Latest news with #ShaleOil
Yahoo
09-08-2025
- 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
08-08-2025
- 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.
