2021

Full Year and

4th Quarter Results

Mexico City, February 22, 2022

NYSE: VIST

BMV: VISTA

Vista full year 2021 results and fourth quarter 2021 results

February 22, 2022, Mexico City, Mexico

Vista Oil & Gas, S.A.B. de C.V. ("Vista" or the "Company") (NYSE: VIST in the New York Stock Exchange; BMV: VISTA in the Mexican Stock Exchange), reported today financial and operational results for full year 2021 and Q4 2021.

Full year 2021 highlights:

  • During 2021, the Company completed and tied-in five 4-well pads (#6 to #10) in Bajada del Palo Oeste. This added 20 new wells on production, in line with guidance, increasing the total number of wells on production in the block to 40 at year-end. Total shale production in 2021 was 23,353 boe/d, out of which 23,225 boe/d corresponds to the shale production of Bajada del Palo Oeste, which reached 28.1 Mboe/d on December 31, 2021.
  • Total proved reserves as of December 31, 2021, totaled 181.6 MMboe, a 42% increase compared to 128.1 MMboe as of December 31, 2020. The increase was mainly driven by strong performance in Bajada del Palo Oeste. The implied reserves replacement ratio was 477%, while the oil reserves replacement ratio was 519%.
  • During 2021, total production was 38,845 boe/d, composed of 30,359 bbl/d of oil, representing 78% of the total production, 1.27 MMm3/d of natural gas, representing 21% of the total production, and 475 boe/d of NGL, representing the remaining 1%. Total production in 2021 increased 46% vis-à-vis 2020.
  • During 2021, the Company reduced scope 1 and 2 GHG emissions by 14%, implying a reduction in intensity of 39% to 24.1 kgCO2/boe. Vista also established its ambition to become net zero in 2026.
  • During 2021, the average realized crude oil price was 54.9 $/bbl, a 48% increase compared to 2020. The average realized natural gas price for 2021 was 3.2 $/MMbtu, 56% higher than 2020.
  • Total revenues during 2021 were 652.2 $MM, a 138% increase compared to 273.9 $MM during 2020. The increase was mainly driven by higher realized prices and higher production. In the same period, we exported 3,054.4 Mbbl of oil, representing 182.2 $MM.
  • Lifting cost (1) in 2021 was 7.4 $/boe, representing a 18% decrease compared to the average lifting cost per boe in 2020, as the incremental production from Bajada del Palo Oeste, with low marginal cost, continues to dilute the fixed cost base of the Company.
  • Adjusted EBITDA for 2021 was 380.1 $MM, resulting in an Adjusted EBITDA margin of 58%. Such figure represents a 298% increase compared to an Adjusted EBITDA of 95.6 $MM during 2020, driven by higher revenues and lower lifting cost per boe.

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  • Total CAPEX for 2021 was 324.1 $MM, of which approximately 220.0 $MM were invested in the Company's shale oil developments, 26.9 $MM in conventional blocks and 77.0 $MM in facilities and other projects.
  • In 2021, the Company recorded a positive free cash flow of 105.9 $MM. Cash flow generated by operating activities was 401.4 $MM, while cash flow used in investing activities reached 295.5 $MM for the year. Cash flow generated by financing activities totaled 6.1 $MM, mainly driven by proceeds from borrowings of 358.1 $MM, payments of capital of 284.7 $MM and interest payments of 54.6 $MM.
  • Cash at the end of 2021 was 315.0 $MM. Gross debt totaled 611.0 $MM as of year-end, resulting in a net debt of 296.0 $MM and a net leverage ratio of 0.8x Adj. EBTIDA.
  • Adjusted Net Income during 2021 totaled 78.5 $MM, compared to a loss of 115.1 $MM during 2020, mainly driven by a higher Adjusted EBITDA and partially offset by higher income tax expense, and higher depreciation, depletion and amortization. Adjusted EPS was 0.89 $/share in 2021, compared to (1.32) $/share in 2020.

Q4 2021 highlights:

  • Q4 2021 total production was 41,064 boe/d, a 34% increase compared to Q4 2020, mainly driven by production growth in Bajada del Palo Oeste. Oil production in Q4 2021 increased 41% y-o-y to 32,436 bbl/d.
  • In Q4 2021, shale wells contributed production of 25,699 boe/d, of which 98% corresponds to shale oil wells in Bajada del Palo Oeste, where the Company tied-in 20 new wells in 5 pads during the year.
  • Revenues in Q4 2021 were 196.0 $MM, 146% above the 79.5 $MM generated in Q4 2020, driven by an increase in production and realized prices. In Q4 2021, 33% of oil sales volumes were exported (995.6 Mbbl of oil and 70.5 $MM in revenues).
  • In Q4 2021, the average realized crude oil price was 60.6 $/bbl, a 6% increase compared to the average realized crude oil price of Q3 2021 and a 51% increase compared to Q4 2020.
  • Realized natural gas price for Q4 2021 was 2.7 $/MMBTU, resulting in a 70% increase y-o-y driven by Plan Gas summer prices of 2.7 $/boe, applicable to approximately 70% of total natural gas volumes, and an increase in industrial prices from 1.2 to 2.7 $/MMBTU.
  • Lifting cost (1) in Q4 2021 was 7.5 $/boe, representing a 7% decrease compared to the average lifting cost per boe of Q4 2020, as incremental production from Bajada del Palo Oeste with low marginal cost continues to dilute the fixed cost base of the Company.

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    • Adjusted EBITDA for Q4 2021 was 116.5 $MM, a sequential increase of 13% and a 224% increase compared to Q4 2020, driven by the increase in revenues amid flat lifting costs. Adjusted EBITDA margin was 59%, 14p.p. above the Adjusted EBITDA margin of Q4 2020.
    • In Q4 2021, CAPEX was 97.3 $MM, reflecting the completion of the fifth pad for the year in Bajada del Palo Oeste (pad #10). This pad was tied-in in late December, with 54 average completion stages per well and an average lateral length of 2,854 meters per well.
    • In Q4 2021, the Company recorded a positive free cash flow of 62.8 $MM. Cash flow generated by operating activities was 138.8 $MM, while cash flow used in investing activities reached 76.0 $MM for the quarter. Cash flow used in financing activities totaled 13.5 $MM, mainly driven by interest payments of 3.8 $MM and debt repayments of 1.6 $MM.
    • Adjusted Net Income during Q4 2021 totaled 35.4 $MM, compared to a loss of 21.6 $MM during Q4 2020, mainly driven by a higher Adjusted EBITDA and partially offset by current income tax expense. Adjusted EPS was 0.40 $/share in Q4 2021, compared to (0.25) $/share in Q4 2020.
  1. Excludes 50% non-operated interest in Aguada Federal and Bandurria Norte

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Vista FY 2021 and Q4 2021 results

P1 Reserves

Proved ("P1") reserves as of December 31, 2021, were 181.6 MMboe, a 42% increase year-over-year. P1 reserves additions totaled 67.6 MMboe, implying a reserves replacement ratio of 477%. The proved oil and gas reserves in Vista's flagship Bajada del Palo Oeste project were estimated at 155.0 MMboe.

The table below shows the certified P1 reserves breakdown:

Proved reserves breakdown by type (MMboe)

2021

2020

y/y (MMboe)

y/y (%)

Proved developed reserves

64.7

53.3

11.4

21%

Oil

48.5

37.8

10.7

28%

Natural Gas

16.2

15.5

0.7

5%

Proved undeveloped reserves

116.9

74.9

42.0

56%

Oil

98.1

61.7

36.4

59%

Natural Gas

18.8

13.2

5.6

43%

Total proved reserves

181.6

128.1

53.5

42%

Considering a total production of 14.2 MMboe for 2021, the implied P1 reserves life was 12.8 years, as shown below:

Proved reserves reconciliation

Oil (MMbbl) (1)

Natural Gas (MMboe)

Total (MMboe)

Proved reserves YE 2020

99.5

28.6

128.1

(-) Production

(11.3)

(2.9)

(14.2)

(+) Additions

58.4

9.3

67.6

Proved reserves YE 2021

146.6

35.0

181.6

Reserves replacement ratio

519%

317%

477%

Reserves life (years)

13.0

12.0

12.8

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Vista Oil & Gas SA de CV published this content on 22 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 February 2022 21:53:56 UTC.