• Revenue: $5.3 billion, 7% up sequentially, 18% up interannually.
• Adjusted EBITDA: $1.4 billion, 13% up sequentially, 47% up interannually.
• Net Income: Approximately $1.5 billion, nearly 3x the previous quarter.
• Total Hydrocarbon Production: 559,000 barrels of oil equivalent per day, 4% up sequentially, 8% up interannually.
• Shale Oil Production: 126,000 barrels per day, 11% up sequentially, 36% up interannually.
• Investments (CapEx): Near $1.4 billion, 13% up sequentially, 7% down interannually.
• Free Cash Flow: Negative $173 million.
• Net Debt: $7.5 billion, with a net leverage ratio improved to 1.5 times.
• Lifting Costs: $16.1 per barrel of oil equivalent.
• Crude Oil Realization Prices: $68 per barrel, 4% down quarter on quarter.
• Natural Gas Prices: $4.5 per million BTU.
• Refinery Utilization Rate: Above 90%.
• Fuel Sales Volumes: 5% increase in gasoline, 3% drop in diesel sequentially; 9% decline interannually.
• Fuel Imports: Diesel imports represented 4% of total fuel sales volumes.

• Warning! GuruFocus has detected 8 Warning Signs with YPF.

Release Date: November 08, 2024

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

Positive Points

• YPF SA (NYSE:YPF) achieved a strong level of EBITDA, increasing 13% sequentially and 47% year-over-year, despite challenging conditions.
• The company produced 36% more shale oil compared to Q3 last year, now representing almost half of its total production.
• YPF SA (NYSE:YPF) became the largest oil exporter in Argentina, exporting roughly 40,000 barrels per day.
• Revenues reached $5.3 billion, a 7% sequential increase, driven by higher seasonal gas sales and growing oil exports.
• The company reported a significant net result growth, posting roughly $1.5 billion, almost three times the previous quarter.

Negative Points

• YPF SA (NYSE:YPF) reported a negative free cash flow of $173 million, affected by higher debt service payments.
• The company faced higher costs related to extreme weather conditions in Patagonia and cost inflation.
• Lifting costs remained high at $16.1 per barrel of oil equivalent, with expectations to reduce to $15, still above the original target of $13.
• Crude oil realization prices decreased by 4% quarter-on-quarter, reflecting a decline in Brent prices.
• The company maintained net debt at $7.5 billion, indicating ongoing financial leverage challenges.

Q & A Highlights

Q: Can you share how your roadshow to sell Argentina's LNG in Asia and Europe went, and how is the process to get equity investors for the LNG plant? A: The roadshow was positive, with many NDAs and MOUs signed with companies and countries like India. We are in discussions with super majors for equity investment, but details are confidential until final documents are signed. (Horacio Marin, CEO)

Q: How do you plan to reduce lifting costs from $16 to $8 per barrel? A: We aim to become almost a nonconventional company next year, focusing on Vaca Muerta oil, which has significantly lower lifting costs. We are also divesting mature fields to concentrate on more profitable operations. (Horacio Marin, CEO)

Q: What are your expectations for free cash flow trends in 2025, and what is your CapEx plan for next year? A: We aim for neutral cash flow next year, including financing, and expect positive cash flow from 2026 onwards. CapEx will focus more on nonconventional operations, maintaining similar levels to this year but with a focus on Vaca Muerta. (Horacio Marin, CEO)

Q: Can you provide an update on the legal dispute with Burford? A: YPF is not directly involved in the Burford case, which is a matter for the Republic of Argentina. We have no further information beyond what is publicly available. (Horacio Marin, CEO)

Q: What is the status of the Vaca Muerta South oil pipeline project, and do you have the necessary permits? A: We have all the required permits and expect to start construction soon. The project is slightly delayed but should begin by the third quarter of 2026. We are finalizing agreements with partners and preparing for construction. (Horacio Marin, CEO)

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