YPF Delivers Record $2.8 Billion EBITDA as Shale Transformation Accelerates
Argentina's state oil company posted its strongest quarterly performance in history, driven by Vaca Muerta production growth and exceptional refining margins.
Historic Profitability Marks Shale Transition
YPF Sociedad Anónima reported unprecedented second-quarter results, with adjusted EBITDA reaching $2.8 billion, "the best in the company's history" and surpassing even the previous record set in Q3 2014 (earnings call, 2026-08-11). The performance drove EBITDA margin to 43%, its highest level in two decades, while net income of $1.2 billion represented the company's second-best quarterly result ever.
Revenues climbed to $6.6 billion, up 33% sequentially and 42% year-over-year, supported by stronger international prices, higher refinery utilization, and seasonal demand for diesel and natural gas (earnings call, 2026-08-11).
The first half of 2026 alone generated nearly $4.4 billion in adjusted EBITDA, already exceeding YPF's full-year 2023 performance, according to Chairman and CEO Horacio Marin.
Shale Oil Reaches 80% of Production Mix
YPF's transformation into a "pure shale player" accelerated during the quarter, with unconventional oil production reaching 213,000 barrels per day, representing 80% of total oil output (earnings call, 2026-08-11). Production increased 4% sequentially and 47% year-over-year as the company scaled operations in the Vaca Muerta formation.
The company currently operates rigs in the Vaca Muerta oil window, "significantly higher than the 12 rigs by December last year," with plans to reach 21 rigs by early 2027 (earnings call, 2026-08-11). Excluding conventional assets under divestment, approximately 95% of oil production now comes from shale operations.
$25 Billion Loma La Lata Project Targets Export Platform
In May, YPF submitted a RIGI (Large Investment Incentive Regime) application for the Loma La Lata oil project, wholly owned by the company. The initiative represents "the largest oil export program in Argentina history," requiring cumulative investment of $25 billion over 15 years (earnings call, 2026-08-11).
The project targets a production plateau of approximately 240,000 barrels per day beyond 2032, with output 100% dedicated to export markets. YPF estimates the venture will generate more than $100 billion in oil export revenue over its lifetime, alongside approximately 10 million cubic meters per day of gas for the domestic market (earnings call, 2026-08-11).
Strong Cash Generation Drives Deleveraging
Free cash flow reached $824 million, the third-highest in company history, despite capital expenditures of over $1.3 billion allocated primarily to unconventional operations (earnings call, 2026-08-11). Cash liquidity climbed to nearly $2.5 billion by quarter-end, marking the highest level in YPF's history.
Net leverage declined to 1.1x, its lowest point in more than a decade and "nearly half the peak level reported in the third quarter of last year," according to Finance Vice President Pedro Kearney (earnings call, 2026-08-11).
Portfolio Restructuring Continues
YPF signed an agreement to divest two conventional asset clusters in Mendoza province for a combined $405 million, subject to final approval. The company also obtained board approval for the sale of a 70% equity stake in Metrogas, furthering its strategic focus on unconventional resources (earnings call, 2026-08-11).
Downstream operations delivered exceptional performance, with refinery processing reaching 351,000 barrels per day, "the highest level of refinery utilization ever achieved" (earnings call, 2026-08-11). This enabled record surplus production of gasoline and middle distillates at 43,000 cubic meters per day.
This article was generated by MarginX from the earnings call on 2026-08-11. It is not investment advice.