Vista Energy Q1 2024 Earnings Miss Estimates Despite Slight Revenue Growth

Vista Energy reported its first quarter 2024 financial results, with earnings per share (EPS) of $0.79, failing to meet analyst estimates by $0.10. The company's revenue for the quarter was $317.35 million, representing a modest 0.1% increase year-over-year, but not reaching analyst expectations by $36.44 million.

The energy company's performance in Q1 2024 was characterized by a 14% year-over-year increase in production, primarily driven by strong results in the Vaca Muerta shale formation.

However, production saw a 2% decline compared to the previous quarter. Vista Energy achieved a 33% reduction in lifting costs, contributing to an 8% rise in adjusted EBITDA. Despite these improvements, the company reported negative free cash flow, influenced by increased working capital requirements and midstream expansion payments.

Vista Energy's stock has gained approximately 49.7% since the beginning of the year, surpassing the S&P 500's 6.3% gain over the same period. The company's earnings outlook remains favorable, with expectations to outperform the market in the near future. Analysts project an EPS of $1.23 on $396.05 million in revenues for the next quarter, while the current fiscal year estimate stands at $6.27 on $1.67 billion in revenues.

Why this matters: Vista Energy's Q1 2024 earnings miss and slight revenue growth underscore the challenges faced by energy companies in the current market environment. The company's performance and outlook have implications for investors and the broader energy sector, as it navigates production challenges, cost management, and market expectations.

Vista Energy emphasizes that the financial data presented in its Q1 2024 report are unaudited, and certain metrics may not be directly comparable to those of other companies. The company cautions investors to consult its complete financial statements for a comprehensive understanding, as the projections and guidance provided are based on numerous assumptions and may not accurately predict future events or performance.

Key Takeaways

• Vista Energy Q1 2024 EPS of $0.79, missing analyst estimates by $0.10.
• Revenue of $317.35M, up 0.1% YoY but missing estimates by $36.44M.
• 14% YoY increase in production, but 2% decline from the previous quarter.
• 33% reduction in lifting costs, 8% rise in adjusted EBITDA, but negative free cash flow.
• Vista Energy's stock up 49.7% YTD, with a favourable earnings outlook for next quarter and fiscal year.