Financial Data and Key Metrics Changes - In 2025, the company achieved a record-high EBITDA of $5 billion, marking the highest in the last 10 years and the third largest in company history, despite a 15% contraction in Brent prices [5][10] - Annual revenues totaled $18.4 billion, reflecting a modest decline of 4% compared to the previous year, primarily due to the significant drop in Brent prices [10][11] - Adjusted EBITDA increased by 8% in 2025, with the EBITDA margin growing from 24% in 2024 to 27% in 2025 [11][12] - Free cash flow returned to positive territory in Q4 2025 at $261 million, driven by operational performance and proceeds from asset sales [13] Business Line Data and Key Metrics Changes - Shale oil production grew by 42% year-on-year in December 2025, reaching 204,000 barrels per day, exceeding the target of 190,000 barrels per day [6][23] - Conventional oil production averaged 90,000 barrels per day in 2025, a 32% decline compared to 2024, with Q4 production dropping to 68,000 barrels per day [23][24] - The midstream and downstream segments achieved record-high operational results, with refinery utilization rates reaching almost 100% in Q4 2025 [7][12] Market Data and Key Metrics Changes - Vaca Muerta shale reserves expanded by 32% in 2025, now accounting for 88% of total peak oil reserves, with a reserve replacement ratio of 3.2 times and a reserve life of 9 years [7][29] - The company maintained a solid 56% market share in domestic gasoline and diesel sales, which increases to 60% when including third-party gas stations [38] Company Strategy and Development Direction - The company is focused on becoming a leading shale integrating company and a significant shale exporter, with a strategic shift towards unconventional operations [10][44] - Significant steps were taken in the development of the LNG project, with a commitment from international partners and a competitive LNG breakeven price positioning YPF for future leadership in the global LNG market [9][40] - The company executed a series of M&A transactions to enhance its portfolio, including acquiring world-class blocks in Vaca Muerta and divesting conventional assets [8][31] Management's Comments on Operating Environment and Future Outlook - Management highlighted the transformational year of 2025, emphasizing resilience and operational discipline despite volatile pricing environments [5] - The company expects to target shale oil production of approximately 215,000 barrels per day in 2026, with an exit rate of around 250,000 barrels per day [44] - The outlook for adjusted EBITDA in 2026 is estimated to range between $5.8 billion and $6.2 billion, driven by a strategic shift in production mix and efficiency programs [44] Other Important Information - The company successfully raised $3.7 billion in new funding during 2025, demonstrating strong market access and credibility [10][18] - Safety performance improved significantly, achieving a frequency rate of 0.09 accidents per million hours worked [14] Q&A Session Summary Question: Production targets and operational bottlenecks - Management expects to deliver between 200,000 to 210,000 barrels per day in the first half of 2026, with infrastructure improvements needed for higher production [48][49] Question: Well productivity and drilling inventory - YPF maintains a leading position in well productivity, with significant cost reductions achieved through competitive bidding processes [50][51] Question: Free cash flow profile and concentration - The company anticipates a neutral to slightly negative free cash flow position for 2026, influenced by CapEx and M&A activities [53][62] Question: Conventional asset investments and lifting costs - Management aims to exit conventional production entirely by the end of 2026, with expected lifting costs decreasing to around $7 per barrel [66][68]

Financial Data and Key Metrics Changes - In 2025, the company achieved a record-high EBITDA of $5 billion, marking a 8% increase from the previous year, despite a 15% contraction in Brent prices [5][11] - Annual revenues totaled $18.4 billion, reflecting a modest decline of 4% compared to the previous year [10] - The adjusted EBITDA margin grew from 24% in 2024 to 27% in 2025, indicating improved operational efficiency [11] Business Line Data and Key Metrics Changes - Shale oil production grew by 42% year-on-year in December 2025, reaching 204,000 barrels per day, exceeding the target of 190,000 barrels per day [6] - The lifting costs were reduced by 44% in Q4 2025 compared to the previous year, with total upstream lifting costs declining to $9.6 per BOE [6][24] - The midstream and downstream segments achieved record-high refinery utilization rates, with Q4 reaching nearly 100% [7][12] Market Data and Key Metrics Changes - Vaca Muerta shale reserves expanded by 32%, now accounting for 88% of total peak oil reserves, with a reserve replacement ratio of 3.2x [7][29] - The company maintained a solid 56% market share in domestic gasoline and diesel sales, increasing to 60% when including third-party gas stations [38] Company Strategy and Development Direction - The company is focused on becoming a leading shale integrating company and a significant shale exporter, with a strategic shift towards unconventional operations [10][44] - Significant M&A activities were executed, including the acquisition of three world-class blocks in Vaca Muerta and a partnership with Vista Energy to accelerate development [8][9] - The Argentina LNG project is a key focus, with plans for a total LNG capacity of around six million tons per year, supported by competitive breakeven prices [40][42] Management's Comments on Operating Environment and Future Outlook - Management highlighted the transformational year of 2025, emphasizing resilience and operational discipline despite market volatility [5] - The company expects to target shale oil production of approximately 215,000 barrels per day in 2026, with an adjusted EBITDA range of $5.8 billion to $6.2 billion [44][45] - The management expressed confidence in meeting debt obligations and maintaining a strong financial position [21][22] Other Important Information - The company raised $3.7 billion in new funding during 2025, demonstrating strong market access and credibility [10][19] - Safety performance improved significantly, achieving a frequency rate of 0.09 accidents per million hours worked [14] Q&A Session Summary Question: Production targets and operational bottlenecks - Management indicated that production will be between 200-210,000 barrels per day in the first half of 2026, with infrastructure improvements needed for higher output [49] Question: Well productivity and drilling inventory - Management noted that YPF has the highest well productivity among Argentine companies and is focused on reducing costs through competitive bidding [50] Question: Free cash flow profile and concentration - Management explained that free cash flow for 2026 is expected to be neutral to slightly negative, influenced by CapEx and M&A activities [60] Question: Conventional assets divestment timeline - Management aims to exit conventional production entirely by the end of 2026, focusing solely on shale operations [64] Question: LNG project partnerships - Management confirmed binding agreements with current partners and is evaluating interest from additional partners, though not necessary for project development [78]

Financial Data and Key Metrics Changes - In 2025, the company achieved a record-high EBITDA of $5 billion, marking the highest in the last 10 years and the third largest in company history, despite a 15% contraction in Brent prices [4][9] - Annual revenues totaled $18.4 billion, reflecting a modest decline of 4% compared to the previous year, primarily due to the significant drop in Brent prices [9][10] - Adjusted EBITDA increased by 8% in 2025, with the EBITDA margin growing from 24% in 2024 to 27% in 2025 [10][12] - Q4 adjusted EBITDA reached nearly $1.3 billion, reflecting an impressive 53% internal growth [10] Business Line Data and Key Metrics Changes - Shale oil production grew by 42% in December 2025 year-on-year, reaching 204,000 barrels per day, exceeding the target of 190,000 barrels per day [5][22] - Conventional oil production averaged 90,000 barrels per day in 2025, a 32% decline compared to 2024, with Q4 averaging 68,000 barrels per day [22][24] - The midstream and downstream segments achieved record-high operational results, with a refinery utilization rate of almost 100% in Q4, growing by 10% internally [6][11] Market Data and Key Metrics Changes - Vaca Muerta shale reserves expanded by 32%, now accounting for 88% of total peak oil reserves, with a reserve replacement ratio of 3.2 times and a reserve life of 9 years [6][29] - The company maintained a solid 56% market share in domestic gasoline and diesel sales, increasing to 60% when including third-party gas stations [39] Company Strategy and Development Direction - The company is focused on becoming a leading shale integrating company and a significant shale exporter, with a strategic shift towards unconventional operations [9][45] - Significant steps were taken in the development of the LNG project, with a commitment from international partners and a competitive LNG breakeven price positioning YPF for leadership in the global LNG market [8][41] - The company executed a series of significant acquisitions in Vaca Muerta, reinforcing its portfolio and operational efficiency [7][34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the transformational year of 2025, emphasizing resilience and operational discipline despite volatile pricing environments [4] - The company anticipates a production target of approximately 215,000 barrels per day for shale oil in 2026, with an expected exit rate of around 250,000 barrels per day [45] - The outlook for adjusted EBITDA in 2026 is estimated to range between $5.8 billion and $6.2 billion, driven by strategic production shifts and efficiency programs [45] Other Important Information - The company successfully raised $3.7 billion in new funding during 2025, demonstrating strong market access and credibility [9][18] - Free cash flow returned to positive territory in Q4 2025 at $261 million, primarily driven by operational performance and asset sales [12][18] Q&A Session Summary Question: Production targets and operational bottlenecks - Management expects to deliver between 200,000 to 210,000 barrels per day in the first half of 2026, with infrastructure improvements needed for higher production [50][51] Question: Well productivity and drilling inventory - YPF maintains a leading position in well productivity, with significant cost reductions achieved through competitive bidding processes [52][53] Question: Free cash flow profile and concentration - The company anticipates a neutral to slightly negative free cash flow position for 2026, influenced by CapEx and M&A activities [56][64] Question: Conventional asset investment and production evolution - Management aims to exit conventional production entirely by the end of 2026, focusing solely on shale operations [68][69] Question: LNG project partnerships - The company is analyzing interest from potential new partners for the LNG project but can proceed with current partners [81][82] Question: Refining margins and pricing strategy - The company employs a dynamic pricing policy to manage refining margins, adjusting prices based on market conditions [86]

Core Insights - The Vaca Muerta shale development is crucial for Argentina's energy landscape, addressing declining conventional oil and gas production and reducing energy imports [1][4][11] Production Trends - Argentina achieved a record oil production of 849,646 barrels per day in October 2025, marking a 2% month-on-month increase and a 15.5% year-on-year rise [3] - Natural gas output fell nearly 11% month-on-month and almost 7% year-on-year to just under 4.4 billion cubic feet per day, with shale gas production dropping 14% month-on-month [2] - Shale oil production surged to 571,478 barrels per day, accounting for 67.26% of total petroleum production, driven by increased drilling activity in Vaca Muerta [3][4] Economic Impact - The Vaca Muerta shale has transformed into the largest and most profitable shale play in Latin America, significantly contributing to Argentina's hydrocarbon output [5][11] - The development of Vaca Muerta is expected to enhance Argentina's balance of trade by reducing natural gas imports and increasing exports, thereby improving fiscal revenues for the government [11] Industry Challenges - Conventional oil production in Argentina is in decline, with high operational fragility and insufficient capital investment leading to mature oilfields being shuttered [7][10] - The high lifting costs of conventional oilfields, estimated at $35 to $45 per barrel, contrast sharply with the lower costs of $15 to $18 per barrel in Vaca Muerta, making the latter more attractive for investment [9][10] Future Potential - The U.S. Energy Information Administration estimates that Vaca Muerta contains 16 billion barrels of shale oil and 308 trillion cubic feet of shale gas, indicating significant growth potential with only 10% currently developed [6] - Analysts predict that Vaca Muerta could eventually produce at least 1 million barrels of oil and 5.7 billion cubic feet of shale gas per day, highlighting its role as a key growth engine for Argentina's energy sector [6][11]