Vista Energy, S.A.B. de C.V. (NYSE:VIST) Q2 2023 Earnings Call Transcript

A very good economical well today that is performing 7% below Bajada del Palo Oeste type curve after 90 days of production. And probably the biggest and more important news related to this quarter is Bajada del Palo Este-2, one well on the center of Bajada del Palo Este block land in La Cocina, a length of 2,800 meters, only 47 stages was tied-in April and is producing 70% about Bajada del Palo Oeste type curve after 80 days. This is a super well. It’s producing 3,000 barrels oil per day of IP30. So, I mean, it will be probably ranked between the best wells that we have drilled in the area. So, back to your question, Bajada del Palo Este, Bajada del Palo Oeste and Aguada Federal for us represents today one development block. So, of course, anything that is related to acceleration naturally will be done in those three blocks.

As you know, I mean, with the treatment capacity connections between these two blocks is seamless for us because it’s just internal pipeline that we have to relate. So, yeah, the focus of any acceleration program will include Bajada del Palo Este on it. So that is the answer. Walter, I don’t know if I’m missing anything.

Walter Chiarvesio: No, it’s just that — the follow-up is, would imply a lower lifting cost or — sorry — cost of drilling and transportation cost per barrel, taking this higher productivity costs in the future.

Miguel Galuccio: We are not updating our type curve. I mean, this is — as you know, we have — our place has a statistical nature. So, therefore, we continue having the same type curve for all this block. So, we are not planning to do any upgrade of the type curve for the moment. Even though, yes, I mean, there are a few good wells.

Walter Chiarvesio: Perfect. Thank you very much, Miguel.

Miguel Galuccio: You are welcome.

Operator: Thank you. One moment for our next question. Our next question comes from the line of Regis Cardoso from Credit Suisse.

Regis Cardoso: Hi, Miguel. Hi, everyone. Thanks for taking my questions. A couple of topics I wanted to touch on. A quick one first is, how do you compare guidance with the actual production and EBITDA so far in the first half of this year? I mean, it appears you’re probably lagging behind that guidance. Most likely, your production and EBITDA will increase in the upcoming quarters. But is it still the case that you believe the guide is in place? That’s the first question. The second question would be going back to the previous one, you just answered, Miguel, about the order of the development of the assets. You said you’re thinking about everything around the Bajada del Palo as one field, right, one cluster. But does it imply — I mean, where are the better opportunities?

Is it in any specific window, in any specific fields that you prioritize? I mean, say, start with La Cocina in Bajada del Palo Oeste and then going to the others? Or can you do different targets simultaneously? So that will be the second question. And then maybe if I may, just a quick third one. How do you expect the share of exports to grow in your sales? And how do you think that will affect your realization price in the future? I mean, do you think Vista would capture more of the oil price upside, say, if Brent prices were to go up again? And is exporting still a preferred route, say, if oil prices were to come down, just to understand how do you balance realization prices with the growing share of exports? Thanks.