YPF Sociedad Anónima (YPF) Earnings

Management highlights

### Strategic Transformation & Core Strategy - YPF is executing its 4x4 transformation plan focused on shale growth, conventional asset replacement, cost control, capital discipline, and operational efficiency, with the goal of becoming a profitable, resilient, export-oriented integrated shale producer centered on Vaca Muerta. - Q2 2026 delivered all-time record results: adjusted EBITDA of $2.8 billion, operating income of $1.8 billion, net income of $1.2 billion (second-best ever), and free cash flow of $824 million (top 3 in company history). Adjusted EBITDA margin reached 43%. - Total revenues were $6.6 billion, up 33% sequentially and 42% year-over-year, driven by stronger international prices, higher refinery utilization, and seasonal demand growth. - Liquidity hit a record $2.5 billion, net leverage fell to 1.1x (lowest in 11 years, half the peak level from Q3 2025), and both S&P and Moody's upgraded YPF's credit ratings to their highest levels in recent years. ### Vaca Muerta and Key Project Updates - Shale oil now makes up 80% of total oil production; YPF currently operates 16 rigs in Vaca Muerta's oil window, up from 12 in December 2025, with a target of 21 rigs by early 2027. - YPF submitted the Loma La Lata Oil project (100% YPF-owned) application under Argentina's RIGI investment incentive regime: it is the largest project ever submitted to RIGI and Argentina's largest ever oil export program, requiring $25 billion in cumulative investment over 15 years, with a production plateau of 240,000 bpd (100% dedicated to exports) and expected lifetime export revenue of over $100 billion. - The Bemos oil export pipeline project is 77% complete as of June 2026, on track to reach commercial operation by Q4 2026. YPF brought ENI and XRG into the Argentina LNG upstream joint venture: YPF retains 36% operator stake, while ENI and XRG each hold 32%, aligning partners and advancing the project toward final investment decision (FID). - The 470 km San Mateo gas pipeline for LNG feedstock was approved under RIGI, requiring $1.3 billion in investment, with financial closing for project finance expected in Q3 2026. ### Portfolio Management & Investor Initiatives - YPF signed an agreement to sell conventional Mendoza province assets for $405 million, pending final approval, and signed a binding agreement to sell its 70% stake in Metrogas, completing nearly all planned non-core conventional asset divestments. After these closes, ~95% of YPF's production will come from unconventional shale. - YPF implemented a 1:10 ADR split with no economic impact to shareholders, and will allow direct YPF share trading through its mobile app starting August 14, 2026, to expand access to retail investors. - YPF signed a letter of intent with Tesla to explore collaboration on electric vehicle fast charging networks and energy storage, leveraging YPF's nationwide infrastructure and Tesla's technology. ### Financial Highlights - Q2 CAPEX totaled $1.3 billion, up 37% sequentially and 16% year-over-year, with 77% allocated to unconventional operations, driven by concession signing bonuses and facility investments in core Vaca Muerta blocks. - YPF completed multiple liability management actions: issued a $122 million local bond to prepay higher-cost debt, extended maturities on a $450 million syndicated facility, prepaid $220 million of near-term maturities, and secured a potential $500 million financing from IDB Invest to further optimize debt maturities.

Guidance

- **EBITDA Guidance**: Upgraded full-year 2026 adjusted EBITDA guidance to ~$8 billion, a major increase from the prior guidance of ~$6 billion, driven by higher-than-expected Brent prices, operational efficiency gains, and strong refined product crack spreads. The new guidance reflects a doubling of YPF's EBITDA since 2023, demonstrating the success of the 4x4 plan. - **Brent Price Assumption**: Updated 2026 average Brent price assumption to $82 per barrel, 30% above the prior assumption of $63 per barrel, with a $75 per barrel assumption for H2 2026. - **Production Guidance**: Maintained prior shale oil production targets: average 2026 production of ~215,000 bpd, with a year-end exit rate of ~250,000 bpd. - **CAPEX Guidance**: Increased full-year 2026 CAPEX guidance by ~5% to a new range of $5.8 billion to $6.2 billion, with ~70% still allocated to shale operations. The increase reflects accelerated development of Vaca Muerta's southern hub via the Loma La Lata Oil project, rescheduled maintenance, and facility construction progress. - **Free Cash Flow & Leverage Guidance**: Still expects full-year 2026 positive free cash flow of ~$2 billion (including closed and pending M&A proceeds). Upgraded net leverage guidance to ~1.0x by year-end, down sharply from the prior guidance of 1.6x to 1.7x.

Segment performance

1. **Upstream**: Shale oil production hit a record 213,000 barrels per day (bpd), growing 4% sequentially and 47% year-over-year. Shale oil now accounts for 80% of YPF's total oil production; excluding conventional assets in the divestment process, shale represents 95% of total oil production. Natural gas production averaged 37.3 million cubic meters per day, down 6% year-over-year due to conventional asset exits, partially offset by shale gas growth. Total upstream lifting costs (excluding well service costs) fell 31% year-over-year to $8.4 per BOE; shale oil hub lifting costs held steady at ~$4 per BOE, which is best-in-class. Upstream CAPEX accounted for 77% of total quarterly CAPEX, with ongoing productivity gains: first half 2026 drilling reached 354 meters per day (9% above 2025 averages, 30% above 2023 levels) and fracking reached 11.4 stages per day (18% above 2025, 50% above 2023). 2. **Midstream & Downstream**: Refinery processing hit a record 351,000 bpd, up 2% sequentially and 16% year-over-year, with record utilization. Domestic gasoline and diesel dispatch grew 7% quarter-over-quarter and 10% year-over-year, pushing YPF's market share to 59% (61% including third-party dispatched YPF product). The segment exported nearly 100,000 cubic meters of gasoline and diesel in Q2. Adjusted EBITDA margin expanded to nearly $30 per barrel, driven by high processing volumes and strong commercial execution.

Risks & headwinds

- International oil prices are highly volatile, which creates uncertainty for both near-term profitability and long-term project economics. - Export infrastructure delivery (specifically the Bemos monobuoy) faces transit risk through the Strait of Hormuz, though YPF has secured a backup alternative to mitigate delays. - Domestic natural gas production growth is currently constrained by limited domestic demand, with growth dependent on the future development of Argentina LNG to unlock export demand. - Large-scale long-term projects like Loma La Lata Oil and Argentina LNG face regulatory and execution risk, despite progress on framework agreements and incentive approvals.

Analyst Q&A

• Q: Q2 upstream CAPEX was below analyst expectations. What will the shape of CAPEX and activity look like for the rest of 2026, and is the 250,000 bpd year-end shale exit rate still on track? /

  A: YPF will accelerate CAPEX in H2 2026, hitting the full-year guidance of ~$6 billion. The company has already secured all required rigs and fracturing capacity, growing from 16 active rigs today to 19 by year-end 2026, and 21 by February 2027. The only remaining milestone to hit the 250,000 bpd exit target is the commercial startup of the Langostura Sur PTC facility in September, which is on track, so the target will be met without issues.

• Q: With multiple large projects approved under RIGI, is there industry interest in accelerating Vaca Muerta Sur development originally planned for 2028+? Are there additional non-core divestments still pending? /

  A: Development acceleration depends on how quickly other industry participants can complete their infrastructure, similar to YPF. Development could move forward to 2028 if all parties move quickly, otherwise it will remain in 2029 or later. After closing the recent Mendoza conventional asset sale and the pending Metrogas sale, YPF will be ~95% focused on unconventional production, and the vast majority of planned non-core divestments are complete. A small number of remaining conventional assets are in the process of being sold, so the share of shale will rise slightly further by year-end.

• Q: After adding ENI and XRG to the Argentina LNG upstream JV, what are the next milestones for FID, and what risks remain to be resolved? /

  A: All technical and commercial documentation is complete, and the virtual data room for ECAs and banks has been launched for project finance. Front-runners for the EPC contracts for the gas pipeline and gas treatment plant have been selected, and contract awards are expected within a couple of months. All regulatory and fiscal frameworks with the provincial governments of Neuquén and Río Negro have been finalized, and all required national legislation is in place. YPF expects to reach FID by Q4 2026, with construction starting immediately after.

• Q: What is the status of the YPF Agro business, is it still considered core? Was the previous sale process successful? /

  A: The earlier sale process for YPF Agro was unsuccessful, as bids did not meet YPF's expectations. YPF has reorganized the business: it has been separated from downstream, moved to the new energy division, and will be restructured as a standalone 100% YPF-owned subsidiary focused on improving operational efficiency, with management expecting improved results going forward.