YPF · YPF Sociedad Anónima

YPF’s 1Q26 results reflect a decisive operational and financial inflection point, anchored by structural improvements in upstream efficiency and downstream execution. Adjusted EBITDA rose 24% quarter-over-quarter and 28% year-over-year to $1,594 million, with margins expanding to 32% — the highest in three quarters — driven primarily by a 42% reduction in total lifting costs year-over-year, attributable to divestment of mature fields and scaling of low-cost shale operations. Shale oil production grew to 205.4 kbbl/d, now constituting 76% of total oil output, with La Angostura Sur emerging as a key contributor. Refining performance was exceptional: processing hit a record 344.3 kbbl/d at 102% utilization, allowing YPF to fully eliminate diesel and gasoline imports for the first time — a strategic milestone that enhanced energy sovereignty and export capacity. Financially, robust free cash flow of $871 million enabled $750 million in debt prepayments within the first four months of 2026, reducing net leverage to 1.57x and lowering average debt cost. The $500 million in M&A proceeds from divestments of Profertil and Manantiales Behr materially supported this deleveraging. Management reaffirmed full-year CAPEX guidance of $5.5–5.8 billion, signaling continued acceleration in shale investment, with an explicit target of ~250 kbbl/d shale oil production by December 2026. These developments collectively signal a durable shift toward higher-margin, asset-light growth — a material positive for credit quality, dividend sustainability, and long-term valuation.