Q1 2026 YPF SA Earnings Call

Speaker #1: Hello everyone. Thank you for joining us, and welcome to YPF's first quarter 2026 earnings presentation. After today's prepared remarks, we will host a question-and-answer session.

Operator: Hello, everyone. Thank you for joining us, and welcome to YPF's Q1 2026 earnings presentation. After today's prepared remarks, we will host a question and answer session. I will now hand the conference over to Margarita Chun, Investor Relations Manager. Margarita, please go ahead.

Speaker #1: If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Margarita Chun, Investor Relations Manager.

Speaker #1: Margarita, please go ahead.

Speaker #2: Good morning, ladies and gentlemen. This is Margarita Chun, YPF IR Manager. Thank you for joining us today in our first quarter 2026 earnings call.

Margarita Chun: Good morning, ladies and gentlemen. This is Margarita Chun, YPF's IR Manager. Thank you for joining us today in our Q1 2026 Earnings Call. Before we begin, please consider our cautionary statement on slide 2. Our remarks today and answer to your 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. Our financial figures are stated in accordance with IFRS, but during the presentation we might discuss some non-IFRS measures, such as Adjusted EBITDA. Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marín, our Finance Vice President, Mr. Pedro Kearney, and our Strategy, New Businesses and Controlling Vice President, Mr. Maximiliano Westen.

Speaker #2: Before we begin, please consider our cautionary statement on slide 2. Our remarks today and answer 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 these remarks.

Speaker #2: Our financial figures are stated in accordance with IFRS, but during the presentation we might discuss some non-IFRS measures such as adjusted EBITDA. Today's presentation will be conducted by our chairman and CEO, Mr. Horacio Marin, our finance vice president, Mr. Pedro Kearney, and our strategy, new businesses and controlling vice president, Mr. Maximiliano Westen.

Speaker #2: During the presentation, we will go through the main aspects and events that shape Q1 results and finally we will open the floor for Q&A session together with our management team.

Margarita Chun: During the presentation, we will go through the main aspects and events that shaped Q1 results, and finally, we will open the floor for Q&A session together with our management team. I will now turn the call over to Horacio. Please go ahead.

Speaker #2: I will now turn the call over to Horacio. Please go ahead.

Speaker #3: Thank you, Margarita. Good morning, everyone. We are glad to report a robust beginning of the year across our key operational and financial metrics, delivering on our ambition and guidance for the year.

Horacio Marín: Thank you, Margarita, and good morning, everyone. We are glad to report a robust beginning of the year across our key operational and financial metrics, delivering on our ambition and guidance for the year. Let me translate the key milestones of the quarter into numbers. Revenues were $4.95 billion, growing 9% quarter-over-quarter, primarily explained by the rising trend of international prices since March, coupled with our policy to align domestic prices of gasoline and diesel with international parities. On a yearly basis, revenue increased by 7%, reflecting strong local fuel demand and record high refinery processing level. Adjusted EBITDA for the quarter amounted to nearly $1.6 billion, representing the highest Q1 level in YPF's history, with an outstanding margin of 32%.

Speaker #3: Let me translate the key milestones of the quarter into numbers. Revenues were 4.95 billion dollars, growing 9% quarter over quarter, primarily explained by the rising trend of international prices since March.

Speaker #3: Coupled with our policy to align domestic prices of gasoline and diesel with international parities. On a yearly basis, revenue increased by 7%, reflecting a strong local fuel demand and record high refinery processing level.

Speaker #3: Adjusted EBITDA for the quarter amounted to nearly 1.6 billion dollars, representing the highest first quarter level in YPF's history. With an outstanding margin of 32%.

Speaker #3: This represents an increase of 24% and 28% on a sequential and inter-annual basis. Materially exceeding revenue expansions. The main factor that explained this growth were higher shell oil production improved pricing dynamics and the cost matrix transformation of the asking segment now focused on the shell business.

Horacio Marín: This represents an increase of 24% and 28% on a sequential and interannual basis, materially exceeding revenue expansions. The main factors that explained this growth were higher shale oil production, improved pricing dynamics, and the cost matrix transformation of the upstream segment now focused on the shale business. On the production side, our shale oil output reached 205,000 barrels per day. That mark represents an increase of 5% versus last quarter and a remarkable growth of 39% against a year ago, representing 76% of our total oil production. This milestone positions us on track to achieve our full year target of approximately 215,000 barrels per day with a December exit rate of 250,000 barrels per day. In addition, let me highlight several operational efficiencies achieved during the first months of the year.

Speaker #3: On the production side, our shell oil output reached 205,000 barrels per day. That mark represents an increase of 5% versus last quarter and a remarkable growth of 39% against a year ago.

Speaker #3: Representing 76% of our total oil production. This milestone positions us on track to achieve our full year target of approximately 215,000 barrels per day.

Speaker #3: With the December exit rate of 250,000 barrels per day. In addition, let me highlight several operational efficiencies achieved during the first month of the year.

Speaker #3: First, we set the new factory record during the first quarter, pumping continually for almost 110 hours and completing 52 stages in less than 5 days on a path at Loma Campana field.

Horacio Marín: First, we set a new fracturing record during Q1, pumping continuously for almost 110 hours and completing 52 stages in less than 5 days on a pad at Loma Campana field. Moreover, in April, we signed a strategic agreement with the service company Halliburton to incorporate 4 fracturing sets in Vaca Muerta through a new electrical fracturing technology. This new contract transformed YPF into the first company outside the US to develop this technology, improving efficiency by reducing the use of diesel engine, saving costs of the operation. In terms of investment, we deployed nearly $1 billion during Q1, with 78% allocated to our conventional operations. On a sequential basis, CapEx decreased by 10%, primarily due to increased maintenance activities in the downstream segment during Q4 2025, and is a lower pace of investment in upstream facilities.

Speaker #3: Moreover, in April, we signed a strategic agreement with the service company Halliburton to incorporate four factoring sets in Bacamarta through a new electrical factoring technology.

Speaker #3: This new contract transformed YPF into the first company outside the US to develop this technology. Improving efficiency by reducing the use of diesel engine, saving costs of the operation.

Speaker #3: In terms of investment, we deployed nearly $1 billion during Q1 with 78% allocated to our conventional operations. On a sequential basis, CAPEX decreased by 10%.

Speaker #3: Primarily due to increased maintenance activities in the downstream segment during Q4 2025, and a lower pace of investment in upstream facilities. Inter-annually, the lower investment is explained by the reduced exposure to conventional assets and the impact of one-off items booked last year to secure several unconventional concessions.

Horacio Marín: Interannually, the lower investment is explained by the reduced exposure to conventional assets and the impact of one-off item book made last year to secure several unconventional concessions. Consistent with the production expansion expected for the rest of the year, we expect to accelerate capital deployment in the following quarters, reaffirming our guidance of the year in the range of $5.5 to 5.8 billion. Finally, let me point out that a standout result of the quarter was our free cash flow, which read an outstanding $871 million. This mark represented an improvement of $1.8 billion against a year ago. This exceptional cash generation was supported by our strong operating performance and the collection of a strategic M&A proceeds of around $500 million.

Speaker #3: Consistent with the production expansion expected for the rest of the year, we expect to accelerate capital deployment in the following quarters, reaffirming our guidance of the year in the range of 5.5 to 5.8 billion dollars.

Speaker #3: Finally, let me point out that standout result of the quarter was our free cash flow which read an outstanding $871 million dollars. This mark represented an improvement of 1.8 billion dollars against a year ago.

Speaker #3: This exceptional cash generation was supported by our strong operating performance and the collation of strategic M&A proceeds of around $500 million dollars. As a result, our net labor ratio improved to 1.57 times, down from 1.9 times in Q4 2025.

Horacio Marín: As a result, our net leverage ratio improved to 1.57 times, down from 1.9 times in Q4 2025. Let me recall that in Q3 2025, we reached the peak of 2.1 times, driven by the M&A of buying new Vaca Muerta assets. Before moving into the financial detail of the quarter, I would like to address a significant conventional decision announced at the beginning of April regarding our local fuel pricing strategy. Due to a sharp increase in international prices, driven by the ongoing conflicts in the Middle East, during March, we were able to largely pass through this increase at the pump. However, in the last week of March, demand began to show signs of contraction for the first time in a while, particularly in gasoline.

Speaker #3: Let me recall that in Q3 2025 we reached the peak of 2.1 times driven by the M&A of buying new Bacamarta assets. Before moving into the financial detail of the quarter, I would like to address a significant commercial decision announced at the beginning of April regarding our local fuel pricing strategy.

Speaker #3: Due to a sharp increase in international prices, driven by the ongoing conflicts in the Middle East during March, we were able to largely pass through this increase at the pump.

Speaker #3: However, in the last week of March, demand began to show signs of contraction for the first time in a while, particularly in gasoline. In response, in April, YPF decided to temporarily postpone further pass-through of international price increases to customers for a period of 45 days. This mechanism operated as a buffer, enabling the reduction of the gap between local prices and import parities. After this period, the company recovered the buffer compensation through additional pump price increases.

Horacio Marín: In response, in April, YPF decided to temporarily postpone further pass-through of international prices increases to customers for a period of 45 days. This mechanism operates as a buffer, enabling the reduction of the gap between local prices and import parities after this period by recovering the buffer compensation through additional pump price. Importantly, let me clarify that this decision was made proactively with our own initiative by analyzing supply and demand by our commercial real-time intelligence center without any government interference, and was subsequently adopted by all major operators in the industry. The final objective of this conventional decision was to mitigate potential adverse effect in local demand while reaffirming our import parity strategy in a free market environment. It's also worth noting that during April, YPF maintained a very competitive fuel price level.

Speaker #3: Importantly, let me clarify that this decision was made proactively with our own initiative by analyzing supply and demand by our commercial real-time intelligence center without any government interference and was subsequently adopted by all major operators in the industry.

Speaker #3: The final objective of this commercial decision was to mitigate potential adverse effects in local demand while reaffirming our import parity strategy in a free market environment.

Speaker #3: It's also worth noting that during April, YPF maintained a very competitive fuel price level, moreover, in April, according to our preliminary figures, our midstream and downstream segment reached a very healthy as evident margin of around 24 dollars per barrel.

Horacio Marín: Moreover, in April, according to our preliminary figures, our midstream and downstream segment reached a very healthy Adjusted EBITDA margin of around $24 per barrel. The 45-day period will end around mid-May, at which point we will assess the evolution of Middle East situation, international prices, domestic demand, and microeconomic conditions. I would like to dedicate a few minutes to share with you the successful development of Langostura Sur, a block that, in our view, perfectly captures what YPF is capable of when we combine operational excellence with a strategic vision. Just 18 months ago, Langostura Sur produced 2,000 barrels per day of shale oil. Today, it's producing approximately 55,000 barrels per day. This remarkable ramp-up is roughly 25 times growth in one year and a half.

Speaker #3: The 45-day period we learned around mid-May at which point we will assess the evolution of Middle East situation international prices domestic demand and microeconomical condition.

Speaker #3: I would like to dedicate a few minutes to share with you the successful development of Langostura Sur, a block that, in our view, perfectly captures what YPF is capable of when we combine operational excellence with strategic vision.

Speaker #3: Just 18 months ago, Langostura Sur produced 2,000 barrels per day of shale oil. Today, it's producing approximately 155,000 barrels per day. This remarkable ramp-up is roughly 25 times growth in one year and a half, moreover, Langostura Sur is now ranked as the number five Bacamarta block and it currently represents approximately 25% of YPF's total shale oil production.

Horacio Marín: Moreover, Langostura Sur is now ranked as the number 5 Vaca Muerta block, and it currently represents approximately 25% of YPF's total shale oil production. What makes this block even more compelling from an investment standpoint is its economics. With a break-even price below $40 per barrel, lifting cost of around $3 per barrel, and a development level of approximately 19%, there is substantial upside here, and an unconventional concession value through 2059. Our plateau target for this block is approximately 100,000 barrels per day. We have 100% of the equity stake in Langostura Sur. This means YPF capture the full value of this world-class asset. Langostura Sur is not just a production story, it's a proof of concept.

Speaker #3: What makes this block even more compelling from an investment standpoint is its economics. With a breakeven price below $40 per barrel, listing costs of around $3 per barrel and the development level of approximately 19%, there is substantial upside ahead and the unconventional concession value through 2059.

Speaker #3: Our plateau target for this block is approximately $100,000 per day. We have 100% of the equity stake in Langostura Sur. This means YPF captured the full value of this world-class asset.

Speaker #3: Langostura Sur is not just a production story, it's a proof of concept. It demonstrated YPF's ability to rapidly develop Bacamarta at a scale with capital discipline and competitive costs.

Horacio Marín: It demonstrated YPF's ability to rapidly develop Vaca Muerta at scale with capital discipline at competitive cost. We are committed to replicating this model across our portfolio. I turn the call to Pedro to analyze in detail our financial results.

Speaker #3: We are committed to replicating this model across our portfolio. Now, I turn the call to Pedro to analyze in detail our financial results.

Speaker #1: Thank you, Horacio and good morning to you all. Let me walk through our consolidated financial results for the first quarter of 2026. The headline is clear: this was a quarter of exceptionally strong free cash flow which drove an accelerated deleveraging of our balance sheet, fueled by a strategic M&A collections and a strong adjusted EBITDA.

Pedro Kearney: Thank you, Horacio. Good morning to you all. Let me walk through our consolidated financial results for Q1 2026. The headline is clear: This was a quarter of exceptionally strong free cash flow, which drove and accelerated the leveraging of our balance sheet, fueled by strategic M&A collections and a strong Adjusted EBITDA. As Horacio briefly explained, M&A activity resulted in a net contribution of $504 million to the cash flow of the quarter. This was mainly driven by the final proceeds from the Profertil divestiture, totaling approximately $410 million. Additionally, during the quarter, we received about $85 million as partial payment from the sale of the conventional Manantiales field. Total price of this field amounted $410 million, with an earn-out of up to $40 million.

Speaker #1: As Horacio briefly explained, M&A activity resulted in a net contribution of $504 million to the cash flow of the quarter. This was mainly driven by the final proceeds from the profitable investor, totaling approximately $410 million.

Speaker #1: Additionally, during the quarter, we received about $85 million as partial payment from the sale of the conventional manantial barrel field. Total price of this field amounted $410 million with an earnout of up to $40 million.

Speaker #1: The remaining balance is expected to be collected throughout the rest of this year 2027 and 2028. This proceeds were partially offset by an initial payment of $16 million related to the acquisition of a portion of Equinor assets in Bacamarta through a joint venture with Vista Energy, which was closed yesterday and resulted in a total price of around $204 million.

Pedro Kearney: The remaining balance is expected to be collected throughout the rest of this year, 2027, and 2028. These proceeds were partially offset by an initial payment of $16 million related to the acquisition of a portion of Equinor assets in Vaca Muerta through a joint venture with Vista Energy, which was closed yesterday and resulted in a total price of around $204 million. Together with upcoming divestment of Metrogas and the remaining conventional assets from the Andes 2 Program, these transactions will further strengthen our financial position and provide greater flexibility to focus on our most profitable core business, Vaca Muerta. The solid free cash flow evolution was also driven by our outstanding performance in all our operations, navigating international volatility and profitable margins and cost efficiencies, as well as operating refineries at full capacity and continually expanding our shale operation.

Speaker #1: Together with upcoming investment of Metro Gas and the remaining conventional assets from the Andes II program, this transaction will further strengthen our financial position and provide greater flexibility to focus on our most profitable core business, Bacamarta.

Speaker #1: The solid free cash flow evolution was also driven by our standing performance in all our operations, navigating international volatility and profitable margins and cost efficiencies, as well as operating refineries at full capacity and continuously expanding our shale operation.

Speaker #1: As a result, the higher first quarter adjusted EBITDA comfortably covered investment and interest payment of the quarter. As a result, this substantial improvement in operational cash flow for the quarter led to an increase in the company's liquidity, which ended at 1.7 billion dollars as of the end of March 2026, representing an improvement of 500 million dollars during the quarter.

Pedro Kearney: As a result, the higher Q1 Adjusted EBITDA comfortably covered investment and interest payment of the quarter. As a result, this substantial improvement in operational cash flow for the quarter led to an increase in the company's liquidity, which ended at $1.7 billion as of the end of March 2026, representing an improvement of $500 million during the quarter. Turning to our financial situation, let me highlight that YPF's balance sheet is on a strong and improving trajectory, with a solid liquidity position and very manageable debt maturities. In terms of financing, we reconfirm our strong access to the capital markets by raising in Q1 nearly $1 billion across international and local markets, as well as bank credit facilities at attractive financing costs.

Speaker #1: Turning to our financial situation, let me highlight that YPF's balance sheet is on a strong and improving trajectory with a solid liquidity position and very manageable debt maturities.

Speaker #1: In terms of financing, we reconfirm our strong access to the capital markets by raising, in the first quarter, nearly $1 billion across international and local markets, as well as bank credit facilities at attractive financing costs.

Speaker #1: In the international capital market, during the first quarter, we successfully re-tapped our 2034 bond, adding $550 million at a yield of 8.1%, representing the lowest rate secured by YPF in the international market in the last nine years.

Pedro Kearney: In the international capital market, during Q1, we successfully re-tapped our 2034 bond, adding $550 million at a yield of 8.1%, representing the lowest rate secured by YPF in the international market in the last 9 years. We have been very active in the local capital market during the 4 months of 2026. We successfully issued around $285 million in 2 local USD MEP bonds, $161 million at a 3-year tenure with a yield of 6.5%, and $122 million at a 4-year tenure with an outstanding yield of 5.5%.

Speaker #1: Moreover, we have been very active in the local capital market during the first four months of 2026. We successfully issued around $285 million in two local US dollars MEP bonds, $161 million at a three-year tenor with a yield of 6.5% and $122 million at a four-year tenor with an outstanding yield of 5.5%.

Speaker #1: Regarding financial and trade-related loans, in February, we were able to partially refinance a local syndicated loan for $176 million. Extending additional $36 months, its average life.

Pedro Kearney: Regarding financial and trade-related loans, in February, we were able to partially refinance a local syndicated loan for $176 million, extending additional 36 months its average life. Moreover, this financing strategy, combined with a significant +free cash flow generated in Q1, enabled the company to proactively refinance existing facilities. During the first 4 months of the year, we prepaid approximately $750 million in debt obligations scheduled to mature between the remainder of 2026 and 2028, optimizing our capital structure and lowering our average cost of debt.

Speaker #1: Moreover, this financing strategy combined with a significant positive free cash flow generated in the first quarter enabled the company to proactively refinance existing facilities.

Speaker #1: During the first four months of the year, we prepaid approximately $750 million in debt obligations scheduled to mature between the remainder of 2026 and 2028.

Speaker #1: Optimizing our capital structure and lowering our average cost of debt. Looking at our debt maturity profile, the remaining maturities for 2026 total approximately $1 billion.

Pedro Kearney: Looking at our debt maturity profile, the remaining maturities for 2026 total approximately $1 billion, primarily composed of around $600 million in local bonds, of which we have already proactively repurchased $100 million as a hedge strategy of our liquidity position, around $300 million of international bonds, and the rest corresponding to other local debts. We are well prepared to meet our debt obligations for this year, supported by the substantial liquidity generated during Q1 at $1.7 billion. Finally, it's worth noting the evolution of the company's net leverage ratio. As of the end of Q1, our net leverage ratio stood at 1.57x, down 25% from its peak of 2.1x, reached in Q3 of 2025.

Speaker #1: Primarily composed of around $600 million in local bonds of which we have already proactively repurchased $100 million as a hedge strategy of our liquidity position, around $300 million of international bonds and the rest corresponding to other local debt.

Speaker #1: We are well prepared to meet our debt obligations for this year supported by the substantial liquidity generated during the first quarter at 1.7 billion dollars.

Speaker #1: Finally, it's worth noting the evolution of the company's net leverage ratio. As of the end of the first quarter, our net leverage ratio stood at 1.57 times, down 25% from its peak of 2.1 times reached in the third quarter of 2025.

Speaker #1: The trend is clearly positive, and we expect continued improvement throughout the year as cash generation remains strong. I am now turning to Max to go through our operational performance.

Pedro Kearney: The trend is clearly positive, and we expect continued improvement throughout the year as cash generation remains strong. I am now turning to Max to go through our operational performance.

Speaker #2: Thank you, Pedro, and good morning, everyone. Let me start by taking a closer look at our upstream performance. Shale oil continued achieving new record high levels in the first quarter reaching 205,000 barrels per day, a 5% sequential increase and a 39% year-over-year improvement.

Maximiliano Westen: Thank you, Pedro. Good morning, everyone. Let me start by taking a closer look at our upstream performance. Shale oil continued achieving new record high levels in Q1, reaching 205,000 barrels per day, a 5% sequential increase and a 39% year-over-year improvement. As Horacio mentioned before, this achievement was primarily driven by the outstanding performance of Langostura Sur block, which has shown exponential production growth in the recent months. These production levels are fully aligned with our plan, keeping us on track to meet our production targets of the year. The strong shale oil production growth fully offsets the continuous divestment from conventional oil fields, which declined more than 45% interannually, recording 66,000 barrels per day in Q1.

Speaker #2: As Horacio mentioned before, this achievement was primarily driven by the outstanding performance of Langostura Sur Block, which has shown exponential production growth in the recent months.

Speaker #2: This production levels are fully aligned with our plan, keeping us on track to meet our production targets of the year. The strong shale oil production growth fully offsets the continuous divestment from conventional oil fields, which declined more than 45% inter-annually recording 66,000 barrels per day in the first quarter.

Speaker #2: On a pro forma basis, excluding the recently divested assets Manantelever, Malarwe and Tierra del Fuego blocks, our conventional production would have averaged only about 35,000 barrels per day by March.

Maximiliano Westen: On a pro forma basis, excluding the recently divested assets, Manantiales Verdes, Malargüe, and Tierra del Fuego blocks, our conventional production would have averaged only about 35,000 barrels per day by March. As a result, we continue delivering meaningful savings across our cost matrix, demonstrating a remarkable 42% year-over-year reduction in our upstream lifting costs, which dropped to $8.8 per BOE in Q1. Furthermore, excluding divested assets, pro forma lifting costs would have averaged around $8 per BOE. Zooming into our shale oil hub blocks, lifting costs reach best-in-class levels of $4 per BOE, primarily driven by significant cost efficiencies in pooling activities, especially in the Loma Campana block, as well as the growing share of Langostura Sur blocks in our production portfolio, which notably has a lifting cost of around $3 per BOE, the lowest among all YPF fields.

Speaker #2: As a result, we continue delivering meaningful savings across our cost matrix demonstrating a remarkable 42% year-over-year reduction in our upstream lifting costs which dropped to 8.8 dollars per BOE in the first quarter, furthermore excluding divested assets pro forma lifting costs would have averaged around $8 per BOE.

Speaker #2: Zooming into our shale oil hub blocks, lifting costs reached best-in-class levels of $4 per BOE, primarily driven by significant cost efficiencies in pulling activities, especially in the Lomacampana block, as well as the growing share of Langostura Sur blocks in our production portfolio, which notably has a lifting cost of around $3 per BOE.

Speaker #2: The lowest among all YPF fields. On the other hand, the natural gas production averaged 32.8 million cubic meters per day down 12% year-over-year mainly reflecting our continued exit from mature conventional fields partially offset by shale gas expansion.

Maximiliano Westen: On the other hand, the natural gas production averaged 32.8 million cubic meters per day, down 12% year over year, mainly reflecting our continued exit from mature conventional fields, partially offset by shale gas expansion. Finally, let me highlight that on 23 April 2026, the shareholders meeting of VMOS approved the allocation to YPF of 44,000 barrels per day of additional available capacity of the pipeline. With this decision, YPF's stake in VMOS increases from around 25% to 30%, which is key to supporting the company's production growth in the coming years. In addition, Oldelval is expected to expand its transportation capacity by roughly 150,000 barrels per day by year-end through upgrades to pumping stations and using polymers.

Speaker #2: Finally, let me highlight that on April 23, 2026, the shareholders' meeting of VEMOS approved the allocation to YPF of 44,000 barrels per day of additional available capacity of the pipeline.

Speaker #2: With this decision, YPF's stake in VEMOS increases from around 25% to 30%, which is key to supporting the company's production growth in the coming years.

Speaker #2: In addition, Odelval is expected to expand its transportation capacity by roughly 150,000 barrels per day by year-end through upgrades to pumping stations and using polymers.

Speaker #2: Of this incremental capacity, YPF will hold around 40,000 barrels per day and will support higher volumes of YPF's shale oil to our La Plata refinery.

Maximiliano Westen: Of this incremental capacity, YPF will hold around 40,000 barrels per day and will support higher volumes of YPF shale oil to our La Plata refinery. Overall, these results reconfirm our upstream strategy robustness, shale oil driving higher efficiency by reducing lifting costs and sustaining a more resilient production output. Now, let me share the progress achieved in terms of productivity and operational efficiencies in our upstream segment, where the continuous improvement in drilling and completion efficiency has positioned YPF as the best-in-class operator in Vaca Muerta. Our drilling speed in our shale oil hub reached 364 meters per day in Q1, reaching a 12% improvement compared to 2025.

Speaker #2: Overall, these results reconfirm our upstream strategy robustness, shale oil driving higher efficiency by reducing lifting costs and sustaining a more resilient production output. Now let me share the progress achieved in terms of productivity and operational efficiencies in our upstream segment where the continuous improvement in drilling and completion efficiency has positioned YPF as the best-in-class operator in Vaca Muerta.

Speaker #2: Our drilling speed in our shale oil hub reached 364 meters per day in the first quarter reaching a 12% improvement compared to 2025. Moreover, our unconventional fracturing speed amounted to 11.2 stages per set per day growing 15% compared to 2025 supported by a 10% increase in pumping hours to an average of 18.5 hours per day in the first quarter.

Maximiliano Westen: Our unconventional fracturing speed amounted to 11.2 stages per set per day, growing 15% compared to 2025, supported by a 10% increase in pumping hours to an average of 18.5 hours per day in the first quarter. This performance reflects lower non-productive time and greater operational consistency. In this sense, let me highlight that in January, we drilled a new horizontal well in just 10 days in La Amarga Chica block, reaching a drilling speed of 520 meters per day. Faster drilling and fracturing means more wells completed in less time, which directly translates into faster production ramp-up and lower costs per well. One of the most important efficiency levers we have been developing is the transition to longer horizontal wells design.

Speaker #2: This performance reflects lower non-productive time and greater operational consistency. In this sense, let me highlight that in January we drilled a new horizontal well in just 10 days in La Marga Chica block reaching a drilling speed of 520 meters per day.

Speaker #2: Faster drilling and fracturing means more wells completed in less time which directly translates into faster production ramp-up and lower costs per well. One of the most important efficiency levers we have been developing is the transition to longer horizontal wells design.

Speaker #2: We have moved from a standard horizontal length of around 3,000 meters in the previous years to nearly 3,450 meters in the first quarter of 2026.

Maximiliano Westen: We have moved from a standard horizontal length of around 3,000 meters in the previous years to nearly 3,450 meters in Q1 2026. Finally, we would like to highlight the continued strengthening of our relationships with key suppliers. In this context, in April, we signed a 5-year contract with Halliburton for electric fracturing services, combining electrification and automation to boost efficiency, maintaining greater operational consistency, and helping to reduce emissions intensity. Moving to our midstream and downstream segment, our processing levels averaged 344,000 barrels per day in Q1, growing by 3% sequentially and 8% interannually, and setting another record high processing level. Moreover, this exceptional performance was coupled with record production of premium gasoline and middle distillates, allowing us to avoid imports, supply local peers, and export to neighboring countries.

Speaker #2: Finally, we would like to highlight the continued strengthening of our relationships with key suppliers. In this context, in April we signed a five-year contract with Halliburton for electric fracturing services combining electrification and automation to boost efficiency maintaining greater operational consistency and helping to reduce emissions intensity.

Speaker #2: Moving to our midstream and downstream segment, our processing levels average 344,000 barrels per day in the first quarter growing by 3% sequentially and 8% inter-annually and setting another record high processing level.

Speaker #2: Moreover, this exceptional performance was coupled with record production of premium gasoline and middle distillates, allowing us to avoid imports, supply local peers, and export to neighboring countries.

Speaker #2: Regarding domestic sales of gasoline and diesel, dispatch volumes declined by 3% quarter over quarter due to seasonality. On a year-over-year basis, gasoline and diesel volumes grew by 8% supported by stronger demand across all commercial segments particularly in the agribusiness.

Maximiliano Westen: Regarding domestic sales of gasoline and diesel, dispatch volumes declined by 3% quarter over quarter due to seasonality. On a year-over-year basis, gasoline and diesel volumes grew by 8%, supported by stronger demand across all commercial segments, particularly in the agribusiness. As a result, we maintained a solid 57% market share, fully in line with our historical levels, which increases up to 60% when including gasoline and diesel produced by YPF and dispatched through third-party gas stations. Turning to our pricing strategy, local fuel prices increased by 12% sequentially, primarily reflecting the rally in international reference prices that began in March, which were largely passed through the prices at the pump.

Speaker #2: As a result, we maintained a solid 57% market share fully in line with our historical levels which increases up to 60% when including gasoline and diesel produced by YPF and dispatch through third-party gas stations.

Speaker #2: Turning to our pricing strategy, local fuel prices increased by 12% sequentially, primarily reflecting the rally in international reference prices that began in March, which were largely passed through to prices at the pump.

Maximiliano Westen: Importantly, as Horacio explained earlier, fuel demand during late March fell by 10% approximately compared to early March, which supported our decision to temporarily delay further pass-through of international price increases to the local market for 45 days. In addition, following the price adjustments recorded in March, during April, fuel prices remained competitive. Lastly, our midstream and downstream Adjusted EBITDA margin remained strong at $19.1 per barrel in Q1. This margin further strengthened to about $24 per barrel in April, driven by elevated processing volumes and the effective pricing strategy outlined earlier. I am now turning to Horacio for updates regarding Argentina LNG and final remarks.

Speaker #2: Importantly, as Horacio explained earlier, fuel demand during late March fell by 10% approximately compared to early March which supported our decision to temporarily delay further pass-through of international price increases to the local market for 45 days.

Speaker #2: In addition, following the price adjustments recorded in March, during April, fuel prices remained competitive. Lastly, our midstream and downstream adjusted ABDA margin remained strong at 19.1 dollars per barrel in the first quarter.

Speaker #2: This margin further strengthened to about 24 dollars per barrel in April driven by elevated processing volumes and the effective pricing strategy outlined earlier. I am now turning to Horacio for updates regarding Argentina LNG and final remarks.

Speaker #1: Thank you, Max. Finally, let me share updates on the LNG projects, the most transformational initiative in YPF's history, that is making solid progress on all fronts.

Horacio Marín: Thank you, Max. Finally, let me share updates on the LNG projects, the most transformational initiative in YPF's history that is making solid progress on all fronts. Regarding the SESA tolling phase, in which YPF holds a 25% equity stake, during Q1, SESA signed an SPA for an LNG supply partnership with SEFE, an international energy company based in Germany. This strategic agreement covers a period of 8 years for 2 million tons per year starting in late 2027, representing around 30% of SESA total capacity, which corresponds to the total capacity of the first vessel, Gimi. In parallel, SESA awarded the engineering construction contract for the 480 km gas pipeline, and has been advancing on the project finance of the project.

Speaker #1: Regarding the CESA tolling phase, in which YPF holds a 25% equity stake, during the first quarter CESA signed an SPA for an LNG supply partnership with CEFE, an internationally energy company based in Germany.

Speaker #1: This strategic agreement covers a period of eight years for 2 million tonnes per year starting in late 2027 representing around 30% of CESA total capacity which corresponds to the total capacity of the first vessel HELI.

Speaker #1: In parallel, CESA, award the engineering construction contract for the 480 kilometers gas pipeline and has been advancing on the project finance of the project.

Horacio Marín: Turning to Argentina LNG projects, as flagged on our previous earnings call, this project contemplates the development, design, construction, and operation of a fully integrated LNG condensate and NGLs facilities. The founding partners are YPF, Eni, and XRG, an international energy investment arm of ADNOC. The project contemplates a total investment, excluding the upstream segment, of approximately $24 billion, which include the financial cost associated with the funding structure. These figures constitute an upward adjustment versus the most recent CapEx disclosed during the Q4 2025 result presentation. This adjustment reflects a strategic reallocation of investment between the upstream and midstream businesses, further optimizing the aggregate CapEx of the integrated project. Since the beginning of this year, we have been actively advancing the project financing process. In this context, we conducted a comprehensive market sounding exercise to assess investors' appetite. The response was very strong.

Speaker #1: Turning to Argentina LNG projects, as flagged on our previous earning call, this project contemplates the development, design, construction, and operation of a fully integrated LNG condensate and NGL facilities.

Speaker #1: The founding partners are YPF, E&I, and XRG, the international energy investment arm of ADNOC. The project contemplates a total investment, including the upstream segment, of approximately $24 billion, which includes the financial code associated with the funding structure.

Speaker #1: This figures constitute an upward adjustment versus the most recent CAPEX disclosed during the four-quarter 25 result presentation. However, this adjustment reflects a strategic relocation of investment between the upstream and midstream businesses.

Speaker #1: Further optimizing the aggregate CAPEX of the integrated project. Since the beginning of this year, we have been actively advancing the project financing process. In this context, we conducted a comprehensive market sounding exercise to assess investors' appetite.

Speaker #1: The response was very strong. When interested from approximately 50 institutional investors and cumulative initial appetite exceeding the project financial requirements, reaffirming the project financing viability.

Horacio Marín: When interested from approximately 50 institutional investors and cumulative initial appetite exceeding the project financial requirement, reaffirming the project financial viability. In addition, during the quarter, we have been diligently developing both our commercial and procurement strategies. On the commercial front, we launched a competitive bidding process, and the market response was very positive, far exceeding our initial expectation and demonstrating robust demand. On the procurement side, we are actively advancing the engineering phase for the various procurement packages required for the project. Our goal is to ensure that all necessary preparation are in place to enable a final investment decision by year-end. Moreover, last month, the province of Neuquén approved the assignment of Pluspetrol 50% interest to YPF in the three wet gas block identified to develop the Argentina LNG project.

Speaker #1: In addition, during the quarter, we have been diligently developing both our conventional and procurement strategies. On the commercial front, we launched a competitive bidding process and the market response was very positive.

Speaker #1: Far exceeding our initial expectation and demonstrating robust demand. On the procurement side, we are actively advancing the engineering phase for the various procurement packages required for the project.

Speaker #1: Our goal is to ensure that all necessary preparation and in place to enable a final investment decision by year-end. Moreover, last month, the province of Neuquén approved the assignment of proof petrol 50% interest to YPF in the three wet gas blocks identified to develop the Argentina LNG project.

Horacio Marín: Finally, I would like to emphasize that YPF continue to lead the key infrastructure debottlenecking initiatives required to fully monetize the vast shale oil and gas resources of Vaca Muerta.

Speaker #1: Finally, I would like to emphasize that YPF continues to lead the key infrastructure debottlenecking initiatives required to fully monetize the vast shale oil and gas resources of Acamuarta.

Speaker #1: One of the world's most competitive basins in terms of breakeven prices. In this context, YPF was awarded the Argentine country brand certification, recognizing the company's role as a key contributor to the country's productive development and its international positioning.

Horacio Marín: One of the world's most competitive basins in terms of breakeven prices. In this context, YPF was awarded the Argentine Country Brand certification, recognizing the company's role as a key contributor to the country's productive development and its international positioning. This distinction underscores YPF's contribution to reinforce Argentina's global image and supporting the attraction of long-term investment. With this, we conclude our presentation and open the floor for questions.

Speaker #1: This distinction underscores YPF's contribution to reinforce Argentina's global image and supporting the attraction of long-term investment. So, with this, we conclude our presentation and open the floor for questions.

Speaker #2: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand.

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Furrow with Pickering Energy Partners. Your line is now open. Please go ahead.

Speaker #2: To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #2: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Furrow with Pickering Energy Partners.

Speaker #2: Your line is now open. Please go ahead.

Speaker #3: Hello, and good morning. Thanks for having us on the call and for taking our questions. Horacio, I was hoping to get your perspective on the local service market in the Vaca Muerta that plays attracting more international attention.

Michael Furrow: Hello, and good morning. Thanks for having us on the call and for taking our questions. Horacio, I was hoping to get your perspective on the local service market in Vaca Muerta. The play is attracting more international attention. I think YPF is in a good position to offer some insight after signing the recent deal with Halliburton. We've noticed several US oilfield service companies mention South America and Argentina specifically, as emerging markets for their businesses on recent conference calls. My question is, are you actively seeing new entrants, and do you think that this is resulting in a more competitive service pricing environment? If not, what do you think needs to change before more service providers feel comfortable with Vaca Muerta and Argentina in general?

Speaker #3: I think YPF is in a good position to offer some insight after signing the recent deal with Halliburton. We've noticed several US oilfield service companies mention South America and Argentina specifically.

Speaker #3: As emerging markets for their businesses on recent conference calls, so my question is, are you actively seeing new entrants, and do you think that this is resulting in a more competitive service pricing environment?

Speaker #3: And if not, what do you think needs to change before more service providers for you are comfortable with the Vaca Muerta and the Argentina in general?

Speaker #4: Great. Thank you very much. First, I would like to say that today is Pedro's birthday. And also, my birthday. So you have to be very polite with us, okay?

Horacio Marín: Okay. Thank you very much. First, I would like to say that today is Pedro's birthday and also my birthday. You have to be very polite with us, okay? Because it is our birthday, okay? Okay.

Speaker #4: Because he's our birthday, okay? Okay. Thank you for the question. Now, thank you very much. Thank you very much. 63, I was born in '63, okay?

Horacio Marín: Happy birthday, Horacio and Pedro.

Horacio Marín: Thank you for your question. Yeah, thank you very much. Thank you very much. 63. I was born in 63, okay? It's a special day today, eh? You have to use 9, okay? Okay. Yes, in the service contract and the unique cost, I think next quarter, you will see a reduction in our cost because we make a very, I would say, strong, I don't know if it's exactly the question, a strong meeting with all the international service companies. We get very good reduction because it's illogical, because Argentina is a new country, it's business friendly, there was a big reduction. This week, I was also in United States trying to convince service company to come Argentina. We need more competition.

Speaker #4: So it's a little late today. So you have to use 9, okay? Okay. Yes. In the service, contract, and the unit cost, you will see I think next quarter, you will see a reduction in our cost because we make a very I would say strong I don't know if it's exactly the question.

Speaker #4: A strong bidding with all the international service companies. We get very good reduction because it's logical because Argentina is a new country. It's a business-friendly.

Speaker #4: And there was a big reduction. This week, I was also in the United States trying to convince service company to come to Argentina. We need more competition, but learning in the United States.

Horacio Marín: You know, learning United States, to reduce the price, there is two ways. One, by competition, big competition. The second one is to take one out. If they are three, two. If two, one. If they are four, three, or they are four, two. We did that process, and we were very success for the shareholders' value. For this year, we are going to improve. In December, you will see 19 rigs, and we secure all the rigs. Also, we secure all the fracs fleet. Now we are working for next year also. We are importing the last technology equipment from United States. Halliburton is trying, it will be in Argentina, the first electrical frac fleet. Our real-time intelligent center is working very well and improving a lot.

Speaker #4: To reduce the price, there is two ways. One, by competition, big competition. The second one, to take one out. There are three, two. It's two, one.

Speaker #4: There are four, three. Or there are four, two. And with that process, we were very successful for the shareholders' value. For this year, we are going to improve in December, you will see 19 REX.

Speaker #4: We secure all the REX. Also, we secure all the FRAX fleet. Now we are working for next year also. We are importing the last technology equipment from the United States.

Speaker #4: Hollywood is trying it will be in Argentina the first electrical FRAX fleet. And our real-time intelligence center is working very well and improving a lot.

Horacio Marín: Really we need a good equipment with technology because it's the one that we are investing, the one that we see that we are improving a lot every quarter. We have also a procedure to improve our standard times in all drilling and completion by the base boring automatically. Every quarter when it's finished, the people in YPF will know that we have a new standard and are always more challenging than it was before. That is the way that we work. I hear your question, that we try to come a more service company and try also we are working that service company is more service company like they have to be in joint venture with Argentine companies to improve the quality and the, how you say it, the efficiency.

Speaker #4: And we really need a good equipment with technology because it's the one that we are investing and the one that we see that we are improving a lot.

Speaker #4: Every quarter, we have also a procedure to improve our standard times in all drilling and completion. By the best 40, automatically. So every quarter, when it's finished, the people in YPF will know that we have new standard and are always more challenging than it was before.

Speaker #4: That's the way that we work. And I agree with your question that we try to become more of a service company, and also we are working so that service companies—especially those in the United States—have to be in joint venture with Argentine companies.

Speaker #4: To improve the quality and the what you say, the efficiency. Because we know that every tomorrow must be better than today. Tomorrow, we have to be more efficient than yesterday.

Horacio Marín: We know that tomorrow must be better than today. Tomorrow we have to be more efficient than yesterday. That is the way that we work in YPF.

Speaker #4: And that is the way that we're working in YPF.

Speaker #3: Thank you for the context. As a follow-up, I'd like to ask about the concession sales that Nick Cannon Province is offering in August, particularly interested in your opinions on the prospectivity of the Northern Acreage given YPF's adjacent position and knowledge of the area.

Michael Furrow: Thank you for the context. As a follow-up, I'd like to ask about the concession sales that Neuquén province is offering in August. Particularly interested in your opinions on the prospectivity of the northern acreage, given YPF's adjacent position and knowledge of the area. Without giving away too much information, are there certain blocks that YPF is interested in, or is the company comfortable with the current asset portfolio?

Speaker #3: Without giving away too much information, are there certain blocks that YPF is interested in or is the company comfortable with the current asset portfolio?

Horacio Marín: In the north we have. Sorry, yes. You know that we have what we call North Hub Core, and South Core. South Core, we have all that, and we are going to present RIGI, I think, next week. This is the big RIGI. For the north, we are working, we have more partners. In the south, we are 100%. We are working with our partners to have the RIGI and to start. After that, we have always to make our projection and to have the base value for shareholders is a mixture between the capital that we raise from partners and 100%.

Speaker #4: In the north, we have sorry. Yes. In the you know that we have what we call North Half, Half Core, and South Core. South Core, we have all that, and we are going to present right here, I think, next week.

Speaker #4: But the big, big, big right here. For the north, we are working we have more partners in the south. We are 100%. We are working with the other partners to have the right here.

Speaker #4: And to start. And so after that, we have always to make our projection and to have the best value for shareholders is a mixture between the capital that we reach from partners and 100%.

Horacio Marín: In that way, we always try to put the maximum or the optimum way of making value for you, for shareholders.

Speaker #4: And in that way, we always try to put the maximum or the optimum way of making value for you. For shareholders.

Michael Furrow: All right. Thanks for your time. No further questions. Have a nice rest of your day.

Speaker #3: All right. Thanks for your time, and I hope you, Pedro, have a nice birthday.

Speaker #4: Okay.

Horacio Marín: Okay.

Speaker #1: Your next question comes from the line of Daniel Guardiola with BPG Pactual. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Daniel Guardiola with BTG Pactual. Your line is now open. Please go ahead.

Daniel Guardiola: Good morning, Horacio, Pedro, Matt and Maggie, and thank you for your presentation. I have a couple of questions from my end. One is on prices. I see that the quarter somehow benefited from a sharp increase in oil prices in March. I get the feeling that much of the pricing benefit in both upstream and downstream appears to be delayed. I wanted to ask you, in the case Brent remains high as it is today, above $90, how quickly can you guys now pass through price changes domestically under the current market framework? It would be awesome if you could please provide some sensitivities in terms of your EBITDA generation for 2026 if oil prices range in 2026 around $80 to $90. That would be my first question.

Speaker #5: Good morning. Horacio Pedro Max and Maggie. And thank you for the presentation. I have a couple of questions from my end. One is on prices.

Speaker #5: I see that the quarter somehow benefited from a sharp increase in our prices in March but I get the feeling that much of the pricing benefit in both ups and downstream appears to be delayed.

Speaker #5: So I wanted to ask you, in the case Brent remains high as it is today, above $90, how quickly can you guys now pass through price changes domestically under the current market framework?

Speaker #5: And it would be awesome if you could please provide some sensitivities in terms of your editor generation for 2026 if oil prices range in 2026 around $80 to $90.

Speaker #5: So that would be my first question. And my second one, on the lifting costs, we have seen a very sharp decline in lifting costs, decline in 42% year over year.

Daniel Guardiola: My second one is on the lifting costs. We have seen a very sharp decline in lifting costs, declining 42% year over year. Of course, we are seeing a more efficient structure in the core hub, in the shale oil core hub. I want to ask you how much further room you think there is for structural reduction, especially considering that the company is transitioning from conventional assets towards unconventional assets, but at the same time, higher prices are perhaps creating inflation pressures in Vaca Muerta. Those will be my two questions. Thank you, guys.

Speaker #5: And of course, we are seeing a more efficient structure in the core hub in the shale oil core hub. And I want to ask you, how much further room do you think there is for structural reduction especially considering that the company's transitioning from conventional assets towards unconventional assets but at the same time, a higher prices are perhaps creating inflation pressures in Vaca Muerta?

Speaker #5: So, those would be my two questions. Thank you, guys.

Speaker #4: Okay. Thank you for the questions. The first one, I don't know if you agree with you that the quarter is only because of the sharp increase in prices during March because look in detail and you will see that it's a big, big difference because our strategy to be more unconventional.

Horacio Marín: Okay. Thank you for your questions. The first one, I don't know if I agree with you that this, the core reason is only because of the sharp increase in prices during March because, look in detail and you will see that it's a big difference because our strategy to be more unconventional. I will answer the That is in your introduction. I will answer, your, the question. I'm not worried what in the prices that you are saying, but if it remains in $90 or if it goes to $80 or $90, we are very okay, and we can quickly pass through the prices. No, I don't see that problem. I will not say what is our price today because you know that it's a buffer.

Speaker #4: But I will answer that is in your introduction. I will answer you the question. I'm not worried in the prices that you are saying that if it remains in 90 or if it's going to 80 or 90, we are very okay and we can pass the quickly pass through the prices.

Speaker #4: And no, I don't see that problem. I will not say what is our price today because you know that it's a buffer. I prefer not to say because of the competition event that everybody we are doing the same.

Horacio Marín: I prefer not to say because of the competition, even that everybody, we are doing the same. I don't see at all that it will be a problem for us if the price of Brent remains in the order of $90, so it remains in the $80 to $90 range. For the second question, you say We are really working very, very hard, people in YPF always try to optimizing. That's why you can see the big difference in both upstream and downstream during those years. I don't take on account what you're saying, why you say inflation pressure. I don't know what you are talking about because a country with is okay, and that means that we are improving in the country. I'm not arguing on that.

Speaker #4: But I don't see at all that it will be a problem for us if we are the price of Brent remains in the order of 90s or it remains in the 82, 90 range.

Speaker #4: For the second question, you say we are really we are working very, very hard people in YPF. Always try to optimizing. That's why you can see the big difference in both upstream and downstream during those years.

Speaker #4: And I don't take into account what you are saying. Why do you say inflation pressure? I don't know what you are talking about, because a country which is okay—and that means that we are improving in the country.

Speaker #4: So I'm not agreeing on that. My job is to work and be always, always more efficient, and really, you see that we are reducing the lifting costs. And also, if you see how we can, we are developing the way of developing.

Horacio Marín: My job is to work and be always more efficient. Really you see that we are reducing the lifting costs. Also if you see how we are developing the way of developing. You see how Vaca Muerta and Isena was increasing. You compare the way that we are developing now is totally different. We are growing very fast we can reach a better efficiency. We have also in our operation, I would say, very sophisticated real-time intelligence center for the operation. We can see everything. We have drones, we have everything on that.

Speaker #4: You see how Vaca Muerta and in general was increasing and you compare the way that we are developing now, it's totally different. We are doing very fast and so there we can reach better, better efficiency and we have also in the in our operation and I would say I would very sophisticate real-time intelligence center for the operation.

Speaker #4: We can see everything we have drones, we have everything on that. And we are improving a lot every time that every day that we are there or every month that we are following the prices is already the management control we see that all the KPIs go in the good direction.

Horacio Marín: we are improving a lot every time that every day that we are there, every month that we are following the prices, the management control, we see that all the key KPI is going the good direction. I'm positive the way that YPF quarter-over-quarter are doing the job. we are very proud of what we are using, and we are going to reduce more. We have very low now, very few assets in conventional, and our idea is to try to sell out during 2026 and be an special company. We design a conventional, integrate company.

Speaker #4: So I'm positive in the way that YPF quarter or YPF are doing the job. And so we are very proud of why we are reducing and we are going to reduce more.

Speaker #4: We have very low now, very few assets in conventional and our idea is to try to sell out during 2026 and be an special company with this unconventional integrated company.

Speaker #1: Your next question comes from the line of Bruno Montanari with Morgan Stanley. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Bruno Montanari with Morgan Stanley. Your line is now open. Please go ahead.

Bruno Montanari: Good morning. Thanks for taking my question, and happy birthday. The first question is about the LNG project. You do mention you have the two foundation partners, Eni and XRG. I'm wondering if on the back of all the energy security and the conflict in the Middle East, YPF is seeing now interest of potential additional partners coming into Argentina LNG, and potentially making it viable, discussions about the potential expansion of 6 million tons per year. That is my first question. My second question is about the drilling pace, drilling completion pace in Q1 now. There seems to have been a temporary slowdown in the beginning of the year.

Speaker #6: Good morning. Thanks for taking my question. And happy birthday. So the first question is about the LNG project. You do mention you have the two foundation partners, CNI and XRG.

Speaker #6: I'm wondering if, on the back of all the energy security and the conflict in the Middle East, YPF is seeing new interest from potential additional partners coming into Argentina LNG and potentially making it viable to have discussions about the potential expansion to 6 million tons per year.

Speaker #6: That is my first question. My second question is about the drilling pace drilling and completion pace in the first quarter now. There seems to have been a temporarily slowdown in the beginning of the year.

Bruno Montanari: I do understand you are reiterating all the production guidance, but I just wanted to have more color, on what happened specifically in Q1 that led to a slower activity level. Thank you very much.

Speaker #6: I do understand you are reiterating all the production guidance, but I just wanted to have more color on what happened specifically in the first quarter that led to a slower activity level.

Speaker #6: Thank you very much.

Speaker #4: Okay, thank you very much. With the LNG, we are working, the three founders. In fact, today we are in Milan, the three teams working very hard—very hard—to finish all the contracts.

Horacio Marín: Okay, thank you very much. With the LNG, we are working the three founders. In fact, today, we are in Milan, the three teams working very hard to finish all the contracts because our idea to be in the BDR as soon as possible for the project finance. Really, we don't need to another partner, but it could be potentially another one. We are working the three, and we are very proud of what we are doing. What we think, from my point of view, I think from the conflict of Middle East, there are two things that is happening. There is more appetite for finance our project.

Speaker #4: Because our idea is to be in the BDR as soon as possible for the project finance. Really, we don't need really we don't need to another partner, but it could be potentially another one.

Speaker #4: But we are working the three and we are very, very proud what we are doing. And what we think from my point of view, what I think from the confluent Middle East, there are two things that is happening.

Speaker #4: There are speeding up the there is more appetite for the for finance our project, our this is a big and robust project. It's one of the first profitable projects in the world today.

Horacio Marín: This is a very, a big and robust project. It's one of the most profitable projects in the world today. The other thing that I see is that is my point of view, that it's going to speed up a lot, what we call the expansion. I think the expansion, it will be quickly than we thought before. Maybe we can make like one. I don't say one, but it will be speed up a lot. There is also before the conflict, we have a lot of appetite from off-takers, and we see, I would say, good negotiation with the possible off-takers.

Speaker #4: The other thing that I see is that there is going—that is my point of view. That is going to speed up a lot what we call the expansion.

Speaker #4: I think the expansion, it will be more quickly than we thought before. So maybe we can make like one. I don't say one, but it will speed up, speed up a lot.

Speaker #4: And there is also before before the conflict, we have a lot of appetite from off-takers and we see I would say good not contract, good negotiation.

Speaker #4: With the possible off-takers, and so we are in very, very, very good moment and very good path to have an idea at the end of the year.

Horacio Marín: We are in a very, very, very good moment and very good path to have a FID at the end of the year. I am very happy on that. In the second part, the slowdown in the drilling and completion, I would pass to Maximiliano Westen. I will tell you that it is a question of a bottleneck that is in our infrastructure. Next year, we will not see that anymore. You will see an improvement, incremental production month by month. Today, you have to take into account there was a big change in the system. I pass to Max.

Speaker #4: So, I'm very happy on that. In the second part, it’s slowed down in the drilling and completion. I would pass to Max Westen, but I will tell you that it’s a question of a bottleneck that is in our infrastructure.

Speaker #4: But next year I will not see that anymore. You will see an improvement in incremental production month by month, but to there you have to take into account that it was a big change in the system.

Speaker #4: I pass to Max.

Speaker #6: Thank you, Horacio. Hello, Bruno. How are you? No, no, there wasn't there wasn't a slowdown. What happened is that what we did in the first quarter compared to the fourth quarter last year is that we drilled longer lateral wells about at an average 6% higher longer laterals compared to the fourth quarter.

Maximiliano Westen: Thank you, Horacio. Hello, Bruno. How are you? No, there wasn't a slowdown. What happened is that what we did in Q1 compared to Q4 last year is that we drilled longer lateral wells, about as an average 6% higher longer laterals compared to Q4. We've drilled pretty much the same amount of wells.

Speaker #6: But we've drilled pretty much the same amount of wells. And, on top of that, there was an effect that at the end of last year, during the fourth quarter, there was a window in which we've accelerated our plan of reducing our DUCs that we had—the drilled and uncompleted wells.

Horacio Marín: On top of that, there was an effect that, at the end of last year, during Q4, there was a window in which we've accelerated our plan of reducing our DUCs that we had the drill and completed wells. We had some extraordinary CapEx at Q4 to reduce to DUCs. Over Q1, we've drilled longer lateral well. Can tell you is that we are maintaining our production targets for this year. You will see a ramp-up in the level of activity starting next month, with Horacio commented this, going up to 19 rigs at the end of the year.

Speaker #6: So we had some extraordinary capex at the fourth quarter to reduce to ducts. And over the first quarter, we've drilled longer lateral. Can tell you is that we are maintaining our production targets for this year.

Speaker #6: And you will see a ramp-up in the level of activity starting next month, with Horacio commenting on this. Going up to 19 rigs at the end of the year.

Speaker #6: And we've did that at the pace at the correct pacing because there's not much more that we can evacuate until Vemos is COD. So that's our plan.

Horacio Marín: We've did that, at the pace, at the correct pacing, because there's not much more that we can evacuate until VMOS is COD. That's our plan.

Speaker #6: Perfect. Thank you very much.

Bruno Montanari: Perfect. Thank you very much.

Speaker #1: Your next question comes from the line of Vicente Falanga with Bradesco BBI. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Vicente Falanga with Bradesco BBI. Your line is now open. Please go ahead.

Vicente Falanga: Hi, Horacio, Pedro. Feliz cumpleanos. Thank you for taking my question. I had one. YPF has now been very successful in accelerating the de-risking of the southern cluster. I was wondering, what is the timeline for the northern cluster, in terms of development, what are the key milestones we can expect for the next couple of years, maybe? Thank you very much.

Speaker #7: Hi, Horacio Pedro. Feliz cumpleaños and thank you for taking my question. I had one. YPF has now been very successful in accelerating the de-risking of the seven cluster.

Speaker #7: I was wondering, what is the timeline for the northern cluster in terms of development, and what are the key milestones we can expect for the next couple of years, maybe.

Speaker #7: Thank you very much.

Horacio Marín: Hello, Vicente. As I tell before, the north part is not where we are in 100%. We are now negotiating with our partners. I'm very positive that we will reach very soon, I would say a development phase on how to develop. After, we present, we will present the rig. For sure, next year we will start de-risking that part. We need that because at the end of that, we have to develop very well all that, not to have challenges, and also to go to the places where we make more value for us to the shareholders.

Speaker #4: Hey, hello, Vicente. As I told before, the north part is not where we are in 100%. So we are now negotiating with our partners and I'm very positive that we will reach very soon I would say a development phase.

Speaker #4: Development phase and how to develop. And after, we will present the rigging. And for sure, next year we will start the risking that part.

Speaker #4: We need that because at the end of that, we have to develop have child and also to go to the places where we make more value for us to the shareholders.

Speaker #7: Thank you very much.

Vicente Falanga: Thank you very much.

Horacio Marín: You need more details?

Speaker #4: Oh, you need more details.

Speaker #1: Your next question comes from the line of Andrés Cardona with CIDI. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Andres Cardona with Citi. Your line is now open. Please go ahead.

Andres Cardona: Hi, good morning, Horacio, Pedro. Happy birthday. unexpected synergy here. one quick question about the productivity of Langostura Sur. How does it compare with your Quila, Vaca Muerta fields? Versus your initial expectations, do you think there is upside on the numbers on the south hub? How many acres and drilling locations do you have in this new developing area? Thank you.

Speaker #8: Hi, good morning. Horacio Pedro. Happy birthday. Unexpected synergy here. One quick question about the productivity of Langostura Sur. How does it compare with other Kiwa Camorta fields?

Speaker #8: And versus your initial expectations, do you think there is upside on the numbers on the south half? And how many acres and drilling locations do you have in this new developing area?

Speaker #8: Thank you.

Speaker #4: Okay. In general, the productivity that we have in last is the like a hardcore. It's very good. Also, you can have better results comparing with the history because now we have more lateral is longer.

Horacio Marín: Okay. In general, the productivity that we have in last is like a hard core, is very good. Also you can have better results comparing with the history, because now we have more lateral, is longer, we have more efficient on that, okay? The All that we call, what we call the south hub, because it's 100% of YPF, it will be very productive, very profitable. It's extremely good. We have a lot of work to do. You will see next week the rig there will be the order of 1,200 wells location to drill.

Speaker #4: And so we have more efficient on that, okay? The all that what we call what we call the south half because this 100% of YPF is it will be very productive, very profitable.

Speaker #4: It's extremely good. And we have a lot, as well, to do. You will see next week the rigging, and there will be the order of 1,200 wells' location.

Speaker #4: To drill. And there is there will be very important for the incremental production that we have in the long term for our peak production in the beginning of next decade.

Horacio Marín: There will be very important for the incremental production that we have in the long term for our peak production in the beginning of next decade. You say also about the possibility of the timing of the $6 million. That is something that we have to discuss with the partners. I have the idea. I will start discussing, but I prefer that we are very good partners that the three of them same moment say that. In my point of view, there is the Because there are of us, of course, is the Argentina LNG, that it will be sped up. Sorry not to answer.

Speaker #4: You say also about the possibility of the timing of the 6 million. That is something that we have to discuss with the partners. And I have the idea.

Speaker #4: I was started discussing, but I prefer that we are very good partners, that the three at the same moment say that. But in my point of view, there is, because there are vessels, what is the Argentina LNG, that they will be speed up.

Speaker #4: But sorry not to answer. I don't like also to not answer questions. But I think I have to be a very good partner with them.

Horacio Marín: I don't like also to not answer questions, but I think I have to be a very good partner with them.

Speaker #8: Thank you. Thank you, Horacio.

Andres Cardona: Thank you.

Horacio Marín: Okay.

Speaker #1: Your next question comes from the line of Leonardo Marcondes with Bank of America. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Leonardo Marcondes with Bank of America. Your line is now open. Please go ahead.

Leonardo Marcondes: Hi, everyone. Good morning. Thank you for picking my questions. Happy birthday to you guys as well. I have two questions from my end. The first one is related to the inclusion of the upstream projects into the RIGI framework, right? My question is, what blocks do you expect to register for RIGI? How should they change your drilling plans in the mid-middle term, right? My second question is regarding the LNG project. It seems that you guys have implemented some changes, since the last quarter, right? Because as we compare both presentations, we see that CapEx for phase I have increased it to USD 24 billion from USD 20 billion. And now you're contemplating what seems to be two pipelines, right? I mean, one for wet gas and one for C5 plus.

Speaker #6: Hi everyone. Good morning. Thank you for picking my questions. Happy birthday to you guys as well. So I have two questions from my end.

Speaker #6: The first one is related to the inclusion of the upstream projects into the rigging framework, right? So, my question is: what blocks do you expect to register for rigging?

Speaker #6: And how should they change your drilling plans in the middle term? Right? My second question is regarding the LNG project. It seems that you guys have implemented some changes since the last quarter, right?

Speaker #6: Because as we compare both presentations, we see that CapEx for phase one has increased to $24 billion from $20 billion. And now you are contemplating what seems to be two pipelines, right?

Speaker #6: I mean, one for wet gas and one for C5 plus. So if you could walk us through these main changes here, it would be great.

Leonardo Marcondes: If you could walk us through these main changes, here, it would be great. Thank you.

Speaker #6: Thank you.

Speaker #4: Okay. Thank you for the question. The first one we are going to include all the possible blocks that can be applied to rigging. Okay?

Horacio Marín: Okay. Thank you for the question. The first one, we are going to include all the possible blocks that can be applied to RIGI. Okay? The RIGI, because it's the same for everybody, all the blocks, they will not change the relative reference for one to the other. They are not going to change our drilling plan, also our idea was always to develop quickly. Maybe we can, because the RIGI is a very amazing program, they could speed up our peak, okay? That we are going to show big detail in the next investor day that we are going to travel to New York in April, and you will see the big difference.

Speaker #4: So, and the rigging—because it's the same for everybody, or all the blocks—they will not change the relative preference for one to the other.

Speaker #4: So, I think it's they are not going to change our drilling plans. So, and also our idea was always to develop quickly, quickly. Maybe they can, for because of the rigging, it is very an excellent program.

Speaker #4: They could speed up our peak. Okay? That we are going to show big detail in the next investor day that we are going to travel to New York in April.

Speaker #4: And you will see the big difference. So you have a space that next year because of the difference on prices in this year and the rigging and all that I'm very positive that you can see there are an speed up of our program.

Horacio Marín: You have expected next year because of the difference on prices in this year and the RIGI and all that. I'm very positive that you can see there an speed up of our program. For the second part, maybe, we were not clear with that, maybe to make a key decision for us, because there was no changes, because it could be confuse you, because we put 2024 to 2020, but this is same. I explain why. With all the partners in the engineering part, we follow and see in big details all the project, and we realized that it will be more profitable.

Speaker #4: For the second part, maybe we were not clear. We may have to make a clear decision for ourselves because there were no changes. It could be confusing because we put 24 to 20, but it's the same.

Speaker #4: I explained why. With all the partners in the engineering part with follow and see in big details all the projects and we realized that it will be more profitable if we make more all the plant instead of to be in the separation plant in Neuquen is there will be the four phase.

Horacio Marín: It would make more all the plant is built to be in the separation plant in Neuquén, if there will be the fourth phase, and after there will be Vaca Muerta that go directly to the port, and there we make a big plan. It was a shift of investment from what we call upstream to let's say midstream or midstream plus downstream. That is the difference. The other difference that we see from the beginning that you have now, the gas pipeline will take a lot, but the rest of it is wider rate. That they go all condensate. That's all the different liquids. After in Rio Negro, they're going to separate the NGLs more.

Speaker #4: And after there will be we grave that go directly to the port and there will make a big plant. So it was a shift of investment from what we call upstream to let's say midstream or midstream plus downstream.

Speaker #4: And so that is the difference. The other difference that we see from the beginning is that you have now the gas pipeline, which will take about that.

Speaker #4: But also there is a wire rail that they go all condensate plus all the different liquids. And after in Rio Negro we are going to separate the NGLs more.

Horacio Marín: There will be three products out: what is the gas for LNG, NGLs for export, and also the liquids of the oil for export. That is the difference. Really there is not a more cost. I would say that it's less cost than we thought because we were not clear when we talk about there was in the upstream, because the upstream is not in project finance in general. You will not see all the shifting on that. That is not the big. I would say that it's better than before, but you see in the project finance, $4 million more, okay? Maybe it was our fault, so apologize, okay?

Speaker #4: And so there will be three products out: one is the gas for LNG, NGLs for export, and also the liquids of the oil for export.

Speaker #4: That is the difference. But really, there is not a more cost. I would say that it's less cost than we thought because we were not clear when we talk about there was in the upstream, because the upstream is nothing—pressure finance in general.

Speaker #4: And so you cannot see all the system on that. That is not the big I would say that it's better than before. But you see in the pressure finance for a million more.

Speaker #4: Okay? So maybe it was our fault. And so apologize. Okay?

Speaker #1: Your next question comes from the line of George Gastaut with Latin Securities. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of George Gasztowtt with Latin Securities. Your line is now open. Please go ahead.

George Gasztowtt: Hi, good morning, and happy birthday to you both. I was wondering if you could please unpack the 102% refinery utilization in Q1 and how sustainable that is. Relatedly, how are fuel inventories running so far in Q2? Do you think you'll be able to sell some to other refineries again? Thank you.

Speaker #8: Hi, good morning, and happy birthday to you both. I was wondering if you could please unpack the 102% refinery utilization in Q1, and how sustainable that is.

Speaker #8: And relatedly how a fuel inventory is running so far in 2Q. And do you think you'll be able to sell some to other refiners again?

Speaker #8: Thank you.

Horacio Marín: Okay. Thank you. Yes, because it's sustainable because we made the in YPF, the people of downstream make excellent efficiency without big investments. That is sustainable. The only day when there is quarter that you have to make a stoppage, for sure it will be lower. But if not, I would say that could be that number including more, okay? We are, because all the transformation that people from upstream made in YPF in the last two years, you see that YPF used to import, and now it's not importing anymore. Also, we sell to the domestic market when the other make the stoppage. Also, we export for the neighborhood countries and also we can sell diesel for electric generation.

Speaker #4: Okay. Thank you. Yes. Because it's sustainable, because we made—in YPF—the people of downstream made excellent, excellent efficiency without big investments. And so, that is sustainable.

Speaker #4: The only when there is quarter that you have to make stoppage for sure it will be lower. But if not I would say there could be that number including more.

Speaker #4: Okay? We are because all the transformation that people from upstream made in YPF in the last two years you see that YPF used to import and now it's not imported anymore.

Speaker #4: And also we sell to the domestic market when the other make the stoppage. And also we export for the neighborhood countries. And also we can sell diesel for electric generation.

Speaker #4: And so there is big change in YPF. It's a good news for the shareholders.

Horacio Marín: There is big change in YPF, it's good news for the shareholders.

Speaker #8: Thank you.

George Gasztowtt: Thank you.

Speaker #1: Your next question comes from the line of Claudia Riverra with Santander. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Claudia Rivera with Santander. Your line is now open. Please go ahead.

Claudia Rivera: Hi. Good morning, Horacio team, and happy birthday to both. My question is, given Brent prices have remained above $100, how should we think about downstream margin dynamics in Q2? Do you expect to pass through higher crude costs into domestic bond prices? What will be the timing and pass-through dynamics look like?

Speaker #9: Hi, good morning RSN team, and happy birthday to both. My question is: given brand prices have remained above $100, how should we think about downstream margin dynamics in the second quarter?

Speaker #9: Do you expect to pass through higher trade costs into domestic pump prices? And what will be the timing and pass-through dynamics look like?

Speaker #4: Okay. If the brand has remained above $100 you are saying something is a sensitivity we are talking. Okay? The margin of dynamic or the margin of downstream will be more than 3 dollars per barrel.

Horacio Marín: If the Brent has remained above $100, you are saying some sensitivity we are talking about, the margin of dynamic or the margin of down $3 will be more than $3 per barrel. This excellent margin, okay? I answer your question, okay, there. I don't know if it will be 100, 90, 80. I have no idea when the conflict or the almost it's going to stretch. On its right, it will be open, okay? We have a real policy of import, of international prices, we are going to pass on. The question why we didn't pass through because we saw the demand going very. It was a question of demand and supply.

Speaker #4: What is excellent margin. Okay? I answered your question. Okay? There. I don't know what it will be 190, 80. I have no idea when the conflict or the almost it's going to stretch it's right on its right it will be open.

Speaker #4: Okay? We have a real policy of international prices. So we are going to pass through the question—why we didn't pass through—because we saw the demand going very, it was a question of demand as supply.

Horacio Marín: There was reducing the demand so fast in the last 2 weeks there for that to improve was worse for YPF and for the shareholder than to make like a buffer. After the buffer, we see also instead of the demand going down, instead of going up. Why? People were without uncertainties, because when you have 1 week that it was 90, the other 100, 110, 112, it was like it make uncertainty for the consumers. At the end, we are going to pass through the dynamics, and also we have, I would say an account that we see how much we had to take out the dynamics of the conflict is 1. Okay?

Speaker #4: There was reducing the demand so fast in the last two weeks that for us to improve was worse for YPF and for the shareholder than to make like a buffer and after the buffer we see also the instead the demand going down instead of going up by because people were without uncertainties because when you have one week that it was 90 the other 100, 110, 112 it was like it make uncertainty for the consumers.

Speaker #4: But at the end we are going to pass through the dynamics and also we have I would say account that we see how much we had to take out the dynamics of the conflict is one.

Speaker #4: Okay? But it's our policy and it will not be a problem. I don't see a problem to pass through.

Horacio Marín: It's our policy and it will not be a problem. I don't see a problem to pass it on.

Claudia Rivera: Perfect. Thank you very much.

Speaker #1: Perfect. Thank you very much. Your next question comes from the line of Matthias Cattaruzzi with ADCAP Securities. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Matias Cattaruzzi with AdCap Securities. Your line is now open. Please go ahead.

Matias Cattaruzzi: Hi, Horacio, Pedro, and Max. Happy birthday to you both. I have a few questions. First, a simple one, what's gonna happen after the fuel freeze after 15 May? In your 2026 guidance of CapEx, you guided to a neutral to slightly negative free cash flow at a Brent of $63 to $65, now we are well over that range. Is your CapEx gonna change? You got the infrastructure constraints. We are seeing a really low CapEx in Q1. Can you guide us through what's gonna be 2026, what's gonna be 2027? I got an additional question about the acquired capacity at VMOS.

Speaker #10: Hi Horacio Pedro and Max. Happy birthday to you both. I have a few questions. First and a simple one. What's going to happen after the fuel freeze after May 15th?

Speaker #10: Then in your guide 2026 guidance of CAPEX you guided to a neutral to slightly negative free cash flow at the brent of 63, 65 dollars.

Speaker #10: And now we are well over that range. Is your CAPEX going to change? You’ve got the infrastructure constraints. We are seeing a really low CAPEX in the first quarter.

Speaker #10: Can you guide us through what's going to be 2026? And then what's going to be 2027? And then I got an additional question. About the acquired capacity at BEMOS.

Matias Cattaruzzi: Can you tell us, if it's going to affect the production curve in 2026, if you're going to expect a higher ramp, in the beginning and middle of the year?

Speaker #10: Can you tell us what's if it's going to affect the production curve in 2026 if you're going to expect a higher ramp in the beginning and middle of the year?

Speaker #4: Okay. First question. Beginning of next week, we are going to have a big meeting in YPF between us, and we will decide what will happen after May 15th.

Horacio Marín: First question. Beginning of next week, we are going to have a big meeting in YPF between us, and we will decide what will happen after 15 May, and we are going to communicate what the decision that we are going to make. Okay? I think I answered you what happen after 15 May in the previous question that they asked me. About the 2026 guidance of the CapEx or for sure, if the price is higher, you have to stay, as we say in New York, let's see, I think it was last year that the, I would say simple sensitivity is $80 million per dollar that it will increase in EBITDA. You have to have rough numbers if you want.

Speaker #4: And we are going to communicate what the decision that we are going to make. Okay? I think I answered you what happened after May 15th.

Speaker #4: The previous question that they asked me. About the 2026 guidance of the CAPEX or for sure if the price is higher you have to expect as we say in New York let's say I think it was last year that the I would say simply sensitivities 80 million per dollar that they will increase in EBITDA you have to have rough numbers if you want.

Horacio Marín: We cannot accelerate this year because we have bottlenecks, and we will reach, I think we are going to reach a bottleneck of the evacuation between October and November. That's why we cannot accelerate because if we accelerated, we improve the capital in the ground, but not taking out. Next year, I think I said before that we are going to accelerate, so we can have in 2027, I think we are going to have a better production than we thought. That I cannot. I prefer to show you in New York in April, and you will see that because it will have more, less necessity of CapEx, and we have the evacuation out, and you have more money in, more cash of YPF.

Speaker #4: We cannot accelerate this year because we have bottlenecks and we will reach I think we are going to reach a bottleneck of the evacuation between October and November.

Speaker #4: And that's why we cannot accelerate because it will accelerate it's that we improve the capital in the ground but not taking out. But next year and I think I say before that we are going to accelerate so we can have in 2027 I think we are going to have a better production that we thought but that I cannot I prefer to show you in New York in April and you will see that because we have more less necessity of CAPEX and we have the evacuation out and you have more money in more cash of YPF we are going to put that for improve the production and make more value for the shareholders and to reach the plateau before.

Horacio Marín: We are going to put that for improve the production and make more value for the, for the shareholders and to reach the plateau before.

Speaker #10: Okay. Thank you so much. Happy birthday.

Matias Cattaruzzi: Okay. Thank you so much. Happy birthday.

Speaker #1: Your next question comes from the line of Tasso Vasconcelos with UBS. Your line is now open. Please go ahead.

Operator: Your next question comes from the line of Tasso Vasconcellos with UBS. Your line is now open. Please go ahead.

Tasso Vasconcellos: Hi, Horacio, Pedro, Max. Horacio, I wanted to move back here on your how you're thinking in terms of capital allocation for YPF. Get some additional color from your side. You had a lot of success in the 4x4 Plan that you released when you first assumed the company. You had a lot of success in focusing the core assets and the operations of the core assets, divesting from some other assets. Maybe if you can make a summary on everything that you accomplished since you assumed the company. Of course, looking forward, what do you still view as adjustments required for YPF? Where would you want to invest more, especially in the scenario of a higher Brent and YPF making more money? Of course, if anticipating dividends at some point could also be a possibility.

Speaker #10: Hi Horacio, Pedro, Max. Horacio, I wanted to move back here on your how you're thinking in terms of capital allocation for YPF. Get some additional color from your side.

Speaker #10: You had a lot of success in the 4x4 plan that you released when you first submitted the company. You had a lot of success in focusing the core assets and the operations of the core assets divesting from some other assets.

Speaker #10: So maybe if you can make a summary on everything that you accomplished since you assumed the company and of course looking forward what do you still view as adjustments required for YPF?

Speaker #10: Where would you want to invest more especially in this scenario of higher brent and YPF making more money? And of course if anticipating dividends at some point could also be a possibility.

Speaker #10: Anyways I think just to get some additional call on how you're thinking about capital allocation as a whole for YPF. That's the question. Thank you.

Tasso Vasconcellos: Anyways, I can just get some additional color on how you're thinking about capital allocation as a whole for YPF. That's the question. Thank you.

Speaker #4: Thank you for your question. The capital allocation is always what we call we have I tell you something that is more our cooking that is we have a week that we call CAPEX week.

Horacio Marín: Thank you for your question. The capital allocation is always what we have. I tell you something that is more our cooking. That is, we have a week, we call CapEx week, and there we discuss all the projects in detail, all the economics, and we allocate what is more economical to the less economical, okay? That is the way that we always allocate. If you allocate that in the upstream, unconventional is first. At the beginning, when I arrived at YPF, say I am unconventional. I know because I love unconventional and not the conventional, because when it's all are very young, it's better the conventional than unconventional. In Argentina, the conventional is old. We allocate all in unconventional, and it's our, my goal, personal goal, and the company goal to be unconventional integrate company.

Speaker #4: And there we discuss all the process in detail all the economics and we allocate what is more economical to the less economical. Okay? That's the way that we all we allocate.

Speaker #4: If you allocate that in the afternoon, and conventional is first, and at the beginning when I arrived, YPF says I am a conventional guy, not because I love a conventional, and not the conventional because when it’s all—they are very young—it’s better, the conventional, than conventional.

Speaker #4: But in Argentina the conventional is old. So we allocate all in a conventional and it's our MIGO personal goal and the company goal to be a conventional inter-rate company.

Horacio Marín: Really, we are very close to go there. We are this, we are negotiating going out from the last one. The allocation in upstream is going to be clear that it will be unconventional. Always, is a portfolio in our portfolio that you have to decide the economics and between the one that we are with partners and the 100. What is a good news for us is the big, big stake that we have in 100% are wonderful. They are very profitable, and we are located more than we are there. It's a new way of YPF. It's not that we need If the partners don't want, we can increase the production very fast. This is our idea, okay?

Speaker #4: Really, we are very close to go there. We are—during, we are negotiating going out from the last one, and so the allocation in afternoon, you have to be clear that it will be unconventional, and always it's a portfolio—in our portfolio that you have prioritized the economics and between the one that we are with partners and the one handed.

Speaker #4: What is the good news for us is that the big big stake that we have in one handed percent are wonderful. They are very profitable and we allocate the more than we are there.

Speaker #4: So it's a new way of YPF. So it's not that we need—the partners don't want—we can increase the production very fast, very fast, and this is our idea.

Speaker #4: Okay? If the price that it seems now that it will be the this year next year and so in a better level and higher level for sure YPF we are making more revenues and we have better results.

Horacio Marín: If the price that is same now, that it will be this year, next year, in a better level, in higher level, for sure our team, we are making more revenues, and we will have better results. That result, it will be allocated for increasing the production. It will be better for the LNG. We are very, I would say, positive of the result of the 4x4 Plan. I expect that you are the same that us, even if by far, you have to say yes, okay? You are the same as us in the success of the 4x4 Plan.

Speaker #4: And that result, it will be allocated for increasing the production. It will be better for the LNG, and so we are very, I would say, positive of the result that the 4x4. I expect that you are the same as us, even if my partners, so you have to say yes.

Speaker #4: Okay? But you are the same as us in the success of the 4x4. Really I tell you I see now every month when I see all the result of the company in detail that this I would say this engine that is YPF is working very very hard and making value in all all the business that we have.

Horacio Marín: Really, I tell you, I see now every month when I see all the results of the company in detail that this, I will say, this engine that is YPF is working very, very hard and making value in all the business that we have.

Speaker #1: We have reached the end.

Operator: We have reached the end.

Speaker #10: Okay. Thank you Horacio.

Tasso Vasconcellos: Very clear. Thank you, Horacio.

Speaker #1: We have reached the end of the Q&A session. I will now turn the call back to Horacio Marín for closing remarks.

Operator: We have reached the end of the Q&A session. I will now turn the call back to Horacio Marín for closing remarks.

Speaker #4: Okay. Thank you very much for all the questions. Thank you Marín to be in the in that call. I say for all the guys that we work here that I'm very proud to work with YPF.

Horacio Marín: Okay. Thank you very much for all the questions. Thank you very much to be in the, in that call. I say for all the guys that we work here, that I'm very proud to work with YPF. We are working hard, but with passion. That is the reason. Company with passion has extraordinary results. That what YPF is doing now. I try always to say at the end that in the memory of my grandmother, I breathe YPF, I sweat YPF, I think YPF, I love YPF. Thank you very much.

Speaker #4: We are working hard, but with passion. That is the difference. A company with passion has a towering result. That’s what YPF is doing now. So I try always to say at the end that, in the memory of my grandmother: I breathe YPF, I breathe YPF, I sweat YPF, I think YPF, I love YPF.

Speaker #4: Thank you very much.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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