Vista Energy's Shares Decline 1.4% on Q4 Earnings Miss

Vista Energy S.A.B. de CV’s VIST shares lost 1.4% on Feb. 26 after reporting weak fourth-quarter 2024 earnings, closing at $50.78 in the latest trading session.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

VIST’s Q4 Earnings & Revenues

The upstream energy player reported adjusted earnings per share of 23 cents, which missed the Zacks Consensus Estimate of 90 cents. The bottom line also decreased from the prior-year quarter’s level of $2.52.

The leading independent oil and gas producer’s quarterly revenues of $471.3 million increased from $309 million in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $472 million.

The weak quarterly earnings can be primarily attributed to higher lifting expenses. This was partially offset by increased production.

Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR Price, Consensus and EPS Surprise

Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR price-consensus-eps-surprise-chart | Vista Oil & Gas, S.A.B. de C.V. Sponsored ADR Quote

Q4 Production of VIST

Total production averaged 85,276 barrels of oil equivalent per day (Boe/d), up from the year-ago quarter’s 56,353 Boe/d. Of the total output, 86.2% was crude oil. Overall production was higher than the year-ago period’s level due to increased well activities.

Crude oil production increased to 73,491 barrels per day (Bbls/d) from the year-ago quarter’s 48,469 Bbls/d. Natural gas liquids production increased 6%, while natural gas output rose 52%.

VIST’s Realized Prices

The average realized crude oil price was $67.1 per barrel, down from the year-ago figure of $67.8.

The average realized natural gas price was $2.3 per million Btu, up from $2.2 reported in the year-ago quarter. Realized natural gas liquids price increased to $360 per metric ton from $271.

Lifting Expenses of VIST

Lifting costs in the December quarter of 2024 totaled $36.6 million, up 64% year over year from $22.3 million. Lifting costs per barrel of oil equivalent were $4.7, reflecting an increase of 8% from $4.3 in the prior-year quarter.

VIST’s Balance Sheet & Capital Spending

As of Dec. 31, 2024, Vista Energy had $764.3 million in cash, bank balances and other short-term investments. The company had a total long-term debt of $1,402.3 million and a short-term debt of $46.2 million as of the same date.

Capital expenditure totaled $340.1 million. Net cash provided by operating activities was $369.5 million.

Guidance

Vista aims to reach an annual target of 95-100 MBoE/d for 2025, which would imply growth of 35-40% over 2024. The company indicated that production in the first quarter of 2025 will likely be flat or slightly lower due to logistical challenges and delays in well connections.

Vista Energy plans to invest between $1.1 billion and $1.3 billion in 2025, focusing on developing the Vaca Muerta shale formation in Argentina.

Zacks Rank and Key Picks

Currently, VIST carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources presently sports a Zacks Rank #1 (Strong Buy), NextDecade and EOG Resources carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.

This article originally published on Zacks Investment Research (zacks.com).

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