Andres Cardona

Andres Cardona asked how the recent inclusion of the upstream business in the RIGI scheme could impact the development plan for the Bajada del Toro and Aguila Mora clusters.

Answer

Miguel Galuccio, Founder, Chairman, and CEO of Vista Energy, explained that the RIGI scheme, now including upstream projects, is a positive regulatory change. He detailed benefits such as accelerated amortization, reduced corporate tax, zero export taxes after three years, and partial retention of export proceeds abroad. He noted that the scheme could be applicable to development blocks like Ipanure Norte, Aguila Mora, and Bajo del Toro, calling it a very welcome initiative.

Andres Cardona inquired about the impact of the recent inclusion of the upstream business in the RIGI scheme and how it might alter the development plans for the Bajada del Toro and Aguila Mora clusters.

Answer

Miguel Galuccio, Founder, Chairman, and CEO of Vista Energy, explained that the RIGI scheme, which now includes upstream projects with a minimum $600 million investment, offers benefits like accelerated amortization, a decrease in corporate tax from 35% to 25%, zero export taxes after the third year, and partial retention of export proceeds abroad. He believes this positive regulatory change could be applicable to development blocks such as Ipanure Norte, Aguila Mora, and Bajo del Toro.

Andrés Cardona from Citigroup asked about Vista's current appetite for potential M&A and whether related industry divestiture processes were advancing.

Answer

CEO Miguel Galuccio responded that Vista is 'always hungry for the right opportunity' and will continue to actively assess potential deals, especially given its increased scale. However, he stressed that the company has set a high bar for any transaction in terms of value accretion for shareholders and strategic fit, indicating a disciplined approach.

Andres Cardona Gómez noted a sequential production decline at the La Amarga Chica asset in Q1 and asked for an explanation and the production outlook for the remainder of the year.

Answer

Chairman and CEO Miguel Galuccio confirmed the decline resulted from lower new well activity in Q1. He anticipates a production pickup in Q2, driven by 10 new well tie-ins planned for May and June, and projects a total of approximately 50 tie-ins for the asset for the full year.

Andres Cardona asked for an update on the Vaca Muerta Sur midstream project, including key dates for capacity additions and how it integrates with production evacuation plans leading up to 2026.

Answer

CEO Miguel Galuccio reported significant progress on the Vaca Muerta Sur project, with all relevant shareholder documents signed and EPC contractors awarded. He stated that Vista has secured 50,000 barrels per day of capacity and expects the project to be operational by mid-2027, positioning it as the key mid-to-long-term evacuation solution for the company.

Andres Cardona requested a short-term estimate for the company's oil trucking activity in the fourth quarter.

Answer

Chairman and CEO Miguel Galuccio projected that trucking volumes would increase from ~12,300 bpd in Q3 to an average of ~23,000 bpd in Q4 due to production growth ahead of new pipeline capacity. He expects this number to decline in Q1 2025 as the Oldelval expansion comes online.

Andrés Cardona from Citigroup Inc. sought updates on the investment opportunities in Armenia and Italy, specifically requesting visibility on the timeline for providing more detailed information about these projects.

Answer

CFO Jorge Arruda provided an update on Italy, mentioning the recent environmental assessment approval for the Florence Airport Master Plan. He outlined the next step as the "Conferenza di Servizi," expected to start by the end of Q1 and last approximately three months, after which works could commence. For Armenia, Mr. Arruda noted ongoing positive discussions with government officials but reiterated the difficulty in providing a precise timeline.

Andrés Cardona requested an update on the investment opportunities in Armenia and Italy, specifically seeking visibility on the timeline for providing more project details.

Answer

Jorge Arruda, CFO, explained that for Italy, the environmental assessment for the Florence Airport Master Plan was approved, with the next step being the Conferenza di Servizi expected to commence towards the end of Q1 2026, a process estimated to take three months before works can begin. For Armenia, discussions with government officials are progressing, but a precise timetable for project details is not yet available.

Andres Cardona from Citigroup Inc. asked if management still considers the Permian assets strategic, expressed concern about declining oil production in Colombia (excluding CPO-9), and questioned the priority between dividends and inorganic expansion amid M&A appetite.

Answer

President Ricardo Roa Barragán affirmed the Permian assets remain strategic for reserves and profitability. Acting VP of Hydrocarbons Juan Carlos Ortado countered the production concern, noting that Colombian crude output actually increased semester-over-semester. Julian Lemos, VP of New Businesses, and CFO Camilo Barco Muñoz clarified that capital allocation balances portfolio optimization with a disciplined dividend policy (40-60% payout).

Andrés Cardona of Citigroup asked whether the pressure on margins could be partly explained by the increase in energy prices seen year-to-date, or if it was exclusively a result of the company's pricing strategy.

Answer

Diego Jalón, Manager of Investor Relations, clarified that the margin pressure was primarily due to a more challenging competitive dynamic rather than energy prices. He expressed optimism for a recovery in pricing in the coming months and noted that while inflation-adjusted figures can be difficult to compare, the company expects to return to its previous USD-based pricing and margin levels in a reasonable timeframe.

Andrés Cardona from Citigroup asked for an update on assets slated for divestiture beyond the Andes project and sought to understand the profitability rationale behind offering nighttime discounts on fuel in the downstream business.

Answer

CEO Horacio Daniel Marín confirmed that Metrogas is a divestiture target following its concession extension. He enthusiastically explained that the nighttime fuel discounts are a data-driven strategy using real-time monitoring to boost sales during low-demand hours. This initiative has already increased nighttime volume by over 30% and cut station losses by half in one month.

Andrés Cardona asked for an update on assets slated for divestiture beyond the Andes project and requested the strategic rationale for offering fuel discounts at night, specifically how this improves profitability.

Answer

CEO Horacio Daniel Marín identified Metrogas and a closed refinery as additional assets targeted for divestiture. He passionately explained the downstream strategy, noting that real-time data showed nighttime operations were unprofitable. The discounts were designed to reduce these losses by stimulating demand, and in the first month, the initiative increased nighttime sales by over 30% and cut losses in half.

Andrés Cardona of Citigroup asked for an update on assets slated for divestiture beyond the Andes project. He also requested a deeper explanation of the profitability rationale behind the downstream strategy of offering fuel discounts at night.

Answer

CEO Horacio Daniel Marín identified MetroGas and a closed refinery as other assets for divestiture. He enthusiastically described the nighttime discount strategy as a 'unique' and 'amazing' data-driven initiative. By analyzing real-time demand at each gas pump, YPF identified that late-night operations were unprofitable. The discounts were designed to boost demand during these low-traffic hours, successfully increasing sales by over 30% and cutting losses in half within the first month.

Andrés Cardona from Citigroup asked for an update on assets slated for divestiture outside of the Andes project and requested the strategic rationale behind offering nighttime fuel discounts in the downstream business.

Answer

CEO Horacio Daniel Marín identified Metro Gas and a closed refinery as other assets targeted for divestiture. He enthusiastically explained that the nighttime fuel discount strategy is a data-driven initiative to counter negative profitability during low-demand overnight hours. The program has already boosted nighttime sales volume by over 30% and cut associated losses in half within the first month.