur, our working interest produced approximately 19,000 barrels of oil per day in Q4, increasing to 20,000 in January. Based on inventory, 106 wells are allocated to our working interest and the field can continue producing at current rates until around 2030. So we see growth potential in Bandurria Sur as well. In Bajo del Toro, today they are producing around 2,000 barrels oil per day, which is similar to January levels for our working interest. This block presents significant upside based on inventory, and we are still analyzing scenarios for full development. That process will take place over the next three years and will require thinking about evacuation infrastructure.

Operator, Operator

Our next question comes from the line of Kevin MacCurdy from Pickering Energy Partners.

Kevin MacCurdy, Analyst

We've noticed meaningful progress in the country backdrop along with increased attention on Argentina and the basin overall. Is Vista seeing an expansion in oilfield service vendors or equipment entering the country? If so, would you expect this to translate into further improvement in drilling and completion costs?

Miguel Galuccio, Chairman and CEO

Kevin, very good question. Yes, the short answer is yes. We are seeing a lot of interest from service companies to enter Argentina based on increased activity and the normalization of the macro environment, including more cross-border freedom to repatriate dividends and proceeds. Many companies are adding capacity locally and that is helping reduce D&C costs, as you saw in the presentation. We continue to evolve in innovation and practices that are changing the market—examples include integration between sand logistics and completion services, wet sand projects, and higher demands for better performance and rates from completion services. We have seen and inquired with many service companies that currently operate in the Permian to see what they can do in Argentina.

Operator, Operator

Our next question comes from the line of Nicolas Barros from Bank of America.

Nicolas Barros, Analyst

I saw that your trading arm started operations this quarter. Could you provide more color on Vista Trading and your expectations on how it can help unlock more value in the company?

Miguel Galuccio, Chairman and CEO

Thank you, Nicolas. The creation of Vista Trading is part of our export-oriented strategy. Oil exports have increased significantly in recent years. During 2025, we exported 22 million barrels of oil, a 10% increase versus 2024, generating $1.4 billion of export revenues. We plan to double exports by 2028. Vista Trading is a fully owned subsidiary whose rationale is to improve our market reach. Higher volumes mean we need to develop more clients in different markets. Selling cargoes on a delivered basis will allow us to be more competitive. It's very preliminary to comment on margin, and we believe it will not be very material to the company's overall results. Having our own trading unit adds flexibility to our short-term hedging program, allowing us to hedge all sales on a short-term basis and manage cash flow on a quarterly basis. We are not planning long-term hedges today, but we see short-term benefits from having Vista Trading.

Operator, Operator

Our next question comes from the line of George Gasztowtt from Latin Securities.

George Gasztowtt, Analyst

You mentioned earlier free cash flow expectations around $150 million to $200 million this year. Prices have started the year a little above your Investor Day assumption of $65 Brent. How are you thinking about capital deployment and the capital allocation framework in the current price context?

Miguel Galuccio, Chairman and CEO

Thank you, George. We are happy with the better-than-expected Brent prices in Q1, which we attribute to market volatility and geopolitical issues. It is very early to change our plan for the year. We will watch oil price developments, but I don't expect short-term changes to the plan. Regarding long-term deployment, we have our capital allocation framework—debt reduction, buybacks/dividends, and M&A—and any additional cash will give us flexibility to be more or less aggressive depending on opportunities.

Operator, Operator

Our next question comes from the line of Joao Barichello from UBS.

Joao Pedro Barichello, Analyst

Regarding the acquisition of Bajo del Toro and Bandurria Sur, you stated the transaction will be financed by a combination of cash and bank finance. Could you provide an update on the financing plan? What are the expectations for the breakdown between cash and bank financing?

Miguel Galuccio, Chairman and CEO

Thank you, Joao. The initial $387 million cash payment will be funded 100% with debt, and we plan to keep the cash balance stable at Vista. Pablo and I have agreed with three top-tier banks on a bridge loan of $300 million of acquisition financing, which will be used to cover our initial cash payment. That should be enough to cover the initial cash payment and will not affect our balance sheet today or our CapEx plan for the year.

Operator, Operator

Our next question will come from the line of Oriana Covault from Balanz.

Oriana Covault, Analyst

Congratulations on the solid results for the quarter. Going into potential shareholder returns in a more constructive pricing scenario, what alternatives do you have in place for 2026? Specifically, do you have any thoughts to renew and/or extend the buyback program this year?

Miguel Galuccio, Chairman and CEO

Oriana, thank you. In August we executed a $50 million buyback plan approved by the shareholder meeting in April 2025. We purchased 1.2 million shares at $41.2 per share and are happy with the outcome. Considering the current share price, we plan to request an extension of the program at the upcoming shareholder meeting in April, and we expect it will be larger in size than the 2025 program.

Operator, Operator

Our next question will come from the line of Francisco Cascaron from DON Capital.

Francisco Javier Cascaron, Analyst

Given that you announced CapEx of $1.5 billion to $1.6 billion annually between 2026 and 2028, what is your maintenance CapEx expectation in the foreseeable future?

Miguel Galuccio, Chairman and CEO

Francisco, thanks for the question. Using 100,000 barrels per day of production as a reference, you need around $700 million to $750 million of CapEx to keep production flat going forward. Assuming by the end of the year we will be around 150,000 barrels per day (including the Equinor asset), we would need around 60 wells to keep production flat. That would equate to roughly $850 million of CapEx to keep production flat. You can use these numbers as a reference.

Operator, Operator

Our next question will come from the line of Matias Cattaruzzi from Adcap Securities.

Matias Cattaruzzi, Analyst

How would you characterize Vista's relationship with YPF today after the La Amarga Chica acquisition and now the Equinor deal where YPF is also an operator?

Miguel Galuccio, Chairman and CEO

Matias, thanks for the question. The short answer is the relationship with YPF is great. We had high hopes after the La Amarga Chica acquisition regarding how the relationship would evolve, and it turned out even better than we expected. It's working very well at all levels: strategic alignment at the top, technical teams working side by side, sharing geological information and collaborating on meetings. Importantly, there have been operational synergies captured from sharing treatment capacity that led to CapEx savings, sharing well services, optimizing headcount, and discussing artificial lift strategies to improve long-term productivity and reduce lifting costs. All in all, it's a great relationship and was a factor we considered when deciding to pursue the Equinor deal.

Operator, Operator

I am not showing any further questions at this time. I would now like to turn it back over to Miguel for any closing remarks.

Miguel Galuccio, Chairman and CEO

Ladies and gentlemen, thank you very much once again for your support. It was a very good quarter, and we are on track to deliver our guidance in 2026. A very good start to the year. Thank you, everybody.

Operator, Operator

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.