YPF Sociedad Anónima (NYSE:YPF) shares rose 4.12% in pre-market trading on Tuesday after the Argentine energy company delivered second-quarter earnings and revenue above analyst expectations, supported by higher shale production, record refinery processing and stronger international oil prices.
Adjusted earnings per share reached $3.07, exceeding the analyst estimate of $2.10 by $0.97. Revenue came in at $6.57 billion, ahead of the $5.96 billion consensus forecast and 42% higher than $4.64 billion in the same period last year.
YPF posts record quarterly adjusted EBITDA
Adjusted EBITDA climbed 149% year-on-year to a record $2.80 billion, marking the strongest quarterly result in YPF’s history.
“Adj. EBITDA reached a record US$2,804 million, marking the highest quarterly EBITDA in YPF history,” the company stated in its earnings report.
The adjusted EBITDA margin expanded to 43% from 24% in the second quarter of 2025, highlighting the scale of the improvement in profitability.
Higher shale production, increased refinery processing and stronger international oil prices were key contributors to the quarterly performance.
Shale oil production rises 47%
YPF’s shale oil production averaged 213,000 barrels per day during the quarter, representing a 47% increase from a year earlier.
Shale accounted for 80% of the company’s total oil production, demonstrating the growing importance of unconventional operations within YPF’s production portfolio.
Capital expenditure increased 16% year-on-year to $1.34 billion, with 77% directed toward unconventional operations.
The company expects production growth to accelerate during the second half of 2026 and remains on track to achieve its full-year shale oil guidance of 215,000 barrels per day.
Refinery processing reaches record level
YPF’s refineries processed a record 351,000 barrels per day during the second quarter, an increase of 16% year-on-year.
The higher throughput allowed the company to meet domestic fuel demand without importing diesel or gasoline during the quarter, while also supporting increased exports.
The absence of diesel and gasoline imports represents another notable operational milestone as YPF works to increase domestic production and processing efficiency.
Free cash flow strengthens as leverage declines
Strong operating performance translated into free cash flow of $824 million, the third-highest quarterly figure in YPF’s history.
The company’s net leverage ratio fell to 1.09x from 1.93x a year earlier, reaching its lowest level in 11 years.
For investors, the combination of record adjusted EBITDA, stronger free cash flow, lower leverage and rapidly expanding shale production provides several measurable signs of improving operating performance. The next key test will be whether YPF can maintain this momentum as it increases unconventional investment and targets further production growth during the second half of 2026.