YPF (YPF) investor relations material

Executive summary

• Achieved solid Q2 results despite oil price volatility, with milestones in the 4x4 plan and progress in portfolio management and operational efficiency.

• Revenues rose 1% sequentially to $4,641M, driven by peak gas and diesel demand and higher oil exports, but offset by lower Brent prices.

• Shale oil production reached record highs, with July at 165,000 barrels/day and a year-end target of 190,000 barrels/day.

• Major midstream expansion with BeMos/VMOS pipeline, securing $2B syndicated loan, unlocking future production growth.

• Continued divestment of mature and non-core assets, focusing capital on Vaca Muerta and acquiring high-potential shale acreage for $500M.

Financial highlights

• Q2 revenue stable at $4,641M; adjusted EBITDA at $1,124M, down 10% sequentially and 7% year-over-year, mainly due to Brent price contraction and mature field exits.

• Q2 net profit was $58M, a turnaround from a $10M loss in Q1, but down 96% year-over-year; excluding mature fields, net profit would have been $254M.

• Negative free cash flow of $355M to $365M in Q2, mainly due to mature field impact and working capital needs; net debt rose to $8.8B.

• 71% of Q2 investments ($1.16B) allocated to unconventional assets.

• Net leverage ratio at 1.9x, up from 1.8x in Q1, expected to decrease to 1.8x by year-end.

Outlook and guidance

• Shale oil production expected to reach 190,000 barrels/day by year-end and 250,000 barrels/day by 2026.

• CapEx guidance remains at $5.2B with Brent at $72/barrel; no changes planned.

• Net leverage ratio anticipated to normalize to 1.8x by year-end as EBITDA rises and mature field divestments continue.

• LNG project advancing, with FID for MARQ II vessel and pipeline expansion; full FID for Argentina LNG expected in Q1 2026.

• Focus remains on unconventional development, especially Vaca Muerta, with 71% of CAPEX directed to shale.