Vista presented results for the second quarter of 2023. In that context, Miguel Galucciofounder and CEO of the firm, carried out an analysis and prospective in a call with investors in which he participated Ambit. Along these lines, during the period under analysis, Vista secured its interest in the Vaca Muerta Norte pipeline, with a working interest of 8%. According to the company, this will provide access to increase the evacuation capacity to Chile to 12.5 thousand barrels of oil per day, including the current flow.
“We expect the Vaca Muerta Norte pipeline to be operational in the fourth quarter of 2023. At that time, we plan to reverse the flow of the existing Oldelval pipeline from La Escondida to the original direction of flow. Adding to our existing capacity at Oldelval, the new capacity at Vaca Muerta Norte means that by the end of 2023, we project to have pipeline capacity of 57,000 barrels of oil per day,” he said. Galuccio and added: “If we consider the capacity already contracted in the expansion of Oldelval towards Puerto Rosales, we project to have 89 thousand barrels of oil per day by the end of 2025. This means that we have already secured the necessary evacuation capacity to meet our objectives of production by 2026, with room for further acceleration. I cannot stress enough the importance of this significant milestone and its contribution in supporting our plans for growth.”
Efficiency and increased production
According to what emerged from the call with investorsefficiency was a prominent feature in Vista’s balance sheet. This was thus driven by the transfer of the operations of the conventional blocks to the Aconcagua company, which allowed the company to focus entirely on the development of Vaca Muerta, thus achieving a lifting cost of 4.8 USD/boe, which represents a reduction of 38% compared to the previous year. It was the lowest facelift cost in the firm’s history. At once, the company achieved a 26% increase in shale oil production compared to the second quarter of 2022, while oil production, which also includes conventional oil, experienced a 6% year-on-year increase. In addition, total hydrocarbon production increased by 4% compared to the same period in 2022.
“Sequentially, we recorded a slight decline in production driven by three factors”Galuccio explained. “In the first place, due to the transfer of conventional assets, it meant a loss of 5.5 thousand barrels of oil equivalent per day.
Second, the evacuation capacity limited our growth in production, although this has been solved since June, when we began to export oil through a pipeline to Chile.
Third, by focusing on our pilot projects at Aguila Mora and Bajada del Palo Este, we connected fewer wells than usual in an average quarter. All three factors were considered in our plan and guidance for 2023, so we still project to meet our production guidance of 55,000 barrels of oil equivalent per day for the year,” the Vista head analyzed.
Oil Realization Prices and Revenues
According to the firm’s balance sheet, total revenue in the second quarter of 2023 was $231 million, representing a 22% decrease compared to the same period last year. As they explained, this decrease was the result of two factors: first, the normalization of crude oil inventories from low levels in the previous quarter, which, combined with the redirection of production towards Chile, resulted in lower availability of volumes in the terminal for exports across the Atlantic.
“This delayed our last shipment of the quarter from the end of June to the first week of July, so we exported 3 shipments during the quarter instead of the 4 we originally expected,” a company report said. “Second, realized oil prices weakened during the quarter. The realized price of oil for the quarter averaged $64.3 per barrel, representing a decrease of 18% compared to the same period last year and 3% sequentially. The average price realized in the national market was 63.1 dollars per barrel, while the price realized in the export markets was 68.6 dollars per barrel.
Adjusted EBITDA for the second quarter of 2023 was $151.8 million, representing a 25% decrease compared to the second quarter of 2022, due to lower revenues and partially offset by lower extraction costs.
“The pace of drilling and completion has already picked up, which will allow us to connect 12 wells in BPO in the third quarter, boosting oil production and revenues. After having normalized inventories and flows to Chile, we plan to export volumes equivalent to 5 cargoes, including exports to Chile, in the third quarter. Finally, we plan to connect 3 pads under the JV with Trafigura, which will generate $19 million of other revenue in the third quarter of 2023,” he said. Galuccio.
Source: Ambito
