6-K 1 d771719d6k.htm FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16

of the Securities Exchange Act of 1934

For the month of June, 2019

Commission File Number: 001-12102

YPF Sociedad Anónima

(Exact name of registrant as specified in its charter)

Macacha Güemes 515

C1106BKK Buenos Aires, Argentina

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes ☐ No ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes ☐ No ☒

YPF Sociedad Anónima

TABLE OF CONTENTS

ITEM

1 Vaca Muerta Field Trip Presentation

JUNE 2019 VACA MUERTA FIELD TRIP

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 statements may include statements regarding the intent, belief, plans, current expectations or objectives of YPF and its management, including statements with respect to YPF’s future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes and reserves, as well as YPF’s plans, expectations or objectives with respect to future capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies. These forward-looking statements may also include assumptions regarding future economic and other conditions, such as future crude oil and other prices, refining and marketing margins and exchange rates. These statements are not guarantees of future performance, prices, margins, exchange rates or other events and are subject to material risks, uncertainties, changes and other factors which may be beyond YPF’s control or may be difficult to predict. YPF’s actual future financial condition, financial, operating, reserve replacement and other ratios, results of operations, business strategy, geographic concentration, business concentration, production and marketed volumes, reserves, capital expenditures, investments, expansion and other projects, exploration activities, ownership interests, divestments, cost savings and dividend payout policies, as well as actual future economic and other conditions, such as future crude oil and other prices, refining margins and exchange rates, could differ materially from those expressed or implied in any such forward-looking statements. Important factors that could cause such differences include, but are not limited to, oil, gas and other price fluctuations, supply and demand levels, currency fluctuations, exploration, drilling and production results, changes in reserves estimates, success in partnering with third parties, loss of market share, industry competition, environmental risks, physical risks, the risks of doing business in developing countries, legislative, tax, legal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, wars and acts of terrorism, natural disasters, project delays or advancements and lack of approvals, as well as those factors described in the filings made by YPF and its affiliates with the Securities and Exchange Commission, in particular, those described in “Item 3. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in YPF’s Annual Report on Form 20- F for the fiscal year ended December 31, 2018 filed with the US Securities and Exchange Commission. In light of the foregoing, the forward-looking statements included in this document may not occur. Except as required by law, YPF does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized. These materials do not constitute an offer to sell or the solicitation of any offer to buy any securities of YPF S.A. in any jurisdiction. Securities may not be offered or sold in the United States absent registration with the U.S. Securities and Exchange Commission or an exemption from such registration. Cautionary Note to U.S. Investors — The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to separately disclose proved, probable and possible reserves that a company has determined in accordance with the SEC rules. We may use certain terms in this presentation, such as resources, that the SEC’s guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No. 1-12102 available on the SEC website www.sec.gov. Our estimates of EURs, included in our Development Costs, are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of being actually realized, particularly in areas or zones where there has been limited history. Actual locations drilled and quantities that may be ultimately recovered from our concessions will differ substantially. Ultimate recoveries will be dependent upon numerous factors including actual encountered geological conditions and the impact of future oil and gas pricing. 2 IMPORTANT NOTICE

AGENDA INTRODUCTION YPF SHALE ACTIVITY SHALE OIL PROJECTS 01 02 03 INFRASTRUCTURE MILESTONES & FUTURE CHALLENGES 04 05 3

VACA MUERTA STRATEGY ACREAGE (MM ACRES) Achieve all these objectives with the highest standards in safety and sustainability 3.4 2.7 1.7 1.2 1.3 0.7 Oil Gas VM Acreage YPF Gross YPF Net Accelerate development activity in Loma Campana Replicate the success in La Amarga Chica and Bandurria Sur Expand the boundaries of Vaca Muerta oil through pilots Prepare next wave of developments Evaluate different alternatives to unlock shale gas potential 4

VACA MUERTA LEARNING CURVE 5 OIL PRODUCTION / DRILLING RIGS OPTIMIZATION MIGRATION TO HORIZONTAL WELLS 3 4 4 5 5 6 6 7 7 8 9 1010 12 1313 14 15 17 18 191919191919 2222 2525 26 25 242424 23 2424 25 26 27 24 25 2424 23 22 21 16 15 121212 10 9 9 9 8 8 7 7 7 8 7 7 7 8 8 6 8 8 9 10 111111111111 101010 9 9 11 12 15 0 5 10 15 20 25 30 0 10 20 30 40 50 60 70 Rigs - RHS Oil Production (Kbbl/d) 59 11

~2bn 2019 CAPEX Operated Gross YPF 720 June 2019 OPERATED ACTIVE WELLS VM wells TOTAL PRODUCTION Operated Gross YPF (Avg. June 2019) 61.4 Kbbl/d Oil 9.6 Mm 3 /d Gas VACA MUERTA ACTIVITY STRATEGIC PARTNERS USD 6 17 OPERATED DRILLING RIGS (1) June 2019 (1) Include 1 Spudder Rig ADLA CA SDH CLMi BDT EOR LACh RDM LTa Cha LC LRi II LLL Sur AND CBN FMo PBN LaMa San Roque LCa BAñ PY I APE APO AdC LdM Lindero Atravesado LRi I N ChS Este PH LLL-SB BS AVi MBE PY II LLL O Exploration Operated Pilots Development REFERENCES Exploration & Pilots Non Op. Embalse Embalse

SHALE OIL AS OUR MAIN GROWTH DRIVER 0 100 150 200 250 300 350 2019 2020 2021 2022 2023 0 500 1000 1500 2000 2500 3000 3500 2019 2020 2021 2022 2023 50 Operated Non-operated SHALE OIL PRODUCTION (Kbbl/d)* SHALE OIL INVESTMENT (MUSD)* Net YPF Net YPF * Strategic Plan 2018 7

AGENDA INTRODUCTION YPF SHALE ACTIVITY SHALE OIL PROJECTS 01 02 03 INFRASTRUCTURE MILESTONES & FUTURE CHALLENGES 04 05 8

VACA MUERTA VS. OTHER UNCONVENTIONAL RESOURCE PLAYS 9 Vaca Muerta Barnett Haynesville Marcellus Eagle Ford Wolfcamp Desired 4 - 5 60 - 90 0.5 - 4 60 - 90 2 - 12 10 - 60 3 - 5 30 - 100 3 200 - 300 TOC (%) Thickness (m) > 2 > 30 3,000 – 4,000 7,000 – 12,000 2,000 – 5,500 4,500 – 8,500 4,600 Reservoir Pressure (psi) High 3-10 30-450 4,500 - 9,500

EXPLORATION ACTIVITY IN VACA MUERTA Expansion of Vaca Muerta boundaries Pilots: LAC, BS, Lri, BdA, PdY Initial development phase of LC and EOr Start of shale gas exploration Delineation of Loma Campana Expansion of shale oil window Exploration drills the 1º hz well (500 m) 2007 – 2010 Geological studies Discovery of shale gas and shale oil 2 WELLS 2010 14 WELLS 2011 61 WELLS 2012-17 7 WELLS 2018-19 Vertical exploration well Horizontal exploration well REFERENCIA VM exploration block Exploitation NOC: Pilots Shale Oil Window Wet Gas Window Dry Gas Window Exploitation NOC: Development 10

YPF LEADING THE DEVELOPMENT IN VACA MUERTA 11 YPF AS OPERATOR (1) YPF AS SHALE PRODUCER IN ARGENTINA (2) 75% OIL (1) Source: "Activity at Vaca Muerta Play" - February 2019 - G&G Energy Consultants - Daniel G. Gerold / (2) G&G Energy Consultants 26% GAS # Well operated by YPF # Wells operated by others % Wells YPF 11 YPF AS SHALE PRODUCER IN ARGENTINA (2) 75% OIL 26% GAS 20 25 104 160 178 103 64 80 7 2 22 29 23 22 17 45 114 91% 53% 78% 87% 89% 86% 59% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 50 100 150 200 250 2011 2012 2013 2014 2015 2016 2017 2018 2019 11 39%

INVESTMENTS IN VACA MUERTA TOTALED ~9BUSD IN THE LAST 6 YEARS GROSS OPERATED INVESTMENT VACA MUERTA (IN MILLIONS OF USD) 12 1,055 1,662 1,727 1,068 930 964 ~1,500 120 320 382 330 169 119 ~500 1,175 1,981 2,109 1,398 1,099 1,083 ~2,000 2013 2014 2015 2016 2017 2018 2019 DRILLING FACILITIES E

AGENDA INTRODUCTION YPF SHALE ACTIVITY SHALE OIL PROJECTS 01 02 03 INFRASTRUCTURE MILESTONES & FUTURE CHALLENGES 04 05 13

EXPANDING SHALE OIL BOUNDARIES CLUSTER OIL N° 1 DEVELOPMENT Loma Campana – Bandurria Sur – La Amarga Chica CLUSTER OIL N° 3 EXPLORATION Sierra Barrosa Al Norte de la Dorsal Cerro Bandera CLUSTER OIL N° 2 DELINEATION Bajo del Toro – Narambuena – ChSN Future expansion to LLL Sur Future expansion to Las Manadas and Puesto Hernandez 14

LOMA CAMPANA 2019 GROSS CAPEX 2019 ~670 MUSD RIGS Dic-19: 4 Full Field Development Plateau (10 years) 100 kbbl/d WELLS 1,488 GROSS CAPEX +15 BUSD LA AMARGA CHICA 2019 GROSS CAPEX 2019 ~560 MUSD RIGS Dic-19: 4 Full Field Development Plateau (12 years) 65 kbbl/d WELLS 734 GROSS CAPEX +7.5 BUSD BANDURRIA SUR 2019 GROSS CAPEX 2019 ~290 MUSD RIGS Dic-19: 3 Full Field Development Plateau (10 years) 58 kbbl/d WELLS 578 GROSS CAPEX +6.7 BUSD GROSS PRODUCTION (KBBL/D) GROSS PRODUCTION (KBBL/D) GROSS PRODUCTION (KBBL/D) ACCELERATING OUR SHALE OIL DEVELOPMENTS 15

PRODUCTIVITY IMPROVEMENT TIMELINE LOMA CAMPANA (KBbl) LA AMARGA CHICA (KBbl) BANDURRIA SUR – SE ZONE (KBbl) EUR 800 kboe 2018 campaign EUR 980 kboe 2018 campaign EUR 905 kboe 2018 campaign 0 75 150 225 300 375 0 6 12 18 24 30 36 Months Avg. Campaign 2016 Avg. Campaign 2017 Avg. Campaign 2018 37 wells 30 wells 56 wells 0 75 150 225 300 375 0 6 12 18 24 30 36 Months Avg. Campaign 2016 Avg. Campaign 2017 Avg. Campaign 2018 11 wells 9 wells 66 wells 0 75 150 225 300 375 0 6 12 18 24 30 36 Months Avg. Campaign 2017 Avg. Campaign 2018 2 wells 2 wells 16

COST IMPROVEMENT TIMELINE DEVELOPMENT COST – HORIZONTAL WELL (USD/BOE) (1) Loma Campana development costs have been recalculated based on new information (1) 17 34 18 15 11 9 20 19 15 12 0 5 10 15 20 25 30 35 40 2015 2016 2017 2018 Q1 2019 Loma Campana La Amarga Chica

YPF SHALE ACTIVITY SHALE OIL PROJECTS 01 02 03 INFRASTRUCTURE MILESTONES & FUTURE CHALLENGES 04 05 18 AGENDA INTRODUCTION

2014 BATTERIES PSU-GAS PIPELINE RDM LLL 2015 2016 WATER NETWORK LOGISTIC CENTER PROPPANT PLANT NOC OFFICE CONTROL ROOM DRILLING-GEOST. CONTROL ROOM PRODUCTION BUILDING AN EFFICIENT PLATFORM TO FACILITATE OUR PRODUCTION GROWTH

2017 2018 2019 2020 LOMA CAMPANA OIL TREATMENT FACILITY LC-PELLEGRINI OIL PIPELINE BATTERIES LA AMARGA CHICA OIL TREATMENT FACILITY BANDURRIA SUR OIL TREATMENT FACILITY BUILDING AN EFFICIENT PLATFORM TO FACILITATE OUR PRODUCTION GROWTH 20

OIL TREATMENT FACILITIES Construction: 2014-2016 Capex: MMUSD 200 Main contractor: AESA LOMA CAMPANA • Blocks using the plant: Loma Campana, La Amarga Chica, Bandurria Sur and Bajada de Añelo (operated by Shell) • Dedicated control systems for process safety • Control room • Possibility to operate remotely Start-up: Dec-2016 Current capacity: 62.9 kboe/d Loma Campana Expand current capacity to 113.2 kboe/d Start-up: 4Q-2019 2019 - 2020 La Amarga Chica Construction: 2019 Investment: MUSD 75 Start-up: 2Q-2020 Capacity: 50.2 kboe/d Bandurria Sur Construction: 2020 Investment: MUSD 75 Start-up: 2Q-2021 Capacity: 50.2 kboe/d 21

LC – LP PIPELINE From: Loma Campana crude treatment plant To: Pellegrini Lake refueling station (Medanito-Allen Oldelval pipeline) Length: 88 Km Transportation capacity: 25,000 m /d (157 Kbbl/d) New pump station in Loma Campana Simultaneous operation to the current system MAIN CHARACTERISTICS Total: ~ 65 MUSD (1) CAPEX Construction: February 2018 Start-up: April 2019 SCHEDULE (1) Includes taxes and others Diameter: 18” 22 3

PROPPANT PLANT: CURRENT INFRASTRUCTURE & PLANNED EXPANSION Initial investment: 150 MUSD Current capacity: 360,000 tn/year Expansion estimated for 2019 New capacity: 1,000,000 tn/year Required investment for expansion: 46 MUSD 23

AGENDA INTRODUCTION YPF SHALE ACTIVITY SHALE OIL PROJECTS 01 02 03 INFRASTRUCTURE MILESTONES & FUTURE CHALLENGES 04 05 24

FACTORY MODEL Seeks to industrialize the production of unconventional wells The goal is reducing well construction costs and improving productivity in a consistent manner • Standardized designs and practices • Repetitive execution of activities • Learning curve acceleration INDUSTRIALIZATION + WORKING IN HUBS = EFFICIENCY, SINERGIES AND COST REDUCTIONS 25

LOMA CAMPANA EVOLUTION: KEY MILESTONES EXPLORATION PILOT + GROWTH INFRASTRUCTURE DEVELOPMENT FACTORY MODE DEV. COST FACTORY MODEL 2010-2011 2012-2014 2015 2016 2017 2018 2019 & Onwards RIGS: 01 RIGS: 05 RIGS: 05 # DRILLING RIGS PLUG & PERF FRAC BUNDLE CONTRACT FACTORY MODE STRUCTURE NEW GEN DRLG. RIGS (WALK – SKID) BATCH DRILLING FRAC: RIG LOCK / HOT REFUELING DISSOLVABLE PLUGS SNUBBING UNIT NEW TECH RSS SPUDDER RIGS 7500 PSI RIGS HIGH PERFORMACE MOTORS RSS FIRST HORIZONTAL SOIL-2H IDENTIFICATION OF PAY ZONES WITHIN VM UBD + CWD MUD MOTORS CALIPER, PRESSURE TEST AND ADMISION TEST (CPA SYSTEM) GEONAVEGATION 26

FLEXIPIPES LAST MILE SAND BOX OPTIMIZING SAND AND WATER SUPPLY 27

• 6 ¾” architecture • BHA design and new technologies • Optimization support room • Performance based contract incentives • Flexible geo-navegation window RATE OF PENETRATION (ROP) • 6 ¾” architecture & casing run times • BHA design and set-up times • Backreaming • Performance based contract incentives FLAT TIMES • BHA design and new technologies • Diversify BHA providers • Performance based contract incentives • LEAN execution NON-PRODUCTIVE TIME (NPT) YTD Performance: 30 days Last Pad: 27.5 days (LLL1564) Record: 26.1 days (SOil391) DRILLING TIME (DAY/ WELL) 2018 AVERAGE 2020 E NPT Flat times ROP 31 ~23 SETTING THE BAR HIGHER 28

Increase activity while maintaining a safety track record Confirm the productivity of new hubs Plan for new developments in those new hubs Keep the portfolio with optionality Replicate the success of Loma Campana in new developments Evaluate alternatives to unlock shale potential Ensure evacuation of future production FUTURE CHALLENGES 29

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

|  |  |  | YPF Sociedad Anónima
Date: June 25, 2019 |  |  |  | By: |  | /s/ Ignacio Rostagno
|  |  |  | Name: |  | Ignacio Rostagno
|  |  |  | Title: |  | Market Relations Officer