YPF Q1 Earnings Beat Estimates on Lower Expenses & Higher Oil Output

YPF Sociedad Anónima YPF reported first-quarter 2026 earnings of $1.03 per share, which beat the Zacks Consensus Estimate of 83 cents by 24.1%. The bottom line improved from the year-ago quarter’s figure of 32 cents per share.Total quarterly revenues of $4.9 billion missed the Zacks Consensus Estimate of $5 billion by 2.0%. The top line increased 7.3% from the prior-year level of $4.6 billion.The strong quarterly earnings were driven by increased crude oil production, higher crude oil price realizations and reduced total operating expenses. However, reduced hydrocarbon production and lower natural gas price realizations partially offset the positives.YPF Sociedad Anonima Price, Consensus and EPS Surprise YPF Sociedad Anonima price-consensus-eps-surprise-chart | YPF Sociedad Anonima QuoteOperational Performance of YPFUpstream ProductionIn the first quarter of 2026, YPF’s total hydrocarbon production was 525 thousand barrels of oil equivalent per day (Mboe/D), down 5% from 552.1 Mboe/D in the corresponding period of 2025. Crude oil production in the reported quarter averaged 271.0 thousand barrels per day (MBbl/D) compared with 269.9 MBbl/D a year ago. The improvement can be primarily attributed to higher shale production, partially offset by lower conventional output.YPF’s natural gas production in the reported quarter decreased 12.2% year over year to 32.8 million cubic meters per day. Gas production was primarily affected by lower conventional gas output from mature fields. Natural gas liquids production was 47.7 MBbl/D compared with 47.3 MBbl/D in the prior-year quarter.Average Price RealizationsThe average price realization for crude oil improved 0.8% year over year to $68.4 per barrel. The average natural gas price realization fell 1.7% from the year-ago quarter to $2.9 per million British thermal unit.YPF’s adjusted EBITDA from upstream activities increased 46.8% year over year to $1.1 billion, primarily driven by lower lifting costs and other expenses.Midstream & DownstreamIn the quarter under review, processed crude volumes reached 344.3 MBbl/D, up 8.3% from 318 MBbl/D in the year-ago quarter. Refineries’ utilization rate in the first quarter was 102%, up from 94% in the prior-year quarter.Adjusted EBITDA, excluding the price effect of oil products on inventories, for the segment was $598 million, improving 9.5% year over year.YPF’s Total Operating ExpensesOperating expenses in the quarter totaled $1.4 billion, down 20.1% from $1.7 billion in the year-ago quarter.YPF Converts Operations and M&A Proceeds Into CashNet cash flow provided by operating activities in the quarter was $1.9 billion. The company reported free cash flow of $871 million for the quarter. Capital spending for the first quarter was $980 million, down 19% from a year ago, driven by lower exposure to conventional assets and the acquisition of new unconventional concessions, which were booked in the first quarter of 2025.YPF’s Deleverages and Rebuilds LiquidityAs of March 31, 2026, the company’s cash and short-term investments were $1.7 billion, up from $1.1 billion recorded in the fourth quarter of 2025. Net debt decreased to $8.4 billion from $9.4 billion in the fourth quarter of 2025. Net leverage declined to 1.57X from 1.87X sequentially, supported by both higher liquidity and lower gross debt.The company used strong cash generation to prepay about $750 million of debt in the first four months of 2026, aiming to reduce future maturities and lower its average cost of debt.YPF 2026 GuidanceYPF reaffirmed its full-year 2026 capital expenditure guidance in the range of $5.5 billion to $5.8 billion. The company expects spending and activity to increase further in the coming quarters, which should support higher oil and gas production in the second half of 2026.YPF’s Zacks Rank & Other Key PicksYPF currently sports a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks from the energy sector are Chevron Corporation CVX, BP plc BP and Eni S.p.A. E. CVX, BP and E each currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Chevron reported first-quarter 2026 adjusted earnings per share of $1.41, which beat the Zacks Consensus Estimate of 92 cents.As of March 31, 2026, CVX reported $5.3 million in cash and cash equivalents. At the quarter's end, its total debt amounted to $45.4 billion.BP reported first-quarter 2026 earnings of $1.24 per American Depositary Share, which beat the Zacks Consensus Estimate of 91 cents.As of March 31, 2026, BP reported $35.7 million in cash and cash equivalents. At the quarter's end, its long-term debt totaled $25.3 billion.Eni reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13.As of March 31, 2026, E had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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