File photo of YPF’s unconventional oil activities in Argentina’s Vaca Muerta shale play. (Source: Shutterstock.com)
Argentina’s YPF SA boosted its production in second-quarter 2023, driven mainly by robust shale operations, but the company reported lower net income and its debt keeps piling up.
YPF’s total hydrocarbon production was 513,100 boe/d in the second quarter 2023, up 0.5% sequentially and up 1.9% compared to 503,700 boe/d in the second quarter 2022, the company said in its Aug. 11 earnings report.
Oil production in the second quarter rose 1% sequentially compared to first-quarter 2023 and was up 6.9% compared to second-quarter 2022, YPF said. Natural gas and NGLs production was essentially flat sequentially.
Growth in oil production was driven by higher shale production, while conventional production remained sequentially stable, driven by YPF’s strategy that continues to advance tertiary recovery techniques.
“In that sense, tertiary production recorded an expansion of 17% compared to the previous quarter and 32% against the same quarter of 2022, highlighting [the] Manantiales Behr Block, where we are currently operating nine Polymer Injection Units and its tertiary production represents around 30% of its total production, as well as Chachahuen, El Trebol and Los Perales blocks, where we continue obtaining promising results,” YPF said.
YPF’s focus on shale activity continues to deliver solid growth in the shale production, company officials said during its second quarter earnings call with analysts.
Shale oil volumes were up 28.1% and natural gas increased 10.2% in the quarter compared to the same quarter in 2022. YPF’s total shale production represented 44.9% of the company’s total consolidated production in the second quarter compared to 38.7% in second-quarter 2022.
YPF reported notable shale-related improvements in the second quarter compared to second-quarter 2022, a rise in the number of horizontal wells drilled/completed, which reached 46 drilled, 41 completed—compared to 38 drilled and 29 completed.
YPF also saw a rise in drilling speeds to 260 meters/day compared to 248 meters/day. The company’s frac speed averaged 194 stages/month compared to 204 stages/month, the company said.
RELATED: Argentina Plans Ramp Up of Production, Export Oil to Chile
Total debt still rising
Buenos Aires-based YPF also reported a net income of $380 million in the second quarter 2023, down 53.1% compared to second-quarter 2022 owing mainly to lower oil realizations and revenues and higher opex, the company said in the press release.
The state energy giant said oil prices averaged $63.40/bbl in the second quarter, down 2.5% during the same period last year. Gas prices averaged $3.90/MMbtu, relatively flat compared to the same quarter a year ago.
YPF’s total debt reached $7.8 billion at the end of June 2023, up 10% from $7.1 billion at the end of June 2022. The company has approximately $1.5 billion in cash and short-term investments, resulting in a net debt of $6.3 billion. YPF’s net leverage ratio is approximately 1.4x.
YPF will face debt maturities of $616 million in the second half of 2023, and then $1.2 billion in 2024 and $1.7 billion in 2025.
Recommended Reading
Appeals Court Rules in Favor of FERC-Permitted Indiana NatGas Line
2025-01-08 - “As night follows day, an environmental challenge follows the approval of a natural gas pipeline,” a Court of Appeals, D.C. Circuit panel said in ruling in favor of a Boardwalk Pipeline expansion project.
Venture Global’s Calcasieu Pass LNG Project Gets Boost from FERC
2025-02-07 - The Federal Energy Regulatory Commission released a report responding to an appellate court’s questions over Venture Global LNG’s Calcasieu Pass 2 project.
DOE Secretary Wright Grants Delfin LNG Extension for Exports
2025-03-10 - Delfin LNG's floating LNG export project in the Gulf of Mexico is authorized to export up to 1.8 Bcf/d, U.S. Energy Secretary Chris Wright said at CERAWeek.
South Texas LNG Projects Get FERC Permits Back
2025-03-19 - The court that vacated Glenfarne’s Texas LNG and NextDecade’s Rio Grande LNG permits in the summer has reinstated the documents while the government amends the originals.
Manufacturers Urge FERC to Study Gas Pipeline Capacity Needs
2025-02-04 - Heavy industry is the first to be impacted when there is inadequate supply of natural gas, the Industrial Energy Consumers of America (IECA) argued in a letter to federal regulators.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.