YPF Sociedad Anonima

Hello, everyone. Thank you for joining us and welcome to YPF first quarter 2026 earnings presentation. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Margarita Chun, Investor Relations Manager. Margarita, please go ahead.

Good morning, ladies and gentlemen. This is Margarita Chun, YPF's IR Manager. Thank you for joining us today in our first quarter 2026 earnings call. Before we begin, please consider our cautionary statement on slide two. 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. 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 Weston. 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. I will now turn the call over to Horacio. Please go ahead.

thank you margarita a good morning everyone we are glad to report a robust beginning of the year across our key operational and financial metrics delivering our ambition and guidance for the year 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, 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 first quarter level in YPF's history, with an outstanding margin of 32%. 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 acting 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 month of the year. First, we set the new fracturing record during the first quarter, pumping continually for almost 110 hours and completing 52 stages in less than five days on a path at Loma Campana Field. Moreover, in April, we signed a strategic agreement with the service company Halliburton to incorporate four fracturing sets in Baca Muerta through a new electrical fracturing technology. This new contract transformed YPF into the first company outside the U.S. to develop this technology, improving efficiency by reducing the use of diesel engines, 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. Interannually, the lower investment is explained by the reduced exposure to conventional assets and the impact of one-off items booked 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 reached 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 strategic M&A proceeds of around $500 million. As a result, our net labor ratio improved to 1.57 times, down from 1.9 times in Q4-25. Let me recall that in Q3-25, we reached the peak of 2.1 times driven by the M&A of buying new back and market 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. 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. 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 commercial decision was to mitigate potential adverse effects 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. Moreover, in April, according to our preliminary figures, our mistrain and downstream segment reached a very healthy asset 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 microeconomical 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 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. Moreover, La Angostura Sur is now ranked as the number five Alcamuerta U-Bloc and it currently represents approximately 25% of YPF 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 costs of around $3 per barrel, and a development level of approximately 19%, there is substantial upside ahead, and an unconventional concession valid 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 captures the full value of this world-class asset. Langostura Sur is not just a production story, it's a proof of concept. It's demonstrated YPS' ability to rapidly develop back-and-forth at a scale with capital discipline and competitive cost. We are committed to replicating this model across our portfolio. Now, I turn the call to Pedro to analyze in detail our financial results.