YPF Sociedad Anonima Q2 2025 Earnings Report

YPF Sociedad Anonima EPS Results

• Actual EPS: $0.13
• Consensus EPS: $0.56
• Beat/Miss: Missed by -$0.43
• One Year Ago EPS: N/A

YPF Sociedad Anonima Revenue Results

• Actual Revenue: $3.47 million
• Expected Revenue: $3.37 million
• Beat/Miss: Beat by +$105.00 thousand
• YoY Revenue Growth: N/A

YPF Sociedad Anonima Announcement Details

• Quarter: Q2 2025
• Date: 8/7/2025
• Time: Before Market Opens
• Conference Call Date: Friday, August 8, 2025
• Conference Call Time: 9:00AM ET

YPF Sociedad Anónima, an energy company, engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, and natural gas. The company's downstream operations include petrochemical production and crude oil refining; transportation and distribution refined and petrochemical products; commercialization of crude oil, petrochemical products, and specialties. Its gas and power operations include transportation, commercialization, and distribution of natural gas; operation of regasification terminals; conditioning, processing, and separation of natural gas; and power generation. The company had interests in oil and gas fields. It also had a retail distribution network and retail service stations. In addition, the company owns and operates refineries, as well as maintains terminal facilities Argentine ports. Further, it participates in power generation plants; offers diesel, fertilizers, lubricants, phytosanitary products, and ensiling bags; and supplies diesel, gasoline, fuel oil, coal, asphalts, paraffin, and sulfur, CO2, decanted oil, and aromatic extract. The company was incorporated in 1977 and is based in Buenos Aires, Argentina.

YPF Sociedad Anonima Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Despite international price volatility, shale oil production hit a record ~165,000 bpd in July and is projected to reach 190,000 bpd by year-end, marking over 70% organic growth in 25 months.
• Positive Sentiment: Financial close was secured for the BeMoS pipeline with a $2 billion syndicated loan—Argentina’s largest infrastructure project financing—unlocking growth to 250,000 bpd by 2026 and up to 5 million bpd by 2030.
• Positive Sentiment: Through active portfolio management, YPF has divested 28 of 30 mature blocks, achieving a 24% interannual reduction in lifting costs and simplifying its asset base to focus on high-margin Vaca Muerta.
• Positive Sentiment: New real-time intelligence centers and innovative micro-pricing/self-fuel initiatives boosted nighttime fuel sales by ~30% and cut refinery and well maintenance cycles by up to 60%.
• Negative Sentiment: In Q2 YPF reported a negative free cash flow of $355 million, driven by mature field exits and seasonal working capital needs, while net debt rose to $8.8 billion (1.9× leverage).

Presentation

[Margarita Chun, Investor Relations Officer at YPF]

Good morning, ladies and gentlemen. This is Margarita Chun, YPF IR Manager. Thank you for joining us today in our second quarter twenty twenty five earnings call. Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marin our CFO, Mr. Federico Barretavenia and our Strategy, New Businesses and Controlling VP, Mr. Maximiliano Weston. During the presentation, we will go through the main aspects and events that explain the quarter results, and then we will open the floor for Q and A session together with our management. Before we begin, please consider our cautionary statement on Slide two. Our remarks today and answers to your questions may include forward looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks.

[Margarita Chun, Investor Relations Officer at YPF]

Our financial figures are stated in accordance with IFRS, but during the presentation, we might discuss some non IFRS measures such as adjusted EBITDA. I will now turn the call over to Horacio. Please go ahead.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Thank you, Margherita, and good morning, everyone. Despite international price volatility, we delivered not only solid result in Q2, but also significant progress in our 4x4 plan by achieving key remarkable milestones. This quarter's volatility actually demonstrate the right direction and implicit value of our 4x4 plan outlined since December 23. During this quarter, the international oil market experienced significant volatility with low prices. As a result, our realization price of oil decreased by 12% sequentially.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Our shale oil production remained largely unchanged even after selling our 49% stake in Aguada del Canar, which decreased its contribution by 6,000 barrels a day. Moreover, during July, we have just achieved record high production of roughly 165,000 barrels a day. In fact, on Tuesday, the production the daily production was 163,008 barrels a day. Despite the challenging context, our continued delivery on our four by four plan substantially mitigated this negative price environment. During this quarter, we reached keen milestone in the vesting program of mature field, particularly in Santa Cruz.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

As a material result of this project, we can show a 24% interannual reduction in our lifting costs. Another key milestone was achieved financial closing at BeMos. After eighteen months of hard work and dedication, today, I would like to share with you the remarkable progress we achieved in our 4x4 plan, delivering important results across all our four strategic pillars, especially since our last call in May. As we have always said, our first pillar is to focus on our most profitable business, oil Vaca Muerta. We have continued to expand our shale oil operations and made significant progress in advancing midstream infrastructure projects to support future growth.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

YPF, the largest shale oil producing Argentina, continues to deliver solid performance. Back in November 23, YPF shale production was 110,000 barrels per day. By last month, production has increased to roughly 155,000 barrels per day. Even after the investment 6,000 barrels per day in our general as I mentioned before. We project further growth aiming to close the year at around 190,000 barrels per day.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

This will represent an outstanding organic production ramp up of over 70% in twenty five months. Moreover, in the last eighteen months since 2024, our oil export revenue reached $1,500,000,000 In terms of volume, this quarter we exported nearly 44,000 barrels per day. Moving to midstream expansion, since day one, we were convinced that BeMos represented the key and the best infrastructure vehicle to ramp up YPF production from 2026 and beyond and also for all the industry. This new pipeline completely unlocks YPF growth plan to achieve roughly 250,000 barrels per day by the 2026 and allowing to reach 5,000,000 barrels per day by 02/1930. To this end, YPS led in record in the development of this project in collaboration with the rest of the shale industry.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

First, we align commitment that allow starting construction on January 25, then supported by a solid contract structure, the project recently secured a syndicated loan for $2,000,000,000 to finance the contraction of Demos. Beside economic benefits for YPF and the entire shale industry, this transaction reopened international project finance market for Argentina. It stands as the largest commercial loan for infrastructure project in the country. It's also one of the top five largest financing in Latin American oil and gas sector so far. The overall contraction program is down 23% as July, with welding works completed for around 120 kilometers.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Additionally, assemblies of floor plates for the tanks have begun at both Allen And Punta, Colorado export terminal. Let me now talk on Pillar two that focuses on active portfolio management. From the very beginning, we committed to create value for YPS through a dynamic portfolio management approach. Over the past fifteen months, after receiving initial approval from our Board, we already completed the transfer of 28 out of 30 mature blocks, identified in the initial plan called Andes. Moreover, we have successfully reverted 11 mature blocks to the provinces, one in Chubut and the other is in Santa Cruz, the most challenging blocks in terms of complexity, achieving another key milestone in our 4x4 plan.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

During the past eighteen months since 2024, the mature blocks that we already left produce roughly 61,000 barrels of oil per day and 3,200,000 cubic meter of gas per day. However, it's worth noting that they were very mature and carry high lifting costs around $42 per barrel. As a result, during this eighteen months, the overall negative impact on our free cash flow was around $840,000,000 This amount include the operational cash flow and basic cash flow. Additionally, we have successfully divested our subsidies in Brazil and Chile beside closing unprofitable chemical plants. All these items were critical to our 4x4 plan as it simplify our portfolio and enable us to concentrate our effort and the majority of our capital on our most profitable asset Vaca Muerta.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Regarding this exit program from mature fields, I want to highlight the constructive agenda that we were able to develop in collaboration with governors and unions. This represents an unprecedented level of cooperation among key stakeholders. I'm confident that with the same spirit, we will reach an agreement in ongoing negotiation with Tierra Alfrego during Q3. As a result of all these efforts, we can report today a remarkable reduction in listing cost of 24% interannually. With the decision to make YPF a very profitable company, we have recently decided to expand the scope of asset to be divested to become next year a pure and conventional aftering company.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

We have identified the other 16 performing conventional blocks. We will open these assets for divestment with a superior objective to continue upgrading our portfolio and making YPF much more profitable and more resilient to low crude prices. Completely aligned with the same portfolio rationale, this week we execute a bidding agreement to acquire Prime Tier one Shell acreage from Total for $500,000,000 subject to certain conditions. This acquisition follow the same value dynamics of our active portfolio management, divesting non core less profitable assets, while securing long term productive value for the company. In this case, La Calonada, Bencon, La Senizao locks are located in the most promising area in the oil and wet gas window of North Vaca Muerta, close to Vajo Del Choquel and Bernada blocks that Truspetrol have recently acquired from Exxon.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

La Calonada is a first class crude oil producing block that we generate synergies with the development of Vaca Muerta North Hub. The Encond de la Seniza has a strategic potential for the development of wet gas and the Argentina LNG project. We expect to assume the operating role of these two blocks holding a 45% working interest, partnering with Shell and Cassie Petroleum. Together, these blocks are 100% in company nearly 115,000 acres of Vaca Muerta with outstanding well inventory of over 500 wells. Wells drilled on the Vallatiloye window during the early stage of development demonstrate quite promising productivity levels that underscore their long term potential.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Our expectation is to accelerate the development plan to fast track the monetization of this production. This new asset increases our future oil production curve, extend the duration of our plateau and reinforce our leading position in Vaca Muerta reserves. Furthermore, when we complete the divestment of our conventional asset, YPS will become a pure integrated Shell player with superior size synergies and economic of scale, as I mentioned before. Now Pillar number three focuses on maximizing our upstream and downstream efficiencies. Since our last call in May, we have inaugurated three real time intelligence centers.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Two of them are in La Plata and the Juan De Cuyo refinery, respectively. And the third one is based in our headquarters to support our downstream commercialization business. The latter one has been key for the implementation of micro pricing and self fuel project. This real time is unique in Latin America. We can follow the demand by each gas station during twenty four hours beside our old product at convenience store.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

We are changing the way of delivering fuel and products in the country. It's really a disruptive marketing change. We have an impressive positive image from the people in the polls. This 100% technology driving an in house management project were launched last month to seek a win win strategy. Micro pricing allow our gas station clients to access a different price at fuel at nine from midnight to 6AM.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Cell fuel provides these clients with greater savings if the payment is made through the YPF application in certain gas stations. YPF is pioneer this method of pricing in Argentina. We are objective of reducing our fixed costs and growing our night time sales and generate more profit per YPF. The results so far are impressive. In the first month since launching this project, our sales volume at the gas station line grew roughly 30% compared to Q2 this year.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

On the industrial efficiency side, we have reduced significantly the duration of program maintenance. If this is in La Plata refinery, we complete the maintenance between 40% to 60% faster than historical records. Regarding Toyota well project, we have been able to reduce the contraction cycle for a part of four wells of roughly two thirty days will represent a reduction of around eighty days compared to twenty twenty three levels. The same methodology and focus are in adapting real time intelligence center for drilling and completion that start to deliver results as you will see in the next slide. We are the licensor operating Vaca Muerta working upstream real time intelligence center 20 fourseven remotely from YPF headquarters.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

As a record, one of the biggest service company, last week, it was the first time that deliver a work from remote all around the world. In the August, we are opening the Aptiv Real Time Intelligence Center for operation and maintenance, pulling and logistics in Nuquen to improve our efficiency and coordination in all the operations of Vaca Muerta. This achievement reflects our integrated approach working closely with our strategy supplies at every stage of the well production process. Additionally, we enhanced our operational dashboard to enable real time anomaly detection and implement corrective action plans rapidly. All of these initiatives represent a critical to cultural change for YPF in time management and production processes.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Finally, Pillar number four is Argentina LNG project. And since our last call in May, we signed the head of agreement with E and I for the consolidation for three for 12,000,000 ton per annum, expecting the approval of final investment decision in Q1 twenty twenty six. In the same direction, we are working with Shell for Phase two in order to speed up the FID and obtain synergy between both projects in the Fed structure. Moreover, this week, our SPV CISA obtained the FID approval for the twenty year bareboat charter agreement for its second floating LNG named MARQ II. This vessel has a capacity of 3,500,000 tonne per year as expected to be operational in 2028.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

We are also working on the project Rishi as well as environmental and export permit for Mark II. Considering the first vessel Healy, the total capacity amount to roughly 6,000,000 tons per year. Let me mention that this second vessel allow the contraction of a 100% dedicated pipeline from Vaca Muerta to the San Mateo Gulf in the province of Rio Negro, available during the whole year instead of the original plan of using existing pipeline idle capacity during off peak season operating only Healy. Now moving on Q2 results, revenue remained stable sequentially, reaching over $4,600,000,000 with record high seasonal sales on natural gas and fuels and increased import volume of crude oil and agro products. However, the volatility international price negatively impact our refined product prices, especially local fuels.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Additionally, Q2 was affected by lower seasonal gasoline demand. Inte annually, despite roughly 20% drop in Brent, revenues only declined by 6%. The drop in Brent prices were mitigated by operational efficiency, the increase of shale export and a recovery in local fuel demand. Adjusted EBITDA was $1,120,000,000 in Q2, decreasing 10% sequentially. It was mainly explained by Brent contraction impact in refined product prices, exit from mature field and value of inventories.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

On the positive side, this negative effect was softened with lower lifting costs on the back of less exposure to mature fields. Interannually, adjusted EBITDA declined by 7%, also reflecting Brent volatility, but it was partially mitigated by the significant ramp up in shale oil production and even better conventional lifting costs. Also, bear in mind that Q2 last year was affected by the strength weather condition experienced in Patagonia. At this point, I would like to note that excluding the negative contribution from Machu Phil, our proxy adjust EBITDA would have been $1,250,000,000 Looking at the bottom line, Q2 net profit was $58,000,000 compared to a loss of $10,000,000 in the previous quarter. This turnaround was mainly driven by one off items related to mature fields in Q1.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Inte annually, net profit declined sharply, explaining by higher depreciation from Shell activity expansion and lower gains from finance and securities in 2024. Also this quarter included an income tax charge due to higher future tax payable, while Q2 twenty twenty four was the opposite. Mature field also impacted on the net results. Excluding them, our profit net result will have been a profit of $254,000,000 In the terms of investment, in Q2, we deployed $1,160,000,000 remaining similar sequentially and interannually. It's very important to remark that 71% of the total was now directly allocated to unconventional assets.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

In Q2, we record a negative free cash flow of three fifty five million dollars It was mainly affected by $315,000,000 of negative impact from mature fields. Moreover, we had negative working capital due to peak winter sales on natural gas and our subsidies paid income tax. However, the negative impact was softened by dividend collection from affiliates. As a result, our net debt rose to $8,800,000,000 reaching a net leverage ratio of 1.9 times as expected while divesting mature fields. Please take into account our acquisition of this year and also in the rest of this year, we are selling performing conventional assets at Metro Gas after extension of the concession. Now I will turn the call over to Max.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

Thank you, Horacio, and hello to everyone. Focusing on the Upstream segment, the second quarter total hydrocarbon production was 546,000 barrels of oil equivalent per day. It remained stable both sequentially and interannually. Shale production keeps driving the growth, now representing an impressive 62% of the total output. It nearly offset the divestment of mature fields and to a minor extent, the lower working interest at Aguada Del Chanar.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

In the case of mature fields, hydrocarbon production decreased by 26% versus the previous quarter as we kept divesting them. It recorded 72,000 barrels of oil equivalent per day, representing only 13% of the second quarter total production. Crude oil production amounted to 248,000 barrels per day in the second quarter, decreasing 8% sequentially. It was primarily driven by lower mature fields and to a lesser extent Aguada Del Chanar as explained before. Intranually, while total crude oil production remained stable, the remarkable 28% expansion in shale output fully offset the decrease in exposure to mature fields.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

Let me mention that last month's shale oil production was approximately 165,000 barrels per day. We expect continuing significant growth in the second half of the year to achieve our 2025 annual target of over 165,000 barrels per day. Oil exports in the second quarter totaled 44,000 barrels per day, increasing by 20% sequentially. The main growth came from redirecting Escalante heavy oil to the foreign market as La Plata refinery was under program maintenance. Interannually, it grew by 43 also boosted by shale expansions.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

Natural gas production increased by 6% in the second quarter sequentially to 40,000,000 cubic meters per day, primarily supported by higher seasonal demand. NGL production was 48,000 barrels per day, a modest growth of 2% sequentially driven by high associated gas output in certain shale oil blocks. Total lifting cost was $12.3 per barrel of oil equivalent. This is a remarkable sequential reduction of 19%, reflecting further divestment of mature fields. Excluding mature fields, our proxy lifting cost for the second quarter would have been roughly $7.5 per barrel of oil equivalent.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

Zooming into our core hub blocks, lifting cost at 100% of working interest was $4.9 per barrel of oil equivalent. It grew by 7% sequentially due to higher pulling and maintenance costs. Regarding prices in the Upstream segment, crude oil price was $59.5 per barrel, 12% lower sequentially in line with Brent volatility. Natural gas price was $4.1 per million BTU growing by 38% sequentially, primarily influenced by the peak season planned gas price. Now let me walk you through the performance of our shale activities.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

In the second quarter, we drilled 54 horizontal oil wells on a gross basis, mostly in operated blocks, while maintaining our net working interest of 55%. In this sense, in the first half of the year, we drilled 105 horizontal oil wells on a gross basis. This is in line with our estimate of two zero five wells for the year. In terms of completion and tie in of wells, we accelerated our activity. In the second quarter, we completed 70 horizontal wells and tied in 76 on a gross basis. They represented an increase of 3569%, respectively, when compared to the second quarter last year. Shale oil production in the second quarter remained stable sequentially at 145,000 barrels per day.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

This is because the lower stake in Aguayo Chanar block was fully compensated by the growing contribution from Blangos Turazur 1 block. This block is 100% YPF located in the South hub with a shale oil production of 20,000 barrels per day in the second quarter. Considering the acceleration in our activities mentioned before and July's production level of 165,000 barrels per day, we are in good shape to reach the 2025 target of 165,000 barrels per day. In our unconventional core hub blocks, we achieved an average drilling speed of three thirty one meters per day. We remain optimistic about reaching our annual target of three sixty meters per day.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

On the fracking side, we completed two fifty nine stages per set per month in our unconventional operations, now very close to achieve our annual target of two sixty stages per set per month. In our Downstream segment, local fuel prices remained closely aligned with international priorities, reflecting Brent volatility. As a result, local fuel prices measured in dollars were down 8% sequentially and 10% interannually. Also, second quarter local fuel prices were just 1% below import parity. Fuel sales volume was 3,500,000 cubic meters in the second quarter, growing by 4% sequentially, primarily explained by seasonality.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

Interannually, it increased by 3%, mostly driven by demand recovery. We also maintained our leading market share of 55%. In the second quarter, we processed 301,000 barrels per day, recording a 5% sequential contraction due to the maintenance stoppage at La Plata refinery. This resulted in a refining utilization rate of almost 90% as anticipated in our previous call. However, let me highlight that La Tata refinery achieved a record high monthly processing level of the past fifteen years, reaching nearly 201,000 barrels per day in April.

[Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF]

Our refining and marketing margins declined by 17% sequentially. It was mostly due to lower prices combined with higher costs related to maintenance. However, it was mitigated by lower costs of oil on top of the OpEx efficiency measures set before. Now I will turn the call over to Fred.

[Federico Barroetaveña, CFO at YPF]

Thank you, Max. Switching to the financials, let's start with the cash flow evolution. In Q2, we posted a negative free cash flow of $365,000,000 mainly explained by the performance and closing agreements of mature fields. They recorded an adjusted EBITDA loss of $126,000,000 and one off cash flow loss for almost $190,000,000 Moreover, our subsidiaries, Metrogas and Aesa paid income tax while the regular debt service remained stable. On the other hand, the dividend collection from our affiliates, net of contributions and prepayments mostly offset the negative working capital.

[Federico Barroetaveña, CFO at YPF]

The latter was mainly explained by higher seasonal gas sales and payroll. In the same line, exports of agriculture products grew boosted by reduced export duties. As a summary, for the first half of the year, we recorded a negative free cash flow of $1,300,000,000 mainly explained by the impact of mature fields. These assets recorded an adjusted EBITDA loss of over $230,000,000 and a negative one off cash flow for around $420,000,000 totaling an aggregate of $650,000,000 In addition, year to date, we expressed a net amount of roughly $210,000,000 in M and A activity, mainly the acquisition of Sierra Chata. Therefore, during this six month period, the proxy free cash flow excluding mature fields and M and A activity was $460,000,000 negative, which is mostly explained by the regular interest payment for roughly $320,000,000 and income tax payments from our subsidiaries for around $100,000,000 Now in terms of Q2 financing, we ended with $8,800,000,000 of net debt representing a net leverage ratio of 1.9 times as anticipated during our Investor Day in April.

[Federico Barroetaveña, CFO at YPF]

During this quarter, we issued a $2.00 $4,000,000 LINK bond and $140,000,000 hard dollar bond. The first one was with a fifteen month tenure at 3.95% and the second one with a two year tenure at 7%. We also secured around $190,000,000 in another local financing. After the quarter, we also issued two local bonds, a $250,000,000 MEP bond and $167,000,000 CABLE bond. The first one was a two year tenor and the second one a five year tenor.

[Federico Barroetaveña, CFO at YPF]

Considering the recent acquisition of shale assets, we will complement the last issuance of Dollar Cave bond with cross border acquisition financing. We anticipate this M and A will take our net leverage ratio to near two times during Q3. However, for the second half of the year, we expect that the increase in EBITDA driven by the ramp up in production and the sale of our mature fields combined with the divestment of additional non mature fields that Toraj anticipated will lead to a normalized net leverage ratio of 1.8 times by year end. In terms of refinancing activities, during the rest of the year, we will be targeting debt maturities of nearly $800,000,000 78% local and only 22% international. In this process, it is important to highlight that last month, Moody's upgraded YPF's credit rating from CAA1 to V2 with a stable outlook following the recent sovereign rating improvement.

[Federico Barroetaveña, CFO at YPF]

So with this, we conclude our presentation and open the floor for questions.

[Operator]

Your first question comes from Tasso Vascimuelos with UBS.

[Tasso Vasconcellos, Equity Research at UBS Group]

Hi, Horacio, Federico. Thanks for taking my question here. I would like Horacio to get a broader update on the development plans that you guys have planned ahead. The company just announced the acquisition of this block that you mentioned during the presentation. How does that impact the current production plan for the upcoming years?

[Tasso Vasconcellos, Equity Research at UBS Group]

And how do you view the risks of an increased development plan amid an already accelerated plan that you guys had released before? And in parallel, Horacio, you recently said in an interview that you view a big acceleration in the CapEx in Vaca Muerta. Can you also give some additional feedback on this view of yours? Those are my two questions here. Thank you.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Good morning. How are you, Tassos? Pretty well. Why The we bought that is because this field is one of the best field in the North of Vaca Muerta, where the tight wall is more, let's say, if you see from different consultants, the average production of UR of wealth for all Vaca Muerta is in order $1,000,000 But if you see this area, it could be 1,500,000.0 or more. So that means that it's more profitable than anyone else.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

They are in the very, how you say, Swiss spot as in United States, they want to say. What is the effect here? Nothing because it's good. We are we are going to make more money for you. And so we are going to prioritize.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

We shall, for sure, to go very quickly because it will be one of the best fields as rentability of Argentina. I don't know if I answered the question or you need more detail. Facilities, It's we are clear. Okay. Thank you.

[Tasso Vasconcellos, Equity Research at UBS Group]

I think that's clear from you on this interview that you recently gave on this potential deceleration on Vaca Muerta activities as a whole.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

The okay. Why I say that in an interview because they asked me in an interview, but it's not YPF. It's not the problem for us to do that. So we have delivered what we say. In everything that we say in 4x4, we have delivered.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

I answer at that moment because there are people say in the market of Argentina, they said there will be a reduction in some number of rigs, but it's not YPS. So I think it's not, I would say, not logic and fear that I would say which companies are reducing the rigs, okay?

[Tasso Vasconcellos, Equity Research at UBS Group]

Okay. That's clear. Thanks.

[Operator]

Your next question comes from Leonardo Marcones with Bank of America.

[Leonardo Marcondes, VP - Equity Research at Bank of America]

Hi, everyone. Thank you for taking my questions. I have two from my end. The first one is regarding the new on this project. Could you provide some color on your expectations in terms of timing for the conclusion of the whole Phase one?

[Leonardo Marcondes, VP - Equity Research at Bank of America]

And also some more details on Phase two on what is the total production to be divested from? What is it EBITDA representativeness? And also your expectations in terms of conclusion for the second phase as well? My second question is regarding the export tariff for oil, right? We have recently seen the government reducing the export tariff for other segments.

[Leonardo Marcondes, VP - Equity Research at Bank of America]

So is there any expectation or cushion with the government to reduce the export tariff for oil as well in the short term? Thank you.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Okay. Thanks for the question. In let's go by number one, Andres. Andres one, in Andres one, we are finishing. There is only one block that is in Rio Negro that is the expectation.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

They have to be approved by the government of Rio Negro, but it's in the final phase. We are out, totally out. When there is something that I have to explain to for you that Andes, where we saw everything. But there were two provinces that is one is in Santa Cruz that we are out now because we are no more the owners of the blocks. We are operating for up to December at most.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

But we operate for the mainly known the Promise company, okay? Because they don't have the people to do that, okay? But we are out there. In Tierra del Fuego, that is very small comparing with Santa Cruz, very, very small. We are I think next week, we can have maybe we can have good news because we are in the last phases to agree with the province, okay?

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

That is Anders one. What is Anders 2? Anders 2 is all the conventional block that we have left. Because remember, if you see some interviews, I say that the goal of all the people that work in YPF in the management is to be unconventional company next year. And so now we are delivering and to sell the well, you can call core conventional sales that they have good results for conventionals, okay?

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

But why we do that? Because we can make more money as you realize that we have a good portfolio and to invest in Vaca Muerta. And so this one that they have lifting cost that is more than $20 per barrel is not priority. I don't know how to say in English.

[Margarita Chun, Investor Relations Officer at YPF]

Priority.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Priority for us because of the profitability. And so there is all the others is in Chubut or in Mendoza and in Salta. There are oil and gas. The production of all the assets is in the order of 50,000 barrels a day. Production of us is 2,000,000 cubic meter per day.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

The EBITDA, all of this is in the order of 8% at 2024, okay? And I think I answered the question or I left something. There is a second one. I work I am a guy that work in a private company. I'm not the guy that regulate the Argentina tariff or export tariffs.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

I don't know. That you have to ask to the government.

[Leonardo Marcondes, VP - Equity Research at Bank of America]

Very, very clear, Rasul. Just a follow-up on the first question. Regarding the second phase in terms of production and EBITDA representativeness, what should be the impact on the company?

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

I said maybe because my English maybe is not good, I know that, okay? But it doesn't matter. The production is 50,000 barrels a day of all two weather and the production of oil. The production of gas is 2,000,000 cubic meter per day. The EBITDA for all that in figures of 2024 that you have is 8% the order of 8%. It was more clear.

[Leonardo Marcondes, VP - Equity Research at Bank of America]

Yes. No, that's very clear. Thank you very Thank

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

you.

[Operator]

Your next question comes from Matthias Cattaruzzi with ADCAT.

[Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero]

Hi, good I have a question about the CapEx guidance. You gave us this $0 to $5,200,000,000 guidance with a Brent of $72 per barrel. Are you planning on changing that or adjusting it in the upcoming quarters?

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Okay. No, we are not going to change. And also, if you have our figures, we are very, very close to what is our budget. We are going to continue.

[Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero]

Okay. Thanks. And then could you provide an update of the equity contributions to Vaca Muerta del Sur for the upcoming two years?

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Sorry? Equity sorry, on the sorry. I will pass to Federico. They are in charge of all the financing, okay?

[Federico Barroetaveña, CFO at YPF]

Hi, Matthias. Well, basically after the financial close of Temoz based on a total investment of €3,100,000,000 for the project and a 70% debt to equity ratio. The total number for our share of the equity will be in the range of €230,000,000 out of which close to $75,000,000 $76,000,000 have been already contributed up to June. So the remaining amount will be $155,000,000 until COD. I will say that at least $50,000,000 will come along 2025 and the rest mainly concentrated in 2026. That will be our disbursement of BIMOS.

[Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero]

Great. Thank you.

[Operator]

Your next question comes from Juan Munoz with BTG.

[Juan José Muñoz, Equity Research Associate Director at BTG Pactual]

Hi, thank you for the opportunity taking my question. The first one is a follow-up of the divesting of the conventional assets. So regarding the proceeds that you expect with fully divesting those assets, if you could provide us an estimation of those proceeds? That's my first question. And the second one is regarding the recent acquisition of the shale assets from Total Energy.

[Juan José Muñoz, Equity Research Associate Director at BTG Pactual]

More strategic question is, how are you seeing the competitive M and A landscape in Vaca Muerta in the recent months? So those are my two questions. Thank you.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

First question, okay, thank you, I cannot answer. Imagine that if I say what is our expectation, it will be in all the newspaper tomorrow. I cannot tell you that, okay? But we think that this is a good number because they are very good assets, but I cannot tell you exactly the number, okay? With all our selling, really think that we are going to get much more than the total acquisition, okay?

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

That is something that I think I can answer you, okay? Regarding, I cannot I don't know if I can understand when you say competitive landscape. Well, which sense do you How

[Daniel Guardiola, Executive Director - Equity Research at BTG Pactual]

are you seeing the competition regarding the current assets that are available for sale in Vaca Muerta right now?

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Okay, okay. But I think there are not a lot more. The company that we have all the all now all the assets, they are all focusing the development, okay? It could be another company or it could be changed. It's normal, but we don't see that there are more during the it seems that there's no more during this year at least, okay?

[Juan José Muñoz, Equity Research Associate Director at BTG Pactual]

Okay. Thanks.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Okay.

[Operator]

Your next question comes from Bruno Montanari with Morgan Stanley.

[Bruno Montanari, Executive Director - Equity Research at Morgan Stanley]

Hi, good morning. Thanks for taking my questions. I have one follow-up and one question. On the going back to the Total acquisition, can you share with us maybe the timeline for when you would start to invest in the area? And if there is any CapEx expectation, just like a quick math, if it's a 500 well inventory at around, say, 14,000,000 or $15,000,000 per well over the full development, it would be at least around $7,500,000,000 in CapEx.

[Bruno Montanari, Executive Director - Equity Research at Morgan Stanley]

So just wanted to know if that makes sense and what type of facilities you would potentially have to invest as well? And the second question is maybe to on the financial side. When we look at 2026, the company has some concentration of maturities, especially in domestic bonds. So when would you start to work on the refinancing of the '26 maturities? Thank you very much.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Okay. I will answer the first. Federico will answer the second, okay? With the total acquisition, our partner is Shell. This Shell and the province company, CMP.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

We are going to have a meeting with them to decide the development, okay? Because we are partners. So I cannot say exactly there. The we are going to prioritize as much as we can if necessary facilities. And also, we are talking with companies that are near there.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

So you can get, if you know Agamorta, to have synergy in the plants, in the CPF, okay? So there, everybody, we can reduce the investment per barrel. That is our idea, okay? The second question, I pass to Federico, okay?

[Federico Barroetaveña, CFO at YPF]

Hey, Bruno. How are you? So looking for refinancing, first, we need to work on, let's say, what we have for the rest of the year. Our total, let's say, refinancing and acquisition finance now for five hundred million dollars to be done in this in other words, we have 1,100,000,000.0 of additional debt to be acquired until the end of the year. For the acquisition finance, we already issued a bond last month in the local market for $167,000,000 So more than 30% of the total acquisition is already funded.

[Federico Barroetaveña, CFO at YPF]

The rest we have acquisition finance committed. And the rest I think that will be mostly in the local market. Now looking at the tower of financing that we have for 2026, we have 2,300,000,000 out of which more than 50% is local and refinancing and only $350,000,000 are international bonds refinancing. So we are going to be looking at the opportunities that we have in the local markets and in the international market, starting I will say from the last year of this year and also entering into early beginning of next year as for example as we did in January 2025. But bear in mind that more than 50% of the refinancing required is coming from local bonds.

[Bruno Montanari, Executive Director - Equity Research at Morgan Stanley]

Very clear. Thank you very much. So far

[Federico Barroetaveña, CFO at YPF]

I'm sorry. And so far, we have been very successful in refinancing locally. We just, together with the dollar cavalry bond that we issued last month, we issued another dollar met bond for $250,000,000 So in total, it was $417,000,000 That is the highest bond ever in the local market. So there is a growing appetite for our paper in the local market.

[Operator]

The company appreciates the questions, but since we are running out of time, we're going to accept one last question from Andres Cardona with Citigroup.

[Andrés Cardona, Director at Citigroup]

Hi, good morning. Thanks for the opportunity. So on the capital allocation team, I just wondered if you could provide any update about assets that are for divestiture, excluding the Andes project. And maybe you can walk us through the rationale of the strategy discounts on the downstream business during nights, how it improves profitability or increased volumes. Don't know, just help us to understand the rationale from a profitability perspective. Thank you.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

One question because I understand. Okay. Thank you. Now I can answer. The first question, besides Anders, I said in the media several times, there is also Metro Gas, we will reach the extension that is expected to be this year and after we are going to be in the market.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

And also, there is another one is more refinery that we are trying to go out from there with the ethanol. Even that refinery is not refining now, but it's closed. But we are seeing how we can go out if we can. Okay? And the second one, you didn't deny it, is is lovely what we are doing because you you have to come here to see what we did.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

It's amazing. It's unique. I will say unique in in Spanish word, it's unique. I don't know. It's in someone else.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

We have e and I for everything, cars, everything that you want, and we see the demand for each gas pump. You you hear me? Each gas pump around all Argentina. So we are doing the same as you were. Okay?

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

So it depends on our demand. It depends on ours, and and that's that's why we are planning to get more more profit to YPF. Why at nine Because after we decide and we start seeing something that nobody knows minute by minute, we realize at nine in the after midnight, there is a very low demand, which is logical because it's logical. At nine people sleep. So we realized that there, our profitability of the gas station is negative.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

What is that also logic? And you have to reduce that to make more reduce your loss because that is an essential service. You cannot close because it's by law and also illogical that you have to be open at night. So what we did is to reduce and it's amazing the response of the people because our market share increased a lot. And our in one month, we reduced the loss at half.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

And our incremental demand during the nine is more than 30% around all Argentina, all Argentina. And also, there is some province that they are more inelastic, and there are more others are much more elastics. And so we are playing with them. It's amazing. I will I'm not doing that job.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

But if I were to defy, I would like to work there. Really, I want to work more there than I was working in my life in the at the beginning of my career in reservoir. I tell you that it's amazing what we are doing those guys.

[Andrés Cardona, Director at Citigroup]

Thank you, Razio.

[Operator]

That concludes our Q and A session. I'll now turn the conference back over to Horacio Medran for closing remarks.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

Okay. Thank you very much for all the question. Really, we are proud what we are doing in YPF. We are working very hard. In fact, I am today with infection, and I was coming all day long, all day with infection because I love doing YPF.

[Horacio Daniel Marín, CEO, Chairman, President & Director at YPF]

I love what we are doing. I like what people are response in the profitability of the company. And so thank you very much. We will see in three months. Well, no see. We will talk in three months, okay?

[Operator]

This concludes today's conference call. You may now disconnect.

Participants

Analysts

• Margarita Chun, Investor Relations Officer at YPF
• Horacio Daniel Marín, CEO, Chairman, President & Director at YPF
• Maximiliano Westen, Strategy, New Businesses & Controlling VP at YPF
• Federico Barroetaveña, CFO at YPF
• Tasso Vasconcellos, Equity Research at UBS Group
• Leonardo Marcondes, VP - Equity Research at Bank of America
• Horacio Daniel Marín, CEO, Chairman, President & Director at YPF
• Matías Cattaruzzi, Senior Equity Research Analyst at Adcap Grupo Financiero
• Juan José Muñoz, Equity Research Associate Director at BTG Pactual
• Daniel Guardiola, Executive Director - Equity Research at BTG Pactual
• Bruno Montanari, Executive Director - Equity Research at Morgan Stanley
• Andrés Cardona, Director at Citigroup