YPF(YPF) - 2022 Q4 - Annual Report

Financial Performance - Net cash flows from operating activities increased to US $5,693 million in 2022, a 35.5% rise from US$ 4,201 million in 2021[689]. - Cash and cash equivalents at the end of fiscal year 2022 were US $773 million, up from US$ 611 million at the beginning of the year[689]. - Total debt amounted to US $10,585 million as of December 31, 2022, with US$ 2,200 million maturing in less than one year[702]. - The company aims to maintain a maximum net leverage ratio target of 1.75 times EBITDA to ensure financial discipline[698]. - As of December 31, 2022, other liabilities amounted to US $4,936 million[711]. Investment Activities - Net cash flows used in investing activities rose to US$ 4,016 million in 2022, a 57.7% increase from US $2,547 million in 2021, primarily due to higher investments in property, plant, and equipment[690]. - The company plans a capital expenditure program of approximately US$ 5 billion for 2023, a 20% increase compared to 2022, focusing on Upstream operations[695]. - Capital expenditures for Upstream operations were US $3,149 million in 2022, representing 74.5% of total capital expenditures[703]. Production Outlook - Expected production growth for 2023 includes an 8% increase in oil and a 3% increase in natural gas, driven by a 30% increase in shale oil and a 15% increase in shale gas production[697]. Economic and Regulatory Risks - The company anticipates that any adverse economic conditions in Argentina could negatively impact its operations and cash flows[698]. - The Argentine government owns 51% of the shares of YPF S.A., impacting its operations significantly[709]. - The Expropriation Law prioritizes self-sufficiency in hydrocarbons supply as a national public interest[709]. - The company faces risks related to pricing of products in Argentina, which may adversely affect operational results[708]. Impairment and Pricing - If future crude oil and natural gas prices were reduced by US$ 5/bbl and US $0.5/mmBtu, the provision for impairment of long-lived assets would increase by approximately US$ 1.04 billion before income tax effects[712]. - Future impairment losses are difficult to predict due to various influencing factors such as prices, operating costs, and foreign exchange rates[712]. - The recoverable amount of property, plant, and equipment is analyzed at year-end or when impairment evidence arises[712]. - The company’s pricing policy is influenced by macroeconomic conditions and international oil price fluctuations[708]. Accounting and Estimates - The accounting policies and estimates are detailed in the Audited Consolidated Financial Statements[710]. - The company’s estimates of oil and gas reserves are available in the business organization section of the annual report[713].