YPF's Record Quarter: Shale Transformation Accelerates with Loma La Lata Oil
A Landmark Quarter for the Books
YPF delivered a record quarter with adjusted EBITDA of $2.8 billion, up 76% sequentially and 2.5x year-over-year. CEO Horacio Marin opened the call by calling it “Q2 was a landmark quarter in YPF's history with 10 major milestones achieved across all our operations.” — Horacio Marin, CEO · 2026-08-11 The 4x4 plan is clearly paying off, as efficiency gains across drilling, fracking, and refining drove margins to 43%. CFO Pedro Kearney echoed the strength: “Adjusted EBITDA totaled $2.8 billion, increasing 76% sequentially and 2.5x year-over-year.” — Pedro Kearney, CFO · 2026-08-11 Upstream EVP Maximiliano Westen highlighted the production milestone: “Shale oil production continues the growth path, hitting a new record high, reaching 213,000 barrels per day.” — Maximiliano Westen, Upstream Executive · 2026-08-11 Net leverage fell to 1.1x, the lowest in over a decade, reinforcing the financial transformation.
Loma La Lata Oil: The Next Growth Engine
The most significant new development is the submission of the Loma La Lata Oil project under RIGI, a massive $25 billion investment to develop 5 blocks with a plateau of 240,000 barrels per day, 100% dedicated to exports. Horacio described it as
This project is central to the Loma La Lata oil theme and positions YPF to become a world-class export platform. Additionally, the Argentina LNG project advanced significantly: Eni and XRG each took 32% in the upstream SPV, while YPF retains operatorship with a 36% stake. The company is on track for FID by year-end, with project finance discussions progressing well.the largest oil export program in Argentina history and the largest project submitted under RIGI so far.
Guidance Raised by a Third
With Brent averaging $82 in H1 and assumed $75 in H2, YPF revised guidance upward, now expecting adjusted EBITDA of roughly $8 billion against a prior $6 billion. Horacio stated: “we now expect adjusted EBITDA in the area of $8 billion, representing a significant increase from our previous guidance for around $6 billion.” — Horacio Marin, CEO · 2026-08-11 This marks a dramatic shift from earlier caution. In February, Horacio had tempered expectations on production ramp: “You have to expect during the half of the year that we'll be delivering between 200,000 and 210,000 barrels a day.” — Horacio Marin, Chief Executive Officer · 2026-02-27 And in May, he acknowledged the volatile market but expressed confidence in passing through prices: “I'm not worried in the prices that you are saying that if it remains in $90 or it is going to $80 or $90, we are very okay and we can pass the – quickly pass through the prices.” — Horacio Marin, Chief Executive Officer · 2026-05-09 Now, with a strengthened balance sheet, the company expects net leverage of ~1x and positive free cash flow of ~$2 billion for the year.
The Path to a Pure Shale Player
The divestment process continues: the sale of Andes clusters in Mendoza and a 70% stake in MetroGAS moves YPF toward a ~95% shale production mix. This aligns with the broader oil production shift and the company's goal to become a pure integrated unconventional player. Management also completed a 10-for-1 stock split to improve accessibility for retail investors. With these moves, YPF is reshaping itself into a more profitable, export-oriented shale company, and the market is taking notice.