YPF Sociedad Anónima YPF recently announced its 2025 investment plans that will mark a significant move in Argentina’s energy sector with a $3.3 billion investment in Vaca Muerta. The investment, which constitutes two-thirds of the company’s total $5 billion capital expenditure, will be entirely directed toward completing and connecting its existing wells that are drilled but uncompleted rather than drilling new gas wells. This strategic investment plan highlights its commitment to maximizing returns in Argentina’s most profitable upstream segment.

YPF’s Vision for Infrastructure Growth

YPF’s investment plans align with its ongoing infrastructure projects, which aim to expand crude evacuation capacity in the Neuquén basin. The company plans to add 23,000 barrels per day (b/d) of crude transportation capacity from April 2025, coinciding with the completion of the Oldelval pipeline expansion. It is also supporting the next phase expansion of Duplicar X, a 300 km pipeline extension plan that will enhance connectivity to Trafigura’s refinery and Oiltanking’s export terminal.

An Insight Into YPF’s Oldelval Pipeline Expansion

YPF and other partners like Chevron are planning a major pipeline in Argentina to support rising oil output from Vaca Muerta. Through the Oldelval SA joint venture, they aim to expand shipping capacity from Puesto Hernandez, a key drilling area at a distance of over 100 km from Vaca Muerta’s core. The pipeline will facilitate production at Chevron’s El Trapial, Pluspetrol’s Bajo del Choique-La Invernada, YPF’s Bajo del Toro and Narambuena, and Tecpetrol’s Los Toldos. It will connect to Allen and link with trunk lines to Atlantic Coast export terminals. The project is an extension of an existing 1970s pipeline and will nearly double capacity to 300,000 b/d.

YPF’s Production and Export Plans

Currently, YPF produces 280,000 b/d, with 160,000 b/d (60%) coming from the Neuquén basin. The company aims to ramp up Vaca Muerta’s production to 200,000 b/d by the end of the year. A significant portion of this production is geared for export, with 41,000 b/d already being shipped to Chile. Additionally, 100,000 b/d are transported via Oldelval to the La Plata refinery, with the remainder going to the Luján de Cuyo plant.

Refining and Future Expansion

Beyond upstream investments, YPF is committed to investing $1 billion to upgrade its refineries and lower the sulfur content in gasoline and diesel. Meanwhile, the Vaca Muerta Oil Sur pipeline project, in which it holds a 27% stake, is set to boost export capacity by an additional 48,600 b/d by late 2026. When fully operational, the pipeline’s first phase will transport up to 180,000 b/d.

YPF’s long-term vision aims to transition entirely to unconventional oil production. Industry forecasts indicate that by 2030, Vaca Muerta could reach a staggering 1.5 million b/d, with up to 1 million b/d dedicated to exports.

YPF’s Zacks Rank and Key Picks

YPF is growth-focused energy company reliant on shale oil production, particularly in Vaca Muerta. Currently, YPF has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some top-ranked stocks like Expand Energy Corporation EXE, Prairie Operating Co. PROP and Enterprise Products Partners L.P. EPD. While Expand Energy and Prairie Operating currently sport a Zacks Rank #1 (Strong Buy) each, Enterprise Products carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The U.S.-based Expand Energy is a leading natural gas producer formed through the merger of Chesapeake Energy Corporation and Southwestern Energy Company. The Zacks Consensus Estimate for EXE’s 2025 earnings indicates 422.70% year-over-year growth.

Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources. The Zacks Consensus Estimate for PROP’s 2025 earnings indicates 334.29% year-over-year growth.

Enterprise Products Partners operates a comprehensive midstream energy network that spans natural gas, NGLs, crude oil, petrochemicals and refined products. The Zacks Consensus Estimate for EPD’s 2025 earnings indicates 8.18% year-over-year growth.

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