• Revenue: $19.3 billion in 2024, marking an 11% annual increase.
• Adjusted EBITDA: $4.7 billion in 2024, reflecting a 15% annual increase.
• Net Income: $2.4 billion gain in 2024, compared to a loss of $1.3 billion in 2023.
• Net Debt: Increased to $7.4 billion, a 9% increase from 2023.
• Net Leverage Ratio: Reduced to 1.6 times.
• Free Cash Flow: Negative $760 million in 2024.
• Oil Export Revenues: Nearly tripled to $1 billion in 2024.
• Crude Oil Production: 257,000 barrels per day, a 6% annual growth.
• Shale Oil Production: 122,000 barrels per day in 2024, a 26% increase from 2023.
• Refining and Marketing EBITDA Margin: $13.7 per barrel, a 24% improvement compared to 2023.
• Investments: $5 billion in 2024, a 5% reduction compared to 2023.
• Lifting Costs: $15.6 per barrel of oil equivalent in 2024.
• Natural Gas Production: 37.4 million cubic meters per day, a 3% increase in 2024.

• Warning! GuruFocus has detected 7 Warning Signs with YPF.

Release Date: March 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• YPF SA (NYSE:YPF) achieved a 26% increase in shale oil production in 2024, reaching 122,000 barrels per day, aligning with their annual target.
• The company successfully issued a nine-year unsecured international bond for $1.1 billion at a yield of 8.5%, improving its debt profile.
• YPF SA (NYSE:YPF) reduced the gap to import parity in fuel prices from 20% in 2023 to just 2% in 2024, aligning local prices with international standards.
• The company reported a 15% annual increase in adjusted EBITDA, reaching $4.7 billion, driven by higher revenues and hydrocarbon production.
• YPF SA (NYSE:YPF) achieved a record high in refinery processing levels, exceeding 300,000 barrels per day in 2024, with a utilization rate of 92%.

Negative Points

• YPF SA (NYSE:YPF) reported a negative free cash flow of $760 million in 2024, impacted by mature fields and severe weather in Patagonia.
• The company faced a $300 million negative EBITDA from mature fields and an $85 million impact from Patagonia weather conditions.
• Fourth-quarter revenues were down 10% sequentially, primarily due to lower seasonal gas sales and international reference prices.
• YPF SA (NYSE:YPF) experienced a net loss of $284 million in the fourth quarter, attributed to lower EBITDA, impairment, and one-off costs related to mature fields.
• Fuel sales volumes decreased by 7% in 2024, mainly due to exceptionally high demand in 2023 driven by low prices.

Q & A Highlights

Q: How confident is YPF in achieving the 180,000 barrels per day target by Q4 2026 for Vaca Muerta shale expansion? A: Horacio Marin, CEO, expressed confidence in meeting the target by Q4 2026, citing the efficiency and production capabilities of YPF, as well as the support from partners and low tariffs.

Q: What are the current crude oil selling prices, and at what price level would YPF consider reducing CapEx for 2025? A: Horacio Marin, CEO, stated that YPF adjusts gasoline prices based on international oil price movements to maintain import parity. He mentioned that if oil prices continue to decline, YPF would consider adjusting CapEx, emphasizing strict capital allocation.

Q: What is the status of the Sierra Chata acquisition, and what was the price paid for the stake? A: Horacio Marin, CEO, explained that YPF acquired Sierra Chata at a favorable price of $0.02 per million BTU for undeveloped resources, indicating a strategic and beneficial acquisition.

Q: What is YPF's free cash flow outlook for 2025, and what is the update on LNG projects? A: Horacio Marin, CEO, indicated that YPF aims for neutral free cash flow in 2025, with more details to be provided at the Investor Day. He expressed optimism about the LNG projects, particularly the Argentina project, with further updates expected in April.

Q: What is YPF's strategy regarding potential M&A activities in Argentina, especially with assets like refineries and Vaca Muerta blocks? A: Horacio Marin, CEO, clarified that YPF is not interested in acquiring additional refineries. However, YPF remains open to evaluating opportunities in Vaca Muerta if they align with the company's strategy and offer value to shareholders.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.