A Historic Quarter for Argentina's Energy Giant
During the second quarter of 2026, YPF—Argentina's largest state-controlled energy company, which plays a pivotal role in the country's fuel supply—reportedly achieved the highest operational result in its history. According to the company led by Horacio Marín, the adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, a key metric of operational profitability) reached $2.804 billion, representing a staggering 150% year-on-year growth.
This extraordinary leap was accompanied by a 43% margin on revenues, the best record in the last 20 years. Furthermore, net income rose to $1.205 billion, consolidating itself as the second-highest quarterly profit in the company's history. Key factors driving this success include sustained growth in shale production, reduced extraction costs, and record processing levels at its refineries.
Total Focus on Vaca Muerta
For international context, Vaca Muerta is a massive geological formation in southwestern Argentina, recognized globally as one of the most promising unconventional oil and gas reserves (shale). Unconventional production was the main engine behind these results. During the quarter, shale oil extraction averaged 213,000 barrels per day, a 47% increase compared to the same period last year. The company's ambitious goal is to reach 250,000 barrels per day by the end of 2026.
To achieve this, YPF allocated investments amounting to $1.34 billion between April and June, 16% more than last year. Of the total invested, 77% was directed to unconventional activity, primarily in Vaca Muerta.
The Mega Project: Loma La Lata Oil
In May 2026, YPF submitted the Loma La Lata Oil project to the RIGI (a special Argentine tax incentive regime designed to attract large foreign and domestic investments). The project contemplates investments of $25 billion, making it the highest-amount project presented under this regime, reflecting the scale the company aims to achieve in the coming years.
Strategic Reorganization and Asset Sales
As part of its strategic plan, YPF is redefining its portfolio to concentrate exclusively on unconventional resources. A key move was the sale of its stake in Metrogas (a major natural gas distribution company in Buenos Aires, representing 70% of its capital) to Edenor (Argentina's largest electricity distributor) for $780 million, officially announced on the same day as the results.
Additionally, on August 6, 2026, the company agreed to divest two groups of conventional areas in the province of Mendoza (a western Argentine region) for approximately $400 million. Once these operations are completed, 95% of YPF's production will come from Vaca Muerta, bringing it closer to its goal of being an integrated oil company concentrated in shale.
Record Refining and the Local Market
The Downstream segment (fuel sales and refining) also broke records. YPF's refineries processed an average of 351,000 barrels per day, utilizing 104% of their capacity. This allowed for maximum production of gasoline and diesel, avoiding imports and enabling the export of surpluses to the region.
Fuel sales grew by 10% in volume, achieving a market share of 59% in Argentina. During the quarter, the company applied a temporary price buffer scheme, meaning it did not pass the full impact of international price hikes on to the local pump.
The VMOS Pipeline is Underway
To sustain shale growth, infrastructure is key. The Vaca Muerta Oil Sur (VMOS) pipeline project surpassed 77% completion by the end of June. The new pipeline and its export terminal are expected to begin crude export operations in early 2027, opening a fundamental gateway to place growing production into the international market.
Source: iProfesional