YPF Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Adjusted EBITDA: Reached a record $2.8 billion, up 70% year-over-year and 76% sequentially.

Operating Result: Achieved $1.8 billion, a new company record.

Net Income: Reported at $1.2 billion, the second-best quarterly performance in YPF's history.

Free Cash Flow: Generated $824 million, marking the third highest in history.

Liquidity: Closed at $2.5 billion, the highest ever for YPF.

Net Leverage: Decreased to 1.1x, the lowest level in over a decade.

Revenue: Approximately $6.6 billion, a 33% sequential increase and 42% year-over-year growth.

2Strategic Updates and Business Highlights

Shale Production: Shale oil production reached 213,000 barrels per day, constituting 80% of total oil production, with expectations to increase to 250,000 barrels per day by year-end.

Capital Expenditures: Over $1.3 billion deployed in Q2, with 77% allocated to unconventional operations.

Portfolio Management: Completed the sale of two clusters in the Andes projects for $405 million and signed an agreement to sell a 70% stake in MetroGAS.

Loma La Lata Oil Project: Submitted a significant application under the RIGI framework for a project expected to generate over $100 billion in export revenue.

Downstream Operations: Refinery processing reached a record 351,000 barrels per day, with a strong EBITDA margin of around $30 per barrel.

3Forward Guidance and Outlook

Adjusted EBITDA Guidance: Revised up to approximately $8 billion for 2026, driven by higher Brent prices and operational efficiencies.

Production Targets: Expected average shale oil production of around 215,000 barrels per day for 2026, with a year-end exit rate of approximately 250,000 barrels per day.

CapEx Guidance: Increased by 5% to a range of $5.8 billion to $6.2 billion, with a focus on shale operations.

Free Cash Flow: Anticipated to be around $2 billion for the year, including proceeds from completed M&A transactions.

4Bad News, Challenges, or Points of Concern

Conventional Asset Divestments: Ongoing divestment of conventional assets may impact short-term production metrics.

Market Volatility: The company faces uncertainty due to fluctuating international oil prices, which could affect profitability.

Operational Risks: Potential delays in infrastructure projects, such as the Vaca Muerta Sur monobuoy delivery, could hinder production ramp-up.

Regulatory Risks: The approval processes for large projects like Loma La Lata Oil and Argentina LNG may face delays or complications.

5Notable Q&A Insights

CapEx Acceleration: Management confirmed plans to accelerate CapEx in the second half of 2026, with expectations to finish the year at $6 billion.

Shale Production Confidence: Executives expressed confidence in meeting production targets, contingent on timely completion of facilities.

Fuel Pricing Strategy: The company plans to maintain competitive pricing while managing local demand and international price fluctuations.

Argentina LNG Project: Management highlighted significant progress in securing partnerships and regulatory frameworks, with a focus on achieving Final Investment Decision (FID) by year-end. Overall, YPF reported a landmark quarter with record financial performance, strong operational execution, and a positive outlook, despite facing challenges related to market volatility and ongoing asset divestments.