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Vista Energy buys back shares, updates on holdings

EditorNatashya Angelica
Published 08/09/2024, 10:07 AM
VIST
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Mexico City, Mexico - Vista Energy, S.A.B. de C.V. (NYSE:VIST; BMV:VISTA), a player in the crude petroleum and natural gas industry, has announced the repurchase of 48,843 of its Series A shares. The transaction, conducted on Thursday, was part of a share buyback program authorized by shareholders earlier in the week on Monday.

The shares were acquired at a price of 852.38 Mexican Pesos per share, amounting to a total expenditure of approximately 41.6 million Mexican Pesos, excluding fees and value-added tax. Following this repurchase, Vista Energy now has 96,165,885 Series A shares outstanding and holds 2,615,141 Series A shares in Treasury.

The buyback was executed through Citibanamex Casa de Bolsa, S.A. de C.V., a brokerage firm within the Citibanamex financial group. This move is a financial strategy often used by companies to reduce the number of shares available on the market, potentially increasing the value of remaining shares and returning value to shareholders.

The company has communicated that any further inquiries regarding this transaction can be directed to their Investor Relations contacts provided in the press release statement. This share repurchase initiative reflects Vista Energy's ongoing efforts to manage its capital effectively and enhance shareholder value. The information provided is based on a report filed with the United States Securities and Exchange Commission.

In other recent news, Vista Oil & Gas has reported a robust growth in its Q2 2024 performance. The company's total production increased by 40% year-over-year to 65,300 barrels of oil equivalent per day, while oil production alone rose 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.

The adjusted EBITDA also saw a substantial rise of 90% year-over-year to $288 million. In addition, Vista's CEO, Miguel Galuccio, provided updates on operational progress and future plans, including the expected arrival of a second frac crew and updates to the 2025 forecast. Notably, the company is actively participating in M&A opportunities, including Exxon (NYSE:XOM)'s asset divestment. These are among the recent developments that highlight the company's commitment to sustained growth and strategic expansion.

InvestingPro Insights

Following Vista Energy's strategic share buyback, it's worth noting that the company's management has been actively enhancing shareholder value. According to InvestingPro Tips, analysts are anticipating sales growth in the current year, which could be a positive indicator for future performance.

Moreover, Vista Energy has demonstrated impressive gross profit margins, with a margin of 76.14% over the last twelve months as of Q2 2024, which is a testament to the company's efficiency in managing its costs relative to its revenue of $1.326 billion during the same period.

The company's P/E ratio stands at a competitive 9.9, suggesting that the stock could be undervalued relative to its near-term earnings growth. This is further supported by a PEG ratio of 0.35, indicating potential for investment value when factoring in the company's earnings growth rate. Investors should also note that Vista Energy operates with a moderate level of debt, which could signal a balanced approach to leveraging and financial risk management.

For those interested in deeper analysis, there are additional InvestingPro Tips available for Vista Energy, including insights on the company's trading patterns and profitability. With the company trading near its 52-week high and having returned 74.62% over the past year, these additional tips could provide valuable context for investors considering Vista Energy's stock.

InvestingPro also provides a fair value estimate of $48.31 for Vista Energy, which is slightly below the analyst target of $51.05, suggesting that the stock may have room to grow. For more detailed insights and tips, visit the InvestingPro platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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