YPF Sociedad Anonima

Good morning, ladies and gentlemen. This is Margarita Chun, YPF IR Manager. Thank you for joining us today in our second quarter 2025 Earnings Goal. Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marin, our CFO, Mr. Federico Barretta-Veña, and our Strategy, New Businesses, and Controlling VP, Mr. Maximiliano Weston. During the presentation, we will go through the main aspects and events that explain the quarter results And then we will open the floor for Q&A session together with our management. Before we begin, please consider our cautionary statement on slide two. Our remarks today and answers to your questions may include forward-looking statements, which are subject to risk and uncertainties that could cause actual results to be materially different from the expectations contemplated by 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 VTA. I will now turn the call over to Horacio. Please go ahead.

Thank you, Margarita, and good morning, everyone. Despite international price volatility, we deliver not only solid results in Q2, but also significant progress in our 4x4 plan by achieving key remarkable milestones. This quarter's volatility actually demonstrated the right direction and implicit value of our 4x4 plan outlined since December 23. During this quarter, the international alloy market experienced significant volatility with low prices. As a result, our realization price of oil decreased by 12% sequentially. Our shale oil production remained largely unchanged even after selling our 49% stake in Aguadal-Chanar, which decreased its contribution by 6,000 barrels a day. Moreover, during July, we have just achieved record high production of roughly 165,000 barrels a day. In fact, On Tuesday, the daily production was 163.8 thousand barrels a day. Despite the challenging context, our continued delivery on our 4x4 plan substantially mitigated this negative price environment. During this quarter, we reached key milestones in the investing program of mature fields, particularly in Santa Cruz. As a material result of this project, we can show a 24-interannual reduction in our lifting costs. Another key milestone was achieved financial closing at BEMOS. After 18 months of hard work and dedication, today I would like to share with you the remarkable progress we achieved in our 4x4 plan. delivering important results across all our four strategic pillars, especially since our last call in May. As we have always said, our first pillar is to focus on our most profitable business, Oil Vaca Muerta. We have continued to expand our shale oil operations and made significant progress in advancing mistrain infrastructure projects to support future growth. YPF, as the largest shale oil producer in Argentina, continues to deliver solid performance. Back in November 23, YPF shale production was 110,000 barrels per day. By last month, production has increased to roughly 155,000 barrels per day. even after divestment 6,000 bodies per day in a while, as I mentioned before. We project further growth, aiming to close the year at around 190,000 bodies per day. This will represent an outstanding organic production ramp-up of over 70% in just 25 months. Moreover, in the last 18 months since 2024, our oil export revenue reached $1.5 billion. In terms of volume, this quarter we exported nearly 44,000 barrels per day. Moving to midstream expansion since day one, we were convinced that BEMOS represented the key and the best infrastructure vehicle to ramp up YPS production from 26 and beyond, and also for all the industry. This new pipeline completely unlocks YPS growth plan to achieve roughly 250,000 barrels per day by the end of 2026 and allowing to reach half a million barrels per day by 2030. To this end, YPS leading record in the development of this project in collaboration with the rest of the Shell industry. First, we align commitment that allow starting construction on January 25, Then, supported by a solid contractor structure, the project recently secured a syndicated loan for $2 billion to finance the construction of Demos. Besides economic benefits for YPF and the entire Shell industry, this transaction reopened the international project finance market for Argentina. It stands as the largest commercial loan for an infrastructure project in the country. It also one of the top five largest financing in Latin American oil and gas sector so far. The overall construction progress is 23% as you like, with welding works completed for around 120 kilometers. Additionally, assemblies of floor plates for the tanks have begun at both Allen and Punta Colorado export terminal. Let me now talk on pillar number two that focuses on active portfolio management. From the very beginning, we committed to create value for YPS through a dynamic portfolio management approach. Over the past 15 months, after receiving initial approval from our board, we already completed the transfer of 28 out of 30 mature blocks. identified in the initial plan called Andes. Moreover, we have successfully reverted 11 mature blocks to the provinces, one in Chubut and the others in Santa Cruz, the most challenging blocks in terms of complexity, achieving another key milestone in our 4x4 plan. During the past 18 months since 2024, The mature blocks that we already left produced roughly 61,000 barrels of oil per day and 3.2 million cubic meters of gas per day. However, it's worth noting that they were very mature and carried high lifting costs, around $42 per barrel. As a result, during this 18 months, the overall negative impact on our free cash flow was around $840 million. This amount includes the operational cash flow and the exit cash flow. Additionally, we have successfully divested our subsidies in Brazil and Chile, besides closing unprofitable chemical plants. All this milestone was critical to our 4x4 plan, as it simplifies our portfolio and enables us to concentrate our effort and the majority of our capital on our most profitable asset, Vaca Muerta. Regarding this exit program from mature fields, I want to highlight the constructive agenda that we were able to develop in collaboration with governors and unions. This represents an unprecedented level of cooperation among key stakeholders. I'm confident that with the same spirit, we will reach an agreement in ongoing negotiation with Tierra del Fuego during Q3. As a result of all these efforts, we can report today a remarkable reduction in leased costs of 24% interannually. With the decision to make YPF a very profitable company, we have recently decided to expand the scope of assets to be disvested to become next year a pure and conventional abstain company. We have identified the other 16 performing conventional blocks. We will open these assets for development with the superior objective to continue upgrading our portfolio and making YPF much more profitable and more resilient to low crude prices. Completely aligned with the same portfolio rationale, this week we execute a bidding agreement to acquire prime tier wine shell Acris from Total for $500 million, subject to certain conditions. This acquisition follows the same value dynamics of our active portfolio management, disvesting non-core, less profitable assets while securing long-term productive value for the company. In this case, La Escalonada-Mencon-La Ceniza blocks are located in the most promising area in the oil and wet gas window of North Vaca Muerta, close to Bajo del Choy-Quilambernada blocks that Plus Petrol has recently acquired from Exxon. La Escalonada is a first-class crude oil producing block that will generate synergy with the development of Vaca Muerta North Hub, Bencon de la Ceniza has strategic potential for the development of wet gas and the Argentina LNG project. We expect to assume the operating role of these two blocks, holding a 45% working interest, partnering with Shell and Cassie Petroleum. Together, these blocks at 100% encompass nearly 115,000 acres of Vaca Muerta, with an outstanding well inventory of over 500 wells. Wells drilled in the volatiloid window during the early stage of development demonstrate quite promising productivity levels that underscore their long-term potential. Our expectation is to accelerate the development plan to fast track the monetization of this production. This new asset increases our future oil production curve, extend the duration of our plateau, and reinforce our leading position in backup water reserves. Furthermore, when we complete the investment of our conventional asset, YPF will become a pure integrated shale player with superior size, synergy, and economical scale, as I mentioned before. Now, pillar number three focuses on maximizing our upstream and downstream efficiencies. Since our last call in May, we have inaugurated three real-time intelligence centers. Two of them are in La Plata and Lujan de Cuyo Refinery, respectively. The third one is based in our headquarters to support our downstream commercialization business. The latter one has been key for the implementation of micro-pricing and self-fuel projects. This real-time is unique in Latin America. We can follow the demand, but each gas stations with 24 hours. Besides, our all products are convenience store. We are changing the way of delivering fuel and products in the country. It's really a disruptive marketing change. We have an impressive positive image from the people in the polls. This 100% technology-driven and in-house management project was launched last month to seek a win-win strategy. Micropricing allows our gas station clients to access a different price of fuel at night from midnight to 6 a.m. CellFuel provides these clients with greater savings if the payment is made through the YPF application in certain gas stations. YPF has pioneered this method of pricing in Argentina with the objective of reducing our fixed costs and growing our nighttime sales and generate more profit for YPF. The results so far are impressive. In the first month since launching this project, our sales volume at the gas station 9 grew roughly 30% compared to Q2 this year. On the industrial efficiency side, we have reduced significantly the duration of program maintenance. Especially in La Plata Refinery, we complete the maintenance between 40 to 60% faster than historical records. Regarding Toyota well project, we have been able to reduce the construction cycle for a part of four wells for roughly 230 days, we represent a reduction of around 80 days compared to 2023 levels. The same methodology and focus are in the Aftin Real-Time Intelligence Center for drilling and completion that start to deliver results, as you will see in the next slides. We are the largest operator in Vaca Muerta working upstream Real-Time Intelligence Center 24-7 remotely from YPS headquarters. As a record, one of the biggest service company last week, it was the first time that delivered a work from remote all around the world. In the third week of August, we are opening the Afton Real-Time Intelligence Center for operation and maintenance. pooling and logistics in Neuquén to improve our efficiency and coordination in all the operations of Acamorta. This achievement reflects our integrated approach, working closely with our strategy suppliers at every stage of the well production process. Additionally, we enhance our operational dashboard to enable real-time anomaly detection and implement corrective action plans rapidly. All of these initiatives represent a critical to cultural change for YPF in time management and production processes. Finally, pillar number four is Argentina Energy Project, and since our last call in May, We signed the Heads of Agreement with E&I for the consolidation for free for 12 million tons per year, expecting the approval of final investment decision in Q1-26. In the same direction, we are working with Shell for Phase 2 in order to speed up the FID and obtain synergy between both projects in the Fed Structure. Moreover, this week our SPV CESA obtained the FID approval for the 20-year railroad charter agreement for its second floating LNG named Mark II. This vessel has a capacity of 3.5 million tons per year, as expected to be operational in 2028. We are also working on the project RIGI, as well as environmental and export permits for Mark II. consider the first vessel Healy, the total capacity amount to roughly 6 million tons per year. Let me mention that this second vessel allowed the contraction of a 100% dedicated pipeline from Vaca Muerta to the San Matias Gulf in the province of Rio Negro, available during the whole year, instead of the original plan of using existing pipeline idle capacity during off-peak season, operating only hilly. Now, moving on to Q2 results, revenue remained stable sequentially, reaching over $4.6 billion. We record high seasonal size on natural gas and fuels, and increased import volume of crude oil and agro products. However, the volatility international price negative impact our refined product prices, especially local fuels. Additionally, Q2 was affected by lower seasonal gasoline demand. Interannually, despite roughly 20% drop in Brent, revenues only declined by 6%. The drop in Brent prices were mitigated by operational efficiencies. increase of Shell export and a recovery in local fuel demand. Achat EBITDA was $1.12 billion in Q2, decreasing 10% sequentially. It was mainly explained by brain contraction impact in refined product prices, exit from mature field, and value of inventories. On the positive side, this negative effects were softened with lower lifting costs on the back of less exposure to mature fields. Interannually, adjuvant EBITDA declined by 7%, also reflecting BREN volatility, but it was partially mitigated by the significant ramp up in shale oil production and even better conventional lifting costs. Also, bear in mind that Q2 last year was affected by the strange weather conditions experienced in Patagonia. At this point, I would like to note that excluding the negative contribution from Macho Phil, our proxy adjust, EBITDA could have been $1.25 billion. Looking at the bottom line, Q2 net profit was $58 million. compared to a loss of $10 million in the previous quarter. This turnaround was mainly driven by one-off items related to mature fields in Q1. In third annually, net profit declined sharply, explaining by higher depreciation from shale activity expansion and lower gains from financial insecurities in 2024. Also, this quarter included an income tax charge due to higher future tax payable, while Q2-24 was the opposite. Much of it also impacted on the net results. Excluding them, our profit net result would have been a profit of $254 million. In the terms of investment, in Q2, we deployed $1.16 billion, remaining similar sequentially and interannually. It's very important to remark that 71% of the total was now directly allocated to unconventional assets. In Q2, we record a negative free cash flow of $355 million. It was mainly affected by $315 million of negative impact from mature fields. Moreover, we had negative working capital due to peak winter sales on natural gas and our subsidies paid income tax. However, the negative impact was sustained by dividend collection from affiliates. As a result, our net debt rose to $8.8 billion, reaching a net labor ratio of 1.9 times as expected while depressing mature fields. Please take into account our acquisition of this year and also in the rest of this year we are selling, performing conventional assets and Metro Gas after extension of the concession. Now I will turn the call over to Max.

Thank you Horacio and hello to everyone. Focusing on the upstream segment, the second quarter total hydrocarbon production was 546,000 barrels of oil equivalent per day. It remained stable both sequentially and inter-annually. Shale production keeps driving the growth, now representing an impressive 62% of the total output. It nearly offset the divestment of mature fields and to a minor extent, the lower working interest at Aguadera del Chañar. In the case of mature fields, hydrocarbon production decreased by 26% versus the previous quarter as we kept divesting them. It recorded 72,000 barrels of oil equivalent per day, representing only 13% of the second quarter total production. Crude oil production amounted to 248,000 barrels per day in the second quarter, decreasing 8% sequentially. It was primarily driven by lower mature fields and, to a lesser extent, Aguada del Chañar, as explained before. Interannually, while total crude oil production remained stable, The remarkable 28% expansion in shale output fully offset the decrease in exposure to mature fields. Let me mention that last month's shale oil production was approximately 165,000 barrels per day. We expect continuing significant growth in the second half of the year to achieve our 2025 annual target of over 165,000 barrels per day. Oil exports in the second quarter totaled 44,000 barrels per day, increasing by 20% sequentially. The main growth came from redirecting Escalante Heavy Oil to the foreign market as La Plata Refinery was under program maintenance. Interannually, it grew by 43%, also boosted by shale expansions. Natural gas production increased by 6% in the second quarter sequentially to 40 million cubic meters per day, primarily supported by higher seasonal demand. NGL production was 48,000 bars per day, a modest growth of 2% sequentially driven by high associated gas output in certain shale oil blocks. Total lifting cost was $12.3 per barrel of oil equivalent. This is a remarkable sequential reduction of 19%, reflecting further divestment of mature fields. Excluding mature fields, our proxy lifting cost for the second quarter would have been roughly $7.5 per barrel of oil equivalent. Zooming into our core hub blocks, lifting cost at 100% of working interest was $4.9 per barrel of oil equivalent. It grew by 7% sequentially due to higher pooling and maintenance costs. Regarding prices in the upstream segment, crude oil price was $59.5 per barrel, 12% lower sequentially in line with Brent volatility. Natural gas price was $4.1 per million BTU, growing by 38% sequentially, primarily influenced by the peak season plant gas price. Now, let me walk you through the performance of our shale activities. In the second quarter, we drilled 54 horizontal oil wells on a gross basis, mostly in operated blocks while maintaining our net working interest of 55%. In this sense, in the first half of the year, we drilled 105 horizontal oil wells on a gross basis. This is in line with our estimate of 205 wells for the year. In terms of completion and tidying of wells, we accelerated our activity. In the second quarter, we completed 70 horizontal wells and tied in 76 on a gross basis. They represented an increase of 35% and 69%, respectively, when compared to the second quarter last year. Shale oil production in the second quarter remained stable sequentially at 145,000 barrels per day. This is because the lower stake in Awal-Chanar block was fully compensated by the growing contribution from Langostura Sur 1 block. This block is 100% YPF located in the south hub with a shale oil production of 20,000 barrels per day in the second quarter. Considering the acceleration in our activities mentioned before and July's production level of 165,000 barrels per day, We are in good shape to reach the 2025 target of 165,000 barrels per day. In our unconventional core hub blocks, we achieved an average drilling speed of 331 meters per day. We remain optimistic about reaching our annual target of 360 meters per day. On the fracking side, we completed 259 stages per set per month in our unconventional operations, now very close to achieve our annual target of 260 stages per set per month. In our downstream segment, local few prices remain closely aligned with international parity, reflecting Brent volatility. As a result, local fuel prices measured in dollars were down 8% sequentially and 10% interannually. Also, second quarter local fuel prices were just 1% below improprieties. Fuel sales volume was 3.5 million cubic meters in the second quarter, growing by 4% sequentially, primarily explained by seasonality. Interannually, It increased by 3%, mostly driven by demand recovery. We also maintained our leading market share of 55%. In the second quarter, we processed 301,000 barrels per day, recording a 5% sequential contraction due to the maintenance stoppage at La Plata Refinery. This resulted in a refining utilization rate of almost 90%, as anticipated in our previous call. However, let me highlight that La Plata Refinery achieved a record high monthly processing level of the past 15 years, reaching nearly 201,000 barrels per day in April. Our refining and marketing margins declined by 17% sequentially. It was mostly due to lower prices combined with higher costs related to maintenance. However, it was mitigated by lower costs of oil on top of the OPEX efficiencies measures set before. Now, I will turn the call over to Fede.

Thank you, Max. Switching to the financials, let's start with the cash flow evolution. In Q2, we posted a negative free cash flow of $365 million mainly explained by the performance and closing agreements of mature fields. They recorded an adjusted VDI loss of $126 million and one-off cash flow loss for almost $190 million. Moreover, our subsidiaries, MetroGas and AESA, paid income tax while the regular debt service remained stable. On the other hand, The dividend collection from our affiliates, net of contributions and prepayments mostly upset the negative working capital. The latter was mainly explained by higher seasonal gas sales and payroll. In the same line, exports of agricultural products grew, boosted by reduced export duties. As a summary, for the first half of the year, we recorded a negative free cash flow of $1.3 billion, mainly explained by the impact of mature fields. These assets recorded an adjusted VDA loss of over $230 million and a negative one-off cash flow for around $420 million, totaling an aggregate of $650 million. In addition, year-to-date, we dispersed a net amount of roughly $210 million in M&A activity, mainly the acquisition of Sierra Chata. Therefore, during this six-month period, the proxy free cash flow excluding mature fields and M&A activity was $460 million negative, which is mostly explained by the regular interest payment for roughly 320 million and income tax payments from our subsidiaries for around $100 million. Now, in terms of Q2 financing, we ended with $8.8 billion of net debt representing a net leverage ratio of 1.9 times as anticipated during our investor day in April. During this quarter, we issued a $204 million link bond and $140 million hard dollar bond. The first one was with a 15-month tenor at 3.95% and the second one with a two-year tenor at 7%. We also secured around $190 million in another local financing. After the quarter, we also issued two local bonds, a $250 million MEP bond and a 167 million dollar cable bond. The first one was a two-year tenor and the second one a five-year tenor. Considering the recent acquisition of shale assets, we will complement the last issuance of dollar cable bond with cross-border acquisition financing. We anticipate this M&A will take our net leverage ratio to near two times during Q3. However, for the second half of the year, we expect that the increase in EBITDA driven by the ramp-up in production and the sale of our mature fields, combined with the divestment of additional non-mature fields that Eurasia anticipated, will lead to a normalized net leverage ratio of 1.8 times by year end. In terms of refinancing activities, during the rest of the year, we will be targeting debt maturities of nearly $800 million, 78% local and only 22% international. In this process, It is important to highlight that last month Moody's upgraded YPF's credit rating from CAA1 to V2 with a stable outlook, following the recent sovereign rating improvement. So, with this, we conclude our presentation and open the floor for questions.

At this time, I would like to remind everyone, in order to ask a question, press star, then the number 1 on your telephone keypad. If you would like to withdraw your question, press star 1 again. We'll pause for just a moment to compile the Q&A roster. Your first question comes from Tasso Vascomuelos with UBS.

Hi, Horacio Federico. Thanks for taking my question here. I would like, Horacio, to get a broader update on the development plans that you guys have planned ahead. The company just announced the acquisition of this block that you mentioned in the presentation. How does that impact the current production plan for the upcoming years? And how do you view the risks of an increased development plan amid an already accelerated plan that you guys have released before. And in parallel, Horacio, you recently said in an interview that you view the acceleration in the capex in Vaca Muerta. Can you also give some additional feedback on this view of yours? Those are my two questions here. Thank you.

Good morning. How are you, Tasso? Pretty well. Why we bought that is because this field is one of the best fields in the north of Vaca Muerta, where the tight wall is more, let's say, if you see from different consultants, the average production of URF walls for all whack-a-mart is in order one million. But if you see this area, it could be 1.5 or more. So that means that it's more profitable than anyone else. They are in the very, how you say, swift spot as in United States they want to say. what is the effect on nothing because it's good we are we are going to make more money for you and and so we are going to very very side with we shall for sure to go go very quickly because it will be one of the best fields as a rentability of argentina I don't know if I answered the question or you need more detail. Facility, we are... Oh, I think that's clear. It's clear? Okay, thank you.

I think that's clear. On this interview that you recently gave on this potential deceleration on baccalaureate activities as a whole,

Okay. Why I say that in an interview? Because they asked me in an interview, but it's no idea. It's not the problem for us to do that, so we have delivered what we say. In everything that we say in 4x4, we have delivered. I answer at that moment because there are people who say in the market of Argentina, they said there will be a reduction in in some number of rigs, but there's no YPS. So I think it's not, I would say, not logic and fear that I would say which company is reducing the rigs, okay?

Okay, that's clear. Thanks.

Our next question comes from Leonardo Marcondes with Bank of America.

Hi, everyone. Thank you for taking my question. I have two for my end. The first one is regarding the new project. Could you provide some color on your expectations in terms of timing for the conclusion of the whole phase one. And also, some more details on phase two on what is the total production to be directed from, what is the representativeness, and also your expectations in terms of conclusion for the second phase as well. My second question. as regarding the export tariffs for oil, right? We have recently seen the government reducing the export tariffs for other segments. So is there any expectation or discussion with the government to reduce the export tariffs for oil as well in the short term? Thank you.

Okay. Thanks for the question. let's go by number one under and this one in that one and this one we are finishing there is only one block that is in rio negro that is the expectation they have to be approved by the government of rio negro but this in the final phase and we are out totally out when there is something that i have to explain to for you that And we solve everything. But there were two provinces that is one is in Santa Cruz that we are out now because we are no more the owners of the blocks. We are operating for up to December at most. But we operate for the the province company, okay? Because they don't have the people to do that, okay? But we are out there. In Tierra del Fuego, that is very small, comparing with Santa Cruz, very, very small. We are, I think next week we can have, maybe we can have good news because we are in the last phases to agree with the province, okay? That is under one. What is UNDES2? UNDES2 is all the conventional blocks that we have left. Because remember, if you see some interviews, I say that the goal of all the people that work in YPF in the management is to be unconventional company next year. And so now we are delivering and to sell what you can call core conventional fields that they have good results for conventionals, okay? But why we do that? Because we can make more money as you realize that we have a good portfolio to invest in Vaca Muerta. this one that they have lifting cost that is more than $20 per barrel is no priority. I don't know how to say in English. Priority for us because of the profitability. And so there is all the others is in Chubut or in Mendoza. And in Salta, there are oil and gas. The production of all the assets is in the order of 50,000 barrels a day. Production of us is 2 million cubic meters per day. David, all of this is in the order of 8% at 2024, okay? And I think I answered the question or I left something. There is a second one. I work, I am a guy that work in a private company. I'm not a guy that regulate the Argentina tariff or export tariffs. I don't know. That you have to ask to the government.

Very, very clear. Just to follow up on the first question, regarding the second phase, in terms of production and representativeness, what should be the impact on the company?

I said maybe because my English maybe is not good, I know that, okay, but it doesn't matter. The production is 50,000 bars a day of all two weather. and the production of oil. The production of gas is 2 million cubic meters per day. The EBITDA for all that, all that, in figures of 2024 that you have is the order of 8%. It was more clear?

Yes. No, that's very clear. Thank you very much.

Thank you.

Your next question comes from Matthias Caparuzzi with ADCAP.

Hi. Good morning. I have a question about the CAPEX guidance. You gave up these 5.0 to 5.2 billion guidance with the rent of 72 dollars per barrel. Are you planning on changing that or adjusting it in the upcoming quarters?

Okay, no, we are not going to change. And also, if you have our figures, we are very, very close to what is our budget. We are going to continue.

Okay, thanks. And then, could you provide an update of the equity contributions to Vaca Morta for the upcoming two years?

Sorry? The equity? Yes. Sorry, sorry. I will pass to Federico . They are in charge of all the financing, okay?

Hi, Matias. Well, basically after the financial close of demos based on a total investment of 3.1 billion for the project and a 70% debt equity ratio, the total number for our share of the equity will be in the range of 230 million. out of which close to $75, $76 million have been already contributed up to June. So the remaining amount will be $155 million until COD. I would say that at least $50 million will come along 2025 and the rest mainly concentrated in 2026. That will be our disbursement of BIMOS equity.

Great. Thank you.

Your next question comes from Juan Munoz with BTG.

Hi. Thank you for the opportunity to take my question. The first one is a follow-up of the divesting of the conventional assets. So, regarding the proceeds that you expect with fully divesting those assets, if you could provide us an estimation of those proceeds. That's my first question. And the second one is regarding the recent acquisition of the shale assets from Total Energy. More a strategic question is, How are you seeing the competitive M&A landscaping in the recent months? So those are my two questions. Thank you.

First question, okay, thank you. I cannot answer. Imagine if I say what is our expectation? It will be in all the newspaper tomorrow. I cannot tell you that, okay? but we think that this is a good number because they are very good assets, but I cannot tell you exactly the number, okay? With all, all, all, all our selling, I really think that we are going to get much more than the total acquisition, okay? That is something that I think I can answer you, okay? I don't know if I can understand when you say competitive landscape. In which sense do you mean?

How are you seeing the competition regarding the current assets available for sale in Vaca Muerta right now?

Ah, okay, okay. But I think there are not a lot more. The companies that we have all the Now all the assets, they are all focused in the development, okay? It could be another company or it could be changed. It's normal, but we don't see that there are more during the, it seems that there's no more during this year at least, okay?

Okay, thanks.

Your next question comes from Bruno Montanari with Morgan Stanley.

Hi, good morning. Thanks for taking my questions. I have one follow-up and one question. Going back to the total acquisition, can you share with us maybe the timeline for when you would start to invest in the area and if there is any COPEX expectation? Just like a quick math, if it's a 500-well inventory, at around, say, $14 million or $15 million per well. Over the full development, it would be at least around $7.5 billion in CAPEX, so just wanted to know if that makes sense and what type of facilities you would potentially have to invest as well. And the second question is maybe to on the financial side. When we look at 2026, the company has some concentration of maturities, especially in domestic bonds. So when would you start to work on the refinancing of the 26 maturities? Thank you very much.

Okay. I will answer the first. Federico will answer the second. Okay? with with the total acquisition our partner is shell what is shell and the and the province company gmp um we are going to to have a meeting with them to the to decide the development okay because we are partners so i cannot say exactly there um the We are going to prioritize as much as we can these necessary facilities. And also, we are talking with companies that are near there, so you can get, if you know, to have synergy in the plants, in the CPF, okay? So there, everybody, we can reduce the investment for barrel. That is our idea, okay? The second question I pass to Federico. Okay.

Hey, Bruno. How are you? So looking for refinancing, first we need to work on, let's say, what we have for the rest of the year, our total, let's say, refinancing and acquisition finance now for $500 million. to be done in this. In other words, we have 1.1 billion of additional debt to be acquired until the end of the year. For the acquisition finance, we already issued a bond last month in the local market for $167 million, so more than 30% of the total acquisition is already funded. The rest we have acquisition finance committed. And the rest I think that will be mostly in the local market. Now, looking at the tower of financing that we have for 2026, we have $2.3 billion out of which more than 50% is local. refinancing and only 350 are international bonds keeping so we are going to be looking at the opportunities that we have in the local markets and in the international market starting I will say from the last few of this year and also entering into early beginning of next year, for example, as we did in January of this 2025. But bear in mind that more than 50% of the refinancing required is coming from local bonds. Very clear. Thank you very much. I'm sorry. And so far we have been very successful in refinancing locally together with the dollar cable bond that we issued last month we issued another dollar bond for 250 so in total it was 417 billion dollars that is the highest bond ever in the local market so there is a growing appetite for our paper in the local market

Cheers. Thank you.

You're welcome.

The company appreciates the questions, but since we are running out of time, we're going to accept one last question from Andres Cardona with Citigroup.

Hi. Good morning. Thanks for the opportunity. Here in the capital allocation team, I just wondered if you could provide any update about Assets that are for divestiture during the project. Maybe you can walk us through the rationale of the strategy of the discounts on the downstream business during nights. How it improves profitability on increased volumes and all. Just help us to understand the rationale.

One question because I understand .

Okay. Okay. Okay.

Thank you. Now I can answer. The first question, besides unders, I said in the media several times, There is also Metro Ajo, we will reach the extension that is expected to be this year. And after, we are going to be in the market. And also, there is another, one small refinery that we are trying to go out from there with the refinol. Even that refinery is not refining now, but it's closed. But we are... We are seeing how we can go out if we can, okay? And the second one, you didn't deny, is lovely what we are doing because you have to come here to see what we did. It's amazing. It's unique. I always say unique. In Spanish word, it's unique. I don't know. It's in someone else. We have E&I for everything, cars, everything that you want. And we see the demand. for each gas pump, you hear me, each gas pump around all Argentina. So we are doing the same as you were, okay? So it depends on demand, it depends on hours, and that's why we are planning to get more profit to YPS. Why at nine? Because after we decide and we start seeing something that nobody knows, In minute by minute, we realize at night, after midnight, there is a very low demand, which is logical, because it's logical. At night, people sleep. So we realize that there, our profitability of the gas station is negative. What is also logic? And you have to reduce that to make more, reduce your loss. because that is an essential service you cannot close because it's by law. And also it's logical that you have to be open at night. So what we did is to reduce and it's amazing the response of the people because our market share increased a lot and in one month we reduced the loss at half. And our incremental demand during the night is more than 30% around all Argentina, all Argentina. And also there is some provinces that they are more inelastic, and there are others that are much more elastic. And so we are playing with that. It's amazing. I'm not doing that job, but if I were 25, I would like to work there. Really, I would want to work more there than I was working in... in my life at the beginning of my career in reservoir. I tell you that it's amazing what they are doing, those guys.

Thank you, Horacio.

That concludes our Q&A session. I'll now turn the conference back over to Horacio Medranz for closing remarks.

Okay, thank you very much for all the questions. Really, we are proud of what we are doing in YPF. We are working very hard. In fact, I am today with infection, and I was coming all day long all the week with infection because I love doing YPF. I love what we are doing. I like what people are response in the profitability in all the company. And so thank you very much. We will see in three months. Well, not see. We will talk in three months, okay?

This concludes today's conference call. You may now disconnect.