YPF

Business Context and Reporting Period

Company: YPF Sociedad Anónima
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter 2025 (Ended June 30, 2025)
Date of Filing: August 7, 2025
Overview: YPF is Argentina's largest integrated energy company, producing approximately 40% of the country's oil and 30% of its gas. The company is currently executing a strategy to divest conventional mature fields while aggressively developing shale assets in the Vaca Muerta formation.

Key Financial Metrics

Operational Highlights

• Hydrocarbon Production: 545.7 Kboe/d (2Q25), up 1% year-over-year.
• Shale Oil Production: 145.1 Kbbl/d, representing 59% of total oil production.
• Crude Oil Realization Price: $59.5/bbl (down 16% year-over-year due to Brent contraction).
• Lifting Costs: $12.3/boe (down 24% year-over-year), driven by reduced exposure to mature fields.

Material Changes vs. Prior Period

Revenue and Profitability: Revenues remained flat quarter-over-quarter (+1%) but declined 6% year-over-year. Adjusted EBITDA decreased 10% quarter-over-quarter and 7% year-over-year, primarily due to lower Brent prices affecting local fuel valuations and inventory values. Net Result improved significantly from a loss of $10 million in 1Q25 to a profit of $58 million in 2Q25, though it remains down 89% year-over-year.

Cost Structure: Lifting costs decreased 19% quarter-over-quarter to $12.3/boe, reflecting the successful divestment of high-cost mature fields. However, OPEX increased slightly due to refinery maintenance and seasonal factors.

Debt and Liquidity: Net Debt increased 6% quarter-over-quarter to $8.83 billion, driven by new local bond issuances and a reduction in cash balances. The Net Leverage Ratio rose to 1.9x. Cash and short-term investments decreased to $1.01 billion.

Guidance, Outlook, and Strategic Updates

Strategic Acquisitions: YPF executed a binding agreement to acquire a 45% working interest in the La Escalonada and Rincón La Ceniza blocks in North Vaca Muerta from Total Austral S.A. for $500 million, reinforcing its focus on high-potential shale assets.

Project Progress:

• VMOS Export Pipeline: A $2 billion syndicated loan was secured to finance ~70% of the $3 billion CAPEX. Construction is 23% complete.
• Argentina LNG: Final Investment Decision (FID) approved for the second vessel (MK II, 3.5 MTPA), with commercial operation expected in 2028. Phase 3 (~12 MTPA) Heads of Agreement signed with ENI.
• Conventional Exit Program: Significant progress in divesting mature fields, with 24 blocks divested in Andes Phase I and 11 blocks reverted in the Mature Fields reversal program.

Outlook: Management expects continued growth in shale oil production and gas exports. The company is navigating lower international oil prices while maintaining cost discipline through the exit from mature conventional assets.

Investor Verification Checklist

• Debt Maturity Profile: Verify the $793 million in debt maturities due in the second half of 2025 and the company's refinancing strategy.
• Shale Cost Efficiency: Monitor the "Core-Hub" lifting cost of $4.9/boe to ensure it remains competitive despite inflationary pressures in Argentina.
• Export Pipeline Financing: Confirm the drawdown schedule and construction progress of the VMOS pipeline, critical for future export capacity.
• Local Currency Exposure: Assess the impact of Argentine peso volatility on the company's local revenue streams and debt service, despite the majority of debt being dollar-denominated.
• Divestment Proceeds: Track the realization of proceeds from the ongoing sale of mature conventional fields to offset CAPEX and debt reduction.