YPF Q2 Earnings & Revenues Miss Estimates on Lower Crude Production

YPF Sociedad Anónima YPF reported second-quarter 2025 earnings of 13 cents per share, which missed the Zacks Consensus Estimate of 56 cents. The bottom line also declined from the year-ago quarter’s level of $1.32.

Total quarterly revenues of $4.64 billion missed the Zacks Consensus Estimate of $4.84 billion. The top line also decreased from the prior-year level of $4.94 billion.

The weak quarterly results can be primarily attributed to lower crude oil production and a decrease in oil prices.

YPF Sociedad Anonima Price, Consensus and EPS Surprise

YPF Sociedad Anonima price-consensus-eps-surprise-chart | YPF Sociedad Anonima Quote

Operational Performance

Upstream Production

In the second quarter, YPF’s total hydrocarbon production was 545.7 thousand barrels of oil equivalent per day (Mboe/d), up 1% from 539 Mboe/d in the corresponding period of 2024.  Crude oil production in the second quarter averaged 247.9 thousand barrels per day (MBbl/D) compared with 248.8 MBbl/D a year ago. The decline can be primarily attributed to lower conventional output, partially offset by higher shale oil production.

YPF’s natural gas production in the reported quarter increased 2.3% year over year to 39.7 million cubic meters per day. Gas production was primarily aided by increased shale gas output from the Rincón del Mangrullo and Aguada de la Arena blocks. Natural gas liquids (NGLs) production increased to 48 MBbl/D from 46.1 MBbl/D in the prior-year quarter.

Average Price Realizations

The average price realization for the company’s crude oil decreased 16% year over year, reaching $59.5 per barrel. The average natural gas price realizations increased 1.9% year over year to $4.1 million British thermal unit (MMBTU).

Lower oil prices, driven by volatility of Brent crude prices, led to YPF’s Adjusted EBITDA from upstream activities to fall 5.5% year over year to $771 million.  

Midstream & Downstream

In the quarter under review, processed crude volumes reached 301.4 MBbl/D, marginally higher than 299.2 MBbl/D in the year-ago quarter. Refineries’ Utilization Rate in the second quarter was 89.2%, which improved from 88.5% in the prior-year quarter.

The company’s adjusted EBITDA from the Midstream & Downstream segment was reported at $439 million, up 12.6% year over year. Lower cost of crude oil purchases and increased oil exports aided the segment.

Total Operating Expenses

The total operating expenses in the quarter totaled $1,529 million, a 17% decline from $1,842 million reported in the year-ago quarter. The decrease can be primarily attributed to reduced exposure to mature fields. 

Cash Flow of YPF

Net cash flow provided by operating activities in the quarter totaled $1,146 million. The company reported a negative free cash flow of $365 million for the quarter.

Balance Sheet

As of June 30, 2025, the company’s cash and short-term investments were $1 billion, and its total debt amounted to $9.8 billion.

YPF’s Zacks Rank & Key Picks

Currently, YPF carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the energy sector are Antero Midstream Corporation AM, Galp Energia SGPS SA GLPEY and Enbridge Inc. ENB, each carrying a Zacks Rank #2(Buy). You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company’s higher dividend yield, compared to its sub-industry peers, makes it an attractive choice for investors who seek consistent returns.

Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.

Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. The company has a stable business model supported by take-or-pay contracts, protecting it against commodity price volatility.

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This article originally published on Zacks Investment Research (zacks.com).

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