|Bid||4.1000 x 1100|
|Ask||4.2200 x 1300|
|Day's Range||4.1500 - 4.4800|
|52 Week Range||2.2500 - 8.3100|
|Beta (5Y Monthly)||1.82|
|PE Ratio (TTM)||1.33|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Jul 09, 2019|
|1y Target Est||3.97|
(Bloomberg) -- YPF SA, Argentina’s state-run oil company, needs to come up with more than $1 billion to spur drilling in Patagonia, where it’s leading development of the biggest shale patch outside the U.S.It’s not going to be easy. YPF restructured bonds last week to free up money to spend on shale, which demands a relentless cycle of drilling and fracking. But relatively few creditors took the new notes, and the company could only get $630 million of relief from debt payments over the next two years. It wanted more than that and will have to take extra steps to achieve spending targets, according to a person familiar with the matter.“They really didn’t clean their house as they’d hoped,” said Fernando Valle, an oil analyst for Bloomberg Intelligence in New York. YPF declined to comment.YPF is aiming for capital expenditures this year of $2.7 billion, which includes $1.3 billion in shale formation Vaca Muerta, as it tries to halt four years of production declines. After the coronavirus pandemic decimated revenue and the debt swap yielded limited results, getting there will require increasing fuel prices, cutting drilling costs, selling local debt, and maybe divesting assets.At stake is not only the company’s growth strategy, but the future of Vaca Muerta itself as capital controls turn foreign drillers away.Cheap FuelFuel sales are particularly important because YPF refines most of the oil it produces. Demand for gasoline and diesel has fallen because of the pandemic and prices for them in dollar terms are cheap, too, after years of government meddling to tame inflation.“If you’re using YPF to subsidize consumers it won’t have capital to keep drilling,” Valle said.The company needs to raise fuel prices this year by 5% in dollars, issue at least $400 million on the local debt market, and keep lowering costs to reach the $2.7 billion target, said Ezequiel Fernandez, an equity analyst in Buenos Aires for Balanz Capital Valores.That level of spending would allow YPF to grow crude production by 0.5% this year and keep natural gas production flat. It’s a fine line. Anything less than $2.5 billion would mean another fall in output, Fernandez said.Shale currently accounts for about a fifth of YPF’s crude. It wants to increase that proportion to a quarter this year and to as much as half by 2023. It produced the equivalent of 468,500 barrels a day of oil and gas in the third quarter of 2020, which is similar to Marathon Oil Corp. in the U.S.YPF reports fourth-quarter earnings on March 4.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Creditors of Argentina’s state-run oil company, YPF SA, are sending mixed signals as one group of bondholders rejected the company’s latest debt restructuring plan while another voiced support.The YPF Ad Hoc Bondholder Group, which says it holds 45% of YPF’s bonds maturing in March, said it wouldn’t tender its bonds in the company’s $6.2 billion debt swap, according to an emailed statement from Clifford Chance LLP, one of the group’s legal advisers. A second committee of creditors, led by law firms Dechert LLP and DLA Piper, said it supported the company’s latest amendments to its debt offer, which expires Friday at 11:59 pm in New York. This second group says it holds 25% of YPF’s debt across the company’s seven bonds, according to a separate statement.Bondholders have until Friday to accept YPF’s proposal to exchange $6.2 billion of existing debt for three new bonds and a cash sweetener. On Monday, the company amended its offer for the third time, proposing to its creditors a larger upfront cash payment as an incentive to attract more support for the swap.Read More: Shale Driller Stuns Creditors as Argentina’s Dollars DwindleThe offer “represents an improvement on previous terms announced by the company, but fails to provide a balanced solution, including appropriate treatment for the bonds maturing on March 23, 2021,” according to the statement from the group led by Clifford Chance. The group also said it submitted a counterproposal to YPF that would provide “interest savings over the next several years with below-market interest rates.”The committee, which was previously advised by White & Case LLP, hopes to continue negotiating with the company, it added.Meanwhile, the group led by Dechert and DLA Piper said the improved terms were “worthy of serious consideration by the holders of the 2021 notes,” and that large holders of the 2021 bonds, both within the so-called Dechert Group and outside it, plan to enter into the swap.YPF jolted bondholders last month by announcing the debt restructuring after Argentina’s central bank said it wouldn’t give the company the dollars it needed to make the $413 million bond payment due in March. YPF’s debt restructuring plans are designed to free up cash the company can use to boost production in the shale-rich region of Vaca Muerta in Patagonia.The company wants to get the restructuring done by Feb. 12, the last day that auditors can use the company’s balance sheet to approve market operations. After that date, YPF would have to wait until it reports earnings in early March to be able to agree to a deal.YPF’s U.S.-traded shares fell as much as 3.5% on Tuesday. Its bonds maturing in 2021 were little changed, edging up less than a cent as of 3:22 pm in New York.(Updates with deadline detail in eighth paragraph. A previous version corrected the bond amount due in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
On January 7, 2021, YPF S.A. ("YPF" or the "Company") launched exchange offers in respect of all seven series of its notes (collectively, the "Exchange Offer"). The Exchange Offer was a highly ambitious effort by the Company to extract concessions from its international creditors. The Ad Hoc YPF Bondholder Committee represented by Dechert LLP and DLA Piper Argentina (the "Dechert Group") promptly and forcefully provided its feedback to the Company through a letter dated January 10, in which it cited some grave concerns regarding the original offer.