Ypf Sociedad Anonima (NYSE: YPF)

YPF Sociedad Anónima is Argentina’s leading energy company, operating a fully integrated oil and gas chain that spans exploration and production, refining, transportation, marketing, liquefied natural gas, and new energies activities. The company holds dominant positions in the domestic upstream, midstream and downstream sectors, as well as in LNG and integrated gas and emerging low carbon businesses. Its strategic focus is on developing unconventional hydrocarbon acreage in the Vaca Muerta formation to increase production and reserves while pursuing export opportunities for crude oil and liquefied natural gas.

Revenue is generated primarily from the sale of crude oil and natural gas produced in its upstream operations, the refining and sale of petroleum products such as gasoline, diesel, jet fuel and lubricants, the commercialization of petrochemicals and specialty chemicals for agribusiness, the provision of liquefied natural gas regasification services, the distribution of natural gas through its subsidiary Metrogas, and the generation and sale of electricity from renewable and thermal power plants. The company also earns fees from midstream activities including crude oil pipelines, natural gas storage and transportation, and from trading refined products and crude oil in international markets. Additional income comes from the sale of NGLs derived from natural gas processing and from the provision of research and development services through its Y TEC subsidiary.

The company operates through the following segments: Upstream, Midstream and Downstream, LNG and Integrated Gas, and New Energies.

• Upstream: This segment explores for and exploits hydrocarbon fields, producing crude oil and natural gas; its revenues come from selling crude oil to third parties and to the Midstream and Downstream segment, selling natural gas to third parties and to the LNG and Integrated Gas segment, and selling plant retained natural gas to the Midstream and Downstream segment; it bears all costs associated with exploration, development, drilling, completion and production activities.

• Midstream and Downstream: This segment refines crude oil, produces and markets petrochemicals, transports and sells crude oil, and commercializes specialties for the agribusiness industry and grains and their by products; it also handles natural gas transportation, conditioning and processing of natural gas retained in plant for NGL fractionation, storage of produced natural gas, and operation of the LNG regasification terminal in Escobar; revenues are derived from the sale of refined products, petrochemicals, agribusiness specialties, midstream oil and gas services, natural gas storage, and LNG regasification, while it incurs costs for purchasing crude oil from upstream and third parties, natural gas from the LNG and Integrated Gas segment, and plant retained natural gas from upstream.

• LNG and Integrated Gas: This segment transports and sells natural gas to third parties and to the Midstream and Downstream segment, separates NGLs and fractionates them into ethane, propane, butane and gasoline through its joint venture Mega, and develops LNG liquefaction capacity; revenues are earned from the sale of natural gas as a producer to third parties, to the Midstream and Downstream segment, and to the Metrogas subsidiary within the New Energies segment, while it incurs costs for purchasing natural gas from the upstream segment.

• New Energies: This segment defines and develops the new energy portfolio and sustainability programs, distributes natural gas through the Metrogas subsidiary, provides research and development services via Y TEC, and generates conventional thermal and renewable electricity through joint ventures YPF EE and CT Barragán; revenues are mainly derived from natural gas transportation and distribution services to third parties through Metrogas, and it incurs costs for purchasing natural gas from the LNG and Integrated Gas segment.

YPF holds the top position in Argentina’s energy sector, being the largest producer of crude oil and natural gas in the country and one of the leading shale operators outside the United States. It operates more than half of the nation’s refining capacity through three high utilization refineries that run at elevated utilization rates and maintains a nationwide retail and wholesale fuel network with a market share exceeding half of domestic liquid fuel sales. In addition, YPF is the leading natural gas distributor via its Metrogas subsidiary, a major power generator through its renewable joint venture YPF EE, and an integrated participant in the gas and power value chain, which together provide competitive advantages over both international and domestic competitors such as ExxonMobil, TotalEnergies, Chevron, Pampa Energía and Pan American Energy.

The company serves a diverse customer base that includes residential households, industrial users, power generation plants, compressed natural gas consumers, agribusiness firms, aviation companies, and international traders; specific counterparties mentioned in the filing are Metrogas, the Mega joint venture, YPF EE, CT Barragán, Profertil, Y TEC, and Aerolineas Argentinas S. A., as well as numerous wholesale and retail fuel distributors throughout Argentina.