YPF Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenues: $4.95 billion, up 9% quarter-over-quarter and 7% year-over-year, driven by rising international prices and strong local fuel demand.

Adjusted EBITDA: Nearly $1.6 billion, the highest first quarter in YPF's history, with a margin of 32%, representing increases of 24% sequentially and 28% year-over-year.

Shale Oil Production: Reached 205,000 barrels per day, a 5% increase from the previous quarter and a 39% increase year-over-year, accounting for 76% of total oil production.

Free Cash Flow: $871 million, a significant improvement of $1.8 billion year-over-year, aided by strategic M&A proceeds of approximately $500 million.

Net Leverage Ratio: Improved to 1.57x, down from 1.9x in Q4 2025, following strong cash generation and debt repayments.

2Strategic Updates and Business Highlights

Operational Efficiency: Achieved record shale oil production and operational efficiencies, including a new fracturing record at the Loma Campana field and a strategic agreement with Halliburton for electric fracturing technology.

Investment: Nearly $1 billion deployed in Q1, with plans to accelerate capital deployment to $5.5 billion to $5.8 billion for the full year.

La Angostura Sur Block: Production increased from 2,000 to 55,000 barrels per day in 18 months, with a breakeven price below $40 per barrel.

LNG Projects: Progressing on CESA and Argentina LNG projects, with strong interest from institutional investors and plans for a final investment decision by year-end.

3Forward Guidance and Outlook

Production Targets: On track to achieve full-year target of approximately 215,000 barrels per day, with an exit rate of 250,000 barrels per day by December.

CapEx Guidance: Expected to maintain a range of $5.5 billion to $5.8 billion for the year, with potential adjustments based on market conditions and operational bottlenecks.

Pricing Strategy: Plans to assess fuel pricing dynamics post-May 15, with a proactive approach to manage local price increases in response to international price fluctuations.

4Bad News, Challenges, or Points of Concern

Demand Contraction: Noted a contraction in gasoline demand in late March, prompting a temporary delay in passing through international price increases to customers.

Conventional Production Decline: Conventional oil fields saw a decline of over 45% year-over-year, impacting overall production metrics.

Infrastructure Bottlenecks: Infrastructure constraints may limit the pace of production ramp-up, particularly in the short term.

Market Volatility: Ongoing geopolitical tensions, particularly in the Middle East, could impact international pricing and local demand dynamics.

5Notable Q&A Insights

Service Market Competition: Increased interest from international service companies in Vaca Muerta is expected to enhance competition and potentially reduce service costs.

Lifting Costs: Continued focus on reducing lifting costs, with a significant 42% year-over-year decrease noted, although inflation pressures could pose future challenges.

LNG Project Interest: Potential for additional partners in the LNG project due to heightened energy security concerns, with expectations for accelerated project timelines.

Drilling Pace: Clarified that drilling activity was consistent, with longer lateral wells being drilled, contributing to a temporary perception of slower activity. Overall, YPF reported a strong start to 2026, with robust financial performance, strategic advancements in shale production, and ongoing developments in LNG projects, while also navigating challenges related to demand fluctuations and infrastructure limitations.