YPF Sociedad Anónima Q2 FY2025 earnings call

• Pillar 1 (Oil Vaca Muerta): Continued expansion of shale oil operations, production increased to ~165,000 barrels per day in July, projects to close 2025 at ~190,000 barrels per day. Midstream infrastructure progress with VMOS financial closing and $2 billion syndicated loan.
• Pillar 2 (Active Portfolio Management): Divested mature fields, achieved 24% interannual reduction in lifting costs. Expanded divestment scope to include 16 conventional blocks, acquired Prime Tier 1 Shell acreage from Total.
• Pillar 3 (Upstream and Downstream Efficiencies): Inaugurated real-time intelligence centers, reduced maintenance duration, improved drilling and fracking speeds.
• Pillar 4 (Argentina LNG Project): Signed health of agreement with ENI, SPV SESA obtained FID approval for second floating LNG vessel MK II, expected to be operational in 2028.

Upstream Segment

• Second quarter total hydrocarbon production was 546,000 barrels of oil equivalent per day, stable sequentially and interannually. Shale production represents 62% of the total output. Crude oil production was 248,000 barrels per day in Q2, down 8% sequentially. Oil exports in Q2 totaled 44,000 barrels per day, up 20% sequentially. Natural gas production increased 6% sequentially to 40 million cubic meters per day. Lifting cost was $12.3 per barrel of oil equivalent, a 19% sequential reduction.

Downstream Segment

• Local fuel prices aligned with international parities, down 8% sequentially and 10% interannually. Fuel sales volume was 3.5 million cubic meters, up 4% sequentially. Refinery processing was 301,000 barrels per day, down 5% sequentially due to maintenance.

• CapEx guidance remains $5.0 billion to $5.2 billion.
• Net leverage ratio expected to be near 2x in Q3, targeting 1.8x by year-end.
• Expect further growth in shale oil production to reach 2025 target of 165,000 barrels per day.

• International price volatility impacting realization prices.
• Dependence on successful divestment of mature and conventional assets.
• Regulatory and negotiation risks in ongoing talks with provinces.

Q: Broader update on development plans and acquisition impact on production?

A: Acquisition of blocks in Vaca Muerta's north is profitable, will prioritize development. No deceleration in YPF's activities.

Q: Andes project timing and export tariff discussion?

A: Andes project near completion, one block in Rio Negro pending government approval. No discussion on oil export tariff reduction with government.

Q: CapEx guidance and equity contributions to Vaca Muerta del Sur?

A: CapEx guidance unchanged, equity contributions to VMOS will be ~$230 million, with $76 million already contributed, remaining $155 million by COD.

Q: Proceeds from divesting conventional assets and competitive M&A landscape?

A: Cannot specify exact proceeds but expects more than acquisition cost. No significant competitive assets for sale in Vaca Muerta currently.

Q: Time line for investing in Total acquisition area and 2026 maturities refinancing?

A: Will work with partners to decide development timeline. Refinancing of 2026 maturities will start later in the year, focusing on local markets.

Q: Divestiture of assets excluding Andes and downstream discount strategy?

A: Divestiture includes Metrogas and other refineries. Downstream discount strategy increased nighttime sales and reduced losses, improving profitability.