YPF(YPF) - 2025 Q4 - Annual Report

Cash Flows - Net cash flows from operating activities in 2025 amounted to US$ 4,959 million, a decrease of US$ 910 million from US$ 5,869 million in 2024[674]. - Net cash flows used in investing activities in 2025 were US$ 5,527 million, an increase of US$ 16 million compared to US$ 5,511 million in 2024, primarily due to acquisitions from business combinations[677]. - Net cash flows from financing activities in 2025 were US$ 517 million, primarily due to proceeds from loans net of debt repayments of US$ 1,610 million[678]. Debt and Liabilities - Total debt as of December 31, 2025, was US$ 14,082 million, with US$ 2,870 million maturing in less than one year[684]. - As of December 31, 2025, total other liabilities amounted to US$ 6,404 million, including provisions for lawsuits and environmental liabilities[684]. - The company committed to purchase goods and services for approximately US$ 6,735 million as of December 31, 2025, with US$ 1,778 million maturing in less than one year[679]. Capital Expenditures and Commitments - Capital expenditures in 2025 totaled US$ 4,993 million, with 75.7% allocated to upstream activities[683]. - Exploration and development commitments until the expiration of main permits amounted to US$ 699 million as of December 31, 2025[681]. Asset Management and Impairment - The recoverable amount of property, plant and equipment, intangible assets, and right-of-use assets is analyzed at year-end or when impairment indications arise[703]. - A hypothetical reduction of crude oil prices by US$ 5/bbl and natural gas prices by US$ 0.5/MBtu could decrease future cash flows for impairment by approximately US$ 3.1 billion, although no impairment loss would need to be recorded[703]. - Significant estimates and key sources of estimation uncertainty are detailed in the financial statements, impacting the assessment of asset impairment[702]. Operational Impact - The Argentine government's actions significantly impact the oil and gas industry, affecting company operations and financial performance[701]. Strategic Initiatives - The optimization plan of the conventional upstream portfolio includes the disposal of non-core assets, with significant progress made in 2025[686]. - The company executed an assignment agreement for the transfer of 100% of rights and obligations in certain exploitation concessions in January 2026[688].