Breaking Down Vista Energy, S.A.B. de C.V. (VIST) Financial Health: Key Insights for Investors

Are you keeping a close watch on the energy sector and looking for a company with robust financial performance? Have you considered how key metrics like revenue growth, production increases, and strategic investments could influence your investment decisions? In 2024, Vista Energy, S.A.B. de C.V. (VIST) demonstrated impressive financial results, with revenues reaching $1.65 billion, a 40.98% increase from the previous year, and earnings of $477.52 million, marking a 20.30% rise. With a gross profit margin of 76.7% and a P/E ratio of 9.5, alongside a significant boost in total production to 85,276 boe/d in Q4 2024, up 51% year-over-year, let's delve deeper into the financial health of VIST and uncover the insights that matter most to investors.

Vista Energy, S.A.B. de C.V. (VIST) Revenue Analysis

Breakdown of Primary Revenue Sources:

Vista Energy generates revenue primarily through the exploration, development, and production of crude oil and natural gas, with a significant focus on unconventional resources in Argentina's Vaca Muerta shale formation. The company sells these extracted commodities to refineries and other customers at prevailing market prices.

• Crude Oil Sales: Approximately 85%-90% of total revenue.
• Natural Gas & NGL Sales: Approximately 10%-15% of total revenue.

Year-over-Year Revenue Growth Rate:

Vista Energy has demonstrated robust financial performance with significant year-over-year revenue growth. In 2024, the company's revenue reached $1.65 billion, representing a 40.98% increase compared to the previous year.

As of Vista Energy Sab De CV's earnings date in Feb 18, 2025, Vista Energy Sab De CV's earnings has grown 17.51% year over year. The latest VIST earnings report on Dec 31, 2024 announced Q4 2024 earnings of $93.8M, down 43.3% from last quarter. For the last reported fiscal year 2024 ending Dec 31, 2024, VIST reported annual earnings of $477.5M, with 20.3% growth.

Contribution of Different Business Segments to Overall Revenue:

The company operates primarily in Argentina, with a smaller revenue contribution from Mexico. For the year 2024, approximately 99% of its revenues were generated from assets located in Argentina and 1% from Mexico.

Analysis of Any Significant Changes in Revenue Streams:

Vista Energy's revenue is significantly influenced by hydrocarbon price fluctuations. In 2023, the company's revenue was directly correlated with crude oil prices, which experienced volatility ranging from $70 to $95 per barrel, leading to approximately ±15% revenue variation.

Total revenues during 2024 were 1,647.8 $MM, a 41% increase compared to 1,168.8 $MM during 2023, mainly driven by oil production growth. Net oil revenues from sales at export parity prices, combining both international and domestic markets, were 1,058.0 $MM, or 70% of total net oil revenues. Net revenues from oil and gas exports were 767.9 $MM in 2024, a 25% increase y-o-y and representing 48% of total net revenues.

Vista Energy, S.A.B. de C.V. (VIST) Profitability Metrics

Analyzing Vista Energy, S.A.B. de C.V. (VIST)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These include gross profit margin, operating profit margin, and net profit margin. Additionally, trends in these ratios over time and comparisons with industry averages help to contextualize Vista Energy's performance.

Gross Profit Margin

In 2024, Vista Energy reported a gross profit of $817.743 million Mission Statement, Vision, & Core Values of Vista Energy, S.A.B. de C.V. (VIST).. According to Investing.com, Vista Energy has demonstrated robust financial performance, with InvestingPro data showing an impressive gross profit margin of 76.7%. GuruFocus data shows Vista Energy SAB de CV gross profit at US$84 million in 2024.

Operating Profit Margin

Vista Energy's operating profit for 2024 was $625.390 million. The operating profit margin, which indicates how much profit a company makes from its operations before interest and taxes, stood at 49.29% as of December 31, 2024.

Net Profit Margin

For the year 2024, Vista Energy's net income totaled $477.5 million, resulting in a net profit margin of 29%. This compares favorably to previous years, with a 20.3% increase year over year. The business's earnings have increased by 17.51% year over year as of its earnings date in February 18, 2025. This is 26.06 percentage points higher than the US Oil & Gas E&P industry earnings growth rate of -8.55%.

Trends in Profitability Over Time

Vista Energy has demonstrated significant growth in both revenue and earnings over the past few years. In 2024, the company's revenue was $1.65 billion, a 40.98% increase compared to the previous year's $1.17 billion. Earnings were $477.52 million, an increase of 20.30%. The company's share price increased 83% from year-end 2023 to year-end 2024.

Comparison with Industry Averages

The oil and gas exploration and production industry is characterized by fluctuating commodity prices and varying operational efficiencies. Vista Energy's strong gross profit margin of 76.7% suggests effective cost management compared to industry peers. Furthermore, Vista Energy's return on equity of 32.7% surpasses the industry average of 14.2%, demonstrating efficient use of shareholder equity to generate profits.

Analysis of Operational Efficiency

Vista Energy's operational efficiency is reflected in its lifting costs, which decreased from $5.1/boe in 2023 to $4.6/boe in 2024. This reduction indicates the company's focus on efficiency and its low-cost asset base. Further, Vista Energy maintained a solid balance sheet, with a cash position at the end of the quarter of $764.3 million.

Key strategies employed by Vista Energy to maintain and improve operational efficiency include:

• Optimizing well spacing and completion designs to maximize recovery rates.
• Managing logistics and securing access to midstream infrastructure.
• Maintaining rigorous cost control measures.

In summary, Vista Energy's profitability metrics for 2024 indicate a strong financial performance driven by increased production, efficient cost management, and strategic operational initiatives. The company's ability to maintain healthy margins and increase revenue positions it favorably within the oil and gas exploration and production industry.

Vista Energy, S.A.B. de C.V. (VIST) Debt vs. Equity Structure

Understanding how Vista Energy, S.A.B. de C.V. (VIST) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities. Let's delve into these key aspects.

As of fiscal year 2024, Vista Energy, S.A.B. de C.V. maintains a mix of short-term and long-term debt to finance its operations and expansion. While specific figures for 2024 are not available, analyzing previous trends can provide insights. For instance, as of December 31, 2023, the company's total financial debt stood at $739.7 million, comprising $123.4 million in short-term debt and $616.3 million in long-term debt. Examining these figures helps understand the company's obligations and their maturity profile.

The debt-to-equity ratio is a vital metric to assess a company's financial leverage. While the exact debt-to-equity ratio for Vista Energy, S.A.B. de C.V. in 2024 isn't specified, comparing its debt levels to its equity provides context. As of December 31, 2023, the company’s total equity was $1,041.9 million. Analyzing this ratio in comparison to industry standards can indicate whether the company's leverage is within a reasonable range or if it's taking on excessive risk. The company aims to maintain a net debt-to-EBITDA ratio below 1.0x, reflecting a conservative approach to financial leverage.

Vista Energy, S.A.B. de C.V. actively manages its debt through issuances and refinancing activities. Recent activities include:

• Issuance of $500 million in aggregate principal amount of 6.375% Senior Notes due 2027.
• Issuance of $300 million aggregate principal amount of 5.875% Senior Notes due 2029.

These activities demonstrate the company's ability to access capital markets and manage its debt profile. Additionally, the company has been assigned a corporate credit rating of 'B+' by S&P and 'BB-' by Fitch, indicating its creditworthiness and ability to meet its financial obligations.

Vista Energy, S.A.B. de C.V. strategically balances debt and equity to fund its growth initiatives. The company's capital allocation priorities include:

• Investing in high-return projects to grow production and reserves.
• Returning cash to shareholders through dividends and share repurchases.
• Maintaining a strong balance sheet and financial flexibility.

This balanced approach allows the company to pursue growth opportunities while managing its financial risk. The company's financial strategy is designed to support its long-term goals and create value for shareholders.

For more detailed insights, you can refer to Breaking Down Vista Energy, S.A.B. de C.V. (VIST) Financial Health: Key Insights for Investors.

Vista Energy, S.A.B. de C.V. (VIST) Liquidity and Solvency

Analyzing Vista Energy, S.A.B. de C.V. (VIST)'s financial health requires a close look at its liquidity and solvency metrics. These indicators reveal the company's ability to meet its short-term obligations and long-term financial stability. Let's examine the key components that provide insights into VIST's financial positioning.

Assessing Vista Energy, S.A.B. de C.V. (VIST)'s Liquidity:

Liquidity ratios offer a snapshot of a company's capacity to cover its immediate liabilities. Two critical ratios in this assessment are the current ratio and the quick ratio.

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets. A current ratio of greater than 1 indicates that a company has more current assets than current liabilities.
• Quick Ratio: Also known as the acid-test ratio, this is a stringent measure of liquidity that excludes inventories from current assets. This provides a more conservative view of the company's ability to meet its short-term liabilities.

Analysis of Working Capital Trends:

Working capital, calculated as current assets minus current liabilities, is a fundamental measure of a company's operational liquidity. Monitoring the trends in working capital helps to understand whether the company's short-term financial health is improving or deteriorating. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities.

Cash Flow Statements Overview:

The cash flow statement provides critical insights into the movement of cash both into and out of a company. It is typically divided into three main sections:

• Operating Activities: This section reflects the cash generated from the company's core business operations. Positive cash flow from operations is a healthy sign, indicating that the company's primary activities are generating sufficient cash.
• Investing Activities: This includes cash flow related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E). These activities can provide insight into the company's capital expenditures and investment strategies.
• Financing Activities: This section involves cash flow related to debt, equity, and dividends. It shows how the company is funding its operations and returning value to shareholders.

A comprehensive analysis of these cash flow trends can reveal whether Vista Energy, S.A.B. de C.V. (VIST) is effectively managing its cash and investing in its future growth.

Potential Liquidity Concerns or Strengths:

Based on the analysis of the current and quick ratios, working capital trends, and cash flow statements, one can identify potential liquidity concerns or strengths. For instance, a declining current ratio coupled with negative cash flow from operations might signal liquidity issues. Conversely, a strong current ratio, increasing working capital, and positive cash flow from operations would indicate a solid liquidity position.

For additional insights into Vista Energy, S.A.B. de C.V. (VIST) and its investors, consider reading: Exploring Vista Energy, S.A.B. de C.V. (VIST) Investor Profile: Who’s Buying and Why?

Vista Energy, S.A.B. de C.V. (VIST) Valuation Analysis

Assessing whether Vista Energy, S.A.B. de C.V. (VIST) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and expert opinions. Here’s a detailed breakdown:

Key Financial Ratios:

• Price-to-Earnings (P/E) Ratio: This ratio indicates how much investors are willing to pay for each dollar of Vista Energy, S.A.B. de C.V. (VIST)’s earnings. A higher P/E ratio might suggest overvaluation if it's significantly above industry averages, whereas a lower P/E could indicate undervaluation.
• Price-to-Book (P/B) Ratio: The P/B ratio compares Vista Energy, S.A.B. de C.V. (VIST)’s market capitalization to its book value of equity. A P/B ratio less than 1.0 could suggest that the stock is undervalued, while a higher ratio might indicate overvaluation.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: This ratio is used to assess the overall value of Vista Energy, S.A.B. de C.V. (VIST) compared to its earnings before interest, taxes, depreciation, and amortization (EBITDA). Lower EV/EBITDA multiples typically suggest that a company is undervalued.

Stock Price Trends:

Analyzing Vista Energy, S.A.B. de C.V. (VIST)’s stock price trends over the past 12 months, or longer, provides insights into market sentiment and investor confidence. A consistent upward trend may indicate strong market approval, while a downward trend could signal concerns about the company’s performance or industry outlook. Significant volatility might also influence valuation perceptions.

Dividend Yield and Payout Ratios:

For investors seeking income, dividend yield and payout ratios are crucial. The dividend yield indicates the annual dividend income relative to the stock price. The payout ratio shows the proportion of earnings paid out as dividends. A sustainable and attractive dividend yield can positively influence valuation, while a high payout ratio might raise concerns about the company’s ability to reinvest in growth.

Analyst Consensus:

Keep a pulse on analyst ratings. Check whether analysts are advocating a 'buy', 'hold', or 'sell' on Vista Energy, S.A.B. de C.V. (VIST)’s stock. These ratings often consider comprehensive financial analysis, industry trends, and macroeconomic factors. Consensus estimates can provide a summarized view of expert opinions on valuation.

For example, consider this hypothetical analyst consensus:

In this scenario, the average price target is $22.75.

Additional insights can be found here: Breaking Down Vista Energy, S.A.B. de C.V. (VIST) Financial Health: Key Insights for Investors

Vista Energy, S.A.B. de C.V. (VIST) Risk Factors

Vista Energy, S.A.B. de C.V. (VIST), like all companies, faces a variety of risks that could impact its financial health. These risks can be broadly categorized as internal and external, encompassing industry competition, regulatory changes, market conditions, and company-specific operational, financial, and strategic factors. Understanding these risks is crucial for investors assessing the company's long-term viability and potential returns. Here's a breakdown of key risk areas:

External Risks:

• Hydrocarbon Price Fluctuations: Vista Energy's financial performance is significantly impacted by the volatility of crude oil and natural gas prices. In 2023, the company's revenue directly correlated with crude oil prices, which experienced volatility ranging from $70 to $95 per barrel, leading to revenue variations of approximately ±15%.
• Political and Economic Volatility in Argentina: Vista operates primarily in Argentina, a country known for its political and economic instability. Any shift towards protectionism or heavy government intervention could pose risks. The company's success depends on Argentina's openness to foreign investments and its willingness to allow companies like Vista to export their production. In 2023, Argentina's political risk index stood at 58.6, indicating moderate to high investment uncertainty, with a political risk premium of 3.5-4.2% and potential investment capital repatriation restrictions of 15-20%.
• Increasing Competition: The energy sector in Argentina is competitive, with the top 5 competitors holding a combined market share of 62.3%. Key competitors include:
  • YPF S.A. (24.7% market share)
  • Pan American Energy (15.6% market share)
• Market Risks: Vista Energy's activities are exposed to market risk, including exchange rate risk, interest rate risk, and price risk.

Internal Risks:

• Operational Risks: These include potential disruptions to production, transportation, and distribution of oil and gas.
• Financial Risks: These involve managing debt, ensuring sufficient liquidity, and mitigating the impact of currency fluctuations.
• Strategic Risks: These relate to the company's ability to execute its business plan, adapt to changing market conditions, and maintain a competitive edge.

Specific Risks Highlighted in Filings:

Vista Energy's annual reports and filings with the SEC contain detailed discussions of risk factors that could affect the company's future results. These risks include, but are not limited to:

• Volatility in the energy industry.
• Market conditions affecting the Latin American economy.
• Volatility in the market price and trading volume of securities of companies in the energy sector.
• Additions to or departures from the Management Team.
• Failure to complete additional acquisitions or execute additional concession agreements.
• Speculation in the press or investment community.
• Changes in the credit ratings or outlook assigned to Latin American countries.
• Political conditions or events in Argentina, Mexico, the United States, and other countries.
• Enactment of legislation or other regulatory developments that adversely affect the company or its industry.

Financial Risk Management:

Vista Energy has implemented a comprehensive risk management policy to monitor and mitigate financial risks. This policy aims to strike a balance between profitability targets and risk exposure. The company's risk management objectives and policies concerning financial instruments are detailed in its financial statements.

Mitigation Strategies:

While specific mitigation strategies are not always detailed, Vista Energy has demonstrated resilience by adjusting its strategies and adapting to market demands quickly. The company's management has also demonstrated a commitment to maximizing capital efficiency by focusing on high-margin projects and conservative spending.

Financial Overview & Ratios:

For the fiscal year 2024, Vista Energy's financial highlights include:

• Revenue estimated between $1.3 - $1.4 billion.
• Adjusted EBITDA surpassing $900 million.
• Total assets amounting to $4.23 billion.
• Total non-current liabilities standing at $1.55 billion.
• Pretax profit margin at 17.3%.
• Price-to-sales ratio of 2.33 and a PE ratio of 8.72.

Key financial ratios also indicate potential undervaluation with a forward P/E ratio of 7.2 and price-to-earnings growth (PEG) ratio of 0.85.

Recent Developments:

Recent market developments indicate a positive outlook for Vista Energy, with Pickering Energy initiating coverage with an 'Outperform' rating. The stock price has witnessed a dramatic surge, climbing up 12% to reach $42.72. Vista Energy has also acquired Petronas E&P Argentina, holding 50% in La Amarga Chica, in a deal involving approximately $1.2B in cash and stock.

Despite these positive developments, investors should carefully consider the risk factors discussed above before making investment decisions. The company's annual report, available on the Mexican Stock Exchange and the Mexican National Banking and Securities Commission websites, as well as Vista's own site, provides a comprehensive overview of these risks.

See more about Vista Energy, S.A.B. de C.V. (VIST) Financial Health: Breaking Down Vista Energy, S.A.B. de C.V. (VIST) Financial Health: Key Insights for Investors

Vista Energy, S.A.B. de C.V. (VIST) Growth Opportunities

For Vista Energy, S.A.B. de C.V. (VIST), several factors underpin its potential for future expansion. These encompass innovative approaches, market penetration, strategic alliances, and advantageous positioning within the energy sector.

Key growth drivers for Vista Energy, S.A.B. de C.V. (VIST) include:

• Product Innovations: Focus on developing and implementing advanced technologies for oil and gas extraction, enhancing efficiency and reducing environmental impact.
• Market Expansions: Extending operations into new geographical areas within Latin America, capitalizing on the increasing energy demand.
• Acquisitions: Pursuing strategic acquisitions to increase reserves, production capacity, and market share.

Looking ahead, revenue growth projections and earnings estimates for Vista Energy, S.A.B. de C.V. (VIST) are influenced by several key factors. These include the global energy demand, oil and gas prices, and the company's ability to efficiently manage its operations and capital expenditures. Analysts' estimates, as reflected in recent reports, provide a range of potential outcomes, but it's important to note that these are subject to change based on market conditions and company performance.

Strategic initiatives and partnerships expected to drive future growth:

• Joint Ventures: Collaborating with other energy companies to share expertise, reduce risks, and enhance project development.
• Infrastructure Investments: Investing in pipelines and processing facilities to improve transportation efficiency and reduce operational costs.
• Renewable Energy Projects: Diversifying into renewable energy sources to meet evolving market demands and sustainability goals.

Vista Energy, S.A.B. de C.V. (VIST) possesses several competitive advantages that could bolster its growth prospects:

• Strong Asset Base: Owning substantial oil and gas reserves in prolific basins, providing a solid foundation for production growth.
• Operational Expertise: Demonstrating a track record of efficient operations, cost management, and project execution.
• Strategic Location: Operating in regions with favorable regulatory environments and access to key markets.

Here is a summary of key financial data for Vista Energy, S.A.B. de C.V. (VIST) based on the 2024 fiscal year:

For more insights into the company's guiding principles, explore the Mission Statement, Vision, & Core Values of Vista Energy, S.A.B. de C.V. (VIST).