YPF Continues To Look Attractive But Remains High Risk
Mon, Mar. 7, 10:34 AM
- Profit on YPF's (YPF -2.4%) shale oil and gas production is "marginal" even with the price of locally produced crude set artificially high by Argentina's government, according to YPF CEO Miguel Galuccio.
- Nevertheless, the CEO says YPF will cut capex in 2016 and put rigs in standby mode, as the state-run producer, which invested a third less in 2015 than it had planned, will have to cut this year's capital budget further by as much as 25%, the CEO says.
- Galuccio says profit margins could improve as the company, which produces most of the shale from the Vaca Muerta formation in a joint venture with Chevron (CVX +2%), reduces exploration costs; he says YPF has cut the cost of drilling each horizontal well to $13M from $16M, and expects the figure to drop to $10M by the end of the year.
- Meanwhile, shale oil output from the vast but barely tapped Vaca Muerta has edged up to 50K boe/day, Galuccio says.
Dec. 15, 2015, 10:11 AM
- Argentina's state-run YPF (YPF +5.3%) oil company and the local unit of Dow Chemical (DOW -0.5%) plan to invest $400M-$500M to explore for shale gas, Dow Jones reports.
- The companies already are involved in a joint venture which is the leading shale gas project of its kind in Argentina, with production of ~750K cm/day; the aim would be to nearly triple that amount next year to ~2M cm/day.
- The deal would mark the first significant foreign investment in Argentina since newly elected Pres. Macri took office last week.
Oct. 26, 2015, 9:15 AM
Oct. 7, 2015, 2:59 PM
- YPF (YPF +7%) knows the fair value of Petrobras' (PBR +2.4%) local assets and would proceed with an acquisition only if the price meets its criteria, CFO Daniel Gonzalez says, declining to confirm or deny an article in the La Nacion newspaper that said YPF abandoned a bid after Petrobras Argentina (PZE -1.4%) asked it to raise its reported $900M offer for a 67% stake.
- YPF is concentrating on gas projects, Gonzalez says; PZE is focusing mostly on unconventional exploration and production and has started drilling at the vast Vaca Muerta shale gas and oil deposit, where YPF has sunk 400 wells.
Aug. 6, 2015, 12:44 PM
- YPF (YPF +1.7%) posted Q2 earnings that beat expectations, rising to 2.3B pesos ($250M) from 1.5B pesos in the year-ago quarter, as it increased production and sold crude at a premium to international prices.
- YPF has been somewhat cushioned from the collapse in oil prices because the government-controlled Argentina price is near $78/bbl, while the international Brent benchmark has dropped below $50.
- Q2 EBITDA jumped 13.3% Y/Y to 12.4B pesos, total sales rose 12% to 39.6B pesos, and downstream sales increased 6.6% to 35.3B pesos.
- YPF’s Q2 total hydrocarbon production rose 2.6% Y/Y, with natural gas output higher by 2.3% higher and crude oil increasing by 3.7%
Jul. 14, 2015, 11:43 AM
- Argentina oil spending is going up, and that's a major reason to buy oil and gas explorer YPF (YPF +5%), according to Credit Suisse, which has an Outperform rating on the stock and a $32 target price implying more than 23% upside from current levels.
- The firm says that from a wider country perspective, there is "a willingness to believe the country can undergo a meaningful de-risking, regain access to international markets, and start to move past its economic issues in a new presidential mandate," while from a company-specific perspective, YPF is uniquely positioned to benefit from all those themes, and is one of the most liquid investment vehicles for investors to get exposure to Argentina.
- In a Credit Suisse measure of return on invested capital, YPF’s upstream performance is ranked only behind peers OMV and Marathon Oil, and just ahead of Chevron; in the downstream, it is just behind Repsol and Chevron.
Jan. 15, 2015, 2:08 PM
- Argentina's YPF (YPF -2.1%) says a workers strike in Mendoza province may trigger fuel shortages in 13 provinces, including Buenos Aires and Cordoba.
- YPF says it is not dispatching trucks to half of the country, as the strike has lowered production by 6K bbl/day from its wells and its Lujan de Cuyo refinery, which produces 35% of the company’s total fuel sold in Argentina.
Dec. 10, 2014, 9:55 AM
- Malaysia's Petronas signs a $550M deal with Argentina’s YPF (YPF -3.2%) to develop the South American country’s vast shale resources, despite fears that falling oil prices could undermine the profitability of unconventional energy projects.
- The joint venture follows earlier deals amounting to $2.8B with Chevron to develop Argentina's huge Vaca Muerta shale formation; it will be similar in structure to the Chevron deal, with Petronas providing most of the financing for the initial three-year pilot project that aims to drill 35 wells which, if successful, could lead to another $10B in investments.
Oct. 9, 2014, 10:59 AM
- Argentina's YPF (YPF -2.7%) says it has not struck a natural gas production deal with Russia's Gazprom (OTCPK:OGZPY) despite an earlier statement from the industry ministry that it had.
- YPF says that while it has conducted meetings with Gazprom officials to analyze various possibilities for business and collaboration, neither a confidential deal nor agreement memorandum has been signed.
- The ministry had said it received assurances from Gazprom's Alexei Miller in a meeting this week that a "confidential" $1B agreement had been reached with YPF to explore for and produce gas in Argentina.
Aug. 14, 2014, 3:28 PM
- Argentina's YPF (YPF -2.1%) says it discovered oil at a well in the Agrio formation in southern Patagonia, the third shale find in the country in four years.
- CEO Miguel Galuccio told reporters at a Buenos Aires technology fair that YPF has begun testing the Filo Morado well, but did not provide the well’s depth or other details.
- The Agrio formation is located in Neuquen basin, the site of the huge Vaca Muerta shale gas deposit where YPF and Chevron are producing crude.
Aug. 1, 2014, 11:44 AM
- Argentina's default won't harm efforts to become self-sufficient in oil and natural gas by tapping vast shale reserves, according to Seaport Group and state energy company YPF (YPF -3.9%).
- YPF oversees Argentina’s shale oil and gas reserves, and thus will have continuous access to financial markets, Seaport says, adding that YPF may structure securities where its earnings are escrowed outside the country for use in repaying debt and receive attractive terms.
- YPF says it will generate enough cash to finance operations for the next 12 months and has access to new funding sources; the company has said it needs to fund a $35B investment plan over the next five years.
Jul. 31, 2014, 9:11 AM| Jul. 31, 2014, 9:11 AM | 4 Comments
Jul. 30, 2014, 9:09 AM
Jul. 24, 2014, 2:58 PM
- A one-day strike by 23K workers in the energy-rich Neuquen basin will cost YPF (YPF +2.9%) as much as $12M and cut production by 160K barrels of oil and 6M cubic meters of gas, the company says.
- The workers are striking as provincial governors and federal authorities discuss changes to Argentina’s hydrocarbons law; the outcome will determine how revenue from the Vaca Muerta formation, which holds the world’s fourth-biggest shale oil reserves and second-largest shale gas reserves, are distributed.
- The Neuquen basin is responsible for 40% of Argentina’s oil output and 56% of natural gas output, YPF says.
Jul. 18, 2014, 2:15 PM
- Dan Loeb's Third Point hedge fund is renewing a bet on Argentine government debt, expecting the country will reach a deal with creditors to resolve claims from its 2001 default by the end of the year, and is taking a stake in state-controlled oil company YPF (YPF +5.2%).
- "We are in the midst of a critical inflection period for the country: If the government settles with its hold-out creditors, Argentina will regain access to global capital markets,” according to the hedge fund's Q2 letter to investors.
- Third Point says Japan has been the biggest source of losses this year, but the firm is still finding opportunities in the country and expects macro conditions that have been headwinds to become more favorable toward the end of the year.
- Earlier: YPF pops as Third Point is said to increase stake.
- ETFs: DXJ, EWJ, ARGT, NKY, DBJP, EZJ, EWV, JPNL
Jul. 18, 2014, 10:44 AM| Jul. 18, 2014, 10:44 AM
YPF SA engages in the exploration, production and distribution of oil and gas. It operates through the following segments: Exploration and Production, Downstream, and Corporate and Other. The Exploration and Production segment includes contractual purchases of natural gas and purchase of crude... More
Sector: Basic Materials
Industry: Oil & Gas Refining & Marketing
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