EM LATAM CREDIT: Vista Energy Argentina (VISTAA; Caa1 /NR /BB-): 1Q Earnings

“Vista Energy 1Q Net Income $82.8M Vs. $78.7M Y/y” – BBG

Neutral for prices

• Mexico based Argentina oil and gas E&P company Vista Energy posted disappointing results that missed both top and bottom line driven by lower production.

• Production was much higher YoY with an increase of 47% for 1Q2025 but sequentially production was 5% lower. Revenues dropped by 7% QoQ while EBITDA expanded marginally.

• Gross debt increased due to higher capital expenditure while cash levels were a bit lower so with flattish EBITDA that led to an increase in net leverage of .84x vs .58x last year.

• Last week the company announced a major acquisition, buying out Malaysia’s Petronas’ interest in the third largest oil field in the Vaca Muerta shale region of Argentina which will increase the company’s scale by 50%. Please see the link below for more information:
https://mni.marketnews.com/42EI6bn

• VISTAA 2035s issued at 7.625% December 2024, last quoted 8.15%, having sold off 18bps April MTD. The bonds are quoted 49bps tighter than YPF (YPFDAR; Caa1 /B- /CCC) 2034s after being about 70 bps tighter back in January when YPF issued the new 9NC4Y 8-year average life bonds.