EX-1

EX-1 2 d364871dex1.htm EX-1 EX-1

Exhibit 1

LOGO

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated financial statements as of March 31, 2023 and

December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

TABLE OF CONTENTS


• Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the three-month periods ended March 31, 2023 and 2022			3

• Unaudited interim condensed consolidated statements of financial position as of March 31, 2023 and December 31, 2022			4

• Unaudited interim condensed consolidated statements of changes in equity for the three-month periods ended March 31, 2023 and 2022			5

• Unaudited interim condensed consolidated statements of cash flows for the three-month periods ended March 31, 2023 and 2022			7

• Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022			9

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars)


	Notes		Period from January 1, through March 31, 2023			Period from January 1, through March 31, 2022
Revenue from contracts with customers		4		303,213			207,920
Cost of sales:
Operating costs		5.1		(30,144	)		(30,839	)
Crude oil stock fluctuation		5.2		(4,722	)		2,655
Depreciation, depletion and amortization		12/13/14		(64,372	)		(46,822	)
Royalties				(34,995	)		(29,177	)
Other non-cash costs related to the transfer of conventional assets		1.2.1		(3,233	)		—

Gross profit				165,747			103,737

Selling expenses		6		(16,717	)		(12,566	)
General and administrative expenses		7		(17,011	)		(12,463	)
Exploration expenses		8		(222	)		(205	)
Other operating income		9.1		95,315			2,765
Other operating expenses		9.2		(963	)		(1,260	)

Operating profit				226,149			80,008

Interest income		10.1		287			16
Interest expense		10.2		(6,137	)		(8,232	)
Other financial income (expense)		10.3		(14,315	)		(28,949	)

Financial income (expense), net				(20,165	)		(37,165	)

Profit before income tax				205,984			42,843

Current income tax (expense)		15		(47,568	)		(26,559	)
Deferred income tax (expense)		15		(29,682	)		(750	)

Income tax (expense)				(77,250	)		(27,309	)

Profit for the period, net				128,734			15,534

Other comprehensive income
Other comprehensive income that shall not be reclassified to profit or loss in subsequent periods
- Gain (Loss) from actuarial remediation related to employee benefits		25		109			(129	)
- Deferred income tax (expense) benefit		15		(38	)		45

Other comprehensive income that shall not be reclassified to profit (loss) in subsequent periods, net of taxes				71			(84	)

Total comprehensive profit for the period				128,805			15,450

Earnings per share
Basic (in US Dollars per share)		11		1.431			0.175
Diluted (in US Dollars per share)		11		1.315			0.163

Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statements of financial position as of March 31, 2023 and December 31, 2022

(Amounts expressed in thousands of US Dollars)


	Notes		As of March 31, 2023			As of December 31, 2022
Assets
Noncurrent assets
Property, plant and equipment		12		1,582,192			1,606,339
Goodwill		13		22,703			28,288
Other intangible assets		13		6,694			6,792
Right-of-use assets		14		61,016			26,228
Investments in associates				6,975			6,443
Trade and other receivables		16		175,769			15,864
Deferred income tax assets				335			335

Total noncurrent assets				1,855,684			1,690,289

Current assets
Inventories		18		8,464			12,899
Trade and other receivables		16		144,594			90,406
Cash, bank balances and other short-term investments		19		350,242			244,385

Total current assets				503,300			347,690

Total assets				2,358,984			2,037,979

Equity and liabilities
Equity
Capital stock		20.1		517,874			517,873
Other equity instruments				32,144			32,144
Legal reserve				2,603			2,603
Share-based payments				35,928			40,744
Share repurchase reserve				49,465			49,465
Other accumulated comprehensive income (losses)				(8,623	)		(8,694	)
Accumulated profit (losses)				338,659			209,925

Total equity				968,050			844,060

Liabilities
Noncurrent liabilities
Deferred income tax liabilities				273,131			243,411
Lease liabilities		14		34,080			20,644
Provisions		21		29,315			31,668
Borrowings		17.1		560,321			477,601
Employee benefits		25		12,220			12,251

Total noncurrent liabilities				909,067			785,575

Current liabilities
Provisions		21		2,579			2,848
Lease liabilities		14		29,099			8,550
Borrowings		17.1		99,246			71,731
Salaries and payroll taxes		22		8,836			25,120
Income tax liability				91,374			58,770
Other taxes and royalties		23		17,602			20,312
Trade and other payables		24		233,131			221,013

Total current liabilities				481,867			408,344

Total liabilities				1,390,934			1,193,919

Total equity and liabilities				2,358,984			2,037,979

Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statement of changes in equity for the three-month period ended March 31, 2023

(Amounts expressed in thousands of US Dollars)


	Capital stock		Other equity instruments		Legal reserve		Share-based payments			Share repurchase reserve		Other accumulated comprehensive income (losses)			Accumulated profit (losses)		Total equity
Amounts as of December 31, 2022		517,873		32,144		2,603		40,744			49,465		(8,694	)		209,925		844,060

Profit for the period		—		—		—		—			—					128,734		128,734
Other comprehensive income for the period		—		—		—		—			—		71			—		71

Total comprehensive income		—		—		—		—			—		71			128,734		128,805

Share-based payments		1		—		—		(4,816	)⁽¹⁾		—		—			—		(4,815	)

Amounts as of March 31, 2023		517,874		32,144		2,603		35,928			49,465		(8,623	)		338,659		968,050

⁽¹⁾	Including 5,039 share-based payment expenses (Note 7), net of tax charges.

Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statement of changes in equity for the three-month period ended March 31, 2022

(Amounts expressed in thousands of US Dollars)


	Capital stock		Share-based payments			Other accumulated comprehensive income (losses)			Accumulated profit (losses)			Total equity
Amounts as of December 31, 2021		586,706		31,601			(5,976	)		(47,072	)		565,259

Profit for the period		—		—			—			15,534			15,534
Other comprehensive income for the period		—		—			(84	)		—			(84	)

Total comprehensive income		—		—			(84	)		15,534			15,450

Share-based payments		—		(227	)⁽¹⁾		—			—			(227	)

Amounts as of March 31, 2022		586,706		31,374			(6,060	)		(31,538	)		580,482

⁽¹⁾	Including 2,341 share-based payment expenses (Note 7), net of tax charges.

Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statements of cash flows for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars)


	Notes		Period from January 1, through March 31, 2023			Period from January 1, through March 31, 2022
Cash flows from operating activities:
Profit for the period, net				128,734			15,534
Adjustments to reconcile net cash flows
Items related to operating activities:
(Reversal of) allowance for expected credit losses		6		—			(36	)
Net changes in foreign exchange rate		10.3		(6,570	)		(6,696	)
Discount for well plugging and abandonment		10.3		499			652
Net (decrease) increase in provisions		9.2		(567	)		988
Interest expense on lease liabilities		10.3		388			547
Discount of assets and liabilities at present value		10.3		709			681
Share-based payments		7		5,039			2,341
Other non-cash costs related to the transfer of conventional assets		1.2.1		3,233			—
Employee benefits		25		153			104
Income tax expense		15		77,250			27,309
Items related to investing activities:
Depreciation and depletion		12/14		63,434			46,066
Amortization of intangible assets		13		938			756
Interest income		10.1		(287	)		(16	)
Gain from farmout agreement		9.1		(5,656	)		—
Changes in the fair value of financial assets		10.3		3,202			581
Gain related to the transfer of conventional assets		9.1 / 1.2.1		(89,659	)		—
Items related to financing activities:
Interest expense		10.2		6,137			8,232
Changes in the fair value of warrants		10.3		—			22,777
Amortized cost		10.3		364			533
Remeasurement in borrowings		10.3		13,690			8,679
Other financial results		10.3		2,033			—
Changes in working capital:
Trade and other receivables				(12,854	)		(4,818	)
Inventories		5.2		4,722			(2,655	)
Trade and other payables				4,082			2,551
Payments of employee benefits		25		(75	)		(57	)
Salaries and payroll taxes				(25,892	)		(11,031	)
Other taxes and royalties				(12,018	)		3,731
Provisions				(529	)		(741	)
Income tax payment				(1,737	)		(3,147	)

Net cash flows provided by operating activities				158,763			112,865

Cash flows from investing activities:
Payments for acquisitions of property, plant and equipment				(132,948	)		(78,190	)
Payments for the acquisition of AFBN assets ⁽¹⁾				(6,250	)		(90,000	)
Payments received from farmout agreement		9.1		6,250			—
Payments for acquisitions of other intangible assets		13		(840	)		(927	)
Payments for acquisitions of investments in associates				(532	)		(770	)
Proceeds from transfer of conventional assets		1.2.1		10,000			—
Interest received		10.1		287			16

Net cash flows (used in) investing activities				(124,033	)		(169,871	)

VISTA ENERGY, S.A.B. DE C.V.

Unaudited interim condensed consolidated statements of cash flows for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars)


	Notes		Period from January 1, through March 31, 2023			Period from January 1, through March 31, 2022
Cash flows from financing activities:
Proceeds from borrowings		17.2		135,000			32,670
Payment of borrowings cost		17.2		(728	)		(54	)
Payment of borrowings principal		17.2		(22,500	)		(62,552	)
Payment of borrowings interest		17.2		(7,877	)		(15,213	)
Payment of lease		14		(9,894	)		(2,676	)
Other financial results		10.3		(2,033	)		—

Net cash flow provided by (used in) financing activities				91,968			(47,825	)

Net increase (decrease) in cash and cash equivalents				126,698			(104,831	)
Cash and cash equivalents at beginning of period		19		241,956			311,217
Effect of exposure to changes in the foreign currency rate and other financial results of cash and cash equivalents				(20,989	)		(2,014	)
Net increase (decrease) in cash and cash equivalents				126,698			(104,831	)

Cash and cash equivalents at end of period		19		347,665			204,372

Significant transactions that generated no cash flows
Acquisition of property, plant and equipment through increase in trade and other payables				160,965			83,350
Changes in well plugging and abandonment with an impact in property, plant and equipment		12		(2,904	)		(2,743	)

⁽¹⁾	Related to acquisition of 50% operating working interest in the unconventional concessions of Aguada Federal and Bandurria Norte. (See Note 1.2.1 to the annual consolidated financial statements as of December 31, 2022).

Notes 1 through 30 are an integral part of these unaudited interim condensed consolidated financial statements.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 1. Group information

1.1 Company general information, structure and activities

Vista Energy, S.A.B. de C.V. (“VISTA”, the “Company” or the “Group”), formerly known as Vista Oil & Gas, S.A.B. de C.V., was organized as a variable-capital stock company on March 22, 2017, under the laws of the United Mexican States (“Mexico”). The Company adopted the public corporation or “Sociedad Anónima Bursátil de Capital Variable” (“S.A.B. de C.V.”) on July 28, 2017.

It is listed on the New York Stock Exchange (“NYSE”) under ticker symbol “VIST” as from July 26, 2019.

On April 26, 2022, Vista Oil & Gas, S.A.B. de C.V. changed the Company’s corporate name to “Vista Energy, S.A.B. de C.V.”.

Its main office is located in the City of Mexico, Mexico, at Pedregal 24, floor 4, Colonia Molino del Rey, Alcaldía Miguel Hidalgo, zip code 11040.

Through its subsidiaries, the Company engages in oil and gas exploration and production (upstream segment).

These unaudited interim condensed consolidated financial statements were approved for publication by the Board of Directors on April 25, 2023.

Other than mentioned in Note 1.2 there were no changes in the Group’s structure and activities as from the date of issuance of the annual consolidated financial statements as of December 31, 2022.

1.2 Significant transactions for the period

1.2.1 Agreement signed with Petrolera Aconcagua Energía S.A. (“Aconcagua”) related to conventional assets (“Transfer of conventional assets”)

On February 23, 2023, the Company approved the agreement signed by its subsidiary Vista Energy Argentina S.A.U. (“Vista Argentina”) with Aconcagua for the operations of the following concessions in the Neuquina Basin, Argentina (the “Transaction”): (i) the Entre Lomas upstream concession, located in the Province of Neuquén; (ii) the Entre Lomas, Jarilla Quemada, Charco del Palenque, Jagüel de los Machos and 25 de Mayo-Medanito S.E. upstream concessions, located in the Province of Río Negro (jointly, the “Exploitation Concessions”); (iii) the Entre Lomas and Jarilla Quemada gas transportation concession, located in the Province of Río Negro; and (iv) the 25 de Mayo-Medanito S.E. Crude oil transportation concession, located in the Province of Río Negro (jointly with the Exploitation Concessions, the “Concessions”).

The Transaction consists of a two-phased agreement. The first phase was effective as of March 1, 2023 (the “Effective Date”) and will end no later than February 28, 2027.

Under the terms of the Transaction, from the Effective Date, Aconcagua: (i) will pay to Vista 26,468 in cash (10,000 paid on the signing date, and 10,734 and 5,734 to be paid in March 2024 and 2025, respectively); (ii) will become operator of the Concessions; and (iii) will pay 100% of Vista’s share of the capex, operating cost, and any other costs associated to the operation of the Concessions, including royalties and taxes.

Vista Argentina will retain 40% of the Crude oil and Natural gas reserves and production, and 100% of liquified petroleum gas (“LPG”) reserves and production, from the Concessions, until the earliest of (i) February 28, 2027, or (ii) the date when Vista Argentina has received a cumulative production of 4 million barrels of Crude oil and 300 million m3 of Natural gas (the “Final Closing Date”). Aconcagua will keep 60% of the Crude oil and Natural gas production from the Concessions. Additionally, Vista Argentina will have the right to purchase up to Aconcagua’s 60% share of the Natural gas produced by the Concessions at a price of 1 USD/MMBtu until the Final Closing Date.

Vista Argentina and Aconcagua will work jointly with the Provinces of Río Negro and Neuquén to negotiate an extension of the exploitation and transportation concession titles governing the Concessions, as per the terms set forth in the applicable regulation in Argentina.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Vista Argentina will retain the right to explore and develop the Vaca Muerta formation in the Exploitation Concessions and seek to obtain one or more independent and separate unconventional concessions to develop such resources; and Vista Argentina will remain concession title holder of the Concessions until no later than the Final Closing Date, when the Concessions will be transferred to Aconcagua, on an “as is where is basis”, subject to Provincial approvals.

As a consequence of the Transaction, the Company received 10,000 in cash; and recognized in these unaudited interim condensed consolidated financial statements: (i) an accounts receivable for a total amount of 205,730 in “Trade and other receivables” under “Receivable related to the transfer of conventional assets” (Note 16); (ii) a disposal of 120,529 and 5,542 in “Property, plant and equipment” and “Goodwill”, respectively (Note 12 and 13); and (iii) a gain of 89,659 in “Other operating income” under “Gain from disposal of oil and gas properties” (Note 9.1).

As of March 31, 2023, the Company recognized 3,233 related to the amortization of the aforementioned accounts receivable, in the unaudited interim condensed statement of profit or loss under “Other non-cash costs related to the transfer of conventional assets”.

Note 2. Basis of preparation and significant accounting policies

2.1 Bases of preparation and presentation

The unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022, and for the three-month periods ended March 31, 2023 and 2022 were prepared in accordance with the International Accounting Standard (“IAS”) 34 – “Interim Financial Reporting”, issued by the International Accounting Standards Board (“IASB”). The Company prepared its interim financial statements on a condensed basis pursuant to IAS 34. Certain explanatory notes are included to describe the events and transactions that are relevant to understand the changes in the financial position as of March 31, 2023, and the results of operations for the three-month period ended March 31, 2023. Therefore, these interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read together with the Company’s annual consolidated financial statements as of December 31, 2022.

These unaudited interim condensed consolidated financial statements were prepared using the same accounting policies as used in preparing the Company’s consolidated financial statements as of December 31, 2022, except for the income tax expense that is recognized in each interim period based on the best estimate of the weighted average annual income tax rate expected for the full financial year.

They were prepared on a historical cost basis, except for certain financial assets and liabilities that were measured at fair value. The figures contained herein are stated in US Dollars (“USD”) and are rounded to the nearest thousand, unless otherwise stated.

2.2 New effective accounting standards, amendments and interpretations issued by the IASB adopted by the Company

The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective.

2.3 Basis of consolidation

These unaudited interim condensed consolidated financial statements contain the financial statements of the Company and its subsidiaries. Other than the transaction mentioned in Note 1.2 there were no changes in interest in Company subsidiaries during the three-month period ended March 31, 2023.

2.4 Summary of significant accounting policies

2.4.1 Impairment testing of goodwill and nonfinancial assets other than goodwill

Nonfinancial assets, including identifiable intangible assets, are tested for impairment at the lowest level in which there are separately identifiable cash flows largely independent of the cash flows of other groups of assets or Cash Generated Units (“CGUs”). To such end, oil and gas properties in Argentina were grouped into 3 (three) CGUs: (i) operated concessions of conventional oil and gas exploration and production; (ii) operated concessions of unconventional oil and gas exploration and production; and (iii) non-operating concessions of conventional oil and gas exploration and production. The Company also identified just 1 (one) CGU in Mexico: (i) operated concessions of conventional oil and gas exploration and production.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

The Company conducts its impairment test of nonfinancial assets when there is an indication that the carrying amount may be impaired. Moreover, Goodwill is tested every December. The Company bases the impairment test on the calculation of value in use and reviews the relationship between the recoverable amount and the carrying amount of its assets.

As of March 31, 2023, and December 31, 2022, the Company did not identify indications of impairment related with goodwill and nonfinancial assets other than goodwill.

2.5 Regulatory framework

A-	Argentina

2.5.1 Gas market

2.5.1.1 Argentine promotion plan to stimulate natural gas production: 2020-2024 supply and demand system (“Gas IV Plan”)

For the three-month periods ended March 31, 2023, and 2022, the Company received a net amount of 1,340 and 269, respectively.

As of March 31, 2023, and December 31, 2022, the receivables related to such plan stand at 2,560 and 3,772, respectively (see Note 16).

Other than mentioned above, there have been no significant changes in Argentina’s regulatory framework for the three-month period ended March 31, 2023 (see Note 2.5 to the annual consolidated financial statements as of December 31, 2022).

B-	Mexico

There have been no significant changes in Mexico’s regulatory framework during the three-month period ended March 31, 2023 (see Note 2.5 to the annual consolidated financial statements as of December 31, 2022).

Note 3. Segment information

The Chief Operating Decision Maker (the “Committee” or “CODM”) is in charge of allocating resources and assessing the performance of the operating segment. It supervises operating profit (loss) and the performance of the indicators related to its oil and gas properties on an aggregate basis to make decisions regarding the location of resources, negotiate with international suppliers and determine the method for managing contracts with customers.

The CODM considers as a single segment the exploration and production of Crude oil, Natural gas and LPG (including E&P commercial activities), through its own activities, subsidiaries and interests in joint operations and based on the nature of the business, customer portfolio and risks involved. The Company aggregated no segment as it has only one.

For the three-month periods ended March 31, 2023, and 2022, the Company generated 99% and 1% of its revenues related to assets located in Argentina and Mexico, respectively.

The accounting criteria used by the subsidiaries to measure profit or loss, assets and liabilities of the segments are consistent with those used in these unaudited interim condensed consolidated financial statements.

The following chart summarizes noncurrent assets per geographical area:


	As of March 31, 2023		As of December 31, 2022
Argentina		1,799,638		1,638,973
Mexico		56,046		51,316

Total noncurrent assets		1,855,684		1,690,289

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 4. Revenue from contracts with customers


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Goods sold		303,213		207,920

Total revenue from contracts with customers		303,213		207,920

Recognized at a point in time		303,213		207,920

4.1 Information broken down by revenue from contracts with customers


Type of products	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Revenues from Crude oil sales		279,958		193,629
Revenues from Natural gas sales		21,845		13,020
Revenues from LPG sales		1,410		1,271

Total revenue from contracts with customers		303,213		207,920


Distribution channels	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Exports from Crude oil		169,035		77,101
Refineries		110,923		116,528
Exports from Natural gas		12,700		2,590
Industries		5,949		2,501
Retail Natural gas distribution companies		1,726		1,985
Natural gas for electric power generation		1,470		5,944
LPG sales		1,410		1,271

Total revenue from contracts with customers		303,213		207,920

Note 5. Cost of sales

5.1 Operating costs


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Fees and compensation for services		16,746		14,500
Salaries and payroll taxes		4,941		5,058
Consumption of materials and spare parts		2,422		4,239
Easements and fees		1,790		3,378
Employee benefits		1,618		1,396
Transport		1,483		1,203
Other		1,144		1,065

Total operating costs		30,144		30,839

5.2 Crude oil stock fluctuation


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Crude oil stock at beginning of period (Note18)		4,722		5,222
Less: Crude oil stock at end of period (Note 18)		—		(7,877	)

Total Crude oil stock fluctuation		4,722		(2,655	)

Note 6. Selling expenses


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Transport		9,116		5,509
Taxes, rates and contributions		3,795		3,584
Tax on bank account transactions		2,241		1,960
Fees and compensation for services		1,565		1,549
(Reversal of) allowances for expected credit losses		—		(36	)

Total selling expenses		16,717		12,566

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 7. General and administrative expenses


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Salaries and payroll taxes		6,787		6,215
Share-based payments		5,039		2,341
Fees and compensation for services		2,516		2,074
Employee benefits		968		497
Institutional promotion and advertising		543		319
Taxes, rates and contributions		263		550
Other		895		467

Total general and administrative expenses		17,011		12,463

Note 8. Exploration expenses


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Geological and geophysical expenses		222		205

Total exploration expenses		222		205

Note 9. Other operating income and expenses

9.1 Other operating income


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Gain related to the transfer of conventional assets⁽¹⁾		89,659		—
Gain from farmout agreement ⁽²⁾		5,656		—
Other services charges ⁽³⁾		—		2,765

Total other operating income		95,315		2,765

⁽¹⁾	See Nota 1.2.1

⁽²⁾

For the three-month period ended March 31, 2023, including 6,250 of payments received by Trafigura, related to the farmout agreement celebrated on June 28, 2021 (“farmout agreement I”), net of disposals of oil and gas properties and goodwill for 551, and 43, respectively. See Note 12 and 13. (See Note 29.3.2.1 to the Company’s annual consolidated financial statements as of December 31, 2022).

⁽³⁾	Services not directly related to the Company’s main activity.

9.2 Other operating expenses


	Period from January 1, through March 31, 2023			Period from January 1, through March 31, 2022
Provision for environmental remediation ⁽¹⁾		(322	)		(697	)
Restructuring and reorganization expenses ⁽²⁾		(271	)		(272	)
Provision for materials and spare parts obsolescence ⁽¹⁾		879			(17	)
Provision for contingencies ⁽¹⁾		10			(274	)
Other charges		(1,259	)		—

Total other operating expenses		(963	)		(1,260	)

⁽¹⁾	These transactions did not generate cash flows.

⁽²⁾	The Company booked restructuring expenses including payments, fees and transaction costs related to the changes in the Group’s structure.

Note 10. Financial income (expense), net

10.1 Interest income


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Financial interest		287		16

Total interest income		287		16

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

10.2 Interest expense


	Period from January 1, through March 31, 2023			Period from January 1, through March 31, 2022
Borrowings interest (Note 17.2)		(6,137	)		(8,232	)

Total interest expense		(6,137	)		(8,232	)

10.3 Other financial income (expense)


	Period from January 1, through March 31, 2023			Period from January 1, through March 31, 2022
Amortized cost (Note 17.2)		(364	)		(533	)
Changes in the fair value of warrants		—			(22,777	)
Net changes in foreign exchange rate		6,570			6,696
Discount of assets and liabilities at present value		(709	)		(681	)
Changes in the fair value of financial assets		(3,202	)		(581	)
Interest expense on lease liabilities (Note 14)		(388	)		(547	)
Discount for well plugging and abandonment		(499	)		(652	)
Remeasurement in borrowings ⁽¹⁾		(13,690	)		(8,679	)
Other		(2,033	)		(1,195	)

Total other financial income (expense)		(14,315	)		(28,949	)

⁽¹⁾	Related to borrowings in purchasing value units (“UVA”, by Spanish acronym) adjusted by the benchmark stabilization coefficient (“CER”, by its Spanish acronym). See Note 17.2.

Note 11. Earnings per share

Basic

Basic earnings per share is calculated by dividing the Company’s profit by the weighted average number of ordinary shares outstanding during the period.

b)	Diluted

Diluted earnings per share is calculated by dividing the Company’s profit by the weighted average number of ordinary shares outstanding during the period, plus the weighted average of dilutive potential ordinary shares.

Potential ordinary shares will be considered dilutive when their conversion to ordinary shares may reduce earnings per share or increase losses per share. They will be considered antidilutive when their conversion to ordinary shares may result in an increase in earnings per share or a reduction in loss per share.

The calculation of diluted earnings per share does not involve a conversion; the exercise or other issue of shares that may have an antidilutive effect on loss per share, or when the exercise price is higher than the average price of ordinary shares during the period, no dilution effect is booked, as diluted earnings per share is equal to basic earnings per share.


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Profit for the period, net		128,734		15,534
Weighted average number of ordinary shares		89,937,525		88,813,607

Basic earnings per share		1.431		0.175


	Period from January 1, through March 31, 2023		Period from January 1, through March 31, 2022
Profit for the period, net		128,734		15,534
Weighted average number of ordinary shares		97,920,497		95,464,397

Diluted earnings per share		1.315		0.163

As of March 31, 2023, the Company holds 3,705,757 Series A shares to be used in the Long-Term Incentive Plan (“LTIP”), that, on the date of this unaudited interim condensed consolidated financial statements, are currently out of the money. Consequently, they are not included in the weighted average number of ordinary shares to calculate diluted earnings per share.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 12. Property, plant and equipment

The changes in property, plant and equipment for the three-month period ended March 31, 2023 are as follows:


	Land and buildings			Vehicles, machinery, facilities, computer hardware and furniture and fixtures			Oil and gas properties			Production wells and facilities			Works in progress			Materials and spare parts			Total
Cost
Amounts as of December 31, 2022		10,794			43,522			513,164			1,607,895			153,948			41,958			2,371,281
Additions		—			—			—			—			133,237			28,577			161,814
Transfers		599			980			—			112,401			(100,897	)		(13,083	)		—
Disposals		—			(2	)		(623	)⁽¹⁾		(2,904	)⁽²⁾		—			—			(3,529	)
Disposals related to the transfer of conventional assets ⁽³⁾		(1,694	)		(7,537	)		—			(292,020	)		(383	)		(12,749	)		(314,383	)

Amounts as of March 31, 2023		9,699			36,963			512,541			1,425,372			185,905			44,703			2,215,183

Accumulated depreciation
Amounts as of December 31, 2022		(300	)		(15,587	)		(67,947	)		(681,108	)		—			—			(764,942	)
Depreciation		(3	)		(1,242	)		(3,676	)		(57,056	)		—			—			(61,977	)
Disposals		—			2			72	⁽¹⁾		—			—			—			74
Disposals related to the transfer of conventional assets ⁽³⁾		71			5,259			—			188,524			—			—			193,854

Amounts as of March 31, 2023		(232	)		(11,568	)		(71,551	)		(549,640	)		—			—			(632,991	)

Net value
Amounts as of March 31, 2023		9,467			25,395			440,990			875,732			185,905			44,703			1,582,192

Amounts as of December 31, 2022		10,494			27,935			445,217			926,787			153,948			41,958			1,606,339

⁽¹⁾	See Note 9.1.

⁽²⁾	Related to the re-estimation of well plugging and abandonment. This transaction did not generate cash flows.

⁽³⁾	See Note 1.2.1.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 13. Goodwill and other intangible assets

Below are the changes in goodwill and other intangible assets for the three-month period ended March 31, 2023:


	Goodwill			Other intangible assets
Cost
Amounts as of December 31, 2022		28,288			18,246

Additions		—			840
Disposals		(43	)⁽¹⁾		—
Disposals related to the transfer of conventional assets ⁽²⁾		(5,542	)		(1,143	)

Amounts as of March 31, 2023		22,703			17,943

Accumulated amortization
Amounts as of December 31, 2022		—			(11,454	)
Amortization		—			(938	)
Disposals related to the transfer of conventional assets ⁽²⁾		—			1,143

Amounts as of March 31, 2023		—			(11,249	)

Net value
Amounts as of March 31, 2023		22,703			6,694

Amounts as of December 31, 2022		28,288			6,792

⁽¹⁾	See Note 9.1.

⁽²⁾	See Note 1.2.1.

Note 14. Right-of-use assets and lease liabilities

The carrying amount of the Company’s right-of-use assets and lease liabilities, as well as the changes for the three-month period ended March 31 2023, are detailed below:


	Right-of-use assets									Total lease liabilities
	Buildings			Plant and machinery			Total			Total lease liabilities
Amounts as of December 31, 2022		986			25,242			26,228			(29,194	)

Additions		—			41,850			41,850			(41,850	)
Depreciation ⁽¹⁾		(145	)		(6,917	)		(7,062	)		—
Payments		—			—			—			9,894
Interest expense ⁽²⁾		—			—			—			(2,029	)

Amounts as of March 31, 2023		841			60,175			61,016			(63,179	)

⁽¹⁾	Including the depreciation of drilling services capitalized as “Works in progress” for 5,605.

⁽²⁾	Including drilling agreements capitalized as “Works in progress” for 1,641.

Short-term and low-value lease agreements were recognized under “General and administrative expenses” in the statements of profit or loss and other comprehensive income for 16 and 38 for the three-month periods ended March 31, 2023 and 2022, respectively.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 15. Income tax

The most significant components of the income tax expense in the statements of profit or loss and other comprehensive income of these interim condensed consolidated financial statements are as follows:


	Period from January 1, through March 31, 2023			Period from January 1, through March 31, 2022
Income tax
Current income tax		(47,568	)		(26,559	)
Deferred income tax		(29,682	)		(750	)

Income tax (expense) disclosed in the statement of profit or loss		(77,250	)		(27,309	)

Deferred income tax charged to other comprehensive income		(38	)		45

Total income tax (expense)		(77,288	)		(27,264	)

For the three-month period ended March 31, 2023, the Company’s effective rate was 38%. The significant differences between the effective and statutory rate include (i) the application of the tax adjustment for inflation in Argentina; (ii) the depreciation of the Argentine peso (“ARS”) with respect to the USD affecting the Company’s tax deductions of nonmonetary assets; and (iii) the accumulative tax losses not recognized in the period. (See Note 31.1 to the annual consolidated financial statements as of December 31, 2022).

Note 16. Trade and other receivables


	As of March 31, 2023		As of December 31, 2022
Noncurrent
Other receivables:
Prepayments, tax receivables and other:
Midstream prepaid expenses ⁽¹⁾		16,378		—
Prepayments and other receivables		13,330		13,630
Value added tax (“VAT”)		750		940
Turnover tax		379		493

		30,837		15,063
Financial assets:
Receivables related to the transfer of conventional assets ⁽²⁾		144,249		—
Loans to employees		683		801

		144,932		801

Total noncurrent trade and other receivables		175,769		15,864

Current
Trade:
Oil and gas accounts receivable (net of allowance for expected credit losses)		32,147		38,978

		32,147		38,978
Other receivables:
Prepayments, tax credits and other:
VAT		29,492		22,939
Prepaid expenses		11,668		13,864
Income tax		4,949		2,921
Turnover tax		1,115		634

		47,224		40,358

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)


	As of March 31, 2023		As of December 31, 2022
Financial assets:
Receivables related to the transfer of conventional assets ⁽²⁾		58,248		—
Accounts receivable from third parties		2,642		2,172
Gas IV Plan (Note 2.5.1.1)		2,560		3,772
Receivables from joint operations		862		3,854
Advances to directors and loans to employees		450		444
LPG price stability program		343		574
Other		118		254

		65,223		11,070

Other receivables		112,447		51,428

Total current trade and other receivables		144,594		90,406

⁽¹⁾	Related to the disbursement made by the Company, on December 21, 2022, in connection with to the Duplicar Plus Project implemented by Oleoductos del Valle S.A. (“Oldelval”) (See Note 28.1 to the annual consolidated financial statements as of December 31, 2022).

⁽²⁾	Include 146,787 and 58,943 in noncurrent and current trade and other receivables, respectively, related to the accounts receivable recognized as a result of the Transaction mentioned in Note 1.2.1.

Due to the short-term nature of current trade and other receivables, it carrying amount is considered similar to its fair value. The fair values of noncurrent trade and other receivables do not differ significantly from it carrying amounts either.

As of March 31, 2023, in general, accounts receivable has a 17-day term for sales of oil and a 50-day term for sales of natural gas and LPG.

The Company sets up a provision for trade receivables when there is information showing that the debtor is facing severe financial difficulties and that there is no realistic probability of recovery, for example, when the debtor goes into liquidation or files for bankruptcy proceedings. Trade receivables that are derecognized are not subject to compliance activities. The Company recognized an allowance for expected credit losses of 100% against all trade receivables that are 90 days past due because based on its history these receivables are generally not recovered. As of March 31, 2023 and December 31, 2022 an allowance for expected credit losses was recorded in trade and other receivables for 196 and 231 respectively.

As of the date of these interim condensed consolidated financial statements, maximum exposure to credit risk is related to the carrying amount of each class of accounts receivable.

Note 17. Financial assets and liabilities

17.1 Borrowings


	As of March 31, 2023		As of December 31, 2022
Noncurrent
Borrowings		560,321		477,601

Total noncurrent		560,321		477,601

Current
Borrowings		99,246		71,731

Total current		99,246		71,731

Total Borrowings		659,567		549,332

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Below are the maturity dates of Company borrowings (excluding lease liabilities) and their exposure to interest rates:


	As of March 31, 2023		As of December 31, 2022
Fixed interest
Less than 1 year		75,704		48,588
From 1 to 2 years		162,300		154,895
From 2 to 5 years		312,624		232,279
Over 5 years		60,397		65,427

Total		611,025		501,189
Variable interest
Less than 1 year		23,542		23,143
From 1 to 2 years		—		—
From 2 to 5 years		25,000		25,000
Over 5 years		—		—

Total		48,542		48,143

Total Borrowings		659,567		549,332

See Note 17.4 for information on the fair value of the borrowings.

The carrying amount of borrowings as of March 31, 2023 and December 31, 2022 of the Company through its subsidiary Vista Argentina, is as follows:

Company

Execution date

Currency

Principal

Interest

Annual
rate

Maturity date

As of March
31, 2023

As of December
31, 2022

Banco Galicia, Banco Itaú Unibanco, Banco Santander Rio and Citibank NA

July, 2018

USD

150,000

Variable

LIBOR

+ 4.50%

July, 2023

46,185

69,121

150,000

Fixed

8.00%

Santander International

January, 2021

USD

11,700

Fixed

1.80%

January, 2026

⁽¹⁾

Santander International

July, 2021

USD

43,500

Fixed

2.05%

July, 2026

^(1) (2)

⁽¹⁾

Santander International

January, 2022

USD

13,500

Fixed

2.45%

January, 2027

⁽¹⁾⁽²⁾

⁽¹⁾

ConocoPhillips Petroleum Holding B.V.

January, 2022

USD

25,000

Variable

LIBOR

+ 2.00%

September, 2026

25,376

25,594

Total

71,680

94,890

⁽¹⁾	The carrying amount is related to interest, and the principal is collateralized.

⁽²⁾	See Note 29.

Moreover, Vista Argentina issued nonconvertible debt securities, under the name “Programa de Notas” approved by the National Securities Commission in Argentina (“CNV” by its Spanish acronym). The following chart shows the carrying amount of ON as of March 31, 2023 and December 31, 2022:


Company	Execution date	Currency	Principal			Interest		Annual rate			Maturity date	As of March 31, 2023		As of December 31, 2022
ON III	February, 2020	USD		50,000			Fixed		3.50	%	February, 2024		9,524		9,607
ON VI	December, 2020	USD		10,000			Fixed		3.24	%	December, 2024		9,976		9,968
ON VII	March, 2021	USD		42,371			Fixed		4.25	%	March, 2024		42,257		42,200
ON VIII	March, 2021	ARS		3,054,537	⁽¹⁾		Fixed		2.73	%	September, 2024		45,133		45,185

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Company

Execution
date

Currency

Principal

Interest

Annual
rate

Maturity date

As of March 31,
2023

As of December 31,
2022

ON X

June, 2021

ARS

3,104,063⁽¹⁾

Fixed

4.00%

March, 2025

40,717

40,765

ON XI

August, 2021

USD

9,230

Fixed

3.48%

August, 2025

9,216

9,214

ON XII

August, 2021

USD

100,769

Fixed

5.85%

August, 2031

100,999

102,504

ON XIII

June, 2022

USD

43,500

Fixed

6.00%

August, 2024

43,272

43,211

ON XIV

November, 2022

USD

40,511

Fixed

6.25%

November, 2025

37,060

36,408

ON XV

December, 2022

USD

13,500

Fixed

4.00%

January, 2025

13,429

13,413

ON XVI

December, 2022

USD

63,450

Fixed

0.00%

June, 2026

63,105

63,079

ON XVII

December, 2022

USD

39,118

Fixed

0.00%

December, 2026

38,901

38,888

ON XVIII

March, 2023

USD

118,542

Fixed

0.00%

March, 2027

117,915

—

ON XIX

March, 2023

USD

16,458

Fixed

1.00%

March, 2028

16,383

—

Total

587,887

454,442

Total Borrowings

659,567

549,332

⁽¹⁾	Amount in UVA, adjusted by CER (see Note 10.3).

Under the aforementioned program, Vista Argentina may list and issue debt securities in Argentina for a total principal up to 800,000 or its equivalent in other currencies at any time.

17.2 Changes in liabilities from financing activities

Changes in the borrowings were as follows:


	As of March 31, 2023			As of December 31, 2022
Amounts at beginning of year		549,332			610,973
Proceeds from borrowings ⁽¹⁾		135,000			228,614
Borrowings interest ⁽²⁾ (Note 10.2)		6,137			28,886
Payment of borrowings cost		(728	)		(1,670	)
Payment of borrowings interest		(7,877	)		(34,430	)
Payment of borrowings principal ⁽¹⁾		(22,500	)		(294,917	)
Amortized cost ⁽²⁾ (Note 10.3)		364			2,365
Remeasurement in borrowings ⁽²⁾ (Note 10.3)		13,690			52,817
Changes in foreign exchange rate ⁽²⁾		(13,851	)		(45,821	)
Other financial expense ⁽²⁾		—			2,515

Amounts at end of year		659,567			549,332

⁽¹⁾	As of December 31. 2022, borrowings received and principal payments include 99,826 related to the ON swapping mentioned in Note 18.1 to the annual consolidated financial statements as of December 31, 2022. These transactions did not generate cash flows.

⁽²⁾	These transactions did not generate cash flows.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

17.3 Financial instruments by category

The following chart includes the financial instruments broken down by category:


As of March 31, 2023	Financial assets / liabilities at amortized cost		Financial assets / liabilities FVTPL		Total financial assets / liabilities
Assets
Plan assets (Note 25)		393		5,782		6,175
Trade and other receivables (Note 16)		144,932		—		144,932

Total noncurrent financial assets		145,325		5,782		151,107

Cash, bank balances and other short-term investments (Note 19)		68,772		281,470		350,242
Trade and other receivables (Note 16)		97,370		—		97,370

Total current financial assets		166,142		281,470		447,612

Liabilities
Borrowings (Note 17.1)		560,321		—		560,321
Lease liabilities (Note 14)		34,080		—		34,080

Total noncurrent financial liabilities		594,401		—		594,401

Borrowings (Note 17.1)		99,246		—		99,246
Trade and other payables (Note 24)		233,131		—		233,131
Lease liabilities (Note 14)		29,099		—		29,099

Total current financial liabilities		361,476		—		361,476


As of December 31, 2022	Financial assets / liabilities at amortized cost		Financial assets / liabilities FVTPL		Total financial assets / liabilities
Assets
Plan assets (Note 25)		1,055		5,703		6,758
Trade and other receivables (Note 16)		801		—		801

Total noncurrent financial assets		1,856		5,703		7,559

Cash, bank balances and other short-term investments (Note 19)		41,516		202,869		244,385
Trade and other receivables (Note 16)		50,048		—		50,048

Total current financial assets		91,564		202,869		294,433

Liabilities
Borrowings (Note 17.1)		477,601		—		477,601
Lease liabilities (Note 14)		20,644		—		20,644

Total noncurrent financial liabilities		498,245		—		498,245

Borrowings (Note 17.1)		71,731		—		71,731
Trade and other payables (Note 24)		221,013		—		221,013
Lease liabilities (Note 14)		8,550		—		8,550

Total current financial liabilities		301,294		—		301,294

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Below are income, expenses, profit, or loss from each financial instrument:

For the three-month period ended March 31, 2023:


	Financial assets / liabilities at amortized cost			Financial assets / liabilities at FVTPL			Total financial assets / liabilities
Interest income (Note 10.1)		287			—			287
Interest expense (Note 10.2)		(6,137	)		—			(6,137	)
Amortized cost (Note 10.3)		(364	)		—			(364	)
Net changes in foreign exchange rate (Note 10.3)		6,570			—			6,570
Discount of assets and liabilities at present value (Note 10.3)		(709	)		—			(709	)
Changes in the fair value of financial assets (Note 10.3)		—			(3,202	)		(3,202	)
Interest expense on lease liabilities (Note 10.3)		(388	)		—			(388	)
Discount for well plugging and abandonment (Note 10.3)		(499	)		—			(499	)
Remeasurement in borrowings (Note 10.3)		(13,690	)		—			(13,690	)
Other (Note 10.3)		(2,033	)		—			(2,033	)

Total		(16,963	)		(3,202	)		(20,165	)

For the three-month period ended March 31, 2022:


	Financial assets/liabilities at amortized cost			Financial assets/liabilities at FVTPL			Total financial assets / liabilities
Interest income (Note 10.1)		16			—			16
Interest expense (Note 10.2)		(8,232	)		—			(8,232	)
Amortized cost (Note 10.3)		(533	)		—			(533	)
Changes in the fair value of warrants (Note 10.3)		—			(22,777	)		(22,777	)
Net changes in foreign exchange rate (Note 10.3)		6,696			—			6,696
Discount of assets and liabilities at present value (Note 10.3)		(681	)		—			(681	)
Changes in the fair value of financial assets (Note 10.3)		—			(581	)		(581	)
Interest expense on lease liabilities (Note 10.3)		(547	)		—			(547	)
Discount for well plugging and abandonment (Note 10.3)		(652	)		—			(652	)
Remeasurement in borrowings (Note 10.3)		(8,679	)		—			(8,679	)
Other (Note 10.3)		(1,195	)		—			(1,195	)

Total		(13,807	)		(23,358	)		(37,165	)

17.4 Fair value

This note includes information on the Company’s method for assessing the fair value of its financial assets and liabilities.

17.4.1 Fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis

The Company classifies the measurements at fair value of financial instruments using a fair value hierarchy, which shows the relevance of the variables applied to carry out these measurements. The fair value hierarchy has the following levels:

•

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

•

Level 2: data other than the quoted prices included in Level 1 that are observable for assets or liabilities, either directly (that is prices) or indirectly (that is derived from prices).

•

Level 3: data on the asset or liability that are based on information that cannot be observed in the market (that is, non-observable data).

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

The following chart shows the Company’s financial assets measured at fair value as of March 31, 2023 and December 31, 2022:


As of March 31, 2023	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss
Short-term investments		281,470		—		—		281,470
Plan assets		5,782		—		—		5,782

Total assets		287,252		—		—		287,252


As of December 31, 2022	Level 1		Level 2		Level 3		Total
Assets
Financial assets at fair value through profit or loss
Short-term investments		202,869		—		—		202,869
Plan assets		5,703		—		—		5,703

Total assets		208,572		—		—		208,572

The value of financial instruments traded in active markets is based on quoted market prices as of the date of these accompanying unaudited interim condensed consolidated financial statements. A market is considered active when quoted prices are available regularly through a stock exchange, a broker, a specific sector entity or regulatory agency, and these prices reflect regular and current market transactions between parties at arm’s length. The quoted market price used for financial assets held by the Company is the current offer price. These instruments are included in Level 1.

For financial instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. These valuation techniques maximize the use of observable market data, when available, and minimize the use of Company’s specific estimates. Should all significant variables used to establish the fair value of a financial instrument be observable, the instrument is included in Level 2.

Should one or more variables used in determining the fair value not be observable in the market, the financial instrument is included in Level 3.

There were no transfers between Level 1 and Level 2 from December 31, 2022, through March 31, 2023.

17.4.2 Fair value of financial assets and liabilities that are not measured at fair value (but require fair value disclosures)

Except for the information included in the following chart, the Company considers that the carrying amounts of financial assets and liabilities recognized in the interim condensed consolidated financial statements approximate to its fair values, as explained in the related notes.

As of March 31, 2023

Carrying amount

Fair value

Level

Liabilities

Borrowings

659,567

516,081

Total liabilities

659,567

516,081

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

17.5 Risk management objectives and policies concerning financial instruments

17.5.1 Financial risk factors

The Company’s activities are exposed to several financial risks: market risk (including exchange rate risk, interest rate risk and price risk), credit risk and liquidity risk.

Financial risk management is included in the Company’s global policies, and it adopts a comprehensive risk management policy focused on tracking risks affecting the entire Company. This strategy aims at striking a balance between profitability targets and risk exposure levels. Financial risks are derived from the financial instruments to which the Company is exposed during period-end or as of every period-end.

The Company’s financial department, controls financial risk by identifying, assessing and covering financial risks. The risk management systems and policies are reviewed regularly to show the changes in market conditions and the Company’s activities. The Company reviewed its exposure to financial risk factors and identified no significant changes in the risk analysis included in its annual consolidated financial statements as of December 31, 2022, except for the following:

17.5.1.1 Market risk

Exchange rate risk

The Company’s financial position and results of operations are sensitive to exchange rate changes between USD and ARS. As of March 31, 2023 and 2022, the Company performed foreign exchange currency hedge transactions, and the impact in the results of the period is recognized in “Other financial income (expense)”.

Most Company sales are denominated in USD, or the changes in sales follow the changes in USD listed price.

During the three-month period ended March 31, 2023 and for the year ended December 31, 2022, ARS depreciated by about 18% and 72%, respectively.

The following chart shows the sensitivity to a reasonable change in the exchange rates of ARS to USD while maintaining the remainder variables constant. Impact on profit before taxes is related to changes in the fair value of monetary assets and liabilities denominated in currencies other than the USD, the Company’s functional currency. The Company’s exposure to changes in foreign exchange rates for the remainder currencies is immaterial.


		As of March 31, 2023
Changes in interest rates in Argentine pesos		+/- 50 %
Effect on profit or loss		(74,065) / 74,065
Effect on equity		(74,065) / 74,065

Interest rate risk

For the three-month periods ended March 31, 2023, and 2022, the average interest rate was 76% and 42%, respectively.

The purpose of interest rate risk management is to minimize finance costs and limit the Company’s exposure to interest rate increases.

Variable-rate indebtedness exposes the Company’s cash flows to interest rate risk due to the potential volatility. Fixed-rate indebtedness exposes the Company to interest rate risk on the fair value of its liabilities as they could be considerably higher than variable rates. As of March 31, 2023, and December 31, 2022, about 7% and 9% of indebtedness was subject to variable interest rates. For the three-month period ended March 31, 2023, and for the year ended December 31, 2022, the variable interest rate of loans denominated in USD stood at 8.11% and 4.55%, respectively. For the year ended December 31, 2022, the variable rate of loans denominated in ARS stood at 36.31%.

The Company expects to lessen its interest rate exposure by analyzing and assessing (i) the different sources of liquidity available in domestic and international financial and capital markets (if available); (ii) alternative (fixed or variable) interest rates, currencies and contractual terms available for companies in a sector, industry and risk similar to the Company’s; and (iii) the availability, access and cost of interest rate hedge contracts. Hence, the Company assesses the impact on profit or loss of each strategy on the obligations that represent the main positions to the main interest-bearing positions.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

In the case of fixed rates and in view of current market conditions, the Company considers that the risk of a major decrease in interest rates is low; therefore, it does not expect substantial fixed rate debt risk.

For the three-month period ended March 31, 2023, and for the year ended December 31, 2022, the Company did not use derivative financial instruments to mitigate interest rate risks.

Note 18. Inventories


	As of March 31, 2023		As of December 31, 2022
Materials and spare parts		8,464		8,177
Crude oil stock (Note 5.2)		—		4,722

Total		8,464		12,899

Note 19. Cash, bank balances and other short-term investments


	As of March 31, 2023		As of December 31, 2022
Mutual funds		279,997		202,165
Cash in banks		47,495		23,910
Money market funds		20,173		15,881
Government bonds		2,577		2,429

Total		350,242		244,385

Cash and cash equivalents include cash on hand and at bank and investments maturing within 3 (three) months. For the consolidated statement of cash flows purposes below is the reconciliation between cash, bank and short-term investments and cash and cash equivalents:


	As of March 31, 2023			As of December 31, 2022
Cash, bank balances and other short-term investments		350,242			244,385
Less
Government bonds		(2,577	)		(2,429	)

Cash and cash equivalents		347,665			241,956

Note 20. Equity

20.1 Capital stock

The following chart shows a reconciliation of the movements in the Company’s capital stock for the three-month period ended March 31, 2023:


	Series A		Series C ⁽¹⁾		Total
Amounts as of December 31, 2022		517,873		—		517,873
Number of shares		88,406,478		2		88,406,480

Cashless exercises of warrant		—		—		—
Number of shares		1,176,811		—		1,176,811
Series A shares to be granted in LTIP		1		—		1
Number of shares		3,300,253		—		3,300,253

Amounts as of March 31, 2023		517,874		—		517,874
Number of shares		92,883,542		2		92,883,544

⁽¹⁾	As of March 31, 2023, the 2 (two) outstanding Series C shares are currently held by the Company.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

As of March 31, 2023 and December 31, 2022, the Company’s authorized capital includes 35,908,697 and 40,385,761 Series A ordinary shares, respectively, held in Treasury that may be used with LTIP.

See Note 21 to the annual consolidated financial statements as of December 31, 2022.

Note 21. Provisions


	As of March 31, 2023		As of December 31, 2022
Noncurrent
Well plugging and abandonment		29,048		31,389
Environmental remediation		267		279

Total noncurrent		29,315		31,668


	As of March 31, 2023		As of December 31, 2022
Current
Environmental remediation		1,423		1,542
Well plugging and abandonment		1,064		1,135
Contingencies		92		171

Total current		2,579		2,848

Note 22. Salaries and payroll taxes


	As of March 31, 2023		As of December 31, 2022
Current
Salaries and social security contributions		5,097		7,521
Provision for bonuses and incentives		3,739		17,599

Total current		8,836		25,120

Note 23. Other taxes and royalties


	As of March 31, 2023		As of December 31, 2022
Current
Royalties		14,434		12,642
Tax withholdings		2,809		7,205
VAT		49		10
Turnover tax		—		102
Other		310		353

Total current		17,602		20,312

Note 24. Trade and other payables


	As of March 31, 2023		As of December 31, 2022
Current
Accounts payable:
Suppliers		208,851		196,484

Total current accounts payables		208,851		196,484

Other accounts payables:
Payables to third parties ⁽¹⁾		23,610		23,880
Extraordinary fee for Gas IV Plan		336		488
Payables to partners of joint operations		334		161

Total other current accounts payables		24,280		24,529

Total current		233,131		221,013

⁽¹⁾	As of March 31, 2023 and December 31, 2022, include 18,204 and 23,880, related to acquisition of 50% operating working interest in the unconventional concessions of Aguada Federal and Bandurria Norte. (See Note 1.2.1 to the annual consolidated financial statements as of December 31, 2022).

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Other than mentioned above, due to the short-term nature of current trade and other payables, their carrying amount is deemed to be the same as its fair value. The carrying amount of noncurrent trade and other payable does not differ considerably from its fair value.

Note 25. Employee benefits

The following chart summarizes net expense components and the changes in the liability for long-term employee benefits in the unaudited interim condensed consolidated financial statements:


	Period from January 1, through March 31, 2023			Period from January 1, through March 31, 2022
Cost of services		(6	)		(10	)
Cost of interest		(147	)		(94	)

Total		(153	)		(104	)


	As of March 31, 2023
	Present value of the obligation			Plan assets			Net liabilities
Amounts at beginning of period		(19,009	)		6,758			(12,251	)
Items classified as loss or profit
Cost of services		(6	)		—			(6	)
Cost of interest		(228	)		81			(147	)
Items classified in other comprehensive income
Actuarial remediation gain		—			109			109
Benefit payments		848			(848	)		—
Payment of contributions		—			75			75

Amounts at end of period		(18,395	)		6,175			(12,220	)

The fair value of plan assets as of every period end per category, is as follows:


	As of March 31, 2023		As of December 31, 2022
US government bonds		5,782		5,703
Cash and cash equivalents		393		1,055

Total		6,175		6,758

See Note 23 to the Company’s annual consolidated financial statements as of December 31, 2022.

Note 26. Related parties transactions and balances

As of March 31, 2023 and December 31, 2022, the Company carries no balances with related parties and relevant transactions other than those included in Note 27 to the annual consolidated financial statements as of December 31, 2022.

Note 2.3 to the Company’s annual consolidated financial statements as of December 31, 2022 and Note 1.2 of these unaudited interim condensed consolidated financial statements provide information on the Group’s structure, including information on Company subsidiaries.

Note 27. Commitments and contingencies

There were no significant changes in commitments and contingencies for the three-month period ended March 31, 2023 (see Notes 28 and 29 to the annual consolidated financial statements as of December 31, 2022).

Note 28. Tax regulations

There were no significant changes in Argentina’s and Mexico’s tax regulations during the three-month period ended March 31, 2023 (see Note 31 to the annual consolidated financial statements as of December 31, 2022).

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

Note 29. Subsequent events

The Company assessed events subsequent to March 31, 2023, to determine the need of a potential recognition or disclosure in these interim condensed consolidated financial statements. The Company assessed such events through April 25, 2023, date in which these financial statements were made available for issue.

•

On April 4, 2023, Vista Argentina paid interest for an amount of 109 corresponding to loan agreements signed with Banco Santander International in July 2021 and January 2022.

There are no other events or transactions between the closing date and the date of issuance of these unaudited interim condensed consolidated financial statements that could significantly affect the Company’s financial position or profit or loss.

Nota 30. Supplementary pro forma financial information (unaudited)

As mentioned in Note 1.2.1, the Company, thought it subsidiary Vista Argentina signed an agreement with Aconcagua for the operations of the following concessions in the Neuquina Basin, Argentina (the “Transaction”): (i) the Entre Lomas upstream concession, located in the Province of Neuquén; (ii) the Entre Lomas, Jarilla Quemada, Charco del Palenque, Jagüel de los Machos and 25 de Mayo-Medanito S.E. upstream concessions, located in the Province of Río Negro (jointly, the “Exploitation Concessions”); (iii) the Entre Lomas and Jarilla Quemada gas transportation concession, located in the Province of Río Negro; and (iv) the 25 de Mayo-Medanito SE Crude oil transportation concession, located in the Province of Río Negro (jointly with the Exploitation Concessions, the “Concessions”).

The Company has prepared these financial information to comply with the regulatory requirements set forth by the CNBV (“Mexican Banking and Securities Commission”), which have been prepared in accordance with IFRS as issued by the IASB.

They were prepared on a historical cost basis, except for certain financial assets and liabilities that were measured at fair value.

This pro forma financial information should not be considered a statement, guarantee or suggestion about past or future performance. No person should rely on the usefulness or accuracy of this pro forma financial information, which is disclosed exclusively to comply with the aforementioned sole circular. To the maximum extent allowed by applicable law, Vista Energy S.A.B. de C.V. and its directors, Board members, employees, affiliates and subsidiaries are released from all liability related to such pro forma information.

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

30.1 Pro forma consolidated statement of profit or loss and other comprehensive income for the three-month period ended as of March 31, 2022 (unaudited)


	Period from January 1, through March 31, 2022			Pro forma adjustments			Period from January 1, through March 31, 2022 Pro forma
Revenue from contracts with customers		207,920			(8,534	)		199,386
Cost of sales:
Operating costs		(30,839	)		7,506			(23,333	)
Crude oil stock fluctuation		2,655			(1,973	)		682
Depreciation, depletion and amortization		(46,822	)		2,995			(43,827	)
Royalties		(29,177	)		3,066			(26,111	)
Other non-cash costs related to the transfer of conventional assets		—			(2,814	)		(2,814	)

Gross profit		103,737			246			103,983

Selling expenses		(12,566	)		36			(12,530	)
General and administrative expenses		(12,463	)		—			(12,463	)
Exploration expenses		(205	)		—			(205	)
Other operating income		2,765			56,848			59,613
Other operating expenses		(1,260	)		—			(1,260	)

Operating profit		80,008			57,130			137,138

Interest income		16			—			16
Interest expense		(8,232	)		—			(8,232	)
Other financial income (expense)		(28,949	)		—			(28,949	)

Financial income (expense), net		(37,165	)		—			(37,165	)

Profit before income tax		42,843			57,130			99,973

Current income tax (expense)		(26,559	)		(10,184	)		(36,743	)
Deferred income tax (expense)		(750	)		(9,812	)		(10,562	)

Income tax (expense)		(27,309	)		(19,996	)		(47,305	)

Profit for the period, net		15,534			37,134			52,668

Other comprehensive income
Other comprehensive income that shall not be reclassified to profit or loss in subsequent periods
- (Loss) from actuarial remediation related to employee benefits		(129	)		—			(129	)
- Deferred income tax benefit		45			—			45

Other comprehensive income that shall not be reclassified to profit (loss) in subsequent periods, net of taxes		(84	)		—			(84	)

Total comprehensive profit for the period		15,450			37,134			52,584

VISTA ENERGY, S.A.B. DE C.V.

Notes to the unaudited interim condensed consolidated financial statements as of March 31, 2023 and December 31, 2022 and for the three-month periods ended March 31, 2023 and 2022

(Amounts expressed in thousands of US Dollars, except otherwise indicated)

30.2 Pro forma consolidated statement of financial position as of March 31, 2022 (unaudited)


	As of March 31, 2022			Pro forma adjustments			As of March 31, 2022 Pro forma
Assets
Noncurrent assets
Property, plant and equipment		1,326,731			(139,386	)		1,187,345
Goodwill		28,416			(5,542	)		22,874
Other intangible assets		4,049			—			4,049
Right-of-use assets		27,847			(3,131	)		24,716
Investments in associates		3,747			—			3,747
Trade and other receivables		19,025			163,787			182,812
Deferred income tax assets		4,029			—			4,029

Total noncurrent assets		1,413,844			15,728			1,429,572

Current assets
Inventories		18,262			(5,347	)		12,915
Trade and other receivables		48,947			23,639			72,586
Cash, bank balances and other short-term investments		207,889			10,000			217,889

Total current assets		275,098			28,292			303,390

Total assets		1,688,942			44,020			1,732,962

Equity and liabilities
Equity
Capital stock		586,706			—			586,706
Share-based payments		31,374			—			31,374
Other accumulated comprehensive income (losses)		(6,060	)		—			(6,060	)
Accumulated profit (losses)		(31,538	)		37,134			5,596

Total equity		580,482			37,134			617,616

Liabilities
Noncurrent liabilities
Deferred income tax liabilities		177,382			9,812			187,194
Lease liabilities		18,569			(3,131	)		15,438
Provisions		27,879			—			27,879
Borrowings		430,744			—			430,744
Warrants		25,321			—			25,321
Employee benefits		7,998			—			7,998
Trade and other payables		22,857			—			22,857

Total noncurrent liabilities		710,750			6,681			717,431

Current liabilities
Provisions		2,895			—			2,895
Lease liabilities		9,762			—			9,762
Borrowings		145,487			—			145,487
Salaries and payroll taxes		8,842			—			8,842
Income tax liability		68,156			10,184			78,340
Other taxes and royalties		14,985			—			14,985
Trade and other payables		147,583			(9,979	)		137,604

Total current liabilities		397,710			205			397,915

Total liabilities		1,108,460			6,886			1,115,346

Total equity and liabilities		1,688,942			44,020			1,732,962