YPF Sociedad Anonima

Hello, everyone, and welcome to YPF fourth quarter 2025 and full year 2025 earnings webcast presentation. Please note that this call is being recorded. After the prepared remarks, there will be a question and answer session. If you'd like to ask a question during that time, please press star followed by one on your telephone keypad. Thank you. I'd now like to hand the call over to Margarita Chun. YPF IR Manager, please go ahead.

Good morning, ladies and gentlemen. This is Margarita Chun, YPF IR Manager. Thank you for joining us today in our full year and fourth quarter 2025 earnings call. 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. Today's presentation will be conducted by our chairman and CEO, Mr. Horacio Marin, our finance VP, Mr. Pedro Cerny, and our strategy new businesses and controlling VP, Mr. Maximiliano Westen. During the presentation, we will go through the main aspects and events that shape the annual and Q4 results, as well as our updated guidance for 2026. 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.

Thank you, Margarita, and good morning. I would like to begin by highlighting that 2025 was a transformational and landmark year for the company. First, we deliver exceptional operating performance, consistently beating our own records across all business segments. Second, we almost completed our exit program from mature fields and secure Tier 1 shell blocks in Bagamorta. And third, we have taken significant steps forward in the development of the LNG project. Now, let me translate all this milestone into numbers. despite the volatile price environment, we achieved a record high EBITDA of $5 billion. This is the highest EBITDA in the last 10 years and stands at the third largest in the company's history, underscoring our resilience and operational discipline despite the 15% contraction in brand prices. This outstanding outcome was driven by record shale oil production growing by 42% in December 2025 on an interannual basis. We produced 204,000 barrels per day, exceeding by far the target of 190,000 barrels per day set at the beginning of the year. Progress on the BEAMOS project was also remarkable, with completion stage above 50% and the first oil delivery anticipated by early 2027. Moreover, the strategic combination of shale or ramp-up annexing from mature fields allowed us to reduce by 44% our lifting costs in Q4-25 compared to last year. Also, excluding the recent conventional investments such as Manantiales Bar and Tierra del Fuego blocks, our lifting costs would have been below $8 per BOE. This consolidates structural cost reduction, bringing us closer to becoming a pure share player. Also, in 2025, our backup mortal share reserves significantly expand by 32%. It now accounts for 88% of our total P1 reserves, and we increased the reserve replacement ratio to 3.2 times, and the reserve life to 9 years. Moreover, when looking at the full potential of our shell acreage in the long term, including the recent M&A trend, transaction, YPF holds a total well inventory in Vaca Muerta of $16,500 at a one-handed stake and $10,300 at art ownership. In parallel, we achieved strong operational efficiency in our mid-stream and downstream segments. We reached a record high refinery utilization rate of almost 100% in Q4, growing by 10% internally. This excellence, together with higher efficiency through disciplined cost management and proactive pricing policy, resulted in outstanding asset EBITDA margin of $22.6 per barrel. Furthermore, 2025 was a highly active year for YPF with respect to M&A. We executed a significant acquisition, securing three world-class blocks in Vaca Muerta, Sierra Chata, La Escanonada, and Mincon La Ceniza. More recently, in early 2026, we further reinforced our portfolio by swapping assets with Plus Petrol to fully own three wet gas blocks, key for the Argentine energy project. We also acquire part of Equinor asset in Vaca Muerta in partnership with Vista Energy. For YPF, Vista Energy represents far more than a strategic partner. It's a trusted ally with a shared determination to accelerate Vaca Muerta development. At the same time, we enhance our portfolio efficiency through targeted investments, including our 50% stake in Profertil and the conventional Manantiales-Bear field. These transactions are expected to generate nearly $1 billion in proceeds, for which around $750 million will be collected during December 25 and 26. This, in that sense, it fortifies our balance sheet and provides financial flexibility to focus on our core growth business. Turning to the Argentina LNG project, I am proud to highlight the strong commitment of our international founding partners, ENI and XRG. Together with YPS, we formalized this month the foundational structure of the project. Our fully integrated project is supported by one of the most competitive LNG break-even prices worldwide, positioning 1PS as a future leadership in the global LNG market. Finally, in terms of financing during 2025, we successfully raised $3.7 billion of new funding. This proves the company's ability to secure multiple financing sources to comply our ambition plan. As a result, the company closed the year with a net labor ratio of 1.9 times. All of these outstanding metrics demonstrate the successful execution of our 4x4 plan. We are committed to becoming a leading Shell integrating company and a significant Shell exporter in the coming years. Now, let me walk through the main aspect of a full year and Q4 2025 financial results. Annual revenues totalized $18.4 billion, reflecting a modest decline of 3% compared to the previous year. It was primarily driven by a significant 15% contraction in Brent. However, this impact was largely mitigated by higher shell production and record high processing levels. Similarly, Q4 revenues followed the same trend. decreasing 4% year on year, while Brent dropped by 15% in the same period. A just EBITDA increased by 8% in 2025, with EBITDA margin growing from 24% in 2024 to 27% in 2025, a clear evidence of our ability to drive value in a lower pricing environment. Q4 was outstanding as a just EBITDA was nearly $1.3 billion, reaching an impressive 53% in annual growth. This remarkable achievement was due to the outstanding performance of our shell operation, which contributed over 70% of our total production mix, coupled with successful execution of our exit program from conventional mature fields. As a result, we achieved a substantial reduction in our total upstream lifting costs. Moreover, our midstream and downstream segments also deliver record-breaking operational results, further reinforcing the strength of integration of our business model. A key factor behind this achievement has been the technological transformation that the company started in 2025. To achieve exceptional results, we must change traditional ways of working. In that sense, we inaugurated seven real-time intelligence centers to provide 24-7 support of both the afternoon and afternoon operations. By integrating AI with expertise of our technical team, this center optimized decision-making in afternoon, refining, and commercial processes. These impressive operational and financial results were achieved through the disciplined execution of our $4.5 billion investment plan, of which approximately 75% was strategically allocated to unconventional operations. In that regard, let me point out that CAPEX for 2025 ended around 10% below our original estimate, mostly driven by further operational improvements and lower costs in dollar terms. Finally, we achieved a strong financial performance in Q4 with free cash flow returning to positive territory at $261 million. This improvement was primarily driven by the partial proceeds from the sale of our 50% stake in Profile Team, collecting $200 million, complemented by our solid operational performance. As a result, our net labor ratio improved to 1.9 times down from 2.1 times record in Q3. Finally, I would like to reconfirm that the safety of our workers is our top priority in the development of the activities of the company. During 2025, we delivered substantial progress in our safety indicators. which is a frequency rate of 0.09 accidents per million hours worked. This was driven by our integrated safety culture model, along with preventive action, training, and risk control activities. Let me mention that YPF upholds world-class safety standards across all the operations. In the Athens segment, by the end of 2025, YPF of 0.15 per million hours work, significantly lower than the international benchmark of 0.24 in 2024 reported by the International Association of Oil and Gas Producers. In the downstream segment, YPF record an exceptional lost time insurance rate of 0.06 per million hours work in 2025. positioning us among the top performers in Salomon's refinery benchmark. I will learn to extend my sincere appreciation to all our employees for their strong commitment and steady dedication. And we reaffirm our strong commitment to continue improving our safety standards. Now, turn the call to Pedro to analyze in detail our 2025 financial results.