Edgar Filing: YPF SOCIEDAD ANONIMA

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 February, 2015

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 x 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 x

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 x

YPF Sociedád Anonima

TABLE OF CONTENTS

ITEM


1		Translation of Consolidated Results Full Year 2014 & Q4 2014.

YPF S.A.

Consolidated Results

Full Year 2014 and Q4 2014


		Consolidated Results Full Year 2014 and Q4 2014

CONTENT


1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR THE YEAR 2014			3

2. ANALYSIS OF RESULTS FOR YEAR 2014 AND Q4, 2014			4

2.1 CUMULATIVE RESULTS			4

2.2 FOURTH QUARTER 2014			6

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS UNIT			8

3.1 UPSTREAM			8

3.1.1 CUMULATIVE RESULTS			9

3.1.2 FOURTH QUARTER 2014			11

3.2 DOWNSTREAM			13

3.2.1 CUMULATIVE RESULTS			13

3.2.2 FOURTH QUARTER 2014			14

3.3 CORPORATE			15

3.4 RELATED COMPANIES			15

4. LIQUIDITY AND SOURCES OF CAPITAL			16

5. TABLES AND NOTES			17

5.1 CONSOLIDATED STATEMENT OF INCOME			18

5.2 CONSOLIDATED BALANCE SHEET			19

5.3 CONSOLIDATED STATEMENT OF CASH FLOW			20

5.4 CONSOLIDATED INFORMATION ON BUSINESS SEGMENTS			21

5.5 MAIN DOLLAR-DENOMINATED FINANCIAL MAGNITUDES			22

5.6 MAIN PHYSICAL MAGNITUDES			23

5.7 ADDITIONAL INFORMATION ON OIL AND GAS RESERVES			24


		Consolidated Results Full Year 2014 and Q4 2014

2014 closed with increases in revenues of 57.5%, operating income of 64.3% and adjusted EBITDA of 72.8%


Q4 2013		Q3 2014		Q4 2014		Var.% Q4 14/Q4 13				*Jan - Dec () 2013**		Jan - Dec 2014		Var.% 2014 / 2013
	25,294		38,209		37,739		49.2	%	Revenues (Million Ps)		90,113		141,942		57.5	%
	3,820		8,044		1,364		-64.3	%	Operating income (Million Ps)		12,015		19,742		64.3	%
	1,918		3,212		1,383		-27.9	%	Net income ()** (Million Ps)		5,681		9,002		58.5	%
	7,511		13,603		8,437		12.3	%	Adj. EBITDA (Million Ps)		23,962		41,412		72.8	%
	4.89		8.19		3.52		-28.0	%	Earnings per share ARS ()** (Ps per Share)		14.44		22.95		58.9	%
	7,539		5,734		2,417		-67.9	%	Comprehensive Income (Million Ps)		17,666		25,125		42.2	%
	4,320		13,776		17,969		315.9	%	Capital Expenditures ()* (Million Ps)		29,848		58,881		97.3	%

Adjusted EBITDA= Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets + Unproductive exploratory drillings.

(*)	Jan - Dec 2013 results show recurring results, which do not include the provision for claims relating to AES Uruguaiana Emprendimientos S.A. (AESU) and Transportadora de Gas del Mercosur S.A. (TGM) arbitration.

(**)	Attributable to controlling shareholder.

(***)

Capital expenditures for Jan - Dec 2014 consolidated results include the acquisitions of Apache Group assets in Argentina (net from the assignment to Pluspetrol), Bajada de Añelo, La Amarga Chica, Puesto Hernández, Lajas and La Ventana joint ventures, for a total amount of Ps 7,442 million. Capital expenditures for Jan - Dec 2013 and Q4 2013 include the assignment of Loma Campana to Chevron for a total negative amount of Ps 6,708 million.

(Amounts are expressed in billions of Argentine pesos, except where indicated)

1. MAIN MILESTONES AND ECONOMIC MAGNITUDES FOR FULL YEAR 2014

•

Revenues for 2014 were Ps 141.9 billion, 57.5% higher than 2013 with notable increases in revenues from sales of diesel, an increase of Ps 18.2 billion, gasoline, an increase of Ps 11.3 billion, and natural gas, an increase of Ps 8.3 billion.

•

For 2014, operating income was Ps 19.7 billion, 64.3% higher than 2013 while adjusted EBITDA for 2014 was Ps 41.4 billion, 72.8% higher than adjusted EBITDA for 2013.

•

Operating cash flow was Ps 46.2 billion for 2014, 120.2% higher than the Ps 21 billion reported for 2013. With respect to total investments in fixed assets, there was a 75.3% increase to Ps 52.3 billion. The net debt to adjusted EBITDA ratio for 2014 was 0.95x, slightly higher than 0.9x for 2013.

•

Total hydrocarbon production for 2014 was 13.5% higher than 2013, reaching 560.1 Kbped. Crude oil production was 244.6 kbbld for 2014, 5.3% higher than 2013. Natural gas production was 42.4 Mm3d for 2014, 25.1% higher than 2013. Average crude oil processed for 2014 reached 290 Kbbld, 4.3% higher than 2013. The refinery utilization average for 2014 was 91%.


		Consolidated Results Full Year 2014 and Q4 2014

•

In 2014, 333 Mboe of hydrocarbon reserves were added, of which 154 Mbbl corresponds to liquids and 179 Mboe to corresponds natural gas. Proved reserves (P1) increased 11.9% from 1,083 Mboe in 2013 to 1,212 Mboe in 2014. The reserve replacement ratio was 163%, while same ratio for natural gas was 184%.

2. ANALYSIS OF RESULTS FOR FULL YEAR 2014 AND Q4 2014

2.1 CUMULATIVE RESULTS FOR FULL YEAR 2014 COMPARED TO FULL YEAR 2013

Revenues for 2014 were Ps 141.9 billion, an increase of 57.5% compared to 2013. This increase was driven mainly by higher sales in the domestic market of: (i) diesel for Ps 18.2 billion, an increase of 52%, with an increase in sales volume of 0.8%, (ii) gasoline for Ps 11.3 billion, an increase of 64%, with an increase in sales volume of 3.9%, (iii) natural gas for Ps 8.3 billion, an increase of 91.5% primarily from stronger production for the period and the addition of sales from YSUR of approximately Ps 1.5 billion and higher average prices, (iv) fuel oil for Ps 2.9 billion, an increase of 134%, (v) petrochemical products for Ps 1.5 billion, an increase of 62% and (vi) jet fuel for Ps 1.2 billion, an increase of 70%. Exports increased Ps 3 billion, an increase of 28%, driven by higher prices in Argentine peso terms for exports of jet fuel, flour, oils and grains, fuel oil and petrochemical products, which offset the decrease in exported volumes during the year.

Cost of sales for 2014 were up by 53.5% compared to 2013. Purchases increased principally due to (i) the price increase in Argentine peso terms of crude oil purchased from third parties in the domestic market, an increase of 56.1%, and (ii) greater imports of gasoline and diesel of Ps 2.8 billion, an increase also driven almost entirely by higher prices in Argentine peso terms. With respect to other production costs for the year, the increase was mainly due to (i) higher depreciation of fixed assets of Ps 8.4 billion resulting from higher investments in assets and the amortization of YSUR´s assets, which are now consolidated, (ii) higher expenses for construction and service contracts of Ps 6.2 billion, directly related to stronger activity of the company and (iii) higher royalty payments for Ps 3.6 billion generated by higher volumes produced and higher wellhead prices in Argentine peso terms.

With respect to the damage affecting the La Plata Refinery, insurance compensation of approximately Ps 2.0 billion for lost profits was received in 2014 under our insurance policy. This amount was recorded as a reduction to cost of sales based on the assumption that lower volumes of refined products would have been imported if the refinery had not been damaged. In relation to this incident, Ps 1.5 billion of other income (expenses), net was recorded in Q4 2013, primarily due to insurance compensation for material damage and insurance compensation of Ps 0.5 billion for lost profits was recorded as a reduction to cost of sales.

Selling expenses for 2014 were Ps 10.1 billion, an increase of 33.6% compared to 2013. The increase was driven principally by higher bank transaction taxes as well as increased transportation expenses for products, which arose mainly from higher transportation fees for fuel products in the domestic market and higher volumes transported and sold.


		Consolidated Results Full Year 2014 and Q4 2014

Administration expenses for 2014 were Ps 4.0 billion, an increase of 68.7% compared to 2013. The increase was mainly due to higher payroll expenses due to salary adjustments made throughout 2014, higher institutional publicity expenses related to the launch of the company’s new Infinia premium fuel and the relaunch of our Serviclub loyalty program, higher expenses for IT service contracts and the YSUR consolidation process.

Exploration expenses were Ps 1.2 billion, an increase of 145.4% compared to 2013. The increase was primarily due to a substantial increase in the company’s exploration activities in Argentina. Ps 2.3 billion in exploration assets were added in 2014, an increase of approximately 148% compared to 2013. The company maintained its overall rate of exploratory success.

Other revenues (expenses) net, were negative Ps 1.0 billion for 2014, compared to positive Ps 0.2 billion for 2013, which included among others the compensation for lost profit as before mentioned, partially offset by the provision for claims related to the AESU and TGM arbitration and an approximately Ps 1.2 billion expense recorded due to legal claims for alleged past contractual obligations by third parties against Maxus Energy Corporation, YPF Holdings’ subsidiary. The increase in expenses was partially offset by the Ps 1.5 billion insurance compensation for lost profits discussed above and by proceeds from the sale to Sinopec of a 30% interest in the concession extension for the La Ventana area in the province of Mendoza and proceeds from the assignment of Pluspetrol assets.

In 2014, operating income reached Ps 19.7 billion, an increase of 64.3% compared to 2013. The increase resulted from significant increases in operating income from the upstream and the downstream business segments of 72.1% and 63.3%, respectively.

Adjusted EBITDA for 2014 was Ps 41.4 billion, an increase of 72.8% compared to 2013. Beginning in Q4 2014, the company changed how it calculated adjusted EBITDA to include expenses for unproductive exploratory drillings, because these expenses are considered a capital expenditure for each year before they are recorded as expenses later in the year (if the wells drilled prove to be unproductive). These expenses were Ps 1.3 billion for 2014, compared to Ps 0.5 billion for 2013.

Financial results for 2014 were positive in Ps 1.8 billion, compared to positive Ps 2.8 billion for 2013. This decrease was driven primarily by increased interest expenses due to increases in the company’s overall indebtedness and higher average interest rates paid during 2014 compared to 2013. It was partially offset by higher foreign exchange gains on net monetary assets in Argentine peso terms, due to a faster rate of depreciation of the Argentine peso in 2014 compared to 2013.

Income tax for 2014 was Ps 13.2 billion, an increase of approximately Ps 4.0 billion higher than the year 2013 income tax of Ps 9.3 billion. This increase was principally due to an increase in current tax liability of Ps 4.5 billion as a result of higher revenues in 2014 and the decrease in deferred income tax of Ps 0.5 billion.

Net income for 2014 was Ps 9.0 billion, an increase of 58.5% compared to 2013.


		Consolidated Results Full Year 2014 and Q4 2014

Total capital expenditures in fixed assets for the year 2014 increased by 97.3% to reach Ps 58.9 billion. This includes: (i) for the year 2014 the changes in fixed assets due to the acquisition of Apache Group’s assets, net from the assignment of assets to Pluspetrol, and the assignment of working interest in Bajada de Añelo, La Amarga Chica, Puesto Hernández, Lajas and La Ventana joint ventures all of which totaled Ps 7.4 billion, and (ii) for year 2013 the assignment of the working interest in Loma Campana to Chevron that reduces fixed asset by Ps 6.7 billion. The increase in investment, without considering the changes in fixed assets mentioned above, is 40.7% with a total investment amount of Ps 51.4 billion. Most of these capital expenditures refer to stronger development activities in the Upstream business segment, both of conventional and non-conventional production projects and the progress in projects within the Downstream business segment.

During 2014, hydrocarbon reserves of 333 Mboe were added, of which 154 Mbbl correspond to liquids and 179 Mboe to natural gas. Proved reserves increased 11.9% from 1,083 Mboe in 2013 to 1,212 Mboe in 2014. The reserve replacement ratio was 163%, while same ratio for gas was 184%.

During 2014, the company issued negotiable obligations in the local capital markets for a total amount equivalent of Ps 3.8 billion and in the international capital markets for US$1.1 billion. The company maintained the average maturity of its indebtedness at approximately 3.5 years. As of December 31, 2014, 35% of the company’s indebtedness was denominated in Argentine pesos and the rest was primarily denominated in U.S. dollars.

2.2 RESULTS FOR Q4 2014 COMPARED TO Q4 2013

Revenues for Q4 2014 were Ps 37.7 billion, an increase of 49.2% compared to Q4 2013. This increase was driven mainly by higher sales in the domestic market of: (i) diesel for Ps 4.5 billion, an increase of 47% with stable sales volumes, (ii) gasoline for Ps 2.8 billion, an increase of 55%, with an increase in sales volumes of 0.4%, (iii) natural gas for Ps 2.4 billion, an increase of 89.9%, driven by higher production, the addition of sales from YSUR of approximately Ps 0.6 billion and higher average prices, (iv) fuel oil for Ps 0.7billion, an increase of 89%, (v) jet fuel for Ps 0.3 billion, an increase of 67% and (vi) petrochemical products for Ps 0.3 billion, an increase of 46%. Exports increased Ps 0.6 billion, an increase of 23%, driven by higher sales volumes and prices in Argentine peso terms for exports of jet fuel, flour, oils and grains, fuel oil and petrochemical products.

Cost of sales for Q4 2014 were Ps 29.7 billion, an increase of 50.6% compared to Q4 2013. Purchases increased principally due to (i) the increase in Argentine peso terms of prices for crude oil purchased from third parties in the domestic market (an increase of approximately 44%), which was partially offset by lower overall volumes purchased due to the company’s increased production, (ii) increases in biofuel purchases of Ps 0.9 billion and (iii) increased costs to import diesel and gasoline of Ps 0.3 billion, due primarily to higher prices in Argentine peso terms as a result of the devaluation of the Argentine peso against the US Dollar, which was partially offset by lower volumes purchased. Other costs of sales increased principally due to (i) higher depreciation of fixed assets of Ps 2.8 billion related to increased investment activity and the impact of higher foreign exchange rates affecting the depreciation charge,


		Consolidated Results Full Year 2014 and Q4 2014

(ii) greater activity and expenses related to construction and service contracts of Ps 1.5 billion, in part related to the consolidation of YSUR and (iii) increased royalty payments of Ps 1.0 billion as a result of higher production volumes and higher wellhead prices in Argentine peso terms.

With respect to the incident that occurred at the La Plata Refinery in Q2 2013, insurance compensation of Ps 0.4 billion for lost profits was received in Q4 2014. This was recorded as a reduction to cost of sales based on the assumption that lower volumes of refined products would have been imported if the refinery had not been damaged. In Q4 2013, insurance compensation for lost profits was Ps 0.5 billion, which was also recorded as a reduction to cost of sales.

Selling expenses for Q4 2014 were Ps 2.8 billion, an increase of Ps 0.8 billion compared to Q4 2013. This increase was driven principally by higher transportation expenses for products and higher transported and sold volumes, as well as increased bank transaction taxes, publicity and other marketing expenses and, to a lesser extent, higher withholdings on exports.

Administration expenses for Q4 2014 were Ps 1.4 billion, Ps 0.6 billion higher than Q4 2013. The increase was mainly due to higher payroll expenses, higher publicity expenses related to the launch of the company’s new Infinia premium fuel and the relaunch of our Serviclub loyalty program and the consolidation of YSUR.

Exploration expenses were Ps 0.8 billion, an increase of approximately Ps 0.5 billion compared to Q4 2013, mainly due to a significant increase in exploration activities in Argentina.

Other revenues (expenses) net, were negative by approximately Ps 3.0 billion compared to fourth quarter of 2013. This increase in expenses was driven primarily by an approximately Ps 1.2 billion expense due to legal claims by third parties against Maxus Energy Corporation, YPF Holdings’ subsidiary. In addition, insurance compensation of Ps 1.5 billion for material damage related to the La Plata Refinery incident was paid in Q4 2013, which decreased expenses for that quarter.

Operating income for Q4 2014 reached Ps 1.4 billion, a decrease of 64.3% lower than the Ps 3.8 billion reported for same period of 2013. In turn, adjusted EBITDA for Q4 2014 was Ps 8.4 billion, an increase of 12.3% compared to Q4 2013. Excluding the Q4 2013 insurance compensation payout as well as the Q4 2014 Maxus Energy Corporation expenses described above, operating income and adjusted EBITDA would have been positive by 10.7% and 50.6% respectively.

Financial results for Q4 2014 were negative Ps 1.7 billion, compared to positive Ps 1.9 billion for Q4 2013. This decrease was primarily driven by increased interest expenses due to increases in the company’s overall indebtedness level and lower foreign exchange gains on net monetary assets in Argentine peso terms due to a slower rate of depreciation of the Argentine peso in Q4 2014 compared to Q4 2013.

Income tax amount for Q4 2014 was positive Ps 1.1 billion, approximately Ps 5.2 billion better than the expense for Q4 2013, which was Ps 4.1 billion. This difference arises principally from the positive variation of deferred income tax of Ps 6.8 billion, due to a lower effective rate finally applied by 2014 year


		Consolidated Results Full Year 2014 and Q4 2014

end on account of the resulting exchange rate prevailing as of year-end, considering the impact on translation differences for fixed assets and consequently deferred liabilities; this should also be compared to what happened in the last quarter of 2013.

Net income for Q4 2014 was Ps 1.4 billion, a decrease of 27.9% compared to Q4 2013.

Total capital expenditures in fixed assets for the quarter was Ps 18.0 billion, 62.9% higher than that for Q3 2013, not considering for this later period the assignment of the working interest in Loma Campana to Chevron that reduces fixed asset by Ps 6.7 billion. This greater investment arises from (i) an increase in development activities, principally well drilling and workover and (ii) progress in the set of projects developed by our Downstream business segment.

3. ANALYSIS OF OPERATING RESULTS BY BUSINESS UNIT

3.1 UPSTREAM


Q4 2013		Q3 2014		Q4 2014		Var.% Q4 14/Q4 13				Jan - Dec (*) 2013		Jan - Dec 2014		Var.% 2014 / 2013
	1,729		4,463		1,572		-9.1	%	Operating income (Million Ps)		7,179		12,353		72.1	%
	12,673		19,357		19,736		55.7	%	Revenues (Million Ps)		42,697		70,697		65.6	%
	239.3		246.0		249.8		4.4	%	Crude oil production (Kbbld)		232.3		244.6		5.3	%
	54.7		44.6		58.1		6.2	%	NGL production (Kbbld)		48.2		48.7		1.0	%
	35.5		44.9		43.7		23.1	%	Gas production (Mm3d)		33.9		42.4		25.1	%
	517.0		573.0		582.8		12.7	%	Total production (Kboed)		493.4		560.1		13.5	%
	304		306		804		164.5	%	Exploration costs (Million Ps)		829		2,034		145.4	%
	1,975		11,131		14,138		616.0	%	Capital Expenditures ()** (Million Ps)		22,799		49,081		115.3	%
	2,902		4,618		5,516		90.1	%	Depreciation (Million Ps)		9,591		17,180		79.1	%
									Realization Prices
	74.7		76.1		76.4		2.3	%	Crude oil prices in domestic market ()* Period average (USD/bbl)		71.4		73.7		3.2	%
	4.00		4.28		4.42		10.5	%	Average gas price () (USD/Mmbtu)		3.79		4.29		13.2	%

(*)	Jan - Dec 2013 consolidation shows recurrent results not including the provision for claims relating to AESU and TGM arbitration.

(**)

Capital expenditures for Jan- Dec 2014 consolidated results include the acquisitions of Apache Group assets in Argentina (net from the assignment to Pluspetrol), Bajada de Añelo, La Amarga Chica, Puesto Hernández, Lajas and La Ventana joint ventures, for a total amount of Ps 7,442 million. Capital expenditures for Jan- Dec 2013 and Q4 2013 include the assignment of Loma Campana to Chevron for a total negative amount of Ps 6,708 million.

(***)

Q3 and Q4 2014 include YSUR crude oil sales prices.

(****)

Q4 2013 and consolidated values Jan- Dec 2013 were recalculated. Also, Q3 and Q4 2014 include gas sales prices from YSUR.


		Consolidated Results Full Year 2014 and Q4 2014

3.1.1 CUMULATIVE RESULTS

Operating income for the Upstream business segment for 2014 was Ps 12.4 billion, an increase of 72.1% compared to recurring operating income of 2013.

Revenues for 2014 were Ps 70.7 billion, an increase of 65.6% compared to 2013, driven primarily by higher volumes produced and transferred to our Downstream business segment and higher average prices in Argentine peso terms for crude oil and natural gas. All of YPF’s net production of natural gas, except for volumes from the YSUR group (which are directly sold to third parties), is assigned to the downstream business segment for sale to third parties at prices obtained by YPF, net of an intracompany sales charge.

The average price in U.S. dollar terms for crude oil in the domestic market for 2014 was U.S.$73.70/Bbl, an increase of 3.2% compared to 2013. The average price for natural gas for 2014 was U.S.$4.29/Mmbtu, an increase of 13.2% compared to 2013. For both products, these prices include the average sales prices obtained by YSUR for crude oil and natural gas of U.S.$79.20/Bbl and U.S.$3.32/Mmbtu, respectively.

Total hydrocarbon production for 2014 was 560.1 Kboed, an increase of 13.5% compared to 2013, which was fueled by 5.7% organic growth in YPF’s production. This includes additional production relating to the acquisition of an additional 38.45% interest in the Puesto Hernandez area in January 2014 and the acquisition of YSUR, which added 38.6 Kbped of production. Crude oil production was 244.6 Kbbld in 2014, an increase of 5.3%, and natural gas production was 42.4 Mm3d, an increase of 25.1%.

The organic growth in production comes mainly from the Neuquina basin, especially the production of tight gas from Lajas formation that reached a daily average of 3.5 Mm3d, an increase of 439% compared to 2013.

During 2014, 908 wells were drilled, 255 targeting non-conventional formations: 173 in Loma Campana, 44 in segment 5 (Lajas), Loma La Lata, 29 in Rincón del Mangrullo and 9 in El Orejano. As of December 31, 2014, the total number of active drilling units was 74.

Cost of sales for 2014 increased by 64.3% (an increase of Ps 22.8 billion), compared to 2013, mainly due to (i) higher amortization for Ps 7.6 billion in 2014, as a result of increased investments and higher valuations of assets in Argentine peso terms, (ii) an increase of Ps 5.1 billion in costs of outsourced services, mainly relating to increased activity, higher rates in Argentine peso terms for these services and the consolidation of YSUR, (iii) increased royalties of Ps 3.6 billion, mainly due to higher production volumes and higher Argentine peso-denominated prices at wellhead and the consolidation of YSUR and (iv) increase of Ps 1.2 billion in exploration costs for reasons previously discussed.

It is noteworthy that unit operating cash costs in U.S. dollars decreased by 5.7% to U.S.$24.90/Boe in 2014 from U.S.$26.40/Boe in 2013 (including taxes of U.S.$5.50/Boe and U.S.$5.60/Boe respectively), principally due to both higher production and the devaluation of the Argentine peso compared to the U.S. dollar. The average lifting cost for the company was U.S.$13.90/Boe, 6.8% lower than U.S.$15.20/Boe in 2013.


		Consolidated Results Full Year 2014 and Q4 2014

Reserves

In 2014, 333 Mboe of hydrocarbon reserves were added, of which 154 Mbbl corresponds to liquids and 179 Mboe, or 28 billion Mm3 was natural gas. Proved reserves increased 11.9%, from 1,083 Mboe in 2013 to 1,212 Mboe in 2014. YSUR consolidated reserves of 140 Mboe are included in the 2014 figure.

Consequently, the reserve replacement ratio was 163%, while the same ratio was 184% for natural gas and 144% for liquids. In 2013, the reserve replacement ratio was 158%.

Proved reserves were added in (i) Aguada Toledo—Sierra Barrosa for the development of tight gas from the Lajas formation, (ii) Rincón del Mangrullo for the development of tight gas in the Mulichinco formation, (iii) relation to concession extensions in the Provinces of Rio Negro (both for YPF and YSUR) and Tierra del Fuego (for YSUR), (iv) Loma Campana for the development of shale oil in the Vaca Muerta formation, (v) the oil fields in basin Golfo San Jorge and Neuquina for new oil and gas development projects and (vi) relation to the extension of secondary recovery. Reserves were also added through the consolidation of YSUR. There was also a decrease in reserves of 41 Mboe in 2014 as a result of the sale of extensions relating to contracts in Magallanes and La Ventana areas to ENAP Sipetrol and Sinopec, respectively, as well as the assignment of blocks to GyP, mainly Puesto Cortadera.


		Consolidated Results Full Year 2014 and Q4 2014

3.1.2 FOURTH QUARTER 2014

Operating income for the upstream business segment for Q4 2014 was Ps 1.6 billion, a decrease of 9.1% compared to Q4 2013.

Revenues for Q4 2014, sales increased by 55.7% compared to Q4 2013, primarily due to higher crude oil and natural gas sales. Crude oil sales increased Ps 4.3 billion, an increase of by 44.1%, due to increases in the price per barrel in Argentine peso terms and higher volumes produced and transferred to our Downstream business segment. Revenues from natural gas increased by 79.2% compared to Q4 of 2013, as a result of higher volumes produced and increases in the average sales price.

The average price in U.S. dollars terms for crude oil in the domestic market for Q4 2014 was U.S.$76.4/bbl, an increase of 2.3% compared to 2013. The average price for natural gas for Q4 2014 was U.S.$4.42/Mmbtu, an increase of 10.5% compared to Q4 2013. For both products, these prices include the average sales prices obtained by YSUR for crude oil and natural gas of U.S.$82.90/Bbl and U.S.$4.20/Mmbtu, respectively. Since November 2014, YSUR has been part of the Argentine government’s “Gas Plan II,” with retroactive effect to July 2014. For that reason, the average price for Q4 2014 was considerably higher than the average price for Q3 2014.

In Q4 2014, total hydrocarbon production was 582.8 Kboed, 12.7% higher than that for the same quarter of 2013; crude oil production was 249.8 Kbbld (an increase of 4.4%); natural gas production was 43.7 Mm3d (an increase of 23.1%) and NGL production was 58.1Kbbld (an increase of 6.2%). Consolidated daily hydrocarbon production from YSUR was 46.6 Kboed, including crude oil 9.4 Kbbld, NGL 1.8 Kbbld and natural gas 5.6 Mm3d.

Total unconventional hydrocarbon production for Q4 2014 was 38 Kboed, including 20.3 Kbbld of crude oil, 7.9 Kbbld of NGL and 1.6 Mm3d of natural gas, of which YPF consolidates approximately 50%. During Q4 2014, 38 new wells were put in production targeting the Vaca Muerta formation, reaching a total of approximately 300 wells, including 18 active drilling rigs and seven workovers.

With respect to tight gas activity: (i) in the project to develop the Lajas formation, 11 wells were drilled and developed in Q4 2014 and the average production of natural gas was 4.0 Mm3d and (ii) in the project to develop the Mulichinco formation in the Rincón del Mangrullo area, natural gas production net for YPF was 0.8 Mm3d.

Work continues on the recovery of production in the Malargüe area, which was affected by the fire that occurred in March of 2014 at the Cerro Divisadero plant, located in the province of Mendoza. During Q4 2014, crude oil production in Malargüe reached an average of 7.2 kbbld (2 kbbld below levels before the incident).

Cost of sales for Q4 2014 increased by 66.0% (an increase of Ps 7.2 billion), mainly due to (i) higher amortization of Ps 2.6 billion in 2014, as a result of increased investments and higher valuations of assets in Argentine pesos terms, (ii) an increase of Ps 1.5 billion in costs of outsourced services, mainly relating to increased activity and the consolidation of YSUR, (iii) an increase in royalties of


		Consolidated Results Full Year 2014 and Q4 2014

Ps 1.0 billion, mainly due to higher production volumes, higher Argentine peso-denominated wellhead prices and the consolidation of YSUR and (iv) an increase in exploration costs of Ps 0.5 billion, mainly due to higher charges for geological studies performed during the current period.

CAPEX

Cumulative capital expenditures of the Upstream business segment for the year 2014 was Ps 49.1 billion, a 115.3% increase compared to 2013, which included: (i) for the year 2014 the changes in fixed assets due to the acquisition of Apache Group’s assets, net of the assignment of assets to Pluspetrol, and the assignment of working interest in Bajada de Añelo, La Amarga Chica, Puesto Hernández, Lajas and La Ventana joint ventures all of which totaled Ps Ps 7,4 billion, and (ii) for the year 2013 the assignment of the working interest in Loma Campana to Chevron that reduces fixed asset by Ps 6.7 billion. The increase in investment, without considering the changes in fixed assets mentioned above, is 40.7% with a total investment amount of Ps 51.4 billion. Upstream investment in Q4 2014 was Ps14.1 billion, outpacing that for same period in 2013, without considering the Ps 6.7 billion reduction of fixed assets mentioned above, by 62.8%.

Capital expenditures in the Upstream business segment for Q4 2014 were Ps 14.1 billion, an increase of 62.8% compared to Q4 2013. This increase was primarily as a result of investments in (i) the Neuquina basin, in the areas of Loma Campana, Aguada Toledo - Sierra Barrosa (development of tight gas in Lajas formation) and Puesto Molina, (ii) the Golfo San Jorge basin, in the areas of Manantiales Behr and El Trébol in the province of Chubut to increase recovery and in the areas of Los Perales, Cañadón Seco, Cañadón Yatel and Cañadón de la Escondida in the province of Santa Cruz and (iii) the Cuyana basin, in the areas in the North of Mendoza.

In Q4 2014, exploration investments were made in (i) the Neuquina basin, in the areas of Bandurria, El Manzano, Loma del Molle, Cerro Arena, Las Lajas East, Rincón del Mangrullo, Los Caldenes, Cañadón Amarillo and Paso Bardas, (ii) the Golfo San Jorge basin in Barranca Baya, Los Perales, Cerro Piedra and Manantiales Behr and (iii) the Cuyana basin, the areas of Barrancas, La Ventana and Los Tordillos.


		Consolidated Results Full Year 2014 and Q4 2014

3.2 DOWNSTREAM


Q4 2013		Q3 2014			Q4 2014			Var.% Q4 14/Q4 13				Jan - Dec 2013			Jan - Dec 2014			Var.% 2014 / 2013
	2,767		3,864			1,740			-37.1	%	Operating income (Million Ps)		6,721			10,978			63.3	%
	24,623		35,746			35,347			43.6	%	Revenues (Million Ps)		86,771			133,743			54.1	%
	4,094		4,297			4,445			8.6	%	*Sales of refined products in domestic market ()** (Km3)		15,988			16,828			5.3	%
	432		284			428			-0.9	%	Exportation of refined products (Km3)		1,502			1,541			2.6	%
	198		232			216			9.3	%	Sales of petrochemical products in domestic market ()** (Ktn)		779			849			9.0	%
	49		88			54			10.2	%	Exportation of petrochemical products ()** (Ktn)		281			254			-9.6	%
	287		299			296			3.1	%	Crude oil processed (Kboed)		278			290			4.3	%
	90%		94	%		93	%		3.1	%	Refinery utilization (%)		87	%		91	%		4.3	%
	2,106		2,311			3,248			54.2	%	Capital Expenditures (Million Ps)		4,903			8,392			71.1	%
	485		634			675			39.3	%	Depreciation (Million Ps)		1,452			2,445			68.4	%
	704		789			778			10.5	%	Average domestic market gasoline price ()* (USD/m3)		712			761			6.9	%
	774		824			814			5.1	%	Average domestic market diesel price ()* (USD/m3)		783			799			2.1	%

(*)	YSUR sales of LPG not included.

(**)	Fertilizer sales not included

(***)

Price net of deductions and commissions before tax

3.2.1 CUMULATIVE RESULTS

Operating income for the Downstream business segment for 2014 was Ps 11.0 billion, an increase of 63.3% compared to 2013.

Revenues for 2014 were Ps 133.7, an increase of 54.1% compared to 2013, primarily due to higher sales of diesel, which totaled Ps 18.2 billion, and gasoline, which totaled Ps 11.3 billion, driven in part by higher average prices in Argentine peso terms and an increase in sales volumes of 0.8% and 3.9%, respectively. Fuel oil sales were Ps 7.7 billion, an increase of Ps 3.8 billion, due to higher prices in Argentine peso terms and an increase in sales volumes of 33.4%. Sales of petrochemical products reached Ps 5.9 billion, an increase of Ps 2.0 billion, also due to higher prices in Argentine peso terms and an increase in sales volumes of 4.2%. In 2014, exports of jet fuel totaled Ps 3.3 billion, an increase of Ps 1.0 billion, and exports of flour, oils and grains reached Ps 3.1 billion, an increase of Ps 1.0 billion.


		Consolidated Results Full Year 2014 and Q4 2014

Cost of sales for 2014 increased by 53.4% compared to 2013. The increase was primarily due to (i) a Ps 22.5 billion increase in purchases of crude oil due to price increases in Argentine peso terms, both with respect to volumes transferred from the upstream business segment and crude oil purchased from other producers, (ii) a Ps 2.8 billion increase in biofuel purchased due to higher prices and greater volumes purchased, (iii) a Ps 2.7 billion increase in imports of diesel and gasoline, mainly due to higher prices paid in Argentine peso terms and a 1.0% increase in imported volumes and (iv) an increase in depreciation expenses of Ps 1.0 billion.

Insurance compensation of Ps 2.0 billion for lost profits was received in 2014 related to the incident at the La Plata Refinery during Q2 2013. This amount was recorded primarily as a reduction to cost of sales. Ps 1.5 billion was recorded as other income (expenses), net in Q4 2013, as compensation for material damage. Ps 0.5 billion was recorded as a reduction to cost of sales in Q4 2013.

Refinery utilization for 2014 was 91%, an increase of 4.3 percentage points compared to 2013, which represented a significant recovery after the incident in Q2 2013 at La Plata Refinery.

3.2.2 Q4 2014

Operating income for the Downstream business segment for Q4 2014 was Ps 1.7 billion, a decrease of 37.1% compared Q4 2013.

Revenues for Q4 2014 were Ps 35.3, an increase of 43.6% compared to Q4 2013, primarily due to higher sales of diesel, which totaled Ps 4.5 billion, and gasoline, which totaled Ps 2.8 billion, due in part to higher average prices in Argentine peso terms with steady sales volumes. In turn, for the same period, international sales increased by 23% (an increase of Ps 0.6 billion), principally due to higher volumes exported (an increase of Ps 0.5 billion) as well as higher average prices in Argentine peso terms (an increase of Ps 0.1 billion)

Cost of sales for Q4 2014 increased by 44.0% or Ps 10.3 billion (without considering the insurance recovery for material damage of Ps 1.5 billion charged in fourth quarter 2013) compared to the same period of prior year. This increase is primarily due to (i) a Ps 4.7 billion increase in purchases of crude oil due to price increases in Argentine peso terms, both with respect to volumes transferred from the upstream business segment and crude oil purchased from other producers, (ii) a Ps 0.9 billion increase in biofuel purchased due to higher prices and greater volumes purchased and (iii) Ps 0.2 billion in higher depreciation costs. Imports of diesel were Ps 1.8 billion, an increase of 3.6%, due to higher prices in Argentine peso terms of imported diesel, which was partially offset by a 13.5% drop in the volume purchased.

Insurance compensation of Ps 0.4 billion for lost profits was received in Q4 2014 related to the incident at the La Plata Refinery during Q2 2013. This amount was primarily recorded as a reduction to cost of sales.


		Consolidated Results Full Year 2014 and Q4 2014

Increased availability of light crude oil allowed the La Plata Refinery to reach its pre-incident processing levels. As a result, crude oil processing volume for Q4 2014 was 296 Kbbld, a 3.1% increase compared to Q4 of 2013.

CAPEX

Cumulative capital expenditures in the downstream business segment for 2014 were Ps 8.4 billion, an increase of 71.2% compared to 2013.

Capital expenditures in the downstream business segment for Q4 2014 were Ps 3.2 billion, an increase of 54.2% compared to Q4 2013. This increase was primarily as a result of the progress achieved on multi-year projects and the engineering process in new units intended to increase gasoline and diesel production capacity as well as improve the quality of these products. In addition, a coke unit and a new alkylation unit at the La Plata Refinery as well as the new gasoline hydrogenation units in La Plata and Mendoza Refineries were installed, works were performed to improve YPF’s logistical facilities and projects were carried to optimize safety and environmental performance.

3.3 CORPORATE

This business segment involves mainly corporate costs and other activities that are not reported in any of the previously-mentioned business segments.

Corporate operating income for 2014 was a loss of Ps 3.3 billion, a 119.6% decrease compared to a loss of Ps 1.8 billion for 2013. Results from this segment were mainly impacted by a provision of Ps 1.2 billion for Maxus Energy Corporation, YPF Holdings’ subsidiary, relating to claims from third parties for alleged contractual obligations to be timely appealed by this subsidiary, and to a lesser extend by Increased costs due to higher corporate salaries and social charges, higher service and publicity fees relating to the launch of the company’s new Infinia premium fuel and the relaunch of our Serviclub loyalty program, all of which is partially offset by better results achieved in 2014 from our controlled company AESA.

In turn, consolidation adjustments relating to eliminating results among business segments not transferred to third parties were negative Ps 0.2 billion for 2014 and negative Ps 0.4 billion for 2013.

3.4 RELATED COMPANIES

For 2014, results from related companies (mainly due to positive results from Profertil, Mega and Refinor), were Ps 0.6 billion, an increase of Ps 0.2 billion compared to results for 2013. For Q4 2014, results from related companies were Ps 0.5 billion, an 80% increase from Ps 0.3 billion for Q4 2013.


		Consolidated Results Full Year 2014 and Q4 2014

4. LIQUIDITY AND SOURCES OF CAPITAL

During 2014, net cash flows provided by operating activities reached Ps 46.2 billion, a 120.2% increase compared 2013. The Ps 25.2 billion increase was generated by the growth of adjusted EBITDA (approximately Ps 17.5 billion) and increased working capital, including the receipt of Ps 1.7 billion in compensation for lost profits relating to the incident at the La Plata Refinery that occurred in April 2013 and a similar amount relating to expenditures for advances and payment of tax return settlements, although net income before tax was 54% higher in 2014 compared to 2013.

As to financing activities for 2014, the company had net cash flows provided by financing activities of approximately Ps 5.0 billion, arising from higher indebtedness and debt refinancing, mainly by issuing negotiable obligations in the local and international markets. In April 2014, we issued U.S.$1.0 billion of 10-year notes in the international markets, the largest ever offering by an Argentine company. Additionally, we used Ps 0.2 billion to repurchase our own shares during 2014.

Such cash generation resulted in cash and equivalents of Ps 9.8 billion as of December 31, 2014, a decrease of Ps 1.0 billion. Also, compared to December 31, 2013, financial net debt reported an increase of Ps 18.4 billion (an increase of 86.7%) to reach Ps 39.5 billion by December 31, 2014, while gross debt of the company reported a Ps 17.4 billion increase (an increase of 54.6%).

The average cost of debt denominated in Argentine pesos by the end of Q4 2014 was 23.05%, while the average cost of debt denominated in U.S. dollars was 6.84%. Also, the ratio of net debt to adjusted EBITDA as of December 31, 2014 was 0.95x slightly above the 0.9x as of December 31, 2013.

During the first half of February 2015, our cash position was strengthened by the reopening of Series XXVI and Series XXVIII notes with an issuance of additional negotiable obligations in the international capital markets for a total additional amount of U.S.$0.5 billion and the new issuance in the local market of negotiable obligations Series XXXVI and XXXVII for Ps 1.2 billion.

YPF Notes issued after December 31, 2014 are detailed below:


YPF Note	Amount	Interest Rate	Maturity
Series XXVI	USD175 million	8.875%	60 months
Series XXVIII	USD 325 million	8.75%	120 months
Series XXXVII	ARS 950 million	BADLAR + 4.74%	60 months
Series XXXVII	ARS 250 million	BADLAR + 3.49%	24 months


		Consolidated Results Full Year 2014 and Q4 2014

5. TABLES AND NOTES

Q4 2014 Results


		Consolidated Results Full Year 2014 and Q4 2014

5.1 CONSOLIDATED STATEMENT OF INCOME

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


Q4		Q3			Q4			Var.%				Jan - Dec			Jan - Dec			Var.%
2013		2014			2014			Q4 14/Q4 13				2013			2014			2014 / 2013
	25,294		38,209			37,739			49.2	%	Revenues		90,113			141,942			57.5	%
	(19,708)		(26,365	)		(29,684	)		50.6	%	Costs of sales		(68,094	)		(104,492	)		53.5	%

	5,586		11,844			8,055			44.2	%	Gross profit		22,019			37,450			70.1	%

	(2,016)		(2,766	)		(2,827	)		40.2	%	Selling expenses		(7,571	)		(10,114	)		33.6	%
	(797)		(1,119	)		(1,414	)		77.4	%	Administration expenses		(2,686	)		(4,530	)		68.7	%
	(304)		(306	)		(804	)		164.5	%	Exploration expenses		(829	)		(2,034	)		145.4	%
	1,351		391			(1,646	)		(221.8	%)	Other expenses		227			(1,030	)		(553.7	%)

	3,820		8,044			1,364			(64.3	%)	Operating income		11,160			19,742			76.9	%

	276		38			497			(80.1	%)	Income on investments in companies		353			558			58.1	%
											Financial income (expenses), net
	(462)		(140	)		(2	)		(99.6	%)	Gains (losses) on assets		(1,251	)		(1,164	)		(7.0	%)
	351		480			248			(29.3	%)	Interests		924			1,326			43.5	%
	(813)		(620	)		(250	)		(69.2	%)	Exchange differences		(2,175	)		(2,490	)		14.5	%
	2,331		87			(1,674	)		(171.8	%)	(Losses) gains on liabilities		4,086			2,936			(28.1	%)
	(1,473)		(1,793	)		(2,032	)		37.9	%	Interests		(3,833	)		(7,336	)		91.4	%
	3,804		1,880			358			(90.6	%)	Exchange differences		7,919			10,272			29.7	%

	5,965		8,029			185			(96.9	%)	Net income before income tax		14,348			22,072			53.8	%

	197		(2,931	)		(1,362	)		(791.4	%)	Income tax		(2,844	)		(7,323	)		157.5	%
	(4,284)		(1,879	)		2,477			(157.8	%)	Deferred income tax		(6,425	)		(5,900	)		(8.2	%)

	(40)		7			(83	)				Net income (loss) for noncontrolling interest		(46	)		(153	)

	1,918		3,212			1,383			(27.9	%)	*Net income for the period ()**		5,125			9,002			75.6	%

	4.89		8.19			3.52			(28.0	%)	*Earnings per share, basic and diluted ()**		13.05			22.95			75.8	%

	5,661		2,515			1,117			(80.3	%)	Other comprehensive Income		12,031			16,276			35.3	%

	7,539		5,734			2,417			(67.9	%)	Total comprehensive income for the period		17,110			25,125			46.8	%

	7,511		13,603			8,437			12.3	%	Adj. EBITDA ()**		23,107			41,412			79.2	%

Note: Information reported in accordance with International Financial Reporting Standards (IFRS), except adjusted EBITDA.

(*)	Attributable to controlling shareholder.

(**)

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets + Unproductive exploratory drillings.


		Consolidated Results Full Year 2014 and Q4 2014

5.2 CONSOLIDATED BALANCE SHEET

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Q4 figures unaudited, figures expressed in millions of pesos)


	12/31/2013		12/31/2014
Noncurrent Assets
Intangible assets		2,446		4,393
Fixed assets		93,496		156,930
Investments in companies		2,124		3,177
Deferred income tax assets		34		244
Other receivables and advances		2,927		1,691
Trade receivables		54		19

Total Non-current assets		101,081		166,454

Current Assets
Inventories		9,881		13,001
Other receivables and advances		6,506		7,170
Trade receivables		7,414		12,171
Assets available for sale		—		—
Cash and equivalents		10,713		9,758

Total current assets		34,514		42,100

Total assets		135,595		208,554

Shareholders’ equity
Shareholders’ contributions		10,600		10,400
Reserves and unappropriated retained earnings		37,416		62,230
Noncontrolling interest		224		151

Total Shareholders’ equity		48,240		72,781

Noncurrent Liabilities
Provisions		19,172		26,564
Deferred income tax liabilities		11,459		18,948
Other taxes payable		362		299
Salaries and social security		8		—
Loans		23,076		36,030
Accounts payable		470		566

Total Noncurrent Liabilities		54,547		82,407

Current Liabilities
Provisions		1,396		2,399
Income tax liability		122		3,972
Other taxes payable		1,045		1,411
Salaries and social security		1,119		1,903
Loans		8,814		13,275
Accounts payable		20,312		30,406

Total Current Liabilities		32,808		53,366

Total Liabilities		87,355		135,773

Total Liabilities and Shareholders’ Equity		135,595		208,554

Note: Information reported in accordance with International Financial Reporting Standards (IFRS).


		Consolidated Results Full Year 2014 and Q4 2014

5.3 CONSOLIDATED STATEMENT OF CASH FLOW

YPF SOCIEDAD ANONIMA AND CONTROLLED COMPANIES

(Unaudited, figures expressed in millions of pesos)


Q4			Q3			Q4				Jan - Dec			Jan - Dec
2013			2014			2014				2013			2014
									Cash Flows from operating activities
	1,878			3,219			1,300		Net income		5,079			8,849
	(276	)		(38	)		(497	)	Income from investments in companies		(353	)		(558	)
	3,447			5,343			6,276		Depreciation of fixed assets		11,236			19,936
	55			77			219		Amortization of intangible assets		197			469
	678			868			1,370		Consumption of materials and fixed assets and intangible assets retired, net of provisions		2,336			4,041
	991			922			3,096		Net increase in provisions		3,272			5,561
	(2,300	)		1,112			(3,929	)	Interest, exchange differences and other		(3,551	)		(2,116	)
	81			28			24		Stock compensation plan		81			80
	(1,956	)		(505	)		(409	)	Accrued insurance		(1,956	)		(2,041	)
									Changes in assets and liabilities:
	1,405			(707	)		326		Trade receivables		(2,627	)		(3,824	)
	(1,128	)		(64	)		1,050		Other receivables and liabilities		(1,332	)		248
	(446	)		(384	)		2,181		Inventories		(732	)		(244	)
	(1,382	)		1,323			3,404		Accounts payable		3,243			5,067
	154			2,082			(2,788	)	Other Taxes payable		272			218
	176			419			296		Salaries and Social Securities		253			727
	(197	)		(426	)		(394	)	Decrease in provisions from payments		(713	)		(1,974	)
	144			18			66		Dividends from investments in companies		280			299
	—			1,098			—		Insurance charge for loss of profit		—			1,689
	3,261			4,009			(2,029	)	Net charge of income tax payment		5,979			9,727
	4,087			4,810			(1,115	)	Income tax		9,269			13,223
	(826	)		(801	)		(914	)	Income tax payments		(3,290	)		(3,496	)

	4,585			18,394			9,562		Net cash flows provided by operating activities		20,964			46,154

									Cash flows from investing activities
									Payments for investments:
	(9,436	)		(13,213	)		(14,848	)	Acquisitions of fixed assets and Intangible assets		(27,639	)		(50,213	)
	(9	)		(9	)		(12	)	Capital contributions in non-current investments		(20	)		(106	)
	—			—			(1,711	)	Liabilities of sales of fixed assets		—			—
	—			(357	)		8		Acquisitions of participation in UTEs		—			(861	)
	—			—			—		Acquisition of subsidiaries net of acquired funds		107			(6,103	)
	5,351			—			2,060		Revenues from sales of fixed assets and intangible assets		5,351			2,060
	—			—			—		Insurance charge for material damages		—			1,818

	(4,094	)		(13,579	)		(14,503	)	Net cash flows used in investing activities		(22,201	)		(53,405	)

									Cash flows from financing activities
	(1,912	)		(3,030	)		(4,308	)	Payment of loans		(6,804	)		(13,320	)
	(956	)		(1,114	)		(1,646	)	Payment of interests		(2,696	)		(5,059	)
	5,983			4,141			4,607		Proceeds from loans		16,829			23,949
	—			(464	)		—		Payments of dividends		(326	)		(464	)
	(27	)		(145	)		(2	)	Acquisition of own shares		(120	)		(200	)
	96			—			80		Non controlling interest contribution		96			80

	3,184			(612	)		(1,269	)	Net cash flows provided by financing activities		6,979			4,986

	135			222			95		Effect of changes in exchange rates on cash and equivalents		224			1,310

	3,810			4,425			(6,115	)	Increase (Decrease) in Cash and Equivalents		5,966			(955	)

	6,903			11,448			15,873		Cash and equivalents at the beginning of the period		4,747			10,713
	10,713			15,873			9,758		Cash and equivalents at the end of the period		10,713			9,758

	3,810			4,425			(6,115	)	Increase (Decrease) in Cash and Equivalents		5,966			(955	)

									COMPONENTS OF CASH AND EQUIVALENT AT THE END OF THE PERIOD
	4,533			6,567			6,731		Cash		4,533			6,731
	6,180			9,306			3,027		Other Financial Assets		6,180			3,027

	10,713			15,873			9,758		TOTAL CASH AND EQUIVALENTS AT THE END OF THE PERIOD		10,713			9,758

Note: Information reported in accordance with International Financial Reporting Standards (IFRS).


		Consolidated Results Full Year 2014 and Q4 2014

5.4 CONSOLIDATED BUSINESS SEGMENT INFORMATION

(Unaudited, figures expressed in millions of pesos)


Q4 2014	Upstream		Downstream		Corporate and Other		Consolidation Adjustments		Total
Revenues		2,496		34,938		305		—		37,739
Revenues from intersegment sales		17,240		409		1,500		-19,149		—

Revenues		19,736		35,347		1,805		-19,149		37,739

Operating Income (loss)		1,572		1,740		-2,153		205		1,364
Investments in companies		-3		500		—		—		497
Depreciation of fixed assets		5,516		675		85		—		6,276
Acquisitions of fixed assets		13,870		3,248		583		—		17,701
Assets		126,228		68,509		16,356		-2,539		208,554

Q4 2013	Upstream		Downstream		Corporate and Other		Consolidation Adjustments		Total
Revenues		1,036		24,207		51		—		25,294
Revenues from intersegment sales		11,637		416		784		-12,837		—

Revenues		12,673		24,623		835		-12,837		25,294

Operating Income (loss)		1,729		2,767		-441		-235		3,820
Investments in companies		-81		357		—		—		276
Depreciation of fixed assets		2,902		485		60		—		3,447
Acquisitions of fixed assets		12,915		2,106		240		—		15,261
Assets		70,775		51,336		15,161		-1,677		135,595


		Consolidated Results Full Year 2014 and Q4 2014

5.5 MAIN DOLLAR DENOMINATED FINANCIAL MAGNITUDES (unaudited figures)


Million USD	2013 Q4		2014 Q3		2014 Q4		Var Q4 14 /Q4 13			2013 *Jan - Dec ()**		2014 Jan - Dec		Var 2014 / 2013
INCOME STATMENT
Revenues		4,188		4,632		4,459		6.5	%		16,514		17,576		6.4	%
Costs of sales		-3,342		-3,196		-3,507		5.0	%		-12,566		-12,939		3.0	%

Gross profit		846		1,436		952		*12.5*	%		3,948		4,637		*17.5*	%
Selling expenses		-334		-335		-334		0.1	%		-1,387		-1,252		-9.7	%
Administration expenses		-132		-136		-167		26.6	%		-492		-561		14.0	%
Exploration expenses		-50		-37		-95		88.7	%		-152		-252		65.8	%
Other expenses		303		47		-194		-164.3	%		286		-128		-144.6	%

Operating income		632		975		161		*-74.5*	%		2,202		2,445		*11.0*	%
Depreciation of fixed assets		571		648		742		29.9	%		2,059		2,469		19.9	%
Amortization of intangible assets		9		9		26		184.2	%		36		58		60.9	%
Unproductive exploratory drillings		31		17		68		118.3	%		94		157		66.3	%

Adj. EBITDA ()**		1,244		1,649		997		*-19.8*	%		4,391		5,128		*16.8*	%

UPSTREAM
Revenues		2,098		2,347		2,332		11.1	%		7,824		8,754		11.9	%
Operating income		286		541		186		-35.1	%		1,316		1,530		16.3	%
Depreciation		480		560		652		35.7	%		1,758		2,127		21.0	%
Capital expenditures		327		1,349		1,670		411.0	%		4,178		6,077		45.5	%

DOWNSTREAM
Revenues		4,077		4,334		4,176		2.4	%		15,901		16,561		4.1	%
Operating income		458		468		206		-55.1	%		1,232		1,359		10.4	%
Depreciation		80		77		80		-0.7	%		266		303		13.8	%
Capital expenditures		349		280		384		10.1	%		899		1,039		15.6	%

CORPORATE AND OTHER
Operating income		-73		-57		-254		248.4	%		-279		-414		48.4	%
Capital expenditures		40		42		69		73.4	%		83		174		110.0	%

CONSOLIDATION ADJUSTMENTS
Operating income		-39		23		24		-162.3	%		-67		-30		-54.2	%

*Average exchange rate for the period*		*6.04*		*8.25*		*8.46*					*5.46*		*8.08*

NOTE: The calculation of the main financial figures in U.S. dollars is derived from the calculation of the financial results expressed in Argentine pesos using the average exchange rate for each period.

(*)	For these periods, results do not include the impact of the provision for claims related to the AES Uruguaiana Emprendimientos S.A. (AESU) and Transportadora de Gas del Mercosur S.A. (TGM) arbitrations.

(**)

Adjusted EBITDA = Net income attributable to shareholders + Net income (loss) for non-controlling interest - Deferred income tax - Income tax - Financial income (losses) gains on liabilities - Financial income gains (losses) on assets - Income on investments in companies + Depreciation of fixed assets + Amortization of intangible assets + Unproductive exploratory drillings.


		Consolidated Results Full Year 2014 and Q4 2014

5.6 MAIN PHYSICAL MAGNITUDES (Unaudited figures)


		2013										2014
	Unit	Q1		Q2		Q3		Q4		Cum. 2013		Q1		Q2		Q3		Q4		Cum. 2014
Production
Crude oil production	Kbbl		20,365		20,770		21,625		22,019		84,780		21,753		21,923		22,634		22,986		89,296
NGL production	Kbbl		4,918		4,162		3,471		5,033		17,584		4,831		3,626		3,970		5,348		17,776
Gas production	Mm3		2,824		3,001		3,272		3,262		12,359		3,355		3,970		4,138		4,021		15,483
Total production	Kboe		43,045		43,806		45,675		47,568		180,094		47,684		50,517		52,628		53,621		204,450

Henry Hub	USD/Mbtu		3.48		4.09		3.58		3.60		3.69		4.94		4.67		4.06		4.00		4.42
Brent	USD/Bbl		112.48		102.58		110.27		109.21		108.63		108.17		109.70		101.82		76.40		99.02
Sales
Sales of petroleum products
Domestic market
Gasoline	Km3		1,159		1,060		1,121		1,206		4,545		1,229		1,126		1,158		1,210		4,723
Diesel	Km3		1,946		2,057		2,048		2,047		8,098		1,920		2,043		2,160		2,044		8,166
Jet fuel and kerosene	Km3		108		111		112		118		449		124		108		116		123		471
Fuel Oil	Km3		129		100		293		239		760		294		297		257		320		1,168
LPG	Km3		168		220		265		144		796		146		210		245		159		760
LPG sold by YSUR			—		—		—		—		—		5		26		30		27		88
Others (*)	Km3		379		270		350		340		1,338		286		304		361		589		1,540
Total domestic market	Km3		3,889		3,819		4,188		4,094		15,988		4,004		4,113		4,327		4,472		16,916
Export market
Petrochemical naphtha	Km3		0		0		0		0		0		0		0		0		0		0
Jet fuel and kerosene	Km3		131		121		127		126		505		129		116		126		128		500
LPG	Km3		123		36		30		104		293		124		35		24		115		299
Bunker (Diesel and Fuel Oil)	Km3		186		98		189		191		664		194		205		128		178		704
Others (*)	Km3		10		10		9		11		39		8		18		5		7		38
Total export market	Km3		450		265		355		432		1,502		455		375		284		428		1,541
Total sales of petroleum products	Km3		4,339		4,084		4,542		4,526		17,490		4,459		4,488		4,610		4,900		18,457

Sales of petrochemical products
Domestic market
Fertilizers	Ktn		24		27		68		105		224		32		39		76		80		227
Methanol	Ktn		49		57		64		66		236		47		73		103		85		308
Others	Ktn		130		138		143		132		543		138		143		129		131		541
Total domestic market	Ktn		203		222		276		303		1,003		217		255		308		296		1,076
Export market
Methanol	Ktn		8		22		1		10		41		33		22		21		1		77
Others	Ktn		62		64		75		39		240		24		33		67		53		177
Total export market	Ktn		70		86		76		49		281		57		55		88		54		254
Total sales of petrochemical products	Ktn		273		308		352		352		1,284		274		310		396		350		1,330

Sales of other products
Grain, flours and oils
Domestic market	Ktn		39		30		24		31		124		20		22		21		3		66
Export market	Ktn		87		239		284		159		769		85		251		292		212		840
Total Grain, flours and oils	Ktn		126		269		308		190		893		105		273		313		215		906

Main products imported
Gasolines and Jet Fuel	Km3		94		198		0		0		292		179		94		0		42		316
Diesel	Km3		183		420		296		351		1,250		473		275		191		304		1,243

(*)	Principally includes sales of oil and lubricant bases, grease, asphalt and residual carbon, among others.


		Consolidated Results Full Year 2014 and Q4 2014

5.7 ADDITIONAL INFORMATION ON OIL AND GAS RESERVES

(Argentine Securities Commission General Resolution No. 541)


	Crude oil and condensate
	(Millions of barrels)
	2014
	Argentina			United States			Worldwide
Proved developed and undeveloped reserves
Beginning of the year		551			1			552
Revisions of previous estimates		73			1			74
Extensions, discoveries and improved recovery		56			—			56
Purchases and sales		8			—			8
Production for the year ⁽¹⁾		(89	)		(<1	)		(89	)

End of the year ⁽¹⁾		600			1			601


	2014
	Argentina			United States			Worldwide
Proved developed reserves
Beginning of the year		421			1			422

End of the year		446			1			447


Proved undeveloped reserves
Beginning of the year		130			—			130

End of the year		154			—			154

(1)

Proved reserves of crude oil and condensate include an estimated approximately 91 million barrels as of December 31, 2014, in respect of royalty payments which, as described above, are a financial obligation, or are substantially equivalent to a production or similar tax. Crude oil and condensate production includes an estimated approximately 14 million barrels for 2014 in respect of such types of payments


		Consolidated Results Full Year 2014 and Q4 2014


	Natural gas liquids
	(Millions of barrels)
	2014
	Argentina			United States		Worldwide
Proved developed and undeveloped reserves
Beginning of the year		76			—		76
Revisions of previous estimates		2			—		2
Extensions, discoveries and improved recovery		13			—		13
Purchases and sales		(<1	)		—		(<1	)
Production for the year⁽¹⁾		(18	)		—		(18	)

End of the year ⁽¹⁾		73			—		73


	2014
	Argentina			United States		Worldwide
Proved developed reserves
Beginning of the year		55			—		55

End of the year		53			—		53


Proved undeveloped reserves
Beginning of the year		21			—		21

End of the year		20			—		20

(1)

Proved reserves of natural gas liquids include an estimated approximately 11 million barrels as of December 31, 2014, in respect of royalty payments which, as described above, are a financial obligation, or are substantially equivalent to a production or similar tax. Natural gas liquids production includes an estimated approximately 2 million barrels for 2014 in respect of such types of payments


		Consolidated Results Full Year 2014 and Q4 2014


	Natural gas (billions of cubic feet) 2014
	Argentina			United States			Worldwide
Proved developed and undeveloped reserves
Beginning of the year		2,555			3			2,558
Revisions of previous estimates		441			3			444
Extensions, discoveries and improved recovery		422			—			422
Purchases and sales		140			—			140
Production for the year ⁽¹⁾		(546	)		(1	)		(547	)

End of the year ⁽¹⁾		3,011			5			3,016


	2014
	Argentina			United States			Worldwide
Proved developed reserves
Beginning of the year		1,935			3			1,938

End of the year		2,262			5			2,267

Proved undeveloped reserves
Beginning of the year		620			—			620

End of the year		749			—			749

(1)

Proved reserves of natural gas include an estimated approximately 324 billion cubic feet as of December 31, 2014, in respect of royalty payments which, as described above, are a financial obligation, or are substantially equivalent to a production or similar tax. Natural gas production includes an estimated approximately 60 billion cubic feet for 2014 in respect of such types of payments


		Consolidated Results Full Year 2014 and Q4 2014

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 as of the date hereof of YPF and its management, including statements with respect to trends affecting 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 the future price of petroleum and petroleum products, 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 in circumstances and other factors that 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 the future price of petroleum and petroleum products, 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 fluctuations in the price of petroleum and petroleum products, 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 before the Comisión Nacional de Valores in Argentina and with the U.S. 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, 2013 filed with the 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 for sale of YPF S.A. bonds, shares or ADRs in the United States or elsewhere.

The information contained herein has been prepared to assist interested parties in making their own evaluations of YPF.

Investors Relations

E-mail: inversoresypf@ypf.com

Website: ir.ypf.com

Macacha Güemes 515

C1106BKK Buenos Aires (Argentina)

Phone: 54 11 5441 1215

Fax: 54 11 5441 2113

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: February 27, 2015	By:	/s/ Diego Celaá
	Name: Title:	Diego Celaá Market Relations Officer