YPF Q3 Earnings Beat on Lower Operating Expenses, Revenues Fall Y/Y

Core Insights - YPF Sociedad Anónima reported Q3 2025 earnings of 84 cents per share, exceeding the Zacks Consensus Estimate of 82 cents, but down from $3.75 in the same quarter last year [1][9] - Total revenues for the quarter were $4.64 billion, missing the Zacks Consensus Estimate of $5.05 billion and down from $5.3 billion year-over-year [1] Operational Performance - Total hydrocarbon production decreased by 6.4% year-over-year to 523.1 thousand barrels of oil equivalent per day (Mboe/d) [3] - Crude oil production averaged 239.8 thousand barrels per day (MBbl/D), down from 255.8 MBbl/D a year ago, primarily due to lower conventional production from mature fields [3] - Natural gas production fell by 4.8% year-over-year to 38.4 million cubic meters per day, affected by lower conventional gas output [4] Price Realizations - Average price realization for crude oil decreased by 12.1% year-over-year to $60 per barrel [5] - Average natural gas price realizations fell by 3% year-over-year to $4.3 per million British thermal unit [5] - Adjusted EBITDA from upstream activities increased by 32.9% year-over-year to $1,042 million, driven by lower lifting costs and growth in seasonal natural gas sales [5] Midstream & Downstream - Processed crude volumes reached 326.2 MBbl/D, a 9.3% increase from 298.3 MBbl/D in the prior year [6] - Refinery utilization rate improved to 96.5% from 88.3% year-over-year [6] - Adjusted EBITDA from the midstream and downstream segment was reported at $354 million, down 25.6% year-over-year due to a fall in local fuel prices [6] Operating Expenses - Total operating expenses decreased by 30.9% year-over-year to $1,356 million, attributed to cost savings from reduced exposure to conventional mature fields and increased shale production [7] Cash Flow - Net cash flow from operating activities totaled $1,225 million, while the company reported a negative free cash flow of $759 million for the quarter [8] Balance Sheet - As of September 30, 2025, YPF had cash and short-term investments of $1.02 billion and total debt of $10.6 billion [10]