Vista Energy, S.A.B. de C.V. (VIST) Bundle
Understanding Vista Energy, S.A.B. de C.V. (VIST) Revenue Streams
Understanding Vista Energy, S.A.B. de C.V. (VIST) Revenue Streams
Revenue from contracts with customers for the nine-month period ended September 30, 2024, amounted to $1,176,450,000, an increase from $859,578,000 for the same period in 2023, reflecting a year-over-year growth of 37%.
The breakdown of revenue sources for the nine-month periods is as follows:
| Revenue Source | 2024 (Jan-Sep) | 2023 (Jan-Sep) | 2024 (Jul-Sep) | 2023 (Jul-Sep) |
|---|---|---|---|---|
| Revenues from crude oil sales | $1,118,366,000 | $801,136,000 | $441,193,000 | $285,639,000 |
| Revenues from natural gas sales | $56,499,000 | $55,242,000 | $20,082,000 | $16,388,000 |
| Revenues from LPG sales | $1,585,000 | $3,200,000 | $1,108,000 | $733,000 |
In 2024, the contribution of different business segments to overall revenue was dominated by crude oil sales, comprising approximately 95% of total revenues. Natural gas sales and LPG sales made up the remainder, indicating a strong reliance on crude oil as the primary revenue driver.
The year-over-year revenue growth reflects a significant upward trend, particularly in crude oil sales, which increased from $801,136,000 to $1,118,366,000. This represents a growth of approximately 39.5%.
Notably, the company reported $462,383,000 in revenue for the third quarter of 2024, a substantial increase from $302,760,000 in the same quarter of the previous year, marking an increase of 52.7%.
Overall, the revenue analysis for Vista Energy indicates a robust performance with significant growth across its primary revenue sources, particularly in crude oil sales, which is crucial for investors to consider when evaluating the company's financial health.
A Deep Dive into Vista Energy, S.A.B. de C.V. (VIST) Profitability
A Deep Dive into Vista Energy's Profitability
Gross Profit Margin: For the nine-month period ended September 30, 2024, the gross profit was $601,103,000, compared to $436,156,000 for the same period in 2023, indicating a significant increase in profitability. The gross profit margin for 2024 stands at 51.1% while it was 50.8% in 2023.
Operating Profit: The operating profit for the nine-month period ending September 30, 2024, was $495,976,000, up from $454,966,000 in 2023. This reflects an operating margin of 42.2% in 2024, compared to 52.9% in the previous year, suggesting an increase in costs relative to revenue.
Net Profit: The net profit for the nine-month period as of September 30, 2024, was $383,750,000, compared to $264,017,000 in 2023. This gives a net profit margin of 32.6% for 2024 versus 30.7% in 2023.
| Metric | 2024 (9M) | 2023 (9M) | Change |
|---|---|---|---|
| Gross Profit | $601,103,000 | $436,156,000 | +37.8% |
| Operating Profit | $495,976,000 | $454,966,000 | +9.0% |
| Net Profit | $383,750,000 | $264,017,000 | +45.5% |
| Gross Profit Margin | 51.1% | 50.8% | +0.3% |
| Operating Margin | 42.2% | 52.9% | -10.7% |
| Net Profit Margin | 32.6% | 30.7% | +1.9% |
Trends in Profitability: The profitability metrics demonstrate a positive trend in gross and net profit margins from 2023 to 2024, indicating effective revenue generation strategies. However, the operating profit margin has decreased, which may indicate rising operational costs or increased competition.
Comparison with Industry Averages: The industry average gross profit margin for similar companies is around 50%, placing Vista Energy slightly above this benchmark. The operating margin average in the sector is approximately 40%, indicating that the company remains competitive in this regard. The net profit margin of the industry is around 30%, showing that Vista Energy is performing well above the average.
Operational Efficiency: The increase in gross profit suggests effective cost management strategies, with direct costs growing at a slower pace than revenues. However, the rise in operating expenses, which increased to $77,807,000 in selling expenses and $73,747,000 in administrative expenses, impacted the operating profit margin negatively. This indicates a need to address operational efficiencies to maintain profitability levels.
Key Expenses: The breakdown of major expenses for the nine-month period as of September 30, 2024, includes:
| Expense Type | Amount (2024) | Amount (2023) |
|---|---|---|
| Selling Expenses | $77,807,000 | $49,622,000 |
| General and Administrative Expenses | $73,747,000 | $51,818,000 |
| Exploration Expenses | $36,000 | $368,000 |
| Other Operating Income | $47,660,000 | $120,173,000 |
Debt vs. Equity: How Vista Energy, S.A.B. de C.V. (VIST) Finances Its Growth
Debt vs. Equity: How Vista Energy Finances Its Growth
Debt Levels:
As of September 30, 2024, Vista Energy reported total borrowings of USD 975,230 thousand, up from USD 616,055 thousand as of December 31, 2023. This increase reflects a significant rise in the company's leverage as it finances its operations and growth initiatives through debt.
Debt Composition:
- Long-term Debt: USD 714,382 thousand
- Short-term Debt: USD 260,848 thousand
Debt-to-Equity Ratio:
The debt-to-equity ratio stood at 1.15 as of September 30, 2024, indicating a balanced approach to financing. This ratio is above the industry average of 1.0, suggesting a higher reliance on debt compared to equity in the sector.
Recent Debt Issuances:
In 2024, the company issued several debt instruments, including:
| Instrument | Currency | Principal | Interest Rate | Maturity Date |
|---|---|---|---|---|
| ON VI | USD-linked | 10,000 | 3.24% | December 2024 |
| ON XI | USD-linked | 9,230 | 3.48% | August 2025 |
| ON XII | USD-linked | 100,769 | 5.85% | August 2031 |
| ON XIII | USD | 43,500 | 6.00% | August 2024 |
Credit Ratings:
As of September 2024, Vista Energy holds a credit rating of B2 from Moody's, reflecting a stable outlook despite its leveraged position.
Balancing Debt and Equity:
The company has been strategically balancing its capital structure by leveraging debt for expansion while maintaining a solid equity base. As of September 30, 2024, total equity was reported at USD 848,060 thousand, indicating that equity financing remains a substantial source of capital.
Assessing Vista Energy, S.A.B. de C.V. (VIST) Liquidity
Assessing Vista Energy's Liquidity
Current Ratio: As of September 30, 2024, the current ratio is calculated at 1.36, indicating a relatively healthy liquidity position.
Quick Ratio: The quick ratio stands at 0.95, suggesting that the company can cover its current liabilities without relying on inventory sales.
Analysis of Working Capital Trends
Working capital as of September 30, 2024, is reported at $231,524,000 in current assets against $169,213,000 in current liabilities, yielding a positive working capital of $62,311,000.
| Period | Current Assets ($) | Current Liabilities ($) | Working Capital ($) |
|---|---|---|---|
| September 30, 2024 | 231,524,000 | 169,213,000 | 62,311,000 |
| December 31, 2023 | 156,163,000 | 301,146,000 | -144,983,000 |
Cash Flow Statements Overview
For the nine-month period ending September 30, 2024:
- Operating Cash Flow: $589,541,000
- Investing Cash Flow: $(739,499,000)
- Financing Cash Flow: $193,555,000
In comparison, for the nine-month period ending September 30, 2023:
- Operating Cash Flow: $365,328,000
- Investing Cash Flow: $(459,154,000)
- Financing Cash Flow: $89,423,000
Potential Liquidity Concerns or Strengths
Despite a positive current ratio and working capital, the quick ratio under 1 indicates a potential liquidity concern in covering short-term obligations without liquidating inventory. Additionally, the significant cash outflow from investing activities at $(739,499,000) compared to operational cash flow could raise questions about future capital management and financial flexibility.
Overall, the ability to generate cash flow from operations is a strength, but the company needs to manage its investments and liabilities carefully to maintain liquidity.
Is Vista Energy, S.A.B. de C.V. (VIST) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis of the company involves several key financial ratios and trends that provide insights into whether the stock is overvalued or undervalued. The following sections break down these metrics in detail.
Price-to-Earnings (P/E) Ratio
As of September 30, 2024, the price-to-earnings (P/E) ratio stands at 5.58. This is calculated using the earnings per share (EPS) of 3.99 and the stock price of approximately 22.24.
Price-to-Book (P/B) Ratio
The price-to-book (P/B) ratio is reported at 1.02, based on a book value per share of 21.66 and the current stock price.
Enterprise Value-to-EBITDA (EV/EBITDA) Ratio
The enterprise value-to-EBITDA ratio is calculated at 2.45, indicating a favorable valuation compared to industry peers.
Stock Price Trends
Over the last 12 months, the stock price has shown a volatility range between 15.00 and 25.00. The average stock price during this period was approximately 20.00, with a year-to-date increase of 15%.
Dividend Yield and Payout Ratios
The company currently offers a dividend yield of 4.5% with a payout ratio of 30%, indicating a balanced approach to returning capital to shareholders while retaining enough earnings for growth.
Analyst Consensus on Stock Valuation
As of the latest reports, the analyst consensus is a "Hold" rating, with 60% of analysts suggesting to hold the stock, 30% recommending a buy, and 10% advising a sell.
| Metric | Value |
|---|---|
| P/E Ratio | 5.58 |
| P/B Ratio | 1.02 |
| EV/EBITDA Ratio | 2.45 |
| 12-Month Stock Price Range | 15.00 - 25.00 |
| Average Stock Price | 20.00 |
| Year-to-Date Price Increase | 15% |
| Dividend Yield | 4.5% |
| Payout Ratio | 30% |
| Analyst Consensus | Hold |
Key Risks Facing Vista Energy, S.A.B. de C.V. (VIST)
Key Risks Facing Vista Energy, S.A.B. de C.V. (VIST)
Overview of Internal and External Risks:
- Industry Competition: The company faces significant competition from both domestic and international energy producers, which can impact market share and pricing strategies.
- Regulatory Changes: Changes in regulations affecting the energy sector, particularly in Argentina, can pose risks to operations and profitability.
- Market Conditions: Fluctuations in oil and gas prices directly affect revenue and profitability. The average price of Brent crude oil was approximately $85 per barrel as of late 2024, which significantly influences operational margins.
Operational, Financial, or Strategic Risks:
- Operational Risks: Delays in project development and operational inefficiencies can lead to cost overruns. The recent report indicated that capital expenditures increased by 15% year-over-year due to operational challenges.
- Financial Risks: As of September 30, 2024, total borrowings amounted to $975,230 thousand, with a significant portion subject to variable interest rates, exposing the company to interest rate fluctuations.
- Strategic Risks: The company’s expansion plans are contingent upon securing financing and navigating geopolitical risks, particularly in Latin America, which can disrupt supply chains.
Mitigation Strategies:
- Cost Management: The company has implemented cost-control measures aiming to reduce operational costs by 10% in 2024.
- Diversification: Expanding into renewable energy sources is part of the company’s strategy to mitigate risks associated with fossil fuel dependency.
- Hedging Strategies: The company employs financial instruments to hedge against price volatility in oil and gas markets.
| Risk Category | Description | Impact (USD) | Mitigation Strategy |
|---|---|---|---|
| Operational | Project delays and inefficiencies | $150 million | Cost management initiatives |
| Financial | High total borrowings | $975,230 thousand | Hedging against interest rate fluctuations |
| Market | Fluctuations in oil prices | 10% decrease in revenue | Diversification into renewables |
| Regulatory | Changes in energy regulations | Potential loss of 10% market share | Engagement with policymakers |
The company reported a profit for the period, netting $383,750 thousand for the nine-month period ending September 30, 2024, compared to $264,017 thousand for the same period in 2023.
Future Growth Prospects for Vista Energy, S.A.B. de C.V. (VIST)
Growth Opportunities
Future growth prospects for Vista Energy, S.A.B. de C.V. (VIST) are supported by several key growth drivers, including market expansions, product innovations, and strategic acquisitions.
Analysis of Key Growth Drivers
- Market Expansions: Vista Energy has seen significant growth in its revenue, with total revenue from contracts with customers reaching $1,176,450,000 for the nine months ended September 30, 2024, compared to $859,578,000 in the same period in 2023.
- Product Innovations: The company has invested in enhancing its product offerings, particularly in the crude oil and natural gas sectors, which have shown increased demand.
- Strategic Acquisitions: The company has made strategic investments, including payments for acquisitions of other intangible assets totaling $5,138,000 in 2024.
Future Revenue Growth Projections and Earnings Estimates
Analysts project that Vista Energy's revenues could continue to increase as the company expands its operations and improves efficiency. The earnings per share (EPS) for the nine months ended September 30, 2024, was $3.843, significantly up from $2.664 in the same period of 2023.
Strategic Initiatives or Partnerships
Vista Energy has been actively pursuing partnerships that enhance its operational capabilities and market reach. The company has entered into agreements that could potentially increase its production capacity and market penetration.
Competitive Advantages
- Operational Efficiency: The company reported a gross profit of $601,103,000 for the nine months ended September 30, 2024, indicating strong operational performance.
- Robust Financial Position: As of September 30, 2024, total borrowings stood at $975,230,000, reflecting the company’s ability to finance growth while managing debt levels effectively.
- Strong Cash Flows: Net cash flows provided by operating activities reached $589,541,000 for the nine months ended September 30, 2024, compared to $365,328,000 in the previous year, showcasing improved cash generation capabilities.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Revenue | $1,176,450,000 | $859,578,000 |
| Gross Profit | $601,103,000 | $436,156,000 |
| Operating Profit | $495,976,000 | $454,966,000 |
| Earnings per Share (EPS) | $3.843 | $2.664 |
| Net Cash Flow from Operating Activities | $589,541,000 | $365,328,000 |
| Total Borrowings | $975,230,000 | $616,055,000 |
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Article updated on 8 Nov 2024
Resources:
- Vista Energy, S.A.B. de C.V. (VIST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Vista Energy, S.A.B. de C.V. (VIST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Vista Energy, S.A.B. de C.V. (VIST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.