YPFD3.BA - Earnings call transcript Q3 2022

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Operator

Ladies and gentlemen, good morning. My name is Abby and I will be your conference operator today. I would like to welcome everyone to the YPF Third Quarter 2022 Earnings Call. [Operator Instructions] And I will now turn the conference over to Pablo Calderone.

You may begin your conference.

Pablo Calderone

gentlemen. and ladies morning, Good This is IR Calderone, YPF Manager. Pablo today Third Quarter you for Earnings our us joining Thank XXXX in Call. Lew. This our presentation Alejandro CEO, by Pablo Iuliano; will and our be conducted CFO,

the the main our During quarter finally, call up And will results. will for we go questions. third aspects events that presentation, and explain open the we through

risks remarks to dollars. subject to Before I note would calculations results expectations take to the different questions, uncertainties contemplated to statement flow be the U.S. cash X. using forward-looking we rate reach and actual are our like that Please could attention from Also, statements answer begin, exchange on consideration into to main cause today may by include financial our that remarks. our your these to in materially draw and Slide figures which your

with turn stated we will as are now figures might financial ahead. to some in adjusted non-IFRS discuss call, Our but such the Please Pablo. measures accordance during go the I call EBITDA. IFRS

Pablo Iuliano

and morning to you, good Thank you all. Pablo

in start quarter was progress ambitious on consolidating that to for profitability in unconventional healthy our me achieved highlighting We our continue tremendous levels, and year. we operations. results, maintained another the that efficiency track meet solid robust further gaining remaining operating target this financial the delivering Let operational which and has been

but mark FX the row, Adjusted EBITDA by positive continue performance $X.X second hydrocarbon an has result quarter, very XXXX by quarter in increase third our being first mostly OpEx, segments increase of hydrocarbon offset our interannual remained total driven of period billion the the currency production XX% months territory of permitted representing result remained of than again, a of previous the X across an reaching production operations. the in very line a accumulated a X% million, a on year-over-year the last with stable shale to pricing cost healthy during the results first business as to of quarter months the X the During higher comparing compared The positive billion primarily about coupled that income and when in with the strong, year. with continues in year. reaching improving same $XXX to for basis. growth $X.X partially total quarterly increased net of depreciation. accumulating operating the once pressure solid improvement levels, local over bottom run our come in

for our target expanding In updated of the sequential in terms September, fully year. accumulating of of up CapEx, our close to a compared the being our billion $X.X to XX% and quarter with basis year, ramping and on XX% the deploy investment billion continue when track $X.X quarter activities, we last totaling on as same the

flow free billion, our On $X.X debt to once close year-to-date. was for accumulating of positive sheet million, net quarter, strengthening the This side, tenth EUR declined billion our into financial further again $XXX translated second our quarter pushing X. X the to consecutive cash XXXX. as on balance up expansion note, and to leverage of comment me net let of new decree the briefly relation Gas Plan presidential since a the recent lowest a X.Xx, down potential On below in mark Gas Plan X ratio final the

for reserves. the new for import price the stability Kirchner to towards results and natural our Also the Nestor once step and In new of continue evacuation availability on that LNG vast provides for I the on same while for based a in challenging will development is and to results strengthen important up now prepare achieving operating through of we we to who to to that this go targets incentivizing details expect goals We the this financial profitable signaling powers and produce delivering Alejandro set continue advancing further quarter. YPF years and turn future. of operating year, income financial country pipeline summary, needs our the even gas continued have more running. we and capacity

Alejandro Lew

Pablo. you, Thank

Let me about and expanding of begin comments by the on evolution production. gas Pablo's oil our

X% per with October, more the oil as During preliminary essentially day. have per day our the production year-over-year, flat resumed we when third remained by barrels sequential production total came quarter, recording a crude previous increase XXX,XXX boosted averaged barrels which a quarter. recently, production And compared in quarter, though the X% XXX,XXX in growth at figures in strong expansion

on by program X% months production were MEGA X%, The increased activities during positive at NGLs evolution came down while natural our September. of by again crude, and on the about a gas. Beyond August maintenance crude a sequential oil basis, back very on and in once and year-over-year affected expected, as in gas negatively gas increase production shared both natural and the the of basis production, solid

Santa have in Polymer conventional at into Units, advancing achieved Trebol recovery as in sense, as Chachahuen and Behr every block, extending in the is strategy we other Manantiales leading the progress Los production the the quarter operating the well that X the so beyond continued on Behr from promising tertiary records achieved our currently In far hand, noting Cruz. On of Perales it techniques. side, Manantiales worth X Injection being Chubut Mendoza, pilots key in results new deployed El

per operations, quarter. averaged stable previous Moving to upstream costs. barrel remaining Lifting oil versus our across the of virtually equivalent $XX.XX

X% primarily it maintenance However, hub combination and of remaining shale cost general the sequential when higher recorded of costs a level to lifting at although our activities for operations, per pressures. very low due we oil segregate increase, a core $X.X barrel,

realization basis, increasing although gap discount within in $XX.X parity. a declined by crude which per prices about sequential on the upstream prices XX% price same the Regarding X% still Brent the a export priced to barrel by reducing QX, in averaged about period, oil segment, to at thus

wells to included the seasonality Gas Plan and average September. our in quarter-over-quarter shale by Zooming the prices the operations, between a On X of blocks, of XX% of $X.X months new supported May the BTU, increased reaching quarter, million an completed XX operated our the year-to-date. into the in natural XXX factor horizontal we of during wells per gas by side, evolution total completed

oil we the It During our also drilling in which new activity also our to owned, of block continued and core XX regard, rest Vaca producing the in of beyond hub of making the that at quarter, to and also targeting Plan increased highlighting when the with during oil and X quarterly quarter, October, almost a ramp-up wells. Amarilla shale respectively, during delivering production quarter drilled representing averaging worth we rates has enlarge this gas, in increasing production shale new healthy year. fully XX to quarterly In cubic XX.X months finished our fracture that million compared connection, end XX,XXX new the records. quarterly targeting XX%. as the a by of have barrels XXX% blocks. day developing experienced continued in that previous strategy by a the we QX, September drilled is expansion, the block, before just it by inventory was expanded tied shale first shale day owned last total during and drilling activity. terms well to basis, deliver while increased Este and were being and Loma On new shale oil drilling we that the growth Gas wells a for of already shale delineation Overall, at of and Lajas led And year, gas, our X oil under significant production of The shale of completed further horizontal meters shale tie-ins mark less gas. blocks year's Muerta wells, production our commitments the In and a we third fresh into XX% XX%, latter on quarter production impressive a X% gas gas our X. challenging during in required

efficiencies averaging quarter within per XX% same XXX over drilling fracking, records shale respectively, and per In in our in the the when meters new drilling we day quarter, compared and XXX XX%, XXXX. operations, fracking on terms month per during on increasing performance, continued of to set setting stages third and by

is contractors that key we As calls, constant in metrics to this operating and the improvement relentlessly previous of result joint teams further flagging a in operations. been work efficiencies have technical our our introduce of efforts to

barrel some cost retractive well specific cost a operations a recorded fair was with tariff average quarters decreased As a result to in as per as sequential a development UR our based basis estimates It cost operations by increase updated on also highlight oil months. pressures. XX% of revised some adjustments actual year-over-year within hub shale previous on that development recent core reigning from our driven $X.X the slightly to productivity as wells result, is marginal upwards core hub of of by

Finally, example and when in Domestic we stood previous volumes the of business. meters as the been length compared above slim downstream as XXXX. during we the of improvements our strong sales productivity recorded have QX, year X.X% over achieving drilled a a lower new of continued sector. Rincon quarterly terms design. quarter X,XXX ago gasoline simul-frac remained partially in by of the setting a that length quarters, the record and wells industrial diesel by dispatch use to Switching last quarter lateral by design over a the within with we sales an compensated gas extending sequential Diesel first while, a agribusiness XX% All demand, increased technology. field of higher levels marginal pre-pandemic record, our sales setting the and retail del new for and increase, driven seasonal horizontal well have Mangrullo, slim in of the with to

refinery scheduled the previous to compared stoppage of to quarter terms our maintenance crude Plaza lower Huincul In refinery. due the a despite oil utilization, at process

achieved gasoline a record our of During middle production we levels. the refinery maximizing quarter, through conversion distillates and

our the the very meet demand in normal of output, total during preceding fuels down early of supply However, of fuel to higher refinery order to in the June. imports diesel quarter, levels as sold increased XX% in well in rebuild representing of on back May QX disruptions were inventories as the total and the strong some primarily the drawn that during in quarter spite

fuels increased gradually remained in one fairly reduce the price prices, pricing by fuels additional third dollar XX% diesel of the and compensating of we basket early products which environment the the a remaining the total broader pricing other with refined price local during gasoline pump, of continued quarter, of week affordability by a particularly we import X evolution spreads decline on and versus terms managing versus inflationary products the the that X%, some by for local strategy of adjustments response of last or albeit XX, above global fuel Average the this on conscious heightened primarily have in in We, with minimum prices local the the the at devaluation average despite way the between dollars crude XXXX. average parties. avoid in effects we And the the references the our revenues, prices, of amidst parity this have in and of September third terms, measured have oil. our after vis-a-vis high over from at concluded the frame, to benefiting and it we in about quarter. faster FX. prices of dollar the to about October, parity during quarter, between of average while impact of in QX the previous gap XX% refined in policy Brent, with only quarter months, volatility our very average of tracked compare clients third during for of periods prices time adjusting not therefore, XX declined international the [indiscernible] also our fuel Moreover, strategy context. of Furthermore, on represents we that our basket quarter recording has continued both pricing but given products, increase local the the extending when previous that prices delayed recently an taxes local fuels X% in in an terms measured for In than at more prices last fairly aiming X% by maintain XX% with stable introduced XX% the continued heating while in the well

generation adjusted third the strong quarter turn, and positive positive but financial which totaling almost the EBITDA flow sound front, quarter the billion investment delivering tackling similar the $XXX with fully cash permitted sheet about our This cash fund quarter, to On levels. $X.X our second in provide and free activity capital sequentially serves another flow XX% flexibility by financial working since continue In needed increased XXth billion the ambition quarter to besides $X.X consecutive resulted to back in cash into operating valuations only led on the million of balance ramp-up also our strengthen us of this territory for growth plan accumulating XXXX. opportunities. further the to not

market given available instruments context consolidated total cash hedged FX exposure net liquidity. front, currency minimize the as increased our proxy ability of restrict investments of the to approach liquidity and consider the XX%. exposure FX our And $X.X in the net of of short-term end with billion a local and assets to Nevertheless, regulations have we we with asset invested indexed ended the our in cash the compared billion liquidity continued in active management, in that On September increased XX% XX hold of as that to exposure instruments $X.X inflation to In terms of to limited if prevailing a falls to the of as sense, an we abroad. liquidity, June. considering dollar-ized management exposure,

ratings cash debt taking $X.X which would situation ratio just than in into to next further Looking like covers mentioned flow in coming debt billion, our already by is last comfortably further given very down XXXX. our mark in local our the manageable in let Therefore, cases, amortizations the as And questions. $XXX from increased for leverage healthy as rating as And highlight, and fixed Pablo financial both as our positive has the and us. net to I growth in improving, AAA by our as well ratings net issuer and from position profile. to reduction lowest positive the $XX to our highlighting for led ahead our conclude tremendous local to of year-end free continuous with the change the ending months, the communicated that financial our coming local our improvement this, performance with by before before another presentation In the to in as in million operating mention quarter the less [indiscernible] due well your the open opportunities X due The me presentation, continued upgrade to generated quarter, recent notches X.Xx for stable. today registered I previous X call million which liquidity years. of debt debt a profile XX a as the outlook

Operator

We question first with Instructions] our Santander. from will Walter take [Operator Chiarvesio

Walter Chiarvesio

may. results. for X I questions, Congratulations if I the have

acceleration is And see one you new I first is this other shale And natural as related [indiscernible] drilled for to from in like upcoming of side. wells year. or blocks, per the quarter are drilling should if for particular The nearing a future. that if in how new wells deceleration. the My in the refinery one, normal CapEx wells couple new That on looking years wells. That's gas, there XX XX is normal that my more a plan side. on marketing, we of XXX the forward? probably be is we could that can interest the an the If the per made. you speed the considered on acceleration see is next update seeing question

Alejandro Lew

Walter, your thanks question your for for congratulations. and

start addressing the CapEx few me Let for next quickly by years.

improvements our year an the that we leverage have process very the also, ramp our and that activity probably year. us at present given reduction as capital believe well, after in in the in I believe, next commented, quarters. even for ambitious do course, even more have further operations that. are we experienced Muerta the have We think, there given for net we to the believe is flexibility last do in structure, this opportunity the And next still primarily that Vaca few point, with previous CapEx plan budget attractive we CapEx though a we of and the possible in As up undergoing we call our years significant the

our believe curve plan development gain few learning tertiary along accelerate all Vaca all point So in Vaca the fields. we production sulfur area years, increased the in our add to we you at while to in fuels. be attractive in conventional blocks. position the refineries the while, the if that all, the content of that our midstream that us the continue that our And debottleneck the in to opportunities to on operations probably All downstream CapEx revamping Vaca with CapEx also very a capital we in investments last efficiency our reduce in And Muerta. deployed multiyear the needed to further developing Muerta operation, the the particularly undergoing of given will be also of the Muerta advancing the also are

all all, one next ambitious $X XXXX So XXXX have fully in of few expect CapEx in be deploy level the seen do and just we than billion. to we that years somewhat we for more in that expecting are over the the to

we that that. right. next in or to plans X ways, year. cannot at budget for I going further plan activity, unfortunately, year And of process we to our our years well, given as have in a and plan CapEx expansion it -- So new But clearly, this this next drilling undergoing will is speaking, that then generally for are the larger related probably after point, I any terms for said, expect the comment than in norm acceleration

upstream speed efficiencies. our primarily are unconventional operations while, expect operations. we we the improving into deploy the and overall operating through to operations into our of hand, our All drilling also one the On capital further

combined new in yes, probably that of Muerta the you quarter in that of first of activity would all of this for likely, imply level rigs well be the we probably a our are most next and to total drilling quarter able probably closer XX going get in incorporating terms in operations. not to number. specific tell rig Vaca will another also But year, drilling to So I seen a that we have

probably of So higher I activity that would similar in all say slightly drilling you quarters. coming that, to would including see

Walter Chiarvesio

imply level Xx the of expect so number One leverage leverage also Perfect. would you the as we the given should is, the it are or the plan well increase company -- you increasing level historical to keep that follow-up question CapEx or or seeing now? would the that to of keep

Alejandro Lew

to Well, should next we But are our next already budget leverage reduce be the on likely, But that have reduced fully to the that maximum the we for of at accept number that the to way ambitious Most plan. willing year, push long to more be that likely, have be not most though that likely announced we would given that a early before, most than leverage. net for finally that. we look to mentioned same most to I the our comment would would part we But as Board. we I we we Xx. leverage for be of going when the for will we and to is, XXXX, expect, CapEx net next we levels would expressed year that for But we to have undergoing that expect plan were expect going we lower achieved. even process year CapEx as it's yet probably present that probably Xx for it's little to able say that to the to had comment deploy a final likely, cap of below but will level as this remain beginning plan year I for

Operator

Frank We from McGann of will take our Bank America. next question with

Frank McGann

Two cost I costs questions, if and could. just One, on pressures.

you're globally, I mentioned rates? bit then into between next if of the if Also, wondering in rate Argentine that service developing effect also years I but bring X meaningful You you provide stream, pretty just new the have release on Obviously, what to related you you was cost other exchange oil next inflation. how capacity basis seeing going and months? thinking potential your the issue with I'm at see the discussions advancing? could your negative the -- more and resources with over a pipeline effect just to obviously time? issue was And in that? XX comment some should to oil that longer secondly, And least little have over was those wondering, you press the the are just have, you over for that for on both term. could difference and seem to term, official how net the longer significantly because side are inflation there projects the gas was the on I would coming related play a on wondering, -- how have on that growth. X further potential. discussions increases already the capacity into And side, LNG the exchange

Alejandro Lew

Okay.

based pressures, of cost pressure of from the in that coming dollar FX our dollar macroeconomic or of say, terms sides, the the would higher of seeing In inflation from the given in appreciation get, the local basically equivalent real the than I way, evolution running inflation costs. we both FX we the definitely, are yes,

maintenance So that, CapEx our pressure experiencing service see international some activity second are to and pressure providers clearly that is also raw primarily we materials that And on related also the then to some also and there. goods, both imported we one from some from some hand.

in all, XX%. the is on -- quarter same of second in before. increased a than case the on That's about higher year of as but of inflation XX% interim our to the as activity right, local similar was increased basis, which was quarter, number to result an combination well also all similar So, has seen that both OpEx have about international what the And pressures. cost the we

sides X of cost we that do see those pressures. So

working are We that. on

will in we the depending recent last figures. has currency FX future -- the way weeks, been that Of local inflation, seeing the evolved have versus inflation the probably fashion the the inflation a on few of in course, similar the than evolution the

are that but -- at in services. we are coming than higher not we the local inflation from or experiencing goods further inflation in we still seeing acceleration sense, So the least cost devaluation might pressures and from not imported see and

far, to at in have CapEx operating continued get terms in least front, cost as capacity. definitely. we all pressures both partially becoming in about further of efficiencies. But our so plateau efficiencies, that harder we well. making in further those some partially expect question get And mitigate good we progress closer on through to well although of operating operating second clearly, on to terms as of how can as we our all, So is as costs future in Yes, that activity your a

we care Muerta past the supply to fully potential together of and gas we is resources in efficiency at through Clearly, further the further plant. for Muerta, opportunity with natural evaluate definitely, further of the that Nestor that Kirchner consumption we gas We given do the have is stage, supply to partner, Vaca we of in fully be and deploy see commented that in PETRONAS we but the government the if a manage local needs. will LNG that, that we taking ago, months able pipeline our need But with have couple LNG the the few production an debottlenecking require to to a already Vaca capital announced which forward have a increased both debottlenecking analysis the oil. project, will achieved. to that still our have pipeline capacity Vaca a -- ago weeks to project And of or then Muerta commented move

oil as we whole for of the whole pipeline -- Muerta is system the of Vaca well current restating industry project a through dedicated require of the some for connecting top in been all of require that, call trans-Andean imply probably in on a we we project, of early the pipeline in Atlantic we Chile the and So that we Vaca evacuation in do a capacity port -- that manage XXXX. such midstream that, expansion new project probably And move export case gas even working further will Oldelval, the probably probably and time, the believe undergoing terminal that new capacity. which with new would pipeline the definitely crude, we into will forward Muerta believe a a industry years. On Sur coming to case as to which have though

So we would expect that by that's and XXXX news that to up be late relatively project or soon running on a and believe should XXXX. early project that we have

to moving need on we ASAP. start So that

Frank McGann

terms any in -- that's going then is become could that LNG, And -- something of on thoughts or discussions on really that viable?

Alejandro Lew

that viable LNG merits as up demonstrated MOU takes way have Muerta of gas decision. true Yes. LNG as analysis and come project, PETRONAS of to a an that and natural study announced already have the clearly, we the plant, financial We jointly economic the believe -- joint resources. putting engineering of Vaca to the together well such investment exploitation such a the or we with plant, true a agreement we to of an we together the potential of economically final large-scale thinking productivity a clearly But and are many project

time So we there. with the -- final with hopefully some decision year, a have PETRONAS main coming undergoing would for up type process the will before before frame be expect a expect joint -- to end with would next we our of we are FID of and that that together the decision effort in partner

Frank McGann

Okay. End of XXXX?

Alejandro Lew

XXXX, yes, our of that's End expectation.

Operator

our will next take Credit question We from Marcelo Gumiero Suisse. with

Marcelo Gumiero

and have taking but I my answered questions. results Many you everyone. thank might on for were Congratulations of here. Good already morning, the them one

to this with mean $X Do the imports. still quarter And forward Plaza does is saw How guidance you affect, In billion on we debt the for a were mean, to quarter. imports been terms compare return level. exceed So the year? of is saw I billion good guidance wonder, of expect into I the what strong a posting have Huincul XXXX. you surpass should EBITDA the could supply And mean for far I how far, really in the so strong of or my does of fourth believe fuel demand produce that mix I guidance? in you results year, so I we that questions. at terms demand that higher question going mean, of third other fuels? mean, $X almost YPF mean, the we in EBITDA I I the results? capacity

Alejandro Lew

and We cumulative for -- believe billion EBITDA of $X question that an remainder $X which for of to was of thanks so guidance with we your that the guidance. full guidance of And the Marcelo, the stick the well very billion, fulfill the $X billion likely, EBITDA. the for billion year, billion. $X area congratulations. first terms your question, we in over position area $X X-month area, On your clearly $X probably year is billion below us concept do most and far not the

of $X still So should able area within but be number. we confident above somewhere the to we that are very be that billion

into of contracts But gas in quarter I think October terms fourth business recall until our don't the the our seasonality of summertime to plan or seasonality during on of that gas and April general prices gas then the a significant May and relatively the our April. the onwards need in until long-term the second in is exactly, from business. factor expect reduces third which quarter definitely quarter. Clearly, I be to take sales way, natural We natural consideration you the similar concept than

we some do quarter fourth a fourth the seasonality quarter. contracts. the pressures cost clearly, in plant also, gas And factor has as expect we mentioned then see our on lower before, further to So

should also quarter quarter. that numbers reduce comparing to the our So the third fourth for probably EBITDA

come expect below primarily reduction in the inputs, we a quarter, do third little quarter your year. in from of to saw about question full in diesel And business general ones aspects in that figure the main the all, So but with -- I would EBITDA for all with say is quarter then our fourth fuel those that we second terms similar the sticking general the inputs. fourth probably general view a the numbers X guidance the for affecting

quarter. is of we particularly some the back soil also, of second factors seasonality the in fuel to to humidity the that probably total coming sorry, quarter related to slowdown in the -- part, we of primarily draw also in is end on at in demand building we -- sector, given third the that both inventories total speak. and sector in will the once see what fourth related in agribusiness below be back had were imports imports the diesel second the the again activity quarter, seeing quarter we in diesel Now, are drawdown, to the And lack affecting mostly from the regular as the which for agribusiness XX%,

total in when most factors imports, third quarter, quarter said, of imports, sports those the diesel I taking see our combining the to compared likely fourth total diesel as where volume down So below we coming in XX%. fuel

Operator

from We our [indiscernible]. question next take will

Unidentified Analyst

and term. Thank long on like for I'd Congratulations the your medium your results. you. some regarding address view to questions

with industrial a would in us to facilities production full case handle resilient in macroeconomic to share activity? Are is you sales second regarding how in decrease to there needs? And XXXX, growth? ahead, when production your what the such sales recession, how are local could your scenario sales prepared production that do fuel refining view a And your to alter supply your market a plants? do you on a to So expect upstream finance growth And reach reach you expect question, looking point? necessary YPS

Alejandro Lew

your address to questions. Well,

in and a with for with XXXX with one, elasticity the is what you X. course, or macroeconomic outlook that activity, side, significant demand mostly diesel correlation first volumes slowdown say economic recession that, of of on of is The an would above activity, see diesel diesel in our a in case I or terms sensibility

clearly, So activity has economic diesel on a relevant total impact demand.

So demand for gasoline. we front, -- in that the and if less so were in

the recession total for is see that So needs of activity demand your or in scenario, if even reducing likely affected. would imported And mostly slowdown regard, imported fuels, scenario where a economic in we probably diesel, diesel under diesel. a most being

average know, on about XX% you and importer of country diesel As on XX% a by probably the is net gasoline. about

to extent in will reduction imported diesel needs the of and imported gasoline. a So reduce economic for activity a total country probably lesser

terms activity reduced absorb very in given imports economic remember the you to have a imports. the of slightly about all country that If the you above demand severe elasticity just and versus could by X amount and is XX% were diesel reducing economic of activity,

don't significant or will which have to in to have on you still If we cushion want you whole some a capacity economic capacity, severe crisis utilization our still not then a in our have impact recession view very this our point have at for efficiency. refining even XXXX

right efficiency. XX%. close are probably very point, having cost utility a capacity of utilization we high to average XX% the between past, and number levels you at significant know, in now, averaged And As this that XX$ or running

on terms beyond still expect not So second of efficiency. be for overall that inputs in about we how some significant in in self-sufficient a still would of have and back needs to our we crude even question we oil. have terms flexibility carrying impact And say your

past our on commented be and able the expectations that or few expect self-sufficient would between production to XXXX in we we crude to we sometime years, have the early on given XXXX. We that in still late be next growth should believe

generally that that on able up have need all clearly that the working is the that, be type in ramping we we are case. to still investing on speaking, deliver to actually we growth. production facilities place of believe and So or And production to

that us session the activity the commented part ahead at -- only the of increased that that's we also which beginning is encompasses needed Q&A of production. to of the accommodate I infrastructure well basically have plan the not the of So ambitious that but all as

within manageable all is believe of ability. that So we and our that

Operator

BTG. next from [Operator will our Instructions] We take Guardiola Daniel with question

Daniel Guardiola

when of questions. related is couple with question I share Kirchner the And if My Nestor is project? to could Have when this And you the a know pipeline. to of wanted first us progress how is regarding the conclusion allocation. YPF these capital question guys for it my play second online? this of And expecting opportunities come And for -- are from projects? the what are expected to you

strong We place a implementing my positive maybe of putting shareholder start questions. I quarters, have last have distributing FCF next either program, to And XX wanted in buyback X the remuneration generation considered if very in program? to year all for or seen Those know you actually are during dividends them.

Alejandro Lew

Nestor the follow not Thank you, companies involved terms as we pipeline. closely you have Daniel. to YPF Kirchner Well, talk involved in pipeline, construction But is that. know, in the in of very it the evolution do will the of we of of and course, the different we do --

point, I likelihood mentioned but existing believe last it the around to at comments enactment that filling have that comment up question, of and the second the And is pipeline as anything to the June. clearly, much believe believe not the Gas we many that goes on -- for -- course, and we winter year, your And cannot we for are early in on stage capital chances of as we doable. this that, said, Plan as Plan allocation though still we to to to we is in challenging -- ability related the up I extension saw So running believe planned, the -- pipeline, that Gas technically probably our -- of of speaking, is up flexibility the that or ability they the the That's even his actually terms we the introductory technically the running we the have early but the everything and There that of winter new and sometime if of it But remarks, week, XXXX. actual not of proposes Pablo go pipeline. that have said, decree view. sorry, a have of they as speaking, by wrong. there next

about also there or Plan how next imply allocation for the existing Board. second final So pipeline of course, to will of built and is any in extension of formal we announcement then on first next running approved participation we of think opportunities. And it the Gas a budget our such depend up -- believe all, And our question it definitely getting our in that, the up your look and such Gas, year, capital the by on that's Plan confidence would new definitely winter. good I that consider for news. And that the should into either is

free mentioned but that the probably that in any before, that's ambitious year I which next likely next do not a end have believe all may will equity -- continue flow day, planned of year, negative Board developing may capital in to capacity up expenditures for year cash design. we flow. on being will cash depend more might and management negative potentially As cash our as do the end you something year. for to for any would management we not recommendation At our will be make form, of could that decide. we we still, our free a result generate next holders. company to not But slightly how a flow have would it operating course, to consider But a consider up Directors in of said, distribution, all, imply I that the say that, most of But form

think consider next a I to budget then a we be next say year. that, that comment But capital on our I given should that the given early little final had something for again, have so structure, the company it's approved that And for bit year. improved not that significantly could would

Operator

take our question will from We Fernandez Ezequiel next Balanz. with

Ezequiel Fernández

you have one by mind. questions. I if like go would I to not X one, do

to the progressively even area more specific years? Or it you this So expect last the of year. facilities [indiscernible] projects $XXX or course, or like Oldelval big and in And my specific continue XXXX, medium would X come in of at in beyond higher? say, or maybe pace during the X term, along, per oscillated $XXX first similar one, between coming excluding let's facilities and down investment million years investment has million levels should

Alejandro Lew

fields. you talk you hand, Muerta a it's CapEx our CapEx the on related new On of things, our and have hand, the facilities the other maintenance operations. about Vaca when Well, you one right? mature related buildup to facilities, And have different the to combination conventional integrity of

on facilities remain investment continue say in most our operations we in the the building and would the in all sustainability well. total and we up So Muerta, having X, will total of top while, to mature upstream you -- in our capacity our tonnes likely, to probably strong progress that as I increase at our when as of nominal likely continue Vaca in continue operations integrity production agenda combine

revamping investment say of when And increasing. combine I So allocation a likely finish the downstream capital, in deploy same -- see as of and we you in next the while, Cuyo have de the the balance Lujan should the both the in and of years, years investment in time, at within in all on the then refineries. La some done nominally And specific multiyear you all Plata that our total not sheet the of That infrastructure X YPF's would investments investments you coming more will most that, next the facilities also midstream most itself. but likely, mostly be we midstream.

balance sheet terms of do investments in pipelines on but So not a the those projects. basically different good capital the deploy midstream into of in of actually investments that portion balance rather the perform sheets or our vehicles go directly the

Ezequiel Fernández

I My the some don't much clear. could the you this could is Lujan included precisely regarding La with mistaken. additional upgrades on related lead question share not second Plata, if comments Great. how could de release, at bring to refining which if us in press to fuel, Cuyo That higher expected was program very side. know volumes production I'm

Alejandro Lew

general from are at a investment the refineries, of production total that of managing but not content. to crudes mostly multiyear in same of reducing fuels Muerta of different related that Sure. being Vaca contemplate time, the processing, basically, capable mix The the sulfur but to coming proportion in rather are improving the the processed. into it's lighter of crudes increased crudes their that capacity And terms mostly mix increase at our -- the quality

aspects main investment. the the are of those So

sorry, mentioned, the particularly capacity in in expanded of middle terms distillates part given total However, that that fuels and -- latter up resulting crudes in different I mix somewhat in end gasoline production. will the

capacity which probably the we in all, that of the gasoline program expect to of end investment finish with XXXX, distillates that to XX% production time up by middle multiyear about would total XX%. going should by go this all is we by we So and be see to

Ezequiel Fernández

know helpful. final in facility operate sorry, the go still if unrestricted permits And a and such is course, year-round this is go that export you But preliminary project? to very do eventual with which, topic I LNG LNG of question to is, to I stages. export forward an my That's absolute would back think allow an prerequisite

Alejandro Lew

LNG large-scale which I the LNG probably definitely and mean time the facility, to for XXX-day gas I we run beginning on the the natural ability a supply require briefly definitely, a feed which, mentioned of basis. to Well, considering, think at types to plant. have that gas are at would the to you the a Q&A session same the pipeline dedicated

a even in large-scale dedicated XXX-day a run that significant for ability as the that Vaca LNG a to basis. we on pipeline, But resources envision in dedicated to that question such the would any to quick have total be see as definitely ample will further natural way, would ability require you have as long the midstream a facilities, answer expand production to a to not for actually plan to country. case, your the the meaningful Muerta So in gas gas year-on problems have we basis. run a

Operator

call will back I closing questions, now to remarks. Mr. for further with no Lew Alejandro And the turn

Alejandro Lew

the much evolution day. see in all great time. you the hear of Have for or continuing you we Well, for track a to next you results joining our and very hope to and thank to

Operator

and call. for today's We participation. concludes you gentlemen, thank your this Ladies

may disconnect. You now

YPF Sociedad Anónima (YPF) 10 Nov 222022 Q3 Earnings call transcript