Latest news with #OilProduction
Yahoo
4 days ago
- Business
- Yahoo
YPF SA (YPF) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic Shifts
Revenue: Over $4.6 billion, stable sequentially. EBITDA: $1.12 billion, a 10% sequential decrease. Net Profit: $58 million, compared to a loss of $10 million in the previous quarter. Net Debt: $8.8 billion, with a net leverage ratio of 1.9 times. Free Cash Flow: Negative $355 million in Q2. Oil Production: 248,000 barrels per day, an 8% sequential decrease. Shale Oil Production: 165,000 barrels per day in July. Natural Gas Production: 40 million cubic meters per day, a 6% sequential increase. Lifting Cost: $12.3 per barrel of oil equivalent, a 19% sequential reduction. Crude Oil Price: $59.5 per barrel, 12% lower sequentially. Investment: $1.16 billion in Q2, with 71% allocated to unconventional assets. Oil Exports: 44,000 barrels per day, a 20% sequential increase. Fuel Sales Volume: 3.5 million cubic meters, a 4% sequential increase. Market Share: Maintained leading market share of 55% in fuel sales. Warning! GuruFocus has detected 7 Warning Signs with YPF. Release Date: August 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points YPF SA achieved record high production of approximately 165,000 barrels per day in July, demonstrating significant progress in their 4 by 4 plan. The company secured a $2 billion syndicated loan for the construction of the Demos pipeline, reopening the international finance market for Argentina. YPF SA's shale oil production has increased significantly, with a 28% expansion in shale output fully offsetting the decrease in mature fields. The company has successfully divested 28 out of 30 mature blocks, reducing lifting costs by 24% annually. YPF SA's innovative micro-pricing and self-fuel projects have led to a 30% increase in gas station sales volume during nighttime hours. Negative Points The realization price of oil decreased by 12% sequentially due to international price volatility. YPF SA recorded a negative free cash flow of $355 million in Q2, primarily due to the negative impact from mature fields. The company's net debt rose to $8.8 billion, with a net leverage ratio of 1.9 times. Crude oil production decreased by 8% sequentially, primarily driven by lower mature fields. YPF SA's refining and marketing margins declined by 17% sequentially due to lower prices and higher maintenance costs. Q & A Highlights Q: Can you provide an update on the development plans following the recent acquisition of a new block, and how does this impact the current production plan? A: The acquired block is one of the best fields in the north of Vaca Muerta, with higher profitability potential. This acquisition will not negatively impact our current production plan; instead, it will enhance profitability. We plan to accelerate development in this area due to its promising potential. (Horacio Daniel Marin, CEO) Q: Could you provide details on the timing and expectations for the Andes project phases, and is there any discussion with the government regarding reducing export tariffs for oil? A: The first phase of the Andes project is nearing completion, with only one block pending approval. For the second phase, we aim to divest conventional blocks to focus on becoming an unconventional company. Regarding export tariffs, discussions with the government are ongoing, but no specific updates are available at this time. (Margarita Chun, Director - Investor Relations) Q: Are there any plans to adjust the CapEx guidance given the current Brent price volatility? A: We do not plan to change our CapEx guidance of $5.0 to $5.2 billion, which is based on a Brent price of $72 per barrel. We remain committed to our budget and strategic plans. (Horacio Daniel Marin, CEO) Q: Can you provide an update on the equity contributions to the Vaca Muerta EUR for the upcoming years? A: Following the financial close of the Demos project, our share of the equity will be around $230 million, with $75 to $76 million already contributed. The remaining $155 million will be disbursed mainly in 2026. (Federico Barroetavena, CFO) Q: What are the expectations for proceeds from the divestment of conventional assets, and how do you view the competitive M&A landscape in Vaca Muerta? A: While we cannot disclose specific expectations for proceeds, we anticipate favorable outcomes from the divestment of high-quality assets. Regarding the M&A landscape, we do not foresee significant changes or additional sales in Vaca Muerta this year. (Horacio Daniel Marin, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Bloomberg
4 days ago
- Business
- Bloomberg
US Shale Drillers Add One Rig, Break 14-Week Streak of Declines
Shale oil producers added a single drill rig this week after 14 consecutive weeks of declines, staving off at least for now a pandemic-level downturn in US activity. Rigs drilling for oil in the US rose by 1 to 411, according to Baker Hughes Co. data released Friday. Since the start of May, the count had fallen in the longest streak since an 18-week drop in July 2020 and reached the lowest level since September 2021.
Yahoo
5 days ago
- Business
- Yahoo
Permian Resources Corp (PR) Q2 2025 Earnings Call Highlights: Strategic Acquisitions and ...
Oil Production: 176,500 barrels of oil per day, including 900 barrels from the Apache acquisition. Total Production: 385,000 barrels of oil equivalent per day. Adjusted Operating Cash Flow: $817 million. Adjusted Free Cash Flow: $312 million. Cash CapEx: $505 million. Share Buybacks: $43 million at an average price of $10.52 per share. Apache Acquisition: Approximately $600 million. Leverage: Approximately 1 times. Liquidity: Approximately $3 billion. Netbacks Improvement: Gas netbacks by over $0.10 per Mcf and crude netbacks by over $0.50 per barrel. Free Cash Flow Uplift: $50 million increase to 2026 free cash flow versus 2024. Production Guidance Increase: Full year 2025 production guidance increased by 3%. Capital Budget Reduction: Lowered by 2%. Cash Taxes: Expected to be less than $5 million in 2025 and less than $50 million cumulatively in 2026 and 2027. Warning! GuruFocus has detected 4 Warning Signs with PR. Release Date: August 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Permian Resources Corp (NYSE:PR) achieved its 11th consecutive quarter of solid operational execution, including the fastest well drilled and the lowest completion cost per foot in the company's history. The company raised its full-year production guidance while lowering its capital expenditure (CapEx) guidance, demonstrating efficient operational management. PR executed a $600 million Apache acquisition at lower than mid-cycle commodity prices, enhancing its asset base and free cash flow potential. The company received its first investment-grade rating from Fitch, reflecting strong credit metrics and financial strategy. PR's marketing strategy evolution, including new transportation and marketing agreements, is expected to improve gas netbacks by over $0.10 per Mcf and crude netbacks by over $0.50 per barrel, enhancing future cash flows. Negative Points The company faces risks and uncertainties that could affect actual results, as many factors are beyond its control. Despite operational successes, there is still significant uncertainty in the commodity price environment, which could impact future performance. The company has not yet fully realized the potential cost savings from its recent acquisitions and operational improvements. Tariffs on steel and other inputs could increase costs, partially offsetting operational efficiencies. The company's strategy of maintaining a strong balance sheet and liquidity may limit immediate returns to shareholders in favor of long-term stability. Q & A Highlights Q: Can you provide more details on your recent production performance and the factors contributing to the strong results in Q2? A: James Walter, Co-CEO, explained that the strong production performance was due to a combination of factors, including excellent well results and favorable weather conditions. The Delaware Basin's geology has been advantageous, and the company has consistently met or exceeded production targets, reflecting the quality of their assets. Q: How do you view the current macroeconomic environment, and how does it influence your capital allocation strategy? A: Hays Mabry, Director of Investor Relations, stated that while the market feels more stable than earlier in the year, there remains significant uncertainty. The company is cautious and will make capital allocation decisions based on real-time market conditions, focusing on maintaining flexibility and optimizing returns. Q: Can you elaborate on the impact of your new marketing agreements on GP&T costs and overall strategy? A: James Walter, Co-CEO, mentioned that the new agreements will not change GP&T costs immediately. The agreements are expected to improve gas netbacks by over $0.10 per Mcf and crude netbacks by over $0.50 per barrel, net of all expected costs, enhancing overall profitability. Q: What is your perspective on M&A activity, and do you see Permian Resources as a consolidator or a potential seller? A: Hays Mabry, Director of Investor Relations, emphasized that Permian Resources views itself as a logical consolidator in the Delaware Basin due to its leading cost structure. The company is focused on creating long-term shareholder value, whether through acquisitions or potential divestitures, and remains aligned with investor interests. Q: How do you plan to manage your balance sheet and liquidity, especially in light of recent market volatility? A: Guy Olefin, CFO, highlighted that maintaining a strong balance sheet with $500 million to $1 billion in liquidity is crucial for executing their downturn playbook. This approach allows the company to capitalize on market opportunities and deliver shareholder returns, even during periods of market dislocation. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Globe and Mail
5 days ago
- Business
- Globe and Mail
EOG (EOG) Q2 EPS Beats by 4%
Key Points Earnings per share (Non-GAAP) of $2.32 surpassed analyst expectations by $0.09 in Q2 2025 Management maintained oil production levels while trimming 2025 capital expenditures by $200 million. These 10 stocks could mint the next wave of millionaires › EOG Resources (NYSE:EOG), a leading U.S. independent oil and gas producer, released results for Q2 2025 on August 7, 2025. Non-GAAP earnings per share (EPS) were $2.32. This beat consensus non-GAAP EPS estimates of $2.23. Management's response included a proactive reduction in capital expenditures for the year, aiming to protect free cash flow and shareholder returns. Overall, the quarter demonstrated strong operational discipline and ongoing investment in core assets but underlined a more challenging pricing environment for oil and gas. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (Non-GAAP) $2.32 $2.23 $3.16 (26.6%) Revenue (GAAP) $5.48 billion $5.45 billion N/A N/A Free Cash Flow (Non-GAAP) $973 million $1.37 billion (29.0%) Crude Oil Equivalent Volumes (MBoed) 1,134.1 1,047.5 8.3% Source: Analyst estimates for the quarter provided by FactSet. About EOG Resources and Its Strategic Focus EOG Resources is an oil and natural gas exploration and production company. It operates primarily in the United States, with key assets in the Delaware Basin, the Eagle Ford play in South Texas, and emerging projects such as Dorado and international ventures in Trinidad. Its core business centers on developing large proved reserve bases and leveraging advanced drilling technologies to maintain low-cost, high-return operations. In recent years, EOG Resources has prioritized cost management, technological innovation, and disciplined capital allocation. The company's strategy relies on drilling internally generated prospects and deploying advanced techniques to improve well productivity and efficiency. Key success factors include its large, high-quality reserve base, efficiency gains in well operations, proactive risk management regarding oil and gas prices, and adherence to evolving regulatory and environmental requirements. Quarter in Detail: Financial and Operational Review EOG faced headwinds from lower commodity prices in Q2 2025 The average realized price per barrel of oil equivalent (Boe) (GAAP) fell to $39.80 from $45.88 in Q1 2025. Oil price declines were notable, with U.S. crude oil and condensate averaging $64.84 per barrel, down from $72.90 in Q1 2025. Natural gas prices also fell, with realized U.S. gas prices at $2.87 per thousand cubic feet (Mcf), compared to $3.36 in Q1 2025. Despite this, Production volumes reached 1,134.1 thousand barrels of oil equivalent per day (MBoed). Oil volumes advanced to 504.2 thousand barrels per day, and natural gas liquids production reached 258.4 thousand barrels daily. Profit margins came under pressure from weaker pricing. The composite margin per Boe (GAAP) dipped to $14.94, compared to $21.70 in 2024. Adjusted net income decreased 3.1% and free cash flow dropped 29.8% compared to 2023. EOG Resources moved to control capital spending in light of softer pricing. Management reduced the 2025 capital budget by $200 million and narrowed drilling activity in the Delaware Basin, Eagle Ford, and Powder River Basin. These actions were designed to keep oil production steady and enhance projected free cash flow. The company also completed a $275 million bolt-on acquisition in the Eagle Ford, adding 30,000 net acres with drilling beginning in the same year. Recent infrastructure expansions, including the commissioning of the Janus Gas Processing Plant and pipeline connections, expanded market access and offered longer-term cost and revenue benefits. In international operations, EOG marked an oil discovery with the Beryl well in Trinidad in 2024, supplementing ongoing activity at its Mento and Coconut platforms. Efficiency improvements remained a highlight in newer plays, most notably at Dorado, where EOG achieved a 15% year-over-year increase in drilling efficiency compared to 2024, and maintained among the lowest gas breakeven costs in North America at approximately $1.40 per Mcf as of early 2025. These advances support the strategy of expanding a low-cost, high-return asset base while delivering on environmental goals. The company paid $528 million in dividends and continued opportunistic share buybacks, reducing its share count by 7% over nine consecutive quarters. EOG remained in a net cash position of $980 million (non-GAAP) as of June 30, 2025, underscoring a strong balance sheet. The quarterly dividend was maintained at $0.975 per share. Looking Ahead: Guidance and Future Considerations Management supplied a cautious outlook, indicating oil production would hold flat from Q1 2025 levels for the rest of the year. The company now expects approximately 2% oil production growth and 5% total production growth. Free cash flow guidance stands at $4 billion, assuming oil at $65 per barrel and natural gas at $3.75 per Mcf. EOG also foresees low-single-digit well cost reductions continuing as operational efficiency gains and possible service price relief provide modest upside on costs. No major tariff impacts are expected this year. Investors and observers should monitor trends in commodity prices, EOG's progress on executing further cost reductions, and regulatory developments, particularly regarding environmental and emissions standards. The company's dividend strategy and flexibility to hold or further adapt capital spending will also be important in managing through continued uncertainty in oil and gas markets. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,046%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of August 4, 2025
Zawya
29-07-2025
- Business
- Zawya
Iraqi Kurdistan oil output at around 120,000 bpd, Kurdish officials say
BAGHDAD - Oil production in Iraq's semi-autonomous Kurdistan region has reached around 120,000 barrels per day (bpd) and is expected to rise to an average of 280,000 bpd by mid-August, two Iraqi Kurdish energy officials said on Sunday. No timeline has yet been agreed with Iraq's oil ministry to resume crude exports from the north of the country, the officials said. A series of drone attacks has hit oilfields in Iraqi Kurdistan in July. Several oilfields halted operations due to significant infrastructure damage, the Kurdistan region's Ministry of Natural Resources said, adding that the attacks also aimed to threaten the safety of civilian workers in the energy sector. No casualties have been reported, but oil output in the region has been slashed. The region's total production was around 285,000 barrels per day (bpd), Iraqi Kurdistan energy officials said. (Reporting by Ahmed Rasheed in Baghdad Editing by Matthew Lewis)
