Sep. 24, 2014, 2:27 PM
- Hayman Capital's Kyle Bass reveals he recently bought a large stake in YPF (YPF -0.5%), the Argentine oil company, as the best play on a new decade of economic growth in the South American country.
- Bass tells CNBC he foresees $100B-$200B of foreign direct investment in Argentina's oil fields over the next 10 years, "so YPF serves as not only a proxy to Argentina's equity market, but as the real dominant player in an energy business that we expect will be transformed over the next five, 10 years."
- He also rips "immoral" Elliott Management and other hedge funds that have invested in Argentine bonds and held out for full payment on their investments, saying they are punishing a country which can't afford not to access the international capital markets and harness its growth potential (NYSEARCA:ARGT).
Sep. 16, 2014, 4:59 PM
- Argentina’s oil-producing provinces and the federal government agree to revise a 1967 energy bill to include shale, two provincial officials tell Bloomberg.
- State-run producer YPF is seen benefiting most from the new legislation, which should ease political tensions stemming from unclear rules governing the country’s shale boom and attract investors to areas such as Vaca Muerta, the huge shale formation where companies such as Chevron (NYSE:CVX), Shell (RDS.A, RDS.B) and Exxon (NYSE:XOM) are drilling wells.
- The new bill would allow energy companies that invest $250M over a five-year period to sell 20% of production in international markets without paying export taxes and to keep some export revenue outside the country for shale and conventional projects.
Sep. 15, 2014, 3:37 PM
- Occidental Petroleum’s (OXY +1.1%) chemical unit agrees to pay $190M to cover its liability for the cleanup of the Passaic River in northern New Jersey, state officials say.
- OxyChem is the legal successor to Diamond Shamrock, which was found to have intentionally dumped industrial waste in the river for decades, according to the AG's office; if approved by a judge and state regulators, the OXY payment would mean New Jersey has recovered $355M for the work.
- OxyChem says it will seek reimbursement from YPF subsidiary Maxus Energy, which OXY says is financially responsible for claims against OxyChem in the litigation.
Aug. 28, 2014, 7:42 AM
- Argentina's YPF and Malaysia's Petronas have agreed to jointly develop shale oil in Argentina's Vaca Muerta formation and will sign a deal today, WSJ reports.
- The deal is believed to include an initial investment of more than $500M, and state-run YPF and Petronas could invest up to $9B over the next decade to develop the full potential of the La Amarga Chica field within Vaca Muerta.
- The deal is expected to be structured similarly to a joint venture YPF signed last year with Chevron, which are developing the nearby Loma Campana field and has become the second biggest producer of unconventional oil outside North America
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. 8, 2014, 12:55 PM
- Argentina's YPF (YPF +1.2%) has enough cash and local funding sources to weather a sovereign default that has blocked it and other companies from international debt markets, CFO Daniel Gonzalez said in today's earnings conference call.
- The CFO said YPF had 11.4B pesos ($1.4B) in cash on its balance sheet at the end of June, and the company can lean on its credit lines with local banks, tap a $1B credit line with the federal government and, if necessary, adjust its capital spending.
- "We don´t have any plans for accessing international markets for now," Gonzalez said, but "you shouldn't be surprised" if YPF re-enters the market to rebuild its cash position if the sovereign default situation gets resolved.
Aug. 8, 2014, 8:33 AM
- YPF reports a 40% Y/Y gain in Q2 profit while oil and gas production rose for the fifth consecutive quarter.
- Argentina's leading energy company posted a quarterly profit of 1.526B pesos ($184M) vs. 1.09B in the year-earlier quarter.
- Q2 oil production rose 5.6% Y/Y to 241K boe/day while natural gas production rose 32%; in H1, crude output climbed 8.5% Y/Y while gas production gained 10%.
- Production of unconventional oil and gas reached 23.2K bbl/day thanks to the drilling of 50 wells in Vaca Muerta, where YPF has 21 active rigs and eight work-over rigs.
- Q2 total sales surged 61% to 35.3B pesos ($4.3B), but total spending rose nearly 67% to 10.8B pesos.
Aug. 1, 2014, 2:18 PM
- The International Swaps and Derivatives Association declared Argentina in default, a move which could trigger up to $1B on credit default swaps. Next up is an ISDA auction to settle outstanding CDS deals.
- Argentina bonds extended losses after the ISDA action, and the Global X Funds Argentina ETF (NYSEARCA:ARGT) is off 2.1% on the session.
- A selection of ADRs: Alto Palermo (APSA), Banco Macro (BMA -2.4%), BBVA Banco Frances (BFR -1.4%), Edenor (EDN +2.3%), Pampa Energia (PZE +0.1%), Telecom Argentina (TEO -0.6%), Tenaris (TS -0.1%), Ternium (TX -0.7%), YPF (YPF -0.9%).
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| 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| Comment!
Jun. 23, 2014, 6:19 PM
- American depository shares of YPF rose to two-year highs today following reports Argentina's state oil producer said its assets cannot be seized by creditors still trying to collect on a 2002 default on Argentine government debt because it is an independent company.
- A U.S. appeals court last week ruled Argentina could not continue to pay creditors who agreed to restructure their bonds after the default on $100B in debt unless it also paid $1.33B to smaller groups of hedge fund managers demanding full payment on the bonds, but YPF says it is "an independent company and... Its assets don't belong to the Republic of Argentina, and as such cannot be embargoed by the Republic of Argentina's creditors."
Jun. 18, 2014, 5:36 PM
YPF vs. ETF Alternatives
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.
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