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Key Takeaways YPF, Eni and XRG seek RIGI approval as the Argentina LNG project moves toward a 2026 FID.Two FLNG units could provide 12 MTPA capacity, linking Vaca Muerta gas to global LNG markets.The integrated project spans gas production, transportation, processing and offshore LNG exports. YPF Sociedad Anónima (YPF - Free Report) is advancing its Argentina LNG project with Eni S.p.A. (E - Free Report) and XRG, creating a potentially significant long-term growth opportunity by leveraging the world-class gas resources of the Vaca Muerta formation. The consortium has submitted an application to join Argentina’s Large Investment Incentive Regime ("RIGI"), marking an important step toward the development of a large-scale liquefied natural gas ("LNG"") export platform. For YPF, the project could expand its role from domestic energy production toward international LNG markets, creating an additional avenue for growth and value creation.

The RIGI application is an important milestone on the path toward a final investment decision (FID), targeted for the end of 2026. Securing the required investment incentives could help support the development of the capital-intensive infrastructure needed for the project. For YPF investors, progress toward FID would provide greater visibility into the company's plans to monetize Vaca Muerta's substantial gas resources and develop a new export-oriented business.

12-MTPA LNG Capacity Could Unlock Vaca Muerta ValueThe Argentina LNG project is designed as an integrated LNG value chain, covering upstream gas production, transportation, processing and export infrastructure. The project includes two floating liquefied natural gas (FLNG) units with combined liquefaction capacity of 12 million tonnes per year (MTPA), which are planned to be located offshore in Río Negro province. This integrated approach could allow YPF to capture value across multiple stages of the gas-to-LNG chain rather than relying solely on domestic gas sales.

For YPF, the planned 12-MTPA capacity represents an opportunity to convert Vaca Muerta's abundant gas resources into a globally traded commodity. Expanding LNG export capacity could also provide access to international markets and potentially diversify YPF's revenue sources. The project therefore has the potential to become an important long-term growth platform if development proceeds as planned.

Eni & XRG Strengthen YPF's LNG Growth StrategyThe partnership with Eni and XRG is another important element of the project. Eni brings complementary capabilities in energy development and LNG, while XRG adds its own resources and expertise to the consortium. The combination of YPF, Eni and XRG could strengthen the project's ability to develop an integrated LNG value chain and connect Argentina's gas resources with international markets.

For YPF, working alongside Eni and XRG also provides an opportunity to combine distinct capabilities rather than developing the entire project independently. Such collaboration could support the development of upstream production, gas transportation, processing and offshore liquefaction infrastructure.

Argentina LNG Project Could Diversify YPF's Earnings BaseArgentina LNG project could provide YPF with a new source of long-term growth by opening an export outlet for Vaca Muerta gas. The project's integrated structure and planned 12-MTPA capacity could increase the commercial value of the company's upstream resources while expanding its exposure to international LNG demand. Successful development would strengthen YPF's business model, elevate its standing in global gas trade and enhance its investor appeal.

Zacks Rank & Key PicksYPF and Eni currently carry a Zacks Rank #3 (Hold).

Some better-ranked stocks in the energy sector are Valero Energy Corporation (VLO - Free Report) and HF Sinclair Corporation (DINO - Free Report) . Valero and HF Sinclair currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks Rank #1 stocks here.

Valero operates 14 global refineries with a daily refinery throughput capacity of 3 million barrels. The refiner’s ethanol operations are spread across 12 U.S. ethanol plants. During the second quarter of 2026, VLO recorded strong gains in its ethanol sector. Margins expanded to $1.15 per gallon from 52 cents. Operating income rose to 75 cents per gallon compared with 13 cents a year earlier.

HF Sinclair is an independent refiner producing gasoline, diesel, jet fuel, renewable diesel, lubricants and specialty products. In second-quarter 2026, DINO’s adjusted EBITDA increased to $1.5 billion from $665 million a year earlier, driven by stronger refining margins, higher volumes and solid execution. Meanwhile, the company’s renewable fuels adjusted EBITDA rose to $123 million against a $2 million loss reported a year ago due to increased renewable identification number prices, improved Producer’s Tax Credit benefits and higher volumes.

Fracking Halliburton And The Big Bet South Of The Border YPF Sociedad Anónima NYSE: YPF reported record second-quarter 2026 profitability and cash generation, driven by higher international prices, expanding shale production, refinery utilization and cost-control measures.

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Chairman and CEO Horacio Marín said adjusted EBITDA reached $2.8 billion, which he described as the company’s best quarterly result. The figure was up 76% from the prior quarter and 2.5 times the year-earlier period, according to Finance Vice President Pedro Kearney. Revenue totaled about $6.6 billion, increasing 33% sequentially and 42% year over year.

3 Targeted Oil Plays as the Iran Crisis Lifts CrudeThe company posted operating income of $1.8 billion and net income of $1.2 billion. Adjusted EBITDA margin reached 43%, its highest level in two decades, while free cash flow was $824 million despite more than $1.3 billion in capital expenditures and payments related to the Equinor asset acquisition and interest expense.

Cash liquidity rose to nearly $2.5 billion at the end of June from about $1.7 billion at the end of March. Net leverage declined to 1.1 times, its lowest level in more than a decade, Kearney said.

Shale production and capital spending accelerate YPF’s shale oil production rose to 213,000 barrels per day in the second quarter, up 4% sequentially and 47% from a year earlier. Shale represented 80% of the company’s total oil output during the period.

The company is increasing drilling activity in Vaca Muerta, where it was operating 16 rigs at the time of the call, compared with 12 at the end of 2025. Marín said YPF expects to have 19 rigs operating by year-end and 21 by February 2027.

Management reaffirmed its target for average shale oil production of about 215,000 barrels per day in 2026 and an exit rate near 250,000 barrels per day. Marín said the planned September startup of an oil treatment plant at La Angostura Sur is the main remaining facility requirement for achieving the year-end production target.

Second-quarter capital spending was weighted toward unconventional development, with 77% of total investment allocated to shale operations. YPF raised its full-year capital expenditure outlook by roughly 5% to a range of $5.8 billion to $6.2 billion, with about 70% expected to be directed to shale.

Total lifting costs, excluding specific well service costs, fell 31% year over year to $8.40 per barrel of oil equivalent. In the shale oil hub, lifting costs were around $4 per barrel of oil equivalent, according to Strategy, New Businesses and Controlling Vice President Maximiliano Westen.

Portfolio sales shift company toward shale YPF continued divesting conventional and non-core assets. The company signed agreements to sell the operating Chachahuén field and its non-operating interests in the El Corcobo and CNQ7A blocks in Mendoza for a combined $405 million, subject to final approvals and closing.

Marín said that after excluding assets under divestment, roughly 95% of YPF’s oil production would come from shale operations. He also said the company signed an agreement, subject to closing, to sell its 70% stake in Metrogas.

During the question-and-answer session, Marín said the company had substantially completed sales of non-core assets and continues a process to sell remaining conventional fields. He said YPF Agro will remain wholly owned after a prior sale process did not succeed, with the business being repositioned under the company’s new-energy operations.

Downstream performance and export infrastructure Refinery processing averaged a record 351,000 barrels per day, up 2% from the first quarter and 16% from a year earlier. The higher throughput enabled YPF to meet local fuel demand without imports, supply local refiners and export nearly 100,000 cubic meters of gasoline and diesel during the quarter.

Domestic gasoline and diesel sales volumes increased 7% sequentially and 10% year over year. YPF said its market share rose to 59% from 57% in the first quarter, while its midstream and downstream adjusted EBITDA margin expanded to nearly $30 per barrel.

Management expects refinery utilization to normalize as scheduled maintenance occurs in the second half, though Marín said average utilization could remain around 100% in the fourth quarter. The company said fuel pricing will continue to reflect international prices as well as local supply-and-demand conditions.

YPF said the Vaca Muerta Sur, or VMOS, oil pipeline project was about 80% complete as of July and remains on track for commercial operations by the end of the fourth quarter, with first oil expected in early 2027. The company also cited a backup plan for a monobuoy component after discussing potential shipping concerns during the call.

LNG and Loma La Lata Oil projects advance In May, YPF submitted its application under Argentina’s Large Investment Incentive Regime, or RIGI, for the wholly owned Loma La Lata Oil project. The project encompasses five blocks and more than 1,150 wells, with estimated investment of $25 billion over 15 years.

At plateau beyond 2032, YPF expects Loma La Lata Oil to produce roughly 240,000 barrels per day, dedicated to export markets through VMOS, while also contributing about 10 million cubic meters per day of gas to the domestic market. The company estimated annual oil and gas revenue of approximately $7 billion at an assumed Brent price of $70 per barrel.

YPF also advanced its Argentina LNG initiative. Eni and XRG agreed to acquire 32% interests each in an upstream venture holding five wet-gas blocks dedicated to the LNG project, while YPF will retain a 36% interest and serve as operator. Marín said the company has completed key documentation, launched a virtual data room with export credit agencies and expects to be ready for a final investment decision in the fourth quarter.

The company also highlighted RIGI approval for the San Matías Gas Pipeline, a planned 470-kilometer pipeline connecting Vaca Muerta with the San Matías Gulf. The project is expected to transport about 27 million cubic meters per day by mid-2028 and require approximately $1.3 billion of investment.

For 2026, YPF raised its adjusted EBITDA outlook to about $8 billion from prior guidance of around $6 billion, based on an assumed Brent price of $75 per barrel in the second half. The company expects positive free cash flow of about $2 billion for the year, including M&A proceeds collected and expected from transactions in progress, and anticipates net leverage near 1 times.

About YPF Sociedad Anónima (NYSE:YPF)YPF Sociedad Anónima NYSE: YPF is an integrated oil and gas company headquartered in Buenos Aires, Argentina. The company’s primary businesses encompass upstream exploration and production of crude oil and natural gas, midstream transportation and storage, and downstream refining and distribution. YPF operates several major refineries and a nationwide network of service stations, supplying fuels, lubricants, and petrochemical products to both retail and industrial customers.

Founded in 1922 as Yacimientos Petrolíferos Fiscales, YPF was the world’s first state‐owned oil company.

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