YPF Sociedad Anónima (YPFD) Earnings Call Transcript & Summary

Hello, everyone. Thank you for joining us, and welcome to the YPF Second Quarter 2026 Earnings Conference Call. [Operator Instructions]. I will now hand the conference over to Margarita Chun, IR Manager. Margarita, please go ahead.

Good morning, ladies and gentlemen. This is Margarita Chun YPF's IR Manager. Thank you for joining us today in our second quarter 2026 earnings call. Before we begin, please consider our cautionary statement on Slide 2. Our remarks today and answers to your questions may include forward-looking statements. which are subject to risks and uncertainties that could cause actual results to be materially different from the expectations contemplated by these remarks. Our financial figures are stated in accordance with IFRS, but during the presentation, we might discuss some non-IFRS measures such as adjusted EBITDA. Today's presentation will be conducted by our Chairman and CEO, Mr. Horacio Marin; our Finance Vice President, Mr. Pedro Kearney; and our strategy, new businesses and controlling Vice President, Mr. Maximiliano Westen. During the presentation, we will go through the main aspects and events that shape Q2 results and finally, we will open the floor for a Q&A session together with our management team. I will now turn the call over to Horacio. Please go ahead.

Thank you, Margarita, and good morning. Q2 was a landmark quarter in YPF's history with 10 major milestone achieved across all our operations. These results reflect the magnitude of the transformation that YPF has achieved since the launch of the 44 plan, supported by strong market dynamics. The main drivers of this transformation are sharing growth, the replacement of conventional assets, cost control, capital discipline and operational efficiency. As a result, we are reshaping the company into a very integrated shale player. We are building a more profitable, more resilient and more expedient integrated sale company. Adjusted EBITDA reached $2.8 billion position in the quarter at the best in the company's history increase versus the second high record that goes in Q3 2014 and the third 1 was last quarter. To put this in perspective, in the first half of 2026, we generated nearly $4.4 billion of Asia's EBITDA already above the full year EBITDA reported in 2023. This exceptional performance drove adjusted EBITDA margin to 43%, its highest level in the last 2 decades, supported by higher prices, seasonal demand solid operational execution and operational efficiencies. As a result, the outstanding performance was reflected in the income statement. Operating results reached $1.8 billion, a new record high in the company's history. While the result was $1.2 billion representing the second best quarterly performance ever achieved by YPF. The fourth net results was Q3 last year. In terms of cash generation, free cash flow reached $824 million top 3 in our history, while liquidity closed at a higher level ever achieved of $2.5 billion. As a result, net leverage decreased to 1.1x, its lowest level in more than decade and resulting the continued improvement in YPF's financial position. From an operational standpoint, the quarter reinforced the continued transformation of IPA production mix shale oil production reached 213,000 barrels per day with halo now represent 80% of total oil production. This confirms the increased relevance of unconventional assets with the company portfolio and the continued progress in scaling up Vaca Muerta as key growth driver. In parallel, we continue increasing the number of rigs operated by YPF in Vaca Muerta oil window. As of today, we are operating is significantly higher than the 12 rigs by December last year and expected to reach 21% rate by early 2027. On the other hand, let me share with you an important step to accelerate Vaca Muerta. In May, we submitted the resi application of Loma La Lata oil project 100% owned by YPF, with a production plateau of roughly 240,000 barrels per day. It represents the largest oil export program in Argentina history and the largest projects submitted under so far. The project requires cumulative investment of $25 billion over 15 years and is expected to generate more than $100 billion in oil export revenue over its lifetime. Loma La Lata positions YPF and Argentina to build a world-class energy export platform, given the scale of the project. The approval process may be structured across separate SPVs. We will provide more details later when we have news. Finally, our downstream operation continued to deliver exceptional performance, refinery processing reached 351,000 barrels per day reflecting the highest level of refinery utilization ever achieved. It enabled us to generate surplus production and gasoline and metal distillates reaching 43,000 cubic meter per day and setting a new record high. Overall, these results reflect a quarter of exceptional execution with record profitability a strong cash generation, a reinforced balance sheet and continue operational improvement across the company's main business segments. Before moving to the next slide, let me take a moment to highlight several recent developments that are highly important to the equation of our 44 planning strategy. First, regarding the second pillar of our 44 plan, active portfolio management, last week, we signed an agreement for the sale of 2 clutter of the under projects in the Province of Mendoza. The operating [indiscernible] and the nonoperating [indiscernible] and CNQ blocks. Together, this transaction were closed at same price of $405 million and remains subject to the final approval before closing. Importantly, once this conventional field are excluded from our production profile, approximately 95% of our oil production would come from shale operations. It marks another concrete step toward our objective of becoming a pure shale player. More recently, we have shut obtained the approval of our Board and signed the sale of the 70% equity stake in Metrogas subject to closing. Moving to midstream oil, they must remain on track to reach COD by the end of Q4 this year with the progress of around 80% as of July, affecting first oil by early 2027. Turning to Argentina LNG, we have signed an agreement with the promise of Newen to establish the project's regulatory and fiscal framework. In addition, we successfully brought and I and exorciinto the upstream development with each partner acquiring a 32% interest in the 5 blocks that will be fully dedicated to Argentina while YPF retained the remaining 36% stake. This is a highly relevant milestone on the path towards the final investment decision as it improves the project after Foundation and reinforces the development of integrated LNG value chain. We will provide further details later in the presentation. In terms of our local fuel pricing strategy in mid-May, we tended the buffer mechanism for another 45 days alone a 1% assessment, the buffer mechanism successfully preserve local fuel market dynamics during very volatile international context while allowing our mid-teen and downturn to reach a very healthy EBITDA margin of around $30 per barrel. Finally, regarding YPF's stock split last week, we successfully completed a 10/1 speed in the local market, BIM. With the goal of improving accessibility and affordability for local retail investors in comparison with our peers. In parallel, we have shut the ratio of RDR2 share from 1 to 1 to 1 to 10 with no economic impact on ADR holders. Importantly, this split doesn't affect your holders economic interesting, ownership percentage or voting rights. In addition, user of YPF application with cash account will be able to buy and sell YPF shares directly through the app starting this Friday of 14. This represents another meaningful step in expanding access to YPF hit equity story to a wider investor base. Now let me share more details on our Loma La Lata oil project, a key driver to accelerate the development of the South Hain bacoMerta's oil window. In late May, YPF applied to [ Shinder, ] the large investment incentive received for the SPV Loma La Lata oil, this is a large resi project and Argentina's major uptrain oil export initiative. The SPV is fully owned by YPF developing 5 blocks with well inventory of over 1,150 walls and unconventional concession until 2059. These blocks are La Angostura Sur 1 and 2, already delivering exceptional productivity with solid economics. Currently, with rigs in operation besides the expansion to Barilernde, La Angostura Sur Southwest and La Angostura Sur North. In terms of investment, we estimate total CapEx of around $25 billion over the next 15 years. It will be mainly allocated to drilling and completion activities, liberation shares infrastructure to maximize efficiency. A plateau beyond 2032, production is expected to reach around 240,000 barrels per day, 100% dedicated to export markets through VMOS while also contributing around 10 million cubic meter per day of gas to the local market. This will translate into estimated annual revenue of approximately considering both oil and gas, with an average Brent price of $70 per barrel. It's worth mentioning that given its scale, long-term horizon and electron export focus supported by Rey. This project is a transformational initiative of Argentina long-term oil development and important value creation for our shareholders. In this sense, based on the scale of the project, the approval process may be structured across different SPVs. Now I turn the call to Pedro to analyze in detail our financial results.

Thank you, Horacio, and good morning, everyone. As Horacio mentioned, this was a record-breaking quarter for YPF. We delivered record earnings, margins and cash generations reduced leverage to its lower level in more than a decade and achieved strong operational performance across all our businesses. Revenues reached approximately $6.6 billion in the second quarter, up 33% sequentially and 42% year-over-year. The increase was supported by stronger international prices as well as higher refinery processing levels generated surplus of fuel exports and seasonal demand for diesel and natural gas. Adjusted EBITDA totaled $2.8 billion, increasing 76% sequentially and 2.5x year-over-year. This performance reflects the shift to shale, high refinery utilization, disciplined cost management efficiency gains across the company and a better pricing scenario. On the production side, our shale oil output continued expanding, reaching 213,000 barrels per day increasing 4% sequentially and 47% internanually. As Horacio mentioned, excluding the conventional assets under divestment process, around 95% of our oil production would have come from shale formation. In terms of investment, during the second quarter, we deployed over $1.3 billion allocating 77% to our unconventional operations. CapEx increased by 37% sequentially and 16% internally, primarily due to the signing bonus for the unconventional concessions of the 5 docks dedicated for Argentina LNG project. Also, it was driven by the higher investment in facilities at La Angostura Sur and Norte fields. For the rest of the year, we expect further acceleration in line with the production ramp-up. On the financial front, despite acceleration in capital expenditures, we generated a very strong free cash flow of $824 million, which I will discuss in great a little later. As a result, our net leverage ratio declined to 1.1x and marking the third consecutive quarterly reduction since the Q3 of last year and reaching its lower level in 11 years. Now let me walk through the evolution of our free cash flow during the second quarter. The positive free flow represents the third highest free cash flow in YPF history and was primarily driven by the all-time high EBITDA of $2.8 billion. This outstanding result comfortably funded our accelerated CapEx program of over $1.3 billion aligned with the expansion of our shale operations and key infrastructure projects. It also covered the $188 million payment related to the acquisition of Equinor assets in Vaca Muerta as well as the $150 million interest payments. In addition, the negative working capital variation was mainly explained by higher seasonal natural gas sales. It is important to note that the higher plant gas price is fully reflected in the EBITDA during the quarter. However, given the related collection terms, most of these incremental sales are collected during the following quarter. This temporary working capital effect was partially offset by $85 million in dividends collected from affiliates. It is worth highlighting that excluding M&A activity, the company will have delivered an even stronger performance, generating free cash flow of approximately $1 billion. As a result, -- our cash liquidity position increased to nearly $2.5 billion at the end of June compared to approximately $1.7 billion at the end of March. This further strengthen the company's liquidity position and marked the highest cash balance in our history. This improvement provides us with significant flexibility to execute our ambitious investment plan for the second half of the year while comfortably covering our debt maturities. Turning to our financial position. We have continued improving our net leverage ratio since the third quarter of last year. This quarter, it declined to 1.1x, nearly half the peak level reported in the third quarter of last year, primarily driven by a better international prices environment, reaching the lowest net leverage level in more than a decade. In addition, the strong liquidity position achieved during the quarter allow us to pursue proactively liability management activities focused on reducing our overall cost of debt by prepaying high-cost facilities with shorter tenors. In this context, in April, we issued a new local bond for $122 million with a 4-year tenure and at 5.5% yield, taking advantage of a market opportunity to secure low-cost long-tenure financing. The proceeds were used to prepay a higher cost loan maturing in 2028, generating interest saving while further optimizing our debt maturity profile. Additionally, we amended our $450 million syndicated export refunding facility executed in the fourth quarter of last year, extending the drawdown period by 2 months and pushing the final maturity by 1 year. As a result, most principal maturities are now concentrated in 2029. During the second quarter, we also prepaid approximately $220 million of local bonds and trade facilities maturing primarily in 2027 and 2028. Separately, in June, we signed a mandate letter with IDB Invest to establish the framework conditions to structuring the potential AB loan facility of up to $500 million. Despite not representing our financial commitment, it provides additional flexibility and optionality to address potential funding needs for next year. More recently, in August, we successfully reopened a local bond originally issued in April, raising an additional $170 million with a 3.5-year tenure and a 5.5% yield. The proceeds will be used to repurchase our $140 million bond maturing in February 2027, further improving our debt maturity profile while reinforcing our commitment to proactive liability management and funding optimization. Looking at our debt profile, remaining maturities for the second half of this year amount to approximately $700 million. Nearly 40% corresponds to local bonds, 28% corresponds to amortizing international bonds while the remainder is composed of other local and international financial loans. Finally, following the recent sovereign rating upgrade, in May, Fitch upgraded our rating to be minus with a stable outlook. S&P upgraded YPF's rating to B in June and Moody's also upgraded the company from B2 to B1 in July. This last in rating is the highest YPF has achieved in recent years. broadly in line with the level the company held between 2017 and '18. Overall, these upgrades together with our broad access to capital markets and financing opportunities, reinforce both the momentum and sustainability of our credit story, reflecting the strength of YPF's financial position and the market's confidence in our strategy and credit profile. I will now turn it to Max to walk through the operational performance.

Thank you, Pedro, and good morning to everyone. Let me dive into the evolution of our upstream performance in the quarter. Our upstream strategy continues to deliver outstanding results with shale oil driving growth improving efficiencies and consolidating YPF position as a best-in-class Vaca Muerta player. Importantly, shale oil output continues to more than offset the conventional divestments supporting a more resilient and higher-margin production base. In that sense, shale oil production continues to grow, but hitting a new record high, reaching 213,000 barrels per day in the second quarter, representing a sequential increase of 4% and a 47% year-over-year. This performance was primarily driven by the strong contribution from La Angostura Sur, followed by higher production recorded in the north half of Vaca Muerta. In addition, since May, we have incorporated the production associated with our 4.9% stake in Mandura Sur Block and our 15% stake in [indiscernible] block both recently acquired from Equinor. Looking ahead, we expect shale oil production growth to accelerate during the second half of the year as key infrastructure projects and other facilities like the oil treatment plant in La Angostura Sur continued to move closer to start-up, including VMOS, which reached around 77% completion as of June 2026. Shale oil expansion fully compensated the continuous divestment from conventional assets, which dropped 49% year-over-year. Excluding the conventional assets that are under the divestment process, conventional production would have been roughly 18,000 barrels per day in the second quarter. Total lifting cost, excluding specific well service costs continued the downward trend decreasing 31% year-over-year at $8.4 per BOE in the second quarter, reflecting the structural improvement in our cost base. Excluding the divestment assets mentioned before, lifting cost would have been below $7 per BOE. Focusing on our Shell oil hub, we continue to operate at best-in-class levels at around $4 per BOE, essentially flat on a sequential basis. Turning to natural gas. The production averaged 37.3 million cubic meters per day down 6% year-over-year, primarily reflecting the exit from commercial fields, partially offset by the expansion of shale gas production, mainly led by La Calera Block. Additionally, let me point out that during the second quarter, a well located in [ Rincon de Manguruzo ] block reached production of 1.3 million cubic meters per day becoming the highest producing well within the basin's dry gas window. Our capital allocation is currently focused on the oil window of art reflecting the greater flexibility of oil demand supported by higher evacuation capacity, while natural gas still remains largely constrained by domestic consumption. Looking ahead, the development of integrated LNG projects is expected to unlock significant incremental demand leveraging YPF substantial acreage position world-class resource base in Vaca Muerta gas window. Overall, these results highlight the consistency of our Upstream strategy where shale development not only drives production growth but also enhances efficiency, lower cost and support structurally stronger and more profitable results. Moving to our midstream and downstream segment, our processing levels set a new record in the second quarter averaging 351,000 barrels per day, reconfirming their reliability and flexibility of our refining system. It grew by 2% sequentially and 16% inter-annually where during the second quarter last year, La Plata refinery was under maintenance. This exceptional operational performance together with a new record production of gasoline and mill distillates enable us not only to fully meet domestic demand without imports, but also to supply local refiners and expand exports. Looking ahead, we expect processing to gradually normalize towards ordinary levels as scheduled maintenance activities will take place during the second half of the year, thereby ensuring sustained operational reliability and long-term efficiency. Regarding domestic sales of gasoline and diesel, dispatch volumes increased by 7% quarter-over-quarter, driven by an expansion in diesel seasonal demand. On a year-over-year basis, gasoline and diesel volumes grew by 10%, supported by stronger demand, particularly in diesel across all commercial segments. As a result, we increased our market share to 59% from 57% in the first quarter and up to 61% and when we consider gasoline and diesel produced by YPF and dispatch through third-party gas stations. It is worth mentioning that beyond local demand in the second quarter YPF exported nearly 100,000 cubic meters of gasoline and diesel. In terms of pricing strategy, as Horacio explained before, in April, we decided to temporarily postpone further price adjustments alongside a 1% increase. This temporary measure, which concluded in late June acted as an effective buffer allowing us to preserve fuel demand during a period of elevated volatility while progressively reducing the gap with import parity as market conditions evolve maintaining a competitive position in the local market. Lastly, let me highlight that our midstream and downstream adjusted EBITDA margin expanded to nearly $30 per barrel in the second quarter, benefiting from strong processing volumes and the successful execution of our commercial and pricing strategy. Now let me briefly walk you through the progress of our upstream efficiencies during the quarter. We continue to deliver consistent improvements in productivity across our shale operations, driven by execution and ongoing efficiency gains. Starting with drilling activity, we continued setting new efficiency gains in our core shale hubs. During the first half of 2026, we reached 354 meters per day above 2025 average and recording roughly 30% increase compared to 274 meters per day recorded in 2023. In our unconventional fracking activities, we also delivered strong efficiency gains across our key operating metrics. During the first half of the year, we recorded 11.4 stages per day, 18% higher against 2025 levels and representing a remarkable expansion of 50% compared to 2023, while pumping hours per day rose to 19.2 hours, 14% and 32% above the average of 2025 and 2023, respectively. It is worth highlighting that in June, we achieved record levels of fracking, completing nearly 1,400 stages and representing around half of the country's activity. Moreover, during July, we achieved another major hydraulic fracturing milestone by pumping continuously for 203 hours in completing 86 stages at Banduria Sur Block, it represents over 8 days and 11 hours of uninterrupted operations. This achievement was monitored through our real-time intelligence center and reflected a fully remote and autonomous fracturing operation completed with 0 incidents. All these record performances in Vaca Muerta brings us even closer to Permian level operating standards. In the Downstream business, in the second quarter, we continued to strengthen YPS position as a key player in Argentina's energy transformation. As part of our innovation program, we visited Tesla's Tiger factory in Texas, one of the most advanced industrial facilities in the world and signed a letter of intent to explore collaboration opportunities and fast charging networks and energy storage, combining Tesla's technology leadership with YPF, nationwide infrastructure platform. This initiative reflects our commitment to modernizing our energy system, advancing innovation supporting the adoption of next-generation energy and mobility solutions that will enhance the country's competitiveness and long-term sustainability. Moreover, as I mentioned before, our outstanding processing levels resulted in a surplus of gasoline and mid distillate production, enabling YPF to avoid imports, supply local peers and expand our exports. Additionally, during the quarter, we completed the works related to the new fuel specification project at our [ Lujan de Cujo ] refinery marked by the successful start-up of the new diesel hydrotreating unit in July. In parallel, we made progress on engineering works new hydrotreating units at the La Plata and Plaza Wincor refineries to ensure full compliance with these specifications. Importantly, all these improvements are the result of continuous optimization efforts across all of our operations, supported by better well planning, disciplined execution, and a more efficient integration with our service providers. I am now turning to Horacio to continue with updates regarding LNG projects.

Thank you, Max. Let me share the progress we achieved on the LNG projects. Regarding the tolling phase, I would like to highlight the recent approval of Samter's pipeline SPV under the framework. The project contemplates a contraction of 470-kilometer gas pipeline connected [indiscernible] in Vaca Muerta to the summate is expected to have transportation capacity of approximately 27 million cubic meter per day by mid-2028. The project will require a total investment of around $1.3 billion and is expected to be funded by a procure financing scheme with debt and 30% equity. Importantly, the project finance is progressing very well and is already at the advanced stage with financial closing expected during Q3 this year. Turning to our Argentina LNG project, the most relevant miketone of the quarter was the agreement signed in Sun between YPF and the government of Newen. This set the long-term regulatory Avicel framework applicable to Argentina -- all of these steps provide a more predictable and competitive foundation to continue advancing the project. We also made significant progress in the octane segment of the project through the agreement to incorporate E&I XR into the ACO Argentine LNG 1, the upstream SPV that we hold 100% or the 5 wet gas block dedicated to the project. Under this structure, E&I, with each call 42% interest while YPF remained the operator with a 36% stake. This reinforces alignment across the entire value chain, enhanced execution capabilities and represents another important step towards reaching the final investment decision. On the execution front, we have recently selected the front runners of the EPC of the gas NGL pipeline as well as the integrated as payment plan. In addition, on the financial side, we have completed all the documentation required to open the bid dataroom with the ECAs which was successfully launched in July. This marks another important milestone in the project finance process and further remote continued progress of Argentina LNG. Overall, Argentina LNG continued to gain momentum. This project will not only accelerate the development or but also have the potential to reshape Argentina export profile over the coming decade. Finally, I would like to share our revision to our 2020 guidance. This reflects a strong international price environment and its direct impact on profitability, cash generation and balance sheet strength. We are assuming a burn price of $75 per barrel for the second half of the year. This assumption remains subject to the high volatility in international markets over recent weeks. Under this scenario, the average Brent price for the year 2020 will be around $82 per barrel, 30% above our previous assumption of $63 per barrel. As a result, we now expect a share EBITDA in the year of $8 million, representing a significant increase from our previous guidance for around $6 billion. This improvement is supported by a higher rent environment, operational efficiency and a strong refined product crack spreads. And let me highlight that this new guidance compares very favorably with YPF 2023 EBITDA. In fact, under exactly the same comparable brand condition, in just 3 years, YPF is doubling EBITDA from $4 billion to $8 billion. This clearly reflects the extent and discipline of the 44 plan and our ability to create tangible and sustainable value for our shareholders. On the operating side, we remain fully on track with our shale oil production targets. We continue to expect average shale oil production of around 215,000 barrels per day during 2026 and to reach an exit rate of approximately 250,000 barrels per day by the year-end. With respect to investment we expect to accelerate deployment during the second half of the year. This is mainly driven by progress in facility contraction maintenance activity is scheduled for the second half and the faster development of the summer half of Vaca Muerta through LomaelaTaoi. As a result, we're increasing our full year CapEx guidance by approximately 5%. The new range is $5.8 billion to $6.2 billion, remaining around 70% allocating to shale operations. Despite the minor increase in our CapEx plan, we expect to end the year with a positive free cash flow position of around $2 billion. This figure includes M&A proceeds already collected and assuming the proceeds expected from transaction currently under execution. This strong cash flow outlook is also reflected in our balance sheet expectation. We now anticipate net leverage to decline significantly to nearly 1x. This compared with our previous guidance range from 1.6 to 1.7x. In summary, this revised guidance reinforced the trend and resilience of IPS business model. A more favorable pricing environment is related into higher profitable strong cash generation and lower debt. At the same time, our strategic priorities remain unchanged. Most importantly, this provides further means that the 44 plan is delivering concrete results, position YPF for a stronger, more profitable and more financially robust future. With this, we conclude our presentation and open the floor for questions.

[Operator Instructions]. Your first question comes from the line of Michael Furrow with Pickering Energy Partners.

I'd just like to start with CapEx that came in neatly below expectations this quarter, particularly on the upstream side of just under $1.1 billion. So just given the strong start to the year and the acceleration of spending and activity in the second half of this year, could you help us get a better understanding of the shape of CapEx or activity levels for the remainder of 2026.

Okay. Thank you very much for the question. I -- from -- you saw the guidance. We are going to accelerate because of our results. And we secured the rigs and we secure also the sets, the tractor set. At the end of the year, we're going to have 19 rigs and now we have 16. The level that we think that we are going to finish at the ending of the year, it will be $6 billion. The production, the end of the production for in December $250 billion. For sure, we are going to accelerate next year. We secured the rigs also for next year in -- in February, we are going to have 21 rigs.

Right. I appreciate that, Horacio. Maybe just following up on that point, the shale productivity continues to look strong across the asset base. And to us, at least, it seems like the company is more than on track to hit its 26 guidance and 250,000 barrels per day shale exit rate. So Horacio, are you seeing the same thing? And what would need to happen in the back half of the year to put that target out of reach?

For -- you are talking for next year?

For the deal shale exit rate?

Okay, okay. We have the rigs and we are finished the drilling. So we need to fracture all the wells. And the only thing that we have to have from the facility point of view is a PTC in La Angostura Sur. We think that in September, it will be the COD. And with that, we can reach the number with our programs.

Your next question comes from the line of George Gasztowtt with Latin Securities.

Congratulations on the quarter. I have 2 related questions this morning on Macumesta's evacuation capacity. -- for the first one. We've seen a few reports of delays to the back of MaesoMonoboy delivery out of the Middle East. I was wondering if you had any comments on that. And as a follow-up, AlilValley is looking to temporarily increase capacity in duplicate using polymers and upgrade to pumping stations. And as its largest shareholder, I was wondering what your expectations for that initiative were and whether the additional capacity could allow YPF to sustain its production ramp is [indiscernible] were delayed.

Okay. Regarding demos for the mono boy, we are closing our figures we have in the vessel now is passing the almost Strait. So maybe next week, we will have very good news, okay? Regarding we say, plan B from in VMOS. We bought another 1 that is going for sure not to feel in Dubai because of the trade, okay? And so we think that we have everything on on track, and it will be success the pass of the vessel from the trade. That is the what we have today. The ball, we are going to use all our capacity. Remember that we have -- we need capacity for the 3 refineries and also for export. Our plan to explore VMOS because of the production that we are going to have next year, that we're going to say in investor I think it's in April next year in New York. We are going to use the maturity of the capacity that we have.

Your next question comes from the line of Andres Cardona with Citi. Andreas.

Congratulations to the very strong record quarter and also the execution of the capital allocation from. Two quick questions on my side. During the projects being approved under the regime, the industry sees a need to accelerate the development of the cameras basis that we had originally planned for 2020 and beyond. And on the capital allocation for all, you have completed many of the processes previously announced, which ones are still pending -- and are you also reviewing the portfolio to assess potential additional divestments?

Okay. To answer the first one. Well, I know where we are going -- what is our north for YPF. And also, as I said before, we are going to present to you next April. Our numbers is only industry need to improve the vemos 20 could be if they go as quick as I think in 2028 is not from '29 beyond, okay? But we have the plans to do that, okay, we have. From the capital allocation with the for the portfolio, with Metrogas, we have finished all the selling that was no core. From the core ones I would say, no core and from an this, what is the conventional after the signature last week from Mendoza field, YPF is going to be a company with 95% of production from Vaca Muerta. That means that we can say that we are almost just once I say unconventional integrated company. The other thing that is necessary to to sell, we are in process to sell those fields also. So maybe at the end of the year, it could be $198 million, $295 or $99 million, but I think we finished the -- that very difficult process that when we start that everybody could doubt at that moment because it was something difficult to do in Argentina, and I think we were very successful. So I think I answered your question. I don't know if it's okay or you need more explanation of I don't know if you answer then.

Your next question comes from the line of Milan Carvallo with JPMorgan.