YPF Sociedad Anónima YPF, Argentina’s state-run oil company, recently signed a memorandum of understanding with three major Indian oil players to export up to 10 million tons of liquefied natural gas (LNG) annually.

The memorandum of understanding, inked with Oil and Natural Gas Corporation, Gas Authority of India Limited and Oil and Natural Gas Corporation Videsh Limited in New Delhi, also covered cooperation in lithium, critical minerals and hydrocarbon exploration and production.

YPF-Shell Project to Produce LNG

In December 2024, YPF collaborated with Shell for a $50 billion deal to develop the first phase of the Argentina LNG export project. The project’s objective was to produce 10 million tons of natural gas annually from the vast reserves of the highly lucrative Vaca Muerta shale formation to serve the rising demand from the European and Asian markets.

YPF’s Deal to Export the Energy Transition Resource — Lithium

Beyond LNG, the deal includes a strategic partnership to develop Argentina’s lithium industry.Since India is on its decarbonization path, it needs a secure supply of lithium to support the production of electric vehicles. YPF, in the abovementioned deal, agreed upon cooperation in lithium, which can be extracted, processed and exported to India for use in the manufacture of electric vehicles.

YPF’s Shale Gas Reserves in Vaca Muerta

YPF’s Vaca Muerta is known for playing a pivotal role in turning Argentina into an energy powerhouse, as it has the second-largest shale gas reserve worldwide. The shale patch has the potential to cut back Argentina’s dependence on oil and gas imports.
 

Argentina’s Energy Future

YPF expressed optimism regarding Argentina’s potential to become a global energy exporter and achieve the objective of generating $30 billion in revenues over the next decade.

To secure more business and expand the company’s export potential, YPF’s chief executive recently visited countries like Israel, South Korea and Japan.

YPF’s Zacks Rank and Key Picks

YPF Sociedad Anonima is an international energy company based on the integrated business of hydrocarbons. Currently, YPF has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some top-ranked stocks like ARC Resources Ltd. AETUF, Gulfport Energy Corporation GPOR and Cheniere Energy, Inc. LNG.While ARC Resources and Gulfport Energy currently sport a Zacks Rank #1 (Strong Buy) each, Cheniere Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Calgary, Canada-based ARC Resources is engaged in the exploration, acquisition and development of oil and natural gas properties. AETUF’s expected EPS growth rate for next year is 50.78%, which aligns favorably with the industry growth rate of 10.50%.

Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.

Houston, TX-based Cheniere Energy is primarily engaged in businesses related to liquefied natural gas through its two business segments: LNG terminal, and LNG and natural gas marketing. LNG’s expected EPS (earnings per share) growth rate for the next quarter is 34.27%.

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