Investor Presentation - Vista Oil & Gas
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Investor Presentation
Important Note Regarding Projections and Other
Forward-Looking Statements
Purpose of this Presentation: The material that follows is a presentation of general information about Vista Oil & Gas, S.A.B. de C.V. (BMV: VISTA) as of the date of this presentation, it is
not illustrative of any transaction, and is distributed for information purposes only. The information contained herein is public, comes from public sources or is informative in nature. All
material information in connection with Vista has been disclosed through the Mexican Stock Exchange and is available at www.bmv.com.mx or otherwise maintained by the Company in
accordance with applicable law We are providing this presentation for informational purposes only. This presentation does not constitute an offer to sell, a solicitation of an offer to buy, or a
recommendation to purchase any securities. Specifically, this presentation does not constitute a placement prospectus (prospecto de colocación) or equivalent document.
Proprietary Information: This presentation contains proprietary information. You may not copy it, excerpt it, summarize it or distribute it or any of its contents to any other person or entity,
in whole or in part. Any person receiving this presentation, by the mere fact of such reception, acknowledges and agrees that it shall not copy, excerpt, summarize, or distribute it or any of its
contents.
Other Matters: This presentation does not constitute an agreement of any kind, or as legal, tax or investment advisory advice or of any other kind. You must consult your own advisors for
any such advice. This presentation is not aimed at, or destined to be distributed or used by any person or entity that is a citizen or resident in any state, country or other jurisdiction in which
its use or distribution are prohibited by law or where any additional registration or license is required. Neither the National Banking and Securities Commission (“CNBV”), nor any other
authority have approved or disproved the information herein, as well as its accuracy or sufficiency.
Forward-Looking Statements: This presentation contains forward-looking statements, including projections, estimates, targets and goals, information regarding potential operational results
and descriptions of our business strategies, intentions and plans. Forward-looking statements may be identified by such words as “anticipate,” “believe,” “continue,” “could,” “estimate,”
“expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and other similar terms and expressions. Forward-looking statements are not historical
facts. They are based on expectations, beliefs, forecasts and projections, as well as on beliefs by our management team, that, while made on a good faith basis, are inherently uncertain
and beyond our control. Forward-looking statements that cover multiple future periods are, by their nature, more uncertain and subject to factors that could cause them to differ materially
from actual results. Any such expectations, beliefs, forecasts and projections are made only as of the date of this presentation. We undertake no obligation to update any such information or
any forward-looking statement made in this presentation after the date hereof.
Forward-looking statements in this presentation may include, for example, our financial performance, changes in our reserves and operational results and our expansion opportunities and
plans. Factors that could cause actual results to differ from any forward-looking statement include: (1) the occurrence of any event, change or other circumstances that could affect our
business; (2) the outcome of any legal proceedings; (3) competition and our ability to grow and manage growth profitably; (4) changes in applicable laws or regulations; (5) the possibility that
we may be adversely affected by other economic, business, and/or competitive factors; and (6) other additional risks and uncertainties, including the risk factors that we disclose in our filings
with the CNBV and the Mexican Stock Exchange (Bolsa Mexicana de Valores, or “BMV”). We encourage you to read all such filings.
Nothing in this presentation, and in particular, no projection or other forward-looking statement, should be construed as a guarantee of future performance, or as a prediction of
actual results. Actual results may differ materially from the projections or other forward-looking statements contained in this presentation. Due to their inherently uncertain
nature, you are cautioned not to rely on any such projections or forward-looking statements. We and our affiliates, advisors, agents and other representatives expressly
disclaim any liability to you in connection with any undue reliance on the information contained in this presentation, and in particular with respect to any projections or other
forward-looking statements.
2
Vista’s Company Overview
Sizable and operated asset base
Company Metrics Concentrated in Argentina’s Premier Basin
• Conventional assets with production base, infrastructure in place, and
top-quality Vaca Muerta acreage ready for full scale development
LTM Revenues(1) $425MM • Eight operating and one non-operating clusters in the Neuquina basin
• Two non-operated blocks in Noroeste and Golfo San Jorge basins
LTM EBITDA(1) $184MM
Neuquina Basin Blocks(4)
Production Q1 2019 25.7 kboed
2018 1P Reserves(2) 57.6 Mmboe
Vaca Muerta Net Acreage ~134,000 acres
Listed in Bolsa Mexicana de Valores: VISTA and VTW408A
Total Shares Outstanding: 75.9 MM(3)
▪ Premium Neuquina asset base
▪ Strong Financial Position, with $87.5MM
cash and $247.7MM net debt
▪ Actionable and profitable growth plan
consisting of almost 100% operated
assets and over 400 Vaca Muerta drilling
locations
1. Based on Q2, Q3 and Q4 2018 and Q1 2019 actual figures in Financial Statements.
2. Reserves as of December 31, 2018, as audited by Gaffney, Cline & Associates
3. 75,909,315 Class A Shares and 2 Class C Shares.
4. Two non-operated blocks in Noroeste and Golfo San Jorge basins not shown.
3
Important Note: projections, estimates, targets and goals are forward-looking statements and not guarantees of future performance. See “Important Note Regarding Projections and Other Forward-Looking Statements.”
Platform Poised for Growth
Delivered on 2018 guidance, confirmed 2022 targets
2018 2018 2019 2022 2018A-2022
Guidance Actuals (1) Guidance Target CAGR(4)
Daily Production(2) 24,100 boe/d 24,500 boe/d 29,900 boe/d 65,000 boe/d 30%
Adj. EBITDA(3) 190 $MM 195 $MM 225 $MM 900 $MM 50%
Adj. EBITDA Margin 43% 45% 47% 60% 15 p.p.
Operating Expenses 17.3 $/boe 13.9 $/boe ∼13 $/boe High-growth organic development
plan, based on current premium
300 $MM asset base
Capex 143 $MM 130 $MM
(1) All FY 2018 figures were calculated with the Q1 pro-forma results from the acquired entities and asset; plus Vista’s results for Q2, Q3 and Q4.
(2) Includes natural gas liquids (NGL) and excludes flared gas, injected gas and gas consumed in operations.
(3) Adj. EBITDA = Operating profit + Fix assets depreciation + Other assets depreciation + Extraordinary expenses (Income). 4
(4) 2018A-2022E Compounded Average Growth Rate.
Overview of Conventional Assets in Argentina
High-quality oil-prone production cluster
Asset Overview Proved Reserves (MMboe)
(5)
57.6
• Clustered acreage position in the Neuquina Basin covering ~525k acres in the
Provinces of Neuquén, Río Negro and Salta. 52.2
(5)
• Oil and gas production from well-understood reservoirs through primary and 14.3
(8.9)
secondary recovery; ~1,100 active producing wells and more than 200 injector 23.4
wells 19.6
• Multiple infill drilling and waterflood projects identified; current recovery factor
below 15% Reserves
• Light crude oil production (Medanito type API >31°); sold to domestic off-takers Replacement
Ratio
• Gas production sold to industrial clients (58%), distributors & GNC (30%) and
spot sales to power generation and traders (12%) at an average market price of 34.2
32.6
$3.7/MMbtu in 2018. 161%
• Treatment and evacuation infrastructure in place with spare capacity
• Exploratory upside in the tight gas reservoirs of the Cuyo, Lotena, and Los Molles
formations
YE 2017 (4) Production Additions YE 2018
Oil Gas
OPERATED FIELDS NON-OPERATED FIELDS
Net Metrics Entre Lomas (EL) Jagüel de los Machos (JDM) Bajada del Palo Oeste (BDPO) Acambuco (ACAM) TOTAL
by Asset Agua Amarga (AA) Medanito (MED) Bajada del Palo Este (BDPE) Coirón Amargo Sur Oeste (CASO)
Coirón Amargo Norte (CAN)
Águila Mora (AM)
100%BDPO - 100%BDPE -
W.I. (%) 100% 100% 1.5%ACAM - 10%CASO -
55%CAN – 90% AM
1P Reserves(1) (MMBoe) 20.6 15.7 19.6 1.7 57.6
Acreage 278,594 80,606 147,251 6,050 525,308(3)
Q1 2019 average daily
9,603 8,362 6,495 200 24,700
production (boed)
2037 CAN
2026 EL 2025 JDM 2053 BDPO 2036 / 2040 ACAM
Concession Term -
2034 / 2040 AA 2026 MED 2053 BDPE 2053 CASO
2019 AM(2)
1. Based on reserves certification as of December 2018. Sur Río Deseado Este (a non-operated 4. The information for 2017 included estimated quantities of proved reserves based on information
JV) is not included. Aguila Mora has not certified 1P reserves. provided by the previous owners of the blocks acquired by Vista.
2. 35-year exploitation concession in the process of being requested to provincial authorities 5. Includes approximately 2 MMboe of shale reserves 5
3. Total net acreage includes 12,807 net acres from Sur Río Deseado Este.
Production
Third consecutive quarter of growth in conventional production
Net production evolution Q1 monthly breakdown
(kboepd) (kboepd) Exit rate: >29 kboed
+8.0%
25.7
24.6 24.7 27.0
24.4 24.2
25.0 25.0 1.7
0.4 0.4 0.4
24.3 23.7 23.8 24.4 24.5
24.4 24.4 24.6
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Jan-19 Feb-19 Mar-19
Conventional Argentina Mexico Conventional Argentina Mexico
Unconventional Argentina Non Operated Argentina Unconventional Argentina Non Operated Argentina
Net production growth LTM activity
▪ Tied-in first shale oil 4-well pad in Bajada del Palo Oeste
4.0%
2.1% ▪ Tied-in 29 conventional wells:
▪ 22 oil wells in Jagüel de los Machos – Medanito
-0.8% -0.8%
▪ 2 oil wells in Entre Lomas
Q2 2018 Q3 2018 Q4 2018 Q1 2019
(1) ▪ 2 gas wells in Entre Lomas
▪ 3 gas wells in Bajada del Palo Oeste
(1) Q1 2019 production includes production from México
6
Vaca Muerta History Recap
Building momentum attracts new players
Super Majors(1) Focusing on Permian and Vaca Muerta
Vaca Muerta +112%
Permian 1,696
(Net Acres
Held in ‘000s) 800
+45%
3,622
300 (kboepd) 2,500
250 2012 2017
May-2013: First
unconventional EPF in
Loma La Lata Norte Mar-2017: YPF signs agreement
with Schlumberger
200 Jun-2013: EIA report states
Vaca Muerta is the 2nd Mar-2017: Tecpetrol starts field
largest shale gas and 4th Jan-2014: SOil-4(h) well with 2 landing development in Fortin de Piedra
largest shale oil resource zones – discovery of Organico as main
150 worldwide landing zone for horizontal wells Apr-2017: YPF signs agreement
with Shell
Jul-2013: New Loma
Campana concession Mar-2014: YPF introduced
walking rigs to Vaca Muerta May-2017: YPF signs agreement
approved (35 years) with Equinor
100
Apr-2014: YPF starts full field
Aug-2013: YPF signs development in Loma Campana
agreement with Chevron
Jun-2014: SOil-72(h): First
50 Sep-2013: YPF signs horizontal well to Organico
agreement with Dow
0
2012 2013 2014 2015 2016 2017 2018 2019
Apr-2018: Vista acquires assets from
Aug-2012: YPF announces Jul-2014: First walking rigs Jan-2015: First multi-target Pampa and Pluspetrol
its 100-Days Plan, with VM start operating in Argentina PAD (3 landing zones)
as the key driver for growth Jul-2018: Vista starts full field
Jun-2015: YPF Discovers development in Bajada del Palo
Oct-2012: YPF announces Oct-2014: Congress sanctions
unconventional gas in La Oeste
the Plan Exploratorio New Hydrocarbons Law
Ribera
Argentino (PEA) Sep-2018: Vista and Shell announce
Dec-2014: YPF signs deal with asset swap
Petronas
Dec-2012: YPF signs Nov-2018: Vista obtains CENCH for
MOU with Chevron Bajada del Palo Este and Oeste
Dec-2018: YPF starts full field
development in La Amarga Chica
Feb-2019: Vista ties-in first pad in
Bajada del Palo Oeste
(1) Super Majors include Exxon (and subsidiary XTO), Shell, BP (through its subsidiary in Argentina, Pan American Energy), and Chevron.
7
Vista’s Vaca Muerta Acreage Position
Delivered on 2018 plan
Vaca Muerta 134,000 net acres divided in 4 blocks
• Divided Bajada del Palo block into Bajada
del Palo Oeste and Bajada del Palo Este
and obtained 35-years concessions with
12% royalty in both blocks
• Acquired 90% operated WI in Águila Mora Aguila Mora
block, surrounded by already delineated
blocks
• Retained 10% non-operated WI in CASO
block
Bajada de Palo
Oeste
Potential Best-in-Class Resource Properties(1)
BAJADA DEL PERMIAN
EAGLE FORD
PALO OESTE (WOLFCAMP)
TOC (%) 4.2 5.5 4.5 Bajada de Palo
Este
Thickness (m) 250 172 41
Pressure (psi/ft) 0.90 0.48 0.80 Coirón Amargo
Sur Oeste
Águila Mora Bajada del Palo Oeste Bajada del Palo Este Coirón Amargo Sur Oeste
• 20,700 net acres (90% WI) • 62,640 net acres (100% WI) • 48,850 net acres (100% WI) • 1,631 net acres (10% WI)
• Evaluation lot expires by the end • License term: 2053 • License term: 2053 • License term: 2053
of June, 2019 • Commitment: 106$MM in 18 • Commitment: 52$MM in 3 years • Remaining commitment: 3$MM
• CENCH award expected in 2019 months • Operated by Vista @WI
• Operated by Vista • 2019 plan: drill 18 wells, frac & tie • 2019 plan: frac & tie 3 wells, total
13 wells Capex 3$MM @WI
• Operated by Vista • Operated by Shell
1. Based on Company estimates, Ministerio de Hacienda, Secretaría de Energía. and the EIA
8
Vaca Muerta Shale Oil Opportunity
Activity significantly mitigates risk of Bajada del Palo Oeste
Unconventional Operations Map in Shale Oil Window
A COIRÓN AMARGO SUR OESTE
Águila Mora Block
• First unconventional oil well CASO.x-1 completed and productive
(90% op WI) since March 2018, performing above type well curve.
• Total Capex 18.7 MM$, with 2,000 mt (6,560 ft) lateral length and
27 fracs.
• Landing zone in Upper La Cocina.
Bajada del Palo • First six month of production totalized 137.5 kboe vs estimated
Oeste Block
(100% op WI)
type well curve of 126 kboe.
Bajada del Palo
B LOMA CAMPANA
F Este Block • First unconventional oil pilot completed in Argentina
(100% op WI)
D • In full development mode
• ~559 wells drilled of which ~148 horizontal with up to 10,500ft
(3,200m) lateral length(1)
E
• Current production: 45kboe/d(2)
C Coirón Amargo
B
Sur Oeste Block
(10% non op WI)
C SIERRAS BLANCAS/ CRUZ DE LORENA
• 18 wells drilled(2)
A • SB-1005 one of the top producing wells in the basin, with IP of
1kbbl/d + 600 MMscfd(2)
• Current production: 3.5kboe/d(2)
Ready for full scale development
D LA AMARGA CHICA
• Second unconventional oil pilot in Argentina
• Completed pilots and ongoing development in adjacent blocks
• Production results in neighboring blocks supports Vista’s type curve(3) • Commenced third pilot phase in 2018(2)
• Operated infrastructure in place with spare capacity • Current production: 8.1kboe/d(2)
• Full discretion and flexibility on timing of Bajada del Palo Oeste, Bajada E BANDURRIA SUR
del Palo Este and Águila Mora development (99% of net acreage) • JV signed in 2017 with ~$390 MM committed(2)
Most experienced Management Team in developing Vaca Muerta • Pilot Phase: two-stage(4)
• Drilled 500 wells across play (~60% of Vaca Muerta activity to date) • Six wells drilled (4 horizontals)(2)
• Delivered 47% well cost reduction F AGUADA FEDERAL
• Reached 50K boe/d, from zero • Two vertical exploration wells
• Four horizontal wells drilled(2)
1. Based on third party report. June 2018.
2. Based on Ministerio de Hacienda, Secretaría de Energía 9
3. Based on Company estimates, Ministerio de Hacienda, Secretaría de Energía. and the EIA
Developing Vaca Muerta in Factory Mode
Sustainable development since day 1 in Bajada del Palo Oeste
10Sustainable Development Approach (1/2)
No trucking used to transfer frac water since first pad
22 Km flat-hose water transfer to tanks
on location (7,500 truck trips avoided)
• Minimal environmental impact
• 100% guaranteed water availability during frac activities
• Reduced cost
11Sustainable Development Approach (2/2)
Entire first pad with 100% of frac sand transported and stored in sand boxes
• Minimal exposure to sand dust
• Improved logistics and reduced trucking costs
• Improved productivity by increasing sand
available on location
12Bajada del Palo Oeste Shale Oil Development
First 4-well pad in Bajada del Palo Oeste tied-in late Q1 2019
Fast Track Development
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
TYPICAL DEVELOPMENT Delineation Phase Pilot Phase 1 Field Development in Factory Mode
BAJADA DEL PALO OESTE FAST Ramp-up Full-Scale Development
TRACK DEVELOPMENT
Best-in-basin performance supported by novel One-Team approach
VISTA Oil & Gas - 8 Stages (14-02-2019)
New record- Pumping time 19.3hrs
New record- fluids and sand on
a given day 12,697 m3 / 42,856 sxs
Source: Bloomberg
13Bajada del Palo Oeste Update (1/2)
Strong results under sustainable development approach since day 1
First 4-well pad
Two successfully tested Drilling and completion cost Best-in-basin Sustainable
landing zones within budget completion development
Target Vaca Muerta Average per • Averaged 5.0 frac • No trucking of water
Metric
well
Upper Carbonate To be tested stages per day (record (22 km flat hose)
Lateral length (mtrs/ft) 2,550 / 8,366 day of 8 frac stages,
Lower Carbonate To be tested • Healthier environment
with 19.3 hours of
Stages (#) 34 minimizing sand dust
Upper Organic To be tested pumping time)
D&C Cost ($MM) 13.8 • EPF construction in
MDM-2013h MDM-2015h • 100% of completions
Lower Organic l l D&C cost per lateral ft (‘000$) 1.6
using sandboxes
record time to minimize
gas flaring and crude
MDM-2014h MDM-2016h
trucking
La Cocina l l Cost per frac stage ($MM) 0.22
Production above expectations Second pad update
kboed
7.0 • Drilled all surface and
6.0 intermediate sections
5.0 • Drilled horizontal sections of first
4.0 three wells
3.0 • Expected tie-in Q3 2019
2.0
1.0
0.0
3/1/2019 3/9/2019 3/17/2019 3/25/2019 4/2/2019 4/10/2019 4/18/2019
Gas Oil
14Bajada del Palo Oeste Update (2/2)
Strong well performance across 4 wells in first pad
Daily production per well Cumulative production per well
Vaca Muerta - Horizontal Wells MdM-2013h MdM-2014h
2,000 kboe kboe
60 52.7
Last 20 days
Millares
1,800
production (in boed) 50
39.8
MdM-2013h 1,352 40
Normalized Oil Production (boe/day per 2,500 m)
1,600
MdM-2014h 1,912 30
1,400 MdM-2015h 1,415 20
MdM-2016h 1,665 10
1,200
0
0 10 20 30 40 50 60 0 10 20 30 40 50 60
1,000 MdM-2013h MdM-2014h
Vista's type curve (1.1 Mmboe) Vista's type curve (1.1 Mmboe)
800
MdM-2015h MdM-2016h
P50 Type
kboe kboe
600
60
Millares
51.3
400 50 45.1
40
200
30
20
0
0 30 60 90 120 150 10
Days
0
Oil EUR (kbbl) 972 Gas EUR (Bcf) 0.6 Total EUR (kboe) 1,079
0 10 20 30 40 50 60 0 10 20 30 40 50 60
Vaca Muerta IP 30 (bbl/d) 662 Dry gas IP 30 (MMcf/d) 0.4 IP 30 (boe/d) 736 MdM-2015h MdM-2016h
Type Curve(1) 180-day cum (kbbl) 147 180-day cum (Bcf) 0.09 180-day cum (kboe) 163
Vista's type curve (1.1 Mmboe) Vista's type curve (1.1 Mmboe)
(1) Type curve defined in 2018 without reflecting data acquired in Bajada del Palo Oeste first pad
15Strong Results of Vaca Muerta Wells
First 4 wells performing in line with top-tier wells of the basin
Top 90 Vaca Muerta producing wells average monthly production(1)
kboed
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
Month 1 Month 2 Month 3
Wells with higher deliverability than expected
psi millimeters
10,000 ▪ Strict drawdown management policy to preserve frac integrity
12
8,000
▪ Bottom-hole pressure still over 7,000 psi, with wells flowing
naturally through a 6.35 mm choke (16/64 inches)
6,000 9
4,000
6
2,000
0 3
0 6 12 18 24 30 36 42 48
MdM-2013h MdM-2014h
MdM-2015h MdM-2016h
(1) Capítulo IV – Argentine Secretariat of Energy; Vista’s month 3 projected with information available until April 23, 2019
16Potential for Superior Returns
Well productivity and well cost reduction drive economics
Well Cost Reduction Drive Boost in IRRs(2)
(IRR %)
140%
120%
100%
80%
60%
40%
20%
8,200 ft (2,500m)
horizontal well 13.5$MM 12.5$MM 11.5$MM 10.5$MM
cost:
0%
55 60 65 70 75
Realized oil price $/bbl
Oil EUR (kbbl) 972 Gas EUR (Bcf) 0.6 Total EUR (kboe) 1,079
Vista Vaca Muerta IP 30 (bbl/d) 662 Dry gas IP 30 (MMcf/d) 0.4 IP 30 (boe/d) 736
Type Curve(1)
180-day cum (kbbl) 147 180-day cum (Bcf) 0.09 180-day cum (kboe) 163
1. Based on independent third party analysis on Company’s acreage made by WDVG – Petroleum Engineering Laboratories.
2. Does not include capital expenditures for facilities. 17Not Your Typical Headquarters
Vista’s new offices in Neuquén
• Very close to our Neuquén
operations
2 hours drive to Bajada del
Palo Oeste
• Modern design in a friendly
environment
Attracts stakeholders and
creates an inspiring workplace
for our staff
• Technology hub
Operations monitored in real
time, with state-of-the-art
software and equipment
18Financial Overview
Solid financial position
Q1 2019 Vista consolidated cash flow
$MM
79.1 92.6
Equity 54.4
20.0 Debt(3) 24.7
87.5
80.9
Beginning of period Operating activities Financing activities Investment activities End of period
Financial debt breakdown As of March 31, 2019
Quarterly Leverage Ratios(1) As of March 31, 2019 5-year unsecured term loan 300.2
Local debt in Argentina (US dollar denomintated) 35.0
Gross Leverage Ratio 1.8x
Total financial debt(2) 335.2
Net Leverage Ratio 1.3x
(-) Cash and cash equivalents 87.5
Net debt 247.7
(1) Vista’s LTM Adj. EBITDA
(2) Current borrowings total 55.4 $MM while non current borrowings total $MM 279.9 19
(3) Borrowings (35.0) – Payments of interests (10.8) + Effects of exchange rate in cash and cash equivalents (0.5)Outlook (1/2)
Vaca Muerta-driven growth plan leveraging existing conventional operating platform
Historical and Target Production (1)
Historical and Target Wells(1)
(#) (kboe/d)
+54% 34
22
13 14
+22%
29.8 29.9
2016P 2017P 2018A 2019E 27.1
24.5
Pro-forma Actual Estimated
Historical and Target CAPEX(1)
($MM)
+131% 300
119 130
2016P 2017P 2018A 2019E
68
Pro-forma Actual Estimated
2016P 2017P 2018A 2019E
Pro-forma Actual Estimated Conventional Unconventional
1. 2016 and 2017 proforma from acquired entities and assets based on information provided to the Company, 2018 actuals include Q1 proforma and Q2, Q3 and Q4 Vista, and 2019 expected based on Company estimates. 20
Important Note: projections, estimates, targets and goals are forward-looking statements and not guarantees of future performance. See “Important Note Regarding Projections and Other Forward-Looking Statements.”Two-Year Outlook (2/2)
Goal is to deliver superior financial results through intended growth strategy
Adj. EBITDA
Historical and Target Revenues(1) Historical and Target Adj. EBITDA(1) Margin (%)
($MM) ($MM)
300
+15% 90%
+10% 240
575
80%
250
225 70%
445 435 480 200
182 195 60%
45% 47%
50%
42% 41%
150
40%
100 30%
20%
50
10%
0 0%
(3) (3)
2016P 2017P 2018A 2019E 2016P 2017P 2018A 2019E
Pro-forma Actual Estimated Pro-forma Actual Estimated
Lifting Cost
Historical and Target OPEX(1) ($/bbl) Historical and Target Free Cash Flow (1)(2)
($MM) ($ MM) ~1,100
250 30
199
169
25
200
143 111 108
124
20
150
18.3 16.8 -6%
15
100
13.9 13.0
10
50
~(300)
5
2018-2021 2022-2025
0 0
2016 2017E
2016P 2017P 2018A 2019E Cumulative Cumulative
Pro-forma Actual Estimated
1. 2016 and 2017 proforma from acquired entities and assets based on information provided to the Company, 2018 actuals include Q1 proforma and Q2, Q3 and Q4 Vista, and 2019 expected based on Company estimates.
2. Does not include cash flow from financing activities.
3. 2019 estimates at oil sales price 55.0 $/bbl and natural gas: @4.0 $/MMBTU
21
Important Note: projections, estimates, targets and goals are forward-looking statements and not guarantees of future performance. See “Important Note Regarding Projections and Other Forward-Looking Statements.”Company Highlights Key differentiation factors World-class Management team Cash-flow generating asset base High-growth Development plan Unique platform for direct exposure to Vaca Muerta Development-ready, core Vaca Muerta shale position
Agenda
Appendix 01
Q1 2019 Results 02
Management Team 03
23Bajada del Palo Oeste Potential Landing Zones
Multiple landing zones generate extensive drilling inventory
In base plan Potential
413 Wells +1,100 Wells(2)
Bajada del Palo Oeste Core Location Map
Tested
Multiple Stack Pay Zones
~5 wells per section(1)
West side
of the block
between
40 and 32
API°
CARBONATE
2,800
API°:
20 25 30 35 40 45 50 55 60
Bajada del Palo Oeste Overpressure Map
2,850
ORGANIC
West side
of the block
above 250
kg/cm2 2,900
(4,600 psi)
LA COCINA
Overpressure (kg/cm2):
0 50 10 15 20 25 30 35
0 0 0 0 0 0 Prospective Area Up to five different landing zones being tested in adjacent blocks
Source: WDVG – Petroleum Engineering Laboratories.
(1) A section equals to 1.6 km (1.0 mile). 24
(2) Includes 413 wells in base plan.Selected Precedent Acquisition Multiples
Precedent transactions in Vaca Muerta
$14,000
Precedent Acquisition Multiples
($/acre)
$8,500 $8,600 $8,800
$7,200 $7,000 $7,300
$6,000
Buyer
Seller
Bajo del Bajada de La Amarga Aguada Loma
Area Bandurria La Escalonada El Orejano
Toro Sur Añelo Chica Federal Campana
Buyer Acquired
Operatorship No No Yes No No Yes No No
Acres 19,390 27,667 27,500 23,095 49,970 14,374 5,050 48,500
Date Jun-17 Apr-17 Feb-17 Mar-15 Apr-14 Jan-14 Sep-13 Jul-13
Medanito $/bbl(1) 55.1 56.4 57.8 75.6 79.5 72.4 74.6 74.9
Source: Press releases and media coverage. 25
1. Based on Ministerio de Hacienda, Secretaría de Energía.Fast Track to Full-Scale Development
Facilities capacity in place allow for initial development phase startup
Facilities for Initial Development Phase Facilities for Full-Scale Development
Entre Lomas Battery EPF
pipeline to O
construct Existing Pipeline T
P Oil Treatment Plant
Pipeline to Construct
Bajada del Palo
OTP-
1 3 EC- Pipeline
PH-PR
9
6,000m pipeline OTP
Bajada del Palo Oeste 1BP from Entre Lomas to 4
2
Oil Treatment & Disposal existing pipeline
2BMo N1 EC-
1BMo 8
6km 4km 27km
4 early production faciltiies and new crude oil treatment plant
Gas pipeline
Prospective Aguada del Chanar
Area USP-14 LC - YPF
Gas pipeline
Centro Oeste
Bajada del Palo
Gas pipeline
Aguada la Arena
Borde Montuoso
EC-9 Gas pipeline
Bajada del Palo Oeste EC-8 EC-9
Aguada del Arena
Borde Montuoso
Gas Treatment & Disposal LPG-HRU
Plants
EC-8
Gas pipeline Borde
Montuoso NEUBA II
Existing gas pipelines with spare capacity in the proximity of the block
26
Important Note: projections, estimates, targets and goals are forward-looking statements and not guarantees of future performance. See “Important Note Regarding Projections and Other Forward-Looking Statements.”Agenda
Appendix 01
Q1 2019 Results 02
Management Team 03
271st Quarter 2019 Highlights
Consolidated figures in Vista Oil & Gas, SAB de CV include operations in Mexico and Argentina
Strong results in first Vaca Muerta 4-well pad
Averaged 5.0 frac Reached production of
stages per day +6,500 boe/d
Daily Production(1) 25,693 boe/d
Revenues 93.7 $MM
Adj. EBITDA(2) 37.1 $MM
Adj. EBITDA margin(2) 40%
Cash 87.5 $MM
Net Debt(3) 247.7 $MM
Net Leverage Ratio(4) 1.3x
(1) Includes natural gas liquids (NGL) and excludes flared gas, injected gas and gas consumed in operations
(2) Adj. EBITDA = Gross profit + Fix assets depreciation + Other assets depreciation + Extraordinary expenses (Income) 28
(3) Net Debt: Current borrowings (55.4 $MM) + Non-current borrowings (279.9 $MM) – Cash and cash equivalents (87.5 $MM) = 247.7 $MM
(4) Vista’s LTM Adj. EBITDAProduction
Growth in total production, driven by both oil and natural gas
Total production Oil production
kboed kbbld
+4.0%
+4.1%
25.7 15.1
24.4 24.2 24.7 14.7 14.8 14.5
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
Natural gas production NGL production
MMm3d bbld
+4.6%
(13.0)%
1.52 1.59
1.42 1.38 744 730 716
623
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2018 Q3 2018 Q4 2018 Q1 2019
29Revenues and Pricing
Realized prices declined less than global commodity prices
Revenues Crude oil average price Natural gas average price
$MM $/bbl $/MMBTU
65.5
104.1 56.7
93.7
4.0 3.7
Q4 2018 Q1 2019 Q4 2018 Q1 2019 Q4 2018 Q1 2019
▪ Driven by lower prices in the ▪ Main off-takers were Trafigura ▪ Mainly driven by a decrease of
quarter and Shell sales prices to power generation
▪ Sales prices impacted by export from 3.32 $/MMBTU to 2.65
parity based pricing formula and $/MMBTU
an applicable oil benchmark
formula, with an average Brent
price of 60.8 $/bbl (1)
(1) Source: Bloomberg; 57.7 $/bbl in December 2018, 60.2 $/bbl in January and 64.4 $/bbl in February
30Opex
Continued focus on lifting cost reduction
Total Opex Opex per boe
$MM $/boe
28.6 27.8 12.6 12.0
Q4 2018 Q1 2019 Q4 2018 Q1 2019
▪ Continued controlling costs with new contracting model; strong focus on absorbing production growth with
existing cost base
▪ Decrease in lifting cost driven by absorption of shale production ramp-up with minimal incremental cost
31Adjusted EBITDA
Q1 2019 EBITDA margin slightly higher despite lower sales prices
Adj. EBITDA(1) Adj. EBITDA Margin
$MM %
40.4
37.1
39% 40%
Q4 2018 Q1 2019 Q4 2018 Q1 2019
▪ Lower revenue was offset by cost
efficiency
▪ 1 p.p. expansion in EBITDA margin
despite lower sales prices
(1) Adj. EBITDA = Operating profit + Fix assets depreciation + Other assets depreciation + Extraordinary expenses (Income).
32Closing remarks
Ignited the Vaca Muerta profitable production growth
engine
Best-in-basin completion performance in our first pad
Bajada del Palo Oeste production reached 6,500 barrels
per day with four wells
Exit rate above 29,000 boe per day
Continued success in cost reduction
On track to achieve 2019 guidance
33Agenda
Appendix 01
Q1 2019 Results 02
Management Team 03
34Management Team
Experienced team with a solid track record working together
• 25 years of energy experience across five continents (integrated oil and gas and oilfield services)
• Independent board member of Schlumberger
Miguel Galuccio • Former Chairman and CEO of YPF and President of Schlumberger SPM/IPM(1)
Chairman and CEO • Previously Schlumberger Geomarket Manager for Mexico and Central America
• Prior experience with YPF International and Maxus Energy in Argentina and Southeast Asia
• Petroleum Engineering degree from Instituto Tecnológico de Buenos Aires
• More than 15 years of international business development, consulting and investment banking experience
• Previously Business Development Director at YPF in Argentina
Pablo Vera Pinto • Former member of the board of fertilizing company Profertil (Agrium-YPF), power generation company Central
Dock Sud S.A. (Enel-YPF) and gas distributor Metrogas S.A. (YPF, acquired from British Gas)
Chief Financial Officer
• Prior experience gained at private equity group in South America as Restructuring Manager, CFO and General Manager
of portfolio companies, management consulting at McKinsey & Co. in Europe and investment banking at Credit Suisse in N.Y.
• MBA INSEAD; Economics degree from Universidad Torcuato Di Tella
• More than 20 years of E&P and oilfield services experience
Juan Garoby
• Previously, Interim VP E&P, Head of Drilling and Completions, Head Unconventionals at YPF
Chief Operating Officer • Former President for YPF Servicios Petroleros S.A. (YPF owned drilling contractor)
• Prior experience with Baker Hughes Inc. (Brazil, Peru, Ecuador) and Schlumberger Ltd. (Europe and Africa)
• Petroleum Engineering degree from Instituto Tecnológico de Buenos Aires
• More than 15 years of energy industry experience
Gastón Remy • Previously, president of Dow Argentina and south region of Latin America (Argentina, Bolivia, Chile, Paraguay and Urug.)
• Prior experience as Legal Director for Latin America and Director for global projects, mergers and acquisitions at the Legal
Argentina General Department of Dow
Manager • Mr. Remy is Vice-president 1°for the Instituto para el Desarrollo Empresarial de la Argentina (IDEA) and was the President for
the 53°Coloquio Anual (2017).
• He is a lawyer from Universidad de Buenos Aires, and holds an LLM from University of Columbia, New York.
• More than 10 years of LatAm E&P strategy, portfolio management and investor relations experience
Alejandro Cherñacov • Previously CFO of small-cap Canada-listed E&P company
Strategic Planning and • Prior experience as Investor Relations Officer and ran the Upstream Project Portfolio at YPF in Argentina
Investor Relations • Masters in Finance from Universidad Di Tella, Strategic Decision and Risk Management professional certificate from Stanford
Officer University; Economics degree from Universidad de Buenos Aires
1. Schlumberger Production Management and Schlumberger Integrated Project Management, business segments of Schlumberger Ltd. 35Miguel Galuccio’s Track Record at Schlumberger
Led high-growth “company-shaping” global businesses
• More than 12 years in various senior leadership positions, including President of Schlumberger IPM and SPM,
current independent board member of Schlumberger and Geomarket Manager for Mexico and Central America
• Under his leadership, the company conceptualized and implemented novel strategic initiatives with lasting impact
STRATEGIC THOUGHT LEADER
❖ Led the creation of SPM, which currently is a focus growth segment for SLB globally having reached 235
kboe/d
❖ Led Schlumberger’s repositioning with PEMEX, which became one of the top Schlumberger clients globally
• Led IPM to become a benchmark among oil field service companies for operational excellence
– Executed complex projects across five continents in extremely challenging conditions (e.g. Iraq re-entry,
Russia, Algeria)
• Developed new business models integrating services with E&P risk-returns under SPM
EXECUTION FOCUSED AND RESULTS ❖ Burgos, Chicontepec, Alianza and Mesozoico projects with PEMEX (more than 2,000 wells drilled over
DRIVEN eight years)
❖ Casabe project with Ecopetrol; SPM tripled production in five years
❖ Shushufindi contract with Petroamazonas (Ecuador): operated by SPM, co-funded by E&P company Tecpetrol
(Techint Group) and US private equity firm KKR; SPM doubled production in four years
❖ Barnett shale gas project (Texas) and Bakken shale oil project (North Dakota)
❖ Other projects in China, Romania and Malaysia
• Managed fast-growing global organization with more than 6,300 employees in 55 projects across six
regions
ABILITY TO ATTRACT TALENT
❖ Pushed out-of-the-box solutions with strong bottom-line impact by motivating teams and engraining
AND GENERATE NETWORK
a can-do attitude in the company’s engineers and geoscientists
• Developed vast global network across oil and gas industry
❖ Strong relationships with CEOs of majors, independents and national oil companies
36Experienced Management With Proven Track Record
Mr. Galuccio led a remarkable turnaround of YPF in a complex scenario
• Contributed to shaping key market reforms including gas pricing incentive scheme, domestic crude pricing support,
amended federal hydrocarbons law and reversed decade-long decline in production and reserves
• Laid foundations for economic development of Vaca Muerta:
STRATEGIC LEADERSHIP WITH
❖ 500 wells drilled (60% of Vaca Muerta activity to date)
VISIBLE IMPACT
❖ 47% well cost reduction down to $8MM per horizontal well
❖ Reached 50,000 boe/d (largest economic shale development outside North America)
• Tripled share price in first 24 months
STRONG FINANCIAL AND • Grew production by more than 100 kboe/d to reach more than 580 kboe/d
OPERATIONAL PERFORMANCE • Achieved 45% EBITDA growth to reach more than $5Bn
• Ramped up activity from 25 to 74 drilling rigs at peak maintaining best-in-class safety record
• Achieved reserves growth of 25% to reach more than 1.2 Bnboe
• Closed 20+ transactions with deal value in excess of $4Bn; including company-shaping Apache Argentina acquisition ($800
MM) and landmark shale JVs with Chevron ($1.4Bn), Petronas ($550MM) and Dow ($180MM)
SUCCESSFUL BD, M&A AND • Raised more than $8Bn from international and local capital markets with over 30 new issuances between 2012 and 2016 (with
CAPITAL MARKETS EFFORT yields below Argentina’s sovereign benchmark); representing 90%+ of all Argentine international issuances
• Stock covered by more than 20 research analysts from top tier institutions; YPF Management voted top 2 Investor Relations
Team for LatAm oil and gas sector by Institutional Investor
• Led complex integrated oil and gas organization with more than 20,000 direct employees
ABILITY TO ATTRACT TALENT • Promoted and recruited best-in-class managers for key positions; implemented world-class talent
AND SOURCE TRANSACTIONS management initiatives
• Mr. Galuccio voted Best CEO of Argentina (PwC survey 2014) and LatAm CEO of the Year (BRAVO Latin
Trade business awards 2014)
Decades of oil and gas experience in leadership roles consistently delivering remarkable results
37Board of Directors of World Class Professionals
Strong corporate governance, with majority independent composition
Miguel Galuccio • Please refer to page 39 for Mr. Galuccio’s biographical information
Chairman of the Board
Kenneth Ryan • Partner at Riverstone based in the New York office and Partner and Head of Corporate Development, Capital Strategies, and Investor Relations
• Prior to joining Riverstone in 2011, Mr. Ryan worked for Gleacher & Company and Gleacher Partners in London and New York, more recently as Managing
Member of the Board Director and Co-Head of Investment Banking
by Riverstone • Currently he serves as member of the investment committee at Riverstone Credit Partners and as member of the board of Riverstone Energy Limited, HES
International and Trailstone
• Mr. Ryan graduated from the University of Dublin Law School, Trinity College
• Ms. Segal was appointed President and General Director of Americas Society / Council of the Americas in 2003, after working in the private sector in Latin
Susan L. Segal America and other emerging markets throughout more than 30 years
Independent member • She was a Partner at Chase Capital Partners / JPMorgan Partners with a focus on private equity and pioneering venture capital investments in the region
of the Board • Ms. Segal is a member of the Board of Americas Society / Council of the Americas, the Tinker Foundation, Scotiabank and Mercado Libre, as well as President
of the Board of Scotiabank USA
• Ms. Segal graduated from Sarah Lawrence University and received an MBA from Columbia University in the United States
• Mr. Doehner has been Executive Vice President of Corporate Affairs and Enterprise Risk Management at Cemex since May 2014
Mauricio Doehner Cobián • Mr. Doehner began work with Cemex in 1996 and has held various executive positions in areas such as Strategic Planning, Institutional Relationships and
Independent member Communications and Business Risk Management for Europe, Asia, Middle East, South America and Mexico
of the Board • He worked in Mexico’s Presidential administration leading the relationship with the Mexican public, including diverse issues such as government reforms
and the national budget
• Mr. Doehner holds a Bachelor’s degree in Economics from Tecnológico de Monterrey, an MBA from IESE/IPADE, and a Professional Certificate in
Competitive Intelligence by the FULD Academy of Competitive Intelligence in Boston, Massachusetts
• Mr. Sivignon is an advisor to the Chairman and CEO of Carrefour Group in Paris, where he previously held the position of Deputy CEO, CFO and Member of the
Pierre-Jean Sivignon Executive Board. Prior to his Carrefour Group experience, he was Chief Financial Officer, Executive Vice President, Member of the Board of Management at
Independent member Royal Philips Electronics in Amsterdam.
of the Board • He held various financial positions of high level at Faurecia in Paris and Schlumberger Limited in New York and Paris.
• Mr. Sivignon graduated from French baccalaureate with honors in France and received an MBA from ESSEC (Ecole Superieure des Sciences Economiques et
Commerciales) also in France.
• Mr. Bly has more than 30 years of experience in the oil and gas industry, having occupied various executive positions at an international level at BP serving
Mark Bly most recently as Executive Vice President of Safety and Operational Risk
• Mr. Bly was a part of BP’s E&P Executive Group, responsible for monitoring an international portfolio of Angola, Trinidad, Egypt, Algeria, and the Gulf of Mexico
Independent member • Mr. Bly led the internal investigation of the Deepwater Horizon incident in 2010, and is the author of “Bly Report” that defined the understanding of such event by
of the Board the industry and represented the founding of the new organization and global drilling practices program within BP
• Mr. Bly received a Master’s degree in Structural Engineering from the University of California at Berkeley and a Bachelor’s degree in Civil Engineering from the
University of California at Davis
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