Daniel Guardiola

Daniel Guardiola asked for more color on the type curves and productivity observed in Bandurria Sur and Bajo del Toro following the Equinor acquisition, and the potential growth opportunities in both assets.

Answer

Miguel Galuccio, Founder, Chairman, and CEO of Vista Energy, stated that Bandurria Sur type curves are similar to Vista's existing assets, but it's too early to comment on Bajo del Toro. He mentioned the acquired stake currently produces 22k BOE/day, with potential to double by 2030, driven by Bajo del Toro's full development. Bandurria Sur (19k BOE/day in Q4 2025, 20k in January 2026) has 106 wells allocated to Vista's interest and can maintain current rates until 2030, with some growth potential. Bajo del Toro (2k BOE/day) presents significant upside, with full development planned in the next three years, requiring infrastructure.

Daniel Guardiola asked for more color on the type curves and productivity observed in Bandurria Sur and Bajo del Toro, and the potential growth opportunities in both assets following the acquisition of Equinor's assets.

Answer

Miguel Galuccio, Founder, Chairman, and CEO of Vista Energy, stated that type curves for Bandurria Sur are similar to existing assets, while it's too early to comment on Bajo del Toro. He noted that the acquired assets currently produce 22,000 BOEs/day, with potential to double by 2030, driven by Bajo del Toro's full development. Bandurria Sur (19,000 BOEs/day in Q4, 20,000 in January) has 106 wells and can maintain current rates until 2030 with some growth potential. Bajo del Toro (2,000 BOEs/day) presents significant upside for full development within the next three years, requiring infrastructure considerations.

Daniel Guardiola from BTG Pactual questioned the large negative free cash flow in Q2, focusing on the deterioration of working capital and the company's free cash flow strategy for 2026 and beyond amid price uncertainty.

Answer

CEO Miguel Galuccio attributed the negative free cash flow to several one-off items: the $842 million net outflow for the Petronas acquisition, a $250 million income tax payment, and a $140 million increase in CapEx working capital. He stated that based on the updated plan, Vista forecasts neutral free cash flow for the second half of 2025, composed of a negative Q3 and a positive Q4. For 2026 and onward, he confirmed the model shows positive free cash flow generation alongside continued growth.

Daniel Guardiola questioned the expected impact on leverage following the acquisition and sought clarification on the negative free cash flow in Q1, as well as the outlook for 2025 and 2026.

Answer

Miguel Galuccio, Chairman and CEO, explained that the pro forma net leverage ratio is approximately 1.0x and is expected to remain below 1.5x, which may necessitate some additional financing. He attributed the negative Q1 free cash flow to planned CapEx acceleration and seasonal working capital effects, noting the acquisition will strengthen the future cash flow profile. New guidance will be provided in Q2.

Daniel Guardiola requested an update on the sale process for Exxon's assets in Argentina, asking if Vista is still participating and what strategic merits the assets hold.

Answer

Chairman and CEO Miguel Galuccio confirmed Vista remains in the competitive process, stating the assets are attractive as they could establish a new, material development hub in the north. However, he emphasized that Vista has sufficient acreage for its growth plans regardless of the outcome.

Daniel Guardiola asked about the potential sale of the Permian asset, inquiring if there was a formal instruction or political request for divestment, the management's stance, the rationale, and any value creation/destruction analysis. He also questioned Ecopetrol's evaluation of the risk of a senior management member appearing on the OFAC list and its potential impact on financing, market access, and vendor relationships.

Answer

Julián Lemos, VP of Strategy and New Businesses, stated that Ecopetrol and its shareholders are not interested in divesting Permian, emphasizing that any portfolio decision would be rigorously analyzed and discussed by the board. Rodolfo García, Chief Compliance Officer, explained Ecopetrol's robust corporate governance and compliance system for ongoing risk monitoring and mitigation. CFO Camilo Barco added that a mitigation plan is in place to address potential sanctions, ensuring access to capital markets and compliance with financial obligations.

Daniel Guardiola asked about the public discussion regarding a possible sale of the Permian asset, inquiring if there was a formal instruction or political request to sell, management's stance, the rationale, and any value creation/destruction analysis. He also questioned if the company had evaluated the risk of a senior management member being on the OFAC list and its potential impact on financing, market access, and vendor relationships.

Answer

Julián Lemos, VP of Strategy and New Businesses, stated that Ecopetrol and its shareholders are not interested in divesting Permian, and any portfolio decision would be rigorously analyzed by the board. Rodolfo García, Chief Compliance Officer, explained that Ecopetrol has a robust corporate governance and compliance system, continuously monitoring and evaluating such scenarios with identified mitigations. Camilo Barco, CFO, complemented that a mitigation plan is in place for potential OFAC sanctions to reduce or eliminate risks to capital markets and financial obligations.

Daniel Guardiola inquired about the projected trajectory of YPF's lifting and asset costs for 2026 and beyond, considering asset sales and contract renegotiations, and asked about the company's maximum comfortable leverage ratio and any plans for oil price hedging.

Answer

Chairman and CEO Horacio Marín stated that YPF is actively negotiating with service companies to reduce unit costs for drilling and completion, with more details forthcoming, and expects lifting costs to remain in the current low range. He noted that the leverage increase to 2.1x was due to two recent asset acquisitions, confirming YPF is at its maximum comfortable level and expects a reduction in 2026, emphasizing the long-term value of these acquisitions.

Daniel Guardiola inquired about the envisioned trajectory of YPF's lifting and asset costs for 2026 and beyond, considering asset sales and contract renegotiations, and the company's maximum comfortable leverage level, including any consideration for hedging oil price exposure.

Answer

Chairman and CEO Horacio Marín stated that YPF is actively negotiating with service companies to reduce unit costs and expects lifting costs to remain in the current low range. Regarding leverage, Mr. Marín explained that the current 2.1x ratio is due to two strategic asset acquisitions, and YPF considers this its maximum comfortable level, anticipating a reduction in 2026. He did not comment on oil price hedging.

Daniel Guardiola of BTIG followed up on the Argentina deal, asking if parties can withdraw without penalty after May 13, what specific requirements are holding up the closing, and if GeoPark is considering further cost-saving measures.

Answer

Outgoing CEO Andrés Ocampo confirmed that either party can withdraw from the Argentina deal without penalty after the outside date and stated that GeoPark has complied with all requirements. CFO Jaime Caballero Uribe explained that the company is in a solid position to weather market volatility and is focused on total cash cost efficiency across OpEx, G&A, and taxes, but the current plan remains solid and does not require immediate changes.

Daniel Guardiola raised concerns about the deteriorating OpEx per barrel, which has nearly doubled in two years, asking for the drivers and mitigation plans. He also requested an update on the prolonged production halt in Brazil and the progress of the DUPLICAR pipeline project in Argentina.

Answer

Executive Rodolfo Terrado attributed higher OpEx to increased fluid handling and spot energy prices, stating the goal is to return to a $10-$12/bbl range by locking in energy contracts and purchasing facilities. Executive Jaime Caballero Uribe added that immature exploration assets also temporarily inflate costs. Regarding Brazil, Terrado updated the restart date to late February. For DUPLICAR, Uribe confirmed a March online date, which will add 9,000 bbl/d of net evacuation capacity for GeoPark.