← Back to VIST filing summaryOriginal filing text · Part I
Item 5 — Management's Discussion and Analysis
Vista Energy, S.a.b. De C.v. · 20-F · FY 2025 · Period ended Dec 31, 2025
View complete filing on SEC EDGAR ↗This is the extracted source text from the SEC filing. Formatting may differ from the original document.
This section contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including, without limitation, those set forth in “Forward-Looking Statements” and “Item 3—Key Information—Risk Factors” and the matters set forth in this annual report generally.
The following discussion is based on, and should be read in conjunction with our Audited Financial Statements and related notes contained in this annual report.
ITEM 5.A OPERATING RESULTS
The table below presents our selected financial data as of and for each of the years in the three-year period ended December 31, 2025. Our historical results for any prior period do not necessarily indicate results to be expected for any future period.
The selected consolidated statement of comprehensive income for the years ended December 31, 2025, 2024, and 2023 and the selected consolidated statement of financial position as of December 31, 2025, and 2024, have been prepared in accordance with IFRS Accounting Standards as issued by the IASB and have been derived from our Audited Financial Statements included elsewhere in this annual report.
The entire summary financial information included in the following tables is denominated in U.S. Dollars. The financial data that has been derived from our Audited Financial Statements was prepared in accordance with IFRS Accounting Standards. For further information, see “Presentation of Information—Financial Statements and Information.”
You should read the information below in conjunction with our Audited Financial Statements, including the notes thereto, as well as the sections “Presentation of Information.”
114
Table of Contents
Year ended December 31, 2025 Year ended December 31, 2024 Year ended December 31, 2023
(in thousands of US$)
Revenue from contracts with customers 2,474,197 1,647,768 1,168,774
Cost of sales
Operating costs (186,945 ) (116,526 ) (94,685 )
Crude oil stock fluctuation 1,046 1,720 (2,058 )
Royalties and others (345,349 ) (243,950 ) (176,813 )
Depreciation, depletion and amortization (738,903 ) (437,699 ) (276,430 )
Other non-cash costs related to the transfer of conventional assets (29,016 ) (33,570 ) (27,539 )
Gross profit 1,175,030 817,743 591,249
Selling expenses (218,072 ) (140,334 ) (68,792 )
General and administrative expenses (147,709 ) (108,954 ) (70,483 )
Exploration expenses (578 ) (138 ) (16 )
Other operating income 512,793 54,127 203,812
Other operating expenses (32,382 ) (1,261 ) 302
Impairment of long- lived assets (38,252 ) 4,207 (24,585 )
Operating profit 1,250,830 625,390 631,487
Income (loss) from investments in associates (5,214 ) — —
Interest income 10,594 4,535 1,235
Interest expense (163,356 ) (62,499 ) (21,879 )
Other financial income (expense) (88,183 ) 23,401 (65,484 )
Financial income (expense), net (240,945 ) (34,563 ) (86,128 )
Profit before income tax 1,004,671 590,827 545,359
Current income tax (expense) (241,657 ) (426,288 ) (16,393 )
Deferred income tax (expense) benefit (43,951 ) 312,982 (132,011 )
Income tax (expense) (285,608 ) (113,306 ) (148,404 )
Profit for the year, net 719,063 477,521 396,955
Other comprehensive income
Other comprehensive income that shall not be reclassified to profit (loss) in subsequent periods
- Profit (loss) from actuarial remediation related to employee benefits 36 (10,200 ) 6,565
- Deferred income tax (expense) benefit (13 ) 3,570 (2,298 )
Other comprehensive income for the year 23 (6,630 ) 4,267
Total comprehensive profit for the year 719,086 470,891 401,222
Earnings per share
Basic (US$ per share): 7.015 4.979 4.237
Diluted (US$ per share): 6.707 4.633 4.000
Adjusted EBITDA(1) 1,596,346 1,092,452 870,658
Adjusted EBITDA Margin(2) 64 % 65 % 69 %
Adjusted Net Income (3) 339,752 193,902 491,431
ROACE (4) 29 % 24 % 39 %
(1) We calculate Adjusted EBITDA as profit for the year, net, plus income tax expense, financial income (expense), net, depreciation, depletion and amortization, income (loss) from investments in associates, impairment of long-lived assets, gain from business combination, gain from asset disposals, restructuring expenses, gain related to the transfer of conventional assets and other non-cash costs related to the transfer of conventional assets. We present Adjusted EBITDA because we believe it provides investors with a supplemental measure of the financial performance of our core operations that facilitates period to period comparisons on a consistent basis. Our management uses Adjusted EBITDA, among other measures, for internal planning and performance measurement purposes. Adjusted EBITDA is not a measure of liquidity or operating performance under IFRS Accounting Standards and should not be construed as an alternative to net profit, operating profit, or cash flow provided by operating activities (in each case, as determined in accordance with IFRS Accounting Standards). See “Presentation of Information—Non-IFRS Financial Measures.”
(2) We calculate Adjusted EBITDA Margin as the ratio of Adjusted EBITDA to revenue from contracts with customers plus Gain from Exports Increase Program. See “Presentation of Information—Non-IFRS Financial Measures.” If sea freight selling expenses are subtracted from revenue from contract with customers, the Adjusted EBITDA margin for the year ended December 31, 2025 is 65%. During Q4 2025, VEISA, the Company’s dedicated trading arm, started operations. VEISA is a company fully owned by Vista. Although VEISA sells mostly on a CIF (Cost, Insurance and Freight), CFR (Cost and Freight) or DAP (Delivered At Place) basis, for consistency purposes we subtract sea freight selling expenses to consider revenues on a FOB (Free On Board) equivalent basis. For more information on VEISA, see “— Main subsidiaries”.
115
Table of Contents
(3) We calculate Adjusted Net Income as profit for the year, net, plus deferred income tax (expense) benefit, impairment of long-lived assets, changes in fair value of warrants, gain related to the transfer of conventional assets, other non-cash costs related to the transfer of conventional assets and gain from business combination. We add back these six adjustments since they are non-cash items that do not reflect the fair net income generation of the Company. See “Presentation of Information—Non-IFRS Financial Measures.”
(4) We calculate ROACE as Adjusted EBITDA, plus depreciation, depletion and amortization, gain related to the transfer of conventional assets, other non-cash costs related to the transfer of conventional assets and gain from business combination, divided by the sum of the average total debt and average total shareholders’ equity. For purposes of this definition, total debt is comprised of current borrowings, non-current borrowings, current lease liabilities and non-current lease liabilities. See “Presentation of Information—Non-IFRS Financial Measures.”
The following table sets forth the reconciliation of Adjusted EBITDA, Adjusted EBITDA Margin, Net Debt, Adjusted Net Income and ROACE:
Year ended December 31, 2025 Year ended December 31, 2024 Year ended December 31, 2023
(in thousands of US$)
Profit for the year, net 719,063 477,521 396,955
Income tax expense 285,608 113,306 148,404
Financial income (expense), net 240,945 34,563 86,128
Depreciation, depletion and amortization 738,903 437,699 276,430
Restructuring expenses 29,875 — 276
Impairment of long-lived assets 38,252 (4,207 ) 24,585
Gain related to the transfer of conventional assets — — (89,659 )
Other non-cash costs related to the transfer of conventional assets 29,016 33,570 27,539
Gain from business combination (490,530 ) — —
Income (loss) from investments in associates 5,214 — —
Adjusted EBITDA 1,596,346 1,092,452 870,658
Revenue from contracts with customers 2,474,197 1,647,768 1,168,774
Gain from Exports Increase Program 5,378 43,911 86,173
Adjusted EBITDA Margin (1) 64 % 65 % 69 %
(1) We calculate Adjusted EBITDA Margin as the ratio of Adjusted EBITDA to revenue from contracts with customers plus Gain from Exports Increase Program. See “Presentation of Information—Non-IFRS Financial Measures.” If Sea freight selling expenses are subtracted from revenue from contract with customers, the Adjusted EBITDA margin for the year ended December 31, 2025 is 65%. During Q4 2025, VEISA, the Company’s dedicated trading arm, started operations. VEISA is a company fully owned by Vista. Although VEISA sells mostly on a CIF (Cost, Insurance and Freight), CFR (Cost and Freight) or DAP (Delivered At Place) basis, for consistency purposes we subtract Sea freight selling expenses to consider revenues on a FOB (Free On Board) equivalent basis. For more information on VEISA, see “— Main subsidiaries”.
Year ended December 31, 2025 Year ended December 31, 2024 Year ended December 31, 2023
(in thousands of US$)
Profit for the year, net 719,063 477,521 396,955
Adjustments:
(+) Deferred Income tax (expense) 43,951 (312,982 ) 132,011
(+) Changes in the fair value of Warrants — — —
(+) Impairment of long-lived assets 38,252 (4,207 ) 24,585
(+) Gain related to the transfer of conventional assets — — (89,659 )
(+) Other non-cash costs related to the transfer of conventional assets 29,016 33,570 27,539
(+) Gain from business combination (490,530 ) — —
Adjustments to Net Income (379,311 ) (283,619 ) 94,476
Adjusted Net Income 339,752 193,902 491,431
116
Table of Contents
As of December 31, 2025 As of December 31, 2024 As of December 31, 2023
(in thousands of US$)
Current and non-current borrowings 3,154,077 1,448,567 616,055
Cash, bank balances and other short-term investments 538,402 764,307 213,253
Net Debt 2,615,675 684,260 402,802
As of December 31, 2025 As of December 31, 2024 As of December 31, 2023
(in thousands of US$)
Current and non-current borrowings 2,615,675 684,260 402,802
Adjusted EBITDA 1,596,346 1,092,452 870,658
Net leverage ratio 1.64 0.63 0.46
As of December 31, 2025 As of December 31, 2024 As of December 31, 2023
(in thousands of US$)
Adjusted EBITDA 1,596,346 1,092,452 870,658
Depreciation, depletion and amortization (738,903 ) (437,699 ) (276,430 )
Gain related to the transfer of conventional assets — — 89,659
Other non-cash costs related to the transfer of conventional assets (29,016 ) (33,570 ) (27,539 )
Gain from business combination 490,530 — —
Average current and non-current borrowings 2,301,322 1,032,311 582,694
Average current and non-current lease liabilities 119,782 83,064 49,831
Average total shareholders’ equity 2,066,404 1,434,114 1,045,538
ROACE 29 % 24 % 39 %
117
Table of Contents
Selected Consolidated Statement of Financial Position
As of December 31, 2025 As of December 31, 2024
Assets
Noncurrent assets
Property, plant and equipment 5,543,032 2,805,983
Goodwill 22,576 22,576
Other intangible assets 18,485 15,443
Right-of-use assets 153,283 105,333
Biological assets 15,855 10,027
Investments in associates 54,542 11,906
Trade and other receivables 373,026 205,268
Deferred income tax assets 36,514 3,565
Total noncurrent assets 6,217,313 3,180,101
Current assets
Inventories 9,457 6,469
Trade and other receivables 347,681 281,495
Cash, bank balances and other short-term investments 538,402 764,307
Total current assets 895,540 1,052,271
Total assets 7,112,853 4,232,372
Equity and liabilities
Equity
Capital stock 491,165 398,064
Other equity instruments 32,144 32,144
Legal reserve 8,233 8,233
Share-based payments (32,765 ) 45,628
Share repurchase reserve 179,324 129,324
Other accumulated comprehensive income (losses) (11,034 ) (11,057 )
Accumulated profit (losses) 1,844,527 1,018,877
Total equity 2,511,594 1,621,213
Liabilities
Noncurrent liabilities
Deferred income tax liabilities 298,664 64,398
Lease liabilities 88,451 37,638
Provisions 51,513 33,058
Borrowings 2,803,982 1,402,343
Employee benefits 16,226 15,968
Income tax liability 13,964 —
Trade and other payables 292,236 —
Total noncurrent liabilities 3,565,036 1,553,405
Current liabilities
Provisions 10,800 3,910
Lease liabilities 55,452 58,022
Borrowings 350,095 46,224
Salaries and payroll taxes 35,891 32,656
Income tax liability 120,910 382,041
Other taxes and royalties 43,945 47,715
Trade and other payables 419,130 487,186
Total current liabilities 1,036,223 1,057,754
Total liabilities 4,601,259 2,611,159
Total equity and liabilities 7,112,853 4,232,372
Dividends and Shares
Number of shares 104,299,705 95,285,453
118
Table of Contents
Source of Revenues
Vista is principally engaged in the oil and gas E&P business. Our oil and gas operations derive revenues mainly from the production and sale of crude oil, natural gas, and NGL. During the year ended December 31, 2025, oil sales contributed 96.4% of our total revenues, natural gas sales contributed 3.4% of our total revenues and NGL sales contributed 0.2% of our total revenues. During the year ended December 31, 2024, oil sales contributed 95.5% of our total revenues, natural gas sales contributed 4.3% of our total revenues and NGL sales contributed 0.2% of our total revenues. During 2025, 2024 and 2023, most of our revenues were generated in Argentina.
Our sales volumes impact directly our results of operations. As reservoir pressure declines, production from a given well, or group of wells, in a formation decreases. Growth in our future production and reserves will depend on the development of our acreage and the corresponding capital expenditure, which will determine our ability to add proved reserves in excess of our production. Accordingly, we plan to maintain our focus on adding reserves by further drilling our shale oil acreage in Vaca Muerta. Our ability to add reserves through acquisitions is dependent on many factors, including prevailing market conditions and our ability to raise capital, obtain regulatory approvals, procure drilling rigs and personnel and successfully identify and consummate acquisitions.
Our business is inherently volatile due to the influence of external factors, such as domestic and international demand, market prices, availability of financial resources for our business plan and its corresponding costs and government regulations. Consequently, our past financial condition, results of operations and the trends indicated by such results and financial condition may not be indicative of current or future financial conditions, results of operations or trends.
We sell our oil and gas to many creditworthy purchasers. Since our production is sold in the commodities market where several customers or markets are accessible to us, we do not believe the loss of any customer would have a material adverse effect on our business.
Production Results and Other Operating Data
The following table sets forth summary unaudited information about the oil and natural gas historical production volumes and other relevant operating and financial data of the assets we own in Argentina and Mexico. For the year ended December 31, 2025, the historical production volumes and other relevant operating data included below were calculated at their respective working interest percentages. The royalties and others line includes royalties and export duties. Royalties payable to Provinces have not been deducted from our net production amounts given that substantially all of our production is currently in Argentina and under Argentine law royalties constitute a production tax payable in cash (and do not give Provinces a direct interest in such production to make lifting and sales arrangements independently). Export duties and sea freight selling expenses have been deducted from the realized prices.
119
Table of Contents
As of the year ended December 31,
2025 2024 2023
Net production volumes(1):
Oil (MMbbl) 36.5 22.1 15.8
— Argentina 36.4 21.9 15.6
— Mexico 0.1 0.2 0.2
Natural Gas (Bcf) 30.4 18.4 15.2
— Argentina 29.7 18.3 15.1
— Mexico 0.7 0.0 0.1
NGL (MMboe) 5.4 0.1 0.2
— Argentina 5.4 0.1 0.2
— Mexico 0.0 0.0 0
Total (MMboe) 42.1 25.5 18.7
— Argentina 42.0 25.3 18.4
— Mexico 0.1 0.2 0.2
Average daily net production (boe/d) 115,479 69,660 51,149
— Argentina 115,107 69,046 50,488
— Mexico 372 615 661
Average realized sales price:
Oil (US$/bbl) 62.9 69.2 66.7
Natural Gas (US$/MMBtu) 2.6 3.2 3.5
NGL (US$/tn) 395.5 324.4 351.3
Average realized sales price (US$/boe) 56.6 61.4 58.4
Average unit costs (US$/boe)(2):
Operating costs 4.4 4.6 5.1
Royalties (3) 6.4 7.2 6.9
Depreciation, depletion and amortization 17.5 17.2 14.8
Other data (in thousands of US$)
Operating costs 186,945 116,526 94,685
Royalties (3) 271,665 184,441 128,723
Depreciation, depletion and amortization 738,903 437,699 276,430
(1) Measured based on our working interest. There was no production due to others during the applicable periods. Oil production is comprised of production of crude oil, condensate and natural gasoline. Natural gas production excludes natural gas consumption. NGL production is comprised of production of propane and butane (LPG) and excludes natural gasoline.
(2) We calculate average unit costs per boe by dividing operating costs, royalties or depreciation, depletion and amortization for the relevant period, as applicable, by average daily net production multiplied by days in each period (365 days for 2023, 366 days for 2024 and 365 days for 2025).
(3) Measured based on our working interest. Royalties are applied to the total production of the concessions, and are calculated by applying the applicable royalty rate to the production, after discounting certain expenses in order to obtain the value of crude oil, natural gas and liquefied gas volumes at the wellhead.
120
Table of Contents
The following table highlights certain operating data through the end of the fourth quarter of 2025:
Three-month period ended December 31, 2025 Three-month period ended September 30, 2025 Three-month period ended June 30, 2025 Three-month period ended March 31, 2025
Average Brent Crude Oil Price (US$/bbl)(1) 63.1 68.1 66.8 74.9
Average Medanito Crude Oil Price (US$/bbl)(2) 56.2 62.2 61.4 68.5
Average Natural Gas Price (US$/MMBtu)(3) 2.6 3.7 3.7 2.8
Net production volumes:
Oil (MMbbl) 10.88 10.09 9.30 6.27
Natural Gas (Bcf) 8.50 8.61 7.84 5.41
NGL (MMboe) 0.06 0.04 0.04 0.05
Total (MMboe) 19.45 18.73 17.19 11.73
Average realized sales price:
Oil (US$/bbl) 58.9 64.6 62.2 68.6
Natural Gas (US$/MMBtu) 1.8 3.3 2.8 2.5
NGL (US$/tn) 344 365 427 453
Lifting Cost (US$/boe) 4.7 4.7 4.5 4.3
Number of conventional wells drilled as operator 0 0 0 0
Number of shale wells drilled as operator 12 15 12 10
Revenue from contracts with customers 719,064 706,135 610,542 438,456
(1) Source: Bloomberg.
(2) Light oil extracted from the Neuquina Basin. Source: Argentine Secretariat of Energy.
(3) Source: Argentine Secretariat of Energy and US$/AR$ exchange rate according to Communication “A” 3500 of the BCRA.
121
Table of Contents
Factors Affecting our Results of Operations
Our operations are affected by a number of factors, including:
(i) the volume of crude oil, natural gas and liquid gas we produce and sell;
(ii) pricing dynamics and pricing regulation;
(iii) hydrocarbon export regulations set by the Argentine and Mexican governments and domestic supply requirements;
(iv) international and domestic prices of crude oil and oil products;
(v) discount of our oil production to market prices;
(vi) our capital expenditures and financing availability;
(vii) supply chain dynamics and cost increases;
(viii) market demand for hydrocarbon products;
(ix) operational risks, labor strikes and other forms of public protest;
(x) taxes, including export taxes;
(xi) regulation of capital flows;
(xii) exchange rates;
(xiii) interest rates; and
(xiv) changes to demand for hydrocarbon products and related services as the result of global trends such as conflicts, pandemics and consumer behavior.
Our business is inherently volatile due to the influence of external factors, such as domestic demand, market prices, availability of financial resources for our business plan and its corresponding costs and government regulations and policies. Consequently, our past financial condition, results of operations and trends indicated by such results and financial condition may not be indicative of current or future financial conditions, results of operations or trends.
Discovery and Exploitation of Reserves
Our results of operations depend to a large extent on our level of success in the development of our shale oil acreage. While we have geological reports evaluating certain proved, contingent and prospective reserves in our blocks, there is no assurance that we will continue to be successful in the exploration, appraisal, development and commercialization of oil and gas. The calculation of our geological and petrophysical estimates is complex and imprecise, which means it is possible that our future exploration or appraisal in undeveloped acreage will not result in additional discoveries, and, even if we are able to successfully make such discoveries, it is uncertain whether the discoveries will be commercially viable to produce.
Funding our capital expenditures partially relies on oil prices remaining close to, or higher than, our estimates together with other factors to generate sufficient cash flow. Low oil prices may affect our revenues, which in turn may affect our debt capacity and our capacity to remain within the leverage ratios defined in the covenants in our financing agreements, as well as our cash flow from operations. Our operations, investor confidence and share price could be adversely affected if we are not able to generate enough cash flows to fund our future operating costs and capital expenditures.
If average realized oil prices are higher than expected, we would have the ability to allocate additional capital to engage in new projects, potential acquisition opportunities and accelerate the pace of existing operations, in all cases leading to a potential increase in our oil and gas production and cash flows.
122
Table of Contents
Our operations results would be adversely affected in the event that our oil and natural gas reserves and the capital return do not meet our expectations. In addition, we focus on several factors when analyzing new investment in our blocks or potential acquisitions. As a consequence, it is uncertain whether we will focus on the development of our current assets or make any acquisitions to increase our current production and reserves. Our business, results from operations and financial condition may be materially affected if we do not deploy the necessary capital expenditures to increase the reserves of our current blocks or increase our reserves through profitable acquisition opportunities.
Availability and Reliability of Infrastructure
Our business depends on the availability and reliability of operating, gathering and treatment facilities in the areas we operate, and the expansion of midstream capacity to take hydrocarbon production to our customers. Prices, together with the availability of equipment and infrastructure, with the corresponding maintenance thereof, affect our ability to follow our investment plan to operate our business, and thus our operations results and financial condition. See “Item 4—Information on the Company—Business Overview—Transportation and Treatment.”
Contractual Obligations
Unconventional concessions have 35-year terms under the Argentine Hydrocarbons Law. To maintain our exploitation rights granted by the provincial executive branch, we are required to comply with certain investment commitments, typically related to the drilling and completion of new wells as per a project pilot approved by the provincial executive branch. These pilots must be executed within a fixed timeframe, typically between three and five years. Operating and maintenance costs may increase significantly due to adverse local or international market conditions, such as local recession, foreign exchange volatility, or high financing costs, which could hinder our ability to meet these investment commitments within the agreed timeframe on commercially reasonable terms, or at all. A substantial and unjustified failure to comply with such investment commitments could ultimately lead to the forfeiture of our exploitation rights, with the provincial executive branch declaring the expiration of the concession, which could materially impact our ability to grow our business. See “Item 5.A Operating Results—Factors Affecting our Results of Operations—Contractual Obligations.”
The Argentine and Mexican Economies
Our financial condition and results of operations depend to a significant extent on macroeconomic and political conditions prevailing from time to time in Argentina, and to a lesser extent in Mexico.
The general performance of the Argentine economy affects the demand for energy, while inflation, fluctuations in currency exchange rates and social stability affect our costs and our margins. Inflation primarily affects our business by increasing operating costs in Argentine Pesos.
The following table sets forth key economic indicators in Argentina during the periods indicated:
2025 2024 2023 2022 2021
Real GDP (% change) (1) 4.4 (1.3 ) (1.9 ) 6.0 10.4
Nominal GDP (in millions of AR$)(1) 847,622,873 583,909,615 192,408,248 82,810,045 46,219,084
CPI variation (in %) (1) 31.5 117.8 211.4 94.8 50.9
Nominal Exchange Rate (in AR$./US$ at period end) (2) 1,459.4 1,032.5 808.5 177.1 102.8
(1) Source: INDEC. Preliminary and provisional data are shown as stated by INDEC.
(2) Source: Data in accordance with foreign exchange rate set forth in Communication “A” 3,500 issued by the BCRA.
For more information on these macroeconomic and political conditions, see “Item 3—Key Information—Risk Factors—Detailed Risk Factors—Risks Related to the Argentine and Mexican Economic and Regulatory Environments.”
123
Table of Contents
Foreign Exchange Rates
The following tables show, for the periods indicated, certain information regarding the exchange rates of the Argentine Peso to the U.S. Dollar, expressed in nominal Argentine Pesos per U.S. Dollar (according to Communication “A” 3500 of the BCRA). See “Item 10—Additional Information—Exchange Controls.”
Average(1) End of Period
Year Ended December 31, 2021 95.2 102.8
Year Ended December 31, 2022 130.6 177.1
Year Ended December 31, 2023 295.2 808.5
Year Ended December 31, 2024 916.3 1,032.5
Year Ended December 31, 2025 1,262.4 1,459.4
Month Ended September 30, 2025 1,399.9 1,366.6
Month Ended October 31, 2025 1,432.0 1,443.0
Month Ended November 30, 2025 1,427.6 1,450.8
Month Ended December 31, 2025 1,447.8 1,459.4
Month Ended January 31, 2026 1,449.3 1,447.7
Month Ended February 28, 2026 1,409.7 1,409.0
Month Ended March 31, 2026 1,396.3 1,382.8
(1) Yearly data reflect average of month-end rates. Monthly data reflect average of day-end rates.
Source: Data in accordance with foreign exchange rate set forth in Communication “A” 3,500 issued by the BCRA.
The following tables show, for the periods indicated, certain information regarding the exchange rates of the Mexican Peso to the U.S. Dollar, expressed in nominal Mexican Pesos per U.S. Dollar (price to settle obligations published by Banco de México).
Average(1) End of Period
Year Ended December 31, 2020 21.5 19.9
Year Ended December 31, 2021 20.3 20.6
Year Ended December 31, 2022 20.1 19.4
Year Ended December 31, 2023 17.7 17.0
Year Ended December 31, 2024 18.3 20.3
Year Ended December 31, 2025 19.2 17.9
Month Ended September 30, 2025 18.5 18.4
Month Ended October 31, 2025 18.4 18.4
Month Ended November 30, 2025 18.4 18.3
Month Ended December 31, 2025 18.0 18.0
Month Ended January 31, 2026 17.7 17.2
Month Ended February 28, 2026 17.2 17.2
Month Ended March 31, 2026 17.7 18.0
(1) Reflects average of day-end rates.
Sources: Banco de México
Most of our sales are directly denominated in U.S. Dollars or indexed to the U.S. Dollar. We collect a significant portion of our revenues in Argentine Pesos pursuant to prices which are indexed to the U.S. Dollar, mainly revenues resulting from the sale of crude oil and natural gas, which sales are invoiced in U.S. Dollars using the U.S. Dollar/Argentine Peso exchange rate as of the date of issuance of the invoice payable within a 15- to 57-day payment period. However, our invoices are subject to adjustment to the prevailing U.S. Dollar/Argentine Peso exchange rate in effect as of the date of payment. Any significant increase in the Argentine Peso price as a result of a decline in the Argentine Peso/U.S. Dollar exchange rate could lead to decreased sales volumes as a result of increases in the effective price in Argentine Pesos paid by our customers for natural gas and crude oil. We are exposed to the risk that purchasers of our natural gas and crude oil may be unable to pay amounts owed to us following a material devaluation of the Argentine Peso.
124
Table of Contents
Argentine Foreign Exchange Regulations
Since September 1, 2019, successive Argentine governments have reinstated foreign exchange controls with the purpose of strengthening the normal functioning of the economy, fostering a prudent administration of the exchange market, reducing the volatility of financial variables, and containing the impact of the variations of financial flows on the real economy. Following the change in administration in December 2023, President Javier Milei’s government adopted a new macroeconomic program focused on eliminating the fiscal deficit, significantly reducing monetary issuance and deregulating broad segments of the economy. Within this context, several measures have been implemented to gradually ease certain foreign exchange restrictions. While the current administration has publicly stated its intention to fully lift foreign exchange controls, as of the date hereof no comprehensive regulatory framework, official roadmap or binding timeline for the complete removal of such controls has been formally announced, and foreign exchange regulations remain in force. See “Item 10—Additional Information and Exchange Controls.”
The value of the Argentine Peso compared to other currencies depends, among other factors, on the level of international reserves held by the BCRA, which have also shown significant fluctuations in recent years, as well as on the fiscal and monetary policies adopted by the Argentine government. The Argentine macroeconomic environment, in which we operate, was affected by the continuous depreciation of the Argentine Peso, which in turn had a direct impact on our financial and economic position. See “Item 3—Key Information—Risk Factors—Detailed Risks Related to our Company—We are exposed to foreign exchange risks related to our operations in Argentina and Mexico.”
Policy and Regulatory Developments in Argentina and Mexico
The Argentine and Mexican oil and gas industry have been subject to reforms during the past five years and there can be no assurance that future reforms or reversal of existing ones will not have an adverse impact on our revenues and results of operations. Our business is, to a large extent, dependent upon regulatory conditions prevailing in the countries in which we operate and our results of operations may be materially and adversely affected by regulatory changes in these countries. Additionally, the regulatory burden on the oil and gas industry increases the cost of doing business in the industry and consequently affects profitability.
For more information regarding policy and regulatory developments relating to the oil and gas industry in Argentina, see “Item 4—Information on the Company—Industry and Regulatory Overview—Argentina’s Oil and Gas Industry Overview.” For more information regarding policy and regulatory developments relating to the oil and gas industry in Mexico, see “Item 4—Information on the Company—Industry and Regulatory Overview—Mexico’s Oil and Gas Industry Overview.”
Seasonality
Although there is some historical seasonality to the prices that we are paid for our production, seasonality does not play a significant role in our ability to conduct our operations, including drilling and completion activities as planned in our budgets. For example, seasonal demand behavior during winter and autumn affects the prices that we receive for our production. However, the impact of such seasonality has historically not been material.
Deferred Income Tax
Under IFRS Accounting Standards, the difference between the book value of property, plant and equipment (measured in U.S. Dollars, our functional currency) and the tax basis of such property, plant and equipment (which tax basis is expressed in Argentine Pesos or Mexican Pesos, as applicable, and may not be re-valued due to foreign exchange fluctuations under applicable tax laws) is a temporary difference to be considered in the calculation of deferred income tax. For more information, see Note 2.4.14 to our Audited Financial Statements. In addition to property, plant and equipment, we recognize deferred tax assets with respect to the temporary difference between the accounting and tax basis of the well plugging and abandonment provisions relating to our oil and gas properties.
On December 29, 2017, the Argentine government enacted Law No. 27,430 which introduced several changes to the Argentine income tax regime as well as to other federal taxes. Pursuant to Law No. 27,430 the income tax rate for Argentine companies would be gradually reduced from 35% to 30% commencing on tax periods initiated after January 1, 2018 and through December 31, 2019, and to 25% commencing on tax periods initiated after January 1, 2020
125
Table of Contents
(an additional income tax withholding on actual or presumed dividend distributions to Argentine resident individuals or to foreign resident shareholders was also enacted at a 7% and 13% rate, respectively, so that an aggregate 35% tax burden is completed). On December 23, 2019, the Solidarity Law was published in the Argentine Official Gazette, providing –among many other federal tax aspects, including the creation of the so-called “PAIS Tax”- the suspension of the application of the 25% corporate tax rate for one tax period. Pursuant to further clarifications unofficially made by the Argentine tax authorities, the 25% corporate tax rate (coupled with the 13% income tax withholding on actual or presumed dividend distributions of profits) would be applicable as of tax periods initiated after January 1, 2021. Through Law No. 27,630, the income tax rate applicable to Argentine companies is again modified, establishing a progressive tax rate system with a rate of 25% to 35% based on the accumulated net taxable income and a 7% withholding applicable to any distribution of dividends or profits made by such entities to individuals’ resident in Argentina and to beneficiaries abroad, regardless of the tax period in which such dividends or profits are made available to the shareholders. These amendments are applicable to tax periods beginning on or after January 1, 2021. Despite these changes, there are many transactions and calculations for which the ultimate tax determination is still uncertain. We recognize liabilities for potential tax claims based on estimates of whether additional taxes will be due in the future. For more information, see Note 2.4.14 to our Audited Financial Statements.
Depreciation, Depletion and Amortization
IFRS Accounting Standards requires us to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues and expenses, among other line times, relating to our oil and gas properties. Actual results could differ from such estimates. Depreciation, depletion and amortization rates can fluctuate as a result of development costs, acquisitions, impairments, as well as changes in proved reserves or proved developed reserves. For more information, see Notes 2.4.2 and 2.4.4 of our Audited Financial Statements.
Oil and Gas Market Conditions
The oil and gas industry is cyclical, and commodity prices are highly volatile. Following the oil price crash during the COVID-19 pandemic, global oil prices returned to pre-pandemic levels by early 2022. In the first half of 2022, Brent crude oil prices increased, driven by the ongoing conflict between Russia and Ukraine, which led to sanctions from several countries, including the United States and European Union member states. These sanctions raised concerns about global energy supply, as Russia was the world’s third-largest oil producer and the second-largest oil exporter. As a result, Brent crude oil prices rose from US$77.8/bbl on December 31, 2021, to US$85.9/bbl on December 31, 2022, with an annual average of US$99.0/bbl, representing a 39% increase year-over-year.
During 2023, oil demand growth was lower than expected due to weaker economic growth and rising interest rates, leading to a decline in Brent crude oil prices from US$85.9/bbl on December 31, 2022, to US$77.0/bbl on December 31, 2023, with an annual average of US$82.3/bbl, a 17% decrease year-over-year.
During 2024, oil demand growth remained below expectations. Combined with stronger non-OPEC supply growth, this contributed to a further decline in Brent crude oil prices from US$77.0/bbl on December 31, 2023, to US$74.6/bbl on December 31, 2024, with an annual average of US$79.8/bbl, representing a 3% decrease year-over-year.
During 2025, oil demand growth decelerated compared to 2024. Combined with stronger supply growth, this has contributed to a further decline in Brent crude oil prices from US$74.6/bbl on December 31, 2024 to US$ 60.9/bbl on December 31, 2025, with an average of US$ 68.2/bbl for the period, representing a 15% decrease compared to 2024.
It is likely that commodity prices will continue to fluctuate due to global supply and demand, inventory supply levels, weather conditions, geopolitical and other factors. Additionally, the oil and gas industry is subject to a number of operational trends, some of which affect the basins where we operate. Oil and gas companies are increasingly utilizing new techniques to lower drilling costs and increase efficiency of operations.
The operating results and cash flows of our business are susceptible to risks related to the volatility of international oil prices. Due to regulatory, economic and government policy factors, oil prices in Argentina in the past have lagged behind the prevailing prices in the international market. Furthermore, Argentina’s government has imposed export duties and other restrictions on exports in the past that have prevented companies from benefiting
126
Table of Contents
from the full increase in international oil prices. During 2022, the average annual Brent crude oil price stood at US$99.0/bbl, and our average realization price was US$72.2/bbl, 27% below the average annual Brent crude oil price and 22% below export parity for Medanito oil price, which stood at US$92.7/bbl. During 2023, the average annual Brent crude oil price stood at US$82.3/bbl, and our average realization price was US$66.7/bbl, 19% below the average annual Brent crude oil price and 7% below export parity for Medanito oil price, which stood at US$72.0/bbl. During 2024, the difference between our average realized price and export parity for Medanito oil narrowed to 2%. Subsequently, by year-end of 2025, this difference was reduced to zero.
The price of natural gas in Argentina has been regulated by a series of government measures intended to ensure domestic supply at affordable prices for end consumers. Therefore, gas producers can elect to sell natural gas to distribution companies in the regulated market at prices established by the relevant authorities. During the year ended December 31, 2025, we sold 13.7 million MMBtu to the regulated internal market under Plan GasAr. Alternatively, gas producers can also (or only) sell their surplus gas production on the deregulated market, either in Argentina or potentially, and subject to meeting certain requirements, through exports. Historically, gas prices in the regulated market have lagged the deregulated and regional market prices. However, this has been reverted since 2023. During the year ended December 31, 2025, our average realization price in the regulated market (i.e., Plan GasAr) was US$2.5/MMBtu and our average realization price in the domestic deregulated market (i.e., sales to industrial clients) was US$1.0/MMBtu.
The following table highlights the quarterly average price trends for crude oil and natural gas in U.S. Dollars for the periods presented:
2025 2024 2023 2022 2021 2020 2019 2018
Q4 Q3 Q2 Q1
Average Brent Crude Oil Price (per bbl)(1) 63.1 68.1 66.8 74.9 79.8 82.3 99.0 71.0 43.2 43.2 71.7
Average Medanito Crude Oil Price (per bbl)(2) 56.2 62.2 61.4 68.5 68.4 60.8 67.1 53.1 40.6 54.0 65.0
Average Natural Gas Price (per MMBtu)(3) 2.6 3.9 3.7 2.8 3.2 3.4 3.2 2.9 2.3 3.4 4.4
(1) Source: Bloomberg.
(2) Light oil extracted from the Neuquina Basin. Source: Argentine Secretariat of Energy.
(3) Source: Argentine Secretariat of Energy and US$/AR$ exchange rate according to Communication “A” 3,500 of the BCRA.
A sustained drop in oil, natural gas and NGL prices may not only decrease our revenues but may also reduce the amount of oil, natural gas and NGL that we can produce economically and therefore potentially lower our oil, natural gas and NGL reserve quantities.
Results of Operations
The following discussion relates to certain financial and operating data for the periods and years indicated. You should read this discussion in conjunction with our Audited Financial Statements and the accompanying notes thereto. We measure our performance by our profit for the year or for the period, gross profit and operating profit and use these metrics to make decisions about allocating resources and to evaluate our financial performance.
127
Table of Contents
Year ended December 31, 2025 compared to year ended December 31, 2024
Year ended December 31, 2025 Year ended December 31, 2024
(in thousands of US$ except per share data) (% of revenues) (in thousands of US$ except per share data) (% of revenues)
Revenue from contract with customers 2,474,197 100 % 1,647,768 100 %
Cost of sales (1,299,167 ) (53 )% (830,025 ) (50 )%
Gross profit 1,175,030 47 % 817,743 50 %
Selling expenses (218,072 ) (9 )% (140,334 ) (9 )%
General and administrative expenses (147,709 ) (6 )% (108,954 ) (7 )%
Exploration expenses (578 ) (0 )% (138 ) (0 )%
Other operating income 512,793 21 % 54,127 3 %
Other operating expenses (32,382 ) (1 )% (1,261 ) 0 %
Impairment of long- lived assets (38,252 ) (2 )% 4,207 0 %
Operating profit 1,250,830 51 % 625,390 38 %
Income (loss) from investments in associates (5,214 ) (0 )% — 0 %
Interest income 10,594 0 % 4,535 0 %
Interest expense (163,356 ) (7 )% (62,499 ) (4 )%
Other financial income (expense) (88,183 ) (4 )% 23,401 1 %
Financial income (expense), net (240,945 ) (10 )% (34,563 ) (2 )%
Profit before income tax 1,004,671 41 % 590,827 36 %
Current income tax (expense) (241,657 ) (10 )% (426,288 ) (26 )%
Deferred income tax (expense) benefit (43,951 ) (2 )% 312,982 19 %
Income tax (expense) (285,608 ) (12 )% (113,306 ) (7 )%
Profit for the year, net 719,063 29 % 477,521 29 %
Other comprehensive income
Other comprehensive income that shall not be reclassified to profit or (loss) in subsequent periods
Profit (loss) from actuarial remediation related to employee benefits 36 0 % (10,200 ) (1 )%
Deferred income tax benefit (expense) (13 ) (0 )% 3,570 0 %
Other comprehensive income for the year 23 0 % (6,630 ) 0 %
Total comprehensive profit for the year 719,086 29 % 470,891 29 %
Earnings per share
Basic (US$ per share): 7.015 N/A 4.979 N/A
Diluted (US$ per share): 6.707 N/A 4.633 N/A
128
Table of Contents
Revenue from contracts with customers
The detail of our revenues from contracts with customers is the following:
Types of goods For the year ended December 31, 2025 For the year ended December 31, 2024
Revenues from crude oil sales 2,384,912 1,573,069
Revenues from natural gas sales 83,104 71,756
Revenues from NGL sales 6,181 2,943
Revenue from contracts with customers 2,474,197 1,647,768
Total revenue from contracts with customers increased to US$2,474.2 million during the year ended December 31, 2025, compared to US$1,647.8 million during the year ended December 31, 2024. Such increase was mainly driven by higher oil and gas production, boosted by the La Amarga Chica Acquisition, partially offset by lower oil and gas realized prices. Total revenue from contracts with customers for the year ended December 31, 2025, was impacted by sea freight selling expenses incurred by VEISA, our subsidiary that started operations during the fourth quarter of 2025, and transferred to customers through pricing. Sea freight selling expenses were US$29.8 million for the year ended December 31, 2025.
Revenues from crude oil increased to US$2,384.9 million during the year ended December 31, 2025, compared to US$1,573.1 million during the year ended December 31, 2024, which represented 96% and 95% of our total revenue from contracts with customers, respectively. Such increase was primarily driven by an increase in oil sales volumes of 66%, boosted by the La Amarga Chica Acquisition, partially offset a decrease in realized crude oil price of 9% year-over-year. Revenues from crude oil for the year ended December 31, 2025 were impacted by sea freight selling expenses incurred by VEISA and transferred to customers through pricing. Sea freight selling expenses were US$29.8 million for the year ended December 31, 2025.
Total volume of crude oil sold increased to 36.3 MMbbl during the year ended December 31, 2025, compared to 21.9 MMbbl during the year ended December 31, 2024. Such increase was mainly driven by a 66% oil production growth year-over-year, which in turn resulted from (i) 50 shale oil wells tied in in our operated blocks during the year ended December 31, 2025 and (ii) additional production incorporated through the La Amarga Chica Acquisition (La Amarga Chica currently has 149 net wells on production).
Average realized crude oil sales prices decreased to US$62.9/bbl during the year ended December 31, 2025, compared to US$69.2/bbl during the year ended December 31, 2024. Such decrease was mainly driven by a 15% decrease in Brent price.
In 2025, 22.2 MMbbl of crude oil, or 61% of total crude oil volumes, were sold to export markets for a total revenue of US$1,494.5 million, which, net of Sea freight selling expenses of US$29.8 million and export duties of US$73.7 million, amounted to US$1,391.0 million. In 2024, 10.6 MMbbl of crude oil, or 49% of total crude oil volumes, were sold to export markets for a total revenue of US$807.5 million, which, net of export duties of US$59.6 million, amounted to US$748.0 million. Combining sales to international and domestic markets, 98% of our sales were conducted at export parity prices, an increase from 68% in 2024.
Revenues from natural gas increased to US$83.1 million during the year ended December 31, 2025, compared to US$71.8 million during the year ended December 31, 2024, which represented 3% and 4% of our total revenue from contracts with customers, respectively. Such increase was primarily driven by a 41% increase in natural gas sales volumes and partially offset by an 18% decrease in realized natural gas prices.
Total volume of natural gas sold increased to 5.5 MMboe during the year ended December 31, 2025, compared to 3.9 MMboe during the year ended December 31, 2024.
129
Table of Contents
The average realized natural gas sales price was US$2.6/MMBtu during the year ended December 31, 2025, an 18% decrease compared to US$3.2/MMBtu during the year ended December 31, 2024. Such decrease was mainly driven by lower prices, both in the domestic and international markets.
Revenues from NGL increased to US$6.2 million during the year ended December 31, 2025, compared to US$2.9 million during the year ended December 31, 2024, which represented less than 1% of our total revenue from contracts with customers during both periods.
During the year ended December 31, 2025, 99.7% of our revenue was generated by our oil and gas properties in Argentina, compared to 99% during the year ended December 31, 2024.
Cost of Sales
For the year ended December 31, 2025 For the year ended December 31, 2024
(in thousands of US$)
Operating costs (186,945 ) (116,526 )
Crude oil stock fluctuation 1,046 1,720
Royalties and others (345,349 ) (243,950 )
Depreciation, depletion and amortization (738,903 ) (437,699 )
Other non-cash costs related to the transfer of conventional assets (29,016 ) (33,570 )
Cost of sales (1,299,167 ) (830,025 )
Cost of sales increased to US$1,299.2 million during the year ended December 31, 2025, compared to US$830.0 million during the year ended December 31, 2024. Total cost of sales included operating costs, fluctuations in the inventory of crude oil, royalties and others, depreciation, depletion and amortization, and other non-cash costs related to the transfer of conventional assets.
Operating costs increased to US$186.9 million during the year ended December 31, 2025, compared to US$116.5 million during the year ended December 31, 2024, which represented 14% of our total cost of sales during both periods. Operating costs per produced barrel decreased to US$4.4/boe during the year ended December 31, 2025, from US$4.6/boe during the year ended December 31, 2024, reflecting the benefits of a larger scale and continuous focus on efficiency.
The crude oil stock fluctuation decreased to a gain of US$1.0 million during the year ended December 31, 2025, compared to a gain of US$1.7 million during the year ended December 31, 2024. The gain during 2025 was driven by the increase in crude oil stock at the end of the period.
Royalties and others increased to US$345.3 million during the year ended December 31, 2025, compared to US$244.0 million during the year ended December 31, 2024, which represented 27% and 29% of our total cost of sales, respectively. This increase was primarily driven by the above-mentioned increase in crude oil production.
Depreciation, depletion and amortization increased to US$738.9 million during the year ended December 31, 2025, compared to US$437.7 million during the year ended December 31, 2024, which represented 57% and 53% of our total cost of sales, respectively. This increased was primarily driven by higher capital expenditures and total production in 2025 compared to 2024.
Other non-cash costs related to the transfer of conventional assets was US$29.0 million during the year ended December 31, 2025, compared to US$33.6 million during the year ended December 31, 2024, which represented 2% and 4% of our total cost of sales, respectively. These non-cash were mainly related to the Conventional Assets Transaction.
130
Table of Contents
Gross Profit
Gross profit increased to US$1,175.0 million during the year ended December 31, 2025, compared to US$817.7 million during the year ended December 31, 2024, which represented 47% and 50% of our total revenue from contracts with customers, respectively.
Selling Expenses
Selling expenses were US$218.1 million during the year ended December 31, 2025, compared to US$140.3 million during the year ended December 31, 2024, which represented 9% of our total revenue from contracts with customers during both periods. Selling expenses for the year ended December 31, 2025, include US$29.8 million of Sea freight selling expenses, which were incurred by VEISA (and an equivalent amount was collected as revenues by VEISA from its customers), our subsidiary that started operations during the fourth quarter of 2025.
Excluding Sea freight selling expenses, selling expenses per produced barrel decreased to US$4.5/boe during the year ended December 31, 2025, from US$5.5/boe during the year ended December 31, 2024, mainly driven by the elimination of trucking as of the end of Q1 2025, as the Oldelval Duplicar pipeline became online.
General and Administrative Expenses
General and administrative expenses increased to US$147.7 million during the year ended December 31, 2025, compared to US$109.0 million during the year ended December 31, 2024, which represented 6% and 7% of our total revenue from contracts with customers, respectively. This increase was primarily driven by an increase of share-based payments, fees and compensation for services and an increase of salaries and payroll taxes.
Exploration Expenses
Exploration expenses increased to US$0.58 million during the year ended December 31, 2025, compared to US$0.14 million during the year ended December 31, 2024.
Other Operating Income
Other operating income increased to US$512.8 million during the year ended December 31, 2025, compared to US$54.1 million during the year ended December 31, 2024. This increase was mainly driven by the gain from the La Amarga Chica Acquisition.
Other Operating Expenses
Other operating expenses increased to a loss of US$32.4 million during the year ended December 31, 2025, compared to a loss of US$1.3 million during the year ended December 31, 2024.
Impairment of Long-lived Assets
Impairment of long-lived assets resulted in a loss of US$38.3 million during the year ended December 31, 2025, related to the submission of a notice of irrevocable relinquishment of the CS-01 block to the SENER, which is pending confirmation to the date of issuance of this annual report. Impairment of long-lived assets resulted in a gain of US$4.2 million during the year ended December 31, 2024.
Operating Profit
Operating profit increased to US$1,250.8 million during the year ended December 31, 2025, compared to US$625.4 million during the year ended December 31, 2024, which represented 51% and 38% of our total revenue from contracts with customers, respectively.
131
Table of Contents
Income (loss) from Investments in Associates
Income (loss) from Investments in Associates was US$5.2 million during the year ended December 31, 2025, compared to nil during the year ended December 31, 2024. This loss was mainly related to investments in VMOS. See “Item 4—Information on the Company—Business Overview—Vaca Muerta Oleoducto Sur Project.”
Interest Income
Interest income increased to US$10.6 million during the year ended December 31, 2025, compared to US$4.5 million during the year ended December 31, 2024.
Interest Expense
As of December 31, 2025, the interest income (expense) increased to US$163.4 million from US$62.5 million for the year ended December 31, 2024. This increase was primarily due to higher financial interests.
Other Financial Income (Expense)
Other financial results totaled a loss of US$88.2 million for the year ended December 31, 2025, compared to a gain of US$23.4 million for the year ended December 31, 2024. This change was primarily driven by accrued interest related to taxes and discount of assets and liabilities at present value.
Profit Before Income Taxes
Profit before income taxes totaled US$1,004.7 million during the year ended December 31, 2025, compared to US$590.8 million during the year ended December 31, 2024.
Income Tax expense
Our income tax expenses totaled US$285.6 million during the year ended December 31, 2025, compared to US$113.3 million during the year ended December 31, 2024. This change was primarily driven by higher profit for the year.
Profit for the year, net
During the year ended December 31, 2025, the profit for the year net totaled US$719.1 million, compared to US$477.5 million during year ended December 31, 2024.
132
Table of Contents
Year ended December 31, 2024 compared to year ended December 31, 2023
Year ended December 31, 2024 Year ended December 31, 2023
(in thousands of US$ except per share data) (% of revenues) (in thousands of US$ except per share data) (% of revenues)
Revenue from contract with customers 1,647,768 100 % 1,168,774 100 %
Cost of sales (830,025 ) (50 )% (577,525 ) (49 )%
Gross profit 817,743 50 % 591,249 51 %
Selling expenses (140,334 ) (9 )% (68,792 ) (6 )%
General and administrative expenses (108,954 ) (7 )% (70,483 ) (6 )%
Exploration expenses (138 ) (0 )% (16 ) (0 )%
Other operating income 54,127 3 % 203,812 17 %
Other operating expenses (1,261 ) 0 % 302 0 %
Reversal (impairment) of long- lived assets 4,207 0 % (24,585 ) (2 )%
Operating profit 625,390 38 % 631,487 54 %
Interest income 4,535 0 % 1,235 0 %
Interest expense (62,499 ) (4 )% (21,879 ) (2 )%
Other financial income (expense) 23,401 1 % (65,484 ) (6 )%
Financial income (expense), net (34,563 ) (2 )% (86,128 ) (7 )%
Profit before income tax 590,827 36 % 545,359 47 %
Current income tax (expense) (426,288 ) (26 )% (16,393 ) (1 )%
Deferred income tax (expense) 312,982 19 % (132,011 ) (11 )%
Income tax (expense) (113,306 ) (7 )% (148,404 ) (13 )%
Profit for the year, net 477,521 29 % 396,955 34 %
Other comprehensive income
Other comprehensive income that shall not be reclassified to profit or (loss) in subsequent periods
(Loss) profit from actuarial remediation related to employee benefits (10,200 ) (1 )% 6,565 1 %
Deferred income tax benefit (expense) 3,570 0 % (2,298 ) (0 )%
Other comprehensive income for the year (6,630 ) 0 % 4,267 0 %
Total comprehensive profit for the year 470,891 29 % 401,222 34 %
Earnings per share
Basic (In US$ per share): 4.979 N/A 4.237 N/A
Diluted (In US$ per share): 4.633 N/A 4.000 N/A
133
Table of Contents
Revenue from contracts with customers
The detail of our revenues from contracts with customers is the following:
Types of goods For the year ended December 31, 2024 For the year ended December 31, 2023
Revenues from crude oil sales 1,573,069 1,097,316
Revenues from natural gas sales 71,756 67,290
Revenues from NGL sales 2,943 4,168
Revenue from contracts with customers 1,647,768 1,168,774
Total revenue from contracts with customers increased to US$1,647.8 million during the year ended December 31, 2024, compared to US$1,168.8 million during the year ended December 31, 2023. Such increase was mainly driven by oil production growth.
Revenues from crude oil increased to US$1,573.1 million during the year ended December 31, 2024, compared to US$1,097.3 million during the year ended December 31, 2023, which represented 96% and 94% of our total revenue from contracts with customers, respectively. Such increase was primarily driven by an increase in oil sales volumes of 39% and an increase in realized crude oil price of 4% year-over-year.
Total volume of crude oil sold increased to 21.9 MMbbl during the year ended December 31, 2024, compared to 15.7 MMbbl during the year ended December 31, 2023, mainly driven by a 36% production growth year-over-year, which in turn resulted from 50 shale oil wells tied-in during 2024, increasing the total number of cumulative shale wells tied-in to 149 at year-end. This activity boosted oil production, which increased 39% year-over-year during 2024.
Average realized crude oil sales prices increased to US$69.2/bbl during the year ended December 31, 2024, compared to US$66.7/bbl during the year ended December 31, 2023. Such increase was mainly driven by a 12% increase in domestic prices (including 37% of domestic volumes sold at export parity prices, up from 9% during 2023) and partially offset by a decrease in export prices of 2%.
In 2024, 10.6 MMbbl of crude oil, or 49% of total crude oil volumes, were sold to export markets for a total revenue of US$807.5 million, which, net of export duties of US$59.5 million, amounted to US$748.0 million. In 2023, 8.2 MMbbl of crude oil, or 52% of total crude oil volumes, were sold to export markets for a total revenue of US$642.2 million, which, net of export duties of US$48.4 million, amounted to US$593.8 million. Combining sales to international and domestic markets, 68% of our sales were conducted at export parity prices, an increase from 57% in 2023.
Revenues from natural gas increased to US$71.8 million during the year ended December 31, 2024, compared to US$67.3 million during the year ended December 31, 2023, which represented 4% and 6% of our total revenue from contracts with customers, respectively. Such increase was primarily driven by a 17% increase in natural gas sales volumes and partially offset by a 9% decrease in realized natural gas prices.
Total volume of natural gas sold increased to 3.9 MMboe during the year ended December 31, 2024, compared to 3.3 MMboe during the year ended December 31, 2023.
The average realized natural gas sales price was US$3.2/MMBtu during the year ended December 31, 2024, a 9% decrease compared to US$3.5/MMBtu during the year ended December 31, 2023. Such decrease was mainly driven by lower prices to industrial customers at US$1.9/MMBtu in 2024, compared to US$2.3/MMBtu in 2023.
Revenues from NGL decreased to US$2.9 million during the year ended December 31, 2024, compared to US$4.2 million during the year ended December 31, 2023, which represented less than 1% of our total revenue from contracts with customers during both periods.
134
Table of Contents
During the year ended December 31, 2024, 99% of our revenue was generated by our oil and gas properties in Argentina, as well as during the year ended December 31, 2023.
Cost of Sales
For the year ended December 31, 2024 For the year ended December 31, 2023
(in thousands of US$)
Operating costs (116,526 ) (94,685 )
Crude oil stock fluctuation 1,720 (2,058 )
Depreciation, depletion and amortization (437,699 ) (276,430 )
Royalties and others (243,950 ) (176,813 )
Other non-cash costs related to the transfer of conventional assets (33,570 ) (27,539 )
Cost of sales (830,025 ) (577,525 )
Cost of sales increased to US$830.0 million during the year ended December 31, 2024, compared to US$577.5 million during the year ended December 31, 2023. Total cost of sales included operating costs, fluctuations in the inventory of crude oil, depreciation, depletion and amortization, royalties and others, and other non-cash costs related to the transfer of conventional assets.
Operating costs increased to US$116.5 million during the year ended December 31, 2024, compared to US$94.7 million during the year ended December 31, 2023, which represented 14% and 16% of our total cost of sales, respectively. Operating costs per produced barrel decreased to US$4.6/boe during the year ended December 31, 2024, from US$5.1/boe during the year ended December 31, 2023. This decrease was primarily driven by the dilution of fixed costs due to production growth and partially offset by inflation in U.S. Dollars impacting Argentine Peso-denominated expenditures.
The crude oil stock fluctuation increased to a gain of US$1.7 million during the year ended December 31, 2024, compared to a loss of US$2.1 million during the year ended December 31, 2023. This was primarily due to the increase in crude oil stock at the end of the period.
Depreciation, depletion and amortization increased to US$437.7 million during the year ended December 31, 2024, compared to US$276.4 million during the year ended December 31, 2023, which represented 53% and 48% of our total cost of sales, respectively. This increase was primarily driven by higher capital expenditures and total production in 2024 compared to 2023.
Royalties and others increased to US$244.0 million during the year ended December 31, 2024, compared to US$176.8 million during the year ended December 31, 2023, which represented 29% and 31% of our total cost of sales, respectively. This increase was primarily driven by the above-mentioned increase in crude oil production and prices.
Other non-cash costs related to the transfer of conventional assets was US$33.6 million during the year ended December 31, 2024, compared to US$27.5 million during the year ended December 31, 2023, which represented 4% and 5% of our total cost of sales, respectively. These non-cash were mainly related to the Conventional Assets Transaction.
Gross Profit
Gross profit increased to US$817.7 million during the year ended December 31, 2024, compared to US$591.2 million during the year ended December 31, 2023, which represented 50% and 51% of our total revenue from contracts with customers, respectively.
Selling Expenses
Selling expenses increased to US$140.3 million during the year ended December 31, 2024, compared to US$68.8 million during the year ended December 31, 2023, which represented 9% and 6% of our total revenue from contracts with customers, respectively. This increase was primarily driven by an increase of 167% in transport costs due to a higher amount of crude oil volumes transported by trucks in 2024 compared to 2023.
135
Table of Contents
General and Administrative Expenses
General and administrative expenses increased to US$109.0 million during the year ended December 31, 2024, compared to US$70.5 million during the year ended December 31, 2023, which represented 7% and 6% of our total revenue from contracts with customers, respectively. This increase was primarily driven by a 61% increase in salaries and payroll taxes, a 51% increase in share-based payments and a 414% increase in taxes, rates and contributions, in all cases during 2024 compared to 2023.
Exploration Expenses
Exploration expenses increased to US$0.14 million during the year ended December 31, 2024, compared to US$0.02 million during the year ended December 31, 2023.
Other Operating Income
Other operating income decreased to US$54.1 million during the year ended December 31, 2024, compared to US$203.8 million during the year ended December 31, 2023. This decrease was mainly driven by (i) no gains related to the Conventional Assets Transaction in 2024, compared to US$89.7 million in 2023, (ii) US$36.0 million of lower gains from the Exports Increase Program, and (iii) US$24.4 million lower gains related to the gain from the Farm-out Agreements with Trafigura.
Other Operating Expenses
Other operating expenses resulted in a loss of US$1.3 million during the year ended December 31, 2024, compared to a gain of US$0.3 million during the year ended December 31, 2023.
Impairment of Long-lived Assets
Impairment of long-lived assets resulted in a gain of US$4.2 million during the year ended December 31, 2024, related to the concessions CS-01 in Mexico, compared to a loss of US$24.6 million during the year ended December 31, 2023.
Operating Profit
Operating profit decreased to US$625.4 million during the year ended December 31, 2024, compared to US$631.5 million during the year ended December 31, 2023, which represented 38% and 54% of our total revenue from contracts with customers, respectively.
Interest Income
Interest income increased to US$4.5 million during the year ended December 31, 2024, compared to US$1.2 million during the year ended December 31, 2023.
Interest Expense
As of December 31, 2024, the interest expense increased to US$62.5 million from US$21.9 million for the year ended December 31, 2023. This increase was primarily due to new debt issuances at a higher interest rate.
Other Financial Results
Other financial results totaled a gain of US$23.4 million for the year ended December 31, 2024, compared to a loss of US$65.5 million for the year ended December 31, 2023. This change was primarily driven by the remeasurement of borrowings arising from financial liabilities incurred in Argentina, adjusted by the reference stabilization ratio (“UVA”), recorded in 2023, and a 156% decrease in other financial results, partially offset by a 102% increase in net foreign exchange rate changes.
136
Table of Contents
Profit Before Income Taxes
Profit before income taxes totaled US$590.8 million during the year ended December 31, 2024, compared to US$545.4 million during the year ended December 31, 2023.
Income Tax expense
Our income tax expenses totaled US$113.3 million during the year ended December 31, 2024, compared to US$148.4 million during the year ended December 31, 2023. This change was primarily driven by a net effect of (i) an increase in current income tax expenses from US$16.4 million in 2023 to US$426.3 million in 2024, and (ii) a decrease in deferred income tax, from a an expense of US$132.0 million in 2023 to a gain of US$312.9 million in 2024, mainly driven by the deferred tax inflation adjustment from our main subsidiary Vista Argentina, and the depreciation of the Argentine Peso with respect to the U.S. Dollar affecting the Company’s tax deductions of nonmonetary assets.
Profit for the year, net
During the year ended December 31, 2024, the profit for the year, net totaled US$477.5 million, compared to US$397.0 million during year ended December 31, 2023.
137
Table of Contents
ITEM 5.B LIQUIDITY AND CAPITAL RESOURCES
Our financial condition and liquidity are and will continue to be influenced by a variety of factors, including:
• changes in oil, natural gas and liquid gas prices and our ability to generate cash flows from our operations;
• our capital expenditure requirements; and
• the level of our outstanding indebtedness and the interest we are obligated to pay on this indebtedness.
On August 15, 2017, we completed our US$650 million initial global offering of 65,000,000 series A shares and 65,000,000 warrants exercisable for such series A shares (“Warrants”), generating net proceeds to us, after offering expenses, of US$640 million. The series A shares and warrants issued pursuant to our initial global offering are listed on the Mexican Stock Exchange.
As of the date of this annual report, there are no outstanding warrants as a result of the automatic exercise of all outstanding warrants on a cashless basis. See “Item 10—Additional Information—Memorandum and Articles of Association—Warrants.”
Concurrently with our initial global offering, Vista Sponsor Holdings, L.P. and the Executive Team purchased a total of 29,680,000 warrants exercisable for series A shares in a private placement (“Sponsor Warrants”), generating gross proceeds to us of US$14,840,000. The Sponsor Warrants were identical to and fungible with the Warrants. As of the date of this annual report, there are no outstanding Sponsor Warrants as a result of the automatic exercise of all outstanding warrants on a cashless basis. See “Item 10—Additional Information—Memorandum and Articles of Association—Warrants.”
On April 4, 2018, the date we consummated our acquisition of certain assets from Pampa and Pluspetrol Resources Corporation:
• we entered into a bridge loan agreement (“Bridge Loan”) with Citibank, N.A., Credit Suisse AG Cayman Islands Branch and Morgan Stanley Senior Funding, Inc. in an aggregate principal amount equal to US$260.0 million, maturing on February 11, 2019, bearing interest at a variable rate between 3.25% and 5%. The Bridge Loan was prepaid in full on or about July 19, 2018 with the proceeds of the Credit Agreement.
• approximately 31.29% of holders of series A shares exercised their redemption rights, as a result of which 20,340,685 series A shares were redeemed for an amount of US$204.6 million. The holders of remaining series A shares were capitalized net of the deferred offering expenses paid to the underwriters in our initial global offering for an amount of US$442.5 million, and
• we obtained from a private placement transaction a capital contribution of US$95,000,000 representing 9,500,000 series A shares that were paid in.
For more information on this acquisition, please see “Presentation of Information—The Initial Business Combination” in Vista’s annual report on Form 20-F filed with the SEC on April 30, 2020.
In July 2019, we completed a global offering consisting of a follow-on public offering in Mexico of our series A shares and an international public offering in the United States and other countries of our series A shares represented by American Depositary Shares on the NYSE for a total amount of 10,906,257 series A shares (including all over-allotment options). Our ADSs began trading on the NYSE on July 26, 2019, under the ticker symbol “VIST.” The gross proceeds of the global offering amounted to approximately US$101 million, before fees and expenses.
As of the date of this annual report, 3,215,454 shares became outstanding as the Warrants in their original terms have been exercised in full. See “Item 10—Additional Information—Memorandum and Articles of Association—Warrants.”
We believe that our working capital is sufficient for our present requirements.
138
Table of Contents
Indebtedness
As of December 31, 2025, we had a total outstanding indebtedness of US$3,154.1 million.
The following table summarizes our outstanding debt obligations, including bilateral loan agreements, bond issuances, and other financing arrangements as of December 31, 2025. These obligations include secured and unsecured loans, corporate bonds issued under our Program, and other credit facilities, each with varying maturities, interest rates, and repayment structures.
Bond / Bank loan Nominal amount Outstanding Interest Rate Maturity Amortization
(in millions of US$)
Series XII 100.80 87.23 5.85% 8/27/2031 Fifteen semi-annual installments from August, 2024 until maturity date
Series XVI 104.30 104.15 0.00% 6/6/2026 Bullet
Series XVII 39.00 39.06 0.00% 12/6/2026 Bullet
Series XVIII 118.50 118.32 0.00% 3/3/2027 Bullet
Series XIX 16.50 16.43 1.00% 3/3/2028 Bullet
Series XXI 70.00 69.90 0.99% 8/11/2028 Bullet
Series XXII 14.70 14.73 5.00% 6/5/2026 Bullet
Series XXIII 92.20 73.46 6.50% 3/6/2027 Bullet
Series XXIV 46.60 46.94 8.00% 5/2/2029 Four semi-annual installments from November, 2027, until maturity date
Series XXV 53.20 53.24 3.00% 7/8/2028 Bullet
Series XXVI 150.00 151.75 7.65% 10/10/2031 Three consecutive annual installments from October , 2029 until maturity date
Series XXVII(1) 600.00 597.95 7.63% 12/10/2035 Three consecutive annual installments from December, 2033 until maturity date
Series XXVIII 92.41 94.04 7.50% 3/7/2030 Bullet
Series XXIX 900.00(2) 899.34 8.50% 6/10/2033 Three consecutive annual installments from June 10, 2031 until maturity date
Series XXX 73.26 73.80 6.00% 4/15/2027 Bullet
Santander International 11.70 0.07(3) 1.80% 1/20/2026 Bullet
Santander International 43.50 0.08(3) 2.05% 7/2/2026 Bullet
Santander International 13.50 0.03(3) 2.45% 1/4/2027 Bullet
ConocoPhillips 25.00 25.73 SOFR + 2.1% 9/26/2026 Bullet
Citibank 25.00 25.16 5.00% 4/27/2026 Bullet
Citibank 20.00 20.11 5.00% 4/27/2026 Bullet
Citibank 40.00 40.14 5.00% 5/27/2027 Bullet
Citibank 10.00 10.04 5.00% 5/27/2027 Bullet
BBVA 40.00 40.01 3.50% 4/28/2026 Bullet
ICBC 100.00 101.10 SOFR Adjusted + 4% 7/1/2030 Fifteen consecutive quarterly installments from January, 2027 until maturity date.
Galicia 100.00 100.93 8.80% 7/3/2030 Fifteen consecutive quarterly installments from January, 2027 until maturity date.
139
Table of Contents
Bond / Bank loan Nominal amount Outstanding Interest Rate Maturity Amortization
(in millions of US$)
ICBC 50.00 50.25 SOFR Adjusted + 4% 7/3/2030 Fifteen consecutive quarterly installments from January, 2027 until maturity date.
ITAU & Santander 250.00 246.93 SOFR + 4.5% 7/3/2030 Fifteen consecutive quarterly installments from January, 2027 until maturity date.
Galicia 30.00 31.84 7.60% 7/15/2026 Bullet
Galicia 20.00 20.91 8.00% 1/16/2026 Bullet
Galicia 30.00 0.41 6.25% 1/9/2026 Bullet
Total 3,154.1
(1) On December 10, 2024, Vista Argentina issued US$600 million aggregate principal amount of 7.625% senior notes due 2035 (“2035 Notes”) under the Program. The offering of the 2035 Notes was conducted as a private offering to qualified institutional buyers in accordance with Rule 144A of the Securities Act and outside the United States to non-U.S. persons in accordance with under Regulation S of the Securities Act.
(2) On June 10, 2025, Vista Argentina issued US$500 million aggregate principal amount of the 8.500% senior notes due 2033 (the “2033 Notes”) under the Program. The offering of the 2033 Notes was conducted as a private offering to qualified institutional buyers in accordance with Rule 144A of the Securities Act and outside the United States to non-U.S. persons in accordance with under Regulation S of the Securities Act. On December 10, 2025, Vista Argentina issued an additional US$400 million aggregate principal amount of the 2033 Notes under the Program, priced at a yield of 8.25%.
(3) As of December 31, 2025, it includes U.S.$20.4 million of collateralized capital. The carrying amount corresponds to interest.
On April 8, 2026, Vista Argentina issued US$500,000,000 in aggregate principal amount of its 2038 Notes. The 2038 Notes were issued by Vista Argentina, Vista’s main subsidiary. The offering of the 2038 Notes was conducted in the United States and other foreign jurisdictions pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933, as amended, under the global program for the issuance of simple non-convertible debt securities (obligaciones negociables simples no convertibles en acciones) approved by the Shareholders’ Meetings of Vista Argentina held on May 7, 2019, May 7, 2024, October 29, 2024 and February 2, 2026. The 2038 Notes have an average weighted life of eleven years. Principal installments will be made on the tenth, eleventh and twelfth anniversaries of April 8, 2026.
In addition to the above, between December 31, 2025 and the date of this annual report, Vista also (i) incurred US$955 million, and (ii) repaid existing indebtedness facilities for US$341 million.
See “Item 4—Information on the Company—Recent Developments—Indebtedness.”
As of the date of this annual report, we are not in arrears in the payment of principal and interest, as applicable, on the aforementioned loans.
Other Contractual Obligations
As of December 31, 2025, the Company also has other commitments and contractual obligations as follows:
Payments due by period
Total Short Term (less than one year) Long Term (more than one year)
(in thousands of US$)
Employee Benefit Plan 11,915 1,333 10,582
Lease Agreements 174,988 60,208 114,780
Total 186,903 61,541 125,362
140
Table of Contents
Capital Expenditures
The amount and allocation of future capital expenditures will depend upon a number of factors, including our cash flows from operating, investing and financing activities and our ability to execute our drilling program. We periodically review our capital expenditure budget to assess changes in current and projected cash flows, debt requirements and other factors. If we are unable to obtain funds when needed or on acceptable terms, we may not be able to finance the capital expenditures necessary to maintain our production or proved reserves. We intend to fund our capital expenditures with cash generated from our operations, cash on hand, and debt and equity financing.
Because we operate a high percentage of our acreage, capital expenditure amounts (in addition to our capital expenditures committed under our concessions) and timing are largely discretionary and within our control. We determine our capital expenditures depending on a variety of factors, including, but not limited to, existing commitments under the concessions, the success of our drilling activities, prevailing and anticipated prices for oil and natural gas, the availability of necessary equipment, infrastructure and capital, the receipt and timing of required regulatory permits and approvals, seasonal conditions, drilling and acquisition costs and the level of participation by other working interest owners. A deferral of planned capital expenditures, particularly with respect to drilling and completing new wells, could result in a reduction in anticipated production and cash flows. Moreover, we may be required to unbook some portion of our current proved undeveloped reserves if such deferral of planned capital expenditures implies that we will be unable to develop such reserves within five years of their initial booking.
During the year ended December 31, 2025, we made total capital expenditures of US$1,330.5 million. During the year ended December 31, 2024, we made total capital expenditures of US$1,296.8 million. During the year ended December 31, 2023, we made total capital expenditures of US$734.3 million.
As part of the terms and conditions governing the concession agreements relating to our oil and gas properties in Argentina, we are committed to making capital investments for drilling and completing wells, performing well workovers and investing in facilities. We have estimated the amount of capital expenditures required to comply with our commitments under such concessions based on the historical costs of drilling and completing wells, performing well workovers and investing in facilities.
According to our best estimates, as of December 31, 2025, our remaining investment commitments include drilling and completing nine development wells, executing 28 workovers, and abandoning 21 wells in Entre Lomas, 25 de Mayo–Medanito SE, and Jagüel de los Machos.
Pursuant to the Conventional Assets Transaction agreement, Tango has assumed all past investment commitments, along with the associated costs, taxes, and royalties related to the CAT Exploitation Concessions.
Capital expenditures related to these commitments amount to an estimated US$40 million. For more information on these investment commitments.
Cash Flows
The following table sets forth our cash flows for the periods indicated:
For the year ended December 31, 2025 For the year ended December 31, 2024 For the year ended December 31, 2023
Cash flows provided by (used in)
Operating activities 796,191 959,026 712,033
Investing activities (2,349,064 ) (1,051,876 ) (699,313 )
Financing activities 1,327,540 641,211 19,556
Net (decrease) increase in cash and cash equivalents (225,333 ) 548,361 32,276
The ability of our Argentine entities to purchase non-Argentine currency in Argentina and to transfer any funds in the form of dividends, loans or advances to any non-Argentine entities (including affiliates) is subject to certain foreign exchange restrictions, as further described in “Item 3—Key Information—Risk Factors—Detailed Risk Factors—Risks Related to the Argentine and Mexican Economic and Regulatory Environments—Current Argentine
141
Table of Contents
exchange controls and the implementation of further exchange controls could adversely affect our results of operations” and “Item 10—Additional Information—Exchange Controls—Specific Provisions For Income From The Foreign Exchange Market.”
Cash Flows Provided by Operating Activities
For the year ended December 31, 2025, net cash generated by operating activities was US$796.2 million, primarily driven by an operating profit of US$1,250.8 million.
For the year ended December 31, 2024, net cash generated by operating activities was US$959.0 million, primarily driven by an operating profit of US$625.4 million.
For the year ended December 31, 2023, net cash generated by operating activities was US$712.0 million, primarily driven by an operating profit of US$631.5 million.
Cash Flows Used in Investing Activities
For the year ended December 31, 2025, net cash used in investing activities was US$2,349.1 million, mainly due to payments of US$1,455.4 million for the acquisition of property, plant and equipment, and payments for business combination, net of cash acquired, of US$841.6 million related to the La Amarga Chica Acquisition.
For the year ended December 31, 2024, net cash used in investing activities was US$1,051.9 million, mainly due to payments of US$1,052.5 million for the acquisition of property, plant and equipment.
For the year ended December 31, 2023, net cash used in investing activities was US$699.3 million, mainly due to payments of US$688.4 million for the acquisition of property, plant and equipment.
Cash Flows Provided by (used in) Financing Activities
During the year ended December 31, 2025, cash used in financing activities was US$1,327.5. This was primarily due to new loans for US$2,838.2 million, which was partially offset by loan principal repayments of US$1,173.6 million, payment of borrowings’ interest of US$148.3 million and share repurchases for US$50.0 million.
During the year ended December 31, 2024, cash used in financing activities was US$641.2. This was primarily due to new loans for US$1,320.9 million, which was partially offset by loan principal repayments of US$470.4 million and share repurchases for US$99.8 million.
During the year ended December 31, 2023, cash used in financing activities was US$19.6. This was primarily due to new loans for US$318.2 million, which was partially offset by loan principal repayments of US$211.5 million.
Treasury Policies
Our internal policies relating to the Company’s treasury include that the board of directors is responsible for determining our financial strategy, comprising dividend policy, investment of our resources, cash flow and working capital strategies, mergers and acquisitions, debt and equity issuances, share repurchases, derivative strategies, asset purchases and leases, and the Company’s indebtedness, among others, subject in any case (where applicable) to the approval of our shareholders when required by law or in accordance with our by-laws.
ITEM 5.C RESEARCH AND DEVELOPMENTS, PATENTS AND LICENSES, ETC.
Not applicable.
ITEM 5.D TREND INFORMATION
See “Item 4—Information on the Company—Industry and Regulatory Overview.”
142
Table of Contents
In addition to the information set forth in this section, additional information about the trends affecting our business can be found in “Item 3—Key Information—Risk Factors—Detailed Risk Factors—Risks Related to Our Business and Industry.” You should also read our discussion of the risks and uncertainties that affect our business in “Item 3—Key Information—Risk Factors—Detailed Risk Factors—Risks Related to the Argentine and Mexican Economic and Regulatory Environments.”
ITEM 5.E CRITICAL ACCOUNTING ESTIMATES
Critical accounting policies are policies that require us to exercise judgment or involve a higher degree of complexity in the application of the accounting policies that currently affect our financial condition and results of operations. The accounting judgments and estimates we make in these contexts require us to calculate variables and make assumptions about matters that are highly uncertain. In each case, if we had made other estimates, or if changes in the estimates occur from period to period, our financial condition and results of operations could be materially affected.
See Note 3 to our Audited Financial Statements for a summary of the critical accounting judgments and estimates applicable to us. There are many other areas in which we use estimates about uncertain matters, but we believe the reasonably likely effect of changes or differences within critical accounting judgments and estimates would not have a material impact on our financial statements.