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Vista Energy, S.A.B. de C.V. VIST reported second-quarter 2026 adjusted earnings of $2.38 per share, missing the Zacks Consensus Estimate of $3.15 by 24.4%. However, adjusted earnings increased from 55 cents in the year-ago quarter.
Revenues of $1.23 billion jumped 102.3% year over year and beat the consensus estimate of $1.08 billion by 14.2%. Higher production and stronger realized oil prices supported the top line. However, the higher cost of sales partially offset the positives.
VIST Production Gains From Acquired Assets
Total production in the second quarter increased 32% year over year to 156,061 barrels of oil equivalent per day (boe/d). Organic growth accounted for 20% of the year-over-year increase, while the consolidation of Bandurria Sur and Bajo del Toro contributed the remaining 12%. Total shale production in the second quarter totaled 152,633 boe/d, while conventional production amounted to 3,428 boe/d.
Oil production rose to 135,427 barrels per day (bpd) from 102,197 bpd a year ago. Natural gas production rose 30% to 3.17 million cubic meters (MMm3) per day, while natural gas liquids output increased 52% to 710 boe/d from the year-ago quarter.
Vista Advances Its Vaca Muerta Program
The company tied in 27 net wells and drilled another 27 net wells during the second quarter. It also completed 24 net wells, supporting continued organic growth across its Vaca Muerta acreage.
Bajada del Palo Oeste remained the largest operated asset, producing 67,114 boe/d. La Amarga Chica contributed 47,814 bpd, while the newly consolidated interests in Bandurria Sur and Bajo del Toro added 14,236 bpd to the quarterly average.
VIST Benefits From Higher Oil Prices
Average realized crude oil prices climbed 44% year over year to $89.40 per barrel, driven by higher Brent prices and improved differentials. Realized natural gas prices increased 7% from the prior-year period to $3 per million British thermal units (MMBtu).
Crude oil net revenues rose 89% year-over-year to $1.07 billion and represented 96.8% of total net revenues. Vista exported 72% of crude oil sales volumes, with oil export revenues more than doubling to $734.8 million. All domestic and international oil volumes were sold at export-parity prices.
Vista Expands Margins Despite Cost Pressures
Adjusted EBITDA increased to $805.2 million from $404.5 million in the prior-year quarter, supported by higher revenues and stable operating unit costs. The adjusted EBITDA margin expanded by 3 percentage points to 70%.
Lifting cost declined 4% on a per-unit basis to $4.50 per boe, reflecting fixed-cost dilution from higher production and a focus on cost control. However, selling expenses increased 8% to $4.10 per barrel of oil equivalent, primarily due to higher oil prices affecting turnover taxes.
Cost of sales totaled $526.6 million compared with $325.3 million in the second quarter of 2025, partially due to higher operating costs and increased depreciation, depletion and amortization charges.
Adjusted net income increased to $259.6 million from $56.9 million a year earlier. The prior-year result included a $202.5 million gain related to the La Amarga Chica acquisition. Higher net income was supported by higher adjusted EBITDA and lower restructuring expenses, partially offset by higher depreciation, depletion and amortization charges and income tax expense.
VIST Generates Strong Operating Cash Flow
Cash flow from operating activities totaled $985.1 million, aided by a $274.2 million working-capital reduction. Free cash flow was $99.1 million or $491 million excluding payments associated with the Equinor transaction.
Capital expenditures totaled $466.8 million. Vista directed $421.4 million toward drilling, completion and workover activity, while investments in development facilities amounted to $22.5 million.
The company ended the second quarter with $604.7 million in cash, bank balances and other short-term investments. Net debt at the end of the second quarter was $3.06 billion.
VIST Maintains Its 2026 Outlook
Management maintained its 2026 adjusted EBITDA guidance of $3 billion under an average Brent crude oil price assumption of $85 per barrel. Every $10-per-barrel change in second-half oil prices is expected to alter adjusted EBITDA by roughly $200 million.
Vista also reiterated its plan to reduce net leverage to around 1X adjusted EBITDA by year-end. The company expects its development program to deliver between 100 and 110 well tie-ins during fiscal 2026.
VIST’s Zacks Rank and Key Picks
VIST currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the energy sector are Par Pacific Holdings PARR, Valero Energy VLO and FuelCell Energy FCEL. While Par Pacific sports a Zacks Rank #1 (Strong Buy), Valero Energy and FuelCell Energy carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks Rank #1 stocks here.
Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington and Idaho, refining operations in Hawaii, Wyoming, Washington and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt and other petroleum products.
Valero Energy is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.
FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
This article originally published on Zacks Investment Research (zacks.com).
