Vista Energy SAB de CV (VIST) 2025 Q4 法說會逐字稿

Good day and thank you for standing by. Welcome to the VISTA's fourth-quarter and full-year 2025 earnings webcast conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would like to hand the conference over to your speaker today, Alejandro Chernacov, VISTA Strategic Planning and Investor Relations Officer. Please go ahead.

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. 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 the expectations contemplated by these remarks.

Our financial figures are stated in US dollars and in accordance with International Financial Reporting Standards. 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 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 BIST in the New York Stock Exchange. I will now turn the call over to Miguel.

Thanks, Ale. Good morning, everyone, and welcome to this earning call. 2025 was a year of many achievements for VISTA. marked by the substantial value creation for our shareholders through growth in our core development, significant well-cost savings, and accretive M&A. The acquisition of 50% stake in La Marga Chica marked a major milestone in our successful growth journey, turning VISTA into the largest independent oil producer of 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 end of the decade. Today, we will go over our Q4 results and a summary of the highlights of the full year. During the fourth quarter of 2025, we continue 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 Marga 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 the last year, and 2% below the previous quarter, driven by lower oil prices. Lifting costs was $4.1 per DOE, 20% below year-over-year, and 8% below visa BQ3. Capital expenditure was $355 million, driven by new well activity during the quarter. Assisted VDA 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 a strong cash flow of operations. And finally, our net leverage ratio at ERN was 1.5 times on a performance basis, flat quarter-on-quarter.

Total production during Q4 was [135.4 thousand] VOEs per day. As in the previous quarter, we record a solid 7% growth on a sequential basis, driven by robust web productivity and 60 net tie-ins during the quarter. . On an inter-annual basis, production growth was 59%, reflecting our larger scale of the acquisition of La Marga Chica, combined with organic growth. Oil production was [118.3 thousand] barrels per day, 8% of OQ-3, and 61% higher year-over-year. Gas production increased 45% on an interannual basis. 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 upset 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% on inter-annual basis, and 9% on a sequential basis in both cases, driven by lower oil prices. During Q4 again, We sold 100% of all volumes at export parity prices, both domestically and internationally. In Q4, lifting cost was $4.1 per DOE, 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 VUE, down 48% on inter-annual basis, driven by the elimination of oil tracking as of the end of Q1.

Adjusted VGA during the quarter was $444 million, 62% higher inter-annually, mainly driven by the consolidation of 50% working interest in La Amarga Chica and organic production growth in our core development hub, which more than upset lower oil prices. On a sequential basis, adjusted EBITDA declined 6%, as lower oil and natural gas prices upset production growth. Assisted EBITDA margin was 64%, up 8 percentage points compared to the same quarter of last year, as the decrease in selling expenses upset lower oil prices. Similarly, net back was $35.6 per VOE, up 2% on an inter-annual basis. During Q4 2025, cash flow from operating activities was very robust at $435 million, even after 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. 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 for $618 million, partially offset by the repayment of borrowings for $368 million and interest payment of $75 million.

Our position remains very strong, standing at $538 million at ERN. Our net leverage ratio on a performance basis, reflecting the Petronas-Argentina transaction, stood at 1.5 times adjusted EBITDA, flat vis-a-vis 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 de-risk of the Structural Fork Area Embajada del Palo Este with the acquisition of a 50% working interest in La Marga 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. from 50 in 2024, reflecting the CapEx acceleration in our strong portfolio of a short cycle high return wealth in the oil window of Vaca Muerta. This boost total production to over 115,000 barrels of oil per day, 66% about 2024. Our solid operational performance was also reflected by the cost reduction. with 3% lifting cost savings and 15% DNC 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 in the decarbonization process in our facilities, We reduce COP1 and COP2 greenhouse gas emissions intensity by 23% to 6.8 kilos of CO2 equivalent per VOE. This plays VISTA's operation within the first decide 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 credit to balance the scope one and two emissions of our operated oil and gas production. Finally, in 2025, we continue delivering a strong financial performance.

Adjusted EBITDA grew 46% compared to the previous year, reaching $1.6 billion. Earning per share amounted to $7, and ROC was 29%. Finally, we executed a share-by-back 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 per day was the 112 to 114 guidance rates.

Production during the second semester was also about guidance, 131,000 BAs per day compared to the guidance of 125 to 128,000. Adjusted EBITDA was $1.6 billion and stood at the top end of the range we guided at mid-year. We also met the adjusted EBITDA guidance for the second semester. recording $0.92 billion or an equivalent of $1.83 billion on annualized basis. Lifting costs at $4.4 per VOE mark another delivery with respect of our $4.5 guidance.

We were also very efficient with the use of the capital by delivering 74 wealth 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 asset in Vaca Muerta. This constitutes a highly accretive transaction for our shareholders, as reflected by the implied EB to EBITDA and EV per flow in barrels metrics compared to VISTA market value.

The acquired asset will enhance our portfolio by adding more than 27,000 net acreage, which currently produce around 22,000 barrels of oil per day, and generate positive forecast 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 create many opportunities for synergies in the subsurface characterization, service facilities, meeting capacity, cruise scheduling, and oil field services contracting.

As disclosed in our filings, the agreement is subject to two conditions present. The first one was already achieved last week. We were informed that Shell had waived its right of fair 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 an annual guidance across all key metrics.

During 2025, we record robust operation performance, increasing total production, P1 reserve, and expanding well inventory. We achieved material lifting costs and selling cost savings that improve our margin. setting lower oil prices. We also captured significant DNC cost reductions through the commercial, supply chain, and technological innovation. This strong operational performance, combined with the acquisition of 50% worth of interest in La Marga 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 a creative 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 Instructions) Walter Chiarvesio, Santander.

Perfect. Okay. Thank you for taking my question, and congratulations for such a moving year for the company. My question is regarding the acquisition of Bandurria Sur. What are the next steps, especially in terms of CapEx-free allocation? If there is any, I see that the numbers of words for the years remain the same. But if you think that there will be some CapEx-free allocation, what is the situation regarding facilities with the new situation of the company and the acquisition of all the blocks in 2025? Thank you.

Thank you, Walter, for your question. So the main milestone, so starting with your first part of the question, the next step, the main milestone, which was Shell's right of fair refusal, was already clear. We are now going through the Chilean antitrust process that was filed on February 11, jointly with Equinor. So the relevant documents are already in the Fiscalía Nacional of Economía. So based on all that precedence, we believe we should be closing during Q2.

Related to capital allocation and the QNOR acquisition, going to the QNOR deal, we are currently focused on the process of closing the deal, and it's, for us, a bit premature to comment anything related to the new plan. But in terms of general principles that we assume in $65 Brent, The CapEx plan for the existing asset is not affected by the new asset.

That means we will continue having the plan as we have, and the acquisition that we have done will be self-funded by the EBITDA and CapEx generation of the asset that we have acquired. You asked also another question related to the facilities. So we don't see any issues with the facilities in the acquisition of Bandurria Sur. We have plenty of facilities there.

They have spare capacity. Also, we have spare capacity. Different will be for the development of Bajada de Toro, where it's very close to one of the assets there, Aguila Mora. But that will require new facilities. As far as we know, Duplicar Norte is ongoing. So one option that we have is to tap into that pipeline that I think has been linked by other companies, Blue Petrol, CVX, and Tech Petrol. So that could be an option, but that will not happen in the in the next year or even in the next few years.

Okay, perfect. Thank you very much, Miguel.

Bruno Montanari, Morgan Stanley.

Good morning, Miguel, Ale, everyone. Thanks for taking my question. My question is also about capital allocation, but more on a broad perspective. So the company is generating cash, and we believe that that cash generation should increase substantially in 2026 and beyond. So can you help us how to think about options, such as accelerating drilling activity in case oil prices increase, or pursuing acquisitions around your existing acreage and or distributing cash back to shareholders. So how do you think about using that incremental cash that will be generated in the coming years? Thank you very much.

Thank you for your question. The actual operation is running between four and five weeks from now to 2028. And we have an inventory life of 15 years. So we think that we are close to the optimum activity level relative to the size of the assets that we have. If we see the old price go above our assumptions in our plan, you could see that we add some wealth to the plan, but wouldn't expect that we will have anything that is completely material change compared to what we have in the plan today toward 2028.

Most of the cash that we will generate will be allocated through our capital allocation framework that we present in Investor Day, that is buyback and dividends, M&As, and debt reduction. How we are going to split between the three, I mean, we would like to maintain that flexibility based on the options that we have at the moment. but this is basically what we plan to do with the cash. Thanks for your question, Bruno.

Alejandro Demichelis, Jefferies.

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

Thank you, Ale, for your question. And yes, one of the things and one of the initiatives that we are very proud of is the reduction of BNC costs where we are putting a lot of effort and a lot of innovation. So we made very good progress during the second semester. We fully implemented the use of BOIC with SAN, as well as our property FRAC real-time monitoring tool, streaming the completion shows. We talk about that tool a bit during our Investor Day. On the contractual side, we renegotiate our contract with our measure provider and the drilling services.

All that led to an important saving. In all, this initiative led to a DNC cost of $12.1 million per well in the second half of 2025 in Bajada del Palo Oeste. This, taking consideration, 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 from Bajada del Palo Este, sourced from our new mine in Beijing. This new mine is 100 kilometers from our operation, so it's probably the closest one to any operation in Baja Muerta today.

With that, we plan to save some logistic costs for the entire core development hub. We are also working on the debundling of completion services. We are testing new pump technology that can replace diesel for natural gas. And also, we are testing new casing design that reduces steel costs. This project will drive 2026 and 2027 world cost savings. We are on track to deliver $11.7 million per well this year and $11.3 million in 2027. And my personal opinion that we can go further down on that target if all these come into place. That's clear. Thank you. Yeah, you're welcome.

Andres Cardona, Citi.

Good morning, Miguel and team. Congratulations on the good set of results. And my question has to do with the recent inclusion of the option business to the REGIE and how it could change the development plan of the cluster of Baja del Toro and Aguilamora. Thank you.

Thank you, Andres, for the question. And so first, probably to put that question in context, I will I will talk a bit about the RIGI. So the new RIGI scheme consists of incorporating basically Aftrin projects. During the late masses, Aftrin was not part of the scope of the RIGI. In our view, this is a very positive change in regulation, a clear condition to accelerate investment and growth on 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 on the first two years. Also, there is a ratio between cash from operations and total CapEx.

The benefits that they really bring include accelerated amortization, a decrease in corporate tax from 35% to 25%, 0% export taxes after the third year, and being able to keep partial export proceeds abroad also after the 30 years. So we are analyzing the scheme in detail. Based on our preliminary analysis, we believe that that could be applicable to some of our development blocks, as you mentioned. One is Andurria Norte, the other one could be Aguila Mora, and eventually also can be applied to Bajo del Toro. So very good initiative from the government, very welcome by us and by the industry.

Milene Carvalho, JP Morgan.

Good morning, everyone, and thank you for the opportunity. After all those questions on the strategic deals, I would like to go back a little bit on the operational side. So this quarter, VISTA reported record low lifting costs. Can you explain a little bit further what were the efficiency measures that have been supporting results besides all the cost dilutions with the production growth? And again, you're very well positioned for the guidance in 2026. but what can we expect as trend for the coming quarters? Thank you.

Hi, Milene, and thanks for your question, and thanks for being back to operations. So, during Q4, we captured some savings related to wealth services. As in previous quarter, we continue to capture savings as we increase production, which dilute fixed costs, and we have seen that effect for many years since we ran the operation in VISTA. This led to a lifting cost of [$4.1] that you pointed out during the quarter. In my view, that number, based on what I said before, is an exceptional number. For 2026, our plan shows a lifting cost that will continue with the trend of basically reducing.

We guide 2026 for a lifting cost of [$4.4]. That is 2% below 2026. In Q1, we see lifting costs that probably we expect that lifting costs will probably go sequentially upward, which is typically what happened at the start of the year, with some costs moving from Q4 last year to Q1 this year. And also, usually in the first quarter, we have some one-off maintenance projects that are allocated to lifting costs. But what you should expect is the [$4.4] that we have guide, that is 2% below 2026. Perfect. Thank you.

Bruno Amorim, Goldman Sachs.

Thank you. Good morning, everybody. So my question is a follow-up on the 2026 guidance. which you have reconfirmed. Can you provide us with your expectations for the evolution during the year for production, EBITDA, and free cash flow, please? Thank you so much.

Good question. Hope you're doing well. So the 2026 plan includes the pickup in DNC activity with 80 to 90 times during the year. We plan 20 to 22 welding tie-in during the Q1, of which 10 were put on production in January, with very good productivity reading so far. This will lead to production rate of 132,000 barrels of oil per day in February. We are all placed for March, and we estimated a very good precast, surprising the 140,000 barrels of oil per day. for March. So we believe in all Q1 will be flattish or slightly below Q4, but with a very good momentum entering Q2. In Q2, we expect a substantial sequential growth, then relatively flat also against in Q3, and another very nice and good step in Q4.

We will reiterate our guidance of 140,000 barrels per day for 2026. And of course, this does not include the Keynote acquisition that will come into place later on when it's closed. In terms of EBITDA, we have reiterated our guidance of $1.9 billion of adjusted EBITDA for 2026. And as a reminder, this also excludes the effect of a Keynote transaction. Q1, you should expect that will be flattish of maybe slightly lower than Q4 on adjusted EBITDA, then should increase that steadily in the coming quarter, and we expect to reach an annualized run rate of around $2 billion in Q4, assuming, of course, a brand of 65. In terms of free cash flow, free cash flow turned positive in line with the strategic plan of 2026.

This new phase of the company combines, as we mentioned in Investor Day, growth and free cash flow generation. In 2026, total free cash flow will be around $150 million to $200 million, a $65 brand. Always, I mean, we should expect that free cash flow could be affected by working capital variation, tax payment, income negative impact, and sunk water. but also you should expect a negative flow in Q1, turn it into positive in Q2 and onward. So that gives you maybe a quarterly picture of what we think will happen in 2026. Thank you. You're welcome.

Daniel Guardiola, BTG Pactuag.

Hi, good morning, Miguel and team. And thank you for the presentation. My question is on the acquisition of the assets of Equinor and Argentina. And I wanted to know, Miguel, if you could provide us more color on the tight curves and productivity you're seeing in Bandurria Sur and Bajo el Toro. And also, during the presentation, you mentioned that there is material upside potential in Bajo el Toro. So it would be great to hear if you could share with us What is the potential growth opportunity that you're seeing in both assets?

OK. Yeah. Thank you, Daniel, for the question. Maybe starting with the first part, well-type curve, I think, for Bandur-Riazor, very similar to the one that we have present of our asset. It's a neighbor asset. We evaluated that we don't expect anything different. . You should wait for us, because it's probably too early to comment on that. Then, related to the second part of your question, based on the information that we have and the analysis that we have done so far, and this is a very preliminary view, our stake of this assets is currently 22,000 per day. And we think we can double that by 2030 driven by the growth in Bajada del Toro once we move Bajada del Toro to full development plan. So we will probably see a couple of years with a small growth and frequent flow generation followed by the growth of Bajada del Toro.

As our working capital interest in Madurria Sur We produce approximately 19,000 barrels of oil per day in Q4, an increase to 20,000 in January. Based on the inventory side, 106 wells are allocated to our working interest. And the field can continue producing at the current rate until probably 2030. So also in Bandur-Yazur, we see some growth potential Embajador del Toro today, they are producing around 2,000 barrels per day, and that is pretty much the same that we saw in January at our working interest. So this block for us presents significant upside based on the inventory, and we're still analyzing the scenario to go to full development, but that will happen during the next three years. And based on the questions that we have before, also we will have to think about infrastructure, evacuation infrastructure there. Thank you.

Kevin McCurdy, Pickering Energy Partners.

Hello and good morning. We've noticed a meaningful progress in the country backdrop along with increased attention on Argentina and the basin overall. Is VISTA seeing an expansion in oil-filled service vendors or equipment entering the country? And if so, would you expect this to translate into further improvement in drilling and completion costs?

Hi, Kevin. Thank you. Very good question. Yes, the short answer is yes. We are seeing a lot of interest from service companies to come down to Argentina based on the increase of activities, as you mentioned also, based on the normalization of the macro and the ability to have more cross-border freedom in terms of repatriating dividends and proceeds. And I will say that is interesting.

Now, one thing that we are seeing is most of the companies that are today in the country are adding capacity. And also, that is helping today, as you saw in the presentation, on the reduction of the DNC costs. Also, we continue evolving in terms of of innovation, and practices are changing. We are a clear example of that, where you can see, for example, on the completion side, a lot of integration between SAN, delivering the SAN, the logistic, work-SAN project, and now probably demanding the completion services to have better numbers and better rates on services. There are many we have seen or we have inquired of many service companies that are today working in the Permian, looking at what they can do in Argentina. Thank you, Miguel. Thank you, Miguel.

I look forward to seeing you at our BA conference in a few weeks.

Super. Looking forward, Nicolas, Kevin.

Nicolas Barros, Bank of America.

Hello. Good morning. Just one question here. So we saw that your trading arm started operations this quarter, right? So just interested to see if you could provide more color on Vaisa, right, and your expectations on how it can help you to unlock more value in the company. Thank you.

Thank you, Nicolas. Yes, that was a great initiative. I visited a few weeks ago. The creation of BESA is part of our export-oriented strategy. Oil exports have increased significantly in the past years. In 2025, we export 22 million barrels of oil. That is an increase of $110,000 vis-a-vis 2024. That generates $1.4 billion of export revenues. So, and according when you look at our plans, we plan to double that in 2028.

So VESA is a fully-owned subsidiary. The rationale behind moving into the trading business is to improve our market reach. Higher volume means that we need to develop more clients in different markets, and we believe that selling cargoes on delivery basis will allow us to be more competitive.

So it's very primarily married to common and margin. We believe it will not be very material to the results of the entire company. So having our own trading units adds flexibility to our short-term hedging program, allowing us to hedge all sales on a short-term basis and basically to manage the cash flow on a quarterly basis. So we are not planning today to make any hedge on long-term, but short-term, we believe we will have a benefit having VESA.

George Gastel, Latin Securities.

Good morning, Miguel, and thank you for taking my question. You mentioned earlier free cash flow expectations at around $150 million to $200 million this year. Price has started to get a little bit above your Investor Day assumption of $65 Brent, and I was wondering how you're thinking about capital deployment and the capital deployment framework you also mentioned in the current price context.

Thank you for your question. So, I mean, we said that we are very happy brand prices on Q1 this year. It was not expected, and I think it's, we believe, is mainly based on the volatility that we see in the market related to geopolitical issues. I think it's very early to change our plan for the entire year. So, of course, we will watch what happens with oil price. but I don't think that it will affect any short-term decision. Regarding long-term, it's related to the question that Bruno said. I mean, we have our capital allocation framework and anything that we can do in reducing debt and buybacks, dividends of M&A acquisition, cash in hand will be helpful to be more aggressive or less aggressive depending how we build up and that cash in the year to come.

Very good. Thank you.

Joao Barrichello, UBS.

Hi, Miguel and team. Thanks for taking my questions. I have only a very quick one from my side. So regarding the acquisition of , the company stated that the transaction will be financed by a combination of both cash and bank finance. So could you provide an update on this financing plan? What are the expectations for the breakdown of cash and banking finance funds? That's it from my side. Thanks.

Thank you, Joao, for your question. Yes, I mean, the initial $387 million cash payment will be fund 100% with debt, and we plan to keep the cash balance stable at VISTA. Pablo and Ale have agreed with the three top-tier banks a bridge loan of $300 million of acquisition financing, which should be used and will be used and should be enough to cover our initial cash payment. Again, I mean, we'll do something with that later on, but it will not affect our balance sheet today and our plan in CapEx that we have for the year.

Orianna Cavalt, Balance.

Hi, thanks for taking my questions and congratulations on the salary results for the quarter. I'm just perhaps going directly into potential shareholder returns in the more constructive pricing scenario. What are the alternatives you have in place for 2036? And mainly, do you have any thoughts to renew and or expand the program this year? Thank you.

Hi, Oriana. Oriana, thank you for your question. So in August, we execute the $50 million buyback plan that was approved by the shareholders meeting in April last year. We purchased 1.2 million shares at $41.2 per share. So we are considering the current share price. Considering the current share price, we are super happy with the outcome of that buyback plan. We plan to request an extension of the program in the upcoming shareholder meeting that is coming now in April, and we believe it will be larger in size than the one that we plan for 2025.

Perfect. Thank you very much.

Francisco Cascaron, DON Capital.

Hi. Thank you for taking my question. Given that you announced a CapEx of $1.5 billion to $1.6 billion annually between 2036 and 2038, What is your maintenance CapEx expectation in the foreseeable future?

Hi, Francisco. Thanks for your 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. And assuming that by the end of the year, we will be around 150,000 barrels per day, This, of course, is including Ekinor asset. We will need around 60 wells to keep production flat. So that will equate of around $850 million CapEx to keep production flat. So you should take more or less those numbers. Thank you.

Matias Cattaruzzi, ADCAP Securities.

Thank you, Miguel and Alejandro. Good morning. How could you characterize VISTA's relationship with YPF today after the Marga Chica's acquisition and now the Equinor deal where YPF is also an operator?

Hi, Matias, and thanks for your question. The short answer is the relationship with YPF is great. We have very high hope after the acquisition of Petronas assets on how the relationship will be put in place and will evolve. And to be honest with you, it turned out even better than we expect. It's working very well at all levels. I would say that at the top, the strategies are aligned. Both companies want to continue, and that makes the relationship very easy because we have the same target.

The technical teams are working side by side, and that, for me, is the more important part. We see them sharing geological information, collaborating in meetings, but more importantly, there have been synergies that have been captured. sharing all treatment capacity that have led to safe of CapEx, sharing well services, enabling both companies to optimize headcount, discussing artificial lease strategies that will help to improve the long-term productivity of the well and reduce lifting costs. So, all in all, I wish that a great relationship and that, of course, that was the fact that give us confidence also to execute the KINOR deal. That was something that we took in consideration at the time that we made the decision.

Okay, great. Thanks so much. Thank you. I'm not showing any further questions at this time. I want Alex to turn it back over to Miguel for any closing remarks.

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

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