Ypf Sa Class D · BCBA:YPFD
Ypf Sa Class D — Investor Presentation (March 2019)
19 slides from Ypf Sa Class D's investor presentation, March 2019
Slide 1: Investor Presentation March 2019
INVESTOR PRESENTATION March 2019 1
Slide 2: Important Notice
IMPORTANT NOTICE Safe harbor statement under the US Private Securities Litigation Reform Act of 1995. This document contains statements that YPF believes constitute forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995. These forward-looking stateme
Slide 3: YPF Today
YPF TODAY A 95-year- Publicly The largest World-class The leading downstream player YPF Luz fifth- old traded O&G producer shale producer in Argentina largest power company corporation in Argentina generator in • 3 refineries: 50% of Argentina´s since 1993 on capacity. Over 320 kbbl/day Argentina: t
Slide 4: Leading Argentine O&G Company
LEADING ARGENTINE O&G COMPANY UPSTREAM DOWNSTREAM MARKET SHARE BREAKDOWN (%) MARKET SHARE BREAKDOWN (%) Oil Others Crude Processing 1 No. of Gas Stations 2 Production 1 20% Others Others 2% 45% 3% 4% 2% 27% 4% 16% 35% 61% 5% 6% 21% 17% 6% 12% 14% Others Gas Gasoline 1 Diesel 1 19% 37% Production 1 O
Slide 5: Integrated Across Value Chain
INTEGRATED ACROSS VALUE CHAIN Oil Domestic Purchases Domestic market business market 83% Domestic prices (gasoline, diesel) 90% 17% International prices (bunker, jet fuel, petrochemicals, lubricants, LPG and others) Production Refining Exports 227 Kbbl/d 284 Kbbl/d International prices 10% (naphtha,
Slide 6: Upstream: Significant Potential with Leading Market Position
UPSTREAM: SIGNIFICANT POTENTIAL WITH LEADING MARKET POSITION Cuyana YPF has 108 concessions in the most productive Argentine Proved reserves: 41 mm boe basins (total reserves 1P: 1,080 mm boe) and 24 exploration % liquids: 99% blocks in the country % gas: 1% Production: 6.6 mm boe 2018 Neuquina Prov
Slide 7: Safety and Sustainability as Core Values
SAFETY AND SUSTAINABILITY AS CORE VALUES TOTAL IFR DOW JONES # of people injured for each million hours worked SUSTAINABILITY INDEX (1) 2008 - 2018 Oil & Gas Upstream & Integrated Industry YPF score by RobecoSAM 1.89 100 DJSI OGX Industry Average 90 1.60 80 1.27 70 60 1.05 1.05 0.91 50 44 0.82 46 0.
Slide 8: Organic Increase in Reserves
ORGANIC INCREASE IN RESERVES Reserve Replacement Ratio 178% Shale P1 reserves representing 19% of total reserves TOTAL HYDROCARBON PROVED RESERVES (MBOE) 1,212 1,226 1,132 1,083 1,113 1,080 1,014 982 1,005 979 929 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 8
Slide 9: Total Production Decreased by 4.5% Driven by Natural Gas Curtailments
TOTAL PRODUCTION DECREASED BY 4.5% DRIVEN BY NATURAL GAS CURTAILMENTS TOTAL PRODUCTION PRODUCTION BREAKDOWN (KBOE/D) NGL (KBOE/D) Conventionals Shale + Tight Natural Gas -4.5% Crude Oil 20.9 555.0 555.0 530.2 530.2 -23.1% -39.5 -6.2 24% 28% -4.6% 76% 72% -0.2% 2017 2018 2017 Shale Conventionals Tigh
Slide 10: Strong Increase in Net Shale Production Combined with Cost Reductions
STRONG INCREASE IN NET SHALE PRODUCTION COMBINED WITH COST REDUCTIONS Dec ‘18 NET SHALE O&G PRODUCTION (1) 72 SHALE OIL DEVELOPMENT COST - LOMA CAMPANA (KBOE/D) (USD/BOE) 57.7 16.1 +57.0% 13.4 11.4 36.7 2016 2017 2018 SHALE OIL OPEX COST - LOMA CAMPANA 2017 2018 (USD/BOE) 12.0 PRODUCING NEW WELLS AC
Slide 11: Expanding the Current Shale Oil Development Hub Size with 3 FIDs
WE ARE EXPANDING THE CURRENT SHALE OIL DEVELOPMENT HUB SIZE WITH 3 FIDs GROSS NEW GROSS DEDICATED PRODUCTION PRODUCING CAPEX 2019 (1) RIGS (1) Dec-2019 (1) WELLS IN 2019 (1) (MUSD) (KBOE/D) LOMA ~4 ~40 ~59 ~670 CAMPANA-Ph2 LA AMARGA ~4 ~39 ~22 ~560 CHICA BANDURRIA ~3 ~8 ~10 ~290 SUR 50 11 11 12 New
Slide 12: Gas Production, Restrictions and Price
GAS PRODUCTION, RESTRICTIONS AND PRICE 2018 NATURAL GAS PRODUCTION 2018 GAS REALIZATION PRICE Mm3/d USD/MMBTU Estimate vs. Actual NG Production Production curtailments Market 48 8 Subsidies 46 7 5 44 6 4 42 5 40 3 4 38 3 36 2 2 34 1 32 1 30 0 0 Estimated 2018 Actual 2018
Slide 13: Tango FLNG Barge-Based Floating Liquefaction Unit
TANGO FLNG BARGE-BASED FLOATING LIQUEFACTION UNIT First step towards positioning Argentina as an LNG export player Arriving Q1 -2019 – LNG production Q2 2019 Expected sales around USD 200 million per year LOCATED LIQUEFACTION CAPACITY STORAGE CAPACITY CONTRACT SUPPLIER Bahía Blanca 500,000 ton/year,
Slide 14: Downstream: Solid Market Leadership
DOWNSTREAM: SOLID MARKET LEADERSHIP Monthly Diesel Sales (Km3) +4.5% 800 Luján de Cuyo refinery AProved reserves: % liquids: 98 85 M boe D 750 Capacity: % gas: 2 105.5 kbbl/d Production: 8.8 M boe 700 2018 650 2017 La Plata Proved refinery reserves: 85 M boe 2016 B % liquids: 98 600 Capacity: % gas:
Slide 15: Gradual Adjustments in Fuel Prices to Bridge Gap with Import Parity
GRADUAL ADJUSTMENTS IN FUEL PRICES TO BRIDGE GAP WITH IMPORT PARITY FUELS BLENDED PRICE VS IMPORT PARITY(1) (% VARIATION) Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Fuels Blended Price Import Parity (1) Import parity includes international refer
Slide 16: Positive Free Cash Flow Driven by Strong Cash Generation
POSITIVE FREE CASH FLOW DRIVEN BY STRONG CASH GENERATION CONSOLIDATED STATEMENT OF ADJUSTED CASH FLOW FREE CASH FLOW (4) (In Millions of USD) (Cumulative, In Millions of USD) 4,456 1,313 347 966 274 -3,143 691 2,241 -951 405 1,515 -648 287 -439 Cash & Cash flow Capex(2) Interest Others Net financing
Slide 17: Strong Cash Position to Cover Short Term Maturities
STRONG CASH POSITION TO COVER SHORT TERM MATURITIES FINANCIAL DEBT AMORTIZATION SCHEDULE (1) (2) USD denominated debt DETAILS (In Millions of USD) Peso denominated debt 1,724 1,761 90% denominated 1,515 in USD and 10% 1,468 1,491 in Argentine Pesos Average interest rates of 7.37% in USD 734 and 44.7
Slide 18: Outlook Year 2019
Outlook Continue improving safety track record; sustainability as a core Year 2019 value Focus on shale oil to accelerate growth based on outstanding 2018 results Secondary recovery turn around and massive deployment of EOR Shale gas development slow down; production to match demand while we create
Slide 19: Investor Presentation
INVESTOR PRESENTATION March 2019 19