YPF

Hello, everyone. Thank you for joining us, and welcome to YPF first quarter 2026 earnings presentation. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Margarita Chun, Investor Relations Manager. Margarita, please go ahead.

Good morning, ladies and gentlemen. This is Margarita Chun, YPF's IR Manager. Thank you for joining us today in our first quarter 2026 earnings call. Before we begin, please consider our cautionary statement on slide 2. Our remarks today and answer to your questions may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks. Our financial figures are stated in accordance with IFRS, but during the presentation, we might discuss some non-IFRS measures, such as adjusted EBITDA. Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marín, our Finance Vice President, Mr. Pedro Kearney, and our Strategy, New Businesses and Controlling Vice-President, Mr. Maximiliano Westen.

During the presentation, we will go through the main aspects and events that shape Q1 results, and finally, we will open the floor for Q&A session together with our management team. I will now turn the call over to Horacio. Please go ahead.

Thank you, Margarita, and good morning, everyone. We are glad to report a robust beginning of the year across our key operational and financial metrics, delivering on our ambition and guidance for the year. Let me translate the key milestones of the quarter into numbers. Revenues were $4.95 billion, growing 9% quarter-over-quarter, primarily explained by the rising trend of international prices since March, coupled with our policy to align domestic prices of gasoline and diesel with international parities. On a yearly basis, revenue increased by 7%, reflecting a strong local fuel demand and record high refinery processing level. Adjusted EBITDA for the quarter amount to nearly $1.6 billion, represented the highest first quarter level in YPF's history, with an outstanding margin of 32%.

This represents an increase of 24% and 28% on a sequential and interannual basis, materially exceeding revenue expansions. The main factor that explained this growth was higher shale oil production, improved pricing dynamics, and the cost matrix transformation of the upstream segment, now focused on the shale business. On the production side, our shale oil output reached 205,000 barrels per day. That mark represents an increase of 5% versus last quarter and a remarkable growth of 39% against a year ago, representing 76% of our total oil production. This milestone positions us on track to achieve our full year target of approximately 215,000 barrels per day with a December exit rate of 250,000 barrels per day. Let me highlight several operational efficiencies achieved during the first months of the year.

First, we set a new fracturing record during the first quarter, pumping continually for almost 110 hours and completing 52 stages in less than 5 days on a pad at Loma Campana field. Moreover, in April, we signed a strategic agreement with the service company Halliburton to incorporate 4 fracturing sets in Vaca Muerta through a new electrical fracturing technology. This new contract transformed YPF into the first company outside the U.S. to develop this technology, improving efficiency by reducing the use of diesel engine, saving costs of the operation. In terms of investment, we deployed nearly $1 billion during Q1, with 78% allocated to our conventional operations. On a sequential basis, CapEx decreased by 10%, primarily due to increased maintenance activities in the downstream segment during Q4 2025, and it's a lower pace of investment in upstream facilities.

Interannually, the lower investment is explained by the reduced exposure to conventional assets and the impact of one-off item booked last year to secure several unconventional concessions. Consistent with the production expansion expected for the rest of the year, we expect to accelerate capital deployment in the following quarters, reaffirming our guidance of the year in the range of $5.5 billion-$5.8 billion. Finally, let me point out that a standout result of the quarter was our free cash flow, which read an outstanding $871 million. This mark represented an improvement of $1.8 billion against a year ago. This exceptional cash generation was supported by our strong operating performance and the collection of a strategic M&A proceeds of around $500 million.

As a result, our net levered ratio improved to 1.57x, down from 1.9x in Q4 2025. Let me recall that in Q3 2025, we reached the peak of 2.1x, driven by the M&A of buying new Vaca Muerta assets. Before moving into the financial detail of the quarter, I would like to address a significant commercial decision announced at the beginning of April regarding our local fuel pricing strategy. Due to a sharp increase in international prices, driven by the ongoing conflicts in the Middle East, during March, we were able to largely pass through this increase at the pump. However, in the last week of March, demand began to show signs of contraction for the first time in a while, particularly in gasoline.

In response, in April, YPF decided to temporarily postpone further pass-through of international prices increases to customers for a period of 45 days. This mechanism operates as a buffer, enabling the reduction of the gap between local prices and import parities after this period by recovering the buffer compensation through additional pump price. Importantly, let me clarify that this decision was made proactively with our own initiative by analyzing supply and demand by our commercial real-time intelligence center without any government interference and was subsequently adopted by all major operators in the industry. The final objective of this commercial decision was to mitigate potential adverse effect in local demand while reaffirming our import parity strategy in a free market environment. It's also worth noting that during April, YPF maintained a very competitive fuel price level.

Moreover, in April, according to our preliminary figures, our Midstream and Downstream segment reached a very healthy adjusted EBITDA margin of around $24 per barrel. The 45-day period will end around mid-May, at which point we will assess the evolution of Middle East situation, international prices, domestic demand, and microeconomic condition. I would like to dedicate a few minutes to share with you the successful development of La Angostura Sur, a block that, in our view, perfectly captures what YPF is capable of when we combine operational excellence with a strategic vision. Just 18 months ago, La Angostura Sur produced 2,000 barrels per day of shale oil. Today, it's producing approximately 55,000 barrels per day. This remarkable ramp-up is roughly 25x growth in one year and a half.

La Angostura Sur is now ranked as the number 5 Vaca Muerta block, and it currently represents approximately 25% of YPF total shale oil production. What makes this block even more compelling from an investment standpoint is its economics. With a break-even price below $40 per barrel, lifting cost of around $3 per barrel, and a development level of approximately 19%, there is substantial upside ahead, and an unconventional concession value through 2059. Our plateau target for this block is approximately 100,000 barrels per day. We have 100% of the equity stake in La Angostura Sur. This means YPF capture the full value of this world-class asset. La Angostura Sur is not just a production story, it's a proof of concept. It demonstrated YPF's ability to rapidly develop Vaca Muerta at scale with capital discipline at competitive cost.

We are committed to replicating this model across our portfolio. Now, I turn the call to Pedro to analyze in detail our financial results.

Thank you, Horacio, and good morning to you all. Let me walk through our consolidated financial results for the first quarter of 2026. The headline is clear: This was a quarter of exceptionally strong free cash flow, which drove and accelerated the leveraging of our balance sheet, fueled by strategic M&A collections and a strong adjusted EBITDA. As Horacio briefly explained, M&A activity resulted in a net contribution of $504 million to the cash flow of the quarter. This was mainly driven by the final proceeds from the Profertil divestiture, totaling approximately $410 million. Additionally, during the quarter, we received about $85 million as partial payment from the sale of the conventional Manantiales Behr field. Total price of this field amounted $410 million, with an earn-out of up to $40 million.

The remaining balance is expected to be collected throughout the rest of this year, 2027, and 2028. These proceeds were partially offset by an initial payment of $16 million related to the acquisition of a portion of Equinor assets in Vaca Muerta through a joint venture with Vista Energy, which was closed yesterday and resulted in a total price of around $204 million. Together with upcoming divestment of Metrogas and the remaining conventional assets from the Proyecto Andes program, these transactions will further strengthen our financial position and provide greater flexibility to focus on our most profitable core business, Vaca Muerta. The solid free cash flow evolution was also driven by our outstanding performance in all our operations, navigating international volatility and profitable margins and cost efficiencies, as well as operating refineries at full capacity and continually expanding our shared operation.

The higher first quarter adjusted EBITDA comfortably covered investment and interest payment of the quarter. This substantial improvement in operational cash flow for the quarter led to an increase in the company's liquidity, which ended at $1.7 billion as of the end of March 2026, representing an improvement of $500 million during the quarter. Turning to our financial situation, let me highlight that YPF's balance sheet is on a strong and improving trajectory with a solid liquidity position and very manageable debt maturities. In terms of financing, we reconfirm our strong access to the capital markets by raising in the first quarter, nearly $1 billion across international and local markets, as well as bank credit facilities at attractive financing costs.

In the international capital market, during the first quarter, we successfully re-tapped our 2034 bond, adding $550 million at a yield of 8.1%, representing the lowest rate secured by YPF in the international market in the last nine years. Moreover, we have been very active in the local capital market during the first four months of 2026. We successfully issued around $285 million in 2 local U.S. dollars MEP bonds, $161 million at a 3-year tenure with a yield of 6.5%, and $122 million at a 4-year tenure with an outstanding yield of 5.5%.

Regarding financial and trade-related loans, in February, we were able to partially refinance a local syndicated loan for $176 million, extending additional 36 months its average life. Moreover, this financing strategy, combined with a significant positive free cash flow generated in the first quarter, enabled the company to proactively refinance existing facilities. During the first four months of the year, we prepaid approximately $750 million in debt obligations scheduled to mature between the remainder of 2026 and 2028, optimizing our capital structure and lowering our average cost of debt.

Looking at our debt maturity profile, the remaining maturities for 2026 total approximately $1 billion, primarily composed of around $600 million in local bonds, of which we have already proactively repurchased $100 million as a hedge strategy of our liquidity position, around $300 million of international bonds, and the rest corresponding to other local debt. We are well-prepared to meet our debt obligations for this year, supported by the substantial liquidity generated during the first quarter at $1.7 billion. Finally, it's worth noting the evolution of the company's net leverage ratio. As of the end of the first quarter, our net leverage ratio stood at 1.57x, down 25% from its peak of 2.1x, reached in the third quarter of 2025.

The trend is clearly positive. We expect continued improvement throughout the year as cash generation remains strong. I am now turning to Max to go through our operational performance.

Thank you, Pedro, and good morning, everyone. Let me start by taking a closer look at our upstream performance. Shale oil continued achieving new record high levels in the 1st quarter, reaching 205,000 barrels per day, a 5% sequential increase and a 39% year-over-year improvement. As Horacio mentioned before, this achievement was primarily driven by the outstanding performance of La Angostura Sur Block, which has shown exponential production growth in the recent months. These production levels are fully aligned with our plan, keeping us on track to meet our production targets of the year. The strong shale oil production growth fully offsets the continuous divestment from conventional oil fields, which declined more than 45% interannually, recording 66,000 barrels per day in the 1st quarter.

On a pro forma basis, excluding the recently divested assets, Manantiales Behr, Malargüe, and Tierra del Fuego blocks, our conventional production would have averaged only about 35,000 barrels per day by March. As a result, we continue delivering meaningful savings across our cost matrix, demonstrating a remarkable 42% year-over-year reduction in our upstream lifting costs, which dropped to $8.8 per BOE in the first quarter. Excluding divested assets, pro forma lifting cost would have averaged around $8 per BOE. Zooming into our shale oil hub blocks, lifting costs reach best-in-class levels of $4 per BOE, primarily driven by significant cost efficiencies in pulling activities, especially in the Loma Campana Block, as well as the growing share of La Angostura Sur blocks in our production portfolio, which notably has a lifting cost of around $3 per BOE, the lowest among all YPF fields.

On the other hand, the natural gas production averaged 32.8 million cubic meters per day, down 12% year-over-year, mainly reflecting our continued exit from mature conventional fields, partially offset by shale gas expansion. Finally, let me highlight that on April 23rd, 2026, the shareholders' meeting of VMOS approved the allocation to YPF of 44,000 barrels per day of additional available capacity of the pipeline. With this decision, YPF's stake in VMOS increases from around 25%-30%, which is key to supporting the company's production growth in the coming years. In addition, Oldelval is expected to expand its transportation capacity by roughly 150,000 barrels per day by year-end through upgrades to pumping stations and using polymers.

Of this incremental capacity, YPF will hold around 40,000 barrels per day and will support higher volumes of YPF's shale oil to our La Plata Refinery. Overall, these results reconfirm our upstream strategy robustness, shale oil driving higher efficiency by reducing lifting costs and sustaining a more resilient production output. Now, let me share the progress achieved in terms of productivity and operational efficiencies in our upstream segment, where the continuous improvement in drilling and completion efficiency has positioned YPF as the best-in-class operator in Vaca Muerta. Our drilling speed in our shale oil hub reached 364 meters per day in the first quarter, reaching a 12% improvement compared to 2025.

Moreover, our unconventional fracturing speed amounted to 11.2 stages per set per day, growing 15% compared to 2025, supported by a 10% increase in pumping hours to an average of 18.5 hours per day in the first quarter. This performance reflects lower non-productive time and greater operational consistency. In this sense, let me highlight that in January, we drilled a new horizontal well in just 10 days in La Amarga Chica Block, reaching a drilling speed of 520 meters per day. Faster drilling and fracturing means more wells completed in less time, which directly translates into faster production ramp-up and lower costs per well. One of the most important efficiency levers we have been developing is the transition to longer horizontal well design.

We have moved from a standard horizontal length of around 3,000 meters in the previous years to nearly 3,450 meters in the first quarter of 2026. We would like to highlight the continued strengthening of our relationships with key suppliers. In this context, in April, we signed a 5-year contract with Halliburton for electric fracturing services, combining electrification and automation to boost efficiency, maintaining greater operational consistency, and helping to reduce emissions intensity. Moving to our midstream and downstream segment, our processing levels averaged 344,000 barrels per day in the first quarter, growing by 3% sequentially and 8% interannually, and setting another record high processing level. This exceptional performance was coupled with record production of premium gasoline and middle distillates, allowing us to avoid imports, supply local peers, and export to neighboring countries.

Regarding domestic sales of gasoline and diesel, dispatch volumes declined by 3% quarter-over-quarter due to seasonality. On a year-over-year basis, gasoline and diesel volumes grew by 8%, supported by stronger demand across all commercial segments, particularly in the agribusiness. As a result, we maintained a solid 57% market share fully in line with our historical levels, which increases up to 60% when including gasoline and diesel produced by YPF and dispatched through third-party gas stations. Turning to our pricing strategy, local fuel prices increased by 12% sequentially, primarily reflecting the rally in international reference prices that began in March, which were largely passed through the prices at the pump.

Importantly, as Horacio explained earlier, fuel demand during late March fell by 10% approximately compared to early March, which supported our decision to temporarily delay further pass-through of international price increases to the local market for 45 days. In addition, following the price adjustments recorded in March, during April, fuel prices remained competitive. Lastly, our midstream and downstream adjusted EBITDA margin remained strong at $19.1 per barrel in the first quarter. This margin further strengthened to about $24 per barrel in April, driven by elevated processing volumes and the effective pricing strategy outlined earlier. I am now turning to Horacio for updates regarding Argentina LNG and final remarks.

Thank you, Max. Finally, let me share updates on the LNG projects, the most transformational initiative in YPF's history that is making solid progress on all fronts. Regarding the CESA tolling phase, in which YPF holds a 25% equity stake, during the first quarter, CESA signed an SPA for an LNG supply partnership with SEFE, an international energy company based in Germany. This strategic agreement covers a period of 8 years for 2 million ton per year starting in late 2027, representing around 30% of CESA total capacity, which correspond to the total capacity of the first vessel, Gimi. In parallel, CESA award the engineering and construction contract for the 480km gas pipeline, and has been advancing on the project finance of the project.

Turning to Argentina LNG project, as flagged on our previous earnings call, this project contemplates the development, design, construction, and operation of a fully integrated LNG condensate and NGL facilities. The founding partners are YPF, Eni, and XRG, an international energy investment arm of ADNOC. The project contemplates a total investment, excluding the upstream segment, of approximately $24 billion, which includes the financial cost associated with the funding structure. These figures constitute an upward adjustment versus the most recent CapEx disclosed during the Q4 2025 result presentation. This adjustment reflects a strategic reallocation of investment between the upstream and midstream businesses, further optimizing the aggregate CapEx of the integrated project. Since the beginning of this year, we have been actively advancing the project financing process. In this context, we conducted a comprehensive market sounding exercise to assess investors' appetite. The response was very strong.

When interested from approximately 50 institutional investors and cumulative initial appetite exceeding the project financial requirement, reaffirming the project financial viability. In addition, during the quarter, we have been diligently developing both our commercial and procurement strategies. On the commercial front, we launched a competitive bidding process, and the market response was very positive, far exceeding our initial expectation and demonstrating robust demand. On the procurement side, we are actively advancing the engineering phase for the various procurement packages required for the project. Our goal is to ensure that all necessary preparation are in place to enable a final investment decision by year-end. Moreover, last month, the province of Neuquén approved the assignment of Pluspetrol 50% interest to YPF in the three wet gas block identified to develop the Argentina LNG project.

Finally, I would like to emphasize that YPF continue to lead the key infrastructure debottlenecking initiatives required to fully monetize the vast shale oil and gas resources of Vaca Muerta, one of the world's most competitive basins in terms of breakeven prices. In this context, YPF was awarded the Argentine Country Brand Certification, recognizing the company's role as a key contributor to the country's productive development and its international positioning. This distinction underscore YPF's contribution to reinforce Argentina's global image and supporting the attraction of long-term investment. With this, we conclude our presentation and open the floor for questions.

We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Michael Furrow with Pickering Energy Partners. Your line is now open. Please go ahead.

Hello, and good morning. Thanks for having us on the call and for taking our questions. Horacio, I was hoping to get your perspective on the local service market in Vaca Muerta. The play is attracting more international attention. I think YPF is in a good position to offer some insight after signing the recent deal with Halliburton. We've noticed several U.S. oilfield service companies mention South America and Argentina specifically, as emerging markets for their businesses on recent conference calls. My question is, are you actively seeing new entrants, and do you think that this is resulting in a more competitive service pricing environment? If not, what do you think needs to change before more service providers feel comfortable with Vaca Muerta and Argentina in general?

Great. Thank you very much. First, I would like to say that today is Pedro's birthday and also my birthday. You have to be very polite with us, okay. Because it is our birthday, okay. Okay.

Happy birthday to both of you.

Thank you for your question. Thank you very much. Thank you very much. 63. I was born in 63, okay? It's a special day today, yeah? You have to use 9, okay? Okay. Yes. In the service contract and the unique cost, I think next quarter you will see a reduction in our cost because we make a very, I would say, strong, I don't know if that is exactly the question, a strong meeting with all the international service companies. We get very good reduction because it's illogical, because Argentina is a new country. It's business friendly. There was a big reduction. This week I was also in United States trying to convince service company to come Argentina. We need more competition.

You know, learning U.S., to reduce the price, there is two ways. One, by competition, big competition. The second one is to take one out. If they are three, two. If two, one. If they are four, three. They are four, two. We did that process, and we were very success for the shareholders' value. For this year, we are going to improve. In December, you will see 19 rigs. We secure all the rigs. Also, we secure all the fracs fleet. Now we are working for next year also. We are importing the last technology equipment from U.S. Halliburton is trying, it will be in Argentina, the first electrical frac fleet. Our real-time intelligent center is working very well and improving a lot.

We really need good equipment with technology because is the one that we are investing, the one that we see that we are improving a lot every quarter. We have also a procedure to improve our standard times in all drilling and completion by the rig flooring automatically. Every quarter when it's finished, the people in YPF will know that we have a new standard and are always more challenging than it was before. That is the way that we work. I hear your question, that we try to come a more service company. We are working that service company is more service company United States have to be in joint venture with Argentine companies to improve the quality and the, how you say it? The efficiency.

We know that every tomorrow must be better than today. Tomorrow we have to be more efficient than yesterday. That is the way that we work in YPF.

Thank you for the context. As a follow-up, I'd like to ask about the concession sales that Neuquén province is offering in August. Particularly interested in your opinions on the prospectivity of the northern acreage given YPF's adjacent position and knowledge of the area. Without giving away too much information, are there certain blocks that YPF is interested in, or is the company comfortable with the current asset portfolio?

In the north we have, sorry, yes. You know that we have what we call north hub core and south core. South core, we have all that, we are going to present Vaca Muerta I think next week. This is the big Vaca Muerta. For the north, we are working, we have more partners. In the south, we are 100%. We are working with our partners to have the Vaca Muerta and to start. After that, we have always to make our projection and to have the best value for shareholders is a mixture between the capital that we raise from partners and 100%.

In that way, we always try to put the maximum or the optimum way of making value for you, for shareholders.

All right. Thanks for your time. Hope you and Pedro have a nice birthday.

Okay.

Your next question comes from the line of Daniel Guardiola with BTG Pactual. Your line is now open. Please go ahead.

Good morning, Horacio, Pedro, Marga, and Maxi, and thank you for your presentation. I have a couple of questions from my end. One is on prices. I see that the quarter somehow benefited from a sharp increase in oil prices in March, but I get the feeling that much of the pricing benefit in both upstream and downstream appears to be delayed. I wanted to ask you, in the case Brent remains high as it is today, above $90, how quickly can you guys now pass through price changes domestically under the current market framework? It would be awesome if you could please provide some sensitivities in terms of your EBITDA generation for 2026 if oil prices range in 2026 around $80-$90. That would be my first question.

My second one is on the lifting costs. We have seen a very sharp decline in lifting costs, declining 42% year-over-year. Of course, we are seeing a more efficient structure in the core hub, in the shallow core hub. I want to ask you how much further room you think there is for structural reduction, especially considering that the company is transitioning from conventional assets towards unconventional assets, but at the same time, higher oil prices are perhaps creating inflation pressures in Vaca Muerta. Those will be my two questions. Thank you, guys.

Great. Thank you for your questions. The first one, I don't know if I agree with you that this at the core is only because of the sharp increase in prices during March because looking in detail, you will see that there's a big difference because our strategy to be more unconventional. That is in your introduction. I will answer the question. I'm not worried what in the prices that you are saying, that if it remains in $90 or if it's going to $80 or $90, we are very okay, and we can quickly pass through the prices. No, I don't see that problem. I will not say what is our price today because it's a, you know, that it's a buffer.

I prefer not to say because of the competition, even that everybody, we are doing the same. I don't see at all that it will be a problem for us if we are the price of Brent remains in the order of 90, so it remains in the 80-90 range. For the second question, We are really working very, very hard, people in YPF, always trying to optimizing. That's why you can see the big difference in both upstream and downstream during those years. And I don't take on account what you are saying, why you say inflation pressure. I don't know what you are talking about because a country with is okay, and that means that we are improving in the country. We're not arguing on that.

My job is to work and be always more efficient. Really you see that we are reducing the lifting costs. Also if you see how we are developing the way of developing. You see, how Vaca Muerta and YPF was increasing, and you compare the way that we are developing now, is totally different. We are growing very fast, we can reach a better efficiency. We have also in our operation, I would say, very sophisticated real-time intelligence center for the operation. We can see everything. We have drones, we have everything on that.

We are improving a lot every time that every day that we are there, every month that we are following the prices is already the management control. We see that all the KPIs go in a good direction. I'm positive the way that YPF quarter-over-quarter are doing their job. We are very proud of why we are reducing, and we are going to reduce more. We have very low now, very few asset in conventional, and our idea is to try to sell out during 2026 and be an special company. We'll be selling conventional integrate company.

Your next question comes from the line of Bruno Montanari with Morgan Stanley. Your line is now open. Please go ahead.

Good morning. Thanks for taking my question, and happy birthday. The first question is about the LNG project. You do mention you have the two foundation partners, Eni and XRG. I'm wondering if on the back of all the energy security and the conflict in the Middle East, YPF is seeing now interest of potential additional partners coming into Argentina LNG, and potentially making it viable, discussions about the potential expansion of 6 million tons per year. That is my first question. My second question is about the drilling pace, drilling completion pace in the first quarter now. There seems to have been a temporary slowdown in the beginning of the year.

I do understand you are reiterating all the production guidance. I just wanted to have more color, on what happened specifically in the first quarter that led to a slower, activity level. Thank you very much.

Okay. Thank you very much. With the LNG, we are working the three founders. In fact, today we are in Milan, the three teams working very hard to finish all the contracts because our idea to be in the VDR as soon as possible for a project finance. Really, we don't need another partner, could be potentially another one. We are working the three, and we are very proud of what we are doing. What we think, from my point of view, I think from the conflict of Middle East, there are two things that is happening. They are speeding up. There is more appetite for finance our project.

This is a very, a big and robust project. It's, it's one of the various profitable projects in the world today. The other thing that I see is that is going. That is my point of view, that it's going to speed up a lot what we call the expansion. I think the expansion, it will be quickly than we thought before. Maybe we can make like one. I don't say one, but it will be speed up a lot. There is also before the conflict, we have a lot of appetite from off-takers, and we see good, I would say, good, not contract, good negotiation with the possible off-takers.

We are in very good moment and very good path for to have a FID at the end of the year. I'm very happy on that. In the second part, the slowdown in the drilling and completion, I would pass to Max Westen, but I will tell you that it's a question of a bottleneck that is in our infrastructure. Next year, we will not see that anymore. You will see an improvement, incremental production month by month. To there, you have to take into account there was a big change in the system. I pass to Max.

Thank you, Horacio. Hello, Bruno. How are you? No, there wasn't a slowdown. What happened is that what we've did in the first quarter compared to the fourth quarter last year is that we drilled longer lateral wells about as an average 6% higher and longer laterals compared to the fourth quarter. We've drilled pretty much the same amount of wells. On top of that, there was an effect that at the end of last year, during the fourth quarter, we've there was a window where in which we've accelerated our plan of reducing our DUCs that we had, the drilled and completed wells. We had some extraordinary CapEx at the fourth quarter to reduce DUCs.

Over the first quarter, we've drilled longer lateral wells. What I can tell you is that we are maintaining our production targets for this year, and you will see a ramp-up in the level of activity starting next month, with Horacio Marín commented this, going up to 19 rigs at the end of the year. We've did that at the pace, at the correct pacing because there's not much more that we can evacuate until VMOS is COD. That's our, that's our plan.

Perfect. Thank you very much.

Your next question comes from the line of Vicente Falanga with Bradesco BBI. Your line is now open. Please go ahead.

Hi, Horacio, Pedro. [Foreign language]. Thank you for taking my question. I had one. YPF has, now been very successful in accelerating the de-risking of the southern cluster. I was wondering, what is the timeline for the northern cluster, in terms of development? What are the key milestones, we can expect for the next couple of years maybe? Thank you very much.

Hello, Vicente. As I tell before, the north part is not where we are in 100%. We are now negotiating with our partners. I'm very positive that we will reach very soon a development phase on how to develop. After we present, we will present the rig. For sure next year we will start the risking that part. We need that because at the end of that, we have to develop very well all that not to have challenges, and also to go to the places where we make more value for us to the shareholder.

Thank you very much.

You need more details?

Your next question comes from the line of Andres Cardona with Citi. Your line is now open. Please go ahead.

Hi, good morning, Horacio Marín. Happy birthday. What unexpected synergy here. One quick question about the productivity of La Angostura Sur. How does it compare with your key Vaca Muerta fields and versus your initial expectations? Do you think there is upside on the numbers on the south hub? How many acres and drilling locations do you have in this new developing area? Thank you.

Okay. In general, the productivity that we have in last, like a hardcore, is very good. Also you can have better results comparing with the history, because now we have more lateral is longer. We have more efficient on that, okay? The all that we call, what we call the south hub, because it is 100% of YPF, it will be very productive, very profitable. It's extremely good. We have a lot of work to do. You will see next week the rig. There will be the order of 1,200 plus location to drill.

They will be very important for the incremental production that we have in the long term for our peak production in the beginning of next decade. You say also about the possibility of the timing of the 6 million. That is something that we have to discuss with the partners. I have the idea. I will start discussing, I prefer that we are very good partners that the three of them same moment say that. In my point of view, because they are of us, of course, is the Argentina LNG, that they will be sped up. Sorry not to answer.

I don't like also to not answer questions, but I think I have to be a very good partner with them.

Thank you.

Your next question comes from the line of Leonardo Marcondes with Bank of America. Your line is now open. Please go ahead.

Hi, everyone. Good morning. Thank you for picking my questions. Happy birthday to you guys as well. I have two questions from my end. The first one is related to the inclusion of the upstream projects into the RIGI framework, right? My question is, what blocks do you expect to register for RIGI? How should they change your drilling plans in the middle term, right? My second question is regarding the LNG project. It seems that you guys have implemented some changes since the last quarter, right? Because as we compare both presentations, we see that CapEx for phase one have increased to $24 billion from $20 billion. Now you're contemplating what seems to be two pipelines, right? I mean, one for wet gas and one for C5+.

If you could walk us through these main changes here, it would be great. Thank you.

Okay. Thank you for the question. The first one, we are going to include all the possible blocks that can be applied to RIGI. Okay? The RIGI, because it's the same for everybody, all the blocks, they will not change the relative reference for one to the other. They are not going to change our drilling plan. Also our idea was always to develop quickly. Maybe we can because of the RIGI is very, makes simple. They could speed up our peak. That we are going to show big detail in the next investor day that we are going to travel to New York in April, and you will see the big difference.

You have expected next year because of the difference of prices in this year and the rate and all that. I'm very positive that you can see there a speed up of our program. For the second part, maybe, we were not clear with that maybe to make a key decision for us because there was no changes because it could be confuse you because we put 24-20, but this is same. I explain why. With all the partners in the engineering part, we follow and see in big details all the projects, and we realized that it will be more profitable.

It would make more all the plant is still to be in the separation plant in Neuquén, is there will be the first phase, and after there will be regulate the road directly to the port, and there we make a big plan. It was a shift of investment from what we call upstream to, let's say midstream or midstream plus downstream. That is the difference. The other difference that we see from the beginning that you have now, the gas, the gas pipeline will take a lot of that, but the rest of it is a Y-grade. That they go all condensate, plus all the different liquids. After in Río Negro, they're going to separate the NGLs more.

There will be three products out, what is the gas for LNG, NGLs for export, and also the liquids of the oil for export. That is the difference. Really there is not a more cost. I would say that it's less cost than we thought because we were not clear when we talk about there was in the upstream, because the upstream is not in project finance in general. You will not see all the hitting on that. That is not the big. I would say that it's better than before, but you see in the project finance $4 million more, okay? Maybe it was our fault. Apologize. Okay.

Your next question comes from the line of George Gasztowtt with Latin Securities. Your line is now open. Please go ahead.

Hi, good morning, and happy birthday to you both. I was wondering if you could please unpack the 102% refinery utilization in 1Q, and how sustainable that is. Relatedly, how are fuel inventories running so far in 2Q, and do you think you'll be able to sell some to other refineries again? Thank you.

Okay. Thank you. Yes, it's sustainable because we made in YPF, the people of downstream made excellent efficiency without big investments. That is sustainable. The only day when there is quarter that you have to make a stoppage, for sure it will be lower. If not, I would say there could be that number including more, okay? We are, all the transformation that people from upstream made in YPF in the last two years, you see that YPF used to import, and now it's not importing anymore. Also we sell to the domestic market when the other make the stoppage. Also we export for the neighborhood countries, also we can sell diesel for electric generation.

There is big change in YPF, is good news for the shareholders.

Thank you.

Your next question comes from the line of Claudia Rivera with Santander. Your line is now open. Please go ahead.

Hi, good morning, YPF team, and happy birthday to both. My question is, given Brent prices have remained above $100, how should we think about downstream margin dynamics in the second quarter? Do you expect to pass through higher crude costs into domestic pump prices? What will be the timing and pass-through dynamics look like?

If the Brent has remained above $100, you are saying some sensitivity we are talking? The margin of dynamic or the margin of boundary will be more than $3 per barrel. This excellent margin. I answered your question. There I don't, I don't know whether it will be 100, 90, 80. I have no idea when the conflict or the it's going to stretch. It price on its own, it will be open. We have a real policy of import price of international prices, we are going to pass on. The question why we didn't pass through, because we saw the demand going. It was a question of demand and supply.

It was reducing the demand so fast in the last two weeks there for that to improve was worse for YPF and for the shareholder than to make like a buffer. After the buffer, we see also instead of the demand going down, instead going up. Why? Because people were without uncertainties because when you have one week that it was 90, the other 100, 110, 112, it was like it make uncertainty for the consumers. At the end, we are going to pass through the dynamics, and also we have I would say an account that we see how much we have to take out the dynamics of the conflict is on. Okay? It's our policy and it will not be a problem.

I don't see a problem to pass through.

Perfect. Thank you very much.

Your next question comes from the line of Matías Cattaruzzi with AdCap Securities. Your line is now open. Please go ahead.

Hi, Horacio, Pedro, and Max. Happy birthday to you both. I have a few questions. First, and a simple one, what's gonna happen after the fuel freeze after May 15th? Then, in your 2026 guidance, of CapEx, you guided to a neutral to slightly negative free cash flow, at a Brent of $63-$65, and now we are well over that range. Is your CapEx gonna change? You got the infrastructure constraints. We are seeing a really low CapEx in the first quarter. Can you guide us through what's gonna be 2026, and then what's gonna be 2027? Then I got an additional question about the acquired capacity at VMOS.

Can you tell us if it's going to affect the production curve in 2026, if you're going to expect a higher ramp in the beginning and middle of the year?

Okay. First question. Beginning of next week, we are going to have a big meeting in YPF between us. We will decide what will happen after May 15th. We are going to communicate what the decision that we are going to make. Okay? I think I answered you what happen after May 15th in the previous question that they asked me. About the 2026 guidance of the CapEx or for sure, if the price is higher, you have to pay, as we say in New York, let's see, I think it was last year that the, I would say simple sensitivity is 80 million per dollar that it will increase in EBITDA. You have to have rough numbers if you want.

We cannot accelerate this year because we have bottlenecks, and we will reach, I think we are going to reach a bottleneck of the evacuation between October and November. That's why we cannot accelerate, because if we accelerated, we improve the capital in the ground, but not taking out. Next year, and I think I say before that we are going to accelerate, so we can have, in 2027, I think we are going to have a better production than we thought.

That I cannot, I prefer to show you in New York in April, and you will see that because if we have less necessity of CapEx, and we have the evacuation out, and you have more money in, more cash of YPF, we are going to put that for improve the production and make more value for the shareholders and to reach the plateau before.

Okay. Thank you so much. Happy birthday.

Your next question comes from the line of Tasso Vasconcellos with UBS. Your line is now open. Please go ahead.

Hi, Horacio, Pedro, Max. Horacio, I wanted to move back here on your how you're thinking in terms of capital allocation for YPF. Get some additional color from your side. You had a lot of success in the 4x4 Plan that you released when you first assumed the company. You had a lot of success in focusing the core assets and the operations of the core assets, divesting from some other assets. Maybe if you can make a summary on everything that you accomplished since you assumed the company. Of course, looking forward, what do you still view as adjustments required for YPF? Where would you want to invest more, especially in the scenario of a higher Brent and like perhaps making more money? Of course, if anticipating dividends at some point could also be a possibility.

I think just to get some additional color on how you're thinking about capital allocation as a whole for YPF. That's the question. Thank you.

Thank you for your question. The capital allocation is always what we call, we have I tell you something that is more our cooking. We have a week, we call CapEx week, and there we discuss all the projects in detail, all the economics, and we allocate what is more economical to the less economical, okay. That the way that we always allocate. If you allocate that in the upstream, unconventional is first. At the beginning when I arrive YPF, say, "I am unconventional." Yeah, I know because I love unconventional and not the conventional, because when it's all are, they are very young, it's better the conventional than unconventional. In Argentina, the conventional is old.

We allocate all in unconventional, and it's our, my goal, personal goal, and the company goal to be a unconventional integrate company. Really, we are very close to over there. We are negotiating going out from the last one. The allocation in upstream is going to be clear that it will be unconventional, and always is a portfolio in our portfolio that you have to decide the economics and between the one that we are with partners and the 100. What is a good news for us is the big stake that we have in 100% are wonderful. They are very profitable, and we are locating more than we are there. Is a new way of YPF.

It's not that we need if the partners don't want, we can increase the production very fast, and this is our idea, okay? If the price that is same now, that it will be this year, next year, in a better level, in higher level, for sure our people are making more revenues, and we will have a better results. That result, it will be allocated for increasing the production. It will be better for the LNG. We are very, I would say, positive of the result of the 4x4. I expect that you are the same that us, even if by violence, you have to say yes, okay? You are the same as us in the success of the 4x4.

Really, I tell you, I see now every month when I see all the results of the company in detail that this, I would say, this engine that is YPF is working very hard on making value in all the business that we have.

We have reached the end.

Very clear. Thank you, Horacio.

We have reached the end of the Q&A session. I will now turn the call back to Horacio Marín for closing remarks.

Thank you very much for all the questions. Thank you, Manuel, to be in the call. I say for all the guys that we work here, that I'm very proud to work with YPF. We are working hard but with passion. That is the reason. Company with passion has extraordinary results. That what YPF is doing now. I, well, I try always to say at the end that in the memory of my grandmother, I breathe YPF, I sweat YPF, I think YPF, I love YPF. Thank you very much.

This concludes today's call. Thank you for attending. You may now disconnect.

Hello, everyone, and welcome to YPF Fourth Quarter 2025 and Full Year 2025 Earnings Webcast Presentation. Please note that this call is being recorded. [Operator Instructions] I'd now like to hand the call over to Margarita Chun, YPF's IR Manager. Please go ahead.

Good morning, ladies and gentlemen. This is Margarita Chun, YPF's IR Manager. Thank you for joining us today in our full year and fourth quarter 2025 earnings call. Before we begin, please consider our cautionary statement on Slide 2. Our remarks today and answers to your questions may include forward-looking statements. which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks. Our financial figures are stated in accordance with IFRS, but during the presentation, we might discuss some non-IFRS measures such as adjusted EBITDA. Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marin; our Finance VP, Mr. Pedro Kearney; and our Strategy, New Businesses and Controlling VP, Mr. Maximiliano Westen. During the presentation, we will go through the main aspects and events that shape the annual and Q4 results as well as our updated guidance for 2026. And finally, we will open the floor for Q&A session together with our management team. I will now turn the call over to Horacio. Please go ahead.

Thank you, Margarita, and good morning. I would like to begin by highlighting that 2025 was a transformational and landmark year for the company. First, we delivered exceptional operating performance, consistently beating our own records across all business segments. Second, we almost completed our exit program from mature fields and secure Tier 1 shale blocks in Vaca Muerta. Third, we have taken significant steps forward in the development of the LNG project. Now, let me translate all these milestones into numbers. During 2025, despite the volatile price environment, we achieved a record-high EBITDA of $5 billion. This is the highest EBITDA in the last 10 years and stands as the third largest in the company history, underscoring our resilience and operational discipline despite the 15% contraction in Brent prices. This outstanding outcome was driven by record shale oil production, growing by 42% in December 2025 on an interannual basis. We produced 204,000 barrels per day, exceeding by far the target of 190,000 barrels per day set at the beginning of the year. Progress on the VMOS project was also remarkable, with completion stage above 50% and the first oil delivery anticipated by early 2027. Moreover, the strategic combination of shale oil ramp-up and exit from mature fields allowed us to reduce by 44% our lifting costs in Q4 2025 compared to last year. Including the recent conventional divestment, such as Manantiales Behr and Tierra del Fuego blocks, our lifting cost would have been below $8 per BOE. This consolidate a structural cost reduction, bringing us closer to becoming a pure share player. In 2025, our Vaca Muerta shale reserves significantly expanded by 32%. It now accounts for 88% of our total peak oil reserves, and we increased the reserve replacement ratio to 3.2x and the reserve life to 9 years. Moreover, when looking the full potential of our shale acreage in the long term, including the recent M&A transaction, YPF holds a total well inventory in Vaca Muerta of 16,500 at a 100 stake and 10,300 at ownership. In parallel, we achieved a strong operational efficiency in our midstream and downstream segments. We reached a record-high refinery utilization rate of almost 100% in Q4, growing by 10% internally. This excellence, together with higher efficiency through disciplined cost management and proactive pricing policy, resulted in outstanding adjusted EBITDA margin of $22.6 per barrel. Furthermore, 2025 was a highly active year for YPF with respect to M&A. We executed a significant acquisition, securing 3 world-class blocks in Vaca Muerta, Sierra Chata, La Escalonada, and Rinco de la Ceniza. More recently, in early 2026, we further reinforced our portfolio by swapping assets with Pluspetrol to fully own 3 wet gas block, key for the Argentina LNG project. We also acquired part of Equinor asset in Vaca Muerta in partnership with Vista Energy. For YPF, Vista Energy represent far more than a strategic partner. It's a trusted ally with a shared determination to accelerate Vaca Muerta development. At the same time, we enhanced our portfolio efficiency through targeted investments, including our 50% stake in Profertil and the conventional Manantiales Behr field. These transactions are expected to generate nearly $1 billion in proceeds, for which around $750 million will be collected during December 2025 and 2026. This, in that sense, it fortifies our balance sheet and provides financial flexibility to focus on our core growth business. Turning to Argentina LNG project, I'm proud to highlight the strong commitment of our international founding partners, ENI and XRG. Together with YPF, we formalized this month the foundational structure of the project. Our fully integrated project is supported by one of the most competitive LNG breakeven prices worldwide, positioning YPF as a future leadership in the global LNG market. Finally, in terms of financing during 2025, we successfully raised $3.7 billion of new funding. This proves the company ability to secure multiple financing sources to comply our ambition plan. The company closed the year with a net leverage ratio of 1.9x. All of these outstanding metrics demonstrate the successful execution of our 4x4 Plan. We are committed to becoming a leading shale integrating company and a significant shale exporter in the coming years. Let me walk through the main aspects of a full year and Q4 2025 financial results. Annual revenues totalized $18.4 billion, reflecting a modest decline of 4% compared to the previous year. This was primarily driven by a significant 15% contraction in Brent. This impact was largely mitigated by higher shale production and record-high processing levels. Similarly, Q4 revenues followed the same trend, decreasing 4% year-on-year, while Brent dropped by 15% in the same period. adjusted EBITDA increased by 8% in 2025, with EBITDA margin growing from 24% in 2024 to 27% in 2025. A clear evidence of our ability to drive value in a lower pricing environment. Q4 was outstanding as adjusted EBITDA was nearly $1.3 billion, reaching an impressive 53% internal growth. This remarkable achievement was due to the outstanding performance of our shale operation, which contribute over 70% of our total production mix, coupled with successful execution of our exit program from conventional mature field. As a result, we achieved a substantial reduction in our total upstream lifting costs. Moreover, our midstream and downstream segment also delivered record-breaking operational results, further reinforcing the strength of integration of our business model. A key factor behind this achievement has been the technological transformation that the company started in 2025. To achieve exceptional results, we must change traditional way of working. In that sense, since December 2024, we now rated 7 real-time intelligence centers to provide 24/7 support of both the upstream and downstream operations. Integrating AI with expertise of our technical team, this center optimize decision-making in upstream, refining, and commercial processes. These impressive operational and financial results were achieved through the disciplined execution of our $4.5 billion investment plan, of which approximately 75% was strategically allocated to unconventional operations. In that regard, let me point out that CapEx for 2025 ended around 10% below our original estimate, mostly driven by further operational improvements and lower costs in dollar terms. Finally, we achieved a strong financial performance in Q4, with free cash flow returning to positive territory at $261 million. This improvement was primarily driven by the partial proceeds from the sale of our 50% stake in Profiltein, collecting $200 million, complemented by our solid operational performance. As a result, our net leverage ratio improved to 1.9x, down from 2.1x record in Q3. Finally, I would like to reconfirm that the safety of our workers is our top priority in the development of the activities of the company. During 2025, we delivered substantial progress in our safety indicator, we achieved a frequency rate of 0.09 accidents per million hours worked. This was driven by our integrated safety culture model, along with preventive action, training, and risk control activities. Let me mention that YPF upholds world-class safety standard across all the operations. In the upstream segment, by the end of 2025, YPF record a lost time injury rate of 0.15 per million hours worked, significantly lower than the international benchmark of 0.24 in 2024, as reported by the International Association of Oil and Gas Producers. In the downstream segment, YPF record an exceptional lost time injury rate of 0.06 per million hours worked in 2025, positioning us among the top performers in Solomon's refinery benchmark. I would like to extend my sincere appreciation to all our employees for their strong commitment and steady dedication. We reaffirm our strong commitment to continue improving our safety standards. Now turn the call to Pedro to analyze in detail our 2025 financial results.

Thank you, Horacio, and good morning to you all. Now, let me walk through the primary drivers behind the changes in our EBITDA, liquidity position, and free cash flow in 2025 compared to last year. In 2025, adjusted EBITDA increased by $356 million. This achievement was driven by the strategic shift in our production and cost matrix in the upstream business, enhanced by further operational efficiencies, collectively contributing around $900 million. Additionally, records in our refinery protection levels, strict cost discipline, and higher refining crack spreads in our midstream and downstream business contributed to an additional $220 million to our EBITDA growth. At 2024 international price levels, our pro forma adjusted EBITDA would have reached approximately $5.8 billion. The market pricing environment in 2025 shift downwards. The 15% decline reflected in Brent prices resulted in a negative impact of around $800 million, pushing our 2025 adjusted EBITDA to $5 billion. Switching to cash flow, we reported, as expected, a negative free cash flow of $1.8 billion in 2025, primarily due to exceptional and non-recurring effects. This included approximately $550 million related to the acquisition of premier Tier 1 acreage in Vaca Muerta, net of partial proceeds from the divestment of non-core assets, roughly $530 million in one-off exit costs from mature fields, and approximately $160 million in contributions to the infrastructure projects Vaca Muerta Sur, Southern Energy LNG and Oldelval Duplicar, as well as prepayments of dollarized costs for 2026 as part of our proactive hedging strategy. Adjusting for these extraordinary items, free cash flow for the year would have been negative $500 million, largely explained by the negative EBITDA of about $350 million from conventional mature fields, most of which, although formerly part of YPF's asset portfolio, were strategically exited during the year. From a financing perspective, 2025 was a strong year for the company, as we fully met our financial plan by raising $3.7 billion, one of the largest debt financing secured in recent years. This goal was possible through a combination of cross-border trade-related loans and highly competitive issuances in both local and international capital markets at very attractive financing costs. In the international capital markets, we demonstrated our strong market access and credibility by raising $1.6 billion. Early in the year, we issued $1.1 billion through the 2034 bond. In October, we re-tapped our 2031 bond, adding $500 million. More recently, just last month, we re-tapped our 2034 bond, adding $550 million at a yield of 8.1%, the lowest rate secured by the company in international capital markets in the last 9 years. These proceeds were strategically allocated to prepaid at $325 million for the AB loan with CAF, originally executed in 2023, and to fund the partial acquisition of Equinor assets from Vista Energy. On the local capital market front, during 2025, we issued a total of 10 series of local bonds amounting to $1.4 billion, with an average tenure of 2 and a half years and a highly attractive average interest rate of 6.5%. The depth and quality of these issuances underscore the strong demand for YPF securities in the domestic market. Regarding financial and trade-related loans from relationship banks, I would like to highlight the $700 million export-backed loan closed in the fourth quarter. This transaction marked the successful reopening of the syndicated corporate cross-border loan market in Argentina. As of today, we have disbursed only $50 million from this facility, leaving a substantial undrawn commitment of $650 million available before April 2026. Looking ahead to 2026, the company faces maturities totaling approximately $2.1 billion, primarily comprised of $1 billion in local bonds, around $300 million in international bond amortizations, and the remaining in trade-related and financial loans amortizations. Thanks to our robust financial position, supported by diversified funding sources and nearly fully available bank credit lines, YPF is exceptionally well-prepared to meet its debt obligations over the next 12 months. From a liquidity standpoint, by year-end, our cash and short-term investment totaled roughly $1.2 billion. The positive free cash flow of the fourth quarter, combined with increased EBITDA, allow us to close in 2025 with a net leverage ratio of 1.9x. I am now turning to Max to go through some details of our operational performance.

Thank you, Pedro, and good morning to everyone. Let me start by taking a closer look at our upstream performance. During 2025, we achieved sound production growth of 35% in our shale oil output, delivering 165,000 barrels per day. This impressive expansion accelerated in the fourth quarter, with shale oil output averaging 196,000 barrels per day. By December, we surpassed a major milestone, producing over 200,000 barrels per day and exceeding our year-end target by roughly 7%. The outstanding performance of our shale operations more than offset the anticipated decline in conventional oil production, which averaged 90,000 barrels per day in 2025, dropping 32% compared to 2024. The reduction was even more pronounced in the fourth quarter, averaging 68,000 barrels per day, excluding the recently divested assets, primarily the Tierra del Fuego and Manantiales Behr blocks, our pro forma conventional production would have averaged around 35,000 barrels per day by December. Consequently, the combined strategy of divesting conventional fields and scaling up our sale operations, generating significant savings in our average lifting costs, declining 26% to $11.6 per BOE in 2025. During the fourth quarter, lifting costs dropped 44% inter annually to $9.6 per BOE. On a pro forma basis, excluding the recently divested conventional assets, our lifting cost would have been below $8 per BOE. Swimming into our shale oil hub blocks, we maintained best-in-class costs at $4.4 per BOE, virtually unchanged from last year, driven, among other factors, by the implementation of the real-time intelligence center in Neuquen. Turning to natural gas, production averaged 36.2 million cubic meters per day in 2025, reflecting a modest 3% decline versus 2024. This was mainly due to our strategic exit from mature fields, partially offset by a strong 14% increase in shale gas production in 2025. As expected, the fourth quarter was lower sequentially, influenced by seasonality and the continued progress of our divestment strategy. I would like to expand my comments on YPF's leading position in Vaca Muerta by presenting a benchmark analysis conducted by Rystad Energy, a renowned consulting firm specialized in the energy sector. In 2025, YPF's 4 oil blocks in Vaca Muerta delivered the most efficient lifting costs among the leading operators within this shale formation, reaching $4.4 per BOE. Vaca Muerta's total average lifting cost was $5.9 per BOE, and excluding YPF, would have amounted to $6 per BOE. YPF's lifting cost is lower than the Permian Basin, which averaged $4.9 per BOE. This remarkable efficiency underscores 3 key points. First, although still in early stage of development, Vaca Muerta demonstrates exceptional productivity, closing the gap with operational metrics observed in Permian. Second, the YPF asset premium, world-class quality. And third, the efficiency program implemented by YPF in recent years that allowed the company to further reduce its operating costs. Moreover, it is worth highlighting the outstanding quality of Vaca Muerta's source rock, a geological advantage that positions the play among the most competitive and conventional resources globally. The shale oil EUR levels in Vaca Muerta, at its current stage of development, more than double the average of the shale play in the U.S., accumulating roughly 1 million barrels. YPF's shale oil core hub, including La Angostura Sur block, averages a EUR between 1.2 million and 1.5 million barrels. This indicates, first, that Vaca Muerta is a world-class asset with a unique potential that could translate into further competitiveness towards full-scale development. Second, that YPF holds the best acreage within Vaca Muerta with the highest productivity. Regarding well cost, YPF also stands as the most efficient player on the basin, roughly 10% below Vaca Muerta's average. Moreover, YPF achieved the fastest drilling speed in Vaca Muerta. Since 2021, YPF's growth in this area has significantly outperformed its peers. Let me add that last October, YPF reached a record of 540 meters per day in Barril Grande block, adjacent to La Angostura Sur. The well was drilled in 11 days with a lateral length exceeding 3,000 meters. Finally, it is worth noting that even at its current stage, Vaca Muerta's breakeven price remains highly competitive, slightly above Permian's. YPF holds Tier 1 assets that are as competitive as Permian fields, featuring similar breakeven price of approximately $40 per barrel, when assuming 10% cost of capital. This is because YPF's higher well costs are effectively offset by superior productivity and lower lifting costs. Zooming into our hydrocarbon reserves, total P1 reserves under the SEC criteria grew by 17% in 2025. This expansion was mainly driven by a substantial 32% expansion in our Vaca Muerta shale reserves, which now represent 88% of our total proved reserves, partially offset by our divestment program from conventional reserves. In 2025, proved reserve additions totaled 467 million BOE, largely supported by the continuous expansions, discoveries, and improved recovery of our unconventional operations, particularly in La Angostura Sur, La Amarga Chica, Bandurria Sur, and La Calera blocks. These additions were partially offset by higher total hydrocarbon production of 192 million BOEs, downward revision of 58 million BOEs. mainly due to the changes in project strategy and drilling schedules, as well as 29 million BOE reduction explained by M&A transactions. It is worth highlighting that P1 developed reserves increased by 4% in 2025, driven mainly by development activities, new extensions, and discoveries mentioned exceeding annual production levels. Meanwhile, proved undeveloped reserves grew by 34% as new additions offset the volumes developed in the drilling of new wells. Giving the strong ramp-up in shale hydrocarbon production in 2025 and the continued development of our shale reserves, the reserve replacement ratio increased to 3.2x with a reserve life of 9 years. For total P1 reserves, the ratio stood at 2x with a reserve life of 6.7 years. Notably, when excluding conventional assets under our divestment program, the pro forma ratio for our total P1 reserves improved to 2.7x with our reserves life of 8 years. Now, let me share the progress achieved in the exit program from conventional mature fields. To date, 45 blocks out of 48 involved in the Phase 1 of Andes Program have been completed. This considers the reversion of 18 blocks to the provinces in total, including the agreement for 7 blocks with the province of Tierra del Fuego, completed in January this year. Regarding the 16 blocks under phase two of Andes Program, this year, we signed the sale of Manantiales Behr, which we will discuss in more detail later, in 2 blocks in the Malargue cluster. We expect to complete the divestment of the remaining blocks throughout the year. Now, I would like to present an overview on the main M&A transactions executed during 2025 and expected activity for 2026. In 2025, the company completed a series of significant acquisitions, securing 3 world-class blocks for a combined investment of roughly $850 million. Additionally, we acquired the remaining 50% stake in Refinor, among other minor transactions, optimizing fuel supply logistics in the north end of the country. In terms of asset sales in 2025, we also made progress, selling 49% stake in Aguada del Chanar Block and divesting conventional mature fields in YPF Brazil, among other minor transactions. Moving to 2026, let me start highlighting two key acquisitions that we have recently executed to reinforce our leading position in Vaca Muerta. First, in January 2026, we signed a non-cash asset swap agreement with Pluspetrol in Vaca Muerta. YPF transferred to Pluspetrol a 20% stake out of its 45% working interest in two recently acquired blocks from TotalEnergies, La Escalonada and Rincón de la Ceniza. In exchange, Pluspetrol transferred to YPF a 50% stake in three strategic wet gas blocks, key for the development of Argentina LNG project: Meseta Buena Esperanza, Aguada Villanueva, and Las Tacanas. Second, early this month, we acquired a portion of Equinor's assets in Vaca Muerta, increasing our existing ownership in three blocks for nearly $170 million. We added 4.9% stake in Bandurria Sur, one of our core hub blocks, resulting in a total participation of nearly 45%. We added 15% stake in both Bajo del Toro and Bajo del Toro Norte blocks, elevating our working interest in each to 65%. In terms of sales of assets, it is worth mentioning two other relevant transactions executed in the last months. First, last December, we successfully completed the sale of our 50% stake in Profertil for $635 million with attractive valuation. Second, last week, we executed the sale of Manantiales Behr conventional field, the first performing block under the Andes 2 Program, for approximately $410 million and an earn-out of $40 million. Looking ahead, YPF has publicly announced its plan to divest its 70% interest in Metrogas. This transaction is expected to generate significant proceeds during 2026, strengthening YPF's balance sheet and providing the flexibility to advance with our core growth strategy. Now, let me share the progress achieved in terms of operational excellence and technological innovation across our upstream and downstream segments. In the upstream business, particularly within our shale operations during 2025, drilling speed averaged 324 meters per day, while fracking speed averaged 262 stages per set per month, reflecting consecutive record-setting performances. Last January, we further improved those metrics by reaching 378 meters per day and 282 stages per set per month in drilling and fracking speeds, respectively. And if we compare against January 2023, we recorded an incredible growth of 66% and 61%. In addition, on the back of the continuous operational performance, during 2025, we managed to expand our activity efficiently by increasing 26% the oil wells tied in, reaching 250 oil wells on a growth basis, most of them operated by YPF. In the downstream business in 2025, the efficiency program was at the forefront of our decisions and allowed us to reach outstanding results. We inaugurated five real-time intelligence centers to provide operational support 24/7, highlighting the last real-time operations room inaugurated in December in La Plata Refinery, which serves as an integrated central hub for detecting operational deviations, replacing the previous model that monitors each industrial unit independently. In the fourth quarter of 2025, La Plata Refinery was awarded as the Refinery of the Year in Latin America. This is the first time that our refinery won an international award in its 100-year anniversary. The industrial complex also achieved the first quartile performance in multiple Solomon benchmarking KPIs. As a result, in the fourth quarter 2025, we reached record-high processing levels that resulted in a surplus of gasoline and mid-distillates production, enabling YPF to export refined products to neighboring countries and substitute imports. Turning to our midstream and downstream performance in 2025, our processing levels averaged 320,000 barrels per day, marking a 6% internal growth with a strong refinery utilization rate of 95%. In the fourth quarter, as just mentioned, we set a new 15-year record by processing 335,000 barrels per day, achieving a utilization rate of 99%. Last month, we beat our own record again, reaching 352,000 barrels per day, representing a utilization rate of 104%. Turning to domestic sales of gasoline and diesel, dispatch volumes remained robust throughout the year and the fourth quarter, growing internally 3% and 5% respectively, driven by increased demand across all commercial segments. We remained a solid 56% market share, consistent with our historic leadership in the sector, which increases up to 60% when including gasoline and diesel produced by YPF and dispatched through third-party gas stations. In terms of prices, during 2025, local fuel prices remained broadly aligned with international prices, with an average annual discount of only 3%. Moreover, last month, our local fuel prices stood 1% above import parities. Lastly, our midstream and downstream adjusted EBITDA margin remained strong at $17.2 per barrel in 2025. Notably, during the fourth quarter, our margin jumped to $22.6 per barrel on the back of our record processing levels, coupled with higher diesel crack spreads and lower costs. I am now turning back to Horacio for Argentina LNG 2026 guidance and final remarks.

Thank you, Max. Before we move on to our 2026 guidance, I would like to share updates on the Argentina LNG project. The first phase, known as the Southern Energy or SESA Tolling phase, where YPF holds an equity stake of 25%, aims a total LNG capacity of around 6 million tons per year. In 2025, the project secured FID for the 20-year available charter agreement, covering two floating LNG and will require the construction of a 100% dedicated gas pipeline. Total CapEx will be around $2 billion. It will be partially financed through a project finance structure similar to VMOS financing. Regarding procurement status, main packages for the onshore and offshore infrastructure have already been awarded. The project is expected to start operating between 2027 and 2028. The Argentina LNG phase consider development, design, construction, and operation on a fully integrated LNG condensate and NGL project. It focuses on [ Wenca ] gas block of Vaca Muerta. The infrastructure involved includes a liquefaction capacity of 12 million tons per year through two floating LNG and dedicated gas pipeline. It also consider a dedicated oil pipeline for condensate, wide-grade pipeline for NGLs, and onshore facilities, including fractionation, storage, and port facility. Once operational, the project cash flow will be anchored by long-term offtake agreement with investment-grade counterparties, including the sponsors of the project. The foundational sponsor of the project are YPF, ENI and XRG, an energy investment platform wholly owned by ADNOC. The partnership structure was formalized this month through the signing of a joint development agreement by the three parties. The CapEx of the project, excluding the upstream investment, is estimated to be around $20 billion, including the financial costs. Project leverage is expected to be around 70% of the total cost, consistent with precedent LNG transaction. The project is intended to be financed through non-recourse financing with multiple sources of funding, including ECAs, development banks, and commercial banks as potential anchors. The FID is targeted for 2026. Commercial operation for the first floating LNG unit is expected by 2030, and the second unit by 2031. During 2026, we evaluate the possibility to expand the project for an additional capacity of 7 million tons per year through a third floating LNG vessel, which FID will take place in 2027 or 2028 and COD by 2032. Finally, let me highlight that Argentina LNG holds one of the lowest breakeven price among the leading pre-FID projects globally, as reported by Rystad Energy. This advantage is reinforced by the efficient monetization of natural gas, condensate, and NGLs. In summary, Argentina LNG emerges as a reliable, robust, and flexible alternative worldwide, with all the ingredients to succeed: strong business rationale, coupled with outstanding economics, and a strong support for multiple stakeholders, including the sponsors and the off takers. Finally, I would like to share our updated 2026 outlook. Let's start by addressing our shale oil production plan. For this year, we are targeting production of roughly 215,000 barrels per day, consistent with what we announced in our last Investor Day. This represent more than double 2023 output. Moreover, our year exit rate is expected to be around 250,000 barrels of shale oil per day. In terms of adjusted EBITDA, we estimate a range of $5.8 billion and $6.2 billion based on an average Brent of $63 per barrel. This substantial increase, achieved despite declining international prices, is driven by our strategic shift in the production mix of our upstream operation and continuing efficiency program across the company. We continue to focus on our most profitable shale oil assets while successfully disposing large scale of conventional fields. Compared to 2023, this reflect an increase between 40% and 50%, reaching record high adjusted EBITDA since the beginning of YPF. Switching to our CapEx 2026, we plan to invest between $5.5 billion and $5.8 billion, consistent with our strategy plan disclosed during the Investor Day. Nearly 70% of these funds will be allocated in our shale operation. Regarding the free cash flow, we estimate a neutral to slightly negative position for 2026, as our increased estimated EBITDA and significant proceeds from the M&A transaction previously described will be offset by our CapEx plan, tax payment, and equity contribution to infrastructure projects. As a result, our net levered ratio will push down to the range of 1.6 and 1.7x, below the net levered ratio of 1.9x record as of December of 2025. Before turning to the Q&A section, I would like to once again tell you that I am especially proud to be working in YPF, and all of YPF employee of their commitment and their effort, without whom the remarkable results achieved in 2025 would have been not possible. We are very focused in transforming YPF as one of the best energy companies worldwide, and we continue driving our 4x4 Plan during 2026 with even more passion and conviction. With this, we'll conclude our presentation and open for floor questions.

[Operator Instructions] Your first question comes from the line of Daniel Guardiola of BTG.

I have a couple of questions from my end. One is on production. I saw you just shared a very impressive exit rate for 2026 of 250,000 for shale oil. I wanted to know if you could please provide us with the expected quarterly pace behind these targets, and perhaps more importantly, what are the key operational or infrastructure bottlenecks that could prevent you from achieving these exit rates? That would be my first question on production. My second question is on well productivity. I wanted to know if you can share with us how many years of Tier 1 drilling inventory you guys have at the current development pace that you have? Once you eventually transition or migrate into Q2 acreage, what would be the expected impact on EURs, IP30s, and eventually on IRR? Those would be my two questions.

This is Horacio. Thank you very much for the questions. The first one about the production. You have to expect during the half of the year that we'll be delivering between 200,000 and 210,000 barrels a day. Not a big increase at all. Why that? Because of the evacuation. That's why YPF was one of the pusher of VMOS, because we need more evacuation for deliver more production. Also, we have a very good numbers in the new ones, in the last, what is La Angostura Sur, and the plant will be finished by the middle of the year. After that, you will see an incremental, a big incremental that we see this year, and we are going to have, at the end, the 250,000 barrels per day. And next year, you will see more incremental, we are talking next year about that, okay? The second one about the merchant acquisition, I have no know if I'm going to answer your question word by word. Well productivity. Okay, the well productivity, if you see in the presentation, we take data from Rystad that compare the benchmark between all the Argentine companies, we see the well productivity for Argentina, the number one in almost all the benchmark is YPF. If you want to see there, you can see their numbers. In the drilling part, you will see that our cost from them is $4,000 per meter. We are very close, our number. What you don't have there, and you will see now, is that we make a very, I would say, very good bidding process, very pushing with the big, big numbers for the international oil service company. We wait after the bidding, or we finish in December, we have reducing unit cost by more than 20% for those tools. During this year, you will see in the first quarter, we have to see reduction in our CapEx per well.

Your next question comes from the line of Bruno Montanari from Morgan Stanley.

I have a few questions on my end. First, on the free cash flow generation, can you help us understand, the profile of cash flows throughout the quarters? I'm trying to get a sense of, if there is any concentration, on CapEx or the contributions with Argentina LNG, that could, perhaps make a more concentration of cash burn in any particular quarter, or if there is any particular quarter where there could be positive free cash generation because of the collections from the divestments? That's the first question. The second question, quick one. On your free cash flow outlook for the year, do you consider the sale of Metrogas or only the transactions that are already closed? If I could add a third one, can you comment on what your current drilling completion cost is for the shale hub?

Thank you, Bruno, for your question. Number 3, I think I just answered before, okay? I pass there, okay. With number -- with the -- you talk about the LNG. The LNG, we've no big investment this year. We are focused this year for the FID of the 12 million ton per year. I mean, it's not the material for any of the companies this year. It's, you don't have to expect a big investment in LNG for 2026. Regarding CapEx, and you say any contribution, I think it will be, we are going to increase. At the end of the year, we have to increase to between 4 to 5 rigs. In the second part of the year, you will see more CapEx. That's why we see that our guidance for this year is more CapEx than previous this year, even though we are increasing a lot our efficiency in all aspects of the company. Regarding what you want to see -- the other you say about Metrogas, yes, we are now in the strip. We are in the finishing with the government that we will get the extension. After the extension, that is very near. I don't know, it's in a month or so. You will see that we are going to sell this year Metrogas. You ask also about how we get the cash flow positive, so I pass to Pedro, that he has all the figures in his mind, okay? Pedro, your turn.

Bruno. Just to put this annual free cash flow position for 2026, let me highlight, assuming that we are going to get an annual EBITDA of $6 billion. Assuming -- can you hear me correctly?

Yes. Yes, that's good.

Okay, great. How are the math behind this neutral to slightly negative free cash flow position that we are forecasting for 2026? Assuming an EBITDA of approximately $6 billion, a CapEx of $5.7 billion, then interest payment of approximately $800 million, taxes of approximately $200 million, and the contributions to the infrastructure project, as you mentioned, should range on a $300 million, including VMOS, SESA, and a potential also expansion on the other system. That puts you -- and adding some extra costs from material fields and working capital, that puts you in a negative free cash flow position of between $1.2 billion to $1 billion. That will be offset by the collections from the M&A. I'm talking about the whole year, the M&A activity that we started at the beginning of the year, and we expect to continue along the year with the Metrogas sale, as Horacio mentioned. That puts you in a neutral free cash flow position, assuming that the remaining M&A activity, in particular the Metrogas sale, will take place during the year.

Question comes from the line of Guilherme Martins of Goldman Sachs.

I have a couple of ones from my side. The first one is on the ongoing investment of conventional assets under this project, right? I understand the company plans to be 100% exposed to shale oil. Could you please provide an update on when should we see this milestone being achieved? How should we think in terms of evolution of conventional production for the next two quarters? My second question is regarding lifting costs. I understand there was some non-recurring events in 4Q, some maintenance in shale that impacted the number for the quarter. How should we think in terms of evolution of lifting costs for the next two quarters as well?

First question, I didn't understand the question. That's why let me ask in Spanish. [Foreign Language] Okay, okay. I would say personal goal. My personal goal is at the end of the year, not to have any production of conventionals, okay? But, so far, we have very few. We have only in Mendoza, but also we are looking to try to get out very quickly. We have only gas in the north of Argentina, that is not operating part of that, and it's always positive cash out there. That is not marginal, but we want to be pure shale company. Now you will see that it will be during this year, the lifting cost is going down, not only because we are out of conventional, but also because we are improving the production of shale, and also because we are focused a lot in productivity. We think that we will have, at the end of the year, in order of total cost of YPF in order of $7 per barrel. I don't know if it's okay what I answer for your question? Are you seeing that I need to go further?

No, thanks so much.

Your next question comes from the line of Andres Cardona of Citigroup.

I have a couple of questions. The first one is in the reserves report. If you could help us to understand how many drilling locations are certified there, if you could put in the context of the total drilling inventory that the company has. The second one is, the review now includes upstream on the benefits. How does this change your, like, desire to develop projects that maybe were on hold because of the economy? This is a matter of the CapEx capacity that you may need to keep those projects on hold for the need to long-term development.

Okay. First question. In the presentation, you saw [ 16,300 ] location. That is gross, and it's 10, it's gross, and it's 10,000, the net. The one that you have in the reserve, would be the official in for the SEC, is 5% of the location that you already mentioned. We have plenty of reserves. Now are no reserves for the SEC, for the rule, because it's a rule, not the physical way of calculating the reserve. You will see year by year, that as we are developing, that the P1 is, might be increasing a lot comparing with any company because we have a portfolio that is very huge for Vaca Muerta. In the part of RIGI, from my point of view, I think it's a very, very good decision as a government for all the industry, that it will help for sure to develop the full Vaca Muerta for all the industry. We think that it's a positive decision, and we are analyzing, and we are now because of the RIGI, we are looking at how to develop all Vaca Muerta for YPF in the best way for making value for shareholders. That is the reason why next year in April, we are going to go to New York to explain the full development of YPF from 2026 forward. Okay?

Our next question comes from the line of Nicolas Barros of Bank of America.

So just one question here from our side, on your LNG project, right? Given the recent news flow, what are your expectations on bringing a new partner to join the project?

Now, you know that we have a binding signature between our founder partners, that what they are is ENI, XRG from -- and from the subsidy from ADNOC and YPF. We are analyzing the interest of a 4 partner in this moment, but it's not like it's necessary, the 4 partner, to develop the project. With the 3, we can develop all the projects for the 12 million tons per year size. Okay? That is the answer.

Your next question comes from the line of George Gasztowtt of Latin Securities.

I was wondering on the refining side, how you're seeing the refining margin coming so far this year after an impressive quarter. I know that local prices at the pump and global fuel prices have remained attractive, but obviously, Brent has firmed up towards the sort of latter half of the quarter. Are you seeing your cracks hold or starting to compress?

We have an excellent price policy that we are following, I don't know, it's all around the world also, that we can see all the price of any pump of any gas station in real time. If the spread change, okay, if they reduce, I have to reduce the price. If they increase, I have to increase. If the price of oil go up, I have to go up. If they go down, I have to go down. That is how we manage the price in YPF. The second one is with RIGI attention?

No. That's it.

The next question comes from the line of Matias Cattaruzzi of Adcap Securities.

First, can you break down the upcoming LNG and infrastructure commitments for 2027 and '28? And then I have another question about sensitivities. But if you want to reply first.....

Another question or not? On the second question.

Okay, the second question is, with Brent at $70 per barrel and fair break-evens at $45, for YPF, what would be the elasticity going forward? Do we take into account the investor day that YPF did? If the production plan can change if these prices maintain over time?

Okay. The LNG this year, I say, is not material, okay? Really, I prefer to say not material because I have a commitment with all the partners now. I have not to say what is not public, okay? It's not material for any of the 3 companies. For '28, if we get the FID, what is our goal? Our goal during this year, it will be more important, it will be more material, that we will explain in really next year, I don't know, it's April or March in New York. I will explain in detail, very good detail, so there you can get all the numbers, okay? Our goal for all the 3 partners today is to get the FID this year. We have to start after to building all the infrastructure for the LNG to be in 4 years, everything done, okay? The second one, you say the, our break even $45. What is our specific brand? I don't understand what you mean.

[indiscernible].

Okay, if this break even to $45, we, I think we are going to have another war. There will be no LNG in the life. It would be -- I think it's another war. I don't expect that, but if that happen, this year, why we accelerate going out from the conventional, the more, I would say, more conventional, no, the marginal field, is we prepare for. If the analyst was right that the price was going to be down this year, we prepare not to have problem for the CapEx for this year, are going up, because after this couple of years, YPF will be so strong that you will see in the future. But if Go to $45, for sure, even our pre-break-even price is $45 this year, we have no problem. For next year, we have to change because, even though we are profitable, we don't have the capital unless you give the capital for us. For sure, we will change. Okay?

Okay. And if it goes to $70, $75, do you plan on accelerating CapEx or?

This -- today, this year, no, because we have to finish VMOS, we have to increase the evacuation, okay? As soon as we have the evacuation, if we can accelerate, it's my goal to be as quickly as possible. Remember that I want to be out of YPF in '31. So I have to deliver everything to YPF till '31. That is my goal.

We don't have any further questions. I'd now like to hand the call back to Horacio Marin for final remarks.

Okay. Thank you very much for all your questions. Thank you very much for all this year to be cooperative and ask questions that are good and challenging for us. I can tell you that I see the figures of the company in more detail than you can see, almost in all the figures, and I see this company is doing very well. Our thing is now the strength of the current YPF is amazing. I will see to make big value for all the shareholders, is our goal for all our team. We are very proud every day working in YPF, delivering our 4x4, and we are very exciting and very proud, all of us, that we are delivering what we say at the beginning of 2024. For you, that they are analysts and for all the investors, that we are going to work very hard to make Argentina exporting more than $30 billion in 2031, and deliver a lot of value for all shareholders of YPF. Thank you very much.

Thank you for attending today's call. You may now disconnect. Goodbye.

Good morning, ladies and gentlemen. This is Margarita Chun YPF IR Manager. Thank you for joining us today in our Third Quarter 2025 Earnings Call. Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marin; our Finance VP, Mr. Pedro Kearney, and our Strategy, New Businesses and Controlling VP, Mr. Maximiliano Westen. During the presentation, we will go through the main aspects and events that shape the quarter results. And then we will open the floor for a Q&A session together with our management team. Before we begin, please consider our cautionary statement on Slide 2. Our remarks today and answers to your questions may include forward-looking statements, which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks. Our financial figures are stated in accordance with IFRS, but during the presentation, we might discuss some non-IFRS measures such as adjusted EBITDA. I will now turn the call over to Horacio. Please go ahead.

Thank you, Margarita, and good morning, everyone. Let me start by highlighting that this was another quarter in which we continued to deliver solid operational performance. Despite the contraction in international prices, we maintained strong profitability levels compared to last year, gaining further operating efficiency and consolidating the tremendous progress that has been achieved in our Shale operations. Revenues amounted to $4.6 billion, 12% below the previous year, in line with the 13% year-on-year decline in the Brent price in addition to other offsetting effects. Adjusted EBITDA reached approximately $1.4 billion, representing a sequential increase of more than 20%, while remaining flat versus the previous year. The sequential improvement reflects higher shale production, coupled with the successful strategy of reducing exposure to conventional mature fields. The year-on-year comparison shows YPF's ability to maintain its profitability despite the contraction in international prices, driven by an improved production mix with a higher proportion of shale and continuous improvement in operational performance. That exit strategy led us to an impressive lifting cost reduction of 28% quarter-over-quarter and 45% year-over-year. During the third quarter, our shale oil production increased by 35% internally, reaching 170,000 barrels per day. More recently, in October, preliminary figures indicate shale oil production expanded by another 12% over the average of the third quarter, totaling around 190,000 barrels per day. This production level is fully aligned with our annual target of shale oil production of roughly 165,000 barrels per day. Moreover, it will enable us to slightly exceed the December 2025 production target of 190,000 barrels per day. Furthermore, the higher shale oil output that generate a remarkable shift in our production mix has allowed us to improve our EBITDA by around $1.3 billion on an annual basis versus 2 years ago. CapEx activity continue to be focused on developing our unconventional resources, representing 70% of our total quarterly investment. At the same time, we maintain our focus on achieving further operational efficiency in our shale operation. In that sense, let me highlight that during the quarter, YPF completed the drilling of the longest well ever in Vaca Muerta, exceeding 8,200 meters with a horizontal length of nearly 5,000 meters at our Loma Campana block. Moreover, during September, in La Malga Chica, we completed the drilling of a 4,000-meter horizontal well in just 15 days, setting the record as the fastest well ever drilled in Vaca Muerta. Lastly, in early October, we drilled one of the fastest well in the Rio Grande block located in the south half of Vaca Muerta. This well has a lateral length of more than 3,000 meters and was completed in just 11 days. Moving on to our downstream segment. During the third quarter, we achieved strong operational performance, reaching the highest processing level since 2009 at 326,000 barrels per day. This processing level was 9% higher than last year, representing a solid utilization rate of 97%. In that sense, we are pleased to announce that La Plata Refinery was named Refinery of the Year in Latin America by the World Refinery Association. Additionally, La Plata refinery ranked in the first quartile across several KPIs in Solomon global refinery benchmarking based on 2024 results. This recognition represents the result of the successful implementation of the third pillar of our 4x4 plan, our efficiency program based on operational excellence and technological innovation. On the financial side, free cash flow was negative as expected for a total amount of $759 million. This negative free cash flow position is mostly explained by the extraordinary effects related to the recent acquisition of the Shell asset from the Total Austral for $523 million and the impact of the mature field exit strategy. As a result, net debt increased to $9.6 billion, pushing our net leverage ratio up to 2.1x. However, excluding the acquisition of total assets and one-off costs related to mature fields, the negative free cash flow pro forma would have been $172 million with a net leverage ratio pro forma at 1.9x. Additionally, a few days ago, we have successfully retapped our 2031 international bond issuing $500 at 8.25% yield, the lowest interest rate for the international bond of the last years, replacing and improving our average life and financing costs. On a final note, let me briefly comment on the recent announcement regarding Argentina LNG project. In early October, within the Stage 3 of the project, we signed a technical FID with Eni for a full integrated LNG project of 12 million tons per year expandable to 18. Moreover, recently, last week, we signed a preliminary framework agreement with a new partner, the Arab company, ADNOC. In addition, we continue working with the Phase 1 and 2. All in all, the project continued to demonstrate the interest of international players in long-term investment in Vaca Muerta, which is essentially for creating a solid structure for the development and financing of the project. In summary, during the third quarter, we continue progressing to achieve the ambitious target set for the year, delivering solid financial and operational results while we continue to strengthen and prepare YPF for new and even more challenging goal in the future. I now turn to Max to go through some details of our operating and financial results for the quarter.

Thank you, Horacio, and good morning to you all. Let me begin by expanding on Horacio's comment about the evolution of our oil and gas production. During the quarter, total hydrocarbon production averaged 523,000 barrels of oil equivalent per day, declining 4% on a sequential basis and 6% on a year-over-year basis as a result of the divestment program of mature conventional fields, partially offset by the expansion of our shale production that accounted for approximately 70% of the total output, increasing its portion once again and as expected, vis-a-vis the previous quarter. Oil production reached 240,000 barrels per day 3% below the previous quarter and 6% down against last year. Nevertheless, it is worth highlighting that shale oil production recorded an impressive growth of 35% against last year and 17% versus the previous quarter, almost neutralizing the conventional production decline driven by the successful exit strategy of our mature conventional fields that accounted to only 14,000 barrels per day in the quarter. Beyond crude, natural gas production totaled 38.4 million cubic meters per day, down 3% on a sequential basis. This decline reflects an 18% contraction in conventional production from mature fields, partially mitigated by an expansion of 5% in shale gas production. Regarding prices within the Upstream segment, crude oil realization price averaged $60 per barrel in the third quarter, essentially flat on a sequential basis and contracting 12% year-over-year, aligned with the variations of Brent. Natural gas prices increased by 6% quarter-over-quarter to an average of $4.3 per MBtu, supported by the seasonal factor included in the planned gas program between the months of May and September. Now let me dive into the evolution of our shale oil output. YPF reinforces its leading position in the development of Vaca Muerta oil, accounting for roughly 1/3 of the country's share. In the third quarter, we continued to deliver a solid performance driven not only from our key core hub assets, but also from contributions from the North and South hub blocks. In the third quarter of 2025, shale oil production delivered an impressive growth rate of 55% when compared to 2023 levels. Based on preliminary figures, October production reached an all-time high of 190,000 barrels per day, representing a strong increase of 70% vis-a-vis November 2023 and ahead of schedule. As Horacio previously mentioned, based on the current production levels, we expect to comply with the average production target announced for the full year 2025 of around 165,000 barrels of oil per day, and we expect to slightly exceed the exit rate of 190,000 barrels of oil per day as of December 2025. In the third quarter, we continued with the strategy of developing Vaca Muerta beyond our core hub blocks. In this context, let me point out the success story of La Angostura Sur, our flagship South hub block 100% owned by YPF under an unconventional concession valid through 2059, underscoring the long-term potential of the south of Vaca Muerta for YPF. Over the past 12 months, shale oil output from this block has jumped from only 2,000 barrels of oil per day in October of last year to more than 35,000 barrels per day in October this year, representing in financial terms, a field with a pro forma annual EBITDA of more than $500 million. The results achieved so far are impressive. Moreover, the block expects to reach a production plateau of over 80,000 barrels of oil per day in upcoming years with a very competitive breakeven price below the $40, demonstrating resilience amid evolving global dynamics. Finally, wells drilled in the block during the initial stage of development have demonstrated promising productivity levels that underscore their long-term potential, recording an estimated ultimate recovery of around 1.3 million BOE per well, including oil and natural gas. Furthermore, the high potential is also driven by a total inventory of roughly 350 wells, of which less than 15% has been developed. Regarding our upstream cost structure, let me point out that the combined strategy of divesting mature conventional fields and growing our shale business has enabled us to generate significant savings in our average lifting cost of more than 40% over the last 2 years, moving from $16 per BOE in the third quarter of 2023 to $9 per BOE in the third quarter this year. This remarkable cost improvement was achieved due to the significant shift in our production mix where unconventional production increased from about 45% of the total output in the third quarter of 2023 to nearly 70% in the third quarter of 2025, while conventional production portion fell from around 55% to 30% in the same period. As a result, since shale lifting costs remained at a very competitive range of $4 to $5 per BOE, YPF was able to improve its cost structure and therefore, its annualized savings would amount to approximately $1.3 billion. YPF will continue and deepen this strategy, supported by the completion of the sale and reversal of mature conventional blocks by the end of 2025, the AndNDEes-1 project and the sale of the rest of the performing conventional fields, the ANDE 2 project, which initial results are expected by the end of this year. Consequently, YPF will become 100% pure shale player with an efficient lifting cost structure of around $5 per BOE in the near future. Now let me walk you through the performance of our shale activities. In the third quarter, we drilled 54 horizontal oil wells on a gross basis, primarily in operated blocks with a net working interest of 58%, bringing the year-to-date to 159 horizontal oil wells on a gross basis. This keeps us on track to achieve our full year target of 205 wells in 2025. In terms of completion and tie-in of oil wells during the quarter, we recorded modest level of activity compared to last year, but year-to-date, we continued growing. In the third quarter, we completed 63 horizontal oil wells and tied in 64 on a gross basis. However, in the first 9-month period of this year, we completed 186 wells and tied in 187 wells, growing around 20% compared to the same period of last year. In terms of efficiencies within our shale operations, during the third quarter, we continued setting new records on drilling and fracking performance. We averaged 337 meters per day in drilling in our core hub, while we recorded 279 stages per set per month on fracking in unconventional blocks, increasing by 7% and 16%, respectively, when compared to the same quarter of 2024. As we have been flagging in previous calls, this constant improvement in operation metrics is the result of the implementation of our real-time intelligence center and the joint efforts of our technical team and key contractors that work relentlessly to introduce further efficiencies to our operations. Finally, regarding the CapEx composition within the upstream business, it is worth noting that how YPF managed to significantly transform the portfolio by reallocating investments from conventional to shale activity in the last 2 years. In this regard, in 2023, investments in conventional business represented 35% of the total upstream portfolio, while in the last 12 months of September 2025, CapEx in conventional assets only represented 5%. Furthermore, within the shale portfolio, investments in facilities represented a significant portion of total CapEx over the last 2 years, which is expected to remain steady in 2026 and begin to gradually decline starting in 2027. Switching to our Midstream and Downstream segment, the third quarter processing levels averaged 326,000 barrels per day, a record high since 2009 with our refinery utilization at 97%, representing an increase of 9% and 8% versus the third quarter 2024 and the second quarter 2025, respectively. This remarkable success is mainly driven by the record processing levels of 208,000 barrels per day achieved in September at La Plata refinery, combined with record production of middle distillates reducing to almost 0 full imports. Domestic sales of diesel and gasoline remained strong in the quarter with dispatch volumes rising 3% quarter-on-quarter and 6% year-over-year, reflecting higher demand across all commercial segments, retail, agribusiness and industrial. Moreover, we managed to modestly expand our leading market share to 57%, which increases up to 60% considering gasoline and diesel produced by YPF and dispatched at third-party gas stations. Furthermore, in the third quarter, YPF achieved an improvement in the premium mix in both gasoline and diesel sales. In terms of prices, during the third quarter, local fuel prices remained broadly aligned with international parities, albeit dropping against the previous quarter based on a very volatile environment. More recently, October preliminary figures show a narrowing of the gap between local fuel prices and import parities while recovering on a healthy midstream and downstream adjusted EBITDA margins of nearly $70 per barrel. Now let me briefly comment on the progress of the quarter regarding the efficiency program for the upstream and downstream businesses. Thanks to the supervision of our upstream real-time intelligence center, we managed to drill 100% autonomously more than 30 horizontal wells in real time using AI complemented with traditional techniques. While in fracking, we became the first company worldwide to perform 100% autonomous fracture remotely from our real-time intelligence center using predictive algorithms. Additionally, we have successfully executed 24 hours of continuous pumping in our fracking operation during 63 hours, fully supervised by our upstream real-time intelligence center. Regarding the downstream segment, as Horacio already noted at the beginning of the call, our La Plata refinery was awarded as the refinery of the Year in Latin America. Also, this refinery achieved the first quarter in several KPIs of Solomon's benchmarking, such as net cash margin, return of investment, operational availability and personnel efficiencies categories. Finally, the record high processing levels in our refineries have started generating a surplus of gasoline and mid-distillates, allowing YPF to export refined products to neighboring countries and replace imports of YPF and other local refineries. For instance, in the third quarter 2025, YPF exported around 30,000 cubic meters of jet and gasoline to Uruguay. And during the first 9 months of the year, we replaced more than 230,000 cubic meters of gasoline and middle distillates imports. Now let me share further details regarding the Argentina LNG project. As briefly anticipated by Horacio, regarding the Phase 3 of the project in early October, we signed a technical FID with Eni for a fully integrated LNG project of 12 MTPA expandable to 18th MTPA. And more recently, during the last week's APEX conference in Abu Dhabi, we signed a preliminary framework agreement with a new partner, the Arab company, ADNOC, that formally announced their intention to join the Argentina LNG project. Moreover, during the quarter, we continued working on the Phases 1 and 2. The project considers the development, design, construction and operation of a fully integrated natural gas LNG plus natural gas liquids NGLs project based on wet gas upstream fields located in the Vaca Muerta reservoir. The infrastructure involved in the project includes a liquefaction capacity of 12 MTPA expandable to 18 MTPA through 2 or 3 floating LNG vessels of 6 MTPA of capacity each, a dedicated 520 kilometers gas pipeline, a dedicated 650 kilometers Y-grade pipeline for NGLs and onshore facilities, including fractionation, storage and port facilities. The CapEx for the entire project is estimated at around $20 billion with a potential expansion to $25 billion in both cases, including the financial costs. Leverage of the project is expected to be around 70% on the total project cost in addition to the upstream investments required to accelerate shale natural gas production. Consistent with present LNG transactions, the project is intended to be financed through nonrecourse financing with multiple sources of funding, including ECAs, development banks and commercial banks as potential anchors of the financial structure. The FID is expected by the first half of next year, while the commercial operations for the first floating LNG is estimated by 2030 and following ones from 2031 and 2032. In summary, Vaca Muerta has the scale, the quality and cost competitiveness to position Argentina as leading global LNG exporter and Argentina's LNG project will unlock Vaca Muerta's full potential, enabling exporting its unconventional shale gas production to the world. Now I will turn the call over to Pedro.

Thank you, Max, and good morning, everyone. On the financial front, the third quarter ended with a negative free cash flow position as expected that amounted to $759 million, mainly explained by the recent acquisition of the shale assets La Escalonada and Rincon La Ceniza blocks to Total astral, closed at a purchase price of $523 million by the end of September. Moreover, despite the third quarter adjusted EBITDA surpassed CapEx deployment and regular interest payment, we recorded negative working capital associated with the discontinued operations in our mature fields, income tax payments from our subsidiaries and longer collection days from natural gas clients and blank gas program that started to normalize during October. It is worth noting that excluding the one-off items related to M&A transactions and the negative impact of the mature fields exit strategy, our negative free cash flow would have amounted to $172 million in an environment of lower international prices. Finally, on the liquidity front, our cash and short-term investments totaled at $1 billion by the end of September, remaining essentially flat vis-a-vis the previous quarter. In terms of financing, during the third quarter, we continued progressing on our financial program by securing local loans obtained from relationship banks and by tapping the local capital market at very attractive financing costs. In that sense, during the third quarter, we issued 2 dollar net bonds for a total amount of $300 million at an interest rate of 7.5% and a tenure of 2.5 years. In addition, we issued $225 million from dollar capital bonds with a 5-year tenure and an interest rate of 8.5% tendered in the international market to local investors. That, combined with a $300 million international bridge loan allow us to find the recent acquisition of shale assets. More recently, during October, we issued $100 million net bond with a 15-month tenure at an interest rate of 6%. Considering this last bond issuance, we issued new local bonds for a total amount of $625 million with an average tenure of 3 years and an interest rate of 7.65%. Moreover, aiming to reduce the cost of carry and taking a proactive approach towards debt investors, we scheduled for this month, the prepayment of $120 million of our secured notes due 2026, paying in advance the last amortization, which matures next year and thereby redeeming in full the bond ahead of schedule. Finally, let me share 2 very important news regarding YPF financial strategy. First, during October, we reopened the syndicate corporate cross-border loan market. We signed an export back loan for $700 million with 10 international banks with a 3-year tenure and a 6-month availability period as a prefunding strategy for the financing of our 2026 maturities. This transaction was possible after several months of work, showcasing YPF ability to access cross-border funding. Moreover, the loan was oversubscribed and attracted participation from new banks from Central America and Asia, demonstrating the market support and confidence in YPF. Finally, as Horacio previously mentioned, 2 weeks ago, we successfully returned to the international capital market. After 2 days of virtual meetings with more than 40 international investors, we led the recap of our 2031 international bonds of $500 million at a yield of 8.75%. Demand for this reopening exceeded all expectations with international and local investors oversubscribing orders 3x, reaching a peak order book demand of $1.5 billion. The proceeds will be used to fully repay the bridge loan for the acquisition of Total astral shale assets and to finance YPF investment plan. This issuance represented YPF tightest new issue yield on an international bond issuance in the last 8 years and improved the maturity profile of itself, extending its average life. So with this, we conclude our presentation and open the floor for questions.

[Operator Instructions] Your first question comes from Alejandro Demichelis with Jefferies.

Yes. Congratulations on the quarter. Production has been very strong, particularly on the shale oil side of things. Could you give us some indication of how you're seeing production growing into 2026, 2027? That's the first question. And then Horacio, you mentioned all of the improvements that we are doing on the refining side and so on. We have seen you recently taken full control of the revenue asset. So could you please give us some indication of how you see that asset developing on the rest of the refining portfolio?

Okay. Thank you very much for the question. Regarding the production, we see -- you can expect the same that we talk in line what we see in New York this year but at average for next year in the order of 215 and '27 in order of 290. We can give you a better number in the next call. But we think that we are going -- we are in line with all the program, okay? Regarding the refining side, [indiscernible] what was important was for the [indiscernible]. The [indiscernible] was very, very important for YPF because they give us a very good logistical advantage comparing with our, I would say, our competitors. And that's why it was that we decided to take that step because it was a difficult situation with the partner in that matter. For the gas stations, there is no difference because we were supplying those gas stations. We are going to take the best one with the YPF brand and we maintain the other with [indiscernible] as is today. And on the other side, in the refinery, which is in Campo Durán is close. But our idea is to make value for all the shareholders by doing something of this sort that we say in Santa Fe Bio, okay? So we are working on in that direction.

Your next question comes from Leonardo Marcondes with Bank of America.

I have 3 from my side. My first question is regarding capital allocation and M&A. We have seen YPF quite active on the M&A front, right? In this regard, what should we expect from the company going forward? I mean, does the company continue pursuing new M&A opportunities? Or is it time to focus on the development of the assets within the portfolio? My second question is regarding the divestments and capital allocation as well. So could you share your plans for Metrogas and also YPF Agro? And when could we expect to hear more news on these matters? And lastly, my third question is regarding the LNG projects. I mean how do you expect to fund this project? And if we should expect any sort of project finance evolving there?

Okay. Thank you very much for the question. For the first Okay. Thank you very much for the question. For the first one, Pillar 2 of our YPF 4x4, is active portfolio management, that means buy and sell. It depends where you can make more value for shareholders. We were active out with the bat field, and we see -- there was a big opportunity this year for the, I would say, core assets in Vaca Muerta. And that's why we decided to buy the total asset of Vaca Muerta. What you are going to expect, I don't see that there will be a lot of changes in our strategy, but we don't see that we will be active next year for major acquisition in Vaca Muerta, not in the others, okay? So that is what is our thought. Regarding Metrogas, Metrogas, we are in the process of the extension, the 20-year extension of the company, the contract. More than contract is the concession. They tell me concession here because remember I am an old man, I don't remember all the words as there are people here that they say you are wrong iss a concession, okay? So it's a concession. And our idea there is that after that, we start with the bank, and we are going to sell as soon as possible, okay? And for the law, we have to sell because of the -- I don't know how the -- I ask Herman that is the lawyer [Foreign Language] the vertical integration that they have the company, we have to sell before the plant gas is out. And so we are going to sell that. And YPF Agro is not necessary capital allocation. What is there is that we are -- YPF wonderful commercial channel that was built by YPF say, 20 years ago or so and it's extremely extremely successful. That's why there is the other company that refinery also they call with the name. So they copy the YPF. Our idea is because we have the knowledge of selling on the other things is that to have a strategic partner that can make more value for us and for all the shareholders and to have like a mixed company where we put the CFO inside, and we will have 50% and 50%, okay? That is the idea, and they will be very close now. That is on the stake right now, okay? And that is the second question that you asked. Regarding the LIC, you're right, it's a project finance that we are going to do with our partners. You're right.

Your next question comes from [indiscernible] with Morgan Stanley.

First one on my end is, could you give us more color on what drove the working capital losses this quarter? And what should we expect in terms of working capital gains or losses in the coming quarters and how this should contribute to free cash flow generation into 4Q? Second one is if you could give us more color on what drove the lifting costs. Was it just higher shale output? Or are there any other factors which explain this decline and how this -- how should we should expect this into 4Q as well? And if I may, a third one, if we should expect an acceleration of 4Q '25 CapEx? And how should your CapEx stand versus the guidance?

The first question after I will pass to Pedro, so they can explain in more detail than me. But I can tell you the more general, but I will pass to Pedro. For the second one in the lifting cost, remember that we are going out of mature fields and reducing the production from there, but you are increasing a lot of the production as you see in the presentation in the Vaca Muerta fields. So there is several reasons why we reduce. First, we have a clear in Pillar 3 that we have to make efficiency every day in our life. The second thing is when you increase a lot of the production, you reduce the fixed cost. And so you have to expect that we are going to maintain or reduce. But I think to maintain is a good number that we have, I think we are in a very low lifting costs, okay, is very low. Which more you asked any other factors explain this decline? I expected, I explained that. I think I answered that. In the fourth quarter '25, the CapEx, no, we think that we are going to end up in the year with a little less CapEx than we said at the beginning of the year. And the production, if you see the -- while you see, you don't see that, but I see the report, the daily reports, we are -- they -- now we are in more than 190. Today -- yesterday it was more than 284. We have someday 199.94. So I start discussing with the guy why it's not 200, but it doesn't matter. So we are close and we are in better shape than we thought at the beginning of the year. So we are focusing in looking at the results and looking at the best places to drill. That's why we are expecting those results. And with the CapEx, I say. I pass to Pedro so they can explain about the working capital.

Thank you very much for your question. So as you noted, during the third quarter, we recorded a negative working capital by about $360 million, and that was driven by multiple reasons. The first, the seasonality of the natural gas sales that was -- that were accrued in the third quarter and are expected to be collected in the fourth quarter. That's approximately $100 million. Second, we recorded in the third quarter longer collection days from the natural gas clients and from the plan gas program that started to normalize during October and November. That's approximately $50 million. Third, in the third quarter, we recorded a positive stock variation in the downstream business for about $60 million. That's the result of higher oil purchases to third parties to restock inventories given the inventory drawdown that we recorded in the second quarter. Then we recorded a particular lag in the OpEx and the CapEx from the mature fields that were out from YPF financial statements since the end of June, and those payments were phased during the third quarter. And finally, this negative free cash flow includes a decrease in the mark-to-market position of our sovereign bonds, which increased and changed fortunately during October and November.

Your next question comes from Daniel Guardiola with BTG.

I have a couple of questions here. The first one is on costs. And I would like to know if you can share with us how do you envision the trajectory of your lifting and D&C costs for 2026 and eventually, if possible and onwards, it will be great, especially considering the asset sale you did of conventional assets and the potential renegotiation of contracts with some of the service companies. My second question is on leverage, given the fact we saw an increase in leverage during this Q to 2.1x. And I would like to know if you can share with us what is the maximum leverage at which the company feels comfortable operating at. And in that sense, given that leverage has been going up in the last couple of quarters, I would like to know if you guys have ever considered to hedge your exposure to oil prices to offset any potential volatility in oil prices. So those would be my 2 questions.

Okay. With the listing and the drilling and completion cost, I can give you more details in the next call. We are working very hard to reduce the unit cost with all the service company, and we are in negotiation during the week, okay? So I cannot tell you exactly, but I think we are going to reduce the unit cost very important because Argentina is another country. So that's why we are going to work on that. In the listing, I think I answered that, okay? You have to expect that we are going to be in that region, okay, that we say. Regarding, that were -- you say our debt in -- I think you have to take into account that last year, we bought 2 assets, okay? That's why the ratio goes up. We don't go -- we are not going to increase. It's not our goal that we think that we are in the maximum that we want to be. And during '23, you are going to see a reduction. But taking into account what is that we bought 2 good assets in Argentina, the best in gas and the -- I don't say the best in oil, but one of the core that is very important. That's why we thought that was important to buy those assets and make more value in the future in the near future for all the shareholders.

Your next question comes from Guilherme Martins with Goldman Sachs.

[indiscernible], is a strong ramp-up of shale operations being seen in the second half of the year. I have 2 quick questions here. My first one is on downstream. I understand you guys were not able to price prices in line with international parity in 2Q, right? I would just like to get a little bit more color on what happened in the competitive environment. You mentioned a volatile dynamics, but any additional color would be grateful. And my second question, if you guys could please provide an update on the ongoing divestment of Metro fields. When we should see next divestments being concluded? When we should see production continue to decline following the exit of those assets? And whether we should see additional cash outflow from the exit of those legacy assets? Thank you.

Sorry, okay. Talking about prices, we have a policy that I cannot open -- be totally open because it's not we are going to say to our competitor. But we have moving average because there was -- in the last -- this quarter, there was a lot of volatility in prices. And remember that we have the exchange rate, the oil price, the biofuels and the taxes. And so in our country, the consumers need to, we are not accustomed to have changes on prices every day, okay, and big changes. So we have a moving average. And I don't know if you remember that we built a new real-time [indiscernible] center in the commercial side that is unique. I don't know if you are making, I don't know if you are making [indiscernible], okay? We have there everything that you can imagine with use AI and a lot of things. And from there, we are working with the new policy of prices that is micro pricing. And we are working and always trying to maintain our policy in -- but the last quarter was the big volatility in -- also in Argentina. You know that there was a lot of volatility. And that's why it was very difficult to go up because sometimes goes up, sometimes goes down. But now we are in a good shape. And the second one was about the -- I think and all that stuff. Today in the afternoon, we are going to sign [indiscernible] that was the last one. And we have only one area that is in Rio Negro that we are going to sign very quickly. But after that, we are out [indiscernible], okay? It was the most important for the value of our shareholders. But we understood, we are in the process of negotiating now to go out from conventional. Those conventional are areas that make value for all, but it's very important because we have the determination to go to be unconventional -- integrated unconventional company. So that is our goal, and we are going to negotiate in the next month to be out more than we can lots of assets and to be next year or if we can to be totally unconventional company.

Your next question comes from Tasso Vasconcellos with UBS.

I have 2 here on my side. First one, Horacio, can you remind us what legislations, I mean, either new legislations or adjustments on existing ones that YPF still relies on to move forward with and projects. As far as I remember here, there wasn't many new regulations that the oil and gas industry as a whole depend on, but there are some specific timing on some projects to be included under the region. So not sure if there is -- actually not check there is any kind of discussion on the 8% export taxes for the industry. So I think it would be great to have a broader recap on this political or regulation landscape. And the second question, actually a follow-up on the domestic fuel prices. You just mentioned about what did you notice in terms of upside or downside potation since the established a more dynamic pricing model, the real-time center and so on? And what can you tell us about the recent news saying that some politicians in Argentina wanted to create a law which you need to give a 72-hour notice advanced before adjusting fuel prices? Those are my 2 questions here.

Okay. Thank you for the question. I don't know, thank you for the question. But beyond, the -- really is -- if you are refrain to the export duty for conventional, there is something new. I know exactly what you say on the new because remember, we are YPF, we are a private company, and we are not in the, I will say, regulation side. So really, I don't know. And conventional, remember that is not our -- now is not our core, okay? But I read in the news they sent to you that they are negotiation on that, but I have no idea what will happen. Regarding resi, for sure, the resi will be apply for LNG and if supply for infrastructure for LNG. And for LNG, we expect that to be in all the chain. The second one that you say that is -- yes, I read in newspaper the same to you, but that is regulation. I have to answer the same. I'm not working on regulation at all.

There are no further questions at this time. I'll now turn the call back to YPF management team for closing remarks.

Okay. Thank you very much for your attention, for your questions, and you are always very polite with us. So I would like to say thank you for that. And you have to expect that this is a company that will change a lot the way of management, the way of working every day. I'm very proud for all the work that all the employees is doing now and the energy that we are putting. And so you have to spread '26 a very clean year of the results. The problem of this year, and I imagine for you, it is very difficult to see because there is dirty with mature fees with taxes, with deferred taxes that only account I can understand. And when they explain, they are confused. So it's difficult to understand what you are saying. And so you have to 26, a very clean one, and you will see there how we are making the value for our shareholders that you can see in this quarter. I relate to for you because there are some people that are confused we say that the production is increasing operation where you're making value because we are reducing the conventionals. And if you annualize the value so far only to change the mixture is $1.3 billion. And this quarter, you can see that. So we are really very proud of we are doing all the people that we are an executive committee and all the people that are working there. Thank you very much for all of you.

This concludes today's conference. Thank you for participating. You may now disconnect.