Financial Performance - Revenues for Q1 2025 totaled $4,608 million, a decrease of 3% quarter-over-quarter (q/q) but an increase of 7% year-over-year (y/y) compared to Q1 2024[15]. - Net result for Q1 2025 was a loss of $10 million, a 96% improvement from a loss of $284 million in Q4 2024, but a decline from a profit of $657 million in Q1 2024[7]. - Revenues totaled US$3.9 billion, down 3% q/q, primarily due to lower seasonal diesel demand and a decline in oil exports[35]. - Gross profit for Q1 2025 was $1,279 million, reflecting a significant increase of 28.5% Q/Q, although it showed a slight decrease of 0.9% Y/Y[5.2]. - Operating income for Q1 2025 was $192 million, a substantial recovery from a loss of $530 million in Q4 2024, but a decrease of 71.2% Y/Y from $666 million in Q1 2024[5.2]. - The company reported a net loss of US$10 million in 1Q25, a significant improvement from a loss of US$284 million in 4Q24[21]. - The company recorded a financial net loss of US$256 million in 1Q25, compared to a loss of US$112 million in 4Q24, mainly due to lower domestic interest income rates[20]. - Earnings per share attributable to shareholders of the parent company was $(0.04) in Q1 2025, down 94.6% from $1.66 in Q1 2024[5.2]. Operational Highlights - Adjusted EBITDA reached $1,245 million, reflecting a significant increase of 48% q/q, primarily driven by higher fuel prices and operational savings from divested mature fields[8]. - Adjusted EBITDA reached US$766 million in 1Q25, reflecting a 28% increase quarter-over-quarter, driven by seasonal demand for natural gas and higher crude oil prices[29]. - Total revenues for the upstream segment amounted to US$2,067 million in 1Q25, a 5% increase from the previous quarter, primarily due to a 21% rise in natural gas sales[25]. - The company’s adjusted EBITDA for the midstream and downstream segment was US$504 million in 1Q25, a 36% increase quarter-over-quarter[23]. - The company’s adjusted EBITDA, excluding inventories price effect, reached US$504 million, up 36% q/q, supported by higher local fuel prices[39]. - The company produced approximately 40% of Argentina's oil and 30% of its gas, maintaining its position as the largest shale producer in Vaca Muerta[6]. - Shale oil production averaged 147.3 kbbl/d, representing a 7% increase q/q and a 31% increase y/y, constituting 55% of total oil production[11]. - Crude oil production averaged 270 kbbl/d, flat q/q, with shale oil growth at 147 kbbl/d (+7% q/q), offsetting a 6% decline in conventional output[32]. - Natural gas production increased by 9% q/q, driven by higher seasonal demand from power plants, while NGL production rose by 34% q/q[33]. Capital Expenditures and Investments - Capital expenditures (CAPEX) amounted to $1,214 million, down 8% q/q but up 4% y/y, with 75% focused on unconventional activities, particularly shale[10]. - CAPEX for the upstream segment was US$979 million in 1Q25, an 11% increase from 4Q24, with a focus on drilling and workover activities[29]. - CAPEX was US$204 million, a decrease of 42% q/q, with 53% allocated to refining projects[41]. - The company signed a Memorandum of Understanding (MoU) for the transfer of 10 conventional blocks in Santa Cruz Province as part of its Mature Fields Exit Program[12]. - Argentina LNG project received Final Investment Decision (FID) approval for a 20-year charter agreement for 2.45 MTPA FLNG, with expected completion by 2027[12]. Debt and Financial Position - The company reported a net debt of $8,336 million, an increase of 12% q/q and 16% y/y, with a net leverage ratio of 1.8x[7]. - Total debt increased to US$9,566 million, reflecting a 7.0% rise from the previous quarter[58]. - The company issued a 9-year unsecured international bond for US$1.1 billion at a yield of 8.50% during 1Q25[60]. - The net leverage ratio increased from 1.6x in 4Q24 to 1.8x in 1Q25, with expectations to return to 1.5x to 1.6x after closing the mature fields transaction[59]. - Cash and short-term investments decreased to US$1,230 million, an 18.4% decline compared to the previous quarter[58]. - Free cash flow was negative US$957 million, impacted by US$230 million from mature fields and US$211 million from M&A activities[54]. Market Position and Shareholder Information - The company’s total issued capital stock was 393,312,793 shares as of March 2025, with 51% owned by the Argentina Government[19]. - YPF operates three refineries, accounting for about 50% of Argentina's refining capacity, and holds a market share of over 55% in local diesel and gasoline sales[6]. - The company’s subsidiary, Metrogas, distributes around 25% of the country's natural gas, while YPF Luz is the third largest power generation company in Argentina[6]. - The government holds a controlling 51% stake in YPF, which is listed on the NYSE and ByMA[6]. - The company is in the process of divesting conventional mature fields to focus on its core operations[6].

Core Insights - The focus is on identifying value companies, particularly in the commodities sector, which exhibit sustained free cash flows, low leverage, and potential for recovery during distress [1] - There is a preference for analyzing underappreciated sectors such as oil & gas, metals, and mining, especially in emerging markets, to uncover investment opportunities [1] - Companies with a strong pro-shareholder approach, including consistent buyback programs and dividend distributions, are prioritized for investment consideration [1] Company Characteristics - Target companies should demonstrate high margins and present good medium to long-term investment opportunities [1] - The analysis emphasizes the importance of sustainable debt levels over time [1] - A solid financial background, including a master's degree in finance with a specialization in company valuation, supports the analytical approach [1] Market Approach - The strategy involves focusing on companies that are not widely recognized by the market, which may lead to discovering undervalued assets [1] - The investment philosophy is centered around individual investors and aims to provide valuable insights to the Seeking Alpha community [1]

Group 1 - The Argentine company is consolidating its position as the leading integrated oil company in the country [1] - The company is achieving strong results in operational efficiency and profitability [1] - A long-term strategy focused on shale development and export is driving the company's success [1]

YPF Sociedad Anonima (YPF) shares ended the last trading session 9% higher at $29.59. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 14.8% loss over the past four weeks.YPF Sociedad Anonima’s stock surged during the last trading session, buoyed by the continued strength in oil and gas prices, which rose by nearly $3 per barrel. Natural gas prices also experienced an increase. The broader market rally was fueled by ...

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]