YPF Sociedad Anónima

What they do

YPF explores, develops, and produces hydrocarbons, primarily in Argentina, with a focus on the Vaca Muerta shale play. The company also refines, markets, and transports oil and gas products, and is involved in petrochemicals and power generation. It operates through segments including Exploration and Production, Downstream, and Gas and Power.

Revenue drivers

• Exploration and Production (Upstream) — Generates revenue from crude oil and natural gas sales. In 2025, natural gas sales contributed $1,538 million, and crude oil sales are the primary revenue source, driven by Vaca Muerta output.
• Downstream (Refining and Marketing) — Refines and sells fuels, lubricants, and petrochemicals in Argentina. This segment contributes significant revenue from fuel sales, with export withholdings and turnover taxes affecting net revenue.
• Gas and Power — Includes natural gas processing, power generation, and midstream operations. Revenue streams include natural gas sales and power export, supported by infrastructure projects like Vaca Muerta Sur.

Recent performance

For the fiscal year ended December 31, 2025, YPF reported results including a provision for impairment of $1,893 million related to the Mature Fields Project, which was reclassified to assets held for sale. The company also sold its 100% interest in YPF Brasil on January 31, 2025, and closed a dry well in Bolivia in 2025. Financial accretion from liabilities associated with assets held for sale was $173 million in 2025, down from $215 million in 2024. The company recorded unproductive exploratory drillings of $32 million in 2025.

Strategy

YPF is streamlining its portfolio by divesting non-core assets such as YPF Brasil and the Mature Fields Project, aiming to focus on high-potential shale operations in Vaca Muerta. The company is investing in transportation infrastructure through the VMOS project (Vaca Muerta Sur) to export oil. It is also optimizing mature fields and managing regulatory and fiscal obligations, including tax loss carryforward regularization.

Risks

• Regulatory and fiscal risk — Exposed to changes in Argentina's tax policies, including export withholdings and turnover taxes, which affect profitability.
• Exploration risk — Dry wells, such as the Charagua block in Bolivia, highlight the risk of unproductive exploratory spending.
• Market and currency risk — Operations in a high-inflation environment subject to peso devaluation and inflation adjustments impacting financial results.
• Legal and contractual disputes — Ongoing claims, such as the settlement with Transportadora de Gas del Norte, can result in liabilities and additional costs.

Outlook

Management is focusing on completing the sale of mature fields and advancing the Vaca Muerta Sur pipeline project, which is expected to boost oil export capacity. The company will continue to fulfill contractual commitments in Bolivia and manage its tax obligations. No specific revenue or production guidance was provided in the filing.