Q4 2024 YPF Sociedad Anonima Earnings Call
[music].
Operator: Good morning and welcome to the YPF fourth quarter and full year 2024 earnings conference call and webcast. All participants are in a listen-only mode. After the speaker's remarks, we'll conduct a question and answer session.
Good morning, and welcome to the White P S fourth quarter and full year 'twenty 'twenty four earnings conference call and webcast.
All participants are in a listen only mode.
After the Speakers' remarks, smoke and pass the question and answer session.
Operator: To ask a question, you'll need to press star followed by the number one on your telephone keypad. As a reminder, this conference call is being recorded.
Speaker Change: I ask a question you will need to press star followed by the number one on your telephone keypad.
As a reminder, this conference call is being recorded.
Margarita Chun: I would now like to turn the call over to Margarita Chun, YPF's IR manager. Please go ahead.
Speaker Change: I would now like to turn the call over to Marguerite Attune <unk> IR manager. Please go ahead.
Margarita Chun: Good morning, ladies and gentlemen. This is Margarita Chun, YPF IR. Thank you for joining today in our full year and fall quarter 2024.
Muhtar: Good morning, ladies and gentlemen, this is muhtar I read that tune White P. S monitor.
Muhtar: For joining today, our full year and fourth quarter 'twenty 'twenty four earnings call.
Margarita Chun: Before we begin, please consider our cautionary statement on slide. Our remarks today and answers to your questions may include forward-looking statements, which are subject to risk and uncertainties that could cause actual results to be materially different from the expectations contemplated by this. Our financial figures are stated in accordance with IFRS, but during the presentation, we might discuss some non-IFRS measures, such as adjusted EBIT.
Muhtar: Before we begin please consider our cautionary statement on slide two.
Muhtar: Our remarks today and answers to questions may include forward looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks.
Muhtar: All financial figures are stated in accordance with I guess, what it's.
Muhtar: During the presentation, we may discuss non some none I forgot if measures such as adjusted EBITDA.
Margarita Chun: During the presentation, we will go through the main aspects and events that explain the annual and Q4 results, and then we will open the floor for Q&A.
Speaker Change: During the presentation, we will go through they may not stakes and events that explain the annual on Q4 results and then we will open the floor for Q&A session. Today's presentation will be conducted by our chairman and CEO, Mr. Raphael Martin our CFO, Mr. Federico batteries, Albania on our threat.
Horacio Marín: Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marin, our CFO, Mr. Federico Barroetave, and our Strategy, New Businesses, and Controlling Vice President, Mr. Maximiliano Westen. I will now turn the call over to Horacio. Please go ahead. Thank you, Margarita, and good morning to everyone present. Let me begin by highlighting that 24 was a transformational year of We have deployed our 4x4 plan design to increase the value of... In the afternoon segment, we are reshaping our oil production map. leaving conventional mature field and targeting to increase our shale oil production share from 50% to a minimum of 80%.
Speaker Change: New businesses and controlling Vice President Mr. Massimiliano Weston.
Raphael Martin: I will now turn the call over to Raphael. Please go ahead.
Raphael Martin: Thank you Dan good morning to everyone. The center this quarter.
Raphael Martin: Let me begin by highlighting the 24, we'll sit down for another year or who Ips we have deployed our four by four plan designed to increase the value of the company.
Raphael Martin: India Salmon, we are reshaping our oil production months weeks living conventional months or a few targets into Greece.
Raphael Martin: Oil production share from 50% to a minimum of 80% as of today, we achieved significant progress in the majority of the total of 49 mature Brooks, we signed <unk> for 24 rigs and we are in the final stage of sluggish demand to translate.
Horacio Marín: As of today, we achieved significant progress in the majority of the total. 49 mature block. We signed SPAs for 24 blocks and we are in the final stage of agreement to transfer and or revert 18 blocks located in the province of Santa Cruz and Tierra del Fuego. On the other hand, we are already the largest shale oil production of the country, and we continue expanding in the coming years, reallocating and concentrating our investments on baccarat. In parallel, we are leading the MISTEAM project development of VEMOS, a new oil export dedicated pipeline, engaging and consolidating the effort of all major producing in Argentina to ramp up production to 180,000 barrels per day in the second half of 2020.
Raphael Martin: Over to you are 18 blocks located in the province, and sometimes goes I'm delighted for you all.
Raphael Martin: The other fun.
Raphael Martin: Really the largest shale oil producer in the country and we continue responding the gummi are reallocating and constant.
Raphael Martin: Mens on Banco Marco in parallel we are leaving the midstream proceeds of element.
Raphael Martin: And you all explored dedicated pipeline engaging and consolidate and therefore, all major bruising in Argentina to ramp up production to walk on the annuity sounds a barrel per day in the second half 'twenty six.
Horacio Marín: Jumping to more than half a million barrels per day by second half of 2020. The contraction has already started and YPF's initial capacity will be 120,000 barrels per day, accounting for 27% stake and expecting to reach more than $3 billion of additional export by the second half of 2020. In the daunting segment, despite challenging microcosm... We have returned to a 100% free market, where we were able to fully normalize local price of fuels and converging them to international price. On the other hand, along 24, we have been implementing multiple operational efficiency measures to enhance productivity across all business.
Raphael Martin: Jumping to more than half a million barrels a day by single Cup.
Raphael Martin: Seven.
Raphael Martin: The contraction Castlereagh thought on White bears an initial capacity will be 120 sell somebody's per day.
Raphael Martin: I have been for 27% stake in it.
Raphael Martin: <unk> team to reach more than $3 billion or at least certainly explored by the second half of 'twenty seven.
Raphael Martin: And they don't think segment despite challenging macro context, we have returned to a 100% free market where we're at.
Raphael Martin: It will to fully normalize locum price of fuels and conversion them to international parity.
Raphael Martin: On the other alone 24, we have been implementing multiple operational efficiency measures to enhance productivity across all businesses.
Horacio Marín: In the update segment, our daily and completion for unconventional wealth of 24 are already near 25,000. so comfortably exceeding 24 targets. In this sense, last month, we achieved the highest lateral length drilling speed for one shell well in Angotura soil block. surpassing 1,747 meters. in 24 hours. This lateral length is equivalent to 5,731 meters. We believe further improvement will be achieved through our new Real-Time Intelligence Center inaugurated last December. This new technology and process optimization plan will allow YPF to continue increasing the day-to-day efficiency by taking real-time data-deriving decisions in drilling and wheel completion activities in Baccamartan with Starlink.
Raphael Martin: In the upstream segment, our leading unconditional before unconventional work 24, I'd already near 25 target.
Raphael Martin: So comfortably exceeding 24 targets.
Raphael Martin: In this sense last month, we achieved they loved it and land drilling speed for one shale well in a go to resource block.
Raphael Martin: Passing 1000 savings from the 47 meters in 24 hours. These lateral length is equivalent to splice out some savings on the.
Raphael Martin: 31 feet.
Raphael Martin: We believe further improvement will be achieved through the.
Raphael Martin: New real time intelligence center in that where they didn't last December.
Raphael Martin: These new technology and process optimization plan will allow <unk> to continue increase in the day to day efficiency by taking real time data that I've been decision in drilling and well completion activities in back of marathon, we started in connectivity.
Horacio Marín: This has been a transformational change in the acting business of YPF, moving from a monitoring room to a real-time decision-making process center. Thanks to this, we expect to materially improve our waste construction costs in the near future. Moreover, we carry out the Toyota Weld Project based on the efficiency of the car industry. to reduce the time of our oil construction cycle, reducing our working capital, and increasing our profitability. from the Acceleration Improvisation. Our target by 25 is to decrease by 30% of the world contractual cycle from 312 days in 2035. At the initial stage, we developed two prototype lines to be implemented on a large scale in Bacamorta in the near future.
Raphael Martin: These convenient transformational change in the athene being as a white peers moving from a monitoring room to a real time decision, making process center.
Raphael Martin: Thanks to this we expect to materially improve our contractual costs in the near future.
Raphael Martin: Moreover, we carry out those should the world project base on the efficiency of the car industry.
Raphael Martin: We used the time of our well construction cycle review.
Raphael Martin: Using our working capital.
Raphael Martin: The increase in our profitability from the acceleration in production.
Raphael Martin: Our target by 25.
Raphael Martin: To decrease by 30% of the world contractual cycle from 300, plus lays in 'twenty three.
Raphael Martin: So initially we developed two prototype lines to implementing on a large scale them back more to that in the near future.
Horacio Marín: And the results are promising. We reach an average of 24% reduction at this initial stage. In the downstream segment, we reach a record high in the processing level of our refinery. exceeding 300,000 barrels per day in 24 and exceeding the year with 318,000 barrels per day in December, with a refinery utilization of 92% mainly driving by the revamping of our La Plata refinery, which increased its capacity and improved the quality of the fuel by reducing the sulfur content. In addition, we achieved record high production level in 24. 5,605 cubic meters per day of premium diesel and 13,915 cubic meters per day of gas.
Raphael Martin: And the result are promising we reached an average of 24% reduction at this initial stage.
Raphael Martin: In the downstream segment will reach a record high in the processing level of our refineries.
Raphael Martin: C N three currently sell somebody or they in 'twenty four.
Raphael Martin: <unk> exiting the year with three on the 18th sell somebody per day in December we're refining utilization of 92%, mainly driving by the revamping of our la Plata refinery, which increased its capacity and improve the quality or the few by reducing the silver.
Raphael Martin: For content.
Raphael Martin: We achieved record high production level in 'twenty four.
Raphael Martin: 5006, five cubic meters per day.
Raphael Martin: <unk> premium diesel and <unk> thousand 915 to meet their prevent gasoline.
Horacio Marín: Regarding downstream efficiency, during 24, we created a specialized industrial team to target and monitor the efficiency and productivity goals by implementing a series of initiatives. such as the optimization of our refinery output, maintenance, shutdowns, and power consumption in our industrial complex. as well as a comprehensive improvement in product storage and logistics. All in all, we record a total saving of $405 million in 2020. Moreover, we will inaugurate our downstream real-time intelligence center in mid-March, combining artificial intelligence to boost our efficient metrics. This center will be the first in our history. In terms of financing, YPF took the lead in reopening the markets of Argentine corporations.
Raphael Martin: Regarding downstream efficiencies during 'twenty four we created a specialized in that.
Speaker Change: Dean to target a monitor the efficiency and productivity goals by implementing a city of initiatives such as the optimization of our refinery output.
Speaker Change: One thing that shutdowns power consumption in our industrial complexes.
Speaker Change: I will ask a comprehensive improvement in product storage and logistics contracts.
Speaker Change: All in all we record a total saving of sports can the $5 million in 'twenty for Motorola.
Speaker Change: Really noteworthy our downturn in real time intelligence center in mean March combining artificial intelligence to boost our efficiency metrics. This center will be the first in Argentina.
Speaker Change: In terms of financing ebay if it took the lead in reopen that market of Pfizer and think corporate insurance 24, we successfully issue and international market.
Horacio Marín: In January 24, we successfully issued an international bond market. a seven-year bond of $800 million. Following this, we executed two additional bond transactions, $540 million in September and $1.1 billion last year. This progressive strategy approach enabled us to effectively lower yields. 8.5% while increasing them. Moreover, in the local market, we successfully arranged the first syndicate bank transaction in more than four years. Setting a New Reopening Argentine Corp. We secured $400 million term loan structure in two and three-year tranches with participation of 16 financial institutions. Finally, we changed the authorization matrix. Changing Internal Procedures and Increasing the Control of Process Compliance.
Speaker Change: Saban near Vaughan of $8 million.
Speaker Change: Following this we executed two additional bond transaction.
Speaker Change: Finally on $40 million in September one.
Speaker Change: One $1 billion last January differentiated strategy approach enabled us to effectively lower yields to eight 5% while increasing thinner.
Speaker Change: Moreover, in the local market, we successfully arranged the first syndicated bank debt section in more than 40 years.
Speaker Change: And in order to reopening our Shandong corporate we secured $400 million term loan.
Speaker Change: Later in two and three year tranches, we participation of 16 financial institution.
Speaker Change: Finally, we changed the authorization, Microsoft the company changing internal procedures and increasing the control of doses compliance.
Horacio Marín: Moving on to the next slide, let me highlight that through our exit from mature field, we are achieving the transformation of YPS. Since we managed to reduce losses, allocate capital efficiently, and focus on Bacamuarta, our most profitable Let me also clarify that this is a new process with no president in Argentina, seeing the owner of the resource as the province. and the approval requires several provincial authorities to complete each process. Now let me briefly update on the progress we made so far. In the province of Mendoza, you already completed a transaction of Gian Canelo. In Mendoza North, after having received all provincial approval, we are in the final stage, expecting to closing within the next two weeks.
Moving on to the next slide let me tell you that through our legacy from mature field, we are achieving the transformation of Hawaii peers. Since we managed to reduce losses allocate capital efficiently and focus on <unk>, our most profitable assets.
Speaker Change: Let me also clarify that this is a new process with no precedent in Argentina in the owner of the resource at the provinces and the brewery go several provisional authority to complete each process.
Speaker Change: Now let me briefly update on the progress we've made so far.
Speaker Change: In the province of Mendoza, you already completed at that section of Shanghai <unk> cluster.
Speaker Change: Mendoza North after having received all permits and approvals we are in.
Speaker Change: The final stage effecting two closing within the next two weeks.
Horacio Marín: In Venosa South Cluster, we already obtained the assignment approval and we expect the extension approval of the concession to be done the next Immediately after, we close the transaction with the buyer. Regarding the promise of Rio Negro, we completed the transaction for the Stancia Fernandez Oro Class. In señal picada, apunta barda cluster, we are in the final stage of negotiation. Targeting to execute the SPA during March and while the closing should be no later than April. In the province of Neuquén, we already received all the provincial approval for Neuquén-Norte and South Cluster, just waiting for the corresponding In Teguido-Puerto Hernández cluster, we have initiated discussions to transfer reverted back to the Focusing on the province of Chubut, we already completed the transaction for El Trevo, El Escalante and Campamento Central Cañadón Perdido.
Speaker Change: In Vanessa South cluster, we already obtained.
Speaker Change: I'm, an approval and we expect the potential approval of the concession to wait until next week.
Speaker Change: Immediately after we close the transaction with Avaya company.
Speaker Change: Regarding the promise of Rio <expletive>, we completed a transaction for the CFO and I'm just sort of plateau.
Speaker Change: And so and you'll pick up on the walls. The cluster we are in the final stages of negotiation.
Speaker Change: Targeting to execute DSP during March and why the closing should be no later than April.
Speaker Change: In the province of Neuquen, we already received all the provincial approval for North and South cluster just waiting for the corresponding decrease.
Speaker Change: In the Western us.
Speaker Change: We have initiated discussion to transfer reverted back to the province.
Speaker Change: Focusing on the promise of Jude you already completed transaction for travel if galanti on complementary and try and Kenyan per radio clusters. While we are very advanced with the process of transferring or regarding rating a lead to the province regarding the non operated position we are in ongoing negotiation laughs.
Horacio Marín: While we are very advanced with the process of transferring or reverting retingally to the. Regarding the non-operative procedure in Chubut, we are in ongoing negotiation. Lastly, in the province of Santa Cruz and Tierra del Fuego, we are making progress in negotiations. Targeting to transfer or revert the remaining assets back to the program. In summary, during these 12 months, we have achieved a material progress with no precedents in YPF and RGP. This is the most transformational project that YPF needs to eliminate losses and inefficiencies. I continue to be committed to move forward with this project to be finished in the next few months.
Speaker Change: In the province of Santa Cruz and here, we are making progress in negotiation paragon into transfer with regard the Romanian assets back to the provinces.
Speaker Change: In summary during these 12 months, we have achieved in material progress, we now present in <unk> and Argentina.
Speaker Change: This is the most transformational project that we'd need to eliminate losses and inefficiencies.
Speaker Change: Continue to be committed to move forward with this project to be finished in the next few months.
Horacio Marín: Now, to begin with numbers, I am pleased to share a quick overview of our key accomplishments obtained during this first year. I'm proud to report that YPF has accounted for near one-third of our commercial oil production, achieving an impressive output of 122,000 barrels per day in 24. This marks a 26 percent increase compared to 23, and is fully in line with the annual target we rate to the market in March 24. Moreover, as of today, our net production is about 150,000 barrels. Looking ahead, we anticipate sustained growth in 2025, concentrating our effort on our most profitable asset, Shell Oil from Bacamor.
Now to the England numbers I'm pleased to share a quick overview of who our key accomplishment of thing during this first year.
Speaker Change: Proud to report the wipe his successor accounted for nearly one third of our mortal shale oil production achieved an impressive output of 120 to sell somebody's per day in 2004, <unk> and 26% increase compared to 23 and is fully in line with the annual target.
Speaker Change: Two the markets in my 24. Moreover, as of today, our net production is above 150000 barrels per day.
Speaker Change: Looking ahead, we anticipate sustained growth in 'twenty five concentrating our effort on our most profitable asset shale oil from Banca <unk>.
Horacio Marín: Also, let me highlight that as operator, YPF produced more than half of Acamorta shale oil production in 24. The competitiveness of YPF is now more evident to the market based on the unique shale production scale and synergies that the company now consolidates between Aftrin and Aftin In line with this production ramp-up, we almost tripled our oil export revenues in 2020. achieving near $1 billion and averaging $35,000. Q4, we jumped to 41,000 barrels per day, representing roughly 20% of the country oil export, and making YPF the largest oil exporter of Argentina in 2018. They don't in business.
Speaker Change: Also let me highlight that.
Speaker Change: Operator, ypa produced more than half of our mortal shale oil production in 'twenty four.
Speaker Change: The competitiveness of Ips is now more evident to the market based on the unique shale production scale and synergies that the company now consolidate between upstream and downstream segments.
Speaker Change: In line with the production ramp up we almost triple our oil export revenues in 'twenty four.
Speaker Change: TV near $1 billion, and averaging 35000 barrels per day.
Speaker Change: In Q4, we jumped to 41000 barrels per day, representing roughly 20% of the country or less for making <unk> the largest oil exported over <unk> 24.
Speaker Change: In the downstream business.
Horacio Marín: During the entire year, the company has been consistently adjusting local fuel price to be in line with international. As a result, we narrowed significantly the gap to import parities, decreasing from 20% in 2023 to just 2% in 2024, despite the significant devaluation that took place in December 2023, while our market share remained strong at 56%. Also, the recovering price coupled with the stereo efficiency initiatives mentioned before, that resulted in a better comprehensive refining and marketing EBITDA margin of $13.7 per barrel, growing 24% compared to 20%. These margins include refinery, chemical, petrochemical, logistic, and alluvial. In parallel, with increase in export, we reduced the fuel imports significantly in 2024.
Speaker Change: During the entire year the company.
Speaker Change: We consistently adjust in low cost fuel price to be in line with international prices.
Speaker Change: As a result, we narrow significantly the gap to import parity is decreasing from 20% in 2003% to 2% in 'twenty four despite the significant devaluation that took place in December 'twenty, three while our market share remains strong at 56%.
Speaker Change: Also the recovery in price coupled with the city of efficiency initiatives mentioned before that resulted in a bit and comprehensive refining our marketing EBITDA margin of 13 $7 per Bobby growing 24% compared to 23 these margin.
Speaker Change: Fuel refinery chemical petrochemical logistical allude again.
Speaker Change: In parallel with increase in export would have used a few imports significantly in 'twenty four.
Horacio Marín: mostly due to demand contraction and refinery capacity. It's also worth mentioning that 23 was affected by extraordinary demand driving by local price considered below import parity. During 24th and 9th week price recovery, demand declined particularly in the first half, but gradually improved during the second half, plus the improvement in refinery capacity mentioned before. All these positive outcomes contribute to a 15% growth in the company as they have been there in 24 compared to- However, let me clarify that 24 figures could have been higher, but it was negatively impacted by two important factors. roughly 300 million dollars negative debt from mature and around $85 million of low EBITDA from the Patagonia weather impact on conventional production.
Speaker Change: <unk> wholly due to demand contraction and refinery capacity expansion at.
It's also worth mentioning that 'twenty three was affected by an extraordinary demand driving by local price considerably below import parity during 'twenty four inagua recovery demand decline, particularly in the first half, but gradually improved during the second car velocity improvement in refinery capacity mentioned before.
Speaker Change: All of these positive continue.
Speaker Change: Due to a 15% growth in the company and show the EBITDA and before compared to 23.
Speaker Change: However, let me clarify that 'twenty four figures have been higher but it was negatively impacted by doing important factor.
Speaker Change: Roughly $300 million negative EBITDA from mature fields.
$85 million or lower EBITDA from the Patagonia weather impact unconventional production. We are confident that this factor we almost permanently eliminated once we complete our exit program for a major field during 2005.
Horacio Marín: We are confident that this factor will be almost permanently eliminated once we complete our exit program from mature field during 2020. In terms of investment, we deployed $5 billion in 2024, reducing by 5% compared to 2016. and successfully meeting our target of $5 billion. Despite the total CAPEX remain almost stable, the breakdown changed significantly. Lowering conventional activities, particularly in mature fields, and redirecting toward our culture of Facilitating a ramp-up in shared-loan products. Therefore, around 64% of the total cap... 24 was allocated in the unconventional asset, reaching an annual growth of 28%. On the financial side, we report a negative free cash flow of $760 million in 2020.
Speaker Change: In terms of investment, we deploy $5 billion in 'twenty four.
Speaker Change: Using by 5% compared to 23.
Successfully meeting our target of $5 billion.
Speaker Change: Despite the total capex remained almost stable the breakdown changed significantly lower in conventional activities, particularly in mature field and really directing our coal share operation facilitating a ramp up in shale oil production.
Therefore around 64% of the total capex of <unk> before was allocated in the unconventional assets, reaching a nano and bureau of 28%.
Speaker Change: On the financial side, we reported negative free cash flow of savings from the $50 million in 2004.
Horacio Marín: Our improving EBITDA during this year was driven by the strong performance of our shale oil asset and recovery of refining margin, as well as tighter CAPEX compared to the previous year. Nevertheless, 24 was affected by around $685 million negative impact. We consisted of $433 million from Mature Field, Neto Proceed, $166 million of import payment deferred from 23, and $85 million from Patagonia West.
Speaker Change: Our improvement in EBITDA. During this year was driven by the strong performance of our shale oil asset and recovery of refining margin.
Speaker Change: As tighter capex compared to the previous year.
Speaker Change: Nevertheless, 24 was affected by around $685 million negative impact we consisted of $433 million from mature field net of Brazil.
Speaker Change: <unk> hundred $66 million of import payment deferred from 2003.
Speaker Change: $85 million from Patagonia weather.
Margarita Chun: Now I will turn the call to Margarita. Thank you, Horacio, and hello to everyone. Turning to our annual and fourth quarter financial results, revenues reached $19.3 billion in 2024, marking an 11% annual increase, mainly driven by the rebounded fuel prices and a rise in oil exports. These gains were partially offset by a contraction in fuel demand, which was exceptionally high during the second half of 2023 due to reduced fuel prices coupled with more than 200% gap between the official and the parallel FX Adjusted LBDA totaled $4.7 billion in 2024, reflecting a 15% annual increase, mainly boosted by higher revenues in hydrocarbon production.
Maxi: Now I will turn the call to Maxi.
Thank you <unk> and Hello to everyone turning to our annual and fourth quarter financial results revenues reached $19 3 billion in 2024, marking an 11% annual increase mainly driven by the rebounded.
Maxi: Fuel prices and a rise in oil exports. These.
Maxi: These gains were partially offset by a contraction in fuel demand, which was exceptionally high during the second half of 2023 due to reduced fuel prices, coupled with more than 200% gap between the official in the parallel FX rate.
Maxi: Adjusted EBITDA totaled $4 $7 billion in 2024, reflecting a 15% annual increase mainly boosted by higher revenues and hydrocarbon production. However, as mentioned before 2024 was affected by it.
Margarita Chun: However, as mentioned before, 2024 was affected by mature fuels and Patagonia weather, while 2023 was impacted by a high level of fuel imports and a wide gap to import parties. Net results improved substantially, posting a gain of $2.4 billion in 2024, compared to a loss of $1.3 billion in the previous year. In 2023, the company recorded a non-cash impairment charge from a fuel fuel. while in 2024 there was a positive income tax accrual driven by lower future tax payable. Investments and free cash flow was also explained in the previous slide, and as a result, our net debt rose to $7.4 billion, a 9% increase from 2023, but we successfully reduced our net leverage ratio to 1.6 times, fully aligned with the target.
Maxi: Your fields and Patagonia weather, while 2023 was impacted by the high level of imports and a wide gap to import parity.
Maxi: Net results improved substantially posting a gain of $2 $4 billion in 2024 compared to a loss of $1 $3 billion in the previous year in.
Maxi: In 2023 the company recorded.
Maxi: Non cash impairment charge from mature fields.
Maxi: While in 2024, there was a positive income tax accrual driven by lower future tax payables.
Maxi: Investments in free cash flow was also explained in the previous slide and as a result, our net debt rose to seven 4 billion.
Maxi: A 9% increase from 2023, but we successfully reduced our net leverage ratio to one six times fully aligned with the target.
Margarita Chun: Now, let me briefly explain the quarter financial results. Fourth quarter revenues were 10% down sequentially, mostly due to the lower seasonal sales of gas and international reference prices, partially offset by higher demand of fuel. The fourth quarter adjusted ABDA was 39% down sequentially, primarily explained by lower revenue set before, reduced value of inventories of fuel and oil, in line with price, and marginally, a $60 million of extraordinary environmental provision in the downstream segment, partially offset by shale oil expansion and recovery of Patagonia Convention. In the bottom line, in the fourth quarter, we reported a net loss of $284 million compared to a net gain of $1.5 billion in the third quarter, mainly attributable to a lower EBTA impairment and a one-off cost related to mature fields, as well as reduced deferred income tax benefits.
Maxi: Now, let me briefly explain the quarter financial results.
Maxi: Fourth quarter revenues were 10% down sequentially, mostly due to the lower seasonal sales of gas and international reference prices, partially offset by higher demand of fuels.
Maxi: Fourth quarter, adjusted EBITDA was 39% down sequentially, primarily explained by lower revenue said before reduced value of inventories of fuel and oil in line with price and marginally a $60 million of extraordinary environmental.
Maxi: Provision in the downstream segment, partially offset by the shale oil expansion and recovery of Patagonia conventional.
Maxi: In the bottom line in the fourth quarter, we reported a net loss of $284 million compared to a net gain of $1 $5 billion in the third quarter, mainly attributable to a lower EBITDA impairment and a one off costs related to mature.
Maxi: Fields azuela reduced deferred income tax benefit.
Margarita Chun: The fourth quarter investments remained stable compared to the previous quarter, while in terms of free cash flow, we saw a positive turnaround, reaching $64 million. Although EVTA was not fully compensated by CAPEX, we collected overdue natural gas receivables and proceeds from certain mature fields in addition to paying lower debt service.
Maxi: Fourth quarter investments remained stable compared to the previous quarter, while in terms of free cash flow, we saw a positive turnaround reaching $64 million.
Maxi: Although EBITDA was not fully compensated by Capex, we collected over do natural gas receivables and proceeds from certain mature fields. In addition to paying lower debt service.
Margarita Chun: Now, moving on to the upstream performance, our total hydrocarbon production amounted to 536,000 barrels of oil equivalent per day in 2024, an increase of 4% versus 2023, mostly boosted by the remarkable growth in shale output, representing 53% of the total compared to 46% in 2023. Also, let me mention that 22% of the total hydrocarbon production came from mature fields, which amounted to 117,000 barrels of oil equivalent per day in 2024. Crude oil production reached a 6% annual growth in 2024, reaching 257,000 barrels per day on the back of a solid 26% shale expansion, more than compensating the lower conventional output decline, significantly affected by reducing mature fields productivity and extreme weather in Patagonia during almost two months.
Maxi: Now moving on to the upstream performance, our total hydrocarbon production amounted to 536000 barrels of oil equivalent per day in 2024, an increase of 4% versus 2023.
Maxi: Mostly boosted by the remarkable growth in shale output, representing 53% of the total compared to 46% in 2023 also let me mention that 22% of the total hydrocarbon production came from mature fields.
Maxi: Which amounted to 117000 barrels of oil equivalent per day in 2024.
Maxi: Oil production reached 6% annual growth in 2020 for reaching 257000 barrels per day on the back of a solid 26% shale expansion more than compensating the lower conventional output decline significantly affect.
Maxi: By reducing mature fields for GBT and extreme weather in Patagonia during almost two months.
Margarita Chun: Beyond crude oil, natural gas production grew 3% in 2024, reaching 37.4 million cubic meters per day, mainly driven by the expansion of the Neuquena Basin evacuation capacity through the Perito Moreno gas pipeline and the following commissioning of the compressor plant in the same pipeline during July. Focusing on the fourth quarter, natural gas production remained essentially flat interannually while declining sequentially mainly due to the off-peak season. Let me mention that moving forward, our focus for the long term is to grow natural gas exports on a large scale. Therefore, we are not aiming to expand our share in the local market.
Maxi: Beyond crude oil natural gas production grew 3% in 'twenty three 'twenty four reaching 37 4 million cubic meters per day, mainly driven by the expansion of the new innovation evacuation capacity through the Burrito Moreno gas pipeline and the following commissioning of the compare.
Maxi: Our plants in the same pipeline during July four.
Maxi: Focusing on the fourth quarter natural gas production remained essentially flat in their annually, while declining sequentially, mainly due to the off peak season, let me mention that moving forward our focus for the long term is to grow natural gas exports on a large scale.
Maxi: Therefore, we are not aiming to expand our share in the local market.
Margarita Chun: Lastly, NGL's production in 2024 stood at the same level versus 2023, averaging 43,000 barrels of oil equivalent per day. Fourth quarter, NGL's production decreased by 29% sequentially, mainly due to the maintenance at mega-facilities. Moving to lifting costs, we recorded $15.6 per barrel of oil equivalent in 2024, remaining similar to 2023, as the lower productivity from mature fields in Patagonia weather were partially offset by the ramp-up in shale hydrocarbon production. excluding mature fields, our total lifting cost could have been below $9 per barrel of oil equivalent. Very remarkable during 2024, the lifting cost in our core hub blocks recorded $4.2 per barrel of oil equivalent on a gross basis, reinforcing our four by four strategy to focus the entire company on its core product.
Maxi: Lastly, NGL production in 2024 stood at the same level versus 2023, averaging 43000 barrels of oil equivalent per day fourth quarter NGL production decreased by 29% sequentially, mainly due to the maintenance mega facilities.
Maxi: It is.
Maxi: Moving to lifting costs, we recorded $15 $6 per barrel of oil equivalent in 2024 remaining similar to 2023 as the lower productivity from mature fields and Patagonia weather were partially offset by the ramp up in shale hydropower.
Maxi: <unk> production.
Excluding mature fields, our total lifting cost could have been below $9 per barrel of oil equivalent.
Maxi: Very remarkable during 2020 for the lifting cost in our core hub blocks recorded for $2 per barrel of oil equivalent on a gross basis reinforcing our four by four strategy to focus the entire company on its core production.
Margarita Chun: Fourth quarter total lifting cost illustrates the lower productivity of mature fields, increasing 7% sequentially, while core hub blocks on a gross basis posted 8% reduction, thanks to its outstanding productivity and operational efficiencies achieved along 2024. Regarding prices in the upstream segment, our crude oil prices rebounded to an average of $68 per barrel in 2024, 9% higher than 2023, while during the fourth quarter, it was almost $66 per barrel, reflecting a sequential construction of 4% aligned to the downward trend in Brent. On the natural gas side, prices reached $3.7 per million BTU in 2024, similar to 2023 and in line with plant gas contracts, while the fourth quarter decreased by 30% sequentially, mostly due to the plant gas off-peak season price.
Fourth quarter total lifting cost illustrates the lower productivity of mature fields, increasing 7% sequentially, while core hub blocks on a gross basis posted 8% reduction thanks to its outstanding productivity and operational efficiencies achieved.
Maxi: Along 2024.
Maxi: Regarding prices in the upstream segment, our crude oil prices rebounded to an average of $68 per barrel in 2024, 9% higher than 2023, while during the fourth quarter. It was almost $66 per barrel, reflecting a sequential construction.
Maxi: <unk>, a 4% aligned to the downward trend in brand.
Maxi: On the natural gas side prices reached $3 $7 per million Btu in 2024, similar to 2023 and in line with plan gas contracts, while the fourth quarter decreased by 30% sequentially, mostly due to the planned gas off peak season.
Maxi: Price.
Margarita Chun: Now, walking through the performance of our shale activities, the steady focus on operational efficiencies allowed us to completely surpass the initial targets set for 2024 in last March. In this sense, during 2024, we drilled 207 and completed 189 horizontal wells at our operated blocks, increasing 14% and 17% respectively versus 2023. Regarding tie-ins, in accordance with our shale oil production target for the year, we accelerated the activity, reaching 195 tie-in horizontal wells at our operated blocks, representing a remarkable growth of 29% versus 2023. Moreover, we continued setting new records in shale oil production, delivering 138,000 barrels per day in the fourth quarter, growing 10% sequentially and 26% interannually.
Maxi: Now walking through the performance of our solar activities. The steady focus on operational efficiencies allowed us to completely surpassed the initial targets set for 2024 and last March and defense during 2024.
Maxi: We drilled 207 and completed 189 horizontal wells at our operated blocks.
Maxi: Increasing 14% and 17% respectively versus 2023.
Maxi: Regarding tightens in accordance with our shale oil production target for the year, we accelerated the activity, reaching 195 tight in horizontal wells at our operated blocks, we're presenting a remarkable growth of 29% versus 2023.
Maxi: Moreover, we continued setting new records in shale oil production delivering 138000 barrels per day in the fourth quarter growing 10% sequentially and 26% Inter annual <unk> as a result, we achieved the annual production target of <unk>.
Margarita Chun: As a result, we achieved the annual production target of more than 120,000 barrels per day in 2024. Eighty-five percent of total shale oil output for 2024 came from our core hub oil blocks, Loma Campana, La Marga Chica, Bandurria Sur, and Agua del Chañar. This outstanding performance along 2024 reaffirms our confidence on our shale production ramp-up plans and the recent commitments on the upcoming midstream expansions of Oil del Val and BEMO. In terms of efficiencies within our unconventional operations as Horacio anticipated at the beginning of the presentation, we fully surpassed the targets set in March 2024 for drilling and fracking performance during the year, averaging 309 meters per day of drilling in our core hub and 235 stages per set per month of fracking for the unconventional operation.
Maxi: More than 120000 barrels per day in 2004.
Maxi: For <unk>.
Maxi: 85% of total shale oil output for 2024 came from our core hop oil blocks Loma Campana, La Mer <unk> bhandari of food in our tenure.
Maxi: This outstanding performance, along 2024 reaffirms our confidence on our shale.
Maxi: <unk> ramp up plans and the recent commitments on the upcoming midstream expansions of OLED.
Maxi: And the most.
Maxi: In terms of efficiencies within our unconventional operations at all.
Maxi: As you anticipated at the beginning of the presentation, we fully surpassed the target set in March 2024 for drilling and fracking performance during the year, averaging 309 meters per day of drilling in our core how fields and 235 stages per.
Maxi: Set per month of fracking for the unconventional operations.
Margarita Chun: Zooming into the evolution of our hydrocarbon reserves, total proof reserves, according to the SEC criteria, grew by 2% in 2024. The increase was mainly on the back of a 13% increase in our Baca Muerta shale reserves, which now represents 78% of our total P1 reserves, partially offset by decline in conventional reserves. Proofed reserves addition total 250 million BOE driven by the progressive developments and expansions of our uncommercial operations, particularly in Aguada Pichana Oeste, Loma La Lata Norte, and La Calera Blanca. It was partially offset by high total hydrocarbon production, a downward revision of 17 million BOE, mainly due to the strategy change in drilling schedules, as well as a 13 million BOE reduction, mostly due to lower enhanced hydrocarbon recovery and the divestment of conventional blocks, El Treo, El Escanalte, and Yankaneli.
Maxi: Swimming into the evolution of our hydrocarbon reserves total proved reserves. According to the S. E. C criteria grew by 2% in 2024. The increase was mainly on the back of a 13% increase in our back up more.
Maxi: Shale reserves, which now represents 78% of our total P. One reserves, partially offset by a decline in conventional reserves.
Maxi: Proved reserves additions totaled 250 million Boe.
Driven by the progressive developments and expansions of our and commercial operations, particularly in our fee generator Loma La Lata unaudited and accolade outlooks.
Maxi: Was partially offset by higher total hydrocarbon production.
Maxi: <unk> revision of 17 million Boe may.
Maxi: Mainly due to the strategic change in drilling schedules as well as a $13 million reduction, mostly due to lower enhanced hydrocarbon recovery.
Maxi: The divestment of conventional blocks, Israel, Canada and Canadian.
Margarita Chun: It is worth noting that proof-developed reserves regarded an annual expansion of 3% in 2024, mainly explained by development activities, new extensions, and discoveries mentioned exceeding the annual production. On the other hand, proved undeveloped reserves increased by 1%, mainly because of new additions offset the volumes developed in drilling of new wells. Considering the shale hydrocarbon production ramp up in 2024. and the development of our shale reserves, the reserve replacement ratio increased to 1.9 times with 8.3 years of reserve life. Regarding total approved reserves, this ratio was 1.1 times with 5.6 years of reserves left. Important also to clarify that excluding mature fields, the total organic ratio for approved reserves improved to 1.5 times with 6.8 years of reserves.
Maxi: It is worth noting.
Maxi: That proved developed reserves recorded an annual expansion of 3% in 2024, mainly explained by development activities, new extensions and discoveries mentioned.
Seeding the annual production.
Maxi: On the other hand proved undeveloped reserves increased by 1%, mainly because of new additions offset the volumes developed in drilling of new wells.
Maxi: Considering the shell hydrocarbon production ramp up in 2024.
Maxi: And the development of our shallow reserves that reserve replacement ratio increased to one nine times with a eight.
Maxi: Eight three year of reserve life.
Maxi: Regarding the total proved reserves. This ratio was one one times with five six years of reserve life.
Maxi: Important also to clarify that excluding mature fields. The total organic ratios for our proved reserves improve to one five times with six eight years of reserve life.
Margarita Chun: Finally, since the SEC Proofs Reserves do not encompass the huge potential of Bacamorta, let me tell you in advance that we're going to share our inventory of wealth in Bacamorta during our Investor Day, which will take place on April 11 in the New York Stock Exchange.
Maxi: Finally, since the S E C.
Maxi: Through serves two not in composites the huge potential of Bakken water. Let me tell you in advance that we're going to share our inventory of wells in Vaca, Martha during our Investor day, which will take place on April 11, and the New York Stock Exchange.
Margarita Chun: Moving on to our downstream segment, during 2024 the company has been constantly updating food prices to converge to international parities and mitigate the impact of the currency devaluation while preserving the market share. As a result, we were able to reduce the gap of import parity from 20% in 2023 to only 2% in 2024. In line with price recovery and several operational efficiencies achieved during the year, refining and marketing ABDA margins in 2024 was $13.7 per barrel, achieving an improvement of 24% compared to 2023. However, fuel phase volumes decreased by 7% along 2024 to 13.9 million cubic meters, mainly because 2023 was affected by an exceptional high levels of demand driven by low prices, especially in the second half of the year.
Maxi: Moving on to our downstream segment. During 2024, the company has been constantly updating shoot prices to converge to international parity and mitigate the impact of the currency devaluation, while preserving the market share.
Maxi: As a result, we were able to reduce the gap of impropriety from 20% in 2023 to only 2% in 2024.
Maxi: In line with price recovery and several operational efficiencies achieved during the year refining and marketing <unk> margins in 2024 was $13 $7 per barrel, achieving an improvement of 24% compared to 2000.
Maxi: 'twenty three.
Maxi: However, fuel sales volumes decreased by 7% along 2024 to $13 9 million cubic meters, mainly because 2023 was affected by an exceptionally high levels of demand driven by low prices, especially in the second half of the year.
Margarita Chun: Despite this, demand started to slightly increase in the second half of 2024. During the year, YPF maintained a strong fuel sales market share of 56% fully in line with our historical levels and leadership in the market. In terms of processing levels, it was 301,000 barrels per day in 2024, 2% higher than 2023 and surpassing our annual target. This was mainly driven by the revamping of topping day at La Plata refinery in November 2023, combined with the completion of additional works within the new fuel specification projects framework. In addition, we also expanded our oil pumping capacity from Puesta Hernandez to Lujan de Cuyo complex during 2024.
Maxi: Despite this demand started to slightly increase in the second half of 2024 during.
Maxi: During the year, while maintaining a strong field sales market share of 56% fully in line with our historical levels and leadership in the market.
Maxi: In terms of processing levels. It was 301000 barrels per day in 2024, 2% higher than 2023 and surpassing our annual target. This was mainly driven by the revamping of stopping there.
Maxi: Our refinery in November 2023, combined with the completion of additional works within the New few specification projects framework. In addition, we also expanded our oil pumping capacity from <unk> Fernandes 200 crucial complex during 2024.
Margarita Chun: It is worth mentioning that the utilization rate remained around 90% in 2024.
Maxi: It is worth mentioning that that utilization rate remained around 90% in 2044.
Margarita Chun: Now, let me provide a brief update on the progress achieved in the oil midstream expansions to unlock the evacuation capacity in the Neuquena Basin. By the end of 2024, Old Elwal achieved a total transportation capacity of 330,000 barrels per day. And during this month, its capacity will jump to 540,000 barrels per day. YPF holds 25% shipping state in Odelval. It's worth mentioning that the filling process will be gradual, aligning with the production ramp-up, and after successfully passing the testing. We plan to use this additional capacity to deliver our shale oil to La Plata refinery.
Maxi: Now let me provide a brief update on the progress achieved in the oil midstream expansions to unlock the evacuation capacity and the new innovation.
Maxi: By the end of 2024.
Maxi: <unk> achieved a total transportation capacity of 330000 barrels per day and during this month is capacity was jumped to 540000 barrels per day.
Maxi: Ips holds 25% shipping state in OLED value.
Maxi: It's worth mentioning that the filling process will be gradual aligning with the production ramp up and after successfully passing the testing period, we plan to use this additional capacity to deliver our shale oil to la Plata refinery.
Margarita Chun: Achieving another major objective that the management team targeted for 2024, last December, we formally announced the signing of the project documents and initial shipping commitments to start construction of demos together with the major oil producers of Bacamora. The project consists of a 440 km oil export-dedicated pipeline and a marine terminal capable of receiving BLCCs to deliver Bacamorta shale oil to Asian markets. YPF initially shipping capacity will be 120,000 barrels per day. Roughly 27% of over 450,000 barrels per day committed capacity at COD targeted by 2027. The design of the pipeline allows to further increase the capacity to roughly 700,000 bars per day.
Maxi: <unk> another major objective that the management team targeted for 2024 last December we formally announced the signing of the project documents and initial shipping commitments to start construction of the mosque together with the major oil producers of Bakken water the.
<unk> consists of a 440 kilometers oil export dedicated pipeline and our marine terminal.
Maxi: Capable of receiving vlccs to deliver back Commoditized shale oil to Asian markets.
Maxi: <unk> initially shipping capacity will be 120000 barrels per day, roughly 27% of over 450000 barrels per day committed capacity at targeted.
Maxi: Targeted by 2027.
Maxi: The design of the pipeline allow us to further increase the capacity to roughly 700000 barrels per day if needed.
Margarita Chun: The construction of the facilities already started last January and now follows with contractors' mobilization, earth-moving works, and line pipe delivery.
Maxi: Construction of the facility is already started last January and now follows with contractors modernization Earth, moving worse and line pipe delivery.
Margarita Chun: In parallel, VEMOS is making progress on two key avenues. First, the RIGI application for governmental approval. And second, the process to secure project finance, targeting 70% debt and 30% equity. On this front, Bemos has just mandated five international banks for an initial syndicated loan of $1.7 billion.
Maxi: They must is making progress on two key avenues first <unk> application for governmental approval and second the process to secure project finance targeting 70% debt and 30% equity.
On this front bmo's as just mandated five international banks.
Maxi: Initial syndicated loan of $1 7 billion.
Federico Barroetave: I will now turn the call over to Federico to go through the final. Thank you, Mark. Switching to the financials, let's start with cash flow evolution. In 2024, we posted the negative free cash flow of $760 million. First of all, although our CAPEX of 2024 was lower than 2023, it was not fully offset by the improvement in our adjusted BDA. It is important to highlight that this annual EVDA includes two negative effects. Around $300 million from mature fields and about $85 million from severe climate in Patagonia. From a cash flow consideration, in 2024, we also recorded a negative $133 million from mature fields, which includes a negative $269 million of additions of assets held for sale, net of $136 million of divestment net proceeds.
Speaker Change: I will now turn the call over to <unk> to go through the financials.
Speaker Change: Thank you Max.
Speaker Change: Switching to the financials, let's start with cash flow evolution in.
Speaker Change: In 2024, we posted a negative free cash flow of $760 million.
Speaker Change: First of all.
Speaker Change: Our Capex of 2024 was lower than 2023, it was not fully offset.
Speaker Change: And by the improvement in our adjusted EBITDA.
Speaker Change: It is important to highlight that this annual EBITDA includes two negative effects around $300 million from mature fields and about $85 million from full year climate in Patagonia.
Speaker Change: From a cash flow consideration in turkeys and before we also recorded a negative one kind of a $33 million from mature fields, which includes a negative $269 million of additions of assets held for sale.
Speaker Change: Net of $136 million of divestment net proceeds.
Speaker Change: Finally.
Federico Barroetave: When analyzing the company cash performance during 2024, we must consider that we paid $166 million of temporary deferred import liabilities from 2023, collected lower dividends from affiliates, and disbursed higher debt service.
Speaker Change: When analyzing the company cash performance during 2024, we must consider that we paid $166 million of temporarily differed in part of liabilities from 2023 collected lower dividends from affiliates and disbursed higher debt service.
Federico Barroetave: In terms of finance, In Q4, we issued $2 bonds with a tenure of four years totaling $150 million at a yield ranging between 6.5% and 7%. Also, we added $100 million of syndicated loans and around $60 million of short-term trade financing facilities. After the closing of 2024 in January, we successfully issued a nine-year unsecured international bond for 1.1 billion dollars at the yield of eight and a half. The proceeds were mainly allocated to refinance the $757 million of the 2025 notes and to acquire 54% of Sierra Chata block, one of the most prospective Vaca Muerta shale gas Regarding the 2025 notes, we executed a cash spender offer, prepaying $315 million, and the May Hall Collapse for the Balancing Fed.
Speaker Change: In terms of financing in Q4, we issued two dollar bonds with a tenor of four years totaling $150 million at a yield ranging between six five and 7%.
Speaker Change: Also we added $100 million of syndicated loan and around $60 million of short term trade financing facilities.
Speaker Change: After the closing of 2024 in January we successfully issued a nine year unsecured international bond for $1 1 billion at the yield of eight and a half.
Speaker Change: The proceeds were mainly allocated to refinance the $757 million.
Speaker Change: Of the 2025 nodes and to acquire 54% of Sierra Chata block one of the most prospective back a more shale gas block.
Speaker Change: Regarding the 2025 nodes, we executed a cash tender offer prepaying $350 million and the make whole call options for the balancing fabric.
Federico Barroetave: Additionally, last month we issued $2 MEP local bonds, $140 million with a two-year tenor at six and one quarter, and $60 million with a six-month tenor at three and a half. With these last international bond issuance, we successfully completed our initial plan to de-risk the company debt profile, aligning it with our 4x4 plan. The company now faces less than $1 billion of manageable and mostly local maturities during 2025, consisting of $400 million of short-term trade facilities with local and international banks, $281 million of mainly export-backed bonds, $147 million of local bonds, and $51 Having achieved the refinancing of our 2025 bond early this year and considering that most of our 26 maturities consist primarily of bank trade lines and issues with the local capital market, As of today, we do not need to re-enter the international bond market until approaching the 2027 bond maturity.
Speaker Change: Additionally, last month, we issued $2 map local bonds $140 million with a two year tenure at six in one quarter and $60 million with a six month tenor and $3 five.
Speaker Change: With this last international bond issuance, we successfully completed our initial plan to Derisk the company debt profile aligning it with our four wastewater plan the company now faces less than $1 billion of manager and mostly local maturities during 2020.
Speaker Change: Five consisting of $400 million of short term trade facilities with local and international banks $281 million of mainly export back bonds $147 million of local bond and 51 million.
Speaker Change: With Caf.
Speaker Change: Having achieved the refinancing of our 2025 bonds early this year and considering that most of our 26 maturities consist primarily of bank trade lines and issues with the local capital markets as of today, we do not need to reenter the international.
Speaker Change: Market until approaching the 2027 bond maturity.
Federico Barroetave: On the other hand, Following the upgrade in sovereign rating, as well as country risk improvement and current perspectives, two global rating agencies have just raised YPF trade rate. Moody's upgraded from CAA3 to CAA1 with a stable outlook and S&P upgraded from CCC to BMI. On the liquidity front, by the end of 2024, our cash and short-term investments increased 9% versus previous year to $1.5 billion in line with our net debt increase, which amounted to $7.4 billion. Despite the increase in net debt, higher adjusted BDA reduced the net leverage ratio from 1.7 to 1.6 times in line with the target for the year.
Speaker Change: On the other hand.
Speaker Change: Following the upgrade in sovereign rating as well as country risk improvement and carrier and perspectives to global rating agencies have just raised <unk> credit rating.
Speaker Change: Moodys upgraded from a three to see a one with a stable outlook and S&P upgraded from Triple C to B minus.
Speaker Change: On the liquidity front by the end of 2024, our cash and short term investments increased 9% versus previous year to one 5 billion.
Speaker Change: In line with our net debt increase which amounted to $7 4 billion.
Despite the increase in net debt adjusted EBITDA reduced the net leverage ratio from one seven to one six times in line with the target for the year.
Horacio Marín: Now I will return the call to Horacio for final remarks. Thank you, Federico.
Ross: Now I will return the call to Ross for final remarks.
Ross: Think of vertical before concluding our presentation and jump into the Q&A session. Let me briefly announced that after an important knowledge result.
Horacio Marín: Before concluding our presentation and jumping to the Q&A session, let me briefly announce that after important knowledge, results, and experience of the new management team during this first year, on April 11, we'll be holding our Investor Day at the New York Stock Exchange. There, we will present our five-year plan and go through the main drivers of our four-by-four plan, focusing on our financial and production outlook, including certain sensitivity analysis, productivity metrics in Bacamorta, and the progress of our main projects, among other key aspects of our strategy. This presentation will be led by YPF executive team, followed by Q&A session.
Ross: <unk>.
Ross: The new management team. During this first ear on April 11 will be holding our Investor day at the New York Stock Exchange.
Ross: There, we will present, our five year plan and go through the main drivers of our four by four plan focusing on our financial and production outlook, including surface sensitivity analysis productivity metrics in backup Martha on the progress of our main project.
Ross: The other key aspect of our strategy.
Speaker Change: This presentation will be led by <unk> executive team followed by Q&A session.
Horacio Marín: We are pleased to invite you to our Investor Day and look forward to your participation.
Speaker Change: We are pleased to invite you to our Investor day and look forward to your participation.
Horacio Marín: Finally, let me close today's presentation by saying we are confident that investors have appreciated the significant agenda that YPF has deployed along last year in almost all critical areas of the company, focusing primarily on profitability and growth. We are very focused in making value and putting YPF as one of the best energy companies. This has been just the beginning. We will continue driving our 4x4 plan during 2025 with even more knowledge, confidence, and competitiveness.
Speaker Change: Finally, let me close to their presentation, but say we are confident the investor appreciated Cigna.
Speaker Change: Significant national that White paper deploy along last year in almost all critical area for the company focus is primarily on profitability and growth. We are very focused in making value on <unk> is one of the best Energy company.
Speaker Change: These have any chatter beginning we will continue driving our forward plan. During 2025, we do even more knowledge confidence and conviction.
Operator: So, with this, we conclude our presentation and open the floor for questions. As a reminder, to ask a question, please press star followed by the number one on your telephone keypad.
Speaker Change: So with this we conclude our presentation and open the floor for questions.
Speaker Change: As a reminder to ask a question. Please press star followed by the number one on your telephone keypad.
Andres Cardona: Our first question comes from Andres Cardona from Citigroup. Please go ahead. Your line is open. Hi. Good morning, everyone. Horacio Fede, looking forward to the strategy update.
Speaker Change: Our first question comes from Andreas <unk> from Citigroup. Please go ahead. Your line is open.
Andreas: Hi, good morning, everyone.
Speaker Change: The Ara show Fei.
Speaker Change: Looking forward to the strategy update.
Andres Cardona: My question, it's about the Vaca Muerta, South Spain, Vaca Muerta, so the expansion, and how we should expect the ramp up. How confident are you to add in the 180,000 barrels by the fourth quarter, 2026? Because when talking with some industry players, they doesn't seem to count with those volumes. By then, they only expect to see the incremental capacity by the third quarter, 2027. And yes, we want to understand why is the different perception, and why are you so confident to deliver by the fourth quarter, 2026? Hi, can you hear me? I was mute. Sorry.
Dave: My question, it's Dave I'll come where it saw the spine.
Dave: And with the sort of expansion and how we should expect a ramp up how confident are you to adding the 180000 barrels, but the fourth quarter 2026, because when talking with some industry players. They does since seen two corn with those volumes.
Dave: But then the only expect to see the incremental capacity added.
Dave: 2027.
Speaker Change: Yes, we want to understand why do you use the different perception and why are you so confident to deliver by the third quarter at <unk> 26.
Speaker Change: Hi can you hear me.
Speaker Change: I will ask Neil salary, so I don't know who talked me now.
Andres Cardona: I don't know who talked mute. Now you're hearing me? You're here? Yes. Hello? Yes, thank you. OK. I'm sorry. I was muted. I don't know why.
Speaker Change: Now you're telling me.
Speaker Change: Yes, yes, yes, Hello, yes. Thank you.
Speaker Change: Okay.
Speaker Change: Sorry.
Speaker Change: Neil David on Hawaii.
Horacio Marín: We are very confident that the demos we are going to deliver in the fourth quarter, 26, and also in the second half of 27. We are very excited that all the partners are in. The tariff will be very low compared to what we expected at the beginning because we expected more than half a million that was... I don't know how you say it in the community, community for everybody. And what I can answer you explicitly for the fourth quarter, I don't know which person you are talking about. But I'm talking about the production of YPF, we are going to deliver that.
Speaker Change: We are very confident.
Speaker Change: Nevertheless, we are going to deliver.
Speaker Change: Fourth quarter 2006 and iPhone.
Speaker Change: The second half of 'twenty seven.
Speaker Change: We are very.
Speaker Change: Exciting.
Speaker Change: Okay.
Speaker Change: All the partners.
Speaker Change: <unk>.
Speaker Change: Roofing.
Speaker Change: All that meaningful.
Speaker Change: Got it.
Speaker Change: Combined we expect delivery in the Gulf, we expect more or less half a million there was.
I don't know if I can say.
Speaker Change: <unk> I can answer you.
Speaker Change: NIM for the fourth quarter I don't know.
Speaker Change: We are talking you are talking about I'm talking volume production of Ips are going to deliver that.
Horacio Marín: I think that it will be efficient that we have production that we have. I think we can deliver more, but... I expect that, okay, so I'm not totally, I'm very confident that from YPF we are going to deliver what we say. Thank you.
Speaker Change: I think that they will be.
Speaker Change: That we have production that we have.
Speaker Change: The team that we have in the afternoon.
Speaker Change: We've got them even more.
Speaker Change: I think that okay. So.
Speaker Change: Totally I am very confident.
Speaker Change: <unk> going to let it wasn't.
Speaker Change: Thank you.
Daniel Guardiola: Our next question comes from Daniel Daniel Guardiola from EPG Paxuel. Please go ahead. Your line is open. Hi, thank you. And good morning Horacio, Federico and Max. Presentation. I would like to touch on two topics. Wanted prizes? and the second one on the Sierra Charta acquisition.
Speaker Change: Our next question comes from Danielle Daniel Guardiola BTG Pactual. Please go ahead. Your line is open.
Speaker Change: Hi, Thank you.
Speaker Change: Good morning, not osteoarthritis climax.
Speaker Change: Thanks for the presentation I would like to touch on.
Speaker Change: <unk>.
Speaker Change: One on pricing.
Speaker Change: The second one on the CRA Charter's decision on.
Daniel Guardiola: On prices, I would like to know, guys, if you could please share with us at which price are you currently selling your goods. And considering that recently we saw a very significant bearish movement in our prices, I would like to know if... Or if you can share with us, at which levels of prices would you consider to start reducing your capex for 2025? And in this environment, if you're considering to hedge a portion of your expected production for 2025? So that's on prices.
Speaker Change: I would like to know guys vehicle please share with us.
Speaker Change: At which price are you currently selling you could.
Speaker Change: Cedar in that recently, we saw a very significant bearish.
Speaker Change: Movement in oil prices.
Speaker Change: I would like to know is.
Speaker Change: Or if you can share with us at which levels of prices would you consider to start reducing your capex.
Speaker Change: And this environment is your CRE to hedge a portion of your expected production for example, but thats on prices.
Daniel Guardiola: And the second one is a very short question instead of chat. Can you please share with us, guys, what is the price that you pay for the acquisition of this stake of Exxon in this field? And what is the expected run path in terms of production? Thank you very much.
Speaker Change: One is a very short question instead of chatter.
Speaker Change: Can you please share with US guys. What is the price that you pay for the acquisition of the stake of action in this field.
Speaker Change: Is the expected ramp up in terms of production. Thanks.
Speaker Change: Thank you very much.
Horacio Marín: Okay, because I'm a very transparent guy, and we have a problem with the microphone, I will let people that have better English than me, because at the beginning, I'm in the third field. Sponsored ADR Class D So I'm going to go more copy, okay? Yes. Okay, Horacio. Can you share with us at which prices are you selling your food right now? price of the crude oil. Yeah, at which prices are you selling your goods right now? Your oil right now. Yeah, yeah. What we have is the, what is the gasoline, our prices in the import-privacy product.
Speaker Change: Okay.
Speaker Change: Because I'm very.
Speaker Change: During the day and we have brought in with the microphone.
Speaker Change: We have people that are better in the mi because at the beginning in the third field.
Speaker Change: Danny.
Speaker Change: Similarly.
Speaker Change: In the RCM nominating kimco.
Danny: But Danny we Couldnt I Couldnt hear your the last part of the cycle.
Speaker Change: We have a problem.
Speaker Change: If I can understand.
Speaker Change: Microphone <unk>.
Speaker Change: No Paul we are sorry.
Speaker Change: So.
Speaker Change: Oh Wow.
Speaker Change: Yes.
Speaker Change: Yes, okay.
Okay can you share with us at which prices are you selling your true right now.
Speaker Change: Got it.
Speaker Change: Okay.
Speaker Change: Price of the crude oil.
Speaker Change: Yeah at which prices are you selling your crude right now.
Speaker Change: You're always right.
Speaker Change: Yeah, Yeah well.
Speaker Change: We have the.
Speaker Change: What do you think gasoline.
Speaker Change: Our prices and the impact by the borrower.
Horacio Marín: I was on a TV show, in the TV, the other night, I would say two or three months ago, and what I said to everybody that we are going to increase the price of gasoline with the price of oil And we are going to go down when the price goes down. And why that? Because we try to maintain the import parity of product. OK? What is the price that we sell when we export? What's the price that we buy? Export parity. What's the price of the gasoline? Import parity to product. I don't know how to answer that question.
Speaker Change: I'll also add TV.
Speaker Change: We are not in EMEA I would say.
Speaker Change: Three months ago.
And what they say to everybody that we are working in.
Speaker Change: Good evening.
Speaker Change: So that's I think when the peso.
Speaker Change: Volume was up.
Speaker Change: We are going to roll down when the price of oil as well.
Speaker Change: Why is that because we try to maintain the input by Dr. Paul Okay.
Speaker Change: What is the price that we sell in new export export parity.
Speaker Change: The price that we buy a full body at Ingalls.
Speaker Change: Celine in proprietary product I don't know if that answers that question.
Horacio Marín: Sorry. But I mean, as a consumer, that oil prices are below $70 in terms of brands. At what level are you selling right now your oil? Now, now the the remember that the oil when you sell the oil, there is a time frame when you make an average of the price. Okay. I don't know that the price of that the oil you will be a will be But we have a procedure to put the prices to avoid, I would say, short spikes. I would say spikes up, spikes down. The majority of Argentina was not a country in general.
Speaker Change: Alright.
Speaker Change: But considering that oil prices are below $70 in terms of brands.
Speaker Change: Yes.
Speaker Change: Right now your oil.
Speaker Change: No no.
Speaker Change: Remember that we are willing to sell the oil there is a timeframe.
Speaker Change: They cannot reach of it.
Speaker Change: Okay, I don't know that the price of that.
Speaker Change: He will be.
Speaker Change: If it would be.
Speaker Change: More I would say three months and we are willing to sell index more clarity on this.
When you roll down five $5.
Speaker Change: In last week.
Speaker Change: The thing will happen with the gasoline and gasoline <unk> and <unk>.
Speaker Change: This is a guy 93 here.
Speaker Change: Because our competition.
Speaker Change: Blending cloud how reward.
Speaker Change: We have a.
Speaker Change: Our cedar.
Speaker Change: The prices to our board.
Speaker Change: Hi.
Speaker Change: I can say short and spy.
Speaker Change: Spikes I can say spikes up despite that.
Speaker Change: And my sharing.
Speaker Change: Argentina was something that was not the garden April in general from now on is like this and ensure that will continue.
Horacio Marín: From now on it's like this. And I'm sure that we will continue with this president, that we are going to be open and so free market. And so in that way, people are not accustomed to go up and down as in the United States or Europe. And so we prepare like a procedure to avoid spikes. So people will not be nervous. But at the end for YPF it's almost a surprise. Sponsored ADR Class D Yeah, sorry, sir.
Speaker Change: Yes.
Speaker Change: We are going to be open.
Speaker Change: So three market and selling in that way people are not that gaslog the wobble athene.
Speaker Change: As in the United States Europe and so.
Speaker Change: They are.
Speaker Change: Maggie proceeded through our pipes.
Speaker Change: There'll be no risk, but at the end for <unk> Okay.
Ross: Thank you Ross.
Ross: With prices.
Horacio Marín: I just want to ask you, at which level of oil prices will you consider to start reducing your capex for 2025? Okay. Remember, we are going out almost, I would say, it's not your question, but I think in two, three months from now, we are almost out of all the mature field. And you can calculate your Excel simple way of seeing YPF. that we are receiving for very low price. The brain goes down, down, down, down, and maintains, for sure, we are going to have changes, okay? For sure. I don't think that today is the day to do that, but if it continues going down and it maintains, for sure we will see, because remember what our CEO always says.
Ross: Yes, sorry, sorry.
Ross: Just wanted to ask you at which level of oil prices will you consider to start reducing your capex for 2025.
Ross: Okay.
Ross: Great.
Ross: Okay.
Ross: Remember.
Ross: We are growing now all in all I can say is Nomura in your question.
Ross: Thinking through for example, now we are not outperformed all the matter of Phil.
Ross: You can calculate your excel simple way of seeing White P F.
Ross: Now we have a few handful Bailey mall Brexit.
But also a wide campaign.
Ross: The brand or whatnot.
Ross: Nine mandate for sure we are going through.
Ross: Two to rally in changing Okay sure I one thing that today is the day to do that but as a container volume.
Ross: Bank for Joe Let me see.
Ross: Remember all we say.
Ross: Alleghany capital.
Ross: Capital allocation.
Ross: Yeah.
Horacio Marín: Okay, and the last question was on Sierra Chata. Yeah, thank you. Yes, it's very difficult to see there because I remember that we were a company, but what I can tell you that we think that we make a very, very good business because all, I would say, all the undeveloped. Call you if you want resources or reserves because this is a conventional way, we buy in two cents. What I think is a very good price. Thank you. Thank you, Horacio and guys. I'm team. Okay. Thank you.
Ross: Okay.
Ross: My question wasn't Sierra Chata.
Ross: Yes. Thank you.
Ross: Definitely.
Ross: Yes.
Ross: We see as I said that would be very difficult to see.
There we go I remember that why your company, but what I can tell you that.
Ross: We think that will make it very.
Ross: Medical business, because all I can say all the <unk> call.
Ross: As you warm resources or reserves because.
Angela: This is Angela mentioned Hawaii.
Ross: Hi.
Ross: Jim.
Ross: Our medium to do what they think.
Ross: Right.
Ross: Thank you Thank you Ross and guys something.
Ross: Okay.
Bruno Montanari: Our next question comes from Bruno Montanari from Morgan Stanley. Please go ahead. Your line is open. Hi, good morning, everyone. Thanks for taking my questions.
Ross: Thank you our next question or not.
Speaker Change: Next question comes from Bruno Montanari from Morgan Stanley. Please go ahead. Your line is open.
Bruno Montanari: Hi, Good morning, everyone. Thanks for taking my questions. The first question is about your.
Bruno Montanari: The first question is about your free cash flow profile for 2025. I know you will give more color on the investor day, but just focusing on next year, the company has been, in a way, pointing to neutral cash flow in 2025. So I wanted to confirm if that is still the plan, if the base case is for neutral cash flow in 2025.
Bruno Montanari: Free cash flow profile for 2025.
Bruno Montanari: We'll give more color on the only investor day, but just focusing on next year.
Bruno Montanari: Company has been.
Bruno Montanari: Pointing to neutral cash flow in 2025, so I wanted to confirm if that is still the plan.
Bruno Montanari: The base case is for neutral cash flow.
Bruno Montanari: My second question is if you can provide us with an update on the LNG projects, so when we could expect the final investment decisions for both the GOLOR project and then the YPF-led project. And my third question is about your lifting costs. I assume that part of the cost increase in the fourth quarter was because of the strong peso. So I'm wondering what we can expect now in the first quarter of the year in terms of lifting costs.
Bruno Montanari: In 2025. My second question is if you can provide us with an update on the LNG project.
Bruno Montanari: When we could expect that final investment decisions for both the.
Bruno Montanari: The Golar project and then the Ips led project.
Speaker Change: And my.
Speaker Change: My third question is about.
Your lifting costs.
Speaker Change: You bet.
Speaker Change: Part of the cost increase in the fourth quarter was because of the strong peso.
Speaker Change: So wondering what we can expect now in the first quarter of the year.
Horacio Marín: Thank you very much. Okay, free cash flow, when you talk on capex, we are going, I'm going to present on April 11th, Investor Day, all that in very detail, you can add a question that you want there. As we said, the free cash flow, that will be neutral, it depends what you call neutral, I think we are going to deliver that idea. It will be minus plus what is logical in this big company, okay? But I'm going to present, we are going to present, but personally I'm going to present that on April.
Speaker Change: In terms of leasing costs. Thank you very much.
Speaker Change: Okay.
Speaker Change: Cash flow a year.
Speaker Change: On Capex, we are going I'm going to.
Speaker Change: Eight 2% on April 11, Investor day, all of that and maybe the day Youre dynamic within one year.
Speaker Change: We said if the free cash flow.
Speaker Change: The new neutral it depends where you go down we think we are going to deliver.
Speaker Change: Minors.
Speaker Change: What is the company okay, but.
Speaker Change: Going to 2%, we are going to present, but personally I'm going to defend that.
Horacio Marín: Update of LNG, we are in a very good situation. We will see there, and also I will explain in more detail. on April 11, because at that moment, I think we will have a better way and I will be more sure what I have to deliver. But I'm very positive with the two, with the Argentina-LNG project. Very positive that Argentina and YPF itself will be delivering this project for for us, for the country, and for the shareholders.
Speaker Change: On April.
Speaker Change: Update of <unk>.
Speaker Change: We are available to inflation.
Speaker Change: We will see the error on one side will explain in more detail.
Speaker Change: On April 11, because at that moment, I think we will have a better way and I will.
Speaker Change: We will be more sure.
Speaker Change: And in Europe, but I'm very positive.
Speaker Change: Two.
Speaker Change: Argentina LNG project very positive now, Argentina, and <unk> will be the lever.
Speaker Change: These products here for.
Speaker Change: For the ASP on the country for the oncology program.
Horacio Marín: The last is the cost. As you see, we are maintaining the cost because we work every day in efficiency. Our goal every day that I come 645 is to deliver efficiency. You can not imagine how is the guy, the VP of Athens. Every day I go to him and I don't know how he loves me today. Because every day I go and we are working. inefficiency, line by line. That's why we are very good. And I don't know if there is another one.
Yeah.
Speaker Change: The landscape the cost.
<unk>, we are we are maintaining the cost because we werent everyday efficiency.
Speaker Change: Every day that bank.
Speaker Change: 645 is to deliver efficiency.
Speaker Change: <unk> got no in market and how we value.
Speaker Change: Sure thing.
Speaker Change: They are all booking on.
Speaker Change: I don't know how he loves Tuesday, because every they go and we are working.
Speaker Change: In our P&C.
Speaker Change: Line by line, that's why we are very good on that.
Speaker Change: I don't know if there is another one.
Okay.
Horacio Marín: No, that was it. Thank you.
Speaker Change: Thank you.
Operator: Okay, thank you.
Okay. Thank you.
Speaker Change: Okay.
Tasso Vasconcellos: Our next question comes from Tasso Vasconcellos from UBS. Please go ahead. Your line is open. Hi Horacio, hi Federico, hi Margarita, thanks for taking my questions here. Let me start with one here on the M&A activity. We are actually seeing some increased activity in Argentina. Exxon recently sold their assets and you actually acquired Sierra Chata. Recent news also indicates that both Total and Equinor could eventually evaluate selling their assets as well. We know that Raisin is looking for a potential buyer for its refinery in Argentina. And amid this context here, YPF is for sure a potential buyer for these assets, right?
Speaker Change: Our next question comes from Paso Vasconcellos from UBS. Please go ahead. Your line is open.
Paso Vasconcellos: Hi, Ross so hypothetical Peter Thanks for taking my questions here.
Speaker Change: Let me start with fund here on the M&A activity, we are actually seeing some increased activity in Argentina, Exxon recently sold their assets equal actually acquired shot.
Speaker Change: You said you'd also indicate that both total and ignore could eventually evolve.
Speaker Change: <unk>, we know that rising is looking for a potential buyer for its refinery in Argentina.
Speaker Change: And amid this context you'd like to ask is for sure a potential buyer for these assets right.
Tasso Vasconcellos: No, no, sorry, for interest, so maybe split the questions into two parts. The first one, does any of these assets actually interest YPF at all? Or do you like one better than the others? And maybe the second part of the question, if not these specific assets that I just mentioned here, any other ones that you would be interested in acquiring in Argentina at the moment? These are my questions. Thank you.
I'm not sure if I answered it so maybe it's pretty big questions in two parts. The first one does any of these assets actually interest a white desk at all.
Speaker Change: Or do you like one better than the others and maybe the second part of the question if not distressed assets that I just mentioned year annual other ones that you would be interested.
Speaker Change: <unk> at the moment. These are my questions. Thank you.
Horacio Marín: Okay, and... The force in the capital allocation is rising. From my start here, I only hear that rising, but it's not. I'm not the person to answer that, ask to rise in our shell. But I cannot answer that. But even if you are interested to see if we are going to be wrong to buy. In your refinery, the answer is no. We have, so far, you know that we have 58% of the market share, we have it, I think we are very good in, we are improving a lot, improving a lot in the refinery sector, YPF, but it's not in our thinking that we are going to increase, not that.
Speaker Change: Okay.
Speaker Change: Sure.
Speaker Change: They're forcing the gap at the location.
Speaker Change: For my part here.
Speaker Change: Is that right and what is not.
Speaker Change: The person to answer that too.
Speaker Change: <unk> Hill.
Speaker Change: But even even if you are interested to see if we are going to be.
Speaker Change: Why.
Speaker Change: In a more refined avionics anymore.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: We have so far is that we have.
Speaker Change: 58% of the market share.
Speaker Change: We had it I think we have many good in we are improving.
Speaker Change: We are improving.
Speaker Change: In refiner in the refinery sector with Baird.
Speaker Change: But it's not in our thinking.
Speaker Change: And thinking that we are orienting kidney.
Horacio Marín: The second part, we say, if we know that the other is seen, so I have no official lab, even some will say, but in what is the, remember, our role, the active management, is this something that is in Macamor, that I would think is in the core, in a very core, because now we are very selective, as we say, very core, the best price, only we are going to see, but it's not the moment today that I tell you that that. It depends also on, remember, the active portfolio management and the strict capital allocation. We will see at the moment, but it's not.
Speaker Change: No that.
Speaker Change: The second part when you say equally nor of the other <unk>.
Speaker Change: So I have no more feature lab.
Speaker Change: Even the.
Speaker Change: And then say bumping in Angola.
Speaker Change: Remember our royalty I think manageable.
Speaker Change: <unk>.
Speaker Change: In backup more seamlessly.
Speaker Change: In the core in a vertical.
Speaker Change: Now we are very selective as you say maybe call the base price only we have only entity that is not the moment the way the.
Speaker Change: They say you that one.
Speaker Change: Any banks also remember the active portfolio management and capital.
Speaker Change: Capital allocation.
Speaker Change: We will see at the moment that is not.
Horacio Marín: For sure, everybody that sells there, that sells very good assets, he and YPF are one of the possible active guys to take over. So I can answer exactly as I always explain. If something is very good, we will see prices, we will see everything, all of that. And if we think that we make value for shareholding, you will see YPF in that part of the world. I don't know if I answered the question and you need more details. I have no idea. I think it's very clear, I appreciate it, thank you. OK. Thank you.
Speaker Change: I'm sure everybody that.
Speaker Change: Sales of at that time.
Speaker Change: Very good asset CFO <unk> are one of the Basel I think guy.
Speaker Change: They go over that.
Speaker Change: So I can't answer exactly.
Speaker Change: <unk> is building or will we see pricing.
Speaker Change: I mean, we have seen that we make value for shareholders.
Right.
Speaker Change: In that process.
Speaker Change: I don't know.
Speaker Change: If I answer award.
Speaker Change: John You mean more mid day I have no idea.
Speaker Change: I think it's very clear I appreciate it thank you.
Speaker Change: Okay.
Leonardo Marcondes: Our next question comes from Leonardo Marcondes from Bank of America. Please go ahead. Your line is open. Hi. Good afternoon, everyone. Hi, Horacio, Federico, and Maximiliano. Thanks for picking my questions here. I have two from my side, specifically on the upstream segments. So the first one, we know that YPF is the largest player in Vaca Muerta and that the company also owns many blocks in this same area, right? So my question is, could you provide a color on what's the company's current well inventory? I mean, how many drilling wells do you guys have? And how many years would it take for YPF to drill all these wells, considering the company's current capacity to tie in wells per year?
Speaker Change: Our next question comes from Leonardo <unk> from Bank of America. Please go ahead. Your line is open.
Speaker Change: Yeah.
Speaker Change: Hi, Good afternoon, everyone I would also steady Quinn MX journal.
Speaker Change: For picking my questions here I have two from my side, specifically on the upstream segment.
Speaker Change: So the first one.
Speaker Change: We know that to IPF is the largest player in fact got worse.
And then the company also owns many block.
Speaker Change: Many blocks in this this semi area right. So my question is.
Speaker Change: Could you provide a color on what's the company's grants well inventory.
Speaker Change: How many to risk at wells you guys.
Speaker Change: We have and how many years would it take for Ips chewed through.
Speaker Change: All of these wells considering the company's current.
Capacity at your time.
Speaker Change: Hi wells per year.
Leonardo Marcondes: My second question is, with the conclusion of the divestments, what should we expect from the development of Vaca Muerta? More tie-ins per year? Higher RRR? And additionally, the company has improved a lot the development of Vaca Muerta, right? Like the better frac speed and so on. So what is the target there? What else can be done to improve these metrics even further? Thank you.
Speaker Change: My second question is with the conclusion of the divestments.
Speaker Change: What should we expect from the development of Martha.
More times per year.
Speaker Change: Higher R. R R.
Speaker Change: Additionally, the company has improved.
A lot of the development of Vaca <unk>.
Speaker Change: Right right.
Speaker Change: Better frac speed and so.
Speaker Change: So what is the target there.
Speaker Change: Else can be done to improve these metrics even further thank you.
Speaker Change: Okay.
Horacio Marín: Okay, thank you for all the questions. I try to follow, okay? Remember that I am a Spanish guy, okay? First, when you say, I will say, summarize, when you say, well-invented. I will explain that in much more detail on April the 11th, but... The, as I say, we're not putting numbers. Are you sitting or you're sitting up? I can't, I can't, I can't hear, yeah. Okay, okay. We have in the order of... Thanks, South Sandwell. You can say 50, but I would say gross, okay? Inventory is a gross inventory. I would say that it's in the order of 50% of oil, 50% of gas, but this is a roughly number that I have in my mind, okay?
Speaker Change: Okay.
Speaker Change: Thank you for all the great.
Speaker Change: I think twofold remember.
Speaker Change: Pangaea.
Speaker Change: First when you say.
Speaker Change: I would say some of that.
Speaker Change: Oil inventory.
Speaker Change: I will.
Speaker Change: Helane that in much more detail on the clean label that.
Speaker Change: The HSA and without putting numbers.
Speaker Change: Are you seeking.
Speaker Change: Yep.
Speaker Change: Yes.
Speaker Change: Yes, I can.
Speaker Change: Since you're here.
Speaker Change: Okay, Okay with having good enough.
Speaker Change: Dana Samsung World.
Speaker Change: We are going to say 50, I would say we're off again and Anthony you think gross inventory.
Speaker Change: I will say that this.
Speaker Change: 50% of all.
Speaker Change: 50% of high but it is roughly number where they carry in that line again, while enabling the living.
Horacio Marín: On April 11th, we are going, we will have there the full development of all YPF, and I will answer in detail at that moment, okay? Now, if you see, we are drilling in the order of 28, we drill in the order of 200 wells, so the capacity of timing, I don't see it's a problem. Sometimes it's a question of the belting valve. And also, the first year was the way that YPF had before, the way of working with partners. Now, what we are working is to have all the budget tied with the partners, and after we fill up with our 100% in active control in docks, sorry, 100% docks.
Speaker Change: We have before.
Speaker Change: The full development of all white.
Speaker Change: I know you will ask heading debate at the moment okay.
And now you can see we are bringing in new Orleans and 28.
Speaker Change: We will drill.
Speaker Change: And it was so.
Speaker Change: B B.
Speaker Change: The capacity of <unk>, no I don't see us broadening sometimes is a quite general belt in bell.
Speaker Change: There is.
Speaker Change: And also the FRC at all.
Speaker Change: Yeah.
Speaker Change: The way the RIDEA.
Speaker Change: Before the way of working with partners now we are working.
Speaker Change: The early all all devices tied with the firewood.
Speaker Change: With the partners announced there.
Speaker Change: Paid up with 100%.
Speaker Change: Okay.
Speaker Change: <unk>.
Speaker Change: Go ahead.
Speaker Change: Sorry, 100 beds.
Horacio Marín: Why we are in docks? Two reasons, the first reason, the more important reason why we are in the order of 200 wells is because we try to not to invest and have docks, okay? Our idea is to make properly and so now because of the capacity that we have, the incremental that we see for all the evacuation way is that the number. When the VEMOS will be finished and after the sequestration of all your CAPEX, at that moment we will increase the activity in the oil for sure. And the other was the conclusion of... Disbandment of what?
Speaker Change: Why we are in that jewelry is firstly.
Speaker Change: An important reason why we added more than enough to have any royalty because we try to not to invest.
Speaker Change: Okay.
Speaker Change: To make propylene.
Speaker Change: So I'll now because I think our budget laid out we have the incremental debt that we see for all quarterly.
Speaker Change: Question way is that the number.
Speaker Change: In when the nameless easily be finished and there is a question of volume of Capex at the moment.
Speaker Change: We will increase the.
Speaker Change: In the activity in the oil.
Speaker Change: For sure.
Speaker Change: Yeah that was the conclusion or.
Speaker Change: Paul.
Horacio Marín: Of the other companies? You say, for example, to have the idea you are talking about for ExxonMobil and the others. The allocation of capital. No, no, I mean... Ah, okay, okay, okay, okay. When... It's okay. I now understood. Okay, for the... When we reduce all the mature fields, and we did in the 24 also, we reduced a lot the investment, much as we could, and we put in Vaca Muerta. The idea of this management is to try to maximize Vaca Muerta and not go into more than we need to fill up all the capacity that we have today.
Speaker Change: Many of the other companies.
Speaker Change: You say for example to have the idea you are talking now of extra mall and the other thing.
Speaker Change: No no.
Speaker Change: Okay, Okay. Okay. Okay.
Speaker Change: Okay.
Speaker Change: Understood.
Speaker Change: Okay for the Guangzhou venues all of the module field.
Speaker Change: And we did in the 'twenty four.
Speaker Change: Hello, Rob.
Speaker Change: Investment margin.
Speaker Change: Good.
Speaker Change: Holding back somewhat.
Speaker Change: Yes.
Let me.
Speaker Change: And to try to maximize more of that and not wanting to reward that we need to fill up all the capacity that we have today.
Horacio Marín: Okay? And so, for next year, we put for 25, you know, $5 billion for YPF. With this, it's almost maintaining the... The investment that we had the year before, and we are very confident in the incremental of production in Guatemala. After we asked me for the reserve-replacement ratio, the reserve-replacement ratio is remember that we have to do and is the way to do that is 1.9. Why that? Because it's a rule. In fact, you have to have a rule.
Speaker Change: Okay.
Speaker Change: All four for next year, we've been enrolling for 25 and you're in a $5 billion for all white the head.
Speaker Change: It's all about maintaining the.
Speaker Change: The investment that we had the year before.
Speaker Change: We are making continued confidence in incremental production back online.
Speaker Change: And after we estimate for the reserve replacement ratio.
Speaker Change: There is generally been a ratio.
Speaker Change: Remember that we kept to roll on.
Speaker Change: Hey.
Speaker Change: Wade one nine.
Speaker Change: Why that ecosystem.
Thank you you have to have it all.
Horacio Marín: But if you make physics and say the physics, I will explain that better in O311, that is for location. So there I can explain block by block how many locations that we have and you can make it very good and you will have a good feeling of what we have in hand and the possibility of YPF to increase and this wonderful company can increase in the next years, okay?
Speaker Change: He said the physics.
Speaker Change: I will explain that later in opening 11 that these four locations. So they're again displayed locomotive fleet.
Speaker Change: How many locations that we have and you can make a mainly rules.
Speaker Change: We'll have we have a good.
Speaker Change: Feeling.
Speaker Change: What we have it can and the possibility of ore while the ASP increase.
Speaker Change: And this one that farm income.
Speaker Change: Company guidance, increasing next year.
Horacio Marín: That's very clear. Thank you. No, thank you.
Speaker Change: That's very clear thank you.
Speaker Change: Thank you.
Vicente Falanga: Our next question comes from Vicente Falanga from Bradesco. Please go ahead. Your line is open. Thank you very much, Horacio, Federico and Max. I had two questions. Basically, the first one on the fourth quarter results. To what extent did the feeling of the Old El Val expansion affect the fourth quarter results? Some of your partners in Vaca Muerta highlighted that because of the fill up of Old El Val, production did not convert into revenues. I wanted to understand if that's the case for YPF. And do you have an estimate of how much?
Speaker Change: Our next question comes from the centre for longer from Bradesco. Please go ahead. Your line is open.
Speaker Change: Thank you very much what I asked you said equal remarks.
Speaker Change: I had two questions basically first one on the fourth quarter.
Speaker Change: Results, what extent did the filling of the older Nevada expansion effect the fourth quarter results.
Speaker Change: Some of your partners and Mark on were highlighted.
Speaker Change: Highlighted that because of the fill up of all the above.
Speaker Change: Reduction did not convert into revenues I wanted to understand if that's the case for Ips and do you have an estimate of how much.
Vicente Falanga: The second question... Just one very quick one, with the asset sales for the mature fields hopefully being concluded by the middle of this year, where can we expect the lifting costs to fall to immediately? Thank you very much. The other bad result is, if there is delay or not, it doesn't change a lot today for YPF. Why? Because, I don't know if we were very clear one day that we explained how we see. the evacuation figure or evacuation map for us. Now we support for Chile. We defend for Chile, okay? and the other one for us is internal consumption, okay?
Speaker Change: The second question.
Speaker Change: Okay.
Speaker Change: Just a quick one.
Speaker Change: With the assets with the asset sales for the mature fields are hopefully being concluded by the Baidu mid of this year.
Speaker Change: Where can we expect the lifting costs to fall to immediately thank you very much.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Jim.
Speaker Change: The result is.
Speaker Change: There is delay or not a bad thing.
Speaker Change: <unk> <unk> today for a wide berth why because.
Speaker Change: I don't know where very clear one day that we explain how we see.
Speaker Change: Meanwhile equation.
Speaker Change: Huawei is a map.
Speaker Change: Now as for Chile.
Speaker Change: Dan.
Speaker Change: For Chile, Okay.
Speaker Change: And the other a lot of progress and internalized consumption okay.
Horacio Marín: So we, they are not affected a lot in our case, okay? It could affect, I don't know, who company because I'm not looking all the company all day. I'm looking only YPF. So it's not that, it could be affect if we delay, debemos, no here, okay? That is the answer there.
Speaker Change: And so we are not affected.
Speaker Change: In our case.
Speaker Change: Equally.
Speaker Change: I don't know who company.
Speaker Change: Now looking on the gamba and the old name.
Speaker Change: Looking only at idea.
Speaker Change: As always note that in <unk>.
Speaker Change: Yes.
Speaker Change: If we delay the name of lull here okay.
The unknown there.
Horacio Marín: With the mature field, hopefully I'm sure that also, hopefully I'm sure, I'm sure, okay, that we are going to be very out there. The holistic coin that we go to very low number, what is it, nine? No, nine because it's nine, nine because also we have two more mature fields. That was not a logical way of working for this size of the company. We knew the lifting cost a lot, as we are doing, and be resilient for very low prices. And so when the price goes up, we make. A lot of money, and that is the way that we see YPF.
Speaker Change: And with the modular field hopefully ensure that also a couple of onshore enjoy. Okay. Then we are going to be made out there.
Speaker Change: If we go in there to maybe low number nine nine because at nine nine because also we have two more module sale.
Speaker Change: You bet.
Speaker Change: The event.
Speaker Change: Will that have.
Speaker Change: In one meeting.
Speaker Change: How long into but the fall in the <unk>.
Speaker Change: Look at the core that we are in in the range of four so we had a hearing in front in the future and that was the musical idea when we got into Ibs.
Speaker Change: That is to reduce the.
Speaker Change: So the multiple failed because equal if not more likely if that was not a logical way of working for this size of the company. When you released in growth as long.
Speaker Change: As we are doing on liver sealants for maybe lower prices and so when the price goes up we make.
Speaker Change: And a lot of money and that is a way that we see wideband.
Horacio Marín: Great, thank you. That's key, the last two. Thank you very much. Okay.
Speaker Change: Okay.
Speaker Change: Great. Thank you <unk>. Thank you very much.
Speaker Change: Okay.
Guilherme Mertens: Our next question comes from Guilherme Mertens from Goldman Sachs. Please go ahead. Your line is open. Thank you so much for having my questions. I have two quick ones from my side here. The first one is on your guidance for shale oil production, right? Please correct me if I'm wrong, but you said you're currently running roughly 150,000 barrels of oil in shale, right? While your guidance for 2025 is something above 160. So it could seem as quite conservative given your current run rate.
Speaker Change: Our next question comes from <unk> Martin <unk> from Goldman Sachs. Please go ahead. Your line is open.
Martin: Thanks, So much for taking my questions I have two quick ones from my side here.
Speaker Change: First one is on your guidance for <unk> production right.
Speaker Change: Correct me if I'm wrong, you said, you're currently running roughly 150000 barrels of volume share you're right why your guidance for 12 of the 25 is something above 160. So it would seem is quite conservative given your experience run rate I know you mentioned you will provide further details on your Investor day on April but as of today do you see room for maybe an upward revision.
Guilherme Mertens: I know you mentioned you'll provide further details on your investor day on April, but as of today, do you see room for maybe an upward revision of the target?
Guilherme Mertens: And my second question is on capital allocation. If you could please share your thoughts on why do you think global EMPs are seeking to divest from Argentina and La Comerta? And what are the competitive advantages you believe YPF has over those players? Thanks so much. Okay, you are anxious like me, okay? I'm anxious, okay? Really, I'm very anxious. April 11th, 40 days from now, Maldives is coming, nothing. I will explain there, but I have to, I would like to answer, so... Today, not today, but the yesterday or the day before yesterday, the production of La Camuerta was 156.
Speaker Change: This target.
Speaker Change: And my second question is on capital allocation. If you could please share your thoughts on why do you think global E&ps are seeking to divest from Argentina and welcome Martha and what are the competitive advantage that you believe IPF has overdose players. Thanks, so much.
Speaker Change: Okay, you are right.
Speaker Change: Okay. Okay.
Speaker Change: Okay and Barry.
Speaker Change: Yes.
Speaker Change: April 11, 48, excellent alma lasers become nothing.
Speaker Change: I will explain there Matt.
Speaker Change: I have two.
Speaker Change: Right.
Speaker Change: So.
Speaker Change: Do they want.
Speaker Change: Yes.
Speaker Change: The day before yesterday and interaction of like a more of that was one time.
Horacio Marín: thousand birthday So, if you see the guide on 25, you can realize that we are investing $3 billion there. I'm very confident that we are going to pass the IELTS, okay?
Speaker Change: 56.
Speaker Change: <unk> thousand per day.
Speaker Change: So if you see the guidance 10, defy Uganda, you along the way.
Speaker Change: Investment Committee meetings.
There.
Speaker Change: I'm very confident that we are growing but the guidance okay.
Horacio Marín: That is the first question. Second question, capital allocation in this investment in Bacamarca. I explained that before, I think. If the opportunities come and we see that some part is better than we have, you are going to do what we call active portfolio management. And so what we are going to do is to take this and maybe in the full development, if we see that we are not making value for the shareholders, we will sell the others, okay? That is the way it works, okay? And I think that's what I have to work and what you want from me to do, okay?
Speaker Change: Is it perfectly.
Speaker Change: Question capital allocation.
Speaker Change: Good morning.
Speaker Change: Saying that before I think we see opportunities.
Speaker Change: And we see that.
Speaker Change: <unk> is better than we have we are willing to walk the what we call active portfolio management.
Speaker Change: So what we are doing Google is to take this on Navy.
Speaker Change: In the full development, if we see that we are not making value for the shareholders will follow.
Speaker Change: Okay.
Speaker Change: And I think that that will work on Worldview one for Amit.
Speaker Change: Okay.
Okay.
Horacio Marín: Okay, thank you.
Operator: Is there a break? I answer. Sorry to those that are still in queue.
Speaker Change: Okay. Thank you.
Speaker Change: I am sorry.
Speaker Change: Sorry to those that are still in queue. We are out of time for questions. Today I would like to turn the call back over to Horacio Martin for any closing remarks.
Operator: We are out of time for questions today.
Horacio Marín: I would like to turn the call back over to Horacio Marin for any closing remarks. Well, okay. Thank you very much for all the questions. Thank you very much for your help.
Speaker Change: Okay. Thank you very much for all the questions. Thank you for your help and we will see enabling 11.
Horacio Marín: And we will see in April 11 where you can have hundreds of questions. We are going to be on live there. And so we can be up to midnight if you want. Okay? Thank you very much.
Speaker Change: You guys have.
Speaker Change: A question, we are going to be.
Speaker Change: Right, there and so we can be up to midnight.
Speaker Change: Thank you very much.
Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.
Speaker Change: Okay.
Speaker Change:
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].