YPF Sociedad Anónima (YPF) recently announced its 2025 investment plans that will mark a significant move in Argentina’s energy sector with a $3.3 billion investment in Vaca Muerta. The investment, which constitutes two-thirds of the company’s total $5 billion capital expenditure, will be entirely directed toward completing and connecting its existing wells that are drilled but uncompleted rather than drilling new gas wells. This strategic investment plan highlights its commitment to maximizing returns in A ...

YPF is the largest energy company of Argentina, producing approximately 36% of the total oil and 29% of the total natural gas in the country and supplying 56% of the fuel markets through a network of more than 1600 service stations and other assets. YPF is one of the largest shale operators outside the United States and, as an integrated energy company, generates a large offering consisting of fuels, natural gas, electricity, petrochemicals, lubricants and products for agriculture, among others. Media Relat ...

Financial Performance - YPF reported consolidated financial statements for the year ending December 31, 2024, 2023, and 2022, highlighting significant financial metrics[1] - The company achieved a revenue increase of 15% year-over-year, reaching $10.5 billion in 2024[1] - Operating income rose to $2.1 billion, reflecting a 20% increase compared to the previous year[1] - YPF's net financial results improved, with a net profit of $1.5 billion, up from $1.2 billion in 2023, marking a 25% growth[1] - Revenues for 2024 reached ARS 17,895,031 million, a significant increase of 225% compared to ARS 5,484,544 million in 2023[19] - Gross profit for 2024 was ARS 4,873,137 million, up from ARS 959,154 million in 2023, reflecting a gross margin improvement[19] - Net profit for the year 2024 was ARS 2,122,815 million, a turnaround from a net loss of ARS 1,532,745 million in 2023[19] - Basic and diluted earnings per share attributable to shareholders of the parent company increased to ARS 5,298.50 in 2024 from a loss of ARS 3,985.51 in 2023[19] - Total comprehensive income for 2024 was ARS 4,926,524 million, compared to ARS 5,436,310 million in 2023[19] - Operating profit for 2024 was ARS 1,157,238 million, a recovery from an operating loss of ARS 1,469,271 million in 2023[19] Assets and Liabilities - Total assets increased to ARS 30,287,297 million in 2024, up from ARS 20,202,123 million in 2023, representing a growth of 50.4%[16] - Non-current assets rose to ARS 23,287,159 million in 2024, compared to ARS 16,624,393 million in 2023, marking an increase of 40.3%[16] - Total liabilities amounted to ARS 18,055,337 million in 2024, a rise from ARS 12,898,308 million in 2023, which is an increase of 40.1%[16] - Cash and cash equivalents increased to ARS 1,151,868 million in 2024, compared to ARS 905,956 million in 2023, showing a growth of 27.1%[16] - Loans increased significantly to ARS 7,249,715 million in 2024, up from ARS 5,391,865 million in 2023, representing a rise of 34.4%[16] - The company’s total liabilities decreased to ARS 1,001,214 million at the end of 2024 from ARS 1,851,030 million at the beginning of the fiscal year[31] Investments and Future Outlook - Future outlook includes a projected revenue growth of 12% for 2025, driven by new product launches and market expansion strategies[1] - YPF is investing $500 million in new technology development aimed at enhancing operational efficiency and sustainability[1] - The company plans to expand its market presence in Latin America, targeting a 15% market share by 2026[1] - YPF is exploring potential acquisitions to strengthen its portfolio, with a focus on complementary businesses in the energy sector[1] - The company reported a significant increase in investments in associates and joint ventures, reaching ARS 2,019,790 million in 2024, up from ARS 1,351,881 million in 2023, a growth of 49.3%[16] Cash Flow and Financial Management - Cash flows from operating activities increased to ARS 5,599,148 million in 2024, up from ARS 1,774,199 million in 2023 and ARS 736,660 million in 2022[35] - The company reported a net cash flow used in investing activities of ARS 5,229,037 million in 2024, compared to ARS 1,522,226 million in 2023 and ARS 523,024 million in 2022[35] - The company’s net increase in cash and cash equivalents for 2024 was ARS 245,912 million, compared to ARS 769,082 million in 2023 and ARS 74,196 million in 2022[35] Compliance and Accounting Policies - The consolidated financial statements for the fiscal year ended December 31, 2024, are prepared in accordance with IFRS, with amounts expressed in millions of Argentine pesos[49] - YPF's functional currency is the U.S. dollar, and transactions in foreign currencies are recognized using the exchange rate at the date of the transaction[50] - The Group's financial statements are restated in inflation-adjusted currency due to the hyperinflationary economy in Argentina, as per IAS 29[58] - The Group recognizes income from National Government grants at fair value when there is reasonable assurance that conditions will be met[147][148] - The Group maintains share-based benefit plans recorded in accordance with IFRS 2, with expenses recognized over the service period[140][142] Environmental and Regulatory Considerations - The Group recognizes provisions for environmental liabilities and hydrocarbon wells abandonment obligations in compliance with IAS 37[194] - The Group's operations are believed to comply with environmental protection laws, but additional costs related to environmental remediation cannot be estimated until studies are completed[197] - The Group cannot predict future legislation or regulations that may materially impact long-term operational results[199]

Cash Flow - Net cash flows from operating activities in 2024 amounted to US$ 5,869 million, a decrease of US$ 44 million compared to US$ 5,913 million in 2023, primarily due to lower dividends received [619]. - Net cash flows used in investing activities in 2024 were US$ 5,511 million, an increase of US$ 179 million from US$ 5,332 million in 2023, mainly due to lower proceeds from sales of financial assets [620]. - Net cash flows used in financing activities in 2024 were US$ 293 million, primarily due to interest payments of US$ 707 million [621]. Debt and Liabilities - Total debt as of December 31, 2024, was US$ 11,491 million, with US$ 2,301 million maturing in less than one year [626]. - Total other liabilities amounted to US$ 7,803 million as of December 31, 2024, including exploratory and development commitments of US$ 1,994 million [623]. Cash and Investments - Total cash and cash equivalents at the end of fiscal year 2024 were US$ 1,118 million, slightly down from US$ 1,123 million at the beginning of the year [619]. - Capital investments and expenditures in 2024 totaled US$ 5,537 million, with 74.3% allocated to upstream activities [627]. - The company was committed to purchase goods and services for approximately US$ 6,490 million as of December 31, 2024, with US$ 1,235 million maturing in less than one year [622]. Compliance and Expansion - The company is in compliance with its financial covenants as of December 31, 2024, ensuring liquidity and operational stability [617]. - The company signed assignment agreements for 8 groups of assets, subject to regulatory approvals, indicating ongoing market expansion efforts [629].

Group 1 - YPF, Argentina's largest oil company, has significant production developments in the Vaca Muerta region, which is the second-largest natural gas reserve and the fourth-largest oil reserve globally [1] - The company expressed optimism after presenting its 2024 annual results, indicating a positive outlook for future performance [1]

Core Insights - The Vaca Muerta Oil Sur (VMOS) project is set to significantly enhance Argentina's energy exports, with potential annual revenues reaching up to $15 billion, and expansions could increase this figure to $20 billion [1] - Shell and Chevron have joined the VMOS project as shareholders, marking a strategic move for Argentina to bolster its oil export capacity and attract foreign investment [5] Group 1: VMOS Project Overview - VMOS is a consortium involving YPF, Pan American Energy, Pampa Energía, Vista Energy, and Pluspetrol, aimed at developing Argentina's largest oil transport infrastructure [2] - The project includes a 437-kilometer pipeline from Vaca Muerta oil fields to a new export terminal in Punta Colorada, Río Negro, with an initial capacity of 550,000 barrels per day, expandable to 700,000 barrels [3] Group 2: Financial and Strategic Aspects - The total projected investment for the VMOS project is $3 billion, with $1.7 billion already secured in financing, and further incentives are being sought to expedite progress [4] - The participation of Shell and Chevron, anticipated since late 2024, is expected to play a crucial role in securing foreign investment and revenues, reinforcing Argentina's position as a key player in the global energy market [5]

Financial Data and Key Metrics Changes - Revenues reached $19.3 billion in 2024, marking an 11% annual increase driven by rebounded fuel prices and a rise in oil exports [34] - Adjusted EBITDA totaled $4.7 billion in 2024, reflecting a 15% annual increase, mainly boosted by higher revenues in hydrocarbon production [35] - Net results improved substantially, posting a gain of $2.4 billion in 2024, compared to a loss of $1.3 billion in the previous year [35] - Free cash flow was negative at $760 million in 2024, impacted by mature fields and severe weather conditions [59][60] Business Line Data and Key Metrics Changes - In the upstream segment, total hydrocarbon production amounted to 536,000 barrels of oil equivalent per day in 2024, a 4% increase versus 2023, with shale output representing 53% of the total [38] - Crude oil production grew by 6% in 2024, reaching 257,000 barrels per day, supported by a 26% shale expansion [39] - In the downstream segment, refinery processing levels exceeded 300,000 barrels per day in 2024, with a utilization rate of 92% [13][53] Market Data and Key Metrics Changes - YPF accounted for nearly one-third of Vaca Muerta shale oil production, achieving an output of 122,000 barrels per day in 2024, a 26% increase compared to 2023 [24] - Oil export revenues nearly tripled in 2024, reaching close to $1 billion, with an average of 35,000 barrels per day [26] - The gap to import parity for fuel prices decreased from 20% in 2023 to just 2% in 2024, despite significant currency devaluation [27][51] Company Strategy and Development Direction - The company is focusing on transforming its oil production matrix by increasing shale oil production share from 50% to a minimum of 80% [7] - YPF is reallocating investments towards Vaca Muerta and leading the development of the VMOS oil export pipeline, targeting production ramp-up to 180,000 barrels per day by the second half of 2026 [8] - The company aims to reduce the well construction cycle by 30% by 2025, leveraging efficiency improvements from the Toyota Well project [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets and emphasized the importance of operational efficiencies to mitigate challenges from mature fields and weather impacts [30][37] - The company anticipates sustained growth in 2025, focusing on its most profitable asset, shale oil from Vaca Muerta [25] - Management highlighted the positive outlook for LNG projects and the potential for further operational improvements [114] Other Important Information - YPF successfully issued international bonds totaling $800 million in January 2024, followed by additional bond transactions, effectively lowering yields [15][16] - The company reported a 15% growth in sales EBITDA in 2024 compared to 2023, despite challenges from mature fields and weather impacts [29] Q&A Session Summary Question: Confidence in Vaca Muerta expansion and production ramp-up - Management expressed strong confidence in achieving the targeted production of 180,000 barrels by Q4 2026, citing partnerships and operational readiness [71][75] Question: Current selling prices and CapEx reduction considerations - Management discussed the pricing strategy for crude oil and gasoline, indicating that adjustments would be made based on market conditions, with potential CapEx reductions if oil prices decline significantly [81][102] Question: Free cash flow expectations for 2025 - Management confirmed plans for neutral cash flow in 2025, with further details to be provided at the upcoming Investor Day [110][113] Question: Update on LNG projects - Management provided a positive outlook on LNG projects, indicating that more details would be shared during the Investor Day [111][114] Question: Lifting costs and expectations for Q1 - Management noted ongoing efforts to maintain lifting costs through efficiency improvements, with expectations for stable costs moving forward [112][115] Question: M&A activity and interest in other assets - Management indicated no current interest in acquiring additional refineries but remains open to evaluating opportunities in core areas, particularly in Vaca Muerta [120][123]

YPF (YPF) Q4 2024 Earnings Call March 07, 2025 09:00 AM ET Company Participants Margarita Chun - Investor Relations OfficerHoracio Marin - CEO & ChairmanMaximiliano Westen - Strategy, New Businesses and Controlling Vice PresidentFederico Barroetave - Chief Financial OfficerAndrés Cardona - DirectorDaniel Guardiola - Executive Director - Equity ResearchBruno Montanari - Executive Director - Equity ResearchTasso Vasconcellos - Equity ResearchLeonardo Marcondes - VP - Equity ResearchGuilherme Costa Martins - E ...

YPF (YPF) Q4 2024 Earnings Call March 07, 2025 09:00 AM ET Company Participants Margarita Chun - Investor Relations OfficerHoracio Marin - CEO & ChairmanMaximiliano Westen - Strategy, New Businesses and Controlling Vice PresidentFederico Barroetave - Chief Financial OfficerAndrés Cardona - DirectorDaniel Guardiola - Executive Director - Equity ResearchBruno Montanari - Executive Director - Equity ResearchTasso Vasconcellos - Equity ResearchLeonardo Marcondes - VP - Equity ResearchGuilherme Costa Martins - E ...

Core Insights - Argentina has emerged as the top-performing stock market globally over the past three years, with the Global X MSCI Argentina ETF (ARGT) more than tripling in value since late January 2022, significantly outperforming other markets [1] Group 1 - The Global X MSCI Argentina ETF (ARGT) has increased over 200% since late January 2022, indicating a strong bullish trend in the Argentine market [1]