Vista Oil & Gas, S.A.B. de C.V. (NYSE:VIST) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 09:00 am ET


Vista Oil & Gas, S.A.B. de C.V. (NYSE:VIST) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to Vista Oil & Gas Second Quarter 2020 Earnings and Webcast.

[Operator Instructions]

Now I would like to turn the conference over to Alejandro Chernacov, Strategic Planning and Investor Relations Officer.

Alejandro Chernacov

Thank you. Good morning, everyone. We are happy to welcome you to Vista's second quarter 2020 results call. I am here with Miguel Galuccio, Vista's Chairman and CEO; and Pablo Vera Pinto, Vista's CFO.

Before we begin, I would like to draw your attention to our cautionary statement on Slide 2. Please be advised that our remarks today, including the answers to your questions, may include forward-looking statement. These forward-looking statements are subject to risks and uncertainties that could cause actual results to be materially different from expectations contemplated by these remarks.

Our financial figures are stated in U.S. dollars and in accordance with International Financial Reporting Standards, IFRS. However, during this conference call, we may discuss certain non-IFRS financial measures such as adjusted EBITDA. Reconciliations of these measures to the closest IFRS measure can be found in the earnings release that we issued yesterday. Please check our website for further information.

Our Company, Vista Oil & Gas, is a Sociedad Anonima de Capital Variable organized under the laws of Mexico, registered in the Bolsa Mexicana de Valores and the New York Stock Exchange. The tickers of our common stock are VISTA in the Bolsa Mexicana de Valores and VIST in the New York Stock Exchange. The ticker of our warrant is VTW408A.

I will now turn the call over to Miguel.

Miguel Galuccio

Good morning, everyone, and thank you for joining this earnings call. Let me kick it off by highlighting that our COVID-19 business continuity plan is still in place, and that we are successfully keeping our team healthy and safe in these unprecedented times. I hope that you and your family are also staying safe.

During Q2, the global oil market has suffered record low prices and extremely high volatility, turning it into one of the most challenging quarters I have been through in more than 25 years of my oil and gas experience. Despite the enormous strain, we have managed to deliver positive results, particularly on the cost side as well as on the preservation of our balance sheet.

As I will show during the presentation, we have made cost savings and tactical moves with respect to storage and export markets that have allowed us to remain cash positive during the quarter. More importantly, we have made structural opex and capex cost reductions, which enabled us to grow in a lower oil price environment. We are now seeing light at the end of the tunnel with demand recovery signals and controlled supply leading to Brent level of $40-plus, earlier than most of us expected, and having stayed there for most part of June and July.

On the domestic front, the economic activity of Argentina has been affected by various strict quarantine measures, depressing local crude oil demand. In