Vista Energy, S.A.B. de C.V. (Vista) operates as an independent Latin American, shale oil-focused company.
The company’s main assets located in the Neuquina basin, Argentina. Vaca Muerta is the largest shale oil and gas play under development outside North America, where the company has rights to develop approximately 205,600 acres. The company is also the holders of one conventional producing asset in Mexico. Most of the company’s production and revenues, its ongoing drilling and workover acti...
Vista Energy, S.A.B. de C.V. (Vista) operates as an independent Latin American, shale oil-focused company.
The company’s main assets located in the Neuquina basin, Argentina. Vaca Muerta is the largest shale oil and gas play under development outside North America, where the company has rights to develop approximately 205,600 acres. The company is also the holders of one conventional producing asset in Mexico. Most of the company’s production and revenues, its ongoing drilling and workover activities, estimated proved reserves and assets are located in Argentina, including the company’s producing Vaca Muerta wells.
Operations
During 2023, the company’s average daily production was 51,149 boe/d. As of December 31, 2023, the company’s portfolio of assets included six operated blocks in Vaca Muerta, one operated conventional block in Mexico, and one non-operated conventional block in Argentina. Effective as of March 1, 2023, Vista transferred the operatorship of six conventional blocks to Aconcagua.
In Argentina, the company held and operated approximately 206,000 net shale oil acres in the core Vaca Muerta. During the fourth quarter of 2023, the company was the second largest shale oil producer in Argentina. In 2023, the company’s shale production was 43,339 boe/d.
As of December 31, 2023, the company held (i) 100.00% operated interest in the following exploitation concessions: Bajada del Palo Oeste, Bajada del Palo Este, Aguada Federal, Bandurria Norte, and CS-01; (ii) 84.62% operated interest in the exploitation concession Coirón Amargo Norte; (iii) 90% operated interest in the exploitation concession Águila Mora; and (iv) 1.50% non-operating interest in the conventional exploitation concession Acambuco. As a result of the Conventional Assets Transaction, the company transferred the operations of six conventional assets in the Neuquina basin, effective March 1, 2023.
On February 23, 2023, Vista announced a two-phase transaction (the ‘Conventional Assets Transaction’) between Vista Argentina and Petrolera Aconcagua Energía S.A. (‘Aconcagua’) to increase its focus on its shale oil operations in Vaca Muerta and strengthen shareholder returns.
Vaca Muerta has already attracted over 30 oil and gas companies, domestic and IOCs, including Chevron, Shell, ExxonMobil, Total, Equinor, Pan American Energy, Petronas, Pluspetrol, Tecpetrol, Dow, and YPF. Most of these companies, which hold acreage neighboring the company’s concessions, are already investing in their projects in full development mode, or in some cases are executing project pilots.
Vaca Muerta exhibits similar geological properties than several of the most successful shale plays in the United States.
Vaca Muerta is in a relatively early stage of its development compared to shale plays in the United States and Canada.
Main Subsidiaries
Vista Energy Argentina S.A.U.
Vista Energy Argentina S.A.U. (formerly ‘Vista Oil & Gas Argentina S.A.’, and prior thereto ‘Petrolera Entre Lomas S.A.’) is an Argentine company with offices in Buenos Aires and Neuquen. In the Neuquina Basin, Vista Argentina holds a (i)100.00% operated interest in the following blocks: Bajada del Palo Oeste and Bajada del Palo Este unconventional exploitation concessions, located in the Province of Neuquen, (ii) 84.62% operated interest in the exploitation concession Coirón Amargo Norte located in the Province of Neuquen, (iii) 50% operated interest in the Aguada Federal and Bandurria Norte unconventional exploitation concessions, located in the Province of Neuquen, (iv) 90% operated interest in the unconventional exploitation concession Águila Mora located in the Province of Neuquen, and (v) 1.50% non-operating interest in the exploitation concession Acambuco, located in the Province of Salta, operated by Pan American Energy LLC (Argentine Branch). As a result of the Conventional Assets Transaction, the company transferred the operations of six conventional assets in Argentina, effective March 1, 2023.
Vista Energy Holding I, S.A. de C.V.
Vista Energy Holding I, S.A. de C.V. (formerly, ‘Vista Oil & Gas Holding I, S.A. de C.V.’) is a Mexican company with administrative offices in Mexico City incorporated for purposes of, among other things, participating as a partner, shareholder or investor in all kinds of businesses or entities, whether commercial or civil, associations, trusts, or of any other nature, whether Mexican or foreign, from their inception or by acquiring shares, equity interests or other kind of interests, regardless of the name they are given, in all kind of corporations, as well as carrying-out any activities in the energy sector. It holds a 100% interest in Vista Energy Argentina S.A.U. and a 100% indirect interest in AFBN S.R.L., Aluvional S.A. and Aleph Midstream S.A.
Vista Energy Holding II, S.A. de C.V.
Vista Energy Holding II, S.A. de C.V. (formerly, ‘Vista Oil & Gas Holding II, S.A. de C.V.’) is a Mexican company with administrative offices in Mexico City incorporated for purposes of exploring and extracting hydrocarbons in Mexico, as well as to participate as a partner, shareholder or investor in all kinds of businesses or entities, whether commercial or civil, associations, trusts, or of any other nature, whether Mexican or foreign, from their inception or by acquiring shares, equity interests or other kind of interests, regardless of the name they are given, in all kind of corporations, as well as carrying-out any activities in the energy sector. It is the holder of 100% working interests in the CS-01.
AFBN, S.R.L.
AFBN, S.R.L. (formerly, ‘ConocoPhillips Argentina Ventures S.R.L.’) is a company organized and existing under the laws of Argentina dedicated to the E&P of hydrocarbons and the commercialization of oil, natural gas and NGL. In the Neuquina Basin, it holds a 50% non-operated interest in the Aguada Federal and Bandurria Norte unconventional exploitation concessions. Vista Energy Holding I, S.A. de C.V. holds a 4.31% direct interest in AFBN, S.R.L. The remaining interest is held by Vista Energy Argentina S.A.U. with 14.80% and Vista Holding VII S.A.R.L with 80.89%, the latter being a wholly-owned legal entity.
Aleph Midstream S.A.
Aleph Midstream S.A. is a company organized and existing under the laws of Argentina that started operating in August 2019 and became the first midstream player focused on providing gathering, processing and midstream services for oil and gas production in the Neuquina Basin, spearheading a new paradigm for the development of the Vaca Muerta shale play built on the concept of long-term partnerships with upstream-focused producers. Vista Energy Holding I, S.A. de C.V. holds a 36.08% direct interest in Aleph Midstream. The remaining 63.92% interest is held by Vista Oil & Gas Holding V B.V.
Aleph Midstream S.A. is a wholly owned subsidiary of Vista.
Aluvional S.A.
Aluvional S.A. is a company organized and existing under the laws of Argentina dedicated to the extraction of sand, stone, pebbles, granitic and/or calcareous materials and other natural resources that are used for the hydraulic stimulation of unconventional oil and gas exploitation in the provinces of Neuquen, Río Negro, Mendoza, and La Pampa. Aluvional S.A. holds 10-year term concessions of 15 quarries of siliceous sand, all of them located in the Province of Río Negro. Vista Oil & Gas Holding I, S.A. de C.V. holds a 95% direct interest in Aluvional S.A. The remaining 5% interest is held by Vista Energy Argentina SAU.
Argentina
During the year ended December 31, 2023, the company’s production was concentrated in the Neuquina Basin, mostly in the company’s development hub in Vaca Muerta.
The company has approximately 205,600 net acres located in the Vaca Muerta shale oil formation in Bajada del Palo Oeste, Bajada del Palo Este, Águila Mora, Aguada Federal, Bandurria Norte and Coirón Amargo Norte. The company operates 100% of its shale net acreage. As of December 31, 2023, the company had tied-in 83 shale oil wells targeting the Vaca Muerta formation in Bajada del Palo Oeste. Additionally, as of December 31, 2023, the company had tied-in its first 10 wells in Aguada Federal, the company’s first four wells in Bajada del Palo Este and the company’s first two wells in Águila Mora. This took the company’s shale production to 43.3 Mboe/d by the year end, up from 34.7 Mboe/d in 2022, boosted by strong individual well performance.
The company has a significant inventory of up to approximately 1,150 drilling locations targeting the Vaca Muerta shale oil formation within the company’s core development acreage, which provides the company with more than 20 years of drilling inventory. The company’s drilling inventory is located in the Bajada del Palo Oeste, Bajada del Palo Este, Aguada Federal, Bandurria Norte, Águila Mora and Corión Amargo Norte blocks. The company intends to expand its drilling inventory by testing additional landing zones.
As of December 31, 2023, the company also owned working interests in non-operated conventional assets in the Noroeste Basin. As a result of the Conventional Assets Transaction, the company transferred the operations of six conventional assets in the Neuquina basin, effective March 1, 2023.
Concessions
As of December 31, 2023, the company had working interests in the following oil and gas concessions in Argentina:
Neuquina Basin: (a) a 100% operating interest in the exploitation concessions Bajada del Palo Oeste, Bajada del Palo Este, Aguada Federal, Bandurria Norte (in all cases, as operator); (b) a 84.62% operating interest in the exploitation concession Coirón Amargo Norte (as operator); (c) a 90% operating working interest in the unconventional exploration concession Águila Mora (as operator); and
Noroeste Basin: a 1.5% non-operating interest in the exploitation concessions Acambuco (operated by Pan American Energy).
As a result of the Conventional Assets Transaction, the company transferred the operations of six conventional assets in Argentina, effective March 1, 2023.
The company’s Argentine concession agreements have no change of control provisions, though any assignment of these concessions is subject to the prior authorization by the executive branch of the province where the concession is located. For the four years prior to the expiration of each of these concessions, the concession holder must provide technical and commercial justifications for leaving any inactive and non-producing wells unplugged. Each of these concessions can be terminated for default in payment obligations and/or breach of material statutory or regulatory obligations. The company may also voluntarily relinquish acreage to the Argentine authorities.
Bajada del Palo Oeste
The company is the operator and holder of 100% of the unconventional exploitation concession granted for the Bajada del Palo Oeste block in the Neuquina Basin located in the Province of Neuquen. This block has proved reserves of 219.8 MMboe of shale reserves and 2.0 MMboe of conventional reserves as of December 31, 2023, and production of 33.8 Mboe/d (85% oil) for the year ended December 31, 2023. The 35-year term unconventional exploitation concession was granted to the company in December 2019 and expires on December 19, 2053.
During 2023, the company completed and tied-in six pads (pad BPO-16 to BPO-21), adding 23 shale oil wells and taking the shale oil well count in Bajada del Palo Oeste to 83 at year-end 2023. Total shale production in 2023 increased to 43,339 boe/d, out of which 32,588 boe/d corresponds to the shale production of Bajada del Palo Oeste.
The productivity of the company’s new wells demonstrates the quality of the company’s Vaca Muerta acreage. As of December 31, 2023, the Vista average well after 720 days of production (represented by the average of the company’s pads BPO-1 to BPO-10) was performing 6% above the company’s Bajada del Palo Oeste type curve.
Bajada del Palo Oeste has 62,641 gross acres with exposure to core shale oil Vaca Muerta acreage. The company’s drilling inventory targeting the Vaca Muerta shale oil formation amounts to up to 550 locations located in this concession. The company intends to expand such drilling inventory by testing additional stacked pay zones.
On June 28, 2021, the company formed an unincorporated joint venture and entered into an investment agreement with Trafigura Argentina S.A. (‘Trafigura’), initially, for the joint development of five pads of four wells each at Bajada del Palo Oeste, effective as of July 1, 2021.
The company remains operator of the block and holds 100% of the title of the Bajada del Palo Oeste concession.
On October 11, 2022, the company established an un-incorporated joint venture and entered into an investment agreement with Trafigura, for the joint development of three pads in Bajada del Palo Oeste. Under the terms of such agreement, effective as of October 1, 2022.
The company remains operator of the block and hold 100% of the title of the Bajada del Palo Oeste concession.
In conjunction with the agreement, Vista and Trafigura have extended by 12 months the previous crude oil sales and purchase agreement, under which Vista would sell to Trafigura 380,000 barrels of crude oil per month during the first half of 2023 and 345,000 barrels of crude oil per month during the second half of 2023.
As of December 31, 2023, three pads for a total of 12 wells have been tied-in yet under the terms of this agreement.
Bajada del Palo Este
The company is the operator and holder of 100% of the exploitation concession granted for the Bajada del Palo Este block in the Neuquina Basin located in the province of Neuquen. A 35-year term unconventional exploitation concession was granted on December 21, 2019 and expires on December 19, 2053.
Bajada del Palo Este has 48,853 gross acres with exposure to shale oil Vaca Muerta acreage.
Aguada Federal
On September 16, 2021, the company acquired a 50% non-operated working interest in Aguada Federal from ConocoPhillips Petroleum Holdings B.V. On January 17, 2022, the company acquired an additional 50% interest from Wintershall DEA Argentina S.A., and therefore, as of such date, the company became the operator and sole concession holder of the block. Aguada Federal is an unconventional exploitation concession in the Neuquina Basin located in the Province of Neuquen, covering approximately 24,058 gross acres.
As of December 31, 2023, the company had tied-in its first ten shale wells on the block. The concession expires on December 20, 2050.
Águila Mora
The company is the operator and holder of a 90% participation interest in the unincorporated joint venture with G&P (which owns the remaining 10% participation interest) for the unconventional exploitation concession over the Águila Mora block in the Neuquina Basin located in the Province of Neuquen, which covers approximately 23,475 gross acres.
On November 29, 2019, the Neuquen Province issued the Decree No. 2597 pursuant to which GyP was granted an unconventional exploitation concession over the Águila Mora block for a term of 35 years (renewable upon termination and subject to certain conditions for successive 10-year extensions) in replacement of the existing exploration permit over the block.
GyP holds the mining rights over Águila Mora. Vista (i) holds a 90% working interest in a joint venture with GyP for the exploration and exploitation of the hydrocarbons in Águila Mora; and (ii) is the operator of Águila Mora.
Bandurria Norte
On September 16, 2021, the company acquired a 50% non-operated working interest in the Bandurria Norte from ConocoPhillips Petroleum Holdings B.V. On January 17, 2022, the company acquired an additional 50% working interest from Wintershall DEA Argentina S.A. and therefore, as of such date, the company became the operator and sole concession holder of the block. Bandurria Norte is an unconventional exploitation concession in the Neuquina Basin located in the Province of Neuquen, which covers approximately 26,404 gross acres. The concession expires in 2050.
Coirón Amargo Norte
The company is the operator and holder of an 84.6% working interest in the unincorporated joint venture for the exploitation concession for Coirón Amargo Norte in the Neuquina Basin located in the province of Neuquen, which covers approximately 26,598 gross acres. The concession expires on February 22, 2037.
Based on the solid productivity results of the company’s pilot in Bajada del Palo Este, the company has added 50 new well locations to the drilling inventory in Coirón Amargo Norte.
Acambuco
The company holds a 1.5% working interest in the unincorporated joint venture for the exploitation concession for Acambuco in the Noroeste Basin located in the province of Salta, which covers approximately 293,747 gross acres. The operator of this assessment block is Pan American Energy, which holds a 52% interest. The remaining interests are held by YPF, which holds 22.5% interest, Shell Argentina, which holds 22.5%, and Northwest Argentina, which holds the remaining 1.5% interest. San Pedrito Exploitation lot under the Acambuco concession expires in 2036 and Macueta Exploitation lot, also under the Acambuco concession, expires in 2040.
CAT Exploitation Concessions
As a result of the Conventional Assets Transaction, effective March 1, 2023, Aconcagua became the operator of the following concessions in the Neuquina basin, in Argentina: Entre Lomas Neuquen, located in the Province of Neuquen, and Entre Lomas Río Negro, Jarilla Quemada, Charco del Palenque, Jagüel de los Machos and 25 de Mayo-Medanito SE, each located in the Province of Río Negro. Vista remains the concession title holder until no later than the final closing date on February 28, 2027, when the CAT Exploitation Concessions will be transferred to Aconcagua, subject to provincial approvals.
Vista retains the right to explore and develop the Vaca Muerta formation in the CAT Exploitation Concessions and seek to obtain one or more independent and separate unconventional concessions to develop such resources.
Mexico
CS-01 Block
The company hold a 100% interest in the license agreement entered into with CNH for block CS-01, which the company operate. The block covers approximately 14,332 gross acres and is located in the state of Tabasco. During 2023, the company relinquished a part of the area as strategy to reduce payments to the CNH. This license agreement will terminate in 2047.
Acreage
As of December 31, 2023, the company held a non-operated participation of 1.5% in Acambuco, which had 293,747 gross acres, of which 18,311 acres are developed and 275,436 acres are undeveloped. As a result of the Conventional Assets Transaction, the company transferred the operations of six conventional assets in Argentina, effective March 1, 2023. As of December 31, 2023, these assets had a combined gross acreage of 359,200, of which 70,178 acres are developed and 289,022 acres are undeveloped.
Drilling Activities
As of December 31, 2023, all of the company’s drilling activities were concentrated in Argentina and Mexico. The company holds a non-operated participation of 1.5% in Acambuco.
Delivery Commitments
The company is committed to providing fixed and determinable quantities of crude oil, natural gas and NGL in the near future under a variety of contractual arrangements, some of them under firm arrangements and others on a spot basis.
Transportation and Treatment
In the company’s operated blocks in Argentina, the company treats and transports its oil, gas and water production in existing transportation treatment facilities that have sufficient capacity to process and deliver the company’s hydrocarbon production. As of December 31, 2023, these existing treatment facilities were consisted of several oil and gas pipelines, eight batteries distributed throughout the blocks, one oil treatment plant, two water treatment plants and four compression stations.
All multiphase production from Bajada del Palo Oeste, Bajada del Palo Este, Aguada Federal and Coirón Amargo Norte is collected in primary separation batteries. Oil is pumped through pipeline to the Entre Lomas treatment plant to reach sales specifications (70,000 bbl/d capacity). Water is treated at, and pumped to disposal wells from, the Bajada del Palo water treatment plant (PIAS Borde Montuoso; capacity 19,000 bpd) and the Entre Lomas water treatment plant (capacity 80,000 boe/d). Gas production from Bajada del Palo Oeste and shale production of Bajada del Palo Este is compressed and dehydrated in two compressor stations to be injected to TGS Vaca Muerta system at Tratayen for further treatment. Sales Gas is injected to the TGS or TGN systems. Gas production from Aguada Federal is boosted and sent to a low-pressure gathering system in a neighboring block. Gas is treated and compressed into TGS sales pipelines. Gas from Coiron Amargo Norte is dehydrated and injected into the TGN Centro Oeste system. Conventional Gas from Bajada del Palo Este production is injected to Entre Lomas gas treatment plant (45 MMscf/d capacity), which injects spec gas into TGS system. Aguila Mora production is separated in the block. Gas is compressed, dehydrated and injected into a gas pipeline on a neighboring block, which injects to the TGS Vaca Muerta system. Oil and water are trucked to a tank battery at Bajada del Palo Oeste, where fluids are incorporated into the Bajada del Palo Oeste systems described above.
As a result of the Conventional Assets Transaction with Aconcagua, the gas complex in Entre Lomas Central Production Facility is now operated by Aconcagua.Vista Argentina and Aconcagua have signed two agreements, whereby (i) Aconcagua will treat and dispatch the natural gas corresponding to Vista Argentina injected at the Entre Lomas Central Production Facility, and (ii) Vista Argentina will treat and transport the crude oil and water corresponding to Aconcagua arising from Agua Amarga and Entre Lomas.
Midstream
Once treated, the company uses the oil pipeline system and oil tankers to transport oil to the company’s customers. Oil is customarily sold through contracts whereby producers are responsible for transporting produced oil from the field to refinery gate or a port for shipping, with all costs and risks associated with transportation borne by the producer. Gas, however, is sold at the point of delivery of the gas pipeline system near the field, and therefore, the customer bears all transportation costs and risks associated therewith. Oil and gas transportation in Argentina mostly operates in an ‘open access’ non-discriminatory environment under which producers have equal and open access to the transportation infrastructure. The company maintains limited storage capacity at the oil Terminal located in Puerto Rosales, near Bahía Blanca from which oil is delivered to the company’s end customers.
As of December 31, 2023, the company held approximately 50 Mbbl/d of oil pipeline transportation capacity, which includes the company’s existing capacity in the Oldelval system and access to Chile through the OTASA/OTC pipeline to Chile. The company also has approximately 11 Mbbl/d of oil transportation capacity through trucking. The company is working on an expansion of its loading bays at the company’s oil treatment plant to add to this capacity.
Additionally, the company has acquired capacity in three expansion projects, as shown below:
On December 21, 2022, the company, through its subsidiary Vista Argentina, was awarded crude oil transportation capacity of 31.5 Mbbl/d under the project to expand the current line from Allen to Puerto Rosales implemented by Oldelval (transportation concession holder) for 315 Mbbl/d.
On January 27, 2023, the company, through its subsidiary Vista Argentina, was awarded a storage and dispatch capacity of 225 Mbbl and 37.4 Mbbl/d, respectively, under the program to extend Puerto Rosales marine terminal and pumping station, in which Oiltanking Ebytem S.A. bid for a storage and dispatch capacity of 1,887 Mbbl and 315 Mbbl/d, respectively.
On May 16, 2023, through its subsidiary Vista Argentina, the company entered into an agreement with YPF S.A., Equinor Argentina B.V. Sucursal Argentina (‘Equinor’) and Shell Argentina S.A. (‘Shell’), whereby Vista was assigned an 8% interest on the Vaca Muerta Norte pipeline, equivalent to a crude oil transportation capacity of 12.5 Mbbl/d.
Customers and Marketing
Oil Markets
In Argentina, the company’s crude oil production was sold to domestic refineries and exported during 2023. During 2023, the company exported 52% of its oil sales volumes. During 2023, the company’s main domestic customers were Raizen and Trafigura. Approximately 99% of the company’s oil is produced in the Neuquina Basin and is referred to Medanito crude oil, a high-quality oil generally in demanded by Argentine refiners for subsequent distribution in the domestic market. Production from the company’s Neuquina Basin properties is transported to Puerto Rosales, a major industrial port in the southern region of the province of Buenos Aires through the Oldelval pipeline system, then goes to either the domestic refining market, which consists of five active refiners, or to international customers through maritime transportation. Additionally, as of May 2023, the company initiated oil exports to Chile through the OTASA/OTC oil pipeline. Even though the company prioritizes long-term relationships with domestic customers, the company has developed relationships with international customers in order to establish a diversified portfolio for the company’s expected production increase in the upcoming years.
In Mexico, 100% of the company’s crude oil production is sold to Pemex.
Natural Gas Markets and NGL
In Argentina, the company has established a diversified portfolio of customers for natural gas. The company’s primary customers in 2023 were industrial customers, representing 45% of the company’s total natural gas sales volumes for such period. The company generally sells its natural gas to Argentine customers pursuant to short-term contracts and in the spot market. The Neuquina Basin is served by a substantial gas pipeline network that delivers gas to the Buenos Aires metropolitan and surrounding areas, and the industrial regions of Bahía Blanca and Rosario. Natural gas produced in the company’s Neuquina Basin properties is readily marketed due to accessibility to such infrastructure. The company’s properties are well situated in the Basin with four major pipelines in close proximity. In Mexico, all the natural gas production is sold to Pemex.
With regards to the company’s NGL production, the company complies with domestic commitments set by the Argentine government with the intention of ensuring the supply for propane and bottled butane for residential uses. The company’s remaining NGL production is marketed within the Neuquina Basin.
Competition
In Argentina, the company competes for resources with state-owned YPF, as well as with privately-owned companies such as Pan American Energy, Pluspetrol, Tecpetrol, Chevron, Total, Compañía General de Combustibles, among others. In Mexico, the company competes for resources with Pemex, the state-owned company, and local and international oil companies.
History
The company was incorporated in 2017. It was formerly known as Vista Oil & Gas, S.A.B. de C.V. and changed its name to Vista Energy, S.A.B. de C.V. in 2022.
