Vista Energy, S.A.B. de C.V. (Form: 6-K, Received: 07/26/2022 16:06:43)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER SECURITIES EXCHANGE ACT OF 1934

For the month of July 2022

Commission File No. 001-39000

Vista Energy, S.A.B. de C.V.

(Exact Name of the Registrant as Specified in the Charter)

N.A.

(Translation of Registrant’s Name into English)

Pedregal 24, Floor 4,

Colonia Molino del Rey, Alcaldía Miguel Hidalgo

Mexico City, 11040

Mexico

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): Not applicable.

Contents of this Form 6-K

This Form 6-K for Vista Energy, S.A.B. de C.V. (“Vista” or the “Company”) contains the following exhibit:

Exhibit 1: Unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021.

Forward-Looking Statements

Any statements contained herein or in the attachments hereto regarding Vista that are not historical or current facts are forward-looking statements. These forward-looking statements convey Vista’s current expectations or forecasts of future events. Forward-looking statements regarding Vista involve known and unknown risks, uncertainties and other factors that may cause Vista’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” “Forward-Looking Statements” and other applicable sections of Vista’s prospectus filed with the United States Securities and Exchange Commission (“SEC”) and other applicable filings with the SEC and the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores).

Enquiries:

Investor Relations:

ir@vistaenergy.com

Argentina: +54 11 3754 8500

México: +52 55 4166 9000

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 26, 2022


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

By:		/s/ Alejandro Cherñacov
Name:		Alejandro Cherñacov
Title:		Strategic Planning and Investor Relations Officer

Exhibit 1

LOGO

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

Unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

Unaudited interim condensed consolidated financial statements as of June 30, 2022, and December 31, 2021, and for the six-month periods ended June 30, 2022, and 2021

TABLE OF CONTENTS


• Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the six-month periods ended June 30, 2022, and 2021		3

• Unaudited interim condensed consolidated statements of financial position as of June 30, 2022, and December 31, 2021		4

• Unaudited interim condensed consolidated statements of changes in equity for the six-month periods ended June 30, 2022 and 2021		5

• Unaudited interim condensed consolidated statements of cash flows for the six-month periods ended June 30, 2022 and 2021		7

• Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022, and 2021		9

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

Unaudited interim condensed consolidated statements of profit or loss and other comprehensive income for the six-month periods ended June 30, 2022 and 2021

(Amounts expressed in thousands of US Dollars)


	Notes	Period from January 1, through June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Revenue from contracts with customers	4		502,213			281,178			294,293			165,277
Cost of sales:
Operating costs	5.1		(62,568	)		(49,608	)		(31,729	)		(26,468	)
Crude oil stock fluctuation	5.2		(651	)		(1,340	)		(3,306	)		1,760
Depreciation, depletion and amortization	12/13/14		(104,804	)		(95,746	)		(57,982	)		(51,016	)
Royalties			(66,256	)		(36,626	)		(37,079	)		(21,740	)

Gross profit			267,934			97,858			164,197			67,813

Selling expenses	6		(27,010	)		(18,402	)		(14,444	)		(10,990	)
General and administrative expenses	7		(28,351	)		(19,921	)		(15,888	)		(11,070	)
Exploration expenses	8		(392	)		(284	)		(187	)		(125	)
Other operating income	9.1		13,720			6,514			10,955			5,865
Other operating expenses	9.2		(2,042	)		(1,343	)		(782	)		(294	)

Operating profit			223,859			64,422			143,851			51,199

Interest income	10.1		90			8			74			4
Interest expense	10.2		(15,597	)		(29,157	)		(7,365	)		(12,399	)
Other financial (expense) income	10.3		(14,374	)		5,751			14,575			(6,396	)

Financial (expense) income, net			(29,881	)		(23,398	)		7,284			(18,791	)

Profit before income tax			193,978			41,024			151,135			32,408

Current income tax (expense)	15		(78,192	)		(17,972	)		(51,633	)		(16,224	)
Deferred income tax benefit (expense)	15		1,584			(12,689	)		2,334			(10,679	)

Income tax (expense)			(76,608	)		(30,661	)		(49,299	)		(26,903	)

Profit for the period, net			117,370			10,363			101,836			5,505

Other comprehensive income
Other comprehensive income that shall not be reclassified to profit or loss in subsequent periods
- (Loss) from actuarial remediation related to defined benefit plans	25		(3,154	)		(2,620	)		(3,025	)		(2,523	)
- Deferred income tax benefit	15		1,104			1,385			1,059			1,361

Other comprehensive income that shall not be reclassified to profit or (loss) in subsequent periods, net of taxes			(2,050	)		(1,235	)		(1,966	)		(1,162	)

Total comprehensive profit for the period			115,320			9,128			99,870			4,343

Earnings per share
Basic (in US dollars per share)	11		1.324			0.118			1.151			0.062
Diluted (in US dollars per share)	11		1.226			0.113			1.061			0.059

Notes 1 through 29 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 June 30, 2022 and December 31, 2021

(Amounts expressed in thousands of US Dollars)


	Notes		As of June 30, 2022			As of December 31, 2021
Assets
Noncurrent assets
Property, plant and equipment		12		1,420,394			1,223,982
Goodwill		13		28,357			28,416
Other intangible assets		13		4,002			3,878
Right-of-use assets		14		26,482			26,454
Investments in associates				3,747			2,977
Trade and other receivables		16		18,990			20,210
Deferred income tax assets				4,029			2,771

Total noncurrent assets				1,506,001			1,308,688

Current assets
Inventories		18		18,914			13,961
Trade and other receivables		16		59,271			46,096
Cash, bank balances and other short-term investments		19		251,054			315,013

Total current assets				329,239			375,070

Total assets				1,835,240			1,683,758

Equity and liabilities
Equity
Capital stock		20.1		562,903			586,706
Legal reserve		20.2		1,255			—
Share-based payments				33,818			31,601
Share repurchase reserve		20.2		23,840			—
Other accumulated comprehensive losses				(8,026	)		(5,976	)
Accumulated profit (losses)				45,203			(47,072	)

Total equity				658,993			565,259

Liabilities
Noncurrent liabilities
Deferred income tax liabilities				173,990			175,420
Lease liabilities		14		18,667			19,408
Provisions		21		27,403			29,657
Borrowings		17.1		439,593			447,751
Warrants		17.4		8,133			2,544
Employee benefits		25		11,072			7,822
Trade and other payables		24		17,180			50,159

Total noncurrent liabilities				696,038			732,761

Current liabilities
Provisions		21		2,717			2,880
Lease liabilities		14		9,300			7,666
Borrowings		17.1		162,911			163,222
Salaries and payroll taxes		22		12,953			17,491
Income tax liability				82,336			44,625
Other taxes and royalties		23		13,431			11,372
Trade and other payables		24		196,561			138,482

Total current liabilities				480,209			385,738

Total liabilities				1,176,247			1,118,499

Total equity and liabilities				1,835,240			1,683,758

Notes 1 through 29 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 six-month period ended June 30, 2022

(Amounts expressed in thousands of US Dollars)


	Capital stock			Legal reserve		Share-based payments ⁽¹⁾		Share repurchase reserve		Other accumulated comprehensive 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		—			—		—		—		—			117,370			117,370
Other comprehensive income for the period		—			—		—		—		(2,050	)		—			(2,050	)

Total comprehensive income		—			—		—		—		(2,050	)		117,370			115,320

Ordinary and Extraordinary General Shareholders’ meeting on April 26, 2022 ⁽²⁾:
Creation of legal reserve		—			1,255		—		—		—			(1,255	)		—
Creation of share repurchase reserve		—			—		—		23,840		—			(23,840	)		—
Share repurchase ⁽²⁾		(23,804	)		—		—		—		—			—			(23,804	)
Share-based payments		1			—		2,217		—		—			—			2,218

Amounts as of June 30, 2022		562,903			1,255		33,818		23,840		(8,026	)		45,203			658,993

⁽¹⁾	Including 7,175 share-based payment expenses (Note 7), net of tax charges.

⁽²⁾	See Note 20.

Notes 1 through 29 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 six-month period ended June 30, 2021

(Amounts expressed in thousands of US Dollars)


	Capital stock		Share-based payments ⁽¹⁾		Other accumulated comprehensive losses			Accumulated profit (losses)			Total equity
Amounts as of December 31, 2020		659,400		23,046		(3,511	)		(170,417	)		508,518

Profit for the period		—		—		—			10,363			10,363
Other comprehensive income for the period		—		—		(1,235	)		—			(1,235	)

Total comprehensive income		—		—		(1,235	)		10,363			9,128

Share-based payments		—		4,111		—			—			4,111

Amounts as of June 30, 2021		659,400		27,157		(4,746	)		(160,054	)		521,757

⁽¹⁾	Including 5,641 share-based payment expenses (Note 7), net of tax charges.

Notes 1 through 29 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 six-month periods ended June 30, 2022 and 2021

(Amounts expressed in thousands of US Dollars)


	Notes		Period from January 1, through June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Cash flows from operating activities
Profit for the period, net				117,370			10,363			101,836			5,505
Adjustments to reconcile net cash flows
Items related to operating activities:
(Reversal of) allowance for expected credit losses		6		(36	)		29			—			29
Net changes in foreign exchange rate		10.3		(20,487	)		(8,815	)		(13,791	)		(1,411	)
Discount for well plugging and abandonment		10.3		1,208			1,174			556			613
Net increase in provisions		9.2		1,511			815			523			153
Interest expense on lease liabilities		10.3		1,066			534			519			234
Discount of assets and liabilities at present value		10.3		4,122			(2,715	)		3,441			390
Share-based payments		7		7,175			5,641			4,834			2,627
Employee benefits		25		209			86			105			43
Income tax expense		15		76,608			30,661			49,299			26,903
Items related to investing activities:
Depreciation and depletion		12/14		103,271			94,131			57,205			50,187
Amortization of intangible assets		13		1,533			1,615			777			829
Interest income		10.1		(90	)		(8	)		(74	)		(4	)
Gain from farmout agreement		9.1		(9,169	)		(4,525	)		(9,169	)		(4,525	)
Changes in the fair value of financial assets		10.3		1,750			(7,215	)		1,169			(141	)
Items related to financing activities:
Interest expense		10.2		15,597			29,157			7,365			12,399
Changes in the fair value of warrants		10.3		5,589			1,352			(17,188	)		1,283
Amortized cost		10.3		1,071			2,923			538			705
Remeasurement in borrowings		10.3		22,537			5,567			13,858			4,927
Changes in working capital:
Trade and other receivables				(19,515	)		(4,182	)		(14,697	)		26,161
Inventories				651			1,344			3,306			(1,761	)
Trade and other payables				7,973			10,933			5,422			3,197
Payments of employee benefits		25		(113	)		(280	)		(56	)		(68	)
Salaries and payroll taxes				(9,064	)		(4,193	)		1,967			1,529
Other taxes and royalties				4,616			(8,210	)		885			(11,483	)
Provisions				(1,066	)		(803	)		(325	)		(689	)
Income tax payment				(35,973	)		(2,788	)		(32,826	)		(1,642	)

Net cash flows provided by operating activities				278,344			152,591			165,479			115,990

Cash flows from investing activities:
Payments for acquisitions of property, plant and equipment				(177,956	)		(164,754	)		(99,766	)		(84,898	)
Payments for acquisitions of other intangible assets		13		(1,657	)		(761	)		(730	)		(650	)
Payments received from farmout agreement		9.1		10,000			5,000			10,000			5,000
Payments for acquisitions of investments in associates				(770	)		—			—			—
Payments for the acquisition of AFBN assets		1.2.1		(102,500	)		—			(12,500	)		—
Interest received				90			8			74			4

Net cash flows (used in) investing activities				(272,793	)		(160,507	)		(102,922	)		(80,544	)

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

Unaudited interim condensed consolidated statements of cash flows for the six-month periods ended June 30, 2022 and 2021

(Amounts expressed in thousands of US Dollars)


	Notes		Period from January 1, through June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Cash flows from financing activities:
Proceeds from borrowings		17.2		76,170			199,698			43,500			78,254
Payment of borrowings cost		17.2		(584	)		(2,711	)		(530	)		(747	)
Payment of borrowings principal		17.2		(86,725	)		(129,493	)		(24,173	)		(30,556	)
Payment of borrowings interest		17.2		(19,748	)		(25,392	)		(4,535	)		(5,834	)
Payment of lease		14		(5,446	)		(3,990	)		(2,770	)		(2,138	)
Share repurchase		20.2		(23,804	)		—			(23,804	)		—

Net cash flow (used in) provided by financing activities				(60,137	)		38,112			(12,312	)		38,979

Net (decrease) increase in cash and cash equivalents				(54,586	)		30,196			50,245			74,425
Cash and cash equivalents at beginning of period		19		311,217			201,314			204,372			163,237
Effect of exposure to changes in the foreign currency rate of cash and cash equivalents				(8,071	)		5,000			(6,057	)		(1,152	)
Net (decrease) increase in cash and cash equivalents				(54,586	)		30,196			50,245			74,425

Cash and cash equivalents at end of period		19		248,560			236,510			248,560			236,510

Significant transactions that generated no cash flows
Acquisition of property, plant and equipment through increase in trade and other payables				137,336			68,948			137,336			68,948
Changes in well plugging and abandonment with an impact in property, plant and equipment		12		(3,753	)		(2,469	)		(1,010	)		(773	)

Notes 1 through 29 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 June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

(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 CV”.

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 July 26, 2022.

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, 2021.

1.2 Significant transactions for the period

1.2.1 Acquisition of 50% of operated working interest in the unconventional concessions of Aguada Federal and Bandurria Norte in Vaca Muerta (“acquisition of AFBN assets”)

On January 17, 2022, the Company, through its subsidiary Vista Energy Argentina S.A.U, formerly known as Vista Oil & Gas Argentina S.A.U (“Vista Argentina”), acquired a 50% operated working interest in the Aguada Federal and Bandurria Norte concessions (“the Assets”), from Wintershall.

Vista agreed to pay a purchase price of 140,000, of which 90,000 was paid on the date of the transaction, and the remaining 50,000 will be payable in 8 (eight) equal quarterly instalments starting on April 2022. During the six-month period ended June 30, 2022, Vista paid to Wintershall, 2 (two) equal instalments of 6,250, and the liabilities related to such transaction stand at 35,226, recognized at present value (see Note 24).

As result of this transaction, Vista recognized an addition of 69,003 in “Property, plant and equipment” (see Note 12), and the transaction effectively cancels the carry consideration of 77,000 the Company had assumed on September 16, 2021.

The effective date of the transaction is January 1, 2022. However, the final closing shall take place upon the issuance of a decree by the Province of Neuquén approving the assignment of the Assets to Vista. As of the date of issuance of these unaudited consolidated interim financial statements the decree is pending approval.

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 June 30, 2022 and December 31, 2021, and for the six-month periods ended June 30, 2022 and 2021 were prepared in accordance with the International Accounting Standard (“IAS”) 34 – “Interim Financial Reporting”. 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 June 30, 2022, and the results of operations for the six-month period ended June 30, 2022. 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, 2021.

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

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, 2021, 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 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 1.2.1 there were no changes in interest in Company subsidiaries during the six-month period ended June 30, 2022.

2.4 Summary of significant accounting policies

2.4.1 Going concern

The Board oversees the Group’s cash position regularly and liquidity risk throughout the year to ensure that there are sufficient funds to meet expected financing, operating and investing requirements. Sensitivity tests are conducted to disclose the latest expense expectations, oil and gas prices and other factors so that the Group may manage risk.

Considering the macroeconomic context, the result of operations and the Group’s cash position, as of June 30, 2022, and December 31, 2021, the Directors asserted, upon approving the financial statements, that the Group may reasonably be expected to fulfill its obligations in the foreseeable future. Therefore, these interim condensed consolidated financial statements were prepared on a going concern basis.

2.4.2 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 one CGU in Mexico: (i) operated concessions of conventional oil and gas exploration and production.

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 June 30, 2022 and December 31, 2021, the Company did not identify indications of impairment.

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”)

As of June 30, 2022, and December 31, 2021, the Company received a net amount of 911 and 3,660 and the receivables related to such plan stand at 3,096 and 1,729, respectively (see Note 16).

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

The Secretariat of Energy of Argentina (“SE”) authorized 5 Mcm/day of exports additional to the permits issued pursuant to Resolution No. 360/21 on December 2021. During the six-month period ended June 30, 2022, the Company export a total of 15 Mcm to Chile.

Other than mentioned above, there have been no significant changes in Argentina’s regulatory framework for the six-month period ended June 30, 2022 (see Note 2.5 to the annual consolidated financial statements as of December 31, 2021).

B-

Mexico

There have been no significant changes in Mexico’s regulatory framework for the six-month period ended June 30, 2022 (see Note 2.5 to the annual consolidated financial statements as of December 31, 2021).

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 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 liquefied petroleum gas (“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 six-month periods ended June 30, 2022 and 2021, the Company generated 98% and 99% of its revenues related to assets located in Argentina, and 2% and 1% in 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 June 30, 2022		As of December 31, 2021
Argentina		1,455,586		1,260,851
Mexico		50,415		47,837

Total noncurrent assets		1,506,001		1,308,688

Note 4. Revenue from contracts with customers

Period
from
January 1,
through
June 30,
2022

Period
from
January 1,
through
June 30,
2021

Period
from
April 1,
through
June 30,
2022

Period
from
April 1,
through
June 30,
2021

Goods sold

502,213

281,178

294,293

165,277

Total revenue from contracts with customers

502,213

281,178

294,293

165,277

Recognized at a point in time

502,213

281,178

294,293

165,277

4.1 Information broken down by revenue from contracts with customers


Type of products	Period from January 1, through June 30, 2022		Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Revenues from crude oil sales		470,646		257,064		277,017		149,862
Revenues from natural gas sales		28,928		22,370		15,908		14,486
Revenues from LPG sales		2,639		1,744		1,368		929

Total revenue from contracts with customers		502,213		281,178		294,293		165,277

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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


Distribution channels	Period from January 1, through June 30, 2022		Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Refineries		246,556		177,610		130,028		123,111
Exports from crude oil		224,090		79,454		146,989		26,751
Natural gas for electric power generation		10,681		8,230		4,737		4,278
Retail natural gas distribution companies		8,536		7,804		6,551		5,848
Industries		6,484		6,336		3,835		4,360
Exports from natural gas		3,227		—		785		—
LPG sales		2,639		1,744		1,368		929

Total revenue from contracts with customers		502,213		281,178		294,293		165,277

Note 5. Cost of sales

5.1 Operating costs


	Period from January 1, through June 30, 2022		Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Fees and compensation for services		30,006		25,729		15,506		13,500
Salaries and payroll taxes		10,517		6,972		5,459		3,867
Consumption of materials and spare parts		8,561		7,229		4,322		4,066
Easements and fees		5,836		4,467		2,458		2,426
Employee benefits		2,869		2,137		1,473		1,129
Transport		2,645		1,310		1,442		685
Other		2,134		1,764		1,069		795

Total operating costs		62,568		49,608		31,729		26,468

5.2 Crude oil stock fluctuation


	Period from January 1, through June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Crude oil stock at beginning of period (Note 18)		5,222			6,127			7,877			3,027
Less: Crude oil stock at end of period (Note 18)		(4,571	)		(4,787	)		(4,571	)		(4,787	)

Total crude oil stock fluctuation		651			1,340			3,306			(1,760	)

Note 6. Selling expenses


	Period from January 1, through June 30, 2022			Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Transport		12,168			8,791		6,659		5,114
Taxes, rates and contributions		7,937			5,929		4,353		4,209
Tax on bank account transactions		3,780			2,744		1,820		1,309
Fees and compensation for services		3,161			909		1,612		329
(Reversal of) allowances for expected credit losses		(36	)		29		—		29

Total selling expenses		27,010			18,402		14,444		10,990

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

Note 7. General and administrative expenses


	Period from January 1, through June 30, 2022		Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Salaries and payroll taxes		8,767		6,328		4,217		3,932
Share-based payments		7,175		5,641		4,834		2,627
Employee benefits		4,946		3,489		2,784		2,033
Fees and compensation for services		4,770		3,084		2,696		1,709
Institutional promotion and advertising		941		575		622		305
Taxes, rates and contributions		613		211		63		92
Other		1,139		593		672		372

Total general and administrative expenses		28,351		19,921		15,888		11,070

Note 8. Exploration expenses

Period from
January 1,
through June
30, 2022

Period from
January 1,
through June
30, 2021

Period from
April 1,
through June
30, 2022

Period from
April 1,
through June
30, 2021

Geological and geophysical expenses

392

284

187

125

Total exploration expenses

392

284

187

125

Note 9. Other operating income and expenses

9.1 Other operating income


	Period from January 1, through June 30, 2022		Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Gain from farmout agreement ⁽¹⁾		9,169		4,525		9,169		4,525
Other services charges ⁽²⁾		4,551		1,989		1,786		1,340

Total other operating income		13,720		6,514		10,955		5,865

⁽¹⁾

For the six-period ended June 30, 2022 and 2021, including 10,000 and 5,000 of payments received by Trafigura Argentina S.A., related to the farmout agreement, net of disposals of oil and gas properties and goodwill for 772 and 59, and 441 and 34, respectively. See Note 12 and 13. (See Note 1.2 to the Company’s annual consolidated financial statements as of December 31, 2021).

⁽²⁾	Services not directly related to the Company’s main activity.

9.2 Other operating expenses


	Period from January 1, through June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Provision for environmental remediation		(895	)		(478	)		(198	)		(162	)
Restructuring expenses ⁽¹⁾		(531	)		(528	)		(259	)		(141	)
(Reversal of) provision for materials and spare parts obsolescence		(316	)		(267	)		(299	)		47
Provision for contingencies		(300	)		(70	)		(26	)		(38	)

Total other operating expenses		(2,042	)		(1,343	)		(782	)		(294	)

⁽¹⁾	The Company booked restructuring expenses including payments, fees and transaction costs related to the changes in the Group’s structure.

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

Note 10. Financial income (expense), net

10.1 Interest income


	Period from January 1, through June 30, 2022		Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Financial interest		90		8		74		4

Total interest income		90		8		74		4

10.2 Interest expense


	Period from January 1, through June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Borrowings interest (Note 17.2)		(15,597	)		(29,157	)		(7,365	)		(12,399	)

Total interest expense		(15,597	)		(29,157	)		(7,365	)		(12,399	)

10.3 Other financial income (expense)


	Period from January 1, through June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Amortized cost (Note 17.2)		(1,071	)		(2,923	)		(538	)		(705	)
Changes in the fair value of warrants (Note 17.4.1)		(5,589	)		(1,352	)		17,188			(1,283	)
Net changes in foreign exchange rate		20,487			8,815			13,791			1,411
Discount of assets and liabilities at present value		(4,122	)		2,715			(3,441	)		(390	)
Changes in the fair value of financial assets		(1,750	)		7,215			(1,169	)		141
Interest expense on lease liabilities (Note 14)		(1,066	)		(534	)		(519	)		(234	)
Discount for well plugging and abandonment		(1,208	)		(1,174	)		(556	)		(613	)
Remeasurement in borrowings ⁽¹⁾ (Note 17.2)		(22,537	)		(5,567	)		(13,858	)		(4,927	)
Other		2,482			(1,444	)		3,677			204

Total other financial income (expense)		(14,374	)		5,751			14,575			(6,396	)

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

Note 11. Earnings per share

a) 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.

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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


	Period from January 1, through June 30, 2022		Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Profit for the period, net		117,370		10,363		101,836		5,505
Weighted average number of ordinary shares		88,651,787		88,035,902		88,491,745		88,199,082

Basic earnings per share (in USD per share)		1.324		0.118		1.151		0.062


	Period from January 1, through June 30, 2022		Period from January 1, through June 30, 2021		Period from April 1, through June 30, 2022		Period from April 1, through June 30, 2021
Profit for the period, net		117,370		10,363		101,836		5,505
Weighted average number of ordinary shares		95,718,213		92,043,587		96,006,635		92,882,746

Diluted earnings per share (in USD per share)		1.226		0.113		1.061		0.059

As of June 30, 2022, the Company holds the following ordinary shares 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:

21,666,667 Series A shares related to 65,000,000 Series A warrants;

ii.

9,893,333 Series A shares related to 29,680,000 warrants;

iii.

1,666,667 Series A shares related to 5,000,000 securities (Forward Purchase Agreement (“FPA”) and;

iv.

1,290,677 Series A shares to be used in the Long-Term Incentive Plan (“LTIP”).

There were no other transactions involving ordinary shares or dilutive potential ordinary shares between the reporting date and the date of authorization 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 June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

(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 six-month period ended June 30, 2022 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, 2021		2,709			23,070			446,291			1,174,699			91,245			27,796			1,765,810
Additions		—			67			—			2,658			198,970			30,280			231,975
Transfers		—			22			—			116,111			(89,400	)		(26,733	)		—
Disposals		—			(4	)		(873	)⁽¹⁾		(3,753	)⁽²⁾		—			(212	)		(4,842	)
Incorporation for the acquisition of AFBN assets		—			—			69,003	⁽³⁾		—			—			—			69,003

Amounts as of June 30, 2022		2,709			23,155			514,421			1,289,715			200,815			31,131			2,061,946

Accumulated depreciation
Amounts as of December 31, 2021		(294	)		(10,834	)		(53,623	)		(477,077	)		—			—			(541,828	)
Depreciation		(9	)		(1,942	)		(6,706	)		(91,171	)		—			—			(99,828	)
Disposals		—			3			101	⁽¹⁾		—			—			—			104

Amounts as of June 30, 2022		(303	)		(12,773	)		(60,228	)		(568,248	)		—			—			(641,552	)

Net value
Amounts as of June 30, 2022		2,406			10,382			454,193			721,467			200,815			31,131			1,420,394

Amounts as of December 31, 2021		2,415			12,236			392,668			697,622			91,245			27,796			1,223,982

⁽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 June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

(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 six-month period ended June 30, 2022:


	Goodwill			Other intangible assets
Cost
Amounts as of December 31, 2021		28,416			12,216
Additions		—			1,657
Disposals ⁽¹⁾		(59	)		—

Amounts as of June 30, 2022		28,357			13,873

Accumulated amortization
Amounts as of December 31, 2021		—			(8,338	)
Amortization		—			(1,533	)

Amounts as of June 30, 2022		—			(9,871	)

Net value
Amounts as of June 30, 2022		28,357			4,002

Amounts as of December 31, 2021		28,416			3,878

⁽¹⁾	See Note 9.1.

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

The Company has lease contracts for various items of buildings, and plant and machinery, which were recognized under IFRS 16.

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., on the date when the underlying asset is available for use). Right-of-use assets are measured at cost, net of the accumulated depreciation and impairment losses, and are adjusted by the remeasurement of lease liabilities.

Unless the Company is reasonably certain that it will obtain the ownership of the leased asset at the end of the lease term, recognized right-of-use assets are depreciated under the straight-line method during the shortest of its estimated useful life and the lease term. Right-of-use assets are subject to impairment.

At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of the lease payments to be made during the lease term. After the commencement date, of lease liabilities will be increased to reflect the accumulation of interest and will be reduced by the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is an amendment, a change in the lease term, a change in the fixed or in-substance fixed payments or a change in the assessment to buy the underlying asset.

The carrying amount of the Company’s right-of-use assets and lease liabilities, as well as the changes for the six-month period ended June 30 2022, are detailed below:


	Right-of-use assets									Total lease liabilities
	Buildings			Plant and machinery			Total			Total lease liabilities
Amounts as of December 31, 2021		1,211			25,243			26,454			(27,074	)
Re-estimations		144			4,261			4,405			(4,405	)
Depreciation ⁽¹⁾		(244	)		(4,133	)		(4,377	)		—
Payments		—			—			—			5,446
Interest expense ⁽²⁾		—			—			—			(1,934	)

Amounts as of June 30, 2022		1,111			25,371			26,482			(27,967	)

⁽¹⁾	Including the depreciation of drilling services capitalized as “Works in progress” for 934.

⁽²⁾	Including drilling agreements capitalized as “Works in progress” for 868.

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

The Company applies the exemption to recognize short-term leases of machinery and equipment (i.e., leases for a term under 12 months as from the commencement date and do not contain a purchase option). The low-value asset exemption also applies to low-value office equipment items. The lease payments on short-term leases and leases of low-value assets are recognized as expenses under the straight-line method during the lease term.

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 92 and 67, for the six-month period ended June 30, 2022 and 2021, respectively.

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 June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Income tax
Current income tax		(78,192	)		(17,972	)		(51,633	)		(16,224	)
Deferred income tax related to the origination and reversal of temporary differences		1,584			(12,689	)		2,334			(10,679	)

Income tax (expense) disclosed in the statement of profit or loss		(76,608	)		(30,661	)		(49,299	)		(26,903	)

Deferred income tax charged to other comprehensive income		1,104			1,385			1,059			1,361

Total income tax (expense)		(75,504	)		(29,276	)		(48,240	)		(25,542	)

For the six-months periods ended June 30, 2022, the Company’s effective rate was 39%. The significant differences between the effective and statutory rate include (i) the application of the tax adjustment for inflation in Argentina and (ii) the depreciation of the Argentine peso (“ARS”) with respect to the USD affecting the Company’s tax deductions of nonmonetary assets (see Note 33.1 to the annual consolidated financial statements as of December 31, 2021).

Note 16. Trade and other receivables


	As of June 30, 2022		As of December 31, 2021
Noncurrent
Other receivables:
Prepayments, tax receivables and other:
Prepayments and other receivables		14,213		15,236
Value added tax (“VAT”)		3,957		4,010
Turnover tax		706		765

		18,876		20,011
Financial assets:
Loans to employees		114		199

		114		199

Total noncurrent trade and other receivables		18,990		20,210

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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


	As of June 30, 2022		As of December 31, 2021
Current
Trade:
Oil and gas accounts receivable (net of allowance for expected credit losses)		33,079		25,224

		33,079		25,224

Other receivables:
Prepayments, tax credits and other:
Prepaid expenses		7,011		3,633
VAT		5,698		9,131
Income tax		3,967		860
Turnover tax		346		42

		17,022		13,666
Financial assets:
Receivables from joint operations		3,189		2,286
Gas IV Plan (Note 2.5.1.1)		3,096		1,729
Accounts receivable from third parties		1,878		2,025
LPG price stability program		383		293
Advances to directors and loans to employees		312		491
Other		312		382

		9,170		7,206

Other receivables		26,192		20,872

Total current trade and other receivables		59,271		46,096

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.

In general, accounts receivable has a 15-day term for sales of oil and a 60-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 June 30, 2022 and December 31, 2021 an allowance for expected credit losses was recorded for 328 and 406 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 June 30, 2022		As of December 31, 2021
Noncurrent
Borrowings		439,593		447,751

Total noncurrent		439,593		447,751
Current
Borrowings		162,911		163,222

Total current		162,911		163,222

Total Borrowings		602,504		610,973

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

(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 June 30, 2022		As of December 31, 2021
Fixed interest
Less than 1 year		140,562		109,016
From 1 to 2 years		144,060		112,860
From 2 to 5 years		202,586		214,491
Over 5 years		70,447		75,468

Total		557,655		511,835
Variable interest
Less than 1 year		22,349		54,206
From 1 to 2 years		22,500		44,932

Total		44,849		99,138

Total Borrowings		602,504		610,973

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

The carrying amount of borrowings as of June 30, 2022 of the Company through its subsidiary Vista Argentina, is as follows:

Company

Execution date

Currency

Principal

Interest

Annual
rate

Maturity date

Carrying
amount

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

July, 2018

USD

150,000

Variable

LIBOR

+ 4.5

July, 2023

114,558

⁽¹⁾

150,000

Fixed

Banco BBVA

July, 2019

USD

15,000

Fixed

9.40

July, 2022

1,693

Santander International

January, 2021

USD

11,700

Fixed

1.80

January, 2026

⁽²⁾

Santander International

July, 2021

USD

43,500

Fixed

2.05

July, 2026

⁽²⁾

Santander International

January, 2022

USD

13,500

Fixed

2.45

January, 2027

⁽²⁾

ConocoPhillips Petroleum Holding B.V.

January, 2022

USD

25,000

Fixed

2.00

September, 2026

25,275

⁽¹⁾	See Note 29.

⁽²⁾	The carrying amount is related to interest and the principal is collateralized.

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

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 negotiable obligations (“ON” by its Spanish acronym) as of June 30, 2022:


Instrument	Execution date		Currency			Principal		Interest		Annual rate			Maturity date		Carrying amount
ON II		August, 2019		USD			50,000		Fixed		8.5	%		August, 2022		50,621
ON III		February, 2020		USD			50,000		Fixed		3.5	%		February, 2024		50,375
ON V		August, 2020		USD			20,000		Fixed		0	%		August, 2023		19,910
		December, 2020		USD			10,000		Fixed		0	%		August, 2023		9,953
ON VI		December, 2020		USD			10,000		Fixed		3.24	%		December, 2024		9,953
ON VII		March, 2021		USD			42,371		Fixed		4.25	%		March, 2024		42,079
ON VIII		March, 2021		ARS	⁽¹⁾		3,054,537		Fixed		2.73	%		September, 2024		44,467
ON IX		June, 2021		USD			38,787		Fixed		4.00	%		June, 2023		38,646
ON X		June, 2021		ARS	⁽¹⁾		3,104,063		Fixed		4.00	%		March, 2025		40,118
ON XI		August, 2021		USD			9,230		Fixed		3.48	%		August, 2025		9,205
ON XII		August, 2021		USD			100,769		Fixed		5.85	%		August, 2031		102,430
ON XIII		June, 2022		USD			43,500		Fixed		6.00	%		August, 2024		43,079

⁽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 June 30, 2022			As of December 31, 2021
Amounts at beginning of period / year		610,973			539,786
Proceeds from borrowings		76,170			361,203
Borrowings interest ⁽¹⁾ (Note 10.2)		15,597			50,660
Payment of borrowings cost		(584	)		(3,326	)
Payment of borrowings interest		(19,748	)		(54,636	)
Payment of borrowings principal		(86,725	)		(284,695	)
Amortized cost ⁽¹⁾ (Note 10.3)		1,071			4,164
Remeasurement in borrowings ⁽¹⁾ (Note 10.3)		22,537			19,163
Changes in foreign exchange rate ⁽¹⁾		(16,787	)		(21,346	)

Amounts at end of period / year		602,504			610,973

⁽¹⁾	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 June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

(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 June 30, 2022	Financial assets / liabilities at amortized cost		Financial assets / liabilities FVTPL		Total financial assets / liabilities
Assets
Plan assets (Note 25)		1,298		5,794		7,092
Trade and other receivables (Note 16)		114		—		114

Total noncurrent financial assets		1,412		5,794		7,206

Cash, bank balances and other short-term investments (Note 19)		176,679		74,375		251,054
Trade and other receivables (Note 16)		42,249		—		42,249

Total current financial assets		218,928		74,375		293,303

Liabilities
Borrowings (Note 17.1)		439,593		—		439,593
Trade and other payables (Note 24)		17,180		—		17,180
Warrants (Note 17.4)		—		8,133		8,133
Lease liabilities (Note 14)		18,667		—		18,667

Total noncurrent financial liabilities		475,440		8,133		483,573

Borrowings (Note 17.1)		162,911		—		162,911
Trade and other payables (Note 24)		196,561		—		196,561
Lease liabilities (Note 14)		9,300		—		9,300

Total current financial liabilities		368,772		—		368,772


As of December 31, 2021	Financial assets / liabilities at amortized cost		Financial assets / liabilities FVTPL		Total financial assets / liabilities
Assets
Plan assets (Note 25)		7,594		—		7,594
Trade and other receivables (Note 16)		199		—		199

Total noncurrent financial assets		7,793		—		7,793

Cash, bank balances and other short-term investments (Note 19)		185,546		129,467		315,013
Trade and other receivables (Note 16)		32,430		—		32,430

Total current financial assets		217,976		129,467		347,443

Liabilities
Borrowings (Note 17.1)		447,751		—		447,751
Trade and other payables (Note 24)		50,159		—		50,159
Warrants (Note 17.4)		—		2,544		2,544
Lease liabilities (Note 14)		19,408		—		19,408

Total noncurrent financial liabilities		517,318		2,544		519,862

Borrowings (Note 17.1)		163,222		—		163,222
Trade and other payables (Note 24)		138,482		—		138,482
Lease liabilities (Note 14)		7,666		—		7,666

Total current financial liabilities		309,370		—		309,370

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

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

For the six-month period ended June 30, 2022:


	Financial assets / liabilities at amortized cost			Financial assets / liabilities at FVTPL			Total
Interest income (Note 10.1)		90			—			90
Interest expense (Note 10.2)		(15,597	)		—			(15,597	)
Amortized cost (Note 10.3)		(1,071	)		—			(1,071	)
Changes in the fair value of warrants (Note 10.3)		—			(5,589	)		(5,589	)
Net changes in foreign exchange rate (Note 10.3)		20,487			—			20,487
Discount of assets and liabilities at present value (Note 10.3)		(4,122	)		—			(4,122	)
Changes in the fair value of financial assets (Note 10.3)		—			(1,750	)		(1,750	)
Interest expense on lease liabilities (Note 10.3)		(1,066	)		—			(1,066	)
Discount for well plugging and abandonment (Note 10.3)		(1,208	)		—			(1,208	)
Remeasurement in borrowings (Note 10.3)		(22,537	)		—			(22,537	)
Other (Note 10.3)		2,482			—			2,482

Total		(22,542	)		(7,339	)		(29,881	)

For the six-month period ended June 30, 2021:


	Financial assets/liabilities at amortized cost			Financial assets/liabilities at FVTPL			Total
Interest income (Note 10.1)		8			—			8
Interest expense (Note 10.2)		(29,157	)		—			(29,157	)
Amortized cost (Note 10.3)		(2,923	)		—			(2,923	)
Changes in the fair value of warrants (Note 10.3)		—			(1,352	)		(1,352	)
Net changes in foreign exchange rate (Note 10.3)		8,815			—			8,815
Discount of assets and liabilities at present value (Note 10.3)		2,715			—			2,715
Changes in the fair value of financial assets (Note 10.3)		—			7,215			7,215
Interest expense on lease liabilities (Note 10.3)		(534	)		—			(534	)
Discount for well plugging and abandonment (Note 10.3)		(1,174	)		—			(1,174	)
Remeasurement in borrowings (Note 10.3)		(5,567	)		—			(5,567	)
Other (Note 10.3)		(1,444	)		—			(1,444	)

Total		(29,261	)		5,863			(23,398	)

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 June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

The following chart shows the Company’s financial assets and liabilities measured at fair value as of June 30, 2022 and December 31, 2021:

As of June 30, 2022

Level 1

Level 2

Level 3

Total

Assets

Financial assets at fair value through profit or loss

Short term investments

74,375

—

74,375

Plan assets

5,794

—

5,794

Total assets

80,169

—

80,169

As of June 30, 2022

Level 1

Level 2

Level 3

Total

Liabilities

Financial liabilities at fair value through profit or loss

Warrants

—

8,133

Total liabilities

—

8,133

As of December 31, 2021

Level 1

Level 2

Level 3

Total

Assets

Financial assets at fair value through profit or loss

Short term investments

129,467

—

129,467

Total assets

129,467

—

129,467

As of December 31, 2021

Level 1

Level 2

Level 3

Total

Liabilities

Financial liabilities at fair value through profit or loss

Warrants

—

2,544

Total liabilities

—

2,544

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, 2021, through June 30, 2022.

The fair value of warrants is determined using the Black & Scholes model considering the expected volatility of the Company’s ordinary shares upon estimating the future volatility of Company share price. The risk-free interest rate for the expected useful life of warrants is based on the available return of benchmark government bonds with an equivalent remainder term upon the grant. The expected life is based on the contractual terms.

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

The following assumptions were used in estimating the fair value of warrants as of June 30, 2022:


	As of June 30, 2022			As of December 31, 2021
Annualized volatility		40.79	%		39.94	%
Risk free domestic interest rate		9.53	%		7.15	%
Risk free foreign interest rate		2.89	%		0.55	%
Remainder useful life in years		0.77 years			1.29 years

It is a recurring Level 3 fair value measurement. The key Level 3 inputs used by Management to assess fair value are market price and expected volatility. As of June 30, 2022: (i) should market price increase by 0.10 it would increase the obligation by about 619; (ii) should market price decrease by 0.10 it would drop the obligation by about 590; (iii) should volatility increase by 50 basis points, it would rise the obligation by about 268 and; (iv) should volatility slip by 50 basis points, it would reduce the obligation by about 249.

Reconciliation of level 3 measurements at fair value:


	As of June 30, 2022		As of December 31, 2021
Warrants liability amount at beginning of period:		2,544		362
Loss from changes in the fair value of warrants (Note 10.3)		5,589		2,182

Amount at end of period		8,133		2,544

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 June 30, 2022

Carrying
amount

Fair
value

Level

Liabilities

Borrowings

602,504

540,232

Total liabilities

602,504

540,232

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, 2021, except for the following:

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

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 June 30, 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 period between January 1, 2022, and June 30, 2022, ARS depreciated by about 22%.

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 June 30, 2022
Changes in interest rates in Argentine pesos		+/- 28%
Effect on profit or loss		(49,563) / 49,563
Effect on equity		(49,563) / 49,563

Interest rate risk

For the six-month period ended June 30, 2022 the average interest rate was 45%.

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 June 30, 2022 and December 31, 2021, about 7% and 16% of indebtedness was subject to variable interest rates. For the six-month period ended June 30, 2022 and for the year ended December 31, 2021, the variable interest rate of loans denominated in USD stood at 4.65% and 4.81%, respectively, and it amounted to 36.31% and 35.55%, respectively, for loans denominated in ARS.

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.

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 six-month period ended June 30, 2022 and for the year ended December 31, 2021, the Company did not use derivative financial instruments to mitigate interest rate risks.

Note 18. Inventories


	As of June 30, 2022		As of December 31, 2021
Materials and spare parts		14,343		8,739
Crude oil stock (Note 5.2)		4,571		5,222

Total		18,914		13,961

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

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


	As of June 30, 2022		As of December 31, 2021
Cash in banks		98,493		78,098
Money market funds		76,454		106,915
Mutual funds		73,613		126,204
Government bonds		2,494		3,796

Total		251,054		315,013

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 June 30, 2022			As of December 31, 2021
Cash, bank balances and other short-term investments		251,054			315,013
Less
Government bonds		(2,494	)		(3,796	)

Cash and cash equivalents		248,560			311,217

Note 20. Equity

20.1 Capital stock

The following chart shows a reconciliation of the movements in the Company’s capital stock for the period ended as of June 30, 2022:


	Series A			Series C		Total
Amounts as of December 31, 2021		586,706			—		586,706
Number of shares		88,629,877			2		88,629,879

Series A shares to be granted in LTIP		1			—		1
Number of shares		711,748			—		711,748
Share repurchase (Note 20.2)		(23,804	)		—		(23,804	)
Number of shares repurchased		(2,834,163	)		—		(2,834,163	)

Amounts as of June 30, 2022		562,903			—		562,903
Number of shares		86,507,462			2		86,507,464

20.2 Legal reserve and share repurchase reserve

Under Mexican Business Associations Law, the Company is required to allocate 5% of net profit for the year to increase the legal reserve until it is equal to 20% of capital based on the Company’s individual financial statements.

On April 26, 2022, through the ordinary and extraordinary General Shareholders’ Meeting, the Company’s shareholders approved the creation of a fund to acquire own shares for 23,840, and the creation of the legal reserve for 1,255, both based on the Company’s individual financial statements.

During the six-month period ended June 30, 2022, the Company repurchased 2,834,163 Series A shares for 23,804, which, as of the date of issuance of these condensed consolidated financial statements, are held in Treasury.

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

Note 21. Provisions


	As of June 30, 2022		As of December 31, 2021
Noncurrent
Well plugging and abandonment		26,390		28,920
Environmental remediation		1,013		737

Total noncurrent		27,403		29,657


	As of June 30, 2022		As of December 31, 2021
Current
Well plugging and abandonment		1,863		1,876
Environmental remediation		689		862
Contingencies		165		142

Total current		2,717		2,880

Note 22. Salaries and payroll taxes


	As of June 30, 2022		As of December 31, 2021
Current
Provision for bonuses and incentives		7,438		12,102
Salaries and social security contributions		5,515		5,389

Total current		12,953		17,491

Note 23. Other taxes and royalties


	As of June 30, 2022		As of December 31, 2021
Current
Royalties		11,856		9,547
Tax withholdings		1,529		873
VAT		—		33
Other		46		919

Total current		13,431		11,372

Note 24. Trade and other payables


	As of June 30, 2022		As of December 31, 2021
Noncurrent
Other accounts payables:
Payables to third parties ⁽¹⁾		17,180		—
Payables to partners of joint operations ⁽²⁾		—		50,159

Total other noncurrent accounts payable		17,180		50,159

Total noncurrent		17,180		50,159

Current
Accounts payable:
Suppliers		177,910		119,255

Total current accounts payables		177,910		119,255

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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


	As of June 30, 2022		As of December 31, 2021
Other accounts payables:
Payables to third parties ⁽¹⁾		18,200		—
Payables to partners of joint operations ⁽²⁾		46		19,007
Extraordinary fee for Gas IV Plan (Note 2.5.1.1)		405		220

Total other current accounts payables		18,651		19,227

Total current		196,561		138,482

⁽¹⁾	As of June 30, 2022 including 17,180 and 18,046 in noncurrent and current accounts, respectively, related to the agreement mentioned in Note 1.2.1, recognized at present value.

⁽²⁾	As of December 31, 2021, including 50,159 and 18,913 in noncurrent and current accounts, respectively, related to the carry agreement, recognized at present value (see Note 1.5 to the annual consolidated financial statements as of December 31, 2021).

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 June 30, 2022			Period from January 1, through June 30, 2021			Period from April 1, through June 30, 2022			Period from April 1, through June 30, 2021
Cost of services		(21	)		(11	)		(11	)		(6	)
Cost of interest		(188	)		(75	)		(94	)		(37	)

Total		(209	)		(86	)		(105	)		(43	)


	As of June 30, 2022
	Present value of the obligation			Plan assets			Net liabilities
Amounts at beginning of period		(15,416	)		7,594			(7,822	)
Items classified as loss or profit
Cost of services		(21	)					(21	)
Cost of interest		(370	)		182			(188	)
Items classified in other comprehensive income
Actuarial remediation (losses)		(2,923	)		(231	)		(3,154	)
Benefit payments		566			(566	)		—
Payment of contributions		—			113			113

Amounts at end of period		(18,164	)		7,092			(11,072	)

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


	As of June 30, 2022		As of December 31, 2021
US government bonds		5,794		—
Cash and cash equivalents		1,298		7,594

Total		7,092		7,594

See Note 23 to the Company’s annual consolidated financial statements as of December 31, 2021.

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

Notes to the unaudited interim condensed consolidated financial statements as of June 30, 2022 and December 31, 2021 and for the six-month periods ended June 30, 2022 and 2021

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

Note 26. Related parties transactions and balances

As of June 30, 2022, and December 31, 2021, 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, 2021.

Note 2.3 to the Company’s annual consolidated financial statements as of December 31, 2021 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 six-months period ended June 30, 2022. For a description on the Company’s contingencies and investment commitments related to its oil and gas properties see Notes 29 and 30 to the annual consolidated financial statements as of December 31, 2021.

Note 28. Tax regulations

There have been no significant changes in Argentina’s and Mexico’s tax regulations during the six-months period ended June 30, 2022 (see Note 33 to the annual consolidated financial statements as of December 31, 2021).

Note 29. Subsequent events

The Company assessed events subsequent to June 30, 2022, to determine the need of a potential recognition or disclosure in these interim condensed consolidated financial statements. The Company assessed such events through July 26, 2022, date in which these financial statements were made available for issue.

•

On July 5, 2022, Vista Argentina paid interest for a total amount of 186 corresponding to the loan agreement signed with Banco Santander International in July 2021 and January 2022.

•

On July 13, 2022, Vista Argentina paid interest for a total amount of 249 corresponding to the loan agreement signed with ConocoPhillips Petroleum Holding B.V.

•

On July 20, 2022, Vista Argentina paid principal and interest for a total amount of 25,215 corresponding to the Syndicated Loan.

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.