YPF Sociedad Anónima (YPF) operates as a vertically integrated energy company in Argentina.
The company is operating a fully integrated oil and gas chain with leading market positions across the domestic upstream, downstream and gas and power segments.
Business strategy
The company strategy has evolved over the last few years to prioritize the monetization of its vast unconventional hydrocarbon resources. Over the last 10 years, the company have invested significantly in the Vaca Muerta forma...
YPF Sociedad Anónima (YPF) operates as a vertically integrated energy company in Argentina.
The company is operating a fully integrated oil and gas chain with leading market positions across the domestic upstream, downstream and gas and power segments.
Business strategy
The company strategy has evolved over the last few years to prioritize the monetization of its vast unconventional hydrocarbon resources. Over the last 10 years, the company have invested significantly in the Vaca Muerta formation together with its international and local partners, gaining experience, incorporating technology and adapting processes to become competitive on a global scale.
While accelerating the growth potential of the company’s shale resources, it also remain focused on maintaining high standards with regards to the health and safety of its people and the communities it work in, reducing its carbon footprint, and remaining focused on securing further efficiencies in all of the company’s operations, including refining/processing of crude oil and natural gas and the distribution and marketing of hydrocarbons and derivative products, which position it as the leading integrated energy company in Argentina.
The company’s strategic pillars are:
Focus on the company’s most profitable business: Vaca Muerta
Development of the company’s unconventional hydrocarbon acreage with competitive advantages and debottleneck of the crude oil production from the Vaca Muerta formation, through infrastructure projects that will enable future growth and exports.
Active portfolio management
Rationalization of the conventional asset portfolio, prioritizing profitability, and growth of its resource base through acquisitions, as well as through exploration.
Maximize upstream and downstream efficiency
Efficiency in costs and processes in all of the company’s business segments, and particularly in the Vaca Muerta formation, with the aim of ensuring resilience even in low price scenarios; as well as adaptation of its refineries to facilitate greater shale crude oil processing, and to reach the expected quality of fuels demanded by its customers.
Argentine LNG project
Monetization of Vaca Muerta’s world-class natural gas reserves beyond local and regional demand, leading the development of LNG capacity in Argentina.
Upstream business segment
The Upstream business segment performs all activities related to the exploration and exploitation of hydrocarbon fields and production of crude oil and natural gas.
Its revenues are mainly derived from: (i) the sale of the crude oil produced to the Downstream business segment; and (ii) the sale of the natural gas produced, and the natural gas retained in plant to the Gas and Power business segment.
On July 1, 2024, certain assets related to the production of frac sand for well drilling/fracking purposes, which were formerly included in Upstream business segment, were assigned to Central Administration and Others.
Downstream business segment
The Downstream business segment performs activities related to: (i) crude oil refining and the production of petrochemical products; (ii) logistics related to the transportation of crude oil to the refineries and the transportation and distribution of refined and petrochemical products to be marketed at the different sales channels; (iii) commercialization of refined and petrochemical products obtained from such processes; (iv) commercialization of crude oil; and (v) commercialization of specialties for the agribusiness industry and of grains and their by-products.
Its revenues are mainly derived from the sale of crude oil, refined and petrochemical products, specialties for the agribusiness industry and grains and their by-products. These operations are performed through the businesses of B2C (Retail), B2B (Industries, Transportation, Aviation, Agro, Lubricants and Specialties), LPG, Chemicals, International Trade and Transportation and Sales to Companies.
It incurs all costs related to the activities mentioned above, including the purchase of: (i) crude oil from the Upstream business segment and third parties; (ii) gasoline and natural gas to be consumed in the refinery and petrochemical industrial complexes from the Gas and Power business segment; and (iii) propane and butane to be commercialized from the Gas and Power business segment.
Gas and Power business segment
The Gas and Power business segment performs activities related to: (i) natural gas transportation to third parties and the Downstream business segment, and its commercialization; (ii) commercial and technical operation of the LNG regasification terminal in Escobar, by hiring a regasification vessel; (iii) transportation, conditioning and processing of natural gas retained in plant for the separation and fractionation of gasoline, propane and butane; (iv) distribution of natural gas through the company’s subsidiary Metrogas S.A. (Metrogas); and (v) the storage of the natural gas produced. Also, through the company’s investments in associates and joint ventures, it undertakes activities related to: (i) separation of NGLs and their fractionation, storage and transportation for the production of ethane, propane, butane and gasoline; (ii) generation of conventional thermal electric power and renewable energy; and (iii) production, storage, distribution and sale of fertilizers.
The company’s revenues are mainly derived from the commercialization of natural gas as producers to third parties and the Downstream business segment, the distribution of natural gas through its subsidiary Metrogas, the sale of gasoline, propane and butane to the Downstream business segment and the provision of LNG regasification services.
It incurs all costs related to the activities mentioned above, including the purchase of natural gas and natural gas retained in plant from the Upstream business segment.
Central Administration and Others
This segment covers other activities performed by the company not falling under the business segments mentioned above and which are not reporting business segments, mainly comprising corporate administrative expenses and assets and construction activities.
Upstream
YPF’s Upstream business segment seeks to add value to the company by optimizing the use of deployed capital, achieving levels of operational excellence, thus generating new development opportunities, while delivering profitable growth driven by the increasing incorporation of unconventional projects to its activities where well construction efficiency is a fundamental factor.
During 2024, the company continued actively managing its portfolio. As of December 31, 2024, the company held interests in 111 oil and gas fields in Argentina. According to the IAPG, in 2024, these assets accounted for 36.1% of the total production of crude oil and 28.7% of the total natural gas production of Argentina.
During 2024, YPF’s hydrocarbon production increased by 4.4% compared to 2023. The daily production of crude oil increased by 6.0%, NGLs increased by 0.4%, and natural gas increased by a 3.4% compared to 2023. Additionally, 53% of its total hydrocarbon production is unconventional.
The company’s unconventional hydrocarbon production continued to increase strongly during 2024. The daily production of crude oil increased by 25.9%, NGLs increased by 4.9%, and natural gas increased by 18.6% compared to 2023.
On February 29, 2024, YPF’s Board of Directors resolved the disposal of certain groups of assets, mainly mature fields in the Golfo San Jorge, Neuquina, Cuyana and Austral basins. This disposal of assets related to mature fields (Mature Fields Project) is consistent with the company’s management plans, which considers that the rationalization of the conventional upstream portfolio is one of the drivers on which the YPF’s strategy is based, with focus on activities and investments in unconventional fields.
Acreage
The company’s hydrocarbon production is concentrated in Argentina, in the Neuquina, Golfo San Jorge, Cuyana, Noroeste and Austral basins:
The net exploratory undeveloped acreage in Argentina under the first or second exploration periods, which mature in 2025 and in the period 2026-2028 is 18,325 km2 (85.2%) and 3,175 km2 (14.8%), respectively, of its 21,500 km2 net exploratory undeveloped acreage as of December 31, 2024. The net exploratory undeveloped acreage in the Rest of South America is 17,906 km2, which mature in the period 2025-2027.
The extension of the expiring acreage that the company would be required to surrender to the relevant enforcement authority will depend on its decision to extend its exploration permit in a given area, provided that the requirements of the Argentine Hydrocarbons Law have been met, including the fulfillment of its obligations under the exploration permit relating to those areas.
In Argentina, 99.3% of the company’s proved liquids reserves are concentrated in the Neuquina (88.8%) and the Golfo San Jorge (10.5%) basins, and 94.7% of its proved natural gas reserves in Argentina are concentrated in the Neuquina basin.
Exploration & Development activity
Argentina
Exploration activities
YPF’s onshore exploration portfolio is mainly focused on high-impact projects, such as Palermo Aike, believed to be the second shale formation, located in the Austral basin, behind the Vaca Muerta formation in terms of potential, and Vaca Muerta.
The exploration of Palermo Aike, which is being developed jointly with Compañía General de Combustibles S.A (CGC) began in 2023 and continued through 2024. In 2024, the first horizontal well was drilled, completed and tested. This well featured 753 meters stimulated lateral extension with 12 frac stages. Although well productivity was low, the flowback test produced natural gas and condensate, confirming that the well is situated in the natural gas/condensate maturity window.
In the Vaca Muerta formation, in 2024, 2 horizontal wells, drilled during 2023, were completed and tested, with 12 and 13 stimulation stages, one in Paso de las Bardas Norte block where the company has an exploitation concession and the other one in the CN VII block where it has an exploration permit. Each well featured more than 1,000 meters of horizontal extension, navigating two different levels within the Vaca Muerta formation.
In 2024, in Las Tacanas block, 2 wells drilled in 2023 were completed.
In the CAN 100 block, between April 2024 and June 2024, the first deepwater well in Argentina (the Argerich well) was drilled without environmental or safety incidents. This well was located 300 km away from the Mar del Plata city’s port, in the Buenos Aires Province, at a water depth of 1,527 meters, reaching the planned total depth of 4,050 meters.
Seismic activities
During 2024, the company carried out four 3D seismic campaigns in offshore blocks in Argentina. Two 3D seismic surveys were acquired for the North Argentina basin, one of 1,500 km2 in the CAN 102 block and another one of 2,800 km2 in the CAN 114 block. Moreover, one 3D seismic survey was acquired for the Austral basin, a 900 km2 survey in the AUS 105 block and a 1,500 km2 survey in the AUS 106 block; and a 3,000 km2 3D seismic survey in the MLO 123 block located in the Malvinas basin. As of December 31, 2024, the 3D seismic surveys showed a 40% advance in the MLO 123 block, 93% advance in the CAN 102 block, while in CAN 114, AUS 105 and AUS 106 blocks the surveys were fully completed.
Development activities
Unconventional activities
During 2024 the hydrocarbon production from the company’s unconventional activities was 208.9 kboe/d (YPF net, from operated areas), representing 39% of YPF’s total production (YPF net, from operated and non-operated areas).
In 2024, YPF’s was highly active in its drilling operations at the Core Hub blocks (Loma Campana, La Amarga Chica, Bandurria Sur and Aguada del Chañar), with 11 rigs. Operational efficiencies continued to break records, with the drilling of the longest horizontal well in the Vaca Muerta formation with a total length of 8,264 meters (27,113 feet) and a lateral length of 4,948 meters (16,234 feet) in 27 days, using real time data for decision making on drilling and completion activities. The average lateral length drilled in the Core Hub blocks was 2,950 meters (9,678 feet).
Throughout 2024, 3 new facilities were put into production in the Core Hub blocks: (i) the 3N Battery, with a processing capacity of 6,000 m3/d; (ii) a second crude oil treatment plant (PTC), with a production capacity of 12,000 m3/d, both in La Amarga Chica block; and (ii) the Battery 4 in Bandurria Sur block with a processing capacity of 6,000 m3/d.
During 2024, a milestone in the development of the Vaca Muerta formation was the acceleration of the South Hub blocks (La Angostura Sur I and La Angostura Sur II in Aguada Toledo - Sierra Barrosa exploitation concession), with the drilling of a 9 PADs (groups of between 4 and 6 wells each). As of December 31, 2024, 2 PADs are producing according to the type-well expectations, while the remining 7 PADs are expected to start production during 2025. Also, in December 2024, a production treatment module, with a capacity of 2,500 m3/d, was put into production.
Regarding the North Hub blocks (Bajo del Toro Norte and Narambuena), during 2024, activities were focused on Bajo del Toro Norte block with the drilling of 3 PADs on which the delineation stage was completed, and the development stage began. On March 7, 2025, the Neuquén Province granted YPF unconventional hydrocarbon exploitation concessions (CENCH, by its acronym in Spanish) in Aguada de la Arena, La Angostura Sur I, La Angostura Sur II and Narambuena blocks.
In the Gas Hub blocks (Aguada de la Arena, Rincón del Mangrullo, La Ribera and El Orejano), the main milestone of 2024 was the startup of the Primary Separation Unit (USP, by its acronym in Spanish) in Aguada de la Arena block, which expanded the capacity by 4 Mm3/d, reaching a total capacity of 7 Mm3/d.
Conventional activities
Sur Region
During 2024, the Sur Region’s hydrocarbon production was 84.5 kboe/d (YPF net, from operated areas), representing 16% of YPF’s total production (YPF net, from operated and non-operated areas).
Oeste Region
During 2024, the Oeste Region’s hydrocarbon production was 127.5 kboe/d (YPF net, from operated areas), representing 24% of YPF´s total production (YPF net, from operated and non-operated areas).
Non-operated activities
During 2024, the hydrocarbon production of the non-operated areas was 115.3 kboe/d (YPF net, from non-operated areas), representing 21% of YPF’s total production (YPF net, from operated and non-operated areas).
During 2024, in La Calera block, the construction of the Central Production Facility I (CPF I) project finished its first stage in April 2024, and in October 2024, the start-up was completed allowing a natural gas treatment capacity of 10 Mm3/d and 4,800 m3/d of condensate. In addition, once the first phase of the construction of the Central Production Facility II (CPF II) project finishes, the natural gas capacity treatment will increase in 4.5 Mm3/d (totaling of 14.5 Mm3/d). With the CPF II, La Calera block will have a total treatment capacity of 17 Mm3/d and 9,600 m3/d of natural gas and condensate, respectively, by 2027.
Aguaragüe, La Calera and Aguada Pichana Oeste blocks are part of the Plan GasAr 2020-2024 and Plan GasAr 2023-2028 that intends to boost natural gas production in Argentina by granting competitive prices.
Rest of South America
Exploration activities
Throughout 2024 geological studies were carried out to assess the potential of the OFF 5 block, an offshore area in Uruguay, which, as of December 31, 2024, represents 16,836 km2 of YPF’s acreage.
Downstream
During 2024, the company’s downstream activities included refining and transportation of crude oil, and the commercialization and transportation of fuels, lubricants, LPG, and other refined petroleum products in the domestic wholesale and retail markets and certain export markets.
During 2024, the Downstream business segment was organized into the following divisions:
Refining & Logistics division (crude oil refining and production of petrochemical products, transportation of crude oil to refineries and distribution of refined and petrochemical products to be marketed in the different sales channels).
Midstream oil division (development, construction and operation of oil pipelines to evacuate crude oil production of the Vaca Muerta formation).
Marketing division (commercialization and marketing of refined, petrochemical and resale products).
Trading division (trading of refined products and crude oil in international markets).
In October 2024, the company initiated the drilling of the well committed in the Charagua Block, in Bolivia (in which it holds a 60% interest), which, as of December 31, 2024, is being drilled, with drilling progress of 27%.
The COR 12 and COR 33 blocks located in the Cordillera Oriental basin in Colombia, are operated pursuant to the authorization by the ANH. The company’s working interest is 60% in the COR 12 block and 55% in the COR 33 block. The combined net area of these blocks is 700 km2. In 2016, together with the company’s partners, it informed to the ANH of its decision to relinquish both blocks. In July 2022, the ANH began an administrative proceeding claiming the exploration commitments were not performed or paid. As of the date of this annual report, the company presented its defenses in the administrative process and the ANH is considering the evidence offered.
Downstream
During 2024, the company’s downstream activities included refining and transportation of crude oil, and the commercialization and transportation of fuels, lubricants, LPG, and other refined petroleum products in the domestic wholesale and retail markets and certain export markets.
During 2024, the Downstream business segment was organized into the following divisions:
Refining & Logistics division (crude oil refining and production of petrochemical products, transportation of crude oil to refineries and distribution of refined and petrochemical products to be marketed in the different sales channels).
Midstream oil division (development, construction and operation of oil pipelines to evacuate crude oil production of the Vaca Muerta formation).
Marketing division (commercialization and marketing of refined, petrochemical and resale products).
Trading division (trading of refined products and crude oil in international markets).
Refining & Logistics division
In 2024, the Refining & Logistics division was grouped as follows: (i) Refining unit; and (ii) Logistics unit.
Refining unit
The company is Argentina’s leading refiner, holding more than 50% of the country’s total refining capacity, through its 3 wholly-owned refineries (La Plata, Luján de Cuyo and Plaza Huincul refineries) which have an aggregate refining capacity of 123.3 Mbbl (337.9 kbbl/d) and are strategically located along its crude oil pipeline and refined product pipeline distribution systems. The company operates these refineries with high utilization rates.
In 2024, The company’s crude oil production represented 75.7% of the total crude oil processed by its refineries. The remaining processed crude oil by its refineries was purchased from third parties.
La Plata refinery, located in the Buenos Aires Province.
Luján de Cuyo refinery, located in the Mendoza Province.
Plaza Huincul refinery, located in the Neuquen Province.
Logistics unit
The company has available for its use a network of 5 major oil pipelines, 3 of which are wholly-owned by it. The crude oil transportation network includes 2,141 km of crude oil pipelines. The company has a total crude oil tankage of 2 Mbbl and maintain terminal facilities at 5 ports in Argentina.
The company also own 3 tanks in the Berisso City, in the Buenos Aires Province, with 90,000 m3 of capacity.
The Loma Campana - Lago Pellegrini pipeline allows for the evacuation of conventional and unconventional crude oil from the Vaca Muerta formation. This pipeline is owned by OLCLP, a company owned by YPF (85%) and Tecpetrol (15%), and is operated by a third company, Oldelval.
Additionally, the company owns 33.15% of Terminales Marítimas Patagónicas S.A., operator of 2 storage and port facilities: (i) Caleta Córdova in the Chubut Province, which has a capacity of 314,000 m3; and (ii) Caleta Olivia in the Santa Cruz Province, which has a capacity of 246,000 m3.
The company also has a 30% interest in Oldelval and Oiltanking Ebytem S.A. (OTE), operator of the maritime terminal in Puerto Rosales, which has a capacity of 480,000 m3.
The company also operates, in Argentina, a network of multiple pipelines for the transportation of refined products with a total length of 1,801 km. The company also owns 17 storage terminals for distribution of refined products and 7 LPG storage terminals with an aggregate capacity of 1,620,000 m3.
Three of the company’sstorage terminals for distribution are annexed to the Luján de Cuyo, La Plata and Plaza Huincul refineries, while 10 have maritime or river connections.
The company operates 49 airplane refueling facilities, 40 of which are wholly-owned with a capacity of 22,500 km3, 141 manual fuel dispensers and 13 automatic fuel dispensers. These facilities provide a flexible countrywide distribution system and allow it to facilitate exports. Products are delivered by an exclusive third party tanker truck fleet of 2,400 units.
Midstream Oil division
The Midstream Oil division plays a crucial strategic role in optimizing the development of the Vaca Muerta formation’s unconventional oil.
YPF holds an interest of 36% in both parts of the Trans-Andean oil pipeline (Oleoducto Trasandino Argentina S.A. and Oleoducto Trasandino Chile S.A.), which transports crude oil from Argentina to Chile. During 2024, YPF was responsible for shipping more than 5,156 m3/d of crude oil through this pipeline, which represents 45.7% of the total crude oil transported.
Additionally, YPF holds an interest of 75.2% in the transportation concession of the Vaca Muerta Norte oil pipeline (VMON), a 151 km pipeline with a capacity of 25,000 m3/d, aimed at guaranteeing the supply of the Luján de Cuyo refinery and the export of crude oil to Chile. During 2024, VMON led to the transport of 10,258 m3/d of crude oil, of which 5,895 m3/d corresponded to YPF. In the third quarter of 2024, the operation of the VMON storage and pumping station CABO NOC began, with more than 60,000 m3 of storage capacity, which represents the first project oriented to ensure storage capacity for the Hub Core.
Additionally, progress continues through the Vaca Muerta Sur oil pipeline (VMOS) aimed to export the production of unconventional crude oil from the Neuquina basin to the Atlantic coast, which will be achieved through the construction of 437 km pipeline connecting towns of Allen and Punta Colorada in the Río Negro Province, with a maximum design transport capacity of 700 kbbl/d, as well as an onshore terminal with a storage capacity of 3,774 kbbl and an offshore terminal. In the fourth quarter of 2024, YPF together with Pan American Sur S.A. (PAS), Vista Energy Argentina S.A.U. (Vista) and Pampa Energía S.A. (Pampa) signed a shareholders’ agreement to create a new company, VMOS S.A., whose main purpose is the construction of such oil pipeline.
In December 2024, Initial Shipper Transportation Agreements (ISTA) were signed between VMOS S.A., Shell Western Supply and Trading Limited, and the aforementioned shareholders or their affiliates. Total YPF’s shipping commitment is for 120 kbbl/d out of total of 450 kbbl/d committed by all the initial shippers.
Additionally, VMOS S.A. granted stock options to other companies. As of December 31, 2024, Pluspetrol S.A. (Pluspetrol), Chevron Argentina S.R.L. (Chevron), Shell Compañía Argentina de Petroleo S.A. (Shell) and Gas y Petroleo del Neuquén S.A. (GyP) exercised their respective option becoming a shareholder of VMOS S.A., signing their respective ISTA. As of the date of this annual report, YPF’s shareholding in VMOS S.A. is 26.67%.
On March 20, 2025, Resolution No. 302/2025, published in the Official Gazette, on March 21, 2025 approved VMOS S.A.’s application to the RIGI. The VMOS project, classified as a Long-Term Strategic Export Project in the oil and gas sector, will be developed in Río Negro with a base capacity of 377,400 bbl/day. The project’s RIGI adherence date was set as March 6, 2025, under the Bases Law.
In January 2024, the construction of the Vaca Muerta Centro oil pipeline (VMOC) began, which will connect the Hub Core with the town of Allen in the Río Negro Province, and which is estimated to be completed in the second quarter of 2025. VMOC will enable evacuation capacity for the oil pipelines of Oldelval and VMOS.
Marketing division
The company markets a wide range of refined petroleum and petrochemical products throughout Argentina through an extensive network of sales personnel, YPF-owned and independent distributors, and a broad retail distribution system.
YPF sells two types of gasoline: (i) Infinia gasoline, a premium 98 octane gasoline; and (ii) Super gasoline, a regular 95 octane gasoline. In 2024, the premium mix obtained (24.8%) decreased 4.2 percentage points (pp) compared to the mix obtained in 2023 (29.0%). Additionally, YPF sells two types of diesel: (i) 500 and 800 parts per million (ppm) of sulphur diesel (Low-sulphur diesels); and (ii) 10 ppm of sulphur diesel (Infinia diesel).
In 2024, YPF consolidated its leadership in digital payments, achieving that almost 4 out of every 10 transactions at its retail service stations were made through the virtual wallet of the YPF App.
In 2024, Marketing business units were grouped as follows: (i) Business-to-Customer (B2C) unit; (ii) Business-to- Business (B2B) unit; (iii) LPG unit; and (iv) Chemical unit, focusing on each kind of clients’ requirements.
B2C unit
The B2C unit focuses on delivering the best experience at the company’s retail service stations, based on sustainability, technology, and innovation. The company’s goal is to provide energy and convenience solutions to its customers in transit. The company subdivides the B2C unit into the (i) Retail unit and (ii) Convenience Store unit.
Retail unit
The company’s retail unit sells through the consignment model fuels to the retail service stations. In 2024, the company remained as the main fuel retailer in Argentina, with 31.9% of the Argentina’s retail service stations as of December 31, 2024, according to its estimates.
As of December 31, 2024, the Retail unit’ sales network in Argentina consisted of 1,680 active retail service stations, of which 155 are operated by Operadora de Estaciones de Servicios S.A. (OPESSA), the company’s wholly-owned subsidiary, 136 are operated by the Automóvil Club Argentino (ACA), and the rest are operated by third parties.
During 2024, the company continued with the Transformation of the Network project enabling the installation of a new image on 411 retail service stations (including New Full stores image).
Throughout 2024, YPF successfully renewed 94.6% of its expiring contracts with third party retail service station owners, which enabled it to maintain a leading position in the market.
Convenience Store unit (‘Full stores’)
YPF’s Convenience Store unit (Full stores) is a franchise which comprises 1,026 convenience stores. Out of these, the company operates 158 through OPESSA, while 868 are operated by third parties. YPF’s stores franchising model generates income in the form of royalties paid by stores and suppliers, materialized as a percentage of the store’s sales.
The company’s main strategy for this unit is expansion, and its objective is to transform all the retail service station stores into Full stores franchises. In 2024, the company’s CABA Figueroa Alcorta Full store (operated by OPESSA) located in the Autonomous City of Buenos Aires was granted with the Latin American Convenience Retailer of the Year Award of the National Association of Convenience Store (NACS) of the United States.
In 2024, the company inaugurated 126 new Full stores, increasing the number of stores by 14% compared to 2023.
During 2024, the company continue working towards achieving operational excellence to deliver the best service and products to its customers. Therefore, concept tests of advanced gastronomic equipment were installed in several stores to support hot & cold meals categories.
In 2024, Full stores sold 217 million units distributed in more than 2,000 stock keeping units (SKU’s). The main categories of products sold were coffee, hot & cold meals, non-alcohol drinks, convenience and kiosk products.
B2B unit
In the B2B unit, with focus on the customer, the company developed a segment and channel strategy aimed at maximizing value for both YPF and its clients. The company’s purpose is to promote efficiency in the value chain of its industry segment customers, offering energy solutions, supplies and services. Consequently, by keeping it close to its customers, the company developed innovative tailored solutions. The company subdivide the B2B unit into (i) Agriculture unit, (ii) Industry unit, (iii) Transport unit, (iv) Aviation unit, and (v) Lubricants and Specialties Latam unit.
Agriculture unit
The Agricultural unit is focused in providing fuel and lubricants to farmers but also small industries and transport companies. As a complement, it provides an extensive portfolio of products and services as fertilizers and crop protection products. At the same time, this unit has been developing and promoting sustainable agronomic practices. Its main goal is to sustain leadership in fuels used in agriculture from initial sowing to final harvesting and maintaining operational excellence throughout its network.
In 2024, this strategy was carried out through a network of 100 exclusive dealers, 6 of which are directly operated by YPF. This network is present in 19 Argentine provinces, covering all the agricultural productive areas, offering a complete agro portfolio, which includes fuel, seeds, crop nutrition and crop protection products, lubricants and ensiling bags.
In order to be a point of reference in the industry and stay close to agricultural producers, its business known as YPF Agro has sustained a constant renewed portfolio of products and commercial conditions for the exchange of grains. Fertilizer and phytosanitary products sales decreased by 24.0% compared to 2023.
During 2024, YPF Agro was able to shield its fuels volume with sales 1.8% above those of 2023. Regarding fertilizer sales, as of December 31, 2024, according to the company’s estimates, its fertilizer market share was 11.06% compared to 15.7% in 2023, as its sales decreased by 24% compared to 2023, partly due to a strong policy of reducing working capital aligned to the company’s strategy of focusing on its main markets. Regarding crop protection products, the company began a thorough change in the business model, halting imports from May 2024, and seeking to enter into a full agreement with a crop protection company to allow them to use YPF Agro dealers in exchange for an annual fee payment.
In 2024, YPF developed crop financing with instruments such as credit cards with local banks. To keep the company’s fuels positioning and volumes it accepts several types of grains as payment (bartering operations), mainly soybean, but also corn, rice, wheat, sorghum, sunflower, barley and cotton. This is a widely used form of transaction in the agricultural sector in Argentina.
Industry unit
The industry unit supplies the entire industry sectors in Argentina, which requires a broad portfolio of products and services to meet customer needs. The company supplies products, such as fuels (diesel, gasoline, jet fuel and fuel oil), lubricants, coal, asphalts, and derivatives (sulphur, CO2, decanted oil and aromatic extract), either directly from its refineries to the point of consumption through its own ground and waterway network, or through a network of 16 industrial distributors with national coverage (mining, oil and gas and asphalts).
The company’s purpose is to promote efficiency in the value chain of its Industry unit’s customers, offering energy solutions, supplies and services.
In 2024, the company supplied the fuels that third-parties DAPSA and GULF sell at their 252 retail service stations, representing 3.6% of the total market.
Transport unit
The company’s transport unit provides fuels (diesel and gasoline), lubricants and automotive urea, either directly from its refineries to the point of consumption, or through its network of retail service stations for those clients members of its business known as YPF Ruta, an integral solution for the management of all types and sizes of fleets of any activity.
Aviation unit
The company’s aviation unit provides jet fuels, such as jet A-1 fuel in 48 airports and AvGas in 38 airports across Argentina.
In 2024, the company’s sales in the aviation unit decreased by 0.9% compared to 2023, and its market share for jet fuel was 54.4%. Specifically, the company’s sales for international flights increased 7.9% compared to 2023.
In 2024, the company decided to leave the operations in the aviation unit in Paraguay and Chile, to focus exclusively on operations in Argentina.
Lubricants and Specialties Latam unit
In the Lubricants and Specialties Latam unit, the company manufactures a wide range of products including motor oil, heavy duty and industrial lubricants for commercialization in retail, wholesale and industrial markets through a grid of dealers and distributors. The company has developed its lubricants network in Argentina, known as YPF Boxes, with 426 sales points throughout the country. In the La Plata refinery, the company operates a manufacturing facility where it produces lubricants for the domestic and export markets. The company’s line of automotive lubricants, including mineral and synthetic oils, has been approved by leading global automotive and engine manufacturers, including Ford, GM, Porsche, Scania, Mercedes Benz, Volkswagen, Renault, PSA, Audi, Deutz, Cummins, Volvo, Toyota, MAN Truck, Subaru, Suzuki, Metalfor, Detroit Diesel, ZF, Allison and MTU.
During 2024, the company launched RÖD, a new line of lubricants for motorcycles, with the aim of repositioning YPF within the motorcycling market.
As of December 31, 2024, its lubricants and specialties market share was 34.4%, a decrease of 2.2 pp compared to December 31, 2023, according to the information provided by the SE.
In 2024, compared to 2023, sales of the company’s mainstream products (PCMO) line, ELAION, in the domestic market reached 9,834 m3, decreasing by 16%; sales volumes of its heavy-duty motor oil (HDMO) line, Extravida, decreased by 21.6%; and sales volumes of Azul 32, a product used in vehicles that complies with the emission standard Euro 5 to reduce gas emissions, decreased by 6.7%.
The company’s quality controls ensure that the product reaches the customer in optimal conditions and complies with strict standards. In this sense, it achieved the following certifications: (i) for lubricants and specialties, ISO 9001: 2015, ISO 14001: 2015, ISO 45001: 2018, IATF 16949-First Edition; and (ii) for Azul 32, ISO 2224. Additionally, the company obtained for Azul 32 a certification as part of the American Petroleum Institute (API)’s Diesel Exhaust Fluid Certification Program and German Association of the Automotive Industry (VDA) renewal agreement to use the AdBlue brand.
LPG unit
Through the company’s LPG unit, it engaged in the LPG wholesale business, which encompasses LPG storage, logistics and commercialization to domestic and export markets. The company obtains LPG from natural gas processing plants and refineries, as well as from third parties.
In the domestic market, the company sells LPG mainly through distributors that supply the retail market. The LPG unit does not directly supply the retail market, which is supplied by its associate, YPF Gas S.A. (YPF Gas). During 2024, the company sold 22.9% of its LPG production to YPF Gas.
The company’s main clients in the domestic market are companies that sell LPG in cylinders or bulk packing to end-consumers, also providing LPG to households in some regions. Additionally, exports in 2024 reached 376.2 ktn, compared to 246.3 ktn in 2023. The main destinations of these exports were Chile, Paraguay, Uruguay and Brazil. Transportation of LPG to overseas customers is carried out by truck, pipelines and barges.
Chemical unit
Through the company’s chemical unit, in 2024, it kept its position as one of the leading petrochemical producers in Argentina, according to the Argentine Petrochemical Institute (Instituto Petroquímico Argentino). The company’s petrochemicals are produced at YPF productive units in Ensenada, Luján de Cuyo and Plaza Huincul.
Petrochemical production operations in the Industrial Complex Ensenada (CIE) are closely integrated to the refining activities at the La Plata refinery, allowing for a flexible supply of feedstock, the efficient use of by-products, such as hydrogen, and the supply of aromatics to increase gasoline octane levels.
Natural gas, the raw material for methanol, is supplied by the company’s Upstream business segment. The use of natural gas as a raw material allows it to monetize reserves, demonstrating the integration between the Chemical unit and the Upstream business segment, while raw materials for petrochemical production in the CIE, including virgin naphtha, propane, butane and kerosene, are supplied mainly by the La Plata refinery.
In 2024, 61.3% of the company’s petrochemical sales (including propylene) were made in the domestic market, while it exported the remainder to Mercosur countries, the rest of Latin America, Europe and the United States.
The La Plata petrochemical plant in the CIE and the methanol plant in the Plaza Huincul refinery are certified under ISO standards.
Refining process of crude oil and production of gas and liquid fuels, lube base stocks and paraffin, petroleum coke (green coke) and petrochemical products in the units of refining, conversion, lube, aromatics, olefins, PIB (polyisobutene) / maleic anhydride and LAB / LAS (linear alkyl benzene / linear alkyl benzene sulphonate), methanol production and storage.
Management and development of the petrochemical business of the company, planning and economic and commercial control, commercialization and post-sale service of petrochemical products.
Production of complex aromatics, olefins, maleic anhydride, polybutenes and the provision of energy services that operate within the CIE.
Additionally, the La Plata petrochemical plant in the CIE has been certified under the program Responsible Care for the Environment by the Argentine Chamber of Chemical and Petrochemical Industry for six consecutive years (2019-2024). Responsible Care for the Environment is a voluntary program that promotes continuous improvement in areas of safety, occupational health and the environment in the chemical industry.
In 2024, the production of methanol was affected by the maintenance stoppage of the unit located in the Plaza Huincul refinery.
Trading division
The company’s Trading division sells refined products and crude oil to international and domestic customers. The company also purchases crude oil from domestic oil companies and refined products from international suppliers to meet the requirements of its own industrial system.
During 2024, the company strengthened the export of Medanito crude oil to Chile using the Trans-Andean oil pipeline, and in 2024. Additionally, the company continued with its exports of other varieties of crude oil to different destinations. As a result, in 2024, YPF became Argentina’s top oil exporter.
In 2024, the company developed different marketing actions to open new markets for the Vaca Muerta formation’s crude oil production, ending the year with the conference Medanito Roadmap to Global Markets, with the objective to promote Medanito crude oil in the international market and position YPF and Argentina as relevant crude oil exporters.
Additionally, the company exports petroleum coke mostly to Brazil and China. The company also sustained the supply of butane, MTBE and base oils to a variety of destinations.
In 2024, imports of low-sulphur diesel, gasoline, AvGas, among others, totaled 2.0 Mbbl, a 81.6% decrease compared to 2023. United States, United Arab Emirates and Italy were the main origin countries of these imports, which it purchased for the resale in the domestic market.
In 2024, imports of fertilizers and agrochemicals totaled 0.12 million tn, a 78.3% decrease compared to 2023. China and North Africa were the main destinations of origin of these imports, which the company purchased for the resale in the domestic market.
Gas and Power
Natural gas activities
During 2024, the company’s natural gas activities included the natural gas transportation and commercialization, the storage of produced natural gas, the transportation, conditioning and processing of natural gas retained in plant for the separation of gasoline, propane and butane, the distribution of natural gas through its subsidiary Metrogas, the commercial and technical operation of the LNG regasification terminal in Escobar, the separation of NGLs and their fractionation, storage and transportation for the production of ethane, propane, butane and gasoline through its jointly controlled company Compañía Mega S.A. (Mega).
Natural gas commercialization
YPF markets natural gas through long-term and short-term contracts and spot market sales, supplying residential distribution companies, power generation plants, CNG clients, and industrial and commercial clients.
Natural gas distribution
The company distributes natural gas through its subsidiary Metrogas, in which it hold a 70% stake, a natural gas distribution company located in the Autonomous City of Buenos Aires and southern suburbs of the Buenos Aires Province, and one of the main natural gas distributors in Argentina. During 2024, Metrogas distributed 6,657 Mm3 (or 235 bcf) of natural gas to 2.3 million customers. Tariffs that regulate the natural gas distribution market is determined by a complex and regulated framework.
LNG regasification
YPF is the operator of UT Escobar (a joint venture with ENARSA), which operates a LNG regasification terminal (LNG Escobar) located in Escobar, in the Buenos Aires Province. In 2024, through the conversion of LNG into natural gas, LNG Escobar terminal injected 1.6 bm3 (or 55.7 bcf) of natural gas into the Argentine distribution network. Additionally, in 2024, the company approved an addendum to the contract of the LNG Escobar terminal to extend its validity until January 31, 2027.
Natural gas transportation
Natural gas is delivered by the company through its own gathering systems and through the midstream companies such as Gasoducto del Pacífico (Argentina) S.A. (GPA) (in which the company has a 10% equity stake) and Transportadora de Gas del Sur S.A. (TGS) from each of the major basins to the TGS and TGN trunk pipelines. Additionally, YPF provides midstream services, such as natural gas transportation and processing, through its own facilities.
Natural gas storage
The company utilizes natural underground structures located close to consuming markets as underground natural gas storage facilities, storing limited volumes of natural gas during periods of low demand and prices and selling the stored natural gas during periods of high demand and prices, with the purpose of getting the seasonal price differential. In 2024, the company extracted 109.3 Mm3 of natural gas from Diadema, its principal natural gas storage facility located in the Patagonia region, near the Comodoro Rivadavia City in the Chubut Province, and sold it to its clients.
The company carries out NGLs activities through several plants for the processing of NGLs that it owns and operates, such as the Turboexpander Loma La Lata (Tex LLL) plant, the El Porton plant, the Turboexpander Loma Negra (Tex Loma Negra) plant, and through Mega, a company in which it has a 38% equity stake and it jointly control with Petrobras (34%) and Dow Chemical (28%), which operates a NGLs separation plant located in the Loma La Lata block, in the Neuquén Province; a NGLs fractioning plant, which produces ethane, propane, butane and gasoline located in the Bahía Blanca City, in the Buenos Aires Province; a pipeline that transports the NGLs produced in the Loma La Lata block to the Bahía Blanca City; and transportation, storage and port facilities in the NGLs fractioning plant, with an aggregate maximum annual production capacity of 1.6 million tons of gasoline, LPG and ethane and with YPF being Mega’s main supplier of natural gas for the development of these activities.
During the second quarter of 2024, the revamping of the Tex LLL plant was finalized and the full operation mode of the plant (LPG and gasolines recovery) began, which increased the processing capacity of the Neuquina basin by 6 Mm3/d and over 600 tn/d of NGLs, allowing the natural gas to be conditioned in order to improve the flow in the evacuation network.
Generation power activities
During 2024, the company’s generation power activities included the generation of conventional thermal electric power and renewable energy through its jointly controlled company YPF EE (commercially known as YPF Luz) including its subsidiary Central Dock Sud S.A. (CDS), and its jointly controlled company CT Barragán S.A. (CTB).
In 2024, the company participated directly and, indirectly through YPF EE and CTB, in 16 power generation plants, with an aggregate installed capacity of 4,240 MW.
In 2024, YPF EE kept its position as one of the strongest competitors in the electrical generation market in Argentina, being the biggest player in the private market (Mercado a Término de Energías Renovables or MATER) with 25.8% of the market share and holding the second place in renewable energy generation with 9.4% of the market share, as provided by Compañía Administradora del Mercado Mayorista Eléctrico S.A. (CAMMESA).
In 2024, YPF EE generated 13,236 GWh through its power plants located in Tucumán, San Juan, Córdoba, Buenos Aires, Neuquén, Santa Cruz and Chubut, presenting an increase in power generation of 14.0% as compared to 2023.
Regarding the renewable energy market, the Manantiales Behr, Los Teros I, Los Teros II, Cañadón León and General Levalle wind farms and the Zonda solar farm, all wholly-owned by YPF EE, represented 9.4% of renewable power generation in Argentina in 2024 and 9.8% of renewable electric power installed capacity as of December 31, 2024, as provided by CAMMESA.
In May 2024, the construction of the fifth wind farm, Parque Eólico CASA, to be located in the Olavarría City in the Buenos Aires Province commenced, which will have a total installed capacity of 63 MW, from which 28 MW will be allocated to the self-generating power of Cementos Avellaneda S.A. and the rest to supply the industrial demand within the MATER. This wind farm is projected to be completed and commissioned by the first quarter of 2026.
In October 2024, the construction of the second solar farm for electricity generation, El Quemado, to be located in the Mendoza Province commenced, which will have an installed capacity of 305 MW. This solar farm is projected to be completed and commissioned by the first half of 2026. Additionally, in October 2024, it was approved by the YPF EE’s board of directors the application for adherence to the Large Investment Incentive Regime (RIGI) submitted by Luz del Campo S.A., a wholly-owned subsidiary of YPF EE. Such adherence was approved by the Ministry of Economy in January 2025.
In August 2024, General Levalle wind farm, located in the Córdoba Province, started its commercial operations in stages reaching a total installed capacity of 155 MW by December 2024. The energy produced in this wind farm is delivered to private off takers under several Power Purchase Agreements in the MATER.
Fertilizers activities
During 2024, the company’s activities in the fertilizer market included the production, storage, distribution and sale of fertilizers through its jointly controlled company Profertil, one of the market leaders of fertilizers in the Southern Cone.
In 2024, Profertil produced 1.3 million tons of urea and 0.8 million tons of ammonia through its production facility in the Bahía Blanca City. Additionally, Profertil marketed other nutrients and special blends of prepared land to optimize soil performance.
Natural gas delivery commitments and supply contracts
The company is committed to providing fixed and determinable quantities of natural gas in the near future under a variety of contractual arrangements.
As of December 31, 2024, the company is contractually committed to deliver 73,020 Mm3 (or 2,575 bcf) of natural gas in the future (without considering interruptible export supply contracts), of which 25,816 Mm3 (or 910 bcf) will have to be delivered from 2025 through 2026.
On January 5, 1995, March 11, 1997, and November 13, 2001 (GSA 2001) the company committed to supply natural gas to the Methanex S.A. (Methanex)’s plant in Cabo Negro, Punta Arenas, in Chile, under agreements, of which only GSA 2001 for 1.1 Mm3/d is in force. Pursuant to the Argentine government intervention, deliveries have been interrupted since 2007.
As a result of negotiations with Methanex, YPF entered into various agreements that involved investments by YPF in hydrocarbon exploration in Chile, tolling agreements and, as of 2019, firm and interruptible natural gas supply contracts, in order to replace the commitments under the original agreements in accordance with the natural gas export regulations in force in Argentina, which include an agreement between the parties for the recovery of volumes not delivered for regulatory reasons.
YPF entered into a muti-year term firm agreement with Methanex that allows the supply of the remaining natural gas volumes originally committed under the GSA 2001 until December 2025 and the natural gas volumes agreed to be recovered with Methanex until November 2027.
In April 2023, the Argentine government called for the submission of export sales agreements in order to allow firm natural gas exports through Gasoducto Gas Andes Argentina S.A. (Gas Andes) from October 2023 to April 2024 (the volume assigned to YPF was 0.8 Mm3/d), and from GPA from October 2023 to December 2024 (the volume assigned to YPF was 0.3 Mm3/d). In September 2023, the Argentine government authorized YPF to export natural gas from May 2024 to September 2024 and from October 2024 to December 2024 for 1.5 Mm3/d.
Seasonality
Historically, the company’s results have been subject to seasonal fluctuations throughout the year, particularly as a result of the increase in natural gas sales during the winter driven by the increased demand in the residential segment. Consequently, the company is subject to seasonal fluctuations in its sales volumes and prices, with higher sales of natural gas during the winter at higher prices.
Environmental Matters in Argentina
The company and several other industrial companies operating in the La Plata City, in the Buenos Aires Province, have entered into a community emergency response agreement with three municipalities and local hospitals, firefighters and other health and safety service providers to implement an emergency response program.
The company’s three refineries are certified under the ISO 9001 Quality management systems and ISO 14001 Environmental management systems, which are regularly renewed. All of them are also certified under the ISO 45001 Occupational health and safety management systems. In addition, the La Plata, Luján de Cuyo and Plaza Huincul refineries have been verified in accordance with ISO 14064 Greenhouse gasses for the inventories of industrial GHG and have energy management systems certified under the ISO 50001 Energy management. The company’s refineries maintain their systems under continuous improvement and revision by accredited organizations.
In general, the company is subject to the requirements of the following federal environmental regulations (including the regulations issued thereunder):
Argentine National Constitution (Articles 41 and 43).
National Criminal Code.
National Civil and Commercial Code, which sets forth the general rules of tort law.
Law No. 25,675 on National Environmental Policy.
Law No. 25,612 on Integrated Management of Industrial and Service Industry Waste.
Law No. 24,051 on Hazardous Waste.
Law No. 25,916 on Management of Domestic Waste.
Law No. 20,284 on Clean Air.
Law No. 25,688 on Environmental Management of Waters.
Law No. 25,670 on Management and Elimination of Polychlorinated Biphenyls.
Law No. 27,520 on Minimal Standards on Global Climate Change Adaptation and Mitigation.
Law No. 27,566 on Access to Information, Public Participation and Justice in Environmental Matters in Latin America and the Caribbean.
These laws address environmental issues, including limits on the discharge of wastes, air emissions and liquid effluents associated with oil and gas operations, investigation, management and cleanup of hazardous substances, workplace safety and health, natural resource damage claims and toxic tort liabilities. Furthermore, these laws typically require compliance with associated regulations and permits and provide for the imposition of penalties in case of non-compliance. In addition, the company is subject to various other provincial and municipal regulations, including those relating to natural gas venting, crude oil spills and well abandonment, among others.
These laws address environmental issues, including limits on the discharge of wastes, air emissions and liquid effluents associated with oil and gas operations, investigation, management and cleanup of hazardous substances, workplace safety and health, natural resource damage claims and toxic tort liabilities. Furthermore, these laws typically require compliance with associated regulations and permits and provide for the imposition of penalties in case of non-compliance. In addition, the company is subject to various other provincial and municipal regulations, including those relating to natural gas venting, crude oil spills and well abandonment, among others.
Additionally, in 2024, the company continued its agreement with Oil Spill Response Ltd. which provides support to its Oil Spill Contingency Plan, evaluating and reducing the possible environmental impact caused by an oil spill in Argentinean sea, thus reducing the environmental impact of potential oil spills. This agreement includes technical and operational support in case of oil spills at sea caused by accidents involving tankers, facilities, terminals and ports, oil storage areas or in offshore hydrocarbon exploration and production activities. The company also keeps its agreement with Wild Well Control Inc. and Gabino Lockwood up to date, in order to be prepared for possible blow out events.
History
YPF Sociedad Anonima was founded in 1977. The company was incorporated under the laws of Argentina in 1977.
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