Ypf Sa (adr) Stock Earnings Reports

YPF reported a strong Q1 2026 driven by shale growth, operational efficiency and cash generation. Revenue was $4.95 billion (up 9% QoQ, 7% YoY) and adjusted EBITDA reached nearly $1.6 billion (32% margin), the highest Q1 in company history. Shale oil production hit 205 kbpd (76% of total oil production), up 5% QoQ and 39% YoY, with La Angostura Sur ramping from 2 kbpd to ~55 kbpd in 18 months and a breakeven below $40/bbl. Upstream lifting costs fell materially (to $8.8/BOE; shale hub ~$4/BOE, La Angostura Sur ~$3/BOE). CapEx was ~$1 billion in Q1 (78% conventional allocation), with full-year CapEx guidance reaffirmed at $5.5–$5.8 billion and acceleration planned in later quarters. Free cash flow was $871 million (improvement vs. prior year) supported by ~$504 million of M&A cash (Profertil, Manantiales Behr) and reduced net leverage to 1.57x from a 2.1x peak in 2025. YPF strengthened liquidity (~$1.7 billion) and issued nearly $1 billion of financing in Q1 (including a $550m tap at 8.1%, the lowest international yield in 9 years). Commercially, YPF temporarily delayed a full pass-through of international fuel price increases for 45 days to protect domestic demand (a measure taken proactively, later adopted industry-wide). Progress continues on transformational LNG initiatives (Argentina LNG and CESA), with strong investor interest and a target of a final investment decision by year-end. Operationally, drilling and fracturing efficiencies improved (longer laterals, faster drilling/fracturing rates), a Halliburton electric-frac agreement was signed, and pipeline/transport capacity increases (VMOS, Oldelval) were secured to support evacuation. Management reaffirmed production targets for 2026 while noting near-term evacuation bottlenecks that limit immediate acceleration of activity. Key risks include international price volatility, infrastructure constraints and execution/timing of large projects (LNG).