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YPF Sociedad Anonima (YPF)

  • Thu, Apr. 23, 4:49 PM
    • Argentina's YPF says it has sold $1.5B of new 10-year bonds at 8.5%, raising its planned issuance from $500M because of strong demand - a far better result than its February sale of $500M of bonds, a third less than it had offered, when many bids were for higher yields than it would accept.
    • YPF needs to raise cash to invest in its vast but barely tapped Vaca Muerta shale field in order to reverse Argentina's energy sector trade deficit that is pressuring foreign reserves.
    • Separately, Russia's Gazprom (OTCPK:OGZPY) and YPF sign an agreement that sets out plans to jointly explore, produce and transport hydrocarbons in the shale gas-rich South American country and in third countries.
  • Thu, Apr. 16, 6:19 PM
    • The cost of drilling wells in Argentina's Vaca Muerta shale oil and gas formation will fall at least 10% by the end of 2016, after already cutting drilling costs at the vast formation to $6.9M per well from $11M, YPF CEO Miguel Galuccio says.
    • YPF currently imports fracking sand from China, the U.S. and Brazil, but Galuccio says Argentina will produce all sand it needs for shale drilling by the end of 2016, which the CEO says will on its own save 10% on well drilling costs.
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  • Thu, Apr. 9, 5:57 PM
    • Shale oil output from Argentina's vast but barely tapped Vaca Muerta formation has increased, but low world oil prices and high drilling costs threaten profitability, YPF CEO Miguel Galuccio says.
    • "It is not profitable with an $11M well and prices at $50/bbl. We drilled our vertical wells with the expectation that they would be profitable at $84/bbl and with wells that cost $6.5M-$7M," the CEO says.
    • YPF has said lower global oil prices have not affected its exploration plans, defying the industry trend of multibillion-dollar spending cuts.
    • Vaca Muerta's March output rose to 44K-45K bbl/day of oil from 41K bbl/day reported in February.
  • Mon, Mar. 9, 12:58 PM
    • YPF (YPF +0.6%) has carried out a successful production test on an oil discovery in Argentina’s Vaca Muerta shale play, according to partner Andes Energia.
    • Initial tests showed the well naturally flowed oil at an average rate of 90 bbl/day, enough for Andes Energia to say it is very encouraged by the results of the play.
    • The Las Varillas exploratory well is a vertical well, unlike the majority of shale wells internationally which are typically horizontal, so it is cheaper to both drill and complete; the project also benefits from comparatively high domestic oil prices, as in Argentina there is a regulated price of $77/bbl.
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  • Thu, Feb. 26, 5:57 PM
    • Argentina's YPF says its Q4 net income fell 28% to 1.38B pesos ($16M) from 1.92B pesos a year earlier, missing analyst estimates, as exploration costs soared 145% Y/Y in the quarter.
    • Earnings were hit as YPF set aside 1.2B pesos to cover a potential legal settlement after the company inherited a lawsuit from Repsol that alleges contamination of the Passaic River from dioxin and various pesticides.
    • Q4 oil and natural gas output rose 14% Y/Y, with crude production rising by 5.3% and gas output surging 25%.
  • Wed, Jan. 28, 9:48 AM
    • Aregntina's YPF and China's Sinopec (NYSE:SNP) sign an MOU aimed at eventually partnering to develop oil and gas projects in the South American country.
    • SNP, which is already Argentina's fourth-leading oil producer, has no experience in unconventional oil in the country, but a potential partnership could entail YPF helping develop its conventional output while the Chinese company would invest alongside YPF to raise shale oil production.
    • YPF already has partnered with Chevron and Malaysia's Petronas to develop shale oil in Vaca Muerta, and has been courting international investors to boost unconventional energy output one of the world's top shale oil and gas prospects.
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  • Thu, Jan. 15, 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.
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  • Nov. 17, 2014, 5:41 PM
    • Argentina's YPF and Chile's ENAP say they plan to invest an additional $200M to increase natural gas production off the southern tip of South America in an attempt to raise output to ~4M cm/day from the current 2.4M cm/day.
    • YPF and ENAP also extend the joint production deal beyond the existing Aug. 2016 expiration date, with the length of extension depending on negotiations between YPF and government officials.
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  • Nov. 12, 2014, 12:40 PM
    • Argentina's domestic price controls are shielding bondholders of state-run oil company YPF (YPF -0.7%) from the bear market in crude, as YPF’s $587M of notes due 2018 have returned 6.4% since oil prices began falling, the most among junk bonds of emerging market integrated oil producers which have lost an average of 20%.
    • U.S. oil prices “aren’t that relevant in Argentina, and in fact domestic prices are near their highest on record," says Fitch analyst Gabriela Curutchet.
    • YPF also is less exposed to global price fluctuations because it does not export crude and relies on the sale of refined products abroad for just a fraction of revenue.
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  • Oct. 30, 2014, 6:27 PM
    • YPF rose 2.5% today as Argentina lawmakers voted to approve a law revamping regulations on energy investment, which could help the country boost its oil and gas production over the next two decades.
    • The package of new laws cuts the minimum investment needed for companies to be exempt from import controls to $250M from $1B.
    • Argentina offers considerable energy potential, ranking no. 3 in the world in shale gas reserves and no. 4 in shale oil, yet its refining capacity is limited and it imports energy products.
    • Oil majors Total (NYSE:TOT) and Chevron (NYSE:CVX) have invested in Argentina, and  Exxon (NYSE:XOM) has talked with YPF about energy exploration opportunities in the country.
  • Oct. 9, 2014, 11:18 AM
    • Ecuador, OPEC’s smallest-producing member, has signed contracts with companies including Halliburton (NYSE:HAL), Schlumberger (NYSE:SLB), Sinopec (NYSE:SNP) and YPF for a combined $2.12B investment.
    • A joint venture between SLB and Tecpetrol will invest at least $702M in the block 12 oil concession, state-run Petroamazonas says; HAL will invest $579M in three concession blocks, and won a contract to boost output at fields in the block 58 concession with a minimum $240M investment.
    • The deals come as the government seeks to boost crude output to offset a 15% drop in the price of its Oriente crude in the last three months.
  • 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.
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  • Oct. 8, 2014, 2:45 PM
    • YPF (YPF +0.9%) and Gazprom (OTCPK:OGZPY) are in talks to sign a memorandum of understanding to develop natural gas in Argentina worth at least $1B, Argentina’s Industry Minister says.
    • Gazprom officials will visit YPF as soon as November, the minister says after meeting with Gazprom Chairman Alexey Miller at the International Gas Forum in St. Petersburg.
    • The MOU could include Germany’s BASF (OTCQX:BASFY) unit Wintershall, the minister says.
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  • Sep. 29, 2014, 2:10 PM
    • Argentina's YPF (YPF -1.5%) and Malaysia's Petronas are negotiating a joint venture with Mexico's Pemex in a bid to become the first foreign oil companies to capitalize on Mexico’s energy reform, FT reports.
    • The story details a long friendship between YPF CEO Miguel Galuccio and Emilio Lozoya, the man modernizing Pemex, as the foundation behind the discussions.
    • Galuccio says the trio has the right skill set to make a big impact in mature or shallow-water fields: Petronas is an offshore expert with deep pockets, YPF’s bread and butter is to squeeze more from declining fields and it is also has shale skills, and Pemex is a shallow-water leader.
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  • Sep. 24, 2014, 2:43 PM
    • The country's disastrous two-term president Cristina Fernández de Kirchner stands to do value-seeking investors not one, but two good turns, writes Grant. Her poor governance has wrecked the economy, and by stepping down, she'll improve it (the next election is October 2015).
    • Perhaps looking ahead to 2015, the Argentine Merval Index has already had a major rally over the past year or so, but there's still plenty of upside. The country's domestic stock market capitalization of $55B represents just 17% of GDP vs. a regional average of 49%.
    • Kyle Bass is a fan of YPF, but Grant takes note of another name, natural gas delivery company Transportadora de Gas del Sur SA (NYSE:TGS). It's selling for an enterprise value 5x that of EBITDA vs. 6x for comparable companies in the region, but factoring in the potential profitability recovery makes the stock even cheaper.
    • ARGT +8.4% YTD
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Company Description
YPF Sociedad Anonima is an integrated oil & gas company. It upstream operation consists of exploration, development & production of crude oil, natural gas & LPG. Its downstream operation includes refining, marketing & distribution of oil, among others.