Vista Energy - Earnings Call - Q1 2025

Transcript

Speaker 2

Good day, and thank you for standing by. Welcome to Vista First Quarter 2025 earnings webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alejandro Chernyakov, Vista Strategic Planning and Investor Relations Officer. Please go ahead.

Speaker 1

Thanks. Good morning, everyone. We are happy to welcome you to Vista's First Quarter of 2025 Results Conference Call. I am here with Miguel Galuccio, Vista's Chairman and CEO; Pablo Vera Pinto, Vista CFO; Juan Garoby, Vista CTO; and Matías Weisel, Vista COO. Before we begin, I would like to draw your attention to our cautionary statement on slide two. 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 expectations contemplated by these remarks. Our financial figures are stated in US 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.

Reconciliation of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday, so please check our website for further information. Our company is a sociedad anónima bursátil 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 VISTA in the Bolsa Mexicana de Valores and VIST in the New York Stock Exchange. I will now turn the call over to Miguel.

Speaker 0

Thanks, Ale. Good morning, everyone, and welcome to the earning call. As you know, last week we announced the acquisition of Petronas Argentina. I am personally thrilled by the consolidation of 50% of La Marga Chica, a low-cost, high-return asset which is transformational for Vista, providing us with a significant large scale. The acquisition brings material flow in production and substantial EBITDA generation, which will strengthen our cash flow profile going forward. Today, I will first go through the quarterly results, then into the details of the acquisition and its merit, and last, I will do a Q&A session. During the first quarter of 2025, we continue to deliver robust growth year over year. We also recorded a major milestone with the inauguration of Oldelval Duplicar pipelines, reducing significantly our selling expenses as we scaled down the use of truck-to-zero by the end of the third quarter.

In Q1 2025, production was 80.9 thousand BOE per day, an increase of 47% year over year. Oil production was 69.6 thousand barrels per day, also 47% year over year. Total revenues during the quarter were $438 million, 38% above the same quarter of last year. Lifting cost was $4.7 per BOE, 8% above year over year. Capital expenditure was $268 million, driven by 16 wells drilled and 10 wells completed during the quarter, plus $49 million in development facilities. Adjusted EBITDA was $275 million, an interannual increase of 25%. Net income was $83 million, implying a quarterly EPS of $0.9 per share. Free cash flow was minus $243 million during the quarter, as we initiated a year of very strong growth. Finally, net leverage ratio at quarter-end remained strong at 0.84 times adjusted EBITDA. During Q1, we recorded another quarter of double-digit interannual production growth.

This reflects a strong performance from our development hub, with 49 wells connected in the last 12 months. We tie in 10 wells in the quarter, backloading activity to make better use of all the well pipeline expansion and minimize trucking expenses. Total production at 80.9 thousand BOE per day was 47% above the same quarter of last year and, as expected, 5% below Q4 2024. Oil production was 69.6 thousand barrels of oil per day, 47% above year over year. Gas production increased 42% on an interannual basis. In Q1 2025, total revenues were $438 million, 38% higher year over year, driven by the strong increase in oil production. On a sequential basis, the relatively lower increase in total revenues compared to the 47% increase in oil production reflects an inventory build-up of 360,000 barrels of oil, which will be reflected in the sales of Q2.

Realized oil price was $68.6 per barrel on average, down 2% on an interannual basis, mainly driven by the lower international prices. Export realization prices were $68 per barrel. We exported 3.2 million barrels of oil during the quarter, twice as much as during the same quarter of 2024. Domestic realization prices were $69.4 per barrel, including volume sold at export parity. We continue to increase the domestic volume sold at export parity pricing. During Q1, 78% of our domestic volume and 90% of our total volumes were sold at export parity. Lifting cost during Q1 was $4.7 per BOE, flat on a sequential basis, reflecting successful cost control despite the lower volumes and the underlying USD cost inflation. Selling expenses per BOE came down 19% on a sequential basis, driven by saving in truck costs, with total $27.7 million, $13.7 million below Q4 2024.

The connection of Oldelval Duplicar pipeline during the quarter enabled us to gradually reduce trucking volumes. Importantly, expansion capacity is now fully available. We have incorporated 31.5 thousand barrels of oil per day of pipeline capacity, and we forecast no trucking in Q2. Adjusted EBITDA during the quarter was $275 million, 25% higher on an interannual basis and flat compared with Q4 2024. Adjusted EBITDA margin expanded 5 percentage points on a sequential basis, driven by higher oil prices and lower selling expenses. Driven by the same factors, our net back expanded 9% during the quarter to $37.8 per BOE. During Q1 2025, cash flow from operating activities was $66 million, reflecting an increase in working capital of $59 million and an advanced payment for metering expansion of $36 million.

Cash flow used in investing activities was $310 million, reflecting a crude Capex of $268 million, an increase of $18 million in working capital, and an investment in Vaca Muerta Sur of $29 million. Free cash flow during the quarter was, therefore, minus $243 million. Cash flow from financing activities was $219 million, reflecting proceeds from borrowings of $341 million and partially offset by the repayment of borrowings of $99 million. Finally, cash at period end was $740 million, and our net leverage ratio stood at 0.84 times adjusted EBITDA. We will now deep dive into the acquisition of Petronas Argentina, which we announced last week. The purchase price was composed of $900 million in cash, a deferred cash payment of $300 million at zero interest, and 7.3 million Vista shares. This payment equates to an MPV of approximately $1.3 billion, leading to a highly accretive acquisition multiple.

With this transaction, we closed last week. We started the consolidation of 50% of La Marga Chica as of April 15, a material addition to our portfolio. La Marga Chica spans 46,000 acres in the core of Vaca Muerta and is right next to Bajada del Palo Este, Anahuada Federal. At our share, we estimate it has an inventory of 200 wells to be drilled, increasing and enhancing Vista's inventory. At our 50%, P1 reserves were 140 million BOEs, as filed at PRN 2023, a significant addition to the 375 million BOEs of P1 reserves booked by Vista. With the 247 wells on production at ERN 2024, La Marga Chica has a solid history of robust well productivity and low lifting costs, very comparable to our development hub. It is also the second largest producing block in Vaca Muerta.

Production was 79.5 thousand BOEs per day in Q4 2024, implying that our 50% we have consolidated 39.8 thousand BOEs per day. This leads to a pro forma production of 125,000 BOEs per day for such a period, of which 109,000 are oil. Petronas Argentina has secured a material amount of transportation and dispatch capacity in the mining sector. Combining the Vaca Muerta Norte and the Oldelval pipelines, we are adding 57,000 barrels of oil per day of firm transportation, 19,000 in Oldelval open access, 70,000 in Duplicar, and 21,000 in Vaca Muerta Norte. Based on Q4 2024 production data, more than 20,000 barrels per day, or around 40% of this capacity, was either providing ample room for growth and synergies with our development hub. With this strategic transaction, we are doubling down on Vaca Muerta, increasing our exposure to short-cycle low-break-even shale assets.

This deal improves our short and medium-term cash flow profile, as well as our long-term value proposition for shareholders. This constitutes a highly accretive transaction for our shareholders. At EBITDA of 2x, EBIT per flowing barrel of $33,000 and price-to-earnings of 3.8 times, the transaction multiple is comparable very positively to Vista's own trading metrics. We have consolidated a low-cost, high-margin cash-generating asset. La Marga Chica lifting cost was $4.1 per BOE in 2024, reflecting a robust operating model and solid well productivity. On a pro forma basis for 2024, the acquired company improved our adjusted EBITDA by 61%, strengthening our cash flow profile. On the same basis, adjusted EBITDA margin improved by 3 percentage points, from 65% to 68%. The transaction also increases our scale and enhances our portfolio.

On a pro forma basis, our total production for Q4 2024 will be 125,000 BOEs per day, an increase of 47%. As discussed earlier, P1 reserves and acres are also significantly enlarged. As per our estimation, La Marga Chica has an inventory of 200 wells to be drilled at our 50% working interest. We are, therefore, increasing our inventory by 20%, adding wells located in a premium area of Vaca Muerta, surrounded by Bajada del Palo Este, a region we know extremely well and which has consistently delivered extraordinary value to our company. Based on La Marga Chica's proximity to our development hub, our analysis shows there are very clear synergies we can capture related to sharing facilities, optimizing well placement close to the limit between the blocks, streamlining new well designs, and potentially sharing general services. Importantly, the acquired company holds material oil metering capacity.

By adding 57,000 barrels of oil per day of contracted pipeline capacity, we have reached almost 200,000 barrels of oil per day capacity on a pro forma basis, excluding trucks. We are thrilled to be consolidating a high-margin, low-break-even asset with very clear synergies with our ongoing operation. Based on the scale and importance of this consolidation, we are currently working on a revised version of our 2025 plan. We are, therefore, removing our 2025 market guidance, and we will present an updated guidance in our Q2 earnings call. I will make some closing remarks before we move on to Q&A. On the operational front, we have made solid progress during the quarter. Production increased 47% year over year, driven by 49 new wells drilled and connected in the last 12 months.

We reached a measured milestone as the Duplicar pipeline came online, adding 31,500 barrels of oil per day of oil transportation capacity, materially reducing our selling expenses quarter on quarter and fully eliminating trucking volumes at quarter end. Yet, the most important achievement was on the M&A front, with the execution of a transformational deal for our company. Our track record shows that we are a company that can add value through its upstream operations, as well as through business development. With acquired assets, we incorporate flowing production, material EBITDA and cash flow generation, premium new well inventory, fuel metering capacity, and potential synergies at accretive acquisition multiples.

Following this M&A transaction, Vista emerged with an improved cash flow profile and higher margins, which is very relevant in the backdrop of a high market volatility and, I think more importantly, reflects our constructive long-term vision on Vaca Muerta and long-term global oil price fundamentals. Before we move to Q&A, I would like to thank the entire Vista team for their hard work in this quarter. Specifically, I would like to thank the M&A team for the outstanding transaction that has just concluded. Operator, we can now move to Q&A. Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Alejandro De Micheles from Jefferies. Yes.

Good morning, guys. First, congratulations on the deal to the whole team. Miguel, maybe you can deep dive a little bit more on those synergies that you're talking about in terms of how long do you think it's going to take you to achieve those? How are the discussions with the operator to get access to that kind of extra capacity, the sharing of some services, as you mentioned, and how you see that kind of, say, more of a portfolio development going forward? Hi Ale, and thank you for the question. Synergies are super important, as you know, in any acquisition. We run a very solid diligent process, and we have a very good engagement with YPF in the last days. I think both teams, we are super concentrated and excited of working together.

I will say the first synergy that we perceive and we see is total transportation capacity. That clearly will bring more flexibility to our operated hub. The total capacity is 57,000 barrels of oil per day. That is compared with the current oil production that is around 20,000, leave us with 20,000 barrels of oil per day of spare capacity. We also see potential upside in sharing oil treatment facilities. La Marga Chica has two oil treatment plants. Each one of them has 80,000 barrels of oil per day capacity. That if you compare with the total production of the block, clearly there is a spare capacity that is available to us and really will save costs. The other thing that we believe that we can optimize is the drilling of the longer lateral close to the border of the two blocks.

Now that we somehow have ownership in both blocks, clearly we can optimize the work placement, doing probably longer laterals before we sometimes come short on the borders. That, from the subsurface point of view, is also an upside. Last but not least, and probably more important than everything else, we know that we share, and I share with Horacio, the important, I would say, target of reducing well contraction costs, both on drilling side and on the completion side. There are a lot of things that we can do together in terms of reducing cost of goods, cost of services, and also sharing best practice of how we drill and complete those wells. The last one, I think, is super important, and particularly in the new environment that we have in terms of price volatility. That is very useful. Thank you. Thank you.

One moment for our next question. Our next question comes from the line of Bruno Montanari from Morgan Stanley. Hi, Miguel. Ale, thanks for taking my question, and very good to see this great acquisition. I understand it's too soon to provide guidance for 2025 in the long term, which we eagerly wait for. If you can talk about what we expect in the very short term, what are you seeing now for the second quarter? In other words, what is Vista's initial reaction to activity and CapEx and how to manage the workflow right after the acquisition? That'd be great. Thank you very much. Thank you, Bruno, for your question. I think in Q2, you will see a sharp grow in production as we consolidate La Marga Chica. We finished Q1 almost at 81,000 barrels per day.

I think we should see north of, I would say, 110,000 barrels per day in Q2. Since the importance of the takeoff of our part of Bajada del Palo Este, it will come in. The important production will come in Q3. I would say you should consider north of 110 for Q2. In Q2, we are not planning on changing any drilling and completion activity plan or CapEx at the moment. Yeah, 110 Q2. Of course, we will continue growing in Q3. Most of our activity, when you see where the load of production and completion come in, it will be in Q3. Q2, you have to consider that Q2 is going to be just 75 days of this transaction. That is what I'm accounting in the 110. Super. Thank you very much. You're welcome. Thank you.

One moment for our next question. Our next question comes from the line of Daniel Guardiola from BTG Pactual. Hi, good morning, and thank you for the presentation. Miguel Ale, congrats for the transaction. I guess my question is on two fronts. One, can you share with us what is the expected leverage deterioration following this acquisition? And regarding the free cash flow generation, can you please elaborate on what happened during the Q and what are your expectations for 2025 and 2026, please? Thank you, Daniel. First of all, probably to say that PEPASA has not debt at the time of the acquisition and a very small amount of cash for working capital purpose. With the acquisition, we have incorporated $300 million of financial debt, and we paid $900 million upfront.

After the acquisition on a pro forma basis, in LTM, our net leverage ratio is around one-time adjusted EBITDA. You should see or should assume or you should expect that the net leverage ratio to be below 1.5. This, I would say, assuming a Brent of $65 during the year. If we have a different Brent, we should adjust at 1.5. This means we will require some additional financing during the year. That is obvious. In terms of cash flow, the negative cash flow that you see is related to Capex acceleration, and this was basically designed in our guidance. Before the Petronas Argentina acquisition, we have between minus $400 million and minus $500 million free cash flow based on the growth Capex and our equity in Vaca Muerta sur pipeline.

I would say that additionally in Q1, usually we have a negative working capital related to the payment activities that we execute last year. Going forward, you should know that Petronas acquisition will strain our cash flow profile because we consolidate material EBITDA generation that's coming from that block. We are reassessing our plan following the consolidation of this block, and we will issue new guidance, as we mentioned before, in Q2. Also, we will show you a new long-term plan sometime in the second half of this year. Hope I have answered your question. Thank you, Miguel. Thank you. One moment for our next question. Our next question comes from the line of Bruno Amorim from Goldman Sachs. Bruno Amorim, your line is now open. Please proceed with your question. One moment for our next question.

Our next question comes from the line of Andres Cardona from Citi. Hi, good morning, everyone. Miguel, Paulo, Ale, congratulations on this unexpected deal. Very interesting. Talking of La Marga Chica, looking at the first quarter production number, there seems to be a decline versus the fourth quarter. So versus the fourth quarter average. Can you give us some color on that? What do you expect in particular for La Marga Chica in the second quarter and for the remainder of the year? If you have any color there. Thank you, Andres. Yes, you're right. I mean, at our 50% share, Q4 was around 39,000 barrels per day. There was a lower new oil activity in Q1, leading to an average of 34,000 barrels per day. Today, I look at the production yesterday, it was 35,000 barrels per day. We expect a pickup in production in Q2.

As for well, we are tying in March 14, in April, and they're planning 10 new well tyings in May and June. When you look at Q1, we'll be completed with 10 tyings. Q2, I would say, you should assume between 20 and 24 tyings. For the full year, around 50 tyings. You should see a pickup coming up, a good pickup coming up that you will see in our production in Q2. Thank you. One moment for our next question. Our next question comes from the line of Rodolfo Angel from JPMorgan. Hi, good morning. First of all, congrats for the acquisition. My question is on, have you on peak production looking forward? Before the acquisition, the plans were of reaching 150,000 barrels a day by 2030.

I understand there's no guidance yet, but could you comment on what do you see potential volumes for Vista in the long term? That's my question. Thank you very much. Thanks, Rodolfo, for your question. As I mentioned, we are planning to hold an investor day second half of the year. Clearly, our new plan will accelerate our ambition to reach 150,000 barrels per day in 2030. Our new strategic objective, you should assume that we'll be aiming to new heights, will be about 150,000 barrels per day. Really, part of this acquisition was to accelerate this 150,000 that now is around the corner. Thank you, Rodolfo, for the question. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Leonardo Marcondes from Bank of America. Hi, everyone. Good morning for picking my question.

I would like to know if you guys continue to explore other M&A opportunities post the La Marga Chica acquisition. We know that there are other opportunities in the market. It would be good to know if you continue to assess these opportunities. Thank you very much. Thank you, Leo, for the question. Yeah. As you know, I mean, we have a good track record of creating value through M&A. We are not only a good operator, we have a top-notch BD team at Vista. It is part of our strategic approach. I mean, we will continue doing that. As we increase our scale and our cash flow profile, we will continue assessing opportunities as they come or as we see them. Of course, we will continue setting very high value in terms of value acquisition and strategic fit.

The short answer is yes, we are, and we will continue assessing new opportunities. We will not change our strategy. You will expect something that comes out of what we do. Yes, the key will be that we maintain our discipline of that acquisition to be accretive to our shareholders and to our story. That is very clear. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Vicente Falanga Neto from Bradesco BBI. Good morning. Thank you, Miguel, Alejandro, Juan. I wanted to understand a little bit more what are the key operational advantages and disadvantages that La Marga Chica has over Bajada del Palo Este. Miguel, you also commented that you could potentially drill new well designs. Could you provide more details on that to some extent?

How much longer laterals could La Marga Chica wells have, more frac stages? And can you get the La Marga Chica type curves closer to Bajada del Palo Este? Thank you. Vicente, for the question, look at, first of all, these two assets are great assets, okay? They are in the core prime area of Vaca Muerta. The rock quality in both cases, we know then they are very good, I think best in class within Vaca Muerta. The rock, as you know, they are actually next to each other. We have studied them very well. Definitely, our geologists see geological continuity. If you look at the productivity per well, they are also very comparable. Maybe BPO in average is slightly better today, okay? La Marga Chica started before. I believe they are very close. BPO is in early stage of development.

We have less well drilled, less landing zone tested. Therefore, there's more upside in terms of inventory and production growth. You mentioned well design. I mean, well design, I think whatever we do next, and we are always looking to what we can do differently in order to be more efficient in the placement and the development of the reserve. Also, we are looking always, and we are looking now on how we can reduce our CapEx in terms of well cost, achieving similar productivities. I would say whatever we do or whatever recipe we find, it will be applicable to La Marga Chica. As I mentioned before in one of the previous questions, part of the key is working also with YPF and sharing the learning from both sides, okay? YPF people are technical people that we know very well.

As you know, we consider them co-workers. What we can do in using the strength of Vista and the strength of YPF to make the best of both blocks is part of the key to continue progressing. We will have that level of cooperation between the two companies. At the end, we have both the same objective that is try to create value from the development of the well. As I mentioned before as well, as we come in a market with more uncertainty in terms of oil prices, whatever we do to reduce cost of service, goods, capital, and applying best practices, it will be key. I cannot comment on anything specific today. Probably when we show our Q2 plan, we will go through some specifics on what we are doing on that front. Thanks for your question. Thank you very much. Thank you.

One moment for our next question. Our next question comes from the line of Kevin McCurdy from Pickering Energy Partners. Hey, good morning, and I appreciate you taking my question. My question is on your outlook for Brent oil prices and the impact on your long-term plan. Oil prices have retreated over the past several weeks. Do you have an internal view on mid-cycle Brent prices? And have you considered how your long-term plans might be impacted by lower prices? Thank you. Hi, Kevin. Happy to have you on board covering Vista. Thank you for that. Looking to oil prices, today we are below Q1 levels. That is a fact. Q1 was $75 on average. In April, demand-to-date average is $67, and today is $65. We are obviously going through a period of increasing volatility, especially since the start of April, okay? We have seen that.

However, when you look at the last days, we have seen, I would say, positive correction to the negative announcement that led to the increase in volatility, okay? In the long term, I have no doubt about the strength of the fundamental of oil and gas sector. We continue to see a strong long-term oil demand. Also, we're still seeing some uncertainties in terms of long-term supply and where that supply will come from. I have no doubt that the fundamentals for the long term are there. We have to manage to drive through the times of volatility. With that, I think for that, I think we have the right team, the right company, and the right asset because our assets are short-cycle assets. We have proved that during the COVID-19 years.

Vista has the agility and the contractual arrangement to accelerate and also to stop or reduce when we have to do that. I cannot probably put more color to your question. I think in Q2, we will give you a new guidance. With that new guidance, we will adjust activity and oil prices view. If you hold and wait for us for Q2, I will give you more precision on your question. Thank you again. Good to have you on board. Thank you. One moment for our next question. Our next question comes from the line of George Gasztowtt from Latin Securities. Hi, good morning. Thank you for taking my question. Prior to the incorporation of the new assets, trucking was expected to pick up slightly in 2026 before Vaca Muerta Sur comes online.

With the addition of its new midstream capacity, should we now expect trucking to be fully phased out? Hi, George. Thanks for the question. First of all, since April 1, we are not trucking oil, okay? We are happy for that, and it is saving us a lot of costs. This new acquisition, as we mentioned, brings 57,000 barrels of new midstream capacity. With that, the full capacity of Vista is taken to a total of 144,000 barrels if I am calculating well. Now, we are working on a new plan. I mentioned that we accelerated 150, and we will have a new ambition. For that, we will require new capacity. In the new guidance, we will show you what we are planning to do. Depending on that, we may need a bit of trucking capacity. We have that infrastructure in place, or we will not.

But clearly, if we need it, it's going to be very little. Thank you. That's very clear. Thank you. One moment for our next question. Our next question comes from the line of Victor Modenese from UBS. Good morning, Miguel, Alejandro, Juan. Most of my questions have already been answered, so I would just like to confirm one final point regarding the acquisition of La Marga Chica. Can you confirm if the transaction is now complete and the acquired stake is fully incorporated into Vista, or are there any regulatory approvals and precedent conditions pending? Thank you. Thank you, Victor. It's a good question. We'll look into that. The short answer is the transaction is completed, and we are basically currently consolidating PEPASA Asset 315, which includes 50% of La Marga Chica.

We are formally filing the transaction with the Antitrust Agency, and we do not foresee any competition issues based on the precedent cases that we have in Argentina within the oil and gas industry. There are no other regulatory approvals pending, and there are no condition precedents. The short answer is this deal is completely closed. Okay, that's very clear. Thank you. Thank you. One moment for our next question. Our next question comes from the line of Bruno Amorim from Goldman Sachs. Yes. Hi, good morning. Can you hear me? Hello, can you hear me? Yeah, we can hear you. Okay, thank you. I just have a follow-up question on the recent acquisition that you have made.

The acquisition of Petronas, does it change to some extent your plans for the current asset, or should we think about the existing operation and the new asset as independent operations? Thank you. Yeah, Bruno. Given the consolidation of La Marga Chica, we have removed the guidance of 2025 from the market, and we are already working on the revised plans as we speak. We are incorporating the activity of the acquired asset, and we are focused on protecting basically balance sheet, maintaining a healthy level ratio, as I mentioned, in a very volatile environment. We are reassessing the CapEx plan, making a new plan that considers both the operating and non-operating CapEx. We believe the new plan.

We believe the new plan will be much more solid to the one that we have today due to the new production that is coming in and the adjusted EBITDA that we have consolidated. More importantly, probably for this year, it will be that we will have a stronger free cash flow, and with that free cash flow, we will have more flexibility. Again, as I said before, if you bear with us, we will issue that new guidance in Q2 during the earning call. Thanks for the question. Thank you. Thank you. At this time, I would now like to turn the conference back over to Miguel Galuccio for closing remarks. Thank you very much, everybody, for participating. Needed to say that we at Vista, we are super happy with this acquisition.

It takes the company to a different level of scale, different level of strength, and of course, different level of flexibility because now we have a bigger playground to play. Again, thank you for the report, and thank you for the support. Have a good day. This concludes today's conference call. Thank you for participating. You may now disconnect.