Argentina’s YPF posts record Q2 profit of $1.21b driven by Vaca Muerta shale output
Argentina's state-backed energy company YPF reported a sharp rise in second-quarter earnings, posting a net profit of $1.21 billion for the April-to-June period, compared with $58 million in the same quarter last year.
Revenue climbed 42% year-on-year to $6.57 billion, exceeding analysts' expectations of $6.10 billion, according to LSEG data.
The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) reached $2.80 billion during the quarter, up 149% from a year earlier and marking the highest adjusted EBITDA in the company's history.
YPF said these earnings were driven by record shale production, stronger refining performance, and higher international oil prices.
These were fuelled by continued growth in unconventional production from Vaca Muerta, the vast shale formation that has become central to Argentina's strategy of increasing energy exports and strengthening foreign currency reserves.
In February this year, YPF highlighted its intention to step up spending on Vaca Muerta as it pursues higher production and export growth.
Vaca Muerta's growing importance
Shale oil production rose 47% year-on-year to an average of 213,000 barrels per day, while total crude oil output reached 266,000 barrels per day.
YPF said it remains on track to increase shale oil production to 250,000 barrels per day by the end of 2026. Natural gas production this quarter, however, fell 6% from the same period a year earlier.
Located in Argentina's Neuquén Basin, Vaca Muerta is considered the world's second-largest unconventional gas reserve and fourth-largest unconventional oil reserve.
The formation has attracted growing international interest as energy companies seek new sources of supply to meet rising global demand.
The latest earnings come as YPF advances an ambitious development and export strategy for the basin, including efforts to position Argentina as a major LNG exporter.
In June, ADNOC's international investment platform XRG and Italian energy major Eni agreed to acquire 32% stakes each in three upstream gas blocks operated by YPF in Vaca Muerta, while YPF retained a 36% interest.
The assets are expected to supply gas to the planned Argentina LNG project, which aims to connect the basin's vast gas resources with international markets through a proposed 12 million tonnes per annum LNG export facility.
