YPF(US:YPF)2025-03-07 15:02Financial Data and Key Metrics Changes - Revenues reached $19.3 billion in 2024, marking an 11% annual increase driven by rebounded fuel prices and a rise in oil exports [23] - Adjusted EBITDA totaled $4.7 billion in 2024, reflecting a 15% annual increase, mainly boosted by higher revenues in hydrocarbon production [23] - Net results improved substantially, posting a gain of $2.4 billion in 2024 compared to a loss of $1.3 billion in the previous year [24] - Net debt rose to $7.4 billion, a 9% increase from 2023, but the net leverage ratio was successfully reduced to 1.6 times [24][42] Business Line Data and Key Metrics Changes - In the upstream segment, total hydrocarbon production amounted to 536,000 barrels of oil equivalent per day in 2024, an increase of 4% versus 2023, with shale output representing 53% of the total [25] - Crude oil production reached 257,000 barrels per day, showing a 6% annual growth, while natural gas production grew 3% to 37.4 million cubic meters per day [26] - In the downstream segment, processing levels reached 301,000 barrels per day in 2024, a 2% increase from 2023, with a refined utilization rate of 92% [34] Market Data and Key Metrics Changes - YPF became the largest oil exporter in Argentina in 2024, with oil export revenues nearly tripling to around $1 billion, averaging 35,000 barrels per day [18] - The gap to import parity for fuel prices decreased from 20% in 2023 to just 2% in 2024, despite significant currency devaluation [18][34] - Fuel sales volumes decreased by 7% in 2024 to 13.9 million cubic meters, mainly due to exceptionally high demand in 2023 [34] Company Strategy and Development Direction - The company is focusing on increasing shale oil production share from 50% to a minimum of 80% and reallocating investments towards Vaca Muerta [5][6] - YPF is leading the development of midstream projects, including a new oil export pipeline, aiming to ramp up production to 180,000 barrels per day by the second half of 2026 [6] - The company is committed to exiting mature fields to eliminate losses and inefficiencies, with significant progress made in asset transfers [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets, particularly in shale oil, and highlighted the importance of operational efficiencies [30][31] - The company anticipates sustained growth in 2025, focusing on its most profitable asset, shale oil from Vaca Muerta [17] - Management acknowledged challenges from mature fields and adverse weather conditions but remains optimistic about future performance [20][24] Other Important Information - The company reported a negative free cash flow of $760 million in 2024, impacted by mature fields and weather conditions [21][39] - YPF plans to hold an Investor Day on April 11 to present its five-year plan and key strategic drivers [44] Q&A Session Summary Question: Update on Vaca Muerta expansion and confidence in production targets - Management expressed confidence in delivering production targets by Q4 2026, citing strong partnerships and operational capabilities [47][50] Question: Current crude oil selling prices and CapEx reduction considerations - Management indicated that crude oil prices are aligned with import parity and emphasized a strategy to avoid price spikes [54][58] - CapEx adjustments will be considered if oil prices decline significantly, but the company is resilient to low prices [62] Question: Free cash flow expectations for 2025 and LNG project updates - Management confirmed plans for neutral cash flow in 2025 and provided a positive outlook on LNG projects [69][70] Question: Interest in potential M&A activity in Argentina - Management stated that while YPF is open to opportunities, there are currently no plans to acquire additional refineries [81][83]