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YPF (NYSE:YPF) said Thursday it plans to spend $3 billion of its $5 billion capital spending plan on shale this year, as it aims to generate more cash by abandoning some major conventional fields.
Argentina’s national oil company said it had plans to exit about 55 mature conventional blocks as it seeks to focus on its more profitable shale operations.
CEO Horacio Marin said he expects YPF’s (YPF) shale oil production to reach 160,000 bbl/d by 2025, after increasing production 24% in 2024, and that the company could produce 250,000 bbl/d by 2027.
“We plan to exit some of our mature conventional fields, but we will release approximately $800 million in capital expenditures to reallocate primarily to the shale oil business,” Marin said in the company’s post-earnings conference call.
The call came a day after YPF (YPF) released fourth-quarter results that posted a net loss of $1.86 billion, driven largely by a 9.7% decline in revenue to 4, $19 billion as total oil and gas production increased 2%; Adjusted EBITDA fell 5.9% to $1.15 billion.