Mexico City-based Vista Energy, S.A.B. de C.V. (NYSE: VIST; BMV: VISTA), a player in the crude petroleum and natural gas industry, has repurchased 130,000 of its Series A shares, the company disclosed in a recent filing with the Securities and Exchange Commission. The transaction took place on Monday, at a price of $910.08 Mexican Pesos per share, totaling approximately 118.31 million Mexican Pesos, excluding fees and taxes.
This buyback, executed by Citibanamex Casa de Bolsa, S.A. de C.V., aligns with the authorization from the general ordinary shareholders' meeting on August 6, 2024. Following this repurchase, Vista Energy reports 95,905,885 Series A shares remaining in circulation, with 2,875,141 Series A shares held in Treasury as a result of the company's repurchase activities.
The company has not provided additional details regarding the strategic intent behind the share repurchase or its expected impact on the company's financial position. However, share buybacks are commonly used by companies to return value to shareholders and can potentially improve financial ratios such as earnings per share.
This article is based on a press release statement.
In other recent news, Vista reported a robust growth in its Q2 2024 results. Total production surged by 40% year-over-year to 65,300 barrels of oil equivalent per day, with oil production alone increasing by 46%. This surge in production was reflected in the company's total revenues for the quarter, which reached $397 million, marking a 66% increase compared to the same period last year. Adjusted EBITDA also saw a significant rise of 90% year-over-year to $288 million.
In addition to financial developments, Vista's CEO, Miguel Galuccio, provided updates on operational progress and plans. These include the expected arrival of a second frac crew from Schlumberger (NYSE:SLB) in Q4 and active participation in M&A opportunities, including Exxon (NYSE:XOM)'s asset divestment.
InvestingPro Insights
Following Vista Energy's recent share repurchase, insights from InvestingPro provide a deeper understanding of the company's financial health and market performance. Management's aggressive buyback strategy is a signal of their confidence in the company's value, as reflected in one of the InvestingPro Tips. Additionally, analysts are expecting sales growth in the current year, which may further justify the buyback decision and indicate potential for future appreciation.
Key real-time data from InvestingPro shows that Vista Energy has a market capitalization of $4.67 billion and trades at a P/E ratio of 10.64, suggesting a reasonable valuation relative to its earnings. The company's impressive gross profit margin of 76.14% in the last twelve months as of Q2 2024 underscores its efficiency in managing costs relative to revenue. Moreover, Vista Energy has experienced a substantial price increase over the last six months, with a 58.31% total return, indicating strong market momentum.
For investors considering Vista Energy, there are additional InvestingPro Tips available that delve into the company's financial nuances, such as its moderate level of debt and its performance relative to near-term earnings growth. In total, InvestingPro offers 15 tips for Vista Energy, providing a comprehensive analysis for those looking to make informed investment decisions. Investors can find these additional tips by visiting InvestingPro's dedicated page for Vista Energy at https://www.investing.com/pro/VIST.
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