Vista Energy, S.A.B. de C.V. (VIST) 29 Apr 222022 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to Vista's First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions] It is now my pleasure to introduce Strategic Planning and Investor Relations Officer, Alejandro Cherñacov.

Thanks. everyone. morning, Good

and to Results happy Vista's to First Vista's Vista's and COO. We Call. welcome I'm XXXX CFO; Pinto, Vera Conference and Galuccio, Garoby, here Quarter Vista's CEO; are Pablo you Juan with Chairman Miguel

risks like I forward-looking are Please our to X. to draw your advised your uncertainties the statements. answers that statements our and questions Before cautionary would these attention to from cause on include statement remarks. These could we forward-looking actual subject materially to be begin, including expectations may slide be by to that contemplated remarks today, results different

Our financial IFRS. accordance Standards, in figures and are in dollars International Reporting US with Financial stated

adjusted EBITDA. of to this measure be website closest yesterday. measures conference can Reconciliations IFRS we information. the our check during issued in for that certain we call, further release as the non-IFRS Please earnings found discuss these However, such may financial measures

ticker variable the common our sociedad Valores I Our the Bolsa and VISTAA company, de in The Valores The is a de VIST York warrant Mexico, is the Mexicana laws tickers Vista, de New anónima Stock organized in Bolsa our of Exchange. under registered the the call turn of capital over are New to Stock will Exchange. Mexicana now in VTWXXXA. York stock and the of Miguel. bursátil

of you robust results for key you our call. Thanks, all and our delighted first XXXX, thank share morning, joining metrics. this operational earnings Ale. with and across everyone, Good I am quarter performance to financial showing the of

solid driven performance Bajada a were the prices. QX was Oil drilling in production and adjusted revenues $X.X for Total Lifting of realized was for EBITDA by a production Capital XX%. $XXX.X EBITDA guidance del Bajada XX% and XXXX, During Oeste. boosted Palo a expenditure was increase million, by XX% to pads per XXXX the the year-over-year. in quarter, margin boes in the Oeste. well year-over-year, XX% per total was day, QX activity costs compared reflecting million, QX XXXX, solid million, up two stronger increase for $XXX.X wells production Adjusted completion averaged year. two XX,XXX in increase implying of Palo boe the quarter in line del first with our $XX.X

During free QX generated XXXX, million, flow positive operations. driven flow cash robust we $XX of from by cash

gross reduced income by we of solid million. a debt net was Additionally, the Adjusted $XX $XX.X million. quarter

main line represents curve. to interannually. was We development in boes now XXXX will boosted oil during operational be total the continues QX our del These now XX,XXX deep Total Palo by Production dive was producing number growth our pads XXXX driven which X XX% were and Oeste, metrics. of QX up number are day, production into quarter, production Bajada flagship financial and per now In production. and this XX. pad in by our tied type XX% with in

Bajada gas QX XXXX, X% year-over-year, from increased During driven associated Palo del gas Oeste. by mainly production

assets. Oeste, corresponding of zone to day Muerta production successful two as of Palo La pad Vaca XX Muerta, our wells Both Vaca top record result per were in As are of to an shared first market of was flagship last targeted per our development continues well. peak the completed oil, with This stages and and prove the we average average Cocina X,XXX with with high results well. track Bajada del week, about our XX to since our Palo in XX After per excited quality days number landing next first wells Bajada operator boes the Oeste. a del the

map. into three pilot of completion of we to first upside the and is our be phase as The wells Bajada Bajada have the geological the del clear model. time, five-well our wells eastern the del we pads pilot ready-to-drill Oeste, Palo drilling wells same At first of location del Palo In will drilled will be the will close to points a we in Vaca the XX importantly, shown play to basis the which of pads number hold QX. the finished confirms Pad further program. Upon the during acreage. Bajada to Palo Muerta. Oeste the our next XX, two it east of portfolio border have in continuity Oeste on XX where More of completed

barrel total. oil market for Brent in Domestic contracts track and continuing average. interannual market $XXX.X over were XX gradual average discounts revenues were in per tied close wells driven by Total for a to averaged up XX% domestic gas last a quarter of as sales improvement guidance. the Sales on in the year-over-year XX% quarter on of export XXXX. per averaged oil executed in show deliver around QX accounted of Commercial better with the an volumes one oil are barrel were crude two the prices. to oil quarters. domestic three around to having $XX. volumes by barrel Brent market to of were quarter-over-quarter. on realized X% to $XX exported cargoes accounted production We $XX $XX.X and barrels sales strong Realized March all increase The million per per per for XXXX and average. These XX% QX $X in year for boost end in oil million to prices barrel

April locked already May We have XXX% in and sales. of

prices BTU. year-over-year above oil Plan realized Gas boosted price million of also a mainly estimate we by million sell will revenues our which and export, and per $X.X Brent cargoes quarter, to per BTU BTU Regarding $XX $X per barrel Realized price industrial around additional We we sold gas QX. mark one prices $XX the to $X.X during us domestic in increased XX% significantly per prices cargo to of With the QX. increase one enable in with during April two have million above $XXX. between forecast

volumes in prices. our X% Palo fixed Bandurria by program offset $X.X per Lifting of Bandurria was gas incremental for of export the million cost market pesos Total was sold XX% costs despite were cost $XX.X per in We continues production lifting the million. to cost gas partially which year-over-year Aguada realized cost the Aguada acquisition started up realized In quarter-over-quarter and del addition our maintained Federal terms. the We by driven of boe absorb appreciation FX average Norte. quarter for price a optimization flat Federal quarter-over-quarter to from in lifting virtually $X.X BTU and real Bajada Norte driving base. and XX% executing increase lifting our Oeste,

XX% XXXX. from block QX at working million achieved working So a reduction million cost in QX XX% XXXX far $X this in interest XXX% we to at $X.X in interest

appreciation the the term We of in expect months. pesos real coming in further

Our current for QX outlook is around XXXX per $X boe.

million. the $XXX.X not $X.X costs. and approximately XXX% added reflects stable was with Bajada Bandurria growth is However, driven in Adjusted volume Federal include even year improved we for XXXX. the and Aguada driven line guidance. JV it strong combination sequentially with in Palo saving the EBITDA by million boe incremental cost by from and Norte in forecast per generated this operating full the Oeste a revenue does year-over-year XXXX of by Adjusted QX income QX expansion lifting del Trafigura, cost though EBITDA X% with in This which an of $X.X for

production Our with percentage was gas year-over-year points interannual a was increase barrel and quarter-over-quarter. two Palo the price an $XX.X adjusted now mix in $XX.X margin the by increase boe driven driven in by EBITDA points is Oil Oeste. boe. to increase. XX per improving our growth in to and XX% XX% total Bajada a of This oil the percentage cost was per oil per stable del XX% by Netback realized

activities in we behind reached with cycle sequentially. a acquisition QX XXXX Palo Aguada financial free in our activities payment investment stood CapEx Federal a to EBITDA the QX excluding million in at principal del we have accelerate of crude generation. was gross activities were whom negative flow Bandurria and is our Cash agreement down million of and was Palo cash our flow million flow. completion performance at payment. collection domestic for of offtakers capital Este. used of the XX and at the the reduction. main sequential Bajada Wintershall Norte was payment XXXX In The del During syndicated and $X the an the $XX recorded IV. from to pad December million XXXX flow the in in drivers reduction strong XXXX, main we $XXX.X from in million driven Cash million normalized of XX free $XX Oeste reflecting bond in the the financial recent of in QX end in used $XX.X for the period, million quarter was activities, pad the Change million. X% series driver $XX $XX debt cash Bajada strong by working $XX.X mainly flow of with positive loan Cash the and XX of Debt $XXX.X operating of million, and

a debt year. the of at XXXX end Net EBITDA three the of times times healthy EBITDA achieved already We ratio end adjusted XXXX. target to leverage reduction have our for QX has at from the decreased X.X QX adjusted

guidance XX. year. Slide the to will our of update an for Moving present I

wells us in XX,XXX with This in XX,XXX vis-à-vis a year. the XX% for XXXX to activity, plan. wells leaving Total per was during million tied our guidance maintain Regarding day XX QX. we with increase on XXXX to XX.X two line oil Mboes line per QX in track in shale day is [ph] XXXX. boes We tie of in production guidance

Federal recently cost We As lifting this was acquired the year production the were previously appreciation due Bandurria second of higher reduce the the be to and increase the consolidation for with in and guidance. assets. reduction initiative line drivers quarter in costs and to terms semester boe discussed, per lifting in real The in main to FX expecting sequentially. for cost $X.X slightly the ongoing the Norte increase the in will Aguada back

adjusted guidance. $XXX to $XX oil price QX We of the $XX million high-return prevails. this prices. in short-cycle the of increase XXXX upside activity of EBITDA projects compared realized noting This in to an oil reflects CapEx year $XXX We line original million, We maintain additional second to see an guidance price our guidance evaluating for our assumption currently for guidance of the international with scenario are our additional semester. raising that oil are shale we original EBITDA approximately if million, current the

of debt, year. we QX, target our debt gross essentially the for during reduction Regarding achieved gross

the We are to cash activity further drilling reductions given currently analyzing options free additional flow realized debt to and oil expected prices. higher make due additional

me we drive. in sustainability that Before Q&A, with share are you moving our let to progress good making

to projects greenhouse executing compared to gas intensity XXXX emission timely in are XX% We reduce by XXXX.

projects the are achieving our XXXX of are also offsets carbon with key execution that making progress nature-based We ambition good in solutions. in the from net zero to

first We more this will publish Palo and play for progress. production in wells very key XXXX, our Sustainability block. climate present edition, Report QX important risks Bajada which Este as governance disclosure, are our is our model details on This In TCFD we next del the two tied we proves del In we'll Bajada is where strategy change. a to geological to showed levels. our including which our of understand related robust shareholders into ESG it month the Palo our in Este, and continuity milestone

another positive financial million. flow adjusted of and we quarter cash have $XX.X recorded the front. income net On free

XXXX, in strengthened was to setting on Additionally, QX financial XXXX our balance one track gross we by X% deliver by quarter. operation performance In guidance. solid further reducing debt us on our sheet and

opportunity step We open shareholder obtained meeting week work their the Q&A. investors an continued This that, this shareholders continuous program to the incredible Earlier in held $XXX will and important to guidance hard for support deliver for first our operator, we our for I general EBITDA million. we thank $XX.X our in team return. at for commitment. please line their share and this by our approval take is for million million to strategy Vista with also And have adjusted to our our initiate year. raised which $XX annual buyback

Certainly. comes Guilherme line Morgan with Levy Stanley. of Instructions] Our the [Operator first from question

campaigns exports. spare And Hi. Vista I Congratulations you current everyone. My expectations result the Good an the years could time system, coming company more oil and second from issue? capacity to to increase share in from Argentina you have the to first Muerta? have country of can And for your appetite accelerate if have for international more of I taking my with transportation and on get crude question, and oil color just and question to into Argentine an too? Vaca just the pick before identified on the an it morning, us crude on for then any the you get wanted thank question. wanted drilling become and see is companies brain us if how on exports both you. idea recently thoughts also, you if the Thank in does amount the much in your quarters the

Thank for question, your for you you Guilherme the thank congratulations. and

for in allocate there's sure able second quarter. the can we're this third to in year. to the that one continue the going see the the the around million during will So continue were We quarter. second And the we quarter. that million rest we'll in And we able cargo for see already the exports first to oil million continue on be we export that of one starting to exporting to second export with barrels, export that a quarter X.X We barrels. have also second X.X million quarter,

that. the this are very I we So confident that could result in And QX. you see on think is

Your next capacity. to evacuation question was related the

field And first So, to reduce use the I BOE add a XXX,XXX additional going additional the around will crude day. step actually the we the per between say, capacity planning And day, are actually main the that year, They more add is have plans that be of XX,XXX to are in end per the basin planning capacity the XXXX. of teams transports QX spare to that and to understand the XXXXX have of is pipeline and towards double friction year. will one Blanca OldelVal, between a QX Bahía to Neuquina towards By XX% and [indiscernible] or running barrels add And XXXX. capacity around to of to capacity, end oil XX%. pipeline okay? also, step they probably trunk

and to in as good the ahead we we consideration to should are go we that Vaca growth plan planned, we be taking that what be I plan Muerta, if to support So, exporting mean okay should export, shape. continue in having into

Thank you.

next Your of Santander. the Chiarvesio question Walter comes with from line

would could I Hello, how oil? conversations questions, price locally? could trends other of me. inflationary could good Are morning. if of industry? my the for increase in give know high global us great. congratulations taking you dynamic the an thing for affect thoughts particular price Thank expect be you give if the don't the that And bottom economy, like is future That's ask the oil the you oil is going and would across to you Thank given seeing you in and prices on you Whatever the I to the us that, prices the the in results. these local peaking for idea you. cost probably in at that pressures

for Walter, that with Guilherme's probably you, before players. of And Vaca start question Thank Muerta your to adding we I question. regarding your appetite the skipped, international question,

international the appetite see players. we in Guilherme, So

in year the XX% that having coming This plan. of XXX,XXX from Muerta. is This rate. Vista a increase Vaca increased in We is today is one ones Vaca barrels in just growing the that move XXX,XXX the is in active. is they're have I to have one that running see we As production total it not XX% last This grown is the year. production from them fact are think moving Muerta barrels. and And that the showing particularly

rest So, having are appetite. the clearly of the an players

an EBITDA to question million so $XXX So upgraded from we EBITDA million. going $XXX number $XXX you we are was I price are as of Walter, average have terms $XX of in $XX your of to in million forward see, mean, going done an we seeing million of pricing, our $XX signaled. expecting and $XXX -- The the have with realized that average we a

is the have Now, the that in QX. $XX, the -- $XX average we price

So we prices in least seeing at $XX. are QX, of local

is we we the We point of export was have are Brent that $XXX. that already prices, today at closed and coming from the the -- basically that one cargo $XX.X

around expect should prices $XX. you So, realized

QX, So $XX. that we as estimate Average is will around pricing. for that for could be said, we

is all I linked the So, you in the know movement somehow The price. mean pump price, local yes, to depends prices positive. as

-- year. that with seen increases expect beginning So we happen what can the that see cannot logically, the of I further we will increase have pump, since will I the

dollars. X% So part, in it's far in

So yes do. expect definitely, are the we should cost of increases to happen. inflation, further logical at the see be thing will price pressure to pump. we That seeing we If

that side. keeping guidance. OpEx on per is that have do fighting first we in our that barrel cost today effect we are and And that's mean seeing all, inflation are peso still lifting in to on is we linked I main we're are every us of to We $X.X restated -- but appreciation allowing cost the Argentina, really our corner. the the is fighting This inflation mark real

have we've and guidance. adding that good the maintaining dilutes that also, of are that But is that us costs doing are that fact the and our maintain doing effect more feed that. and We guidance that allow why And an organization that to we been our we pretty that's production. dilute main is -- are course costs lifting unconventional we

we service pressure main CapEx all We be mean that service pressure cost side. on But how are many providers in matter we main options we negotiate we our from But yes, the how I that move also a is see and forward will of -- how have. and fronts. oilfield our seeing

very you much. Thank

questions? further any have we Do

the our Yes. Credit line with question from Suisse. next I'm comes Cardoso showing of Regis

costs lifting $X.X on Thanks, results. call. quick side one The from two then my the Congratulations currently. for Miguel and good Two on Hi, follow-ups morning. follow-ups, the questions.

objective So reach you $X.X. of the said, you plan to

cost you still reduce understand from I can So here.

Aguada Bandurria you a a Norte how discussed, we're everyone. to cost inflation Federal in little do has we've right? of and been between a I versus wanted inflation cost through higher balance this understand think, the the Just base living now getting to surprise bit

sense to much So, a how this. affected get of by wanted I you're getting

follow-up The is just other prices. on the quickly export realized

get wanted compare month? lagging one what relatively is a prices. quarter, And a seemed low I get the price to? second just Brent export compared Because to first for wanted the that? will a sense price we be Just why should sense implied prices of you Do there improvement to quarter. export apparently the to significant in

just those two I'll tackle you ones. follow with quick to If the two Miguel and then want other up

it's you can the and straightforward. that lag a the you Okay. second prices that's effect months expect one, I Regis, mean, starting two quite on from export probably of see. the

sometime Now, you mean, the that we I data $X discount first plus probably $X. the on and as question that course you you from to commercial of give we and prices have seen reducing towards been have is tax simple. $X, I of is Brent less have discount quite X%, than mean, remember to export the export our

how second was the go, probably. to that two of of see $XXX, we create first part the export So And this okay? example calculate. QX. you course, we to is to that, cargo QX. noise have is And in is yes, you of cargo you was on the for in months the realized question. This in you have $XX, what are that we somehow prices think, of I'm a the a is we okay? that data. Then So I going But done So that giving one see quarter, bit price we for is export to and more at That that lag -- two seeing. going can the have

we I -- know it don't so The but if first question, really I are... understand

and of from in a could much come increase And cost -- wanted Federal inflation just get efficiency much it the Norte? I could cost So Bandurria of lifting perspective? Aguada an how how to from gains reduction sense

Okay.

because yes, today Norte we a today, from laying we okay? is Bandurria not trucking. So reduction So and see XX-kilometer we reduction -- reducing, are will a Aguada pipeline a are Federal big -- we

barrel. Federal will It year per $XX have Aguada barrel. of we per current down probably of a in to the towards lifting today So end come cost $XX the

So the small. is production in still effect barrels oil in is this total of XXX day of the per production, Now okay?

So it's the that not to really going really is move something needle.

I to the doing on that are -- we we that Now reduce to And OpEx fight pressure. efficiencies. pressure to or rate side, will efficiencies. with not what a to we the getting be that of FX And with of value, think rate in FX in FX rate just neutralize the cap is absolute are able lot

and allows of has that part that maintain doesn't to during are from So I production $X.X is and that comes that the things we $X.X we a the to that year. additional allow of of us barrel. hope per unconventional us the cost that part fact lower our maintain going lifting cost. unconventional that feed much That the are to is -- the the volume add so Therefore, clear. It is have lifting it's a reduce the cost guidance. we what

and Very Este so side. on this CapEx Thanks on you embedded quick just $XXX rigs how drill investment Bajada results? -- many Palo plan? the ones in plan continue how much. recent clear, I are you del many And continue of in to whether the Miguel. may In pads after to plan If million, two this

Okay.

plan. are rigs, the This wells. have is plan. With the we that -- again we we okay? the This basically actual going plan, have plan So actual drill XX actual in X.X is to

in XX generating XX And looking If we in XX wells DUCs two that already towards year. going cash further del that are -- are that toward review of Mora. in one is Palo four going we make reduce Palo have debt. from activity. plan. are two that we middle Bajada Águila and from part that these to that going This the Federal are we that so we so clear add are Este, Este, EBITDA We more toward generating the tie will the del that we Bajada also additional the we wells that we our Aguada and to drilled want from The are are complete quarter second to are are clear today will if of the if we to tie better from basically are decision

so clear. Very Thanks much.

welcome. You’re

next from Thank question of Securities. the Demichelis comes with you. our line Alejandro Nau And

Alejandro. Hello,

Alejandro, your mute please check button.

Hello. now? hear me Can you

We to Yes. Yes. Alejandro now. listen you

great. you. That's Thank Okay.

thank taking the So very well you first call and for much congratulations.

I wanted activity. accelerating of Just to situation the on follow-up

us please of you feeling money kind you what could doing So you enough some of are please? think have what if is like about give the and you thinking you outlook

as to Este as Yes. be to going likely Bajada Este. Aguada a that pad. also most will add we Alejandro it's more simple. I Federal, we Alejandro? very per one but pad Hello. if continuation of going add likely Palo could activity del one Are we there, Federal if it's most have. we it be today mean you perceive at decide Palo information But Aguada in Bajada be We today del it's to look

Okay.

seems move wrong with be Something to his on. line. We'll

Our next with question Citigroup. Cardona is from Andrés

at Bajada everyone. successful drilling morning, the results both Palo for del the Oeste. Good and Hi. Congratulations

drill there. accelerate Bajada Do Bajada you to How balance Palo Palo at prices Bajada have because just the to return given or -- results from after is, do by plans higher you after east thoughts your potential you east And one sorry to better have results positive the start of ready Thanks. this more of side to to me Oeste? plans get both Oeste the ones Let did about and you del Palo side right? have of the you the of your And del del maybe in the drill Oeste, consider accelerate second hear you're both flow you own? cash these Trafigura, like good possibilities? could can why not wanted incremental with ways? I So deals that do the

your for much very question. you Thank

So starting Bajada del Palo with Oeste.

So Oeste let think Palo it's understand. Bajada important about del first tell me to you that I

meters. have around from as Bajada our delineation Bajada of initial on our on the that we of east Oeste. during and west Oeste were Palo around del production pore XX is del fantastic of proves del drill day. model pressure mainly barrels is basically our This API And gravity. XX Palo said completed kind also that were gravity and geological we API. is the frac plan API it wells. XX the west two the gravity and Vaca of So this of proves wells wells you we first QX mean that fantastic two Bajada model production and proves it but the we with in have These those Oeste -- which parameters. per one production our five Palo on put this of wells because wells The for is around expectation Palo in the Bajada and saw a productivity a stages X,XXX the del other two or two of I X,XXX news, of proves One we API We wells can geological Muerta

encouraging. very is somehow this So

del east course, Bajada where area that said, side can we proving per Oeste also we pad in del for that is of wells. we as your news to within very very that locations three the that that as is pad about the What XX proving of around okay? good we good, that. left our this Palo probably us another is very Bajada of add Palo of west we close is drilled, So side yes encouraged drill So it's Oeste drilled but question,

we We the block pad Any Palo a question? will of then Oeste. probably well drill toward one will to so finish east east. other the further Bajada opportunity assessing just toward opportunity center And complete the probably del more place the of

Yes.

of Balanz. with the Oriana from line comes question next Covault Our

with Hi. Oriana is have Covault three question. taking Thanks This I for my Balanz. questions.

Sorry for the extension, but they should quick. be rather

of royalty the higher than specific the it XX% there missing? any implied quarter, rates rates So we looks royalty are yields. first for Are that wells looking the for at for unconventional some

can't time Oriana, I sorry the line slowly? are not the you. good Can speak to Because you having we is get so listening a question. so hard

better hear Yes. me Do now? I'm you sorry.

Yes.

Okay.

So question XX% royalty unconventional my than When looks for was first it rates the the look rates. at wells. we quarter, higher royalty the around the implied for

specifics out, if are trying there's missing? to just any So we that figure

Okay. All right.

this is have -- a mix on So in that the the have we unconventional -- we look XX% XX% at conventional. I see that plus of

quite the So should be straightforward. calculation

I'm with seeing. So on happy between what is follow that to if more Alejandro XX% different you're sure, not up details. have that But it's I you XX% to if want mean and one

could the one. if sounds to That good. we following Maybe, move

Just availability particular on are to per post we expect your or development of and pricing a or this for that seeing rigs, that you in consideration? plan of trends have global XXXX, Vista on well effect the anything industry speed do in particular cost should CapEx have

I the as Oriana. we have -- be a And inflation CapEx wages the pressure. will we mentioned to will services you, have future. side things. more then, oil place No, And I also and -- oilfield other contract in from of not have services we we for it contract probably mean so would really thing on

we will to have that. deal So with

we of the with In I terms XX the rate, continue as wells. before said

two to an in because Este. saw in Bajada you in just idea, Just we tie wells QX Palo have that del

from we Now complete will DUCs QX Palo so with [ph] Palo -- have from from should Oeste QX, and del is the that this the four complete expect eight complete These X.X wells we outlined be Aguada and rigs. pace another we And that Oeste two done Bajada del eight Águila of tie are and this So And to we del plan from far. four are and Oeste. will Palo going Bajada where Mora from okay? four this course, Federal. wells should we wells velocity Bajada coming QX, wells see around in. another four the in the

It's okay.

of yet. So the the will has also not pad adding one toward that we the second but decided of possibility part been evaluate year,

heard keep one, some free of Okay. we to rumors you. that last just And use offshore. Thank That's have potential law about some could exporters reserve allow sort perfectly new one a clear.

Just this? you take rumors? what ground is see wondering, some your on Do for time being or this only the with solid

yes. Oriana,

clear the the So this is flexible-ize a to we on situation, cross-border discussion that. plenty they that and yes, have country of moving of allow It's win-win if for proceeds. how

that. and a So with a win-win industry. I favor is minister It's for country with in somehow win-win positive -- the that the situation it's understand

of to of likelihood I that happen, the will think sense. I makes but So comment it not a on lot

for taking great. the my and results. congratulations sounds Thanks That questions for Perfect. again,

present. Thank Oriana you, being for

you. Thank [ph] question Fundamental. with of line Jorge our comes And the from next Mauro

given and do can Yes. relative that you. your going My to long-term Bajada comment Este? comment can results completed del any I on on mean far if Palo plan, you Bajada or change that if it regarding plan? -- Palo is Wonder it? the have you Thank is Este to on you these question have wells now so plant del the you

for Jorge questions. your you, Thank

to need the mean So to Bajada do complete for that we the Palo I thing is del delineation. Este, first

Palo in completed It to the before because to So us that did demonstrate del fantastic part I first Bajada And say pad a Oeste. allow easy where we surrounding additional that. completed just that probably have of I part first XX we mentioned first block very close is the will we the news, the of locations. pad, that we because already as

of to want delineation the what it sell we wells. we do so delineation? bring block, full part is completion strategy really if of But the our to before if we in the I tackle to deciding that if finish want it to the will want decide the will, said alone, as After block will we a what Now, partner, that whatever. could we additional to do to we or to take before three need need to finish be far

okay? formations So in block far was present. east, move that that further going east, two to then the know further we be As the pad not it one one that believe the middle and be of will is and we of very one we

to we is exactly reality. that to with try the demonstrate actual have -- we and So working model if recalibrate really how the need

what first that then, step. the will decide develop to is be we can Bajada commercially And develop So the del Palo Este. to fully strategy

As you Oeste XXX well our in Bajada Federal. wells, del have That's from today and coming Aguada know Palo we okay? inventory

really are So [indiscernible] more going. we we can the have reserves at that that pace we

Este. Bajada develop del will So us Palo of it plenty for to be options

Great. Thank you.

Jorge. welcome, You're

Thank you.

no questions. I'm showing Now further

call So Miguel closing over with to that. I'll remarks. for the hand back any

much conference call. very for gentlemen, thank and attending Ladies you this

the following super like you interest. we and also with opportunity us We and take for are support to for happy your And the the results. thank would to for

next to, quarter. forward looking see So you

call. you concludes gentlemen, and may now this conference Thank disconnect. Ladies And for participating. today's you