Investor Presentation

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1 Investor Presentation

2 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 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

3 Vista s Company Overview Sizable and operated asset base Company Metrics Concentrated in Argentina s Premier Basin Revenues 2018E (1) EBITDA 2018E (1) Production Q P Reserves (2) Vaca Muerta Net Acreage $445 MM $190 MM 24.2 kboe/d 55.7 MMBoe ~134,000 acres Conventional assets with production base, infrastructure in place, and top-quality Vaca Muerta acreage ready for full scale development Eight operating and one non-operating clusters in the Neuquina basin Two non-operated blocks in Noroeste and Golfo San Jorge basins Neuquina Basin Blocks (5) Listed in Bolsa Mexicana de Valores: VISTA and VTW408A Total Shares Outstanding: 70.4 MM (3) 6 th largest oil producer in Argentina (4) 20% 48% 5% 3% 4% 3% 17% OTHERS 1. Based on Company estimates. 2. Reserves as of December 31, 2016, based on Ministerio de Energía y Minería (Presidencia de la Nación) ,409,315 Class A Shares and 2 Class C Shares. 4. Average Q production, based on Ministerio de Hacienda, Secretaría de Energía. 5. Two non-operated blocks in Noroeste and Golfo San Jorge basins not shown. 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. 3

4 Platform Poised for Growth Top quality assets well-fit for Vista Management Team Premium Neuquina Basin Asset Base High-quality, low-cost conventional proved reserves base 55.7 Mmboe of 1P reserves (65% oil) with break-even price of $30/bbl (1) High-margin conventional production base 24.2 Kboed (60% oil) with EBITDA margin of 45% (2) Vaca Muerta net acreage 134,000 top-quality net acres located next to ongoing shale developments and completed pilots (3) Operational cluster Proximity of blocks and overlap of future Vaca Muerta development and current conventional operation is key to efficient fast-track development 5-year target Strong Financial Position Conventional assets generate significant, low-risk cash flow 2018E target EBITDA of $190 MM (4) Solid balance sheet Net debt/ebitda ratio of 0.8x (5) PRODUCTION: +65 Kboe/d ~30% CAGR (8) Actionable and Profitable Growth Plan Fully functional operating platform ~190 employees and strong HSE track record (6) Discretionary and flexible timing of development plans operated, mostly 100%- owned assets with minimal capex commitments Operated infrastructure in place initial development phase covered by existing treatment and transport spare capacity Deep inventory of highly profitable Vaca Muerta drilling locations 413 risked locations included in base plan (out of 1,100 potential locations) (7) EBITDA: EBITDA MARGIN: +$900 MM ~50% CAGR (8) +60% >20 p.p. (8) Unique platform poised for Regional Expansion Credentials and organization leverageable for regional expansion either through acquisitions, joints-ventures or future licensing rounds Access to deal flow and strong BD pipeline of actionable opportunities focus on building an initial Mexico platform and complementary deals in Argentina High-growth development plan, based on this premium asset base. 1. Based on a PV10 discounted cash flow project level valuation assuming $30/bbl flat in real terms and realized gas price of $4.6/mmbtu flat in real terms E figures based on Company Information. 3. Offset operators, including YPF in partnership with Chevron and Petronas, Shell, and Wintershall 4. At $63.8/bbl realized crude oil price. 5. Considers $300 MM term loan and cash balance of $123 MM, as OF September 30 th and Annualized Adj. EBITDA was calculated by multiplying Q2 and Q3 Adj. EBITDA by 2, as stated in the Company s 300 $MM term loan contract.. 6. ISO and OSHAS certificates in place. 7. Resulting from additional landing zones. 8. Compared to 2018E numbers. 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. 4

5 Start-up Milestones Path to near-term value creation 1 Integrate acquired entities and assets Integrated operating teams Reinforced safety and security standards Redefined management structure procuring a lean, flat and project-centric organization Reshuffled Management Team Started process to implement ERP system and real time operations monitoring. 2 Launched the development of Vaca Muerta Staffed top-notch unconventional team Drilled surface and intermediate sections of first 4-well pad in Bajada del Palo with conventional rig Fit-for-purpose rig already drilling Expected tie-in of first pad in Q Contain conventional base production decline Identified profitable, low-risk, new wells, leveraging existing facilities Hired 1 rig, currently drilling conventional targets 1 workover rig dedicated to well completions and workovers Implemented facilities de-bottlenecking plan Launched subsurface studies to redefine the projects portfolio. 4 Right-size conventional operations Almost 100% consolidated operatorship of all assets into single operating company, Vista Oil & Gas Argentina S.A. (1) Streamlining cost base across assets Ongoing cost reduction program 5 Pursue regional expansion plan First regional step in Mexico: 3 blocks at 50% participation in JV with Jaguar Exploration & Productions (Deal closing targeted before end 2018; Vista will become the operator of two of these blocks) Currently evaluating other attractive growth opportunities 1. JV Coirón Amargo Norte still being operated under APCO operatorship 5

6 Conventional Assets Overview High-quality oil-prone production cluster Asset Overview (1) Asset Profile Clustered acreage position in the Neuquina Basin covering ~561k acres in the Provinces of Neuquén, Río Negro and Salta. Oil and gas production from well-understood reservoirs through primary and secondary recovery; ~1,031 active producing wells and more than 190 injector wells Multiple infill drilling and waterflood projects identified; current recovery factor below 15% Light crude oil production (Medanito type API >31 ); sold to domestic off-takers plus quality prime of approximately 1 USD/bbl, minus ~2 USD/bbl discount retentions Gas production sold to industrial clients (94%), spot sales to power generation and traders (6%) at an average market price of $5.1/Mmbtu in Q Treatment and evacuation infrastructure in place with spare capacity Production 24.2 Kboe/d 1P Reserves 55.7 MMboe 3P Reserves 82.6 MMboe Oil P1 Gas P2 8% P3 Exploratory upside in the tight gas reservoirs of the Cuyo, Lotena, and Los Molles formations Net Metrics by Asset Entre Lomas (EL) Agua Amarga (AA) OPERATED FIELDS Jagüel de los Machos (JDM) Medanito (MED) W.I. (%) 100% 100% Bajada del Palo Oeste (BDPO) Bajada del Palo Este (BDPE) Coirón Amargo Norte (CAN) Águila Mora (AM) 100%BPO - 100%BPE - 55%CAN 90% AM NON-OPERATED FIELDS Acambuco (ACAM) Coirón Amargo Sur Oeste (CASO) TOTAL 1.5%ACAM - 10%CASO - 1P Reserves (1) (MMBoe) Acreage 275,887 79, ,819 6, ,628 (3) Production Q average daily (boe/d) Concession Term 9,037 8,116 6, , EL 2034 /2040 AA 2025 JDM 2026 MED 2038 CAN 2053 BDPO 2053 BDPE 2019 AM (2) 2053 CASO - 1. Based on reserves certification as of December Sur Río Deseado Este (a non-operated JV) is not included year exploitation concession in the process of being requested to provincial authorities 3. Total net acreage includes 12,809 net acres from Sur Río Deseado Este. 6

7 Vaca Muerta Shale Oil Opportunity (1/2) Favorable combination of value drivers 134,000+ Net Acres Core Location in Shale Oil Window Águila Mora Block (90% op WI) Ready for Full Scale Development Completed pilots and ongoing development in adjacent blocks mitigate risk Production performance in neighboring blocks supports Vista s type curve (2) Operated infrastructure in place with spare capacity for initial development phase Full discretion and flexibility on timing of Bajada del Palo Oeste, Bajada del Palo Este and Águila Mora development (99% of net acreage) Top-notch operating partner in Coirón Amargo Sur Oeste (Shell), with significant Vaca Muerta experience (1% of net acreage) Bajada del Palo Oeste Block (100% op WI) Bajada del Palo Este Block (100% op WI) With the Most Experienced Management Team in Developing Vaca Muerta Drilled 500 wells across play (~60% of Vaca Muerta activity to date) Delivered 47% well cost reduction Reached 50K boe/d, from zero (2) In-depth technical knowledge BAJADA DEL PALO OESTE Coirón Amargo Sur Oeste Block (10% non op WI) Potential Best-in-Class Resource Properties (1) PERMIAN (WOLFCAMP) EAGLE FORD TOC (%) Thickness (m) Pressure (psi/ft) And Access to Riverstone s North America Shale Expertise Active in all major shale basins ~3.1 MM acres and ~300K boe/d (3) Leading E&P industry CEOs including Mark Papa and Jim Hackett Target single well IRR > 75% (4) and target Break-even price (5) of $35/bbl 1. Based on Company estimates, Ministerio de Hacienda, Secretaría de Energía. and the EIA 2. Based on independent third party analysis on Company s acreage made by WDVG Petroleum Engineering Laboratories 3. Aggregate position including current and past investments. 4. Brent at strip for 2018 and 2019 as of 1/22/18 and $60/bbl flat in 2018 real terms from 2020 onwards; realized gas price of $4.6/mmbtu flat in real terms. 5. Based on a discounted cash flow project level valuation assuming $35/bbl flat in real terms and realized gas price of $4.6/mmbtu flat in real terms, and a 10% discount rate. 7

8 Vaca Muerta Shale Oil Opportunity (2/2) Activity significantly mitigates risk of Bajada del Palo West Unconventional Operations Map in Shale Oil Window B LOMA CAMPANA Águila Mora Block (90% op WI) First unconventional oil pilot completed in Argentina In full development mode ~559 wells drilled of which ~148 horizontal with up to 10,500ft (3,200m) lateral length (1) Current production: 45kboe/d (1) Bajada del Palo Oeste Block (100% op WI) C SIERRAS BLANCAS/ CRUZ DE LORENA F D Bajada del Palo Este Block (100% op WI) 18 wells drilled (2) SB-1005 one of the top producing wells in the basin, with IP of 1kbbl/d MMscfd (2) E Current production: 3.5kboe/d (2) B C Coirón Amargo Sur Oeste Block (10% non op WI) D LA AMARGA CHICA A Second unconventional oil pilot in Argentina Commenced third pilot phase in 2018 (2) Current production: 8.1kboe/d (2) A COIRÓN AMARGO SUR OESTE E BANDURRIA SUR First unconventional oil well CASO.x-1 completed and productive since March 2018, performing above type well curve. Total Capex 18.7 MM$, with 2,000 mt (6,560 ft) lateral length and 3,650 mt of vertical depth, with 27 fracs. Landing zone in Upper La Cocina. First six month of production totalized kboe vs estimated type well curve of 126 kboe. F JV signed in 2017 with ~$390 MM committed (2) Pilot Phase: two-stage (4) Six wells drilled (4 horizontals) (2) AGUADA FEDERAL Two vertical exploration wells Four horizontal wells drilled (2) 1. Based on third party report. June Based on Ministerio de Hacienda, Secretaría de Energía 8

9 Vaca Muerta Progress to Date Play s risk has been substantially mitigated over the last five years Increasing Horizontal Well Lateral Length (1) Capex per Well has Declined (1) (Lateral length ft) (Average frac stages #) (k$ / lateral ft) ,920ft (1,500m) hz. well cost of $8.2 MM ,216ft (2,200m) hz. well cost of $11.7 MM ,920 4,264 4,920 4,920 4,920 5,248 4,920 7,216 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Improvements in Horizontal Well Productivity (2) 200 (kboe/d) Achieved Ramp-up in Production (3) Cumulative Production 180 (kbbl) % % 150 Day Cumulative Production 300 Day Cumulative Production Days +9% +18% /13 5/13 8/13 11/13 2/14 5/14 8/14 11/14 2/15 5/15 8/15 11/15 2/16 5/16 8/16 11/16 2/17 5/17 8/17 11/17 2/18 5/18 8/18 Gas Oil Month/Year 1. Based on Loma Campana information from YPF s 3Q17 investor presentation and Giga consulting June 2018, Woodmac May Based on Ministerio de Energía y Minería (Presidencia de la Nación). 3. Based on Company estimates and Ministerio de Hacienda, Secretaría de Energía 9

10 Potential for Superior Returns Well productivity and well cost reduction drive economics Vista Vaca Muerta Type Curve (1) Oil EUR (kbbl) 873 Gas EUR (Bcf) 0.6 Total EUR (kboe) 983 Well Cost Reduction Drive Boost in IRRs (2) (IRR %) IP 30 (bbl/d) day cum (kbbl) 125 Dry gas IP 30 (MMcf/d) 0.5 IP 30 (boe/d) day cum (Bcf) day cum (kboe) 141 6,560 ft (2,000m) horizontal well cost: $9.5 MM NPV10 after tax ($MM) Type curve based on Bajada del Palo simulation model, historical production between the Orgánico and La Cocina targets, and horizontal laterals of >3,280 ft (1,000 m) 1,000 Daily Production (bbl/d per 4,920ft (1,500m)) 100 P50 OPERATED FIELDS P50 Cumulative Production 150 (MMbbl per 4,920ft (1,500m)) (Days) Realized oil price $/bbl 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. 10

11 Vaca Muerta Momentum Now is a favorable time to enter the play Super Majors (1) Focusing on Permian and Vaca Muerta Discount to Permian Trading Multiples Narrowing (2) (Net Acres Held in 000s) Vaca Muerta +112% Permian % 1,696 (Permian trading comps and Vaca Muerta acquisition precedents at average adjusted US$/net acres) 36,461 35,725 42,868 48,864 2,500 3,622 3, ,000 7, Vaca Muerta Acquisition Multiple US Permian Pure Play Trading Multilple (3) (Mboepd) Permian VM Vaca Muerta Appears Poised to Follow Permian s Growth Trajectory Permian Year 5 (2014): +556 Mboepd VM 2018 Q3 Production: ~200 Mboepd Permian Year 0 (2008): Production Re-Based to 0 Mboepd Vaca Muerta 2012 Production: ~4 Mboepd ($ MM) Vaca Muerta Investments (4) $1,500 $1,5000 $550 $250 $450 $5,300 Source: Wall Street Research, Company Filings, Press Articles, Texas Railroad Commission and Ministerio de Hacienda, Secretaría de Energía. 1. Super Majors include Exxon (and subsidiary XTO), Shell, BP (through its subsidiary in Argentina, Pan American Energy), and Chevron. 2. Public filings and press releases. Permian adjusted for production value at $35,000 / boe/d. 3. Permian Pure Play companies include Concho, Diamondback, Parsley Energy, and RSP Permian; trading multiple represents annual average Enterprise Value / annual net Permian acres. 11

12 Outlook (1/2) Vaca Muerta-driven growth plan leveraging existing conventional operating platform Historical and Target Wells (1) Historical and Target Production (1) (#) (kboe/d) +57% % E 2018E 2019E Historical and Target CAPEX (1) ($ MM) % E 2018E 2019E E 2018E 2019E Conventional Unconventional 1. Based on Company information and Company estimates. 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. 12

13 Two-Year Outlook (2/2) Goal is to deliver superior financial results through intended growth strategy Historical and Target Revenues (1) Historical and Target EBITDA (1) EBITDA Margin (%) ($ MM) ($ MM) % % % 41% 43% 49% 90% 70% 50% 30% 10% % -30% 50-50% proforma 2018E 2019E (50) proforma 2018E 2019E -70% -90% Historical and Target OPEX (1) Lifting Cost ($/bbl) Historical and Target Free Cash Flow (1)(2) ($ MM) ($ MM) ~1, % ~(300) proforma 2018E 2019E Conventional Unconventional E Cumulative Consolidated Cumulative 1. Based on 2018 annualized forecast results and Company estimates assuming $60/bbl flat in 2019 in real term, and realized gas price of $4.6/mmbtu flat in real terms. 2. Does not include cash flow from financing activities. 3. Does not include cash balance in PELSA and APCO O&G Int l. 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. 13

14 Company Highlights Key differentiation factors World-class Management team Development-ready, core Vaca Muerta shale position High-growth Development plan Unique platform for regional expansion Cash-flow generating asset base 14

15 Appendix Agenda Portfolio Overview 01 Q3 Results 02 Management Team 03 15

16 Business Plan Initiatives Drive cash flow generation and grow profitably Tailored Operational Approach Key Initiatives Goals Conventional Nimble, ultra-lean operating model Rapid decision making, close to the work front Continuous cost and efficiency improvements Development - infill drilling and waterflooding optimization Subsurface review models Operations review contracting models Pulling & Work Over right-size contract to asset base Field Service labor efficiencies Contain production decline Production optimization Find & develop new structures Cost control & opex reduction Unconventional Secure attractive positions early in the basin life cycle Tight integration across subsurface, facilities, D&C (1), and production Full-scale efficiency-focused D&C (1) operation Top notch unconventional standalone unit Batch drilling Extended horizontal laterals Customized frac designs Strategically sourced key supplies (frac sand, water, and drilling fluids) Rapid growth Accelerated learning curve High IRR development Efficient factory-mode development Optimized well performance Corporate Asset-centric organization Management close to the workfront Tailored standards and operational procedures to improve cost and efficiency Close collaboration with service providers Recruit and train the best local basin specialists Integrate and streamline acquired entities and assets Focus on efficiency and revamp corporate culture Proactive stakeholders engagement Cost synergies P&L accountability Support from key stakeholders 1. Drilling and Completion. 16

17 Neuquina Basin Stratigraphy Multiple formations enhance growth potential Synthetic Stratigraphic Column A Mulichinco/Lajas/Lotena Formation Tight gas formations with solid results all throughout the basin Sands and conglomerates with low permeability requiring hydraulic stimulation to enhance productivity Productivity depth ranges from 2,000 to 4,000 meters B Quintuco/Vaca Muerta Formation A B World class unconventional formation in production since 2010 TOC ranges from 2 to 10% Thickness ranges from 25 to over 500 meters Source rock of Neuquina Basin C C Tordillo/Sierras Blancas /PuntaRosada Conventional formations with over 40 years of production history Light oil with API above 32 Most of the these formations under secondary recovery 17

18 Neuquina Basin Conventional Profitable conventional assets with potential for further upside Asset Overview Conventional Operations Map (1) Eight operated and one non-operated concessions, with concession terms through 2025/2026/2040/2053 (with 10 year extensions available under Federal Hydrocarbon Law under predefined bonus formula) Oil and gas production from well understood reservoirs with primary and secondary production Contiguous acreage position across three concessions in the Río Negro and Neuquén provinces covering ~315k acres in the Neuquina Basin plus ~67k acres closely located (less than 50 km away) High quality oil production with upside potential through infill drilling and waterflood expansion Key Stats (1) 1P reserves of 55.7 MMboe and 2P reserves of 74.7 MMboe(2) 2018 avg production as of Q3 of 24.2 kboe/d (60% oil) Reserve life of 7.5 years Land holdings of ~521,000 net acres Vista s start-up milestones in conventional assets Consolidated operatorship of all assets into single operating company Streamlining cost base across assets and a cost reduction program Containing conventional base production decline, leveraging existing facilities, assigned one workover rig dedicated to well completions and Workovers, and implemented facilities de-bottlenecking plan. (1) Based on Company information and Ministerio de Hacienda, Secretaría de Energía. (2) Reserves as of December 31, 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. 18

19 Neuquina Basin Unconventional Large potential of core Vaca Muerta play Asset Overview Three operated (132,000 acres) and one non-operated concession (~ 2,000 net acres) in the core of Vaca Muerta Full-scale, development-ready, Vaca Muerta core acreage Bajada del Palo Oeste, Bajada del Palo Este and Coirón Amargo Sur Oeste are in the same prospectivity window as La Amarga Chicha (YPF-Petronas), Loma Campana (YPF-Chevron), Sierras Blancas and Cruz de Lorena (Shell) and Aguada Federal (Wintershall), which have completed pilots and/or are in development phase Significant progress in cost reduction has improved economics of development over the past few years Key Stats (1) Land holdings of 134,000 net acres EUR (P50): 311 MMBoe Drilling inventory: 413 in base case plan (out of >1,100 potential locations) Vista s start-up milestones - unconventional assets Unconventional Operations Map Águila Mora Block (90% op WI) Bajada del Palo Oeste Block (100% op WI) Bajada del Palo Este Block (100% op WI) Coirón Amargo Sur Oeste Block (10% non op WI) Staffed top-notch unconventional team complementing Management team with top experience in Vaca Muerta Support from Riverstone, leading PE investor in North American shale (technology, network, etc.) Drilled surface and intermediate sections of first 4-well pad in Bajada del Palo with conventional rig. Skidding rig already drilling and a fit-forpurpose rig arriving. (1) Based on Company information and Ministerio de Hacienda, Secretaría de Energía. 19

20 Bajada del Palo Oeste Location and Potential Landing Zones Multiple landing zones generate extensive drilling inventory Bajada del Palo Oeste Core Location Map In base plan Potential 413 Wells +1,100 Wells (2) West side of the block between 40 and 32 API Multiple Stack Pay Zones ~5 wells per section (1) Tested API : ,800 CARBONATE Bajada del Palo Oeste Overpressure Map 2,850 West side of the block above 250 kg/cm 2 (4,600 psi) 2,900 ORGANIC LA COCINA Overpressure (kg/cm2): 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). (2) Includes 413 wells in base plan. 20

21 Selected Precedent Acquisition Multiples Precedent transactions in Vaca Muerta Precedent Acquisition Multiples $14,000 ($/acre) $8,500 $7,200 $7,000 $8,600 $6,000 $7,300 $8,800 Buyer Seller Area Bajo del Toro Bandurria Sur Bajada de Añelo La Amarga Chica La Escalonada Aguada Federal El Orejano Loma 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) Source: Press releases and media coverage. 1. Based on Ministerio de Hacienda, Secretaría de Energía. 21

22 Fast Track to Full-Scale Development (1/2) Bajada del Palo Oeste development versus typical schedule 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 FAST TRACK DEVELOPMENT Ramp-up Full-Scale Development Delineation Phase 3D seismic acquisition and interpretation Prospective drillable area definition Data gathering in vertical wells: Core acquisition for the whole VM interval Full set of logs (sonic and image) Thermal maturity confirmation Petrophysical analysis to determine landing zones Horizontal wells to confirm landing zone productivity Pilot Phase 1 Inputs for field development plan Pad configuration definition Number of wells per pad Batch drilling and optimization Completion design optimization Field development plan elaboration Facilities construction Sand & water logistics optimization Scale contracts negotiation Full-Scale Development Ramp up in activity Operations standardization Production optimization Choke management policy Artificial lift optimization Flow assurance Telemetry and Automation (Control Room monitoring) Preventive shut-in policy to prevent interference Well construction continuous improvement Real time optimization (Remote Operations Center) Procedure for new technology testing Already completed for Bajada del Palo Block Advanced understanding for Bajada del Palo Block 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. 22

23 Fast Track to Full-Scale Development (2/2) Facilities capacity in place allow for initial development phase startup Facilities for Initial Development Phase Facilities for Full-Scale Development pipeline to construct Entre Lomas Battery Existing Pipeline O T P EPF Oil Treatment Plant Pipeline to Construct Bajada del Palo Oeste Oil Treatment & Disposal Bajada del Palo 1BMo 2BMo 1BP N1 6,000m pipeline from Entre Lomas to existing pipeline OTP- Pipeline PH-PR 1 3 OTP 2 4 EC- 8 6km 4km 27km EC- 9 4 early production faciltiies and new crude oil treatment plant Bajada del Palo Prospective Area Gas pipeline Aguada del Chanar USP-14 LC - YPF Gas pipeline Centro Oeste Bajada del Palo Oeste Gas Treatment & Disposal Gas pipeline Aguada la Arena Borde Montuoso EC-8 EC-9 LPG-HRU Plants Gas pipeline Aguada del Arena Borde Montuoso EC-8 EC-9 Gas pipeline Borde Montuoso NEUBA II Existing gas pipelines with spare capacity in the proximity of the block 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. 23

24 Appendix Agenda Portfolio Overview 01 Q3 Results 02 Management Team 03 24

25 Vista Oil & Gas 3 rd Quarter Highlights Daily Production (1) Revenues 24,200 boe/d $MM Operated production + 0.4% reversed decline Adj. EBITDA (2) Cash at end of period 57.1 $MM $MM EBITDA Margin 49% Financial Debt Net Leverage Ratio (3) 300 $MM 0.8x Unconventional activity 2 active rigs assigned to Bajada del Palo 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). 3. Annualized Adj. Ebitda was calculated by multiplying Q2 and Q3 Adj. EBITDA by 2. 25

26 Total operated production Reverted decline in operated production (98% of total production) Total Operated Daily production kboed Containing conventional base production decline 1 active drilling rig; drilled 13 conventional wells in Q2/Q workover rig has already performed 13 well completions and 14 workovers All wells targeted oil prone formations Q Conventional activity Q Q Q Q Quarterly production growth 0.4% 9 New Wells Drilled 10 New Wells Tied-in 10 Workovers -1.2% -4.2% Q Q Q

27 Daily production Total production above guidance, driven by oil Total production kboed Oil production kbbld Natural gas production Mm3d NGL production bbld % % % % Q Q Q Q Q Q Q Q Q3 Guidance (1) (1) Guidance is Vista s initial plan (presented to investors) on a full year 2018 basis, adjusted by the days of the 3rd quarter. 27

28 Adjusted EBITDA Margin significantly ahead of guidance Adj. EBITDA (2) $MM Adj. EBITDA Margin % +19.2% +6 p.p % % 49% Q Q Q Q Q3 Guidance (1) Margin expansion driven by cost reduction 1. Guidance is Vista s initial plan (presented to investors) on a full year 2018 basis, adjusted by the number of days of the 3 rd quarter. 2. Adj. EBITDA = Gross profit + Fix assets depreciation + Other assets depreciation + Extraordinary expenses (Income). 28

29 Revenues and pricing Realized prices above guidance Revenues $MM Crude oil average price $/Bbl Natural Gas average price $/MMBTU +4.2% % % 5.1 Q (2) Q Q Q Q Q Sales of all products above guidance. Q3 Guidance (1) Main off-takers were Trafigura, Shell and YPF. Seasonal effect explains above guidance result. Sales to industrial segment was 94% of volumes, the remaining 6% being spot sales (power generation, traders). 1. Guidance is Vista s initial plan (presented to investors) on a full year 2018 basis, adjusted by the number of days of the 3 rd quarter. 2. Q2 revenues do not include Net Sales corresponding to first week of the quarter of Medanito and Jagüel de los Machos production. Such production was sold by Pampa Energía S.A. and is included as credit in other current assets 29

30 Opex Operating expenses reduced by cost-cutting initiatives and impact of the Peso devaluation Total Opex $MM % 26.3 Opex per boe $/boe % 11.8 Opex Highlights Renegotiated contracts: right-sized O&M providers formulae, tariffs and base currency Redesign shifts efficiently Reduced trucks Peso denominated cost base reduced by argentine currency devaluation Q Q Q3 Guidance (1) Q Q One Team Pulling Reduced to 1 service provider Operating objectives mutually agreed in the contract, with aligned interest Restructured pulling contracts, from hourly rate to per job rate Reduced from 5 to 4 pulling units 1. Guidance is Vista s initial plan (presented to investors) on a full year 2018 basis, adjusted by the number of days of the 3 rd quarter. 30

31 Capex Significantly reduced conventional drilling cost Key aspects of Q3 Capex Conventional activity: 9 wells drilled and completed and 1 well completed from Q2 in Medanito and Jagüel de los Machos fields, plus 10 workover In October, started drilling first well targeting Lotena formation (natural gas) Executing plan to de-bottleneck natural gas facilities Unconventional activity: Drilling of 1 isolation, 2 surface and intermediate sections of first 4-well pad in Bajada del Palo Accrual of already disbursed 4.7 $MM in Coirón Amargo Sur Oeste well CASO.x-1 Breakdown of Capex $MM Q Q Conventional Unconventional Facilities and others Conventional drilling performance Average cost per well ($MM/well) (1) Average drilling days -41.7% Q Cost per vertical well of 1,600 to 1,800 meters of vertical depth. 31

32 Vaca Muerta development On track to tie-in first well in Q Bajada del Palo Oeste Coirón Amargo Sur Oeste Plan on track to deliver first 4 well pad in Q active drilling rigs (1 walking rig and 1 spudder rig) Started construction of Early Production Facility for the first set of pads Two blocks with 35-year term unconventional concessions, 12% royalty rate. Bajada del Palo Oeste Block (Vista 100%) First Pad Location (4 hz. Wells) Bajada del Palo Este Block (Vista 100%) CASO Block (Shell operated) First well continues to show successful performance in the area. Well CASO.x-1 Average monthly Production in kbbld Actuals Tyoe curve Type Actuals curve Proof of concept: drilling and completion strategy The use of a spudder rig to drill surface and intermediate section adds cost efficiency. Completion of last mile with the use of sand boxes. CASO.x-1 well was closed during the month of September 32

33 Vista increased its acreage in Vaca Muerta Added 15,000 net acres through asset swap with Shell Cross Assignment of Rights Agreement Acquired 90% operated working interest in Águila Mora ( AM ) from Shell in exchange of 35% non-operated working interest in Coiron Amargo Sur Oeste ( CASO ) plus a 10 $MM consideration Retained 10% non-operated working interest in CASO 10 $MM consideration will be used to upgrade existing water sourcing infrastructure operated by Shell to supply Vista s well completion plan Pending provincial approval for AM Joint Venture contract amendment Map of the blocks Águila Mora Block Net Acreage swapped in Vaca Muerta Coirón Amargo Sur Oeste Block Acquired Sold Net Acquisition 20,700 5,708 ~15, $MM for water infrastructure Aguila Mora Key Facts Type of Concession Exploration Permit due Sep-19 AM CASO Net Acreage to Vista Area (gross acres) 23,000 Partners 90% Vista; 10% GyP Wells Drilled (#) 4 Highly prospective acreage in northern zone of Vaca Muerta s volatile oil window, will add significant drilling inventory with operatorship. No pending commitments; new commitments to be negotiated with new 35-year concession (pilot expected to be launched in 2020). 33

34 Financial overview Solid financial position and strong cash generation from operations Q Cash Flow $MM Beginning of period Operating activities Financing activities Investment activities End of period Cash Flow from Operations $MM Leverage ratios (1)(2) Q2 Q % 44.0 Gross Leverage Ratio 1.5 x 1.4 x 31.6 Q Q Net Leverage Ratio 1.0 x 0.8 x 1. Q2 annualized adjusted EBITDA was calculated based on Company estimates of 190 $MM. 2. Q3 ratios were calculated based on: (i) Annualized Adj. Ebitda was calculated by multiplying Q2 and Q3 Adj. EBITDA by 2. (ii) Financial debt which represents Vista s total financial liabilities as of September 30th 2018, and (iii) Ending Cash Balance as of September 30 th,

35 Concluding remarks Solid operational results Reverted operated production decline Further reduced operating expenses to 11.8 $/boe Conventional drilling cost 42% below 2017 Strong cash generation EBITDA Margin of 49%, 6 p.p. above guidance Improved working capital management Increased cash position to 123 MM$ Maintained healthy leverage ratios Progress in Vaca Muerta Bajada del Palo development plan on track with 2 drilling rigs Implementing drilling strategy to reduce costs Executed swap deal to increase net acres by ~15,000; AM block Q results firm up track to deliver 2018 guidance 35

36 Consolidated Balance Sheet Amounts expressed in $MM Consolidated Balance Sheet As of September 30, 2018 As of June 30, 2018 Cash and cash equivalents Trade and other receivables, net Recoverable taxes Inventories Other current assets Total current assets Prepaid expenses Property, plant and equipment Goodwill Other non-current assets Investments in associate Total non-current assets Total assets 1, Trade payables Sundry creditors Loans and borrowings Interest payable Income tax payable Taxes payable other than income tax Salaries and contributions Provisions Total current liabilities Deferred income tax Labor obligations Loans and borrowings Provisions Total non-current liabilities Total liabilities Total equity Total liabilities and equity 1,

37 Consolidated Income Statement Amounts expressed in $MM Income Statement July 1, 2018 to September April 1, 2018 to June Revenues Revenues from crude oil sales Revenues from natural gas sales Revenues from gas liquids Cost of sales Operating expenses Depreciation Royalties Gross profit Commercial expenses Administrative expenses Other operating expenses Operating profit (loss) Interest income Interest expense (7.5) (3.7) Amortized cost (9.1) (4.2) PV of fut. decommissioning expenses (0.5) - Foreign exchange loss, net (0.1) (10.4) Comprehensive financial result (15.9) (17.8) Equity method (0.4) - Profit (Loss) before income taxes 8.7 (4.9) Income taxes (deferred and current) (31.0) (32.0) Net Result (22.3) (36.9) Adjusted EBITDA (1) reconciliation Adjusted EBITDA for Q was 57.1$MM, 19.2% above guidance of 47.9$MM. Adjusted EBITDA Margin was 49%, 6 percentage points ahead of guidance of 43%. Adjusted EBITDA Reconciliation ($MM) Net Result July 1, 2018 to September April 1, 2018 to June Operating profit Depreciation Restructuring expenses Transaction costs of initial business combination and others Adjusted EBITDA (1) Adjusted EBITDA Margin (%) 49% 45% Vista recorded a net loss of 22.3$MM during Q3. This was mainly due to non-cash charges including: Current Income taxes of 13.2$MM and Deferred Income taxes of 17.8$MM. 1. Adjusted EBITDA = Operating profit + depreciation + exploration expenses + extraordinary expenses. 37

38 Appendix Agenda Portfolio Overview 01 Q3 Results 02 Management Team 03 38

39 Management Team Experienced team with a solid track record working together Miguel Galuccio Chairman and CEO 25 years of energy experience across five continents (integrated oil and gas and oilfield services) Independent board member of Schlumberger Former Chairman and CEO of YPF and President of Schlumberger SPM/IPM(1) 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 Pablo Vera Pinto Chief Financial Officer More than 15 years of international business development, consulting and investment banking experience Previously Business Development Director at YPF in Argentina 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) 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 Juan Garoby More than 20 years of E&P and oilfield services experience Chief Operating Officer Previously, Interim VP E&P, Head of Drilling and Completions, Head Unconventionals at YPF 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 Gastón Remy Argentina General Manager Alejandro Cherñacov Strategic Planning and Investor Relations Officer More than 15 years of energy industry experience 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 Department of Dow 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 Previously CFO of small-cap Canada-listed E&P company Prior experience as Investor Relations Officer and ran the Upstream Project Portfolio at YPF in Argentina Masters in Finance from Universidad Di Tella, Strategic Decision and Risk Management professional certificate from Stanford University; Economics degree from Universidad de Buenos Aires 1. Schlumberger Production Management and Schlumberger Integrated Project Management, business segments of Schlumberger Ltd. 39

40 Miguel 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 STRATEGIC THOUGHT LEADER Under his leadership, the company conceptualized and implemented novel strategic initiatives with lasting impact 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) EXECUTION FOCUSED AND RESULTS DRIVEN Developed new business models integrating services with E&P risk-returns under SPM Burgos, Chicontepec, Alianza and Mesozoico projects with PEMEX (more than 2,000 wells drilled over 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 ABILITY TO ATTRACT TALENT AND GENERATE NETWORK Managed fast-growing global organization with more than 6,300 employees in 55 projects across six regions Pushed out-of-the-box solutions with strong bottom-line impact by motivating teams and engraining 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 40

41 Experienced Management With Proven Track Record Mr. Galuccio led a remarkable turnaround of YPF in a complex scenario STRATEGIC LEADERSHIP WITH VISIBLE IMPACT 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: 500 wells drilled (60% of Vaca Muerta activity to date) 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 OPERATIONAL PERFORMANCE Grew production by more than 100 kboe/d to reach more than 580 kboe/d 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 SUCCESSFUL BD, M&A AND CAPITAL MARKETS EFFORT 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) Raised more than $8Bn from international and local capital markets with over 30 new issuances between 2012 and 2016 (with 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 AND SOURCE TRANSACTIONS Promoted and recruited best-in-class managers for key positions; implemented world-class talent 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 41

42 Board of Directors comprised by 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 Member of the Board by Riverstone Prior to joining Riverstone in 2011, Mr. Ryan worked for Gleacher & Company and Gleacher Partners in London and New York, more recently as Managing Director and Co-Head of Investment Banking 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 Susan L. Segal Independent member of the Board Mauricio Doehner Cobián Independent member of the Board Pierre-Jean Sivignon Independent member of the Board Mark Bly Independent member of the Board 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 America and other emerging markets throughout more than 30 years She was a Partner at Chase Capital Partners / JPMorgan Partners with a focus on private equity and pioneering venture capital investments in the region 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 Mr. Doehner began work with Cemex in 1996 and has held various executive positions in areas such as Strategic Planning, Institutional Relationships and Communications and Business Risk Management for Europe, Asia, Middle East, South America and Mexico 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 Executive Board. Prior to his Carrefour Group experience, he was Chief Financial Officer, Executive Vice President, Member of the Board of Management at Royal Philips Electronics in Amsterdam. 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 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 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 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 1. Schlumberger Production Management and Schlumberger Integrated Project Management, business segments of Schlumberger Ltd. 42